Document:

Document

Exhibit 10.2

THIRD AMENDED AND RESTATED 

SHAREHOLDERS’ AGREEMENT

between

NORTHSHORE HOLDINGS LIMITED

and

THE SHAREHOLDERS NAMED HEREIN

dated as of

January 1, 2021

TABLE OF CONTENTS

									
	Article 1 Definitions	1
	Article 2 Management and Operation of the Company	5
	Section 2.01	Board of Directors	5
	Section 2.02	Voting Arrangements	7
	Article 3 Transfer of Interests	7
	Section 3.01	General Restrictions on Transfer	7
	Section 3.02	Right of First Offer	9
	Section 3.03	Drag-along Rights	10
	Section 3.04	Tag-along Rights	11
	Article 4 Pre-Emptive Rights and Other Agreements	13
	Section 4.01	Pre-emptive Rights	13
	Section 4.02	Corporate Opportunities	15
	Section 4.03	Confidentiality	15
	Section 4.04	Registration Rights	16
	Section 4.05	Indemnification; Insurance	16
	Section 4.06	Distribution of Proceeds Upon Sale of All or Substantially All Assets	16
	Section 4.07	“Market Stand-off” Agreement	16
	Article 5 Information Rights	17
	Section 5.01	Financial Statements and Reports	17
	Section 5.02	Inspection Rights	17
	Article 6 Cessation of Employment	18
	Section 6.01	Leavers	18
	Article 7 Representations and Warranties	18
	Section 7.01	Representations and Warranties	18
	Article 8 Term and Termination	19
	Section 8.01	Termination	19
	Section 8.02	Effect of Termination	19
	Article 9 Miscellaneous	19
	Section 9.01	Expenses	19
	Section 9.02	Release of Liability	19
	Section 9.03	Notices	19
	Section 9.04	Interpretation	20
	Section 9.05	Headings	20
	Section 9.06	Severability	20
	Section 9.07	Entire Agreement	20
	Section 9.08	Successors and Assigns	20
	Section 9.09	No Third-Party Beneficiaries	20
	Section 9.10	Amendment and Modification; Waiver	21
	Section 9.11	Governing Law	21
	Section 9.12	Submission to Jurisdiction; Waiver of Jury Trial	21
	Section 9.13	Equitable Remedies	21
	Section 9.14	Counterparts	21

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THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT
This Third Amended and Restated Shareholders’ Agreement (this “Agreement”), dated as of January 1, 2021 (“Effective Date”), is entered into among Northshore Holdings Limited, a Bermuda exempted company (the “Company”), Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. (collectively, the “Trident Shareholders” and each, a “Trident Shareholder”), Kenmare Holdings Ltd. (the “Enstar Shareholder” and together with the Trident Shareholders, the “Initial Shareholders”), Dowling Capital Partners I, L.P. and Capital City Partners LLC (collectively, the “Dowling Shareholders” and each, a “Dowling Shareholder”), Atrium Nominees Limited (the “Atrium Nominee”), and each other Person who after the date hereof acquires Common Shares of the Company and becomes a party to this Agreement by executing a Joinder Agreement (such Persons, collectively with the Initial Shareholders, the Dowling Shareholders and the Atrium Nominee, the “Shareholders”).
RECITALS
WHEREAS,  pursuant to the transactions contemplated by the Recapitalization Agreement, dated as of August 13, 2020 (the “Recapitalization Agreement”), by and among the Trident Shareholders, the Enstar Shareholder, the Dowling Shareholders and North Bay Holdings Limited, a Bermuda exempted company (“North Bay”), among other things, North Bay dissolved and distributed all of the shares of the Company held by North Bay to its shareholders, such that immediately following such distribution, each of the Trident Shareholders, the Enstar Shareholder and the Dowling Shareholders became direct shareholders of the Company owning the number of Common Shares set forth opposite such Person’s name on Schedule I attached hereto;
WHEREAS, the Shareholders deem it in their best interests and in the best interests of the Company to amend and restate that certain Second Amended and Restated Shareholders’ Agreement of the Company, dated as of December 23, 2015, in its entirety and to set forth in this Agreement their respective rights and obligations in connection with their shareholdings in the Company.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Article 1 
Definitions
Capitalized terms used herein and not otherwise defined shall have the meanings set forth in this Article 1:
“Affiliate” means with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control,” when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and “controlled” shall have correlative meanings.
“Agreement” has the meaning set forth in the preamble.
“Applicable Law” means all applicable provisions of (a) constitutions, treaties, statutes, laws (including the common law), rules, regulations, decrees, ordinances, codes, proclamations, declarations or orders of any Governmental Authority, (b) any consents or approvals of any Governmental Authority and (c) any orders, decisions, advisory or interpretative opinions, injunctions, judgments, awards, decrees of, or agreements with, any Governmental Authority.
“Arden Re” means Arden Reinsurance Company Ltd.
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“Atrium” means Atrium Underwriting Group Limited (a company incorporated in England and Wales under registered number 02860390 and whose registered office is at Room 790, Lime Street, London EC3M 7DQ).
“Atrium Group” means Atrium and any Subsidiary of Atrium from time to time and references to “member of the Atrium Group” shall be construed accordingly.
“Atrium Nominee” has the meaning set forth in the preamble.
“Atrium Nominee Tag Notice” has the meaning set forth in Section 3.04(c). 
“Beneficial Owner” means any current or former employee or officer of a member of the Atrium Group (or their successor) who acquires any beneficial interest in Common Shares (or other shares of the Company which are issued pursuant to a scheme approved by the Board for the return of income or capital to shareholders) or who may become entitled to acquire a beneficial interest in Common Shares (or other shares of the Company which are issued pursuant to a scheme approved by the Board for the return of income or capital to shareholders) as a result of the operation of a Plan.
“Board” has the meaning set forth in Section 2.0l(a).
“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in Bermuda are authorized or required to close.
“Bye-laws” means the bye-laws of the Company, as amended, modified, supplemented or restated from time to time in accordance with the terms of this Agreement.
“Change of Control” means any transaction or series of related transactions (as a result of a tender offer, merger, consolidation or otherwise) that results in, or that is in connection with, (a) any Third Party Purchaser or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) of Third Party Purchasers acquiring beneficial ownership, directly or indirectly, of all or substantially all of the then issued and outstanding Common Shares or all of the Common Shares then held by the Trident Shareholders (so long as such Common Shares represent at least a majority of the Common Shares then issued and outstanding) or (b) the sale, lease, exchange, conveyance, transfer or other disposition (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Company and its Subsidiaries, on a consolidated basis, to any Third Party Purchaser or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) of Third Party Purchasers (including any liquidation, dissolution or winding up of the affairs of the Company, or any other distribution made, in connection therewith).
“Committee” means the Atrium Remuneration and Nomination Committee from time to time.
“Common Shares” means the common shares, par value $1.00 per share, of the Company and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or similar reorganization.
“Company” has the meaning set forth in the preamble.
“Director” has the meaning set forth in Section 2.0l(a).
“Dowling Shareholders” has the meaning set forth in the preamble and shall also include any Permitted Transferees of the Dowling Shareholders that become Shareholders pursuant to the terms of this Agreement. 
“Drag-along Notice” has the meaning set forth in Section 3.03(b). 
“Drag-along Sale” has the meaning set forth in Section 3.03(a).
“Drag-along Shareholder” has the meaning set forth in Section 3.03(a). 
“Effective Date” has the meaning set forth in the preamble.
“Enstar Director” has the meaning set forth in Section 2.01(a)(i).
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“Enstar Shareholder” has the meaning set forth in the preamble and shall also include any Permitted Transferees of the Enstar Shareholder that become Shareholders pursuant to the terms of this Agreement.
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall be in effect at the time.
“Excluded Securities” means any Common Shares or other equity securities issued in connection with (a) a grant to any existing or prospective consultants, employees, officers or directors pursuant to any stock option, employee stock purchase or similar equity-based plans or other compensation agreement, including, but not limited to, the Plans; (b) the exercise or conversion of options to purchase Common Shares, or Common Shares issued to any existing or prospective consultants, employees, officers or directors pursuant to any stock option, employee stock purchase or similar equity-based plans or any other compensation agreement, including, but not limited to, the Plans; (c) a scheme approved by the Board for the return of income or capital to Shareholders; (d) any acquisition by the Company of the stock, assets, properties or business of any Person; (e) any merger, consolidation or other business combination involving the Company; (f) the commencement of any Initial Public Offering or any transaction or series of related transactions involving a Change of Control; or (g) a stock split, stock dividend or any similar recapitalization.
“Exercise Period” has the meaning set forth in Section 4.0l(c).
“Exercising Shareholder” has the meaning set forth in Section 4.0l(d).
“Government Approval” means any authorization, consent, approval, waiver, exception, variance, order, exemption, publication, filing, declaration, concession, grant, franchise, agreement, permission, permit, or license of, from or with any Governmental Authority, the giving notice to, or registration with, any Governmental Authority or any other action in respect of any Governmental Authority.
“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.
“Information” has the meaning set forth in Section 4.03(a).
“Initial Public Offering” means any offering of Common Shares, or shares or other equity interests of any Material Subsidiary, pursuant to a registration statement filed in accordance with the Securities Act.
“Initial Shareholders” has the meaning set forth in the preamble and shall also include any Permitted Transferees of the Enstar Shareholder and the Trident Shareholders that become Shareholders, but shall not include any Dowling Shareholder or the Atrium Nominee.
“Issuance Notice” has the meaning set forth in Section 4.0l(b).
“Joinder Agreement” means the joinder agreement in form and substance of Exhibit A attached hereto.
“Leaver” has the meaning set forth in Section 6.01.
“Leaver Sale” has the meaning set forth in Section 6.01.
“Leaver Sale Provisions” means the mechanism for the sale of any Common Shares (or other shares of the Company which are issued pursuant to a scheme approved by the Board for the return of income or capital to shareholders) held by the Atrium Nominee (as Nominee) on behalf of a relevant Beneficial Owner who becomes a Leaver as set out in the Nominee Agreement applicable to such Beneficial Owner.
“Lien” means any lien, claim, charge, mortgage, pledge, security interest, option, preferential arrangement, right of first offer, encumbrance or other restriction or limitation of any nature whatsoever.
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“Material Subsidiary” means Arden Re, Atrium and any other material direct or indirect Subsidiary of the Company.
“Memorandum of Association” means the memorandum of association of the Company, as filed on August 14, 2009 with the Registrar of Companies of Bermuda and as amended, modified, supplemented or restated from time to time in accordance with the terms of this Agreement.
“New Securities” has the meaning set forth in Section 4.0l(a).
“Nominee” means the Atrium Nominee acting in its capacity as nominee on behalf of a Beneficial Owner (or such other nominee jointly selected by the Committee and the Board).
“Nominee Agreements” means the individual nominee agreements between the Atrium Nominee (as Nominee), the Company, Atrium and each Beneficial Owner in relation to the Plans and any Common Shares (or other shares of the Company which are issued pursuant to a scheme approved by the Board for the return of income or capital to shareholders) held by the Atrium Nominee (as Nominee) on behalf of such Beneficial Owner and “Nominee Agreement” means any one of them with respect to an applicable Beneficial Owner.
“Non-Exercising Shareholder” has the meaning set forth in Section 4.0l(d).
“North Bay” has the meaning set forth in the recitals.
“Offered Shares” has the meaning set forth in Section 3.02(a). 
“Offering Shareholder” has the meaning set forth in Section 3.02(a).
“Offering Shareholder Notice” has the meaning set forth in Section 3.02(b).
“Organizational Documents” means the Bye-laws and the Memorandum of Association.
“Over-allotment Exercise Period” has the meaning set forth in Section 4.01(d).  
“Over-allotment New Securities” has the meaning set forth in Section 4.01(d).  
“Over-allotment Notice” has the meaning set forth in Section 4.01(d).  
“Permitted Transferee” means (i) with respect to any Shareholder (other than the Atrium Nominee), any Affiliate of such Shareholder, and (ii) with respect to the Atrium Nominee (in its capacity as Nominee), any replacement or successor nominee of the Beneficial Owners from time to time approved in writing by the Board and the Committee.
“Person” means an individual, corporation, company, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.
“Plans” means the Rollover Long Term Incentive Plan, the Annual Long Term Incentive Plan and the Rollover Matching Share Plan adopted by the Committee and the Company with effect from April 17, 2014 and the Annual Matching Share Plan adopted by the Committee and the Company with effect from May 1, 2015.
“Pre-emptive Pro Rata Portion” has the meaning set forth in Section 4.01(c).  
“Pre-emptive Securities” has the meaning set forth in Section 4.01(a).  
“Proposed Transferee” has the meaning set forth in Section 3.04(a).
“Recapitalization Agreement” has the meaning set forth in the recitals. 
“Related Party Agreement” means any agreement, arrangement or understanding (a) between (i) the Company and (ii) any Shareholder or any Affiliate of a Shareholder or any director, officer or employee of the Company, as such agreement may be amended, modified, supplemented or restated in accordance with the terms of this Agreement, and (b) between (i) Arden Re, Atrium or any other direct or indirect Subsidiary of the Company and (ii) the Company, any Shareholder or any Affiliate of Arden Re, Atrium, the Company, or a Shareholder or any director, officer or employee of Arden Re, Atrium or any direct or 
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indirect Subsidiary of the Company, as such agreement may be amended, modified, supplemented or restated in accordance with the terms of this Agreement.
“Representative” means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person and its Affiliates.
“ROFO Notice” has the meaning set forth in Section 3.02(d).
“ROFO Notice Period” has the meaning set forth in Section 3.02(b).
“Sale Notice” has the meaning set forth in Section 3.04(b).
“Securities Act” means the United States Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall be in effect at the time.
“Selling Shareholder” has the meaning set forth in Section 3.04(a).
“Shareholders” has the meaning set forth in the preamble.
“Subsidiary” means with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.
“Tag-along Notice” has the meaning set forth in Section 3.04(c).
“Tag-along Period” has the meaning set forth in Section 3.04(c).
“Tag-along Sale” has the meaning set forth in Section 3.04(a).
“Tag-along Shareholder” has the meaning set forth in Section 3.04(a).
“Third Party Purchaser” means any Person who, immediately prior to the contemplated transaction, (a) does not directly or indirectly own or have the right to acquire any outstanding Common Shares or (b) is not a Permitted Transferee of any Person who directly or indirectly owns or has the right to acquire any Common Shares.
“Transfer” means to, directly or indirectly, sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any Common Shares owned by a Person or any interest (including a beneficial interest) in any Common Shares owned by a Person.
“Trident Designee” has the meaning set forth in Section 2.01(a)(ii).  
“Trident Director” has the meaning set forth in Section 2.01(a)(ii).  
“Trident Shareholders” has the meaning set forth in the preamble and shall also include any Permitted Transferees of the Trident Shareholders that become Shareholders pursuant to the terms of this Agreement.
“Waived ROFO Transfer Period” has the meaning set forth in Section 3.02(f).
Article 2 Management and Operation of the Company
Section 2.01 Board of Directors.
(a)       The Shareholders agree that the business and affairs of the Company shall be managed through a board of directors (the “Board”) consisting of such number of members (each, a “Director”) as is determined by the Trident Shareholders in their sole discretion, which Board shall initially consist of five members.  The Directors shall be elected to the Board in accordance with the following procedures: 
(i)         For so long as the Enstar Shareholder owns 50% or more of the Common Shares held by it as of the Effective Date, the Enstar Shareholder shall have the right to designate one Director, who shall initially be Paul O’Shea (the “Enstar Director”); and
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(ii)        The Trident Shareholders shall have the right to designate four Directors (collectively, the “Trident Directors”), consisting of (i) three directors as the Trident Shareholders shall determine (collectively, the “Trident Designees”), who shall initially be Darran Baird and Adam Hamberg, with one seat remaining vacant as of date hereof, and (ii) one Director who shall be the chief executive officer of Atrium or such other representative of Atrium’s senior management as the Trident Shareholders shall determine.
Notwithstanding the foregoing, on any matter to be considered by the Board or any committee thereof, (i) the Trident Designees present at the meeting of the Board or committee thereof shall collectively exercise such number of votes equal to the number of Trident Designees the Trident Shareholders are entitled to designate, (ii) the Enstar Director present at any meeting of the Board or committee thereof shall exercise one vote, and (iii) any other Director present at any meeting of the Board or committee thereof shall exercise one vote.  The Enstar Shareholder and the Trident Shareholders shall cooperate with each other and use their commercially reasonable efforts to ensure that the composition of the Board complies with all Applicable Laws.  In the event the Enstar Shareholder ceases to have the right to designate a Director pursuant to this Section 2.01(a), the Director so designated by the Enstar Shareholder shall be removed from the Board and the Trident Shareholders shall have the right to designate such Director, with such designated Director being deemed a “Trident Director” hereunder.  
(b)       Each Shareholder shall vote all Common Shares over which such Shareholder has voting control and shall take all other necessary or desirable actions within such Shareholder’s control (including in its capacity as shareholder, director, member of a board committee or officer of the Company or otherwise, and whether at a regular or special meeting of the Shareholders or by written consent in lieu of a meeting) to elect to the Board any individual designated by an Initial  Shareholder pursuant to Section 2.0l(a).
(c)        Each Initial Shareholder shall have the right at any time to remove (with or without cause) any Director designated by such Initial Shareholder for election to the Board and each other Shareholder shall vote all Common Shares over which such Shareholder has voting control and shall take all other necessary or desirable actions within such Shareholder’s control (including in its capacity as shareholder, director, member of a board committee or officer of the Company or otherwise, and whether at a regular or special meeting of the Shareholders or by written consent in lieu of a meeting) to remove from the Board any individual designated by such Initial Shareholder that such Initial Shareholder desires to remove pursuant to this Section 2.01(c). Except as provided in the preceding sentence, unless an Initial Shareholder shall otherwise consent in writing, no other Shareholder shall take any action to cause the removal of any Director(s) designated by an Initial Shareholder for as long as such Initial Shareholder has the ability to designate such Director. 
(d)       In the event a vacancy is created on the Board at any time and for any reason (whether as a result of death, disability, retirement, resignation or removal pursuant to Section 2.01(c)), the Initial Shareholder who designated such individual shall have the right to designate a different individual to replace such Director and each other Shareholder shall vote all Common Shares over which such Shareholder has voting control and shall take all other necessary or desirable actions within such Shareholder’s control (including in its capacity as shareholder, director, member of a board committee or officer of the Company or otherwise, and whether at a regular or special meeting of the Shareholders or by written consent in lieu of a meeting) to elect to the Board any individual designated by such Initial Shareholder. 
(e)       The Board shall have the right to establish any committee of Directors as the Board shall deem appropriate from time to time. Subject to this Agreement, the Organizational Documents and Applicable Law, committees of the Board shall have the rights, powers and privileges granted to such committee by the Board from time to time. Any delegation of authority to a committee of Directors to take any action must be approved in the same manner as would be required for the Board to approve such action directly. Any committee of Directors shall include the Enstar Director at the Enstar Shareholder’s election for so long as the Enstar Shareholder has the right to designate a Director pursuant to Section 2.01(a).    
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(f)        The presence of a majority of Directors then in office shall constitute a quorum.  If a quorum is not achieved at any duly called meeting, such meeting may be postponed to a time no earlier than 48 hours after written notice of such postponement has been given to the Directors.
(g)       Subject to Applicable Law and the provisions of this Section 2.01(g), to the extent any Material Subsidiary of the Company has a board of directors (or similar governing body), the composition of such board (or similar governing body) shall, where the appropriate Persons are willing to serve, be consistent with the composition of the Board; provided, that no member of the Board shall be required to serve as a director of any such Material Subsidiary.  In the event that, in accordance with Applicable Law, the composition of the board of directors (or similar governing body) of any Material Subsidiary cannot be consistent with the composition of the Board, the composition of the board of directors of such Material Subsidiary shall be determined by the Board. Notwithstanding anything to the contrary stated herein, the Trident Shareholders do not hold the right to appoint in excess of one (1) director to the board of directors (or similar governing body) of each of (i) Atrium Underwriters Limited, (ii) Atrium 5 Limited, (iii) Atrium Insurance Agency Limited and (iv) Arden Re.
Section 2.02 Voting Arrangements.  In addition to any vote or consent of the Board or the Shareholders of the Company required by Applicable Law, the Company shall not without the consent of the Enstar Shareholder take any action or enter into any commitment to take any action to (and shall cause its Material Subsidiaries to not take any action or enter into any commitment to take any action to): 
(a)       amend, modify or waive the Organizational Documents or the charter, bye-laws or other organizational documents of any Material Subsidiary in a way that materially and adversely affects the rights of the Enstar Shareholder disproportionately as compared to the Trident Shareholders; 
(b)       make any material changes in the tax or accounting methods or policies or the tax elections of the Company or any Material Subsidiary (other than as required by Applicable Law or GAAP) that would have a materially adverse impact on the Enstar Shareholder; or
(c)         enter into, amend in any material respect, waive or terminate any Related Party Agreement other than (i) the entry into a Related Party Agreement that is on an arm’s length basis and on terms no less favorable to the Company or the applicable Material Subsidiary than those that could be obtained from an unaffiliated third party, and (ii) any of the transactions, arrangements or agreements set forth in this Agreement.
Article 3 
Transfer of Interests
Section 3.01 General Restrictions on Transfer.
(a)       Except as permitted pursuant to Section 3.01(c), each Shareholder (other than the Atrium Nominee) agrees that such Shareholder will not, directly or indirectly, voluntarily or involuntarily Transfer any of its Common Shares.
(b)       Except as otherwise permitted or required pursuant to the terms of this Agreement or the Leaver Sale Provisions, the Atrium Nominee agrees that it will not, directly or indirectly, voluntary or involuntarily Transfer any Common Shares prior to a Change of Control occurring after the date hereof or an Initial Public Offering (including, any Common Shares held by the Atrium Nominee on behalf of a Beneficial Owner).
(c)        The provisions of Section 3.0l(a) and Section 3.01(b) shall not apply to any of the following Transfers by any Shareholder of any of its Common Shares: (i) to a Permitted Transferee, (ii) pursuant to a merger, consolidation or other business combination of the Company with a Third Party Purchaser that has been approved by the Board, (iii) a Transfer of Common Shares which is made in accordance with and subject to Section 3.02 (Right of First Offer), Section 3.03 (Drag-along Right) and/or Section 3.04 (Tag-along Right), as applicable, provided that, unless otherwise approved by the Board, no such Transfer shall be permissible prior to the eighteen (18) month anniversary of the Effective Date, (iv) pursuant to a scheme approved by the Board for the return of income or capital to Shareholders or (v) 
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which is otherwise approved in writing by the Board.  The provisions of Section 3.02 (Right of First Offer), Section 3.03 (Drag-along Right) and/or Section 3.04 (Tag-along Right) shall not apply to any of the Transfers contemplated by clauses (i), (ii), (iv) or (v) above.
(d)       In addition to any legends required by Applicable Law:
(i)         each certificate (if any) representing the Common Shares of the Company shall bear a legend substantially in the following form (and if the Common Shares are not certificated, the Company’s ledger shall include a notation substantially in the following form omitting the reference to a certificate):
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A SHAREHOLDERS’ AGREEMENT (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH SHAREHOLDERS’ AGREEMENT AND (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER. THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH SHAREHOLDERS’ AGREEMENT.”
(ii)        each certificate (if any) representing the Common Shares of the Company issued under or in connection with a Plan shall bear an additional legend substantially in the following form (and if such Common Shares are not certificated, the Company’s ledger shall include a notation substantially in the following form omitting the reference to a certificate):
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY THE LEGAL OWNER SUBJECT TO A NOMINEE AGREEMENT (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY). THE BENEFICIAL OWNER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS NOT THE SAME ENTITY AS THE LEGAL OWNER. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH NOMINEE AGREEMENT.”
(e)       Prior notice shall be given to the Company by the transferor of any Transfer (whether or not to a Permitted Transferee) of any Common Shares. Prior to consummation of any Transfer by any Shareholder of any of its Common Shares, such party shall cause the transferee thereof to execute and deliver to the Company a Joinder Agreement and agree to be bound by the terms and conditions of this Agreement. Upon any Transfer by any Shareholder of any of its Common Shares in accordance with the terms of this Agreement, the transferee thereof shall be substituted for, and shall assume all the rights and obligations under this Agreement of, the transferor thereof.
(f)        Notwithstanding any other provision of this Agreement, each Shareholder agrees that it will not, directly or indirectly, Transfer any of its Common Shares (i) except as permitted under the Securities Act and other applicable federal, state or foreign securities laws, and then, if requested by the Company, only upon delivery to the Company of an opinion of counsel in form and substance satisfactory to the Company to the effect that such Transfer may be effected without registration under the Securities Act or any applicable foreign securities laws, (ii) if it would cause the Company or any of its Subsidiaries to be required to register as an investment company under the United States Investment Company Act of 1940, as amended, or any comparable foreign law, or (iii) if it would cause the assets of the Company or any of its Subsidiaries to be deemed plan assets as defined under the United States Employee Retirement Income Security Act of 1974 or its accompanying regulations or any comparable foreign law or result in any “prohibited transaction” thereunder involving the Company. In any event, the Board may refuse the Transfer to any Person if (i) such Transfer would have a material adverse effect on the Company as a result of any regulatory or other restrictions imposed by any Governmental Authority or (ii) 
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any non-de minimis adverse tax consequence to the Company, any Subsidiary of the Company, or any Shareholder or any of their Affiliates would result from such Transfer.
(g)       Any Transfer or attempted Transfer of any Common Shares in violation of this Agreement shall be null and void, no such Transfer shall be recorded on the Company’s books and the purported transferee in any such Transfer shall not be treated (and the purported transferor shall continue be treated) as the owner of such Common Shares for all purposes of this Agreement.
Section 3.02 Right of First Offer.
(a)       At any time that a Shareholder other than a Trident Shareholder is permitted to Transfer Common Shares hereunder, and subject to the terms and conditions specified in this Section 3.02, the Trident Shareholders shall have a right of first offer if any such other Shareholder (an “Offering Shareholder”) proposes to Transfer any Common Shares (the “Offered Shares”) owned by it to any Third Party Purchaser. Each time the Offering Shareholder proposes to Transfer any Offered Shares (other than Transfers permitted pursuant to Sections 3.01(c)(i), (ii), (iv) or (v) and Transfers made pursuant to Section 3.03), the Offering Shareholder shall first make an offering of the Offered Shares to the Trident Shareholders in accordance with the following provisions of this Section 3.02.
(b)       The Offering Shareholder shall give written notice (the “Offering Shareholder Notice”) to the Company and the Trident Shareholders stating its bona fide intention to Transfer the Offered Shares and specifying the number of Offered Shares and the material terms and conditions, including the price, pursuant to which the Offering Shareholder proposes to Transfer the Offered Shares. The Offering Shareholder Notice shall constitute the Offering Shareholder’s offer to Transfer the Offered Shares to the Trident Shareholders, which offer shall be irrevocable for a period of 20 Business Days (the “ROFO Notice Period”).
(c)        By delivering the Offering Shareholder Notice, the Offering Shareholder represents and warrants to the Company and the Trident Shareholders that: (i) the Offering Shareholder has full right, title and interest in and to the Offered Shares; (ii) the Offering Shareholder has all the necessary power and authority and has taken all necessary action to Transfer such Offered Shares as contemplated by this Section 3.02; and (iii) the Offered Shares are free and clear of any and all Liens other than those arising as a result of or under the terms of this Agreement.
(d)       Upon receipt of the Offering Shareholder Notice, the Trident Shareholders shall have until the end of the ROFO Notice Period to elect to purchase any amount of the Offered Shares by delivering a written notice (a “ROFO Notice”) to the Offering Shareholder and the Company stating that it agrees to purchase such specified amount of Offered Shares on the terms specified in the Offering Shareholder Notice. Any ROFO Notice shall be binding upon delivery and irrevocable by the Trident Shareholders. 
(e)       If the Trident Shareholders do not deliver a ROFO Notice during the ROFO Notice Period, then the Trident Shareholders shall be deemed to have waived all of their rights to purchase the Offered Shares under this Section 3.02.  
(f)        If the Trident Shareholders do not deliver a ROFO Notice, the Offering Shareholder may, during the 180-day period immediately following the expiration of the ROFO Notice Period, which period may be extended for a reasonable time not to exceed 270 days to the extent reasonably necessary to obtain any Government Approvals (the “Waived ROFO Transfer Period”), and subject to the provisions of Section 3.04, Transfer all of the Offered Shares to a Third Party Purchaser on terms and conditions no more favorable to the Third Party Purchaser than those set forth in the Offering Shareholder Notice. If the Offering Shareholder does not consummate the Transfer of the Offered Shares within the Waived ROFO Transfer Period, the rights provided hereunder shall be deemed to be revived and the Offered Shares shall not be offered or sold to any Person unless first re-offered to the Trident Shareholders in accordance with this Section 3.02.
(g)       Each Shareholder shall take all actions as may be reasonably necessary to consummate any Transfer contemplated by this Section 3.02, including entering into agreements and delivering certificates and instruments and consents as may be deemed necessary or appropriate.  
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(h)       At the closing of any Transfer pursuant to this Section 3.02, the Offering Shareholder shall deliver to the Trident Shareholders the certificate or certificates representing the Offered Shares to be sold (if any), accompanied by stock powers and all necessary stock transfer taxes paid and stamps affixed, if necessary, against receipt of the purchase price therefor from the Trident Shareholders by certified or official bank check or by wire transfer of immediately available funds. 
(i)         Notwithstanding the foregoing provisions of this Section 3.02, the Atrium Nominee shall be permitted to Transfer Common Shares to the Company or the Company’s designee in connection with any Leaver Sale without complying with the terms of this Section 3.02.
(j)         The provisions of this Section 3.02 shall not apply to a Transfer to the Company (or as the Company may direct) pursuant to a scheme approved by the Board for the return of income or capital to Shareholders.
Section 3.03 Drag-along Rights.
(a)       If at any time the Trident Shareholders (together with their Permitted Transferees) hold no less than 55% of the aggregate number of outstanding Common Shares of the Company held by the Initial Shareholders at such time and the Trident Shareholders are proposing (A) a sale to one or more Third Party Purchasers of a majority of the outstanding Common Shares of the Company, (B) to approve any merger, amalgamation, or consolidation of the Company with or into one or more Third Party Purchasers, or (C) to approve any sale of all or substantially all of the Company’s assets to one or more Third Party Purchasers, including in each case any transaction that would constitute a Change of Control (each, a “Drag-along Sale”), the Trident Shareholders shall have the right to require that each other Shareholder (each, a “Drag-along Shareholder”) participate in such Transfer in the manner set forth in this Section 3.03; provided, however, that no Drag-along Shareholder (other than Atrium Nominee) shall be required to participate in the Drag-along Sale if the consideration for the Drag-along Sale is other than cash or registered securities listed on an established U.S. or foreign securities exchange; provided, further that, notwithstanding the preceding proviso, if such consideration is not cash or registered securities listed on an established U.S. or foreign securities exchange, the Trident Shareholders shall be entitled to effect a Drag-Along Sale as long as the Dowling Shareholders and the Enstar Shareholder are given the option, in lieu of the same form and amount of consideration per Common Share to be received by the Trident Shareholders in such Drag-Along Sale, to elect to receive the same amount of consideration per Common Share as the Trident Shareholders but solely in the form of cash consideration equal to the fair market value of the consideration that would otherwise have been received absent such election, as mutually agreed by the Trident Shareholders and any Drag-along Shareholder making such election or, if no such agreement is reached, as determined by a mutually acceptable independent appraiser that shall determine the fair market value following its review of such information, analyses and calculations as the Trident Shareholders and any such Drag-along Shareholder deems relevant, without any discount for illiquidity or minority interest.  Notwithstanding anything to the contrary in this Agreement, each Drag-along Shareholder shall vote in favor of the transaction and take all actions to waive any dissenters, appraisal or other similar rights.
(b)       The Trident Shareholders shall exercise their rights pursuant to this Section 3.03 by delivering a written notice (the “Drag-along Notice”) to the Company and each Dragalong Shareholder no later than 20 days prior to the closing date of such Drag-along Sale. The Drag-along Notice shall make reference to the Trident Shareholders’ rights and obligations hereunder and shall describe in reasonable detail:
(i)         the number of Common Shares to be sold by the Trident Shareholders, if the Drag-along Sale is structured as a Transfer of Common Shares;
(ii)        the identity of the Third Party Purchaser;
(iii)       the proposed date, time and location of the closing of the Drag-along Sale;
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(iv)       the per share purchase price and the other material terms and conditions of the Transfer, including a description of any non-cash consideration in sufficient detail to permit the valuation thereof; and
(v)        a copy of any form of agreement proposed to be executed in connection therewith.
(c)        If the Drag-along Sale is structured as a Transfer of Common Shares, then, subject to Section 3.03(d), each Drag-along Shareholder shall Transfer the number of shares equal to the product of (x) the number of Common Shares held by such Dragalong Shareholder and (y) a fraction (A) the numerator of which is equal to the number of Common Shares the Trident Shareholders propose to sell or transfer in the aggregate in the Drag-along Sale and (B) the denominator of which is equal to the number of Common Shares then held by the Trident Shareholders.
(d)       The consideration to be received by a Drag-along Shareholder shall be the same form and amount of consideration per share of Common Shares to be received by the Trident Shareholders (or, if the Trident Shareholders are given an option as to the form and amount of consideration to be received, the same option shall be given) and the terms and conditions of such Transfer shall, except as otherwise provided in the immediately succeeding sentence, be the same as those upon which the Trident Shareholders Transfers their Common Shares. Each Drag-along Shareholder shall make or provide the same representations, warranties, covenants, indemnities and agreements as the Trident Shareholders make or provide in connection with the Dragalong Sale (except that in the case of representations, warranties, covenants, indemnities and agreements pertaining specifically to the Trident Shareholders, the Drag-along Shareholder shall make the comparable representations, warranties, covenants, indemnities and agreements pertaining specifically to itself); provided that all representations, warranties, covenants and indemnities shall be made by the Trident Shareholders and each Drag-along Shareholder severally and not jointly and any indemnification obligation shall be pro rata based on the consideration received by the Trident Shareholders and each Drag-along Shareholder, in each case in an amount not to exceed the aggregate proceeds received by the Trident Shareholders and each such Dragalong Shareholder in connection with the Drag-along Sale.
(e)       The fees and expenses of the Trident Shareholders incurred in connection with a Drag-along Sale and for the benefit of all Shareholders (it being understood that costs incurred by or on behalf of the Trident Shareholders for their sole benefit will not be considered to be for the benefit of all Shareholders), to the extent not paid or reimbursed by the Company or the Third Party Purchaser, shall be shared by all the Shareholders on a pro rata basis, based on the aggregate consideration received by each Shareholder; provided that no Shareholder shall be obligated to make or reimburse any out-of-pocket expenditure prior to the consummation of the Drag-along Sale.
(f)        Each Shareholder shall take all actions as may be reasonably necessary to consummate the Drag-along Sale, including entering into agreements and delivering certificates and instruments, in each case consistent with the agreements being entered into and the certificates being delivered by the Trident Shareholders.
(g)        The Trident Shareholders shall have 180 days following the date of the Drag-along Notice in which to consummate the Drag-along Sale, on the terms set forth in the Drag-along Notice (which such 180-day period may be extended for a reasonable time not to exceed 270 days to the extent reasonably necessary to obtain any Government Approvals). If at the end of such period, the Trident Shareholders have not completed the Drag-along Sale, the Trident Shareholders may not then effect a transaction subject to this Section 3.03 without again fully complying with the provisions of this Section 3.03.
Section 3.04 Tag-along Rights.
(a)       If at any time a Shareholder (the “Selling Shareholder”) proposes to Transfer any of its Common Shares to a Third Party Purchaser (the “Proposed Transferee”), such Selling Shareholder (and if the Selling Shareholder is a Trident Shareholder and the Trident Shareholders cannot or have not elected to exercise their rights to effect a Drag-along Sale in accordance with Section 3.03), each other 
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Shareholder (other than the Atrium Nominee) (each, a “Tag-along Shareholder”) shall be permitted to participate in such Transfer (a “Tag-along Sale”) on the terms and conditions set forth in this Section 3.04.
(b)       Prior to the consummation of any such Transfer of Common Shares described in Section 3.04(a), and after satisfying its obligations (if any) pursuant to Section 3.02, the Selling Shareholder shall deliver to the Company and each other Shareholder a written notice (a “Sale Notice”) of the proposed Tag-along Sale subject to this Section 3.04 no later than 20 Business Days prior to the closing date of the Tag-along Sale. The Sale Notice shall make reference to the Tag-along Shareholders’ rights hereunder and shall describe in reasonable detail:
(i)         the aggregate number of Common Shares the Proposed Transferee has offered to purchase;
(ii)        the identity of the Proposed Transferee;
(iii)       the proposed date, time and location of the closing of the Tag-along Sale;
(iv)       the per share purchase price and the other material terms and conditions of the Transfer, including a description of any non-cash consideration in sufficient detail to permit the valuation thereof; and
(v)        a copy of any form of agreement proposed to be executed in connection therewith.
(c)        Each Tag-along Shareholder shall exercise its right to participate in a Transfer of Common Shares by the Selling Shareholder subject to this Section 3.04 by delivering to the Selling Shareholder and the Company a written notice (a “Tag-along Notice”) stating its election to do so and specifying the number of Common Shares to be Transferred by it no later than five Business Days after receipt of the Sale Notice (the “Tag-along Period”). If there are no Tag-along Shareholders or if all of the Tag-along Shareholders deliver to the Selling Shareholder and the Company Tag-along Notices with respect to all of the Common Shares held by such Tag-along Shareholders, then the Company shall deliver a notice to the Atrium Nominee within three Business Days of the end of the Tag-along Period notifying the Atrium Nominee of that fact whereupon the Atrium Nominee shall be entitled to elect to participate in such Tag-along Sale under this Section 3.04 alongside the other Shareholders in respect of all of the Common Shares held by it (but not part only thereof) by delivering to the Selling Shareholder and the Company a written notice (a “Atrium Nominee Tag Notice”) within five Business Days after the end of the Tag-along Period stating its election to do so (and in which case references hereafter to “Tag-along Shareholder(s)” shall be construed to include the Atrium Nominee accordingly). The offer of each Tag-along Shareholder set forth in a Tag-along Notice (or an Atrium Nominee Tag Notice, as applicable) shall be irrevocable, and, to the extent such offer is accepted, such Tag-along Shareholder shall be bound and obligated to Transfer in the proposed Transfer on the terms and conditions set forth in this Section 3.04. The Selling Shareholder and each Tag-along Shareholder shall have the right to Transfer in a Transfer subject to this Section 3.04 the number of Common Shares equal to the product of (x) the aggregate number of Common Shares the Proposed Transferee proposes to buy as stated in the Sale Notice and (y) a fraction (A) the numerator of which is equal to the number of Common Shares then held by the Selling Shareholder or such Tag-along Shareholder, as the case may be, and (B) the denominator of which is equal to the number of shares then held by the Selling Shareholder and each Tag-along Shareholder.
(d)       Each Tag-along Shareholder that does not deliver a Tag-along Notice (or an Atrium Nominee Tag Notice, as applicable) in compliance with Section 3.04(c) above shall be deemed to have waived all of such Tag-along Shareholder’s rights to participate in such Transfer, and the Selling Shareholder shall (subject to the rights of any participating Tag-along Shareholder) thereafter be free to Transfer to the Proposed Transferee its Common Shares at a per share price that is no greater than the per share price set forth in the Sale Notice and on other terms and conditions which are not materially more favorable to the Selling Shareholder than those set forth in the Sale Notice without any further obligation to the non-accepting Tag-along Shareholders.
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(e)       Each Tag-along Shareholder participating in a Transfer pursuant to this Section 3.04 shall receive the same consideration per share as the Selling Shareholder after deduction of such Tag-along Shareholder’s proportionate share of the related expenses in accordance with Section 3.04(g) below.
(f)        Each Tag-along Shareholder shall make or provide the same representations, warranties, covenants, indemnities and agreements as the Selling Shareholder makes or provides in connection with the Tag-along Sale (except that in the case of representations, warranties, covenants, indemnities and agreements pertaining specifically to the Selling Shareholder, the Tag-along Shareholder shall make the comparable representations, warranties, covenants, indemnities and agreements pertaining specifically to itself); provided that all representations, warranties, covenants and indemnities shall be made by the Selling Shareholder and each Tag-along Shareholder severally and not jointly and any indemnification obligation in respect of breaches of representations and warranties shall be pro rata based on the consideration received by the Selling Shareholder and each Tag-along Shareholder, in each case in an amount not to exceed the aggregate proceeds received by the Selling Shareholder and each such Tag-along Shareholder in connection with any Tag-along Sale.
(g)       The fees and expenses of the Selling Shareholder incurred in connection with a Tag-along Sale and for the benefit of all Shareholders (it being understood that costs incurred by or on behalf of the Selling Shareholder for its sole benefit will not be considered to be for the benefit of all Shareholders), to the extent not paid or reimbursed by the Company or the Proposed Transferee, shall be shared by all the Shareholders participating in the Tag-along Sale on a pro rata basis, based on the aggregate consideration received by each such Shareholder; provided that no Shareholder shall be obligated to make or reimburse any out-of-pocket expenditure prior to the consummation of the Tag-along Sale.
(h)       Each Tag-along Shareholder shall take all actions as may be reasonably necessary to consummate the Tag-along Sale, including entering into agreements and delivering certificates and instruments, in each case consistent with the agreements being entered into and the certificates being delivered by the Selling Shareholder.
(i)         The Selling Shareholder shall have 180 days following the expiration of the Tag-along Period in which to Transfer the Common Shares described in the Sale Notice, on the terms set forth in the Sale Notice (which such 180-day period may be extended for a reasonable time not to exceed 270 days to the extent reasonably necessary to obtain any Government Approvals). If at the end of such period, the Selling Shareholder has not completed such Transfer, the Selling Shareholder may not then effect a Transfer of Common Shares subject to this Section 3.04 without again fully complying with the provisions of this Section 3.04.
(j)         If the Selling Shareholder Transfers to the Proposed Transferee any of its Common Shares in breach of this Section 3.04, then each Tag-along Shareholder shall have the right to Transfer to the Selling Shareholder, and the Selling Shareholder undertakes to purchase from each Tag-along Shareholder, the number of Common Shares that such Tag-along Shareholder would have had the right to Transfer to the Proposed Transferee pursuant to this Section 3.04, for a per share amount and form of consideration and upon the terms and conditions on which the Proposed Transferee bought such Common Shares from the Selling Shareholder, but without indemnity being granted by any Tag-along Shareholder to the Selling Shareholder; provided that nothing contained in this Section 3.04 shall preclude any Shareholder from seeking alternative remedies against such Selling Shareholder as a result of its breach of this Section 3.04.
(k)        Notwithstanding the foregoing provisions of this Section 3.04, the Atrium Nominee shall be permitted to Transfer Common Shares to the Company or the Company’s designee in connection with any Leaver Sale without complying with the terms of this Section 3.04.
Article 4 
Pre-Emptive Rights and Other Agreements
Section 4.01 Pre-emptive Rights.
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(a)       The Company hereby grants to each Shareholder (other than the Atrium Nominee and the Dowling Shareholders) (each, a “Pre-emptive Shareholder”) the right to purchase its pro rata portion of any new Common Shares (other than any Excluded Securities) (the “New Securities”) that the Company may from time to time propose to issue or sell to any Person.
(b)       The Company shall give written notice (an “Issuance Notice”) of any proposed issuance or sale described in subsection (a) above to the Pre-emptive Shareholders within five Business Days following any meeting of the Board at which any such issuance or sale is approved. The Issuance Notice shall set forth the material terms and conditions of the proposed issuance or sale, including:
(i)         the number of New Securities proposed to be issued or sold and the percentage of the Company’s outstanding Common Shares, on a fully diluted basis, that such issuance or sale would represent;
(ii)        the proposed issuance or sale date, which shall be at least 15 Business Days from the date of the Issuance Notice; and
(iii)       the proposed purchase price per share.
(c)        Each Pre-emptive Shareholder shall for a period of 10 Business Days following the receipt of an Issuance Notice (the “Exercise Period”) have the right to elect irrevocably to purchase, at the purchase price set forth in the Issuance Notice, up to the amount of New Securities equal to the product of (x) the total number of New Securities to be issued or sold by the Company on the issuance or sale date (as the case may be) and (y) a fraction determined by dividing (A) the number of Common Shares owned by such Pre-emptive Shareholder immediately prior to such issuance or sale by (B) the total number of Common Shares owned by all Pre-emptive Shareholders on such date immediately prior to such issuance or sale (the “Pre-emptive Pro Rata Portion”) by delivering a written notice to the Company.  Such Pre-emptive Shareholder’s election to purchase New Securities shall be binding and irrevocable.
(d)       No later than five Business Days following the expiration of the Exercise Period, the Company shall notify each Pre-emptive Shareholder in writing of the number of New Securities that each Pre-emptive Shareholder has agreed to purchase (including, for the avoidance of doubt, where such number is zero) (the “Over-allotment Notice”).  Each Pre-emptive Shareholder exercising its right to purchase its Pre-emptive Pro Rata Portion of the New Securities in full (an “Exercising Shareholder”) shall have a right of over-allotment such that if any other Pre-emptive Shareholder fails to exercise its right under this Section 4.01 to purchase its Pre-emptive Pro Rata Portion of the New Securities (each, a “Non-Exercising Shareholder”), such Exercising Shareholder may purchase all or any portion of such Non-Exercising Shareholder’s allotment (the “Overallotment New Securities”) by giving written notice to the Company (within five Business Days of receipt of the Over-allotment Notice (the “Over-allotment Exercise Period”)) setting forth the number of Overallotment New Securities that such Exercising Shareholder is willing to purchase.  Such Exercising Shareholder’s election to purchase Over-allotment New Securities shall be binding and irrevocable.  If more than one Exercising Shareholder elects to exercise its right of over-allotment, each Exercising Shareholder shall have the right to purchase the number of Over-allotment New Securities it elected to purchase in its written notice; provided that if the over-allotment New Securities are over-subscribed, each Exercising Shareholder shall purchase its pro rata portion of the available Over-allotment New Securities based upon the relative Preemptive Pro Rata Portions of the Exercising Shareholders.
(e)       The Company shall be free to complete the proposed issuance or sale of New Securities described in the Issuance Notice with respect to any New Securities not elected to be purchased pursuant to Section 4.01(c) and Section 4.01(d) above in accordance with the terms and conditions set forth in the Issuance Notice (except that the amount of New Securities to be issued or sold by the Company may be reduced) so long as such issuance or sale is closed within 180 days after the expiration of the Overallotment Exercise Period (subject to the extension of such 180-day period for a reasonable time not to exceed 270 days to the extent reasonably necessary to obtain any Government Approvals).  In the event the Company has not issued or sold such New Securities within such time period, the Company shall not 
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thereafter issue or sell any New Securities without first again offering such securities to the Pre-emptive Shareholders in accordance with the procedures set forth in this Section 4.01.
(f)        Upon the consummation of the issuance or sale of any New Securities in accordance with this Section 4.01, the Company shall deliver to each Exercising Shareholder certificates (if any) evidencing the New Securities, which New Securities shall be issued free and clear of any Liens (other than those arising hereunder or under Applicable Law and those attributable to the actions of the purchasers thereof), and the Company shall so represent and warrant to the purchasers thereof, and further represent and warrant to such purchasers that such New Securities shall be, upon issuance thereof to the Exercising Shareholders and after payment therefor, duly authorized and validly issued.  Each Exercising Shareholder shall deliver to the Company the purchase price for the New Securities purchased by it by wire transfer of immediately available funds.  Each party to the purchase and sale of New Securities shall take all such other actions as may be reasonably necessary to consummate the purchase and sale including entering into such additional agreements as may be necessary or appropriate. 
(g)       If the Board determines in good faith that circumstances require the Company to issue or sell the New Securities to the Trident Shareholders or their respective Affiliates, the Company shall be permitted to issue or sell such New Securities to such Trident Shareholders and/or their respective Affiliates without complying with the Issuance Notice and related provisions set forth above, provided that as promptly as reasonably practicable following such issuance or sale, the Company permits each Pre-Emptive Shareholder having rights under this Section 4.01 to purchase such Pre-Emptive Right Shareholder’s proportionate amount of such New Securities in the manner contemplated by this Section 4.01. 
Section 4.02 Corporate Opportunities.  Notwithstanding anything contained in this Agreement or under Applicable Law to the contrary (to the full extent permitted by Applicable Law), (i) each of the Trident Shareholders, the Enstar Shareholder and the Dowling Shareholders and their respective Affiliates (A) may engage in or possess an interest in other business ventures of any nature and description (whether similar or dissimilar to the business of the Company or any of its Subsidiaries), independently or with others, and none of the Company, any Subsidiary, any other Shareholder, and each of their respective Affiliates, shall have any right by virtue of this Agreement in or to any such investment or interest of the Trident Shareholders, the Enstar Shareholder, the Dowling Shareholders, any Director and any of its or their respective Affiliates to any income or profits derived therefrom, and the pursuit of any such venture shall not be deemed wrongful or improper, and (B) shall not be obligated to present any investment opportunity to the Company or any Subsidiary even if such opportunity is of a character that, if presented to the Company or any Subsidiary, could be taken by the Company or such Subsidiary, and (ii) the parties hereby waive (and the Company shall cause the Subsidiaries to waive) to the fullest extent permitted by law any fiduciary or other duty of the Trident Shareholders, the Enstar Shareholder, the Dowling Shareholders and the Directors not expressly set forth in this Agreement, including fiduciary or other duties that may be related to or associated with self-dealing, corporate opportunities or otherwise, in each case so long as such Person acts in a manner consistent with this Agreement.
Section 4.03 Confidentiality.
(a)       Each party shall, and shall cause its Representatives to, keep confidential and not divulge any information (including all budgets, business plans and analyses) concerning the Company and its Subsidiaries, including their assets, business, operations, financial condition or prospects (“Information”), and to use, and cause its Representatives to use, such Information only in connection with the operation of the Company and its Subsidiaries; provided that nothing herein shall prevent any party from disclosing such Information (i) upon the order of any court or administrative agency, (ii) upon the request or demand of any regulatory agency or authority having jurisdiction over such party, (iii) to the extent compelled by legal process or required or requested pursuant to subpoena, interrogatories or other discovery requests, to the extent necessary in connection with the exercise of any remedy hereunder, (v) to the other parties, (vi) to such party’s Representatives that in the reasonable judgment of such party need to know such Information or (vii) to any potential Permitted Transferee in connection with a proposed Transfer of 
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Common Shares from such party as long as such transferee agrees to be bound by the provisions of this Section 4.03 as if a party; provided, further, that in the case of clause (i), (ii) or (iii), such party shall notify the other parties of the proposed disclosure as far in advance of such disclosure as practicable and use reasonable efforts to ensure that any Information so disclosed is accorded confidential treatment, when and if available.
(b)       The restrictions of Section 4.03(a) shall not apply to information that (i) is or becomes generally available to the public other than as a result of a disclosure by a party or any of its Representatives in violation of this Agreement; (ii) is or becomes available to a party or any of its Representatives on a non-confidential basis prior to its disclosure to the receiving party and any of its Representatives, is or has been independently developed or conceived by such party without use of the Company’s or any of its Subsidiaries’ Information or (iii) becomes available to the receiving party or any of its Representatives on a non-confidential basis from a source other than the Company or any of its Subsidiaries, any other party or any of their respective Representatives; provided that such source is not known by the recipient of the information to be bound by a confidentiality agreement with the disclosing party or any of its Representatives. Furthermore, Section 4.03(a) shall not restrict (a) the Enstar Shareholder and its Affiliates from disclosing any Information required to be disclosed under applicable securities laws or the rules of any stock exchange upon which their securities are traded, and (b) the Trident Shareholders and their Affiliates from disclosing any Information to its and their respective partners (general or limited), members, stockholders, prospective investors, lenders or financing sources, in each case, in the ordinary course of business, or any prospective purchaser of its Common Shares.
Section 4.04 Registration Rights.  Upon the request of any Initial Shareholder in connection with a contemplated public offering of the equity of the Company or any of its Subsidiaries, the Company shall enter into (or shall cause the applicable Subsidiary to enter into) a registration rights agreement with the Initial Shareholders containing customary provisions for a transaction of that type, provided, however, (a) in the case of the Trident Shareholders, such registration rights agreement shall include demand registration rights and piggyback registration rights customary for a transaction of this type, and (b) in the case of the Enstar Shareholder, such registration rights agreement shall include piggyback registration rights but exclude demand registration rights, and, in each case, any piggyback rights shall include ratable cutbacks, if necessary, regardless of the piggyback party.
Section 4.05 Indemnification; Insurance.  In addition to any other indemnification rights any Directors have pursuant to the memorandum of association or bye-laws of the Company and any agreement with the Company, each Director shall have the right to enter into, and the Company agrees to enter into, an indemnification agreement with each such Director, which indemnification agreement shall be reasonably acceptable to the Company.  The Company shall maintain director and officer insurance covering the Directors containing terms and conditions reasonably acceptable to the Company.  
Section 4.06 Distribution of Proceeds Upon Sale of All or Substantially All Assets.  To the extent the Company sells all or substantially all of its assets in a transaction to a Third Party Purchaser and does not dissolve within 90 days thereafter, subject to Applicable Law, the Company shall thereafter promptly dividend the aggregate proceeds from such transaction (net of any expenses incurred by the Company in connection with such transaction and net of any liabilities retained by the Company after giving effect to such transaction as determined in good faith by the Board) to each Shareholder, subject to the terms of any Plans, in accordance with Section 15 of the Bye-laws. 
Section 4.07 “Market Stand-off” Agreement.  Notwithstanding anything herein to the contrary, each Shareholder that owns beneficially at least five percent (5%) of the outstanding Common Shares at the time of any public offering by the Company of its Common Shares shall agree that during the period beginning seven (7) days before and ending (x) one hundred eighty (180) days (subject to any customary “booster shot” extensions) in the event of an Initial Public Offering or such shorter period if permitted by the managing underwriter or underwriters or (y) ninety (90) days (subject to any customary “booster shot” extensions) in the event of any other underwritten offering other than an Initial Public Offering after the date of the underwriting agreement entered into in connection with such underwritten offering, such Shareholder or its Permitted Transferees shall not, to the extent requested by the Company or the Trident 
16

Shareholders and/or any underwriter, if applicable, (i) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any Common Shares (including Common Shares that may be deemed to be beneficially owned by such Shareholder in accordance with the rules and regulations of the Securities Exchange Commission and Common Shares that may be issued upon exercise of any convertible into or exchangeable securities) or securities convertible into or exchangeable for Common Shares, (ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Common Shares, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Shares, in cash or otherwise, (iii) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Common Shares or securities convertible into or exchangeable for Common Shares  or (iv) publicly disclose the intention to do any of the foregoing; provided, that the Trident Shareholders are bound by and have entered into similar agreements; and provided further, that if the Trident Shareholders agree to such restrictions for any shorter period than prescribed above, then each other Shareholder shall only be obligated as provided in this Section 4.07 for such shorter period.  If requested by the managing underwriter or underwriters of any such underwritten offering, each Shareholder, as applicable, shall execute a customary agreement on the same terms and conditions as the Trident Shareholders reflecting its agreement set forth in this Section 4.07.  The Company may impose stop-transfer instructions with respect to the shares (or securities) subject to the foregoing restriction until the end of the period referenced above.  
Article 5 
Information Rights
Section 5.01 Financial Statements and Reports.  In addition to, and without limiting any rights that a Shareholder may have with respect to inspection of the books and records of the Company under Applicable Laws, the Company shall furnish to each Shareholder (other than the Atrium Nominee):
(a)       Within 45 days after the end of each quarterly accounting period, an unaudited consolidated balance sheet of the Company as of the end of such quarterly accounting period and an unaudited related consolidated income statement, consolidated statement of shareholders’ equity and consolidated statement of cash flows for such quarterly accounting period including any footnotes thereto (if any) prepared in accordance with GAAP, consistently applied, together with comparable year-to-date figures; 
(b)       Within 90 days after the end of each Fiscal Year (or such longer period of time as is approved by the Board), an audited consolidated balance sheet of the Company as of the end of such Fiscal Year and the related consolidated income statement, consolidated statement of shareholders’ equity, and consolidated statement of cash flows including all footnotes thereto for such Fiscal Year prepared in accordance with GAAP, consistently applied; and 
(c)        Such other financial, accounting or other information relating to the Company and its Subsidiaries or their respective operations as any Initial Shareholder or the Dowling Shareholders may reasonably request from time to time in form and substance reasonably acceptable to such requesting Shareholder. 
Section 5.02    Inspection Rights. 
(a)       The Company shall, and shall cause its officers, Directors and employees to, afford each Shareholder (other than the Atrium Nominee) that, together with any Affiliates and/or Permitted Transferees, owns at least 5% of the Company’s outstanding Common Shares and the Representatives of each such Shareholder, during normal business hours and upon reasonable notice, (i) reasonable access at all reasonable times to its and its Subsidiaries’ officers, employees, auditors, properties, offices, plants and other facilities and to all books and records, and (ii) the opportunity to consult with its and its Subsidiaries’ officers from time to time regarding the Company’s and its Subsidiaries’ affairs, finances and accounts as each such Shareholder may reasonably request upon reasonable notice. 
17

(b)       The right set forth in Section 5.02(a) shall not and is not intended to limit any rights which the Shareholders may have with respect to the books and records of the Company, or to inspect its properties or discuss its affairs, finances and accounts under the laws of the jurisdiction in which the Company is incorporated. 
Article 6 
Cessation of Employment
Section 6.01 Leavers.  If a Beneficial Owner leaves employment with the Atrium Group and/or otherwise ceases to be an employee or officer of or consultant to a member of the Atrium Group for whatever reason, such Beneficial Owner will become a “Leaver” in relation to any Common Shares (or other shares of the Company which are issued pursuant to a scheme approved by the Board for the return of income or capital to shareholders) held by the Atrium Nominee (as Nominee) on behalf of such Beneficial Owner. If the Company elects to exercise its rights under the Leaver Sale Provisions (a “Leaver Sale”), then the Atrium Nominee shall be permitted hereunder to Transfer any Common Shares held by the Atrium Nominee on behalf of such Leaver in accordance with the terms of the Leaver Sale Provisions.
Article 7 
Representations and Warranties
Section 7.01 Representations and Warranties.  Each Shareholder, severally and not jointly, represents and warrants to the Company and each other Shareholder that:
(a)       Such Shareholder (if an entity) is a corporation, company, partnership or limited liability company duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of organization.
(b)       Such Shareholder (if an entity) has full corporate, company or partnership power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized (if such Shareholder is an entity) by all requisite corporate or company action of such Shareholder. Such Shareholder has duly executed and delivered this Agreement.
(c)        This Agreement constitutes the legal, valid and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby require no action by or in respect of, or filing with, any Governmental Authority.
(d)       The execution, delivery and performance by such Shareholder of this Agreement and the consummation of the transactions contemplated hereby do not (i) conflict with or result in any violation or breach of any provision of any of the organizational documents of such Shareholder (if an entity), (ii) conflict with or result in any violation or breach of any provision of any Applicable Law or (iii) require any consent or other action by any Person under any provision of any material agreement or other instrument to which such Shareholder is a party.
(e)       Except for this Agreement, the Recapitalization Agreement, the Plans (including the ancillary documentation relating to the acquisition of Common Shares pursuant to the Plans) and the Nominee Agreements, such Shareholder has not entered into or agreed to be bound by any other agreements or arrangements of any kind with any other Person with respect to the Common Shares, including agreements or arrangements with respect to the acquisition or disposition of the Common Shares or any interest therein or the voting of the Common Shares (whether or not such agreements and arrangements are with the Company or any other Person).
Article 8 
18

Term and Termination
Section 8.01 Termination.  This Agreement shall terminate upon the earliest of:
(a)       the consummation of an Initial Public Offering;
(b)       the consummation of a merger or other business combination involving the Company whereby the Common Shares become a security that is listed or admitted to trading on the NASDAQ Stock Market, the New York Stock Exchange or another national securities exchange;
(c)        the date on which no more than one Shareholder holds any Common Shares; 
(d)       the dissolution, liquidation or winding up of the Company; or
(e)       upon the unanimous agreement of the Shareholders.
Section 8.02 Effect of Termination.
(a)       The termination of this Agreement shall terminate all further rights and obligations of the Shareholders under this Agreement except that such termination shall not effect:
(i)         the existence of the Company;
(ii)        the obligation of any party to pay any amounts arising on or prior to the date of termination, or as a result of or in connection with such termination;
(iii)       the rights which any Shareholder may have by operation of law as a shareholder of the Company; or
(iv)       the rights contained herein which by their terms are intended to survive termination of this Agreement.
(b)       The following provisions shall survive the termination of this Agreement: Section 4.03, Section 4.07, this Section 8.02, Section 9.03, Section 9.11, Section 9.12 and Section 9.13.
Article 9 
Miscellaneous
Section 9.01 Expenses.  Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.
Section 9.02 Release of Liability.  In the event any Shareholder shall Transfer all of the Common Shares held by such Shareholder in compliance with the provisions of this Agreement without retaining any interest therein, then such Shareholder shall cease to be a party to this Agreement and shall be relieved and have no further liability arising hereunder for events occurring from and after the date of such Transfer.
Section 9.03 Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt), (b) when received by the addressee if sent by an internationally recognized overnight courier (receipt requested), (c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 9.03):
19

						
	If to the Company:	c/o Atrium Underwriting Group Limited Lloyd’s Building, Room 790 1 Lime Street London, England EC3M 7DQ Email: Attention: Chief Legal Officer
	with a copy in each case to (which shall not constitute notice):	c/o Stone Point Capital LLC 20 Horseneck Lane Greenwich, CT 06830 Email: slevey@stonepoint.com mailto: Attention: Stephen Leve
	If to the Trident Shareholders:	c/o Stone Point Capital LLC 20 Horseneck Lane Greenwich, CT 06830 Email: slevey@stonepoint.com Attention: Stephen Levey
	with a copies to (which shall not constitute notice):	c/o Stone Point Capital LLC 20 Horseneck Lane Greenwich, CT 06830 Email: contracts@stonepoint.com Attention: General Counsel
		Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Email: sseidman@willkie.com; sewen@willkie.com
Attention: Steven A. Seidman; Sean M. Ewen
	If to the Enstar Shareholder:	c/o Enstar Group Limited
Windsor Place, 3rd Floor
22 Queen Street
Hamilton HM 11
Bermuda
Email: paul.o’shea@enstargroup.com
Attention: Paul O’Shea, President

	with a copy in each case to (which shall not constitute notice):	Hogan Lovells US LLP
1735 Market Street, Suite 2300
Philadelphia, Pennsylvania 19103
Email: bob.juelke@hoganlovells.com; dave.marley@hoganlovells.com
Attention: Robert C. Juelke; Dave C. Marley

	If to the Dowling Shareholders:	c/o Dowling Capital Partners
190 Farmington Avenue
Farmington, CT 06032
Email: justin@dowlingcapitalpartners.com
Attention: Justin Faust

	If to the Atrium Nominee:	c/o Atrium Underwriting Group Limited Lloyd’s Building, Room 790 1 Lime Street London, England EC3M 7DQ Email: peter.hargrave@atrium-uw.com Attention: Peter Hargrave, Human Resources Director

Section 9.04 Interpretation.  For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation;” (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. The definitions given for any defined terms in this Agreement shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein: (x) to Articles, Sections, and Exhibits mean the Articles and Sections of, and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
Section 9.05 Headings.  The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
Section 9.06 Severability.  If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
Section 9.07 Entire Agreement.  This Agreement, the Organizational Documents, the Plans, the Recapitalization Agreement and the Nominee Agreements constitute the sole and entire agreement of the parties with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency or conflict between this Agreement and any Organizational Document, the Shareholders and the Company shall, to the extent permitted by Applicable Law, amend such Organizational Document to comply with the terms of this Agreement. 
Section 9.08 Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
Section 9.09 No Third-Party Beneficiaries.  This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
20

Section 9.10 Amendment and Modification; Waiver.  Subject to Section 2.02(a), this Agreement may only be amended, modified or supplemented by an agreement in writing signed by the Company and the Trident Shareholders; provided that any amendment that would materially and adversely affect the rights or duties of a Shareholder shall require the consent of such Shareholder. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
Section 9.11 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of New York.
Section 9.12 Submission to Jurisdiction; Waiver of Jury Trial.
(a)       ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK IN EACH CASE LOCATED IN THE CITY OF NEW YORK AND COUNTY OF NEW YORK, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
(b)       EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (II) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.12(b).
Section 9.13 Equitable Remedies.  Each party hereto acknowledges that the other parties hereto would be irreparably damaged in the event of a breach or threatened breach by such party of any of its obligations under this Agreement and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, each of the other parties hereto shall, in addition to any and all other rights and remedies that may be available to them in respect of such breach, be entitled to an injunction from a court of competent jurisdiction (without any requirement to post bond) granting such parties specific performance by such party of its obligations under this Agreement.
Section 9.14 Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same 
21

agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

22

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective representatives thereunto duly authorized.

Northshore Holdings Limited

By:        /s/ Orla Gregory
Name:   Orla Gregory
Title:     Director

Trident V, L.P.

By:  Stone Point Capital LLC, its manager

By:        /s/ Stephen Levey
Name:   Stephen Levey  
Title:     Principal and Counsel

Trident V Parallel Fund, L.P.

By:  Stone Point Capital LLC, its manager

By:        /s/ Stephen Levey
Name:   Stephen Levey  
Title:     Principal and Counsel

Trident V Professionals Fund, L.P.

By:  Stone Point Capital LLC, its manager

By:        /s/ Stephen Levey
Name:   Stephen Levey  
Title:     Principal and Counsel

Kenmare Holdings Ltd.

By:       /s/ Duncan Scott
Name:  Duncan Scott
Title:    Director

Dowling Capital Partners I, L.P.

By: Dowling Capital I, LLC, its general partner

By: Dowling Capital SLP I, LLC, its sole member

By:       /s/ Vincent J. Dowling, Jr.
Name:  Vincent J. Dowling, Jr.
Title:    Managing Director

Capital City Partners LLC

By:       /s/ Vincent J. Dowling, Jr.
Name:  Vincent J. Dowling, Jr.
Title:    Managing Member

Atrium Nominees Limited

By:        /s/ Richard Harries
Name:   Richard Harries
Title:     Chief Executive Officer

EXHIBIT A

Joinder Agreement
Reference is hereby made to the Third Amended and Restated Shareholders’ Agreement, dated as of January 1, 2021 (as amended from time to time, the “Shareholders’ Agreement”), by and among Northshore Holdings Limited, a Bermuda exempted company (the “Company”), Trident V, L.P., Trident V Parallel Fund, L.P., Trident V Professionals Fund, L.P., Kenmare Holdings Ltd., Dowling Capital Partners I, L.P., Capital City Partners LLC, Atrium Nominees Limited and the other parties thereto from time to time. Pursuant to and in accordance with Section 3.01(e) of the Shareholders’ Agreement, the undersigned hereby agrees that upon the execution of this Joinder Agreement, it shall become a party to the Shareholders’ Agreement and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Shareholders’ Agreement as though an original party thereto and shall be deemed to be a Shareholder of the Company for all purposes thereof.
Capitalized terms used herein without definition shall have the meanings ascribed thereto in the Shareholders’ Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of [DATE].
Northshore Holdings Limited
By:                                                                  
Name: 
Title:
[New Shareholder]
By:                                                                  
Name: 
Title:

Schedule I
                                                              Ownership              
						
	Shareholder	Common Shares held
	Trident V, L.P.	37,937.12
	Trident V Parallel Fund, L.P.	119,968.71
	Trident V Professionals Fund, L.P.	84,135.65
	Kenmare Holdings Ltd.	5,263.74
	Dowling Capital Partners I, L.P.	3,759.22
	Capital City Partners LLC	535.57
	Atrium Nominees Limited	22,848Exhibit 10.1

 

Execution
Version

 

 

CREDIT AGREEMENT

 

dated as of December 31, 2020,

 

among

 

TUESDAY MORNING CORPORATION,

as Holdings,

 

TUESDAY MORNING, INC.,

as Borrower,

 

THE LENDERS PARTY HERETO,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Sole Lead Arranger and Sole Bookrunner

 

and

 

BANK OF AMERICA, N.A.,

and

WELLS FARGO BANK, N.A.,

as Co-Syndication Agents

 

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I Definitions	1
	 	 
	Section 1.01	Defined Terms	1
	Section 1.02	Terms Generally	59
	Section 1.03	Accounting Terms	59
	Section 1.04	Rounding	60
	Section 1.05	Timing of Payment or Performance	60
	Section 1.06	Classification	60
	Section 1.07	References to Laws	61
	Section 1.08	Pro Forma	61
	Section 1.09	Interest Rates; LIBOR Notification	61
	Section 1.10	Letters of Credit	62
	Section 1.11	Divisions	62
	 	 	 
	ARTICLE II The Credits	62
	 	 
	Section 2.01	Revolver Commitments	62
	Section 2.02	Loans and Borrowings	62
	Section 2.03	Requests for Borrowings and Notices	63
	Section 2.04	[Reserved]	64
	Section 2.05	Letters of Credit	64
	Section 2.06	Funding of Borrowings	68
	Section 2.07	Interest Elections	69
	Section 2.08	Repayment of Loans; Termination of Revolver Commitments	70
	Section 2.09	Evidence of Debt	71
	Section 2.10	Application of Payment in the Dominion Account	72
	Section 2.11	Prepayments of Revolver Loans	72
	Section 2.12	Fees	73
	Section 2.13	Interest	73
	Section 2.14	Alternate Rate of Interest	74
	Section 2.15	Increased Costs	77
	Section 2.16	Break Funding Payments	78
	Section 2.17	Taxes	79
	Section 2.18	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	82
	Section 2.19	Mitigation Obligations; Replacement of Lenders	84
	Section 2.20	Illegality	85
	Section 2.21	Defaulting Lenders	86
	Section 2.22	Revolver Commitment Increase	87
	Section 2.23	Bank Products and Swap Agreements	89
	Section 2.24	Overadvances	89
	Section 2.25	Protective Advances	90

 

    i

     

    

 

	ARTICLE III Representations and Warranties	90
	 	 
	Section 3.01	Organization; Powers	90
	Section 3.02	Authorization	91
	Section 3.03	Enforceability	91
	Section 3.04	Governmental Approvals	91
	Section 3.05	Financial Statements	92
	Section 3.06	No Material Adverse Effect	92
	Section 3.07	Title to Properties; Possession Under Leases	92
	Section 3.08	Subsidiaries	93
	Section 3.09	Litigation; Compliance with Laws	93
	Section 3.10	Investment Company Act	93
	Section 3.11	Use of Proceeds	93
	Section 3.12	Federal Reserve Regulations	93
	Section 3.13	Tax Returns	94
	Section 3.14	Disclosure	94
	Section 3.15	Employee Benefit Plans	95
	Section 3.16	Environmental Matters	95
	Section 3.17	Security Documents	95
	Section 3.18	Solvency	96
	Section 3.19	Labor Matters	96
	Section 3.20	Insurance	97
	Section 3.21	USA PATRIOT Act and OFAC	97
	Section 3.22	EEA Financial Institution	97
	Section 3.23	Plan Assets	97
	Section 3.24	Common Enterprise	98
	Section 3.25	Material Agreements	98
	 	 	 
	ARTICLE IV Conditions Precedent	98
	 	 
	Section 4.01	Closing Date	98
	Section 4.02	Conditions Precedent to All Credit Extensions	102
	 	 	 
	ARTICLE V Affirmative Covenants	103
	 	 
	Section 5.01	Existence; Businesses and Properties	103
	Section 5.02	Insurance	103
	Section 5.03	Taxes	104
	Section 5.04	Financial Statements, Reports, etc.	104
	Section 5.05	Notices of Material Events	107
	Section 5.06	Compliance with Laws	108
	Section 5.07	Maintaining Records; Access to Properties and Inspections	108
	Section 5.08	Compliance with Environmental Laws	109
	Section 5.09	Further Assurances; Additional Guarantors; Mortgages	110
	Section 5.10	Fiscal Year; Accounting	112
	Section 5.11	[RESERVED]	112
	Section 5.12	Collateral Monitoring and Reporting	112

 

    ii

     

    

 

	Section 5.13	Use of Proceeds	115
	 	 	 
	ARTICLE VI Negative Covenants	115
	 	 
	Section 6.01	Indebtedness	115
	Section 6.02	Liens	118
	Section 6.03	Sale and Lease-Back Transactions	122
	Section 6.04	Investments, Loans and Advances	122
	Section 6.05	Mergers, Consolidations and Dispositions	124
	Section 6.06	Dividends and Distributions	128
	Section 6.07	Transactions with Affiliates	130
	Section 6.08	Business of Holdings, the Borrower and the Subsidiaries	132
	Section 6.09	Limitation on Modification of Indebtedness; Modification of Certificate of Incorporation, By-Laws and Certain Other Agreements; etc.	132
	Section 6.10	Financial Covenant	135
	Section 6.11	Use of Proceeds	135
	Section 6.12	Foreign Subsidiaries	135
	 	 	 
	ARTICLE VII Events of Default	135
	 	 
	Section 7.01	Events of Default	135
	Section 7.02	Allocation	138
	 	 	 
	ARTICLE VIII The Agents	140
	 	 
	Section 8.01	Appointment, Authority and Duties of the Administrative Agent	140
	Section 8.02	Agreements Regarding Collateral and Field Examination Reports	141
	Section 8.03	Reliance By the Administrative Agent	142
	Section 8.04	Action Upon Default	142
	Section 8.05	Payments Received by Defaulting Lender	142
	Section 8.06	Limitation on Responsibilities of the Agents	143
	Section 8.07	Successor Administrative Agent and Co-Agents	143
	Section 8.08	Acknowledgements of Lenders and Issuing Banks	144
	Section 8.09	Remittance of Payments and Collections	145
	Section 8.10	The Administrative Agent in its Individual Capacity	145
	Section 8.11	Administrative Agent Titles	146
	Section 8.12	Bank Product Providers	146
	Section 8.13	Survival	146
	Section 8.14	Withholding Tax	146
	Section 8.15	Indemnification	147
	Section 8.16	Certain ERISA Matters	147
	Section 8.17	Flood Insurance Laws	148
	 	 	 
	ARTICLE IX Miscellaneous	148
	 	 
	Section 9.01	Notices	148
	Section 9.02	Survival of Agreement	149

 

    iii

     

    

 

	Section 9.03	Binding Effect	150
	Section 9.04	Successors and Assigns	150
	Section 9.05	Expenses; Indemnity	154
	Section 9.06	Right of Set-off	156
	Section 9.07	Applicable Law	156
	Section 9.08	Waivers; Amendment	157
	Section 9.09	Interest Rate Limitation	159
	Section 9.10	Entire Agreement	160
	Section 9.11	WAIVER OF JURY TRIAL	160
	Section 9.12	Severability	160
	Section 9.13	Counterparts; Electronic Execution	161
	Section 9.14	Headings	162
	Section 9.15	Jurisdiction; Consent to Service of Process	162
	Section 9.16	Confidentiality	163
	Section 9.17	Release of Liens and Guarantees	164
	Section 9.18	USA PATRIOT Act	164
	Section 9.19	Marshalling	164
	Section 9.20	Obligations Several; Independent Nature of Lenders’ Rights	164
	Section 9.21	Acknowledgement Regarding Any Supported QFCs	165
	Section 9.22	Acknowledgements	165
	Section 9.23	Lender Action	166
	Section 9.24	Judgment Currency	166
	Section 9.25	Acknowledgement and Consent to Bail-In of Affected Financial Institutions	167
	Section 9.26	Intercreditor Agreement	167

 

    iv

     

    

 

EXHIBITS AND SCHEDULES

 

	Exhibit A	Form of Assignment and Acceptance
	Exhibit B	Form of Solvency Certificate
	Exhibit C	Form of Compliance Certificate
	Exhibit D-1	Form of U.S. Tax Compliance Certificate (Foreign Lenders that are not Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit D-2	Form of U.S. Tax Compliance Certificate (Foreign Participants that are not Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit D-3	Form of U.S. Tax Compliance Certificate (Foreign Participants that are Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit D-4	Form of U.S. Tax Compliance Certificate (Foreign Lenders that are Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit E	Form of Note
	Exhibit F	Form of Borrowing Base Certificate
	 	 
	Schedule 1.01(a)	Specified Bank Product Obligations
	Schedule 1.01(b)	Existing Letters of Credit
	Schedule 2.01	Revolver Commitments
	Schedule 2.01B	Letter of Credit Sublines
	Schedule 3.07(b)	Licensing Agreements
	Schedule 3.07(c)	Real Property
	Schedule 3.08(a)	Subsidiaries
	Schedule 3.17	Financing Statements and Other Filings
	Schedule 3.20	Insurance
	Schedule 3.25	Material Agreements
	Schedule 5.12	Deposit Accounts, Securities Accounts and Commodities Accounts
	Schedule 6.01	Indebtedness
	Schedule 6.02	Liens
	Schedule 6.04	Investments
	Schedule 6.07	Transactions with Affiliates

 

    v

     

    

 

 

CREDIT AGREEMENT dated
as of December 31, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time,
this “Agreement”), among TUESDAY MORNING, INC., a Texas corporation (the “Borrower”),
each of the Subsidiary Guarantors (as hereinafter defined), TUESDAY MORNING CORPORATION, a Delaware corporation (“Parent”),
TMI HOLDINGS, INC., a Delaware corporation (“Intermediate Holdings”), the LENDERS party hereto from time
to time, JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”),
BANK OF AMERICA, N.A. and WELLS FARGO BANK, N.A., as co-syndication agents (in such capacity, the “Syndication Agents”).

 

WHEREAS, on May 27,
2020 (the “Petition Date”), the Borrower and each of the Subsidiary Guarantors (as defined below) filed voluntary
petitions with the Bankruptcy Court commencing their respective cases that are pending under Chapter 11 of the Bankruptcy Code
(collectively, the “Cases”). In connection with the Cases, the Loan Parties, JPMorgan Chase Bank, N.A., as
administrative agent, and the lenders party thereto entered into that certain Senior Secured Super Priority Debtor-In-Possession
Credit Agreement dated as of May 29, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified
from time to time, the “DIP ABL Credit Agreement”);

 

WHEREAS, the Loan
Parties filed the Revised Second Amended Joint Plan of Reorganization of Tuesday Morning Corporation, et al., Pursuant to Chapter
11 of the Bankruptcy Code dated November 18, 2020 (as amended, supplemented or otherwise modified from time to time, the
 “Plan of Reorganization”) with the Bankruptcy Court, which Plan of Reorganization was confirmed by the Bankruptcy
Court’s order entered on December 23, 2020;

 

WHEREAS, the Borrower
has requested that the Lenders and Issuing Banks extend exit financing in connection with the consummation of the Plan of Reorganization;

 

NOW THEREFORE, the
Lenders and Issuing Banks are willing to extend such exit financing to the Borrower on the terms and subject to the conditions
set forth herein. Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

“ABL Priority
Collateral” shall have the meaning assigned such term in the Intercreditor Agreement.

 

“Account”
shall have the meaning as defined in the UCC, including all rights to payment for goods sold or leased, or for services rendered.

 

“Account
Debtor” shall mean a Person who is obligated under an Account, Chattel Paper or General Intangible.

 

    

     

    

 

“Acquisition”
shall mean, with respect to any Person, (a) an Investment in, or a purchase of a Controlling interest in, the Equity Interests
of any other Person (whether by merger or consolidation of such Person with any other Person or otherwise) or (b) a purchase
or other acquisition of all or substantially all of the assets or properties of another Person or of any business unit of another
Person (whether by merger or consolidation of such Person with any other Person or otherwise).

  

“Adjusted
LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied
by (b) the Statutory Reserve Rate; provided, that if the Adjusted LIBO Rate as so determined would be less
than 0.50%, such rate shall be deemed to 0.50% for the purposes of this Agreement.

 

“Adjusted
One Month LIBOR Rate” means, for any day, an interest rate per annum equal to the sum of (i) 2.50% plus (ii) the
Adjusted LIBO Rate for a one month interest period on such day (or if such day is not a Business Day, the immediately preceding
Business Day); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the LIBO
Screen Rate at approximately 11:00 a.m. London time on such day; provided, further, that if the LIBO Screen
Rate, as determined without giving effect to the first proviso set forth in the definition of the “LIBO Screen Rate,”
at such time shall be less than 0.50%, such rate shall be deemed to be 0.50% for purposes of determining the “Adjusted One
Month LIBOR Rate” and the “CBFR”.

 

“Administrative
Agent” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

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

 

“Affected
Financial Institution” shall mean (a) any EEA Financial Institution or (b) any UK Financial Institution.

 

“Affected
Lender” shall have the meaning assigned to such term in Section 2.20.

 

“Affiliate”
shall mean, when used with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified; provided, however, no Agent or
Lender shall be deemed to be an Affiliate of the Borrower or its Subsidiaries with respect to transactions evidenced by any Loan
Document.

 

“Agent Indemnitees”
shall mean each Agent and its officers, directors, employees, Affiliates, agents and attorneys.

 

“Agent Professionals”
shall mean attorneys, accountants, appraisers, auditors, environmental engineers or consultants, and other professionals and experts
retained by the Administrative Agent.

 

“Agents”
shall mean the Administrative Agent and the Syndication Agents.

 

    2

     

    

 

“Aggregate
Letter of Credit Subline” shall mean, at any time, the aggregate amount of the Letter of Credit Sublines of all Issuing
Banks at such time. As of the Closing Date, the Aggregate Letter of Credit Subline is $15,000,000.

 

“Aggregate
Revolving Exposure” means, at any time, the aggregate Revolving Exposure of all the Lenders at such time.

 

“Agreement”
shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

“Agreement
Currency” has the meaning assigned to such term in Section 9.24.

 

“All Outstanding
Equity Interests” shall mean, with respect to any Person, all of the outstanding Equity Interests (other than directors’
qualifying shares and similar de minimis holdings required by Applicable Law) in such Person.

 

“Allowed
General Unsecured Claims” shall have the meaning assigned to such term in the Plan of Reorganization.

 

“Ancillary
Document” has the meaning assigned to it in Section 9.13(b).

 

“Anti-Corruption
Laws” shall mean all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries
from time to time concerning or relating to bribery , corruption, money laundering, any predicate crime to money laundering or
any financial record keeping an reporting requirements related thereto.

 

“Applicable
Law” shall mean all applicable laws, rules, regulations and binding governmental requirements having the force and effect
of law applicable to the Person in question or any of its property or assets, including all applicable statutory law, common law
and equitable principles, and all provisions of constitutions, treaties, statutes, rules, regulations, orders and decrees of Governmental
Authorities.

 

“Applicable
Margin” shall mean, for any day, with respect to any Loan, the applicable rate per annum set forth below under the caption
 “Revolver CBFR Applicable Margin” or “Revolver Eurodollar Applicable Margin”, as the case may be, based
upon the Average Quarterly Availability during the most recently ended fiscal quarter of the Borrower; provided that the
 “Applicable Margin” shall be the applicable rates per annum set forth below in Category III during the period from
the Closing Date to, and including, the last day of the fiscal quarter of the Borrower ending on or about December 31, 2021:

 

	Category	Excess
    Availability	Revolver
        Eurodollar

        Applicable
        Margin
	Revolver
    CBFR 

    Applicable Margin
	I	 

        ≥ $50,000,000

         
	2.25%	1.25%
	II	 

        < $50,000,000 but

        ≥ $30,000,000

         
	2.50%	1.50%
	III	 

        < $30,000,000

         
	2.75%	1.75%

 

    3

     

    

 

For purposes of the foregoing, each
change in the Applicable Margin resulting from a change in Average Quarterly Availability shall be effective during the period
commencing on and including the first day of each fiscal quarter of the Borrower and ending on the last day of such fiscal quarter,
it being understood and agreed that, for purposes of determining the Applicable Margin on the first day of any fiscal quarter
of the Borrower, the Average Quarterly Availability during the most recently ended fiscal quarter of the Borrower shall be used.
Notwithstanding the foregoing, the Average Quarterly Availability shall be deemed to be in Category III at the option
of the Administrative Agent or at the request of the Required Lenders if the Borrower fails to deliver any Borrowing Base Certificate
or related information required to be delivered by it pursuant to Section 5.12, during the period from the expiration
of the time for delivery thereof until five days after each such Borrowing Base Certificate and related information is so delivered.

 

If at any time the
Administrative Agent determines that any Borrowing Base Certificate or related information based on which Availability and/or
such Average Quarterly Availability and the corresponding Applicable Margin was determined, as applicable, was incorrect (whether
based on a restatement, fraud or otherwise) (“Inaccurate Information”), the Borrower shall be required to retroactively
pay any additional amount (an “Additional Amount”) that the Borrower would have been required to pay if such
Borrowing Base Certificate or related information based upon which Availability and/or such Average Quarterly Availability was
determined had been accurate at the time it was delivered. Upon the making of such retroactive payment of such Additional Amount
by the Borrower, no Event of Default under Section 7.01(c) shall be deemed to exist solely as a result of the
Borrower’s failure to have paid such Additional Amount when such Additional Amount would have been payable had there been
no Inaccurate Information.

 

“Appraised
Value Percentage” means the appraised orderly liquidation value, net of costs and expenses to be incurred in connection
with any such liquidation, which value is expressed as a percentage of Cost of the Eligible Inventory as set forth in the Loan
Parties’ inventory stock ledgers, which value shall be determined from time to time by the most recent appraisal undertaken
by an independent appraiser engaged by the Administrative Agent.

 

“Assignment
and Acceptance” shall mean an assignment and acceptance entered into by a Lender and an assignee, and accepted by the
Administrative Agent and the Borrower (if the Borrower’s consent is required by this Agreement), in the form of Exhibit A
or such other form as shall be approved by the Administrative Agent.

 

“Availability”
shall mean as of any applicable date, (a) the amount by which the Line Cap at such time exceeds the Aggregate Revolving Exposure
on such date, minus (b) the Availability Block; provided that, solely for purposes of (x) the definition
of “Cash Dominion Trigger Period”, (y) the definition of “Liquidity Event” and (z) Section 5.07(b),
 “Availability” shall be determined without regard to the Availability Block.

 

“Availability
Block” shall mean (a) during the period from and after the Closing Date to, but excluding, the first anniversary
of the Closing Date, an amount equal the greater of (i) $10,000,000 and (ii) ten percent (10%) of the Line Cap, and
(b) from and after the first anniversary of the Closing Date, $0.

 

    4

     

    

 

“Availability
Reserve” shall mean the sum (without duplication of any other reserves or items that are otherwise addressed or excluded
through eligibility criteria (including collection rates or collection percentages)) of (a) the Inventory Reserves; (b) the
Rent and Charges Reserve; (c) the Bank Product Reserve; (d) the Swap Obligations Reserve, and (e) such additional
reserves not otherwise addressed in clauses (a) through (d) above, in such amounts and with respect
to such matters, as the Administrative Agent in its Permitted Discretion may elect to establish or modify from time to time.

 

Notwithstanding anything
to the contrary in this Agreement, (i) so long as no Event of Default exists, such Availability Reserve shall not be established
or changed except upon not less than three (3) days’ (or such shorter period as may be agreed by the Borrower) prior
written notice to the Borrower, which notice shall include a reasonably detailed description of such applicable Availability Reserve
being established or changed (during which period (a) the Administrative Agent shall, if requested, discuss any such Availability
Reserve or change with the Borrower, (b) the Borrower may take such action as may be required so that the event, condition
or matter that is the basis for such Availability Reserve or change thereto no longer exists or exists in a manner that would
result in the establishment of a lower Availability Reserve or result in a lesser change thereto, in a manner and to the extent
reasonably satisfactory to the Administrative Agent and (c) the Borrower shall not be permitted to request any Credit Extension
if Availability (determined as if such new or changed reserve were in effect as of the time of such Credit Extension) after giving
effect to such Credit Extension would be less than $0), and (ii) the amount of any Availability Reserve established by the
Administrative Agent, and any change in the amount of any Availability Reserve, shall have a reasonable relationship to the event,
condition or other matter that is the basis for such Availability Reserve or such change. Notwithstanding clause (i) of
the preceding sentence, changes to the Availability Reserve solely for purposes of correcting mathematical or clerical errors
(and such other changes as are otherwise agreed by the Borrower) shall not be subject to such notice period, it being understood
that no Default or Event of Default shall be deemed to result solely therefrom, if applicable, for a period of three (3) days.

 

“Available
Tenor” shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any
tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or
may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for
the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period”
pursuant to clause (g) of Section 2.14.

 

“Average
Quarterly Availability” means, for any fiscal quarter of the Borrower, an amount equal to the average daily Availability
during such fiscal quarter, as determined by the Administrative Agent’s system of records; provided, that in order
to determine Availability on any day for purposes of this definition, the Borrower’s Borrowing Base for such day shall be
determined by reference to the most recent Borrowing Base Certificate delivered to the Administrative Agent pursuant to Section 5.12
as of such day.

 

“Bail-In
Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect
of any liability of an Affected Financial Institution.

 

    5

     

    

 

“Bail-In
Legislation” shall mean, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU
of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement
for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect
to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation
or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other
financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

 

“Bank Product”
shall mean any of the following products, services or facilities extended to the Borrower or any Subsidiary by a Lender or any
of its Affiliates: (a) Cash Management Services; (b) commercial credit card and merchant card services; (c) the
WF Factoring Arrangement, (d) supply chain finance services including, without limitation, trade payable services and supplier
accounts receivable purchases, (e) commercial equipment financing and leasing, (f) foreign exchange facilities, and
(g) other banking products or services as may be requested by the Borrower or any Subsidiary, other than loans or letters
of credit.

 

“Bank Product
Obligations” shall mean Indebtedness and other obligations (including Cash Management Obligations) of a Loan Party relating
to Bank Products.

 

“Bank Product
Reserve” shall mean the aggregate amount of reserves established by the Administrative Agent from time to time in its
Permitted Discretion in respect of Secured Bank Product Obligations, provided that (a) in no event shall amounts owing
in respect of the WF Factoring Arrangement be included in the Bank Product Reserve or Availability Reserve, (b) no amounts
owing in respect of the Specified Bank Products shall be included in the Bank Product Reserve or Availability Reserve except to
the extent such amounts exceed $1 million in the aggregate, and in such case only to the extent of such excess and (c) no
amounts owing in respect of Cash Management Obligations owed to Wells Fargo Bank, N.A. or one or more of its Affiliates shall
be included in the Bank Product Reserve or Availability Reserve except to the extent such amounts exceed $2 million in the aggregate,
and in such case only to the extent of such excess.

 

“Bankruptcy
Code” shall mean Title 11 of the United States Code or any similar federal or state law for the relief of debtors,
as now and hereafter in effect, or any successor statute.

 

“Bankruptcy
Court” shall mean the United States Bankruptcy Court for the Northern District of Texas, Dallas Division or any other
court having jurisdiction over the Cases from time to time and any Federal appellate court thereof.

 

“Benchmark”
shall mean, initially, LIBO Rate; provided that if a Benchmark Transition Event, a Term SOFR Transition Event or an Early
Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to LIBO Rate or the then-current
Benchmark, then “Benchmark” shall mean the applicable Benchmark Replacement to the extent that such Benchmark Replacement
has replaced such prior benchmark rate pursuant to clause (c) or clause (d) of Section 2.14.

 

    6

     

    

 

“Benchmark
Replacement” shall mean, for any Available Tenor, the first alternative set forth in the order below that can be determined
by the Administrative Agent for the applicable Benchmark Replacement Date:

 

(1) the sum of:
(a) Term SOFR and (b) the related Benchmark Replacement Adjustment;

 

(2) the sum of:
(a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;

 

(3) the sum of:
(a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for
the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation
of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any
evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark
for dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment;

 

provided that,
in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes
such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided further that,
notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon the occurrence of a Term SOFR Transition
Event, and the delivery of a Term SOFR Notice, on the applicable Benchmark Replacement Date the “Benchmark Replacement”
shall revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment,
as set forth in clause (1) of this definition (subject to the first proviso above).

 

If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the
Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

 

“Benchmark
Replacement Adjustment” shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted
Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:

 

(1) for purposes
of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in
the order below that can be determined by the Administrative Agent:

 

(a) the
spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value
or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended
by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for
the applicable Corresponding Tenor;

 

(b) the
spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first
set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions
to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and

 

    7

     

    

 

(2) for purposes
of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating
or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative
Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation
of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark
with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement
Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating
or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement
for dollar-denominated syndicated credit facilities;

 

provided that,
in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such
Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion.

 

“Benchmark
Replacement Conforming Changes” shall mean, with respect to any Benchmark Replacement, any technical, administrative
or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business
Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of
interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability
of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides in its
reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit
the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative
Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent
determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration
as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other
Loan Documents).

 

“Benchmark
Replacement Date” shall mean the earliest to occur of the following events with respect to the then-current Benchmark:

 

(1) in the case
of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of
the public statement or publication of information referenced therein and (b) the date on which the administrator of such
Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available
Tenors of such Benchmark (or such component thereof);

 

(2) in the case
of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein;

 

    8

     

    

 

(3) in the case
of a Term SOFR Transition Event, the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Lenders
and the Borrower pursuant to Section 2.14(d); or

 

(4) in the case
of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the
Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (Local Time) on the fifth (5th) Business Day
after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in
Election from Lenders comprising the Required Lenders.

 

For the avoidance
of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the
Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference
Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the
case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth
therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation
thereof).

 

“Benchmark
Transition Event” shall mean the occurrence of one or more of the following events with respect to the then-current
Benchmark:

 

(1) a public
statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used
in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such
Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

 

(2) a public
statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over
the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for
such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator
for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or
will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide any
Available Tenor of such Benchmark (or such component thereof); or

 

(3) a public
statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof)
are no longer representative.

 

For the avoidance
of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public
statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such
Benchmark (or the published component used in the calculation thereof).

 

    9

     

    

 

“Benchmark
Unavailability Period” shall mean the period (if any) (x) beginning at the time that a Benchmark Replacement Date
pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced
the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.14 and (y) ending
at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan
Document in accordance with Section 2.14.

 

“Beneficial
Ownership Certification” shall mean a certification regarding beneficial ownership or control as required by the Beneficial
Ownership Regulation.

 

“Beneficial
Ownership Regulation” shall mean 31 C.F.R. § 1010.230.

 

“Benefit Plan”
shall mean any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a
 “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for
purposes of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets
of any such “employee benefit plan” or “plan”.

 

“BHC Act Affiliate”
of a party shall mean an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C.
1841(k)) of such party.

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United States of America, or any successor thereto.

 

“Borrower”
shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

“Borrowing”
shall mean a group of Revolver Loans of a single Type and, in the case of Eurodollar Loans, as to which a single Interest Period
is in effect.

 

“Borrowing
Base” shall mean at any time of calculation, the sum of the following as set forth (other than with respect to clause (e))
in the most recently delivered Borrowing Base Certificate:

 

(a)           the
product of (i) the face amount of Eligible Credit Card Receivables multiplied by (ii) ninety percent (90%); plus

 

(b)           the
product of (i) the Cost of Eligible Inventory, multiplied by (ii) (A) during the period from January 1
through September 30 of each year, ninety percent (90%) and (B) during the period from October 1 through December 31
of each year, ninety-two and a half percent (92.5%), multiplied by (iii) the Appraised Value Percentage of such Inventory;
plus

 

    10

     

    

 

(c)           with
respect to any Eligible Letter of Credit, the product of (i) the Cost of the Inventory supported by such Eligible Letter of
Credit, multiplied by (ii) (A) during the period from January 1 through September 30 of each year, ninety
percent (90%) and (B) during the period from October 1 through December 31 of each year, ninety-two and a half percent
(92.5%), multiplied by (iii) the Appraised Value Percentage of such Inventory; minus

 

(d)           the
Availability Reserve.

 

“Borrowing
Base Certificate” shall mean a certificate in the form of Exhibit F, by which the Borrower certifies calculation
of the Borrowing Base in accordance with Section 5.12.

 

“Borrowing
Base Collateral” shall mean Collateral consisting of Credit Card Receivables, Eligible Letters of Credit and Inventory.

 

“Borrowing
Request” shall mean a request by the Borrower in accordance with the terms of Section 2.03.

 

“Budget”
shall have the meaning assigned to such term in Section 5.04(f).

 

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

 

“Capital Expenditures”
shall mean, in respect of any period, the aggregate of all expenditures incurred by the Borrower and the Subsidiaries during such
period that, in accordance with GAAP, are required to be classified as capital expenditures, including Capital Lease Obligations
incurred, provided, however, that Capital Expenditures for the Borrower and the Subsidiaries shall not include:

 

(a)           expenditures
of proceeds of insurance settlements, condemnation awards and other settlements in respect of lost, destroyed, damaged or condemned
assets, equipment or other property to the extent such expenditures are made to replace or repair such lost, destroyed, damaged
or condemned assets, equipment or other property or otherwise to acquire, maintain, develop, construct, improve, upgrade or repair
assets or properties useful in the business of the Borrower and the Subsidiaries within twelve (12) months of receipt of such
proceeds,

 

(b)           expenditures
that are accounted for as capital expenditures of such Person and that actually have been paid for by a third party (other than
the Borrower or any Subsidiary thereof) and for which neither the Borrower nor any Subsidiary has provided or is required to provide
or incur, directly or indirectly, any consideration or obligation to such third party or any other Person (whether before, during
or after such period, other than the payment of rent),

 

(c)           the
purchase price of equipment or property purchased during such period to the extent the consideration therefor consists of any combination
of (x) used or surplus equipment or property traded in at the time of such purchase and (y) the proceeds of a reasonably
concurrent sale of used or surplus equipment or property, in each case, in the ordinary course of business,

 

    11

     

    

 

(d)           expenditures
that are accounted for as capital expenditures in connection with transactions constituting Permitted Business Acquisitions, or

 

(e)           the
interest component of any Capital Lease Obligation.

 

“Capital Lease
Obligations” shall mean the obligations of any Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified
and accounted for as capital leases or financing leases on a balance sheet of such Person under GAAP and, for purposes hereof,
the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.

 

“Cases”
shall have the meaning assigned such terms in the recitals to this Agreement.

 

“Cash Collateral”
shall mean cash and any interest or other income earned thereon, or deposit account balances, and, with respect to LC Obligations
only, any other credit support satisfactory to the applicable Issuing Bank, in each case that are delivered to the Administrative
Agent to Cash Collateralize any Obligation.

 

“Cash Collateralize”
shall mean the pledge and deposit with or the delivery of Cash Collateral to the Administrative Agent, as security for the payment
of any Obligation, in an amount equal to the percentage of such outstanding Obligations as is required by the context herein.
 “Cash Collateralization” has a correlative meaning.

 

“Cash Dominion
Trigger Period” shall mean the period (a) commencing on the date that (i) Availability shall be less than the
greater of (A) $20.0 million and (B) 20% of the Line Cap, in either case for two (2) consecutive Business Days,
(ii) Availability shall be less than $15.0 million, or (iii) an Event of Default shall have occurred, and (b) continuing
until, during each of the preceding sixty (60) consecutive days, (x) Availability shall have been greater than the greater
of (A) $20.0 million and (B) 20% of the Line Cap and (y) no Event of Default shall have existed. For all purposes
hereunder, a “Cash Dominion Trigger Period” shall be deemed to exist at all times during the Initial Cash Dominion
Trigger Period.

 

“Cash Management
Obligations” shall mean obligations owed by the Borrower or any Subsidiary in respect of any overdraft and related liabilities
arising from treasury and treasury management services, Cash Management Services, credit cards, “p-cards” or any automated
clearing house transfer of funds.

 

“Cash Management
Services” any services provided from time to time by any Lender or any of its Affiliates (or any Person who at the time
such arrangement was entered into was a Lender or an Affiliate thereof) to the Borrower or any Subsidiary in connection with operating,
collections, payroll, trust, or other depository or disbursement accounts or similar cash management arrangements, including automated
clearinghouse, e-Payables, electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information
reporting, lockbox and stop payment services.

 

    12

     

    

 

“Casualty
Event” shall mean any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent
domain or by condemnation or similar proceeding of, any Property of the Borrower or any of its Subsidiaries.

 

“CBFR”
shall mean the Prime Rate; provided that the CBFR shall never be less than the Adjusted One Month LIBOR Rate on such day
(or if such day is not a Business Day, the immediately preceding Business Day). Any change in the CBFR due to a change in the Prime
Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of such change in the Prime
Rate or the Adjusted One Month LIBOR Rate, respectively.

 

“CBFR Borrowing”
shall mean a Borrowing comprised of CBFR Loans.

 

“CBFR Loan”
shall mean any Revolver Loan bearing interest at a rate determined by reference to the CBFR in accordance with the provisions of
Article II.

 

“Change in
Control” shall mean:

 

(a)           except
as otherwise permitted by Section 6.05(b), the acquisition of record ownership or direct beneficial ownership (i.e.,
excluding indirect beneficial ownership through intermediate entities by any Person which is the subject of clause (c) below)
by any Person other than Parent (or another Parent Entity that has become a Loan Party) of any Equity Interests in Intermediate
Holdings, such that after giving effect thereto Parent (or another Parent Entity that has become a Loan Party) shall cease to beneficially
own and control 100% of the Equity Interests of Intermediate Holdings, or

 

(b)           the
acquisition of record ownership or direct beneficial ownership (i.e., excluding indirect beneficial ownership through intermediate
entities by any Person which is the subject of clause (c) below) by any Person other than Intermediate Holdings
(or another Parent Entity that is or has become a Loan Party) of any Equity Interests in the Borrower, such that after giving effect
thereto Intermediate Holdings (or another Parent Entity that is or has become a Loan Party) shall cease to beneficially own and
control 100% of the Equity Interests of the Borrower,

 

(c)           the
acquisition of beneficial ownership, directly or indirectly, by any Person or group (within the meaning of the Exchange Act and
the rules of the SEC thereunder as in effect on the date hereof), other than Osmium/Tensile and any employee benefit plan
and/or Person acting as a trustee, agent or other fiduciary or administrator in respect thereof, of Equity Interests in Parent
representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests in
Parent; or

 

(d)           a
 “Change in Control” (or comparable event) as defined in the Term Loan Agreement.

 

“Change in
Law” shall mean (a) the adoption of any law, rule or regulation after the Closing Date, (b) any change
in law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Closing
Date or (c) compliance by any Lender (or, for purposes of Section 2.15(b), by any Lending Office of such Lender
or by such Lender’s holding company, if any) with any written request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the Closing Date; provided that, notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines,
requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests,
rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant
to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued
or implemented.

 

    13

     

    

 

“Charges”
shall have the meaning assigned to such term in Section 9.09.

 

“Chattel Paper”
shall have the meaning set forth in Article 9 of the UCC.

 

“Claims”
shall mean all claims, liabilities, obligations, losses, damages, penalties, judgments, proceedings, interests, costs and expenses
of any kind (including remedial response costs, reasonable attorneys’ fees) at any time (including after Payment in Full
of the Obligations, resignation or replacement of the Administrative Agent or replacement of any Lender) incurred by any Indemnitee
or asserted against any Indemnitee by any Loan Party or other Person, in any way relating to (a) any Loans, Letters of Credit,
Loan Documents, or the use thereof or transactions relating thereto, (b) any action taken or omitted to be taken by an Indemnitee
in connection with any Loan Documents, (c) the existence or perfection of any Liens, or realization upon any Collateral, (d) exercise
of any rights or remedies under any Loan Documents or Applicable Law, or (e) failure by any Loan Party to perform or observe
any terms of any Loan Document, in each case including all costs and expenses relating to any investigation, litigation, arbitration
or other proceeding (including an Insolvency Proceeding or appellate proceedings), whether or not the applicable Indemnitee is
a party thereto.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolver
Loans, Overadvance Loans or Protective Advances.

 

“Closing Date”
shall mean December 31, 2020.

 

“Closing Fee”
shall have the meaning assigned to such term in Section 2.12(d).

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Collateral”
shall mean any and all assets subject or purported to be subject to a Lien pursuant to any Security Document, including all ABL
Priority Collateral and Term Loan Priority Collateral.

 

“Collateral
Agreement” shall mean the Guarantee and Collateral Agreement dated as of the Closing Date, among Holdings, the Borrower,
each Subsidiary Guarantor and the Administrative Agent.

 

“Collateral
Deposit Account” shall have the meaning assigned to it in Section 5.12(d)(iv).

 

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“Commitment
Letter” shall mean that certain Commitment Letter dated November 2, 2020 by and among the Borrower, J.P. Morgan,
Wells Fargo Bank, N.A. and Bank of America, N.A.

 

“Commitment
Revolver Termination Date” shall mean the earliest to occur of (a) the Revolver Termination Date; (b) the date
on which the Borrower terminates the Revolver Commitments pursuant to Section 2.08; or (c) the date on which the
Revolver Commitments are terminated pursuant to Section 7.01.

 

“Commodity
Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), and any successor
statute.

 

“Confirmation
Order” shall mean the Order confirming the Revised Second Amended Joint Plan of Reorganization of Tuesday Morning Corporation,
et al., pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 1913] entered by the Bankruptcy Court on December 23,
2020.

 

“Consolidated
Cash Balance” shall mean, at any time of determination, the aggregate amount of unrestricted cash and cash equivalents
of the Loan Parties and their Subsidiaries, it being understood that Credit Card Receivables and any amounts on deposit in the
General Unsecured Cash Fund Deposit Account for the benefit of the holders of Allowed General Unsecured Claims, in each case, shall
be excluded from the calculation of Consolidated Cash Balance.

 

“Consolidated
Cash Balance Report” shall mean a report in form and substance reasonably satisfactory to the Administrative Agent prepared
by the Borrower setting forth with reasonable supporting detail the Consolidated Cash Balance as of the applicable date.

 

“Consolidated
Fixed Charge Coverage Ratio” shall mean the ratio, determined on a consolidated basis for the Borrower and its Subsidiaries
for the most recent four fiscal quarters period, of (a) EBITDAR for such period minus (i) Capital Expenditures (except
those financed with Indebtedness for borrowed money other than the Revolver Loans) paid in cash for such period and (ii) the
aggregate amount of federal, state, local and foreign income taxes paid or payable currently in cash for such period to (b) Consolidated
Fixed Charges paid or payable currently in cash for such period.

 

“Consolidated
Fixed Charges” shall mean, with respect to the Borrower and the Subsidiaries on a consolidated basis for any period,
the sum (without duplication) of (a) Interest Expense (but excluding, in any event (w) Transactions Costs and annual
administrative or other agency fees, (x) fees and expenses associated with Dispositions, Investments and any issuances
of Equity Interests or Indebtedness (in each case (A) not prohibited under this Agreement and (B) whether or not consummated)
and (y) amortization of deferred financing costs) paid or payable in cash for such period less any interest income
for such period received or (without duplication) to be received currently in cash, (b) regularly scheduled principal payments
on funded Indebtedness paid or payable currently in cash for such period (other than payments made among the Loan Parties (other
than Holdings)), (c) all cash dividends or other distributions paid by the Borrower or any Subsidiary during such period to
any Person other than the Borrower or a Subsidiary Guarantor (excluding items eliminated in consolidation) on any series of preferred
stock or any Refunding Capital Stock of the Borrower or a Subsidiary during such period, (d) all cash dividends or other distributions
paid by the Borrower or any Subsidiary paid to any Person other than the Borrower or any Subsidiary (excluding items eliminated
in consolidation) on any series of Equity Interests of the Borrower or a Subsidiary that is not Qualified Capital Stock during
such period, (e) Restricted Payments made under clauses (b), (d) and (h) of Section 6.06
made in cash during any fiscal period (other than Tax Distributions) and (f) Rent Expense for such period.

 

    15

     

    

 

“Consolidated
Net Income” shall mean, with respect to any Person for any period, the aggregate of the Net Income of such Person and
its Subsidiaries for such period, on a consolidated basis; provided, however, that, without duplication,

 

(a)           any
net after-tax (A) extraordinary, (B) nonrecurring or (C) unusual gains or losses or income or expenses (less all
fees and expenses relating thereto) including, without limitation, any severance expenses, and fees, expenses or charges related
to any offering of Equity Interests of any Parent Entity or the Borrower, any Investment or Indebtedness permitted to be incurred
hereunder or refinancings thereof (in each case, whether or not successful), including any such fees, expenses or charges related
to the Transactions (including any Transaction Costs), in each case, shall be excluded,

 

(b)           any
net after-tax income or loss from discontinued operations and any net after-tax gain or loss on disposal of discontinued operations
shall be excluded,

 

(c)           any
net after-tax gain or loss (less all fees and expenses or charges relating thereto) attributable to business dispositions or asset
dispositions other than in the ordinary course of business (as determined in good faith by the board of directors (or equivalent
governing body) of the Borrower) shall be excluded,

 

(d)           any
net after-tax income or loss (less all fees and expenses or charges relating thereto) attributable to the early extinguishment
of indebtedness shall be excluded,

 

(e)           the
Net Income for such period of any Person that is not a subsidiary of such Person, or that is accounted for by the equity method
of accounting, shall be included only to the extent of the amount of dividends or distributions or other payments (including any
ordinary course dividend, distribution or other payment) paid in cash (or to the extent converted into cash) to the referent Person
or a subsidiary thereof in respect of such period,

 

(f)            consolidated
Net Income for such period shall not include the cumulative effect of a change in accounting principles during such period, and

 

(g)           any
increase in amortization or depreciation or any non-cash charges resulting from any amortization, write-up, write-down or write-off
of assets with respect to assets revalued upon the application of purchase accounting (including tangible and intangible assets,
goodwill, deferred financing costs and inventory (including any adjustment reflected in the “cost of goods sold” or
similar line item of the financial statements)) in connection with the Transactions, Permitted Business Acquisitions or any merger,
consolidation or similar transaction not prohibited hereunder.

 

“Contractual
Obligation” shall mean, as applied to any Person, any provision of any security issued by that Person or of any indenture,
mortgage, deed of trust, contract, written undertaking, agreement or other instrument to which that Person is a party or by which
it or any of its properties is bound or to which it or any of its properties is subject.

 

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

 

“Control Agreement”
shall mean an agreement that grants the Administrative Agent “control” within the meaning of Section 9-104 or
Section 9-106 (as applicable) of the UCC in effect in the applicable jurisdiction of the applicable Deposit Account, commodity
account or securities account, in form and substance reasonably satisfactory to the Administrative Agent.

 

“Corresponding
Tenor” with respect to any Available Tenor shall mean, as applicable, either a tenor (including overnight) or an interest
payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

 

“Cost”
shall mean the lower of cost or market value of Inventory, determined in accordance with the accounting policies used in the preparation
of the Borrower’s audited financial statements (pursuant to which the retail method of accounting is utilized for substantially
all merchandise Inventories), which policies are in effect on the Closing Date. “Cost” does not include inventory capitalization
costs or other non-purchase price charges (such as freight) used in the Borrower’s calculation of cost of goods sold.

 

“Covered Entity”
shall mean any of the following:

 

		(i)	a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

		(ii)	a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

		(iii)	a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Covered Party”
shall have the meaning assigned to it in Section 9.21.

 

“Credit Card
Receivables” shall mean each “Account” (as defined in the UCC) and “payment intangible” (as defined
in the UCC) together with all income, payments and proceeds thereof, owed by a major credit or debit card issuer (including Visa,
Mastercard, Discover and American Express and such other issuers approved by the Administrative Agent) to the Borrower or a Subsidiary
Guarantor resulting from charges by a customer of the Borrower or a Subsidiary Guarantor on credit or debit cards issued by such
issuer in connection with the sale of goods by the Borrower or a Subsidiary Guarantor, or services performed by the Borrower or
a Subsidiary Guarantor, in each case in the ordinary course of its business.

 

“Credit Extension”
shall mean any Borrowing and any issuance, amendment, extension or renewal of a Letter of Credit.

 

    17

     

    

 

“Customs Broker
Agreement” shall mean an agreement, in form and substance reasonably satisfactory to the Administrative Agent, among
the Borrower, a customs broker or other carrier, and the Administrative Agent, in which the customs broker or other carrier acknowledges
that it has control over and holds the documents evidencing ownership of the subject Inventory for the benefit of the Administrative
Agent and agrees, upon notice from the Administrative Agent, to hold and dispose of the subject Inventory solely as directed by
the Administrative Agent.

 

“Daily Simple
SOFR” shall mean, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established
by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental
Body for determining “Daily Simple SOFR” for business loans; provided, that if the Administrative Agent decides that
any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish
another convention in its reasonable discretion.

 

“Default”
shall mean any event or condition that upon notice, lapse of time or both would constitute an Event of Default.

 

“Default Rate”
shall have the meaning assigned to such term in Section 2.13(d).

 

“Default Right”
has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1,
as applicable.

 

“Defaulting
Lender” shall mean any Lender that (a) has failed to perform any funding obligations (including its obligation to
fund any portion of participations in Letters of Credit) hereunder, and such failure is not cured within two (2) Business
Days of the date of the funding obligation; (b) has notified the Administrative Agent or the Borrower that such Lender does
not intend to comply with its funding obligations hereunder or generally under other agreements to which it commits to extend credit
or has made a public statement to that effect; (c) has failed, within three (3) Business Days following written request
by the Administrative Agent or the Borrower, to confirm in a manner reasonably satisfactory to the Administrative Agent and the
Borrower that such Lender will comply with its funding obligations hereunder (provided that such Lender shall cease to be
a Defaulting Lender pursuant to this clause (c) upon receipt by the Administrative Agent of such confirmation);
(d) has, or has a direct or indirect parent company that has, become the subject of an Insolvency Proceeding or taken any
action in furtherance thereof, including, in the case of any Lender, the Federal Deposit Insurance Corporation or any other state
or federal regulatory authority acting in such capacity; provided, however, that a Lender shall not be a Defaulting
Lender solely by virtue of a Governmental Authority’s ownership of any equity interest in such Lender or parent company so
long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of the courts within
the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental
Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender or (e) it or its Lender
Parent has become the subject of a Bail-in Action.

 

“Deposit Account”
shall have the meaning assigned thereto in Article 9 of the UCC.

 

“DIP ABL Credit
Agreement” shall have the meaning assigned such terms in the recitals to this Agreement.

 

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“DIP RE Credit
Agreement” shall mean that certain Senior Secured Super Priority Debtor-In-Possession Delayed Draw Term Loan Agreement
dated as of July 10, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time
prior to the Closing Date), among the Borrower, Holdings, the other guarantors party thereto, the lenders party thereto, and Franchise
Group, Inc., as administrative agent.

 

“Disposition”
shall mean any sale, transfer, lease or other disposition (whether effected pursuant to a Division or otherwise) of assets. “Dispose”
shall have a meaning correlative thereto.

 

“Dividing
Person” has the meaning assigned to it in the definition of “Division”.

 

“Division”
shall mean the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among
two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include
the Dividing Person and pursuant to which the Dividing Person may or may not survive.

 

“Dollars”
or “$” shall mean lawful money of the United States of America.

 

“Dominion
Account” shall mean the Borrower’s special concentration Deposit Account (account no.: xxxxxx7366 and any successor
account) held at J.P. Morgan, over which the Administrative Agent has exclusive control for withdrawal purposes pursuant to
the terms and provisions of this Agreement and the other Loan Documents.

 

“Early Opt-in
Election” shall mean, if the then-current Benchmark is the LIBO Rate, the occurrence of:

 

		(1)	a notification by the Administrative Agent to (or the request by
the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding U.S.
dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based
rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities
are identified in such notice and are publicly available for review), and

 

		(2)	the joint election by the Administrative Agent and the Borrower to
trigger a fallback from LIBO Rate and the provision by the Administrative Agent of written notice of such election to the Lenders.

 

“EBITDA”
shall mean, with respect to the Borrower and the Subsidiaries on a consolidated basis for any period, the Consolidated Net Income
of the Borrower and the Subsidiaries for such period plus the sum of (a) (in each case without duplication and to the
extent the respective amounts described in subclauses (i) through (xv) of this clause (a) reduced
such Consolidated Net Income for the respective period for which EBITDA is being determined):

 

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(i)            provision
for Taxes based on income, profits or capital of the Borrower and the Subsidiaries for such period, including, without limitation,
state, foreign, franchise and similar taxes, and Tax Distributions made by the Borrower during such period,

 

(ii)           Interest
Expense of the Borrower and the Subsidiaries for such period,

 

(iii)          depreciation
and amortization expenses of the Borrower and the Subsidiaries for such period,

 

(iv)          without
duplication of amounts added back pursuant to clause (xv) below, business optimization expenses and restructuring
charges and reserves (which, for the avoidance of doubt, shall include retention, severance, systems establishment costs, excess
pension charges, contract termination costs (including future lease commitments) and costs to consolidate facilities and relocate
employees); provided that with respect to each business optimization expense or restructuring charge or reserve, the Borrower
shall have delivered to the Administrative Agent a certificate of a Responsible Officer of the Borrower specifying and quantifying
such expense, charge or reserve and stating that such expense, charge or reserve is a business optimization expense or restructuring
charge or reserve, as the case may be,

 

(v)           without
duplication of amounts added back pursuant to clause (iv) above, with respect to each new store opened by the
Borrower or any of its Subsidiaries, all net store operating losses relating thereto for a period of twelve (12) months following
the opening of such new store,

 

(vi)          Transaction
Costs and fees, costs and expenses incurred directly in connection with any transaction, including any Investment, equity issuance,
debt issuance, refinancing or Disposition (in each case, (A) not prohibited under this Agreement and (B) whether or not
consummated) during such period; provided that the aggregate amount added to EBITDA for any period pursuant to this clause (vi) shall
not exceed $5.0 million,

 

(vii)         any
other non-cash charges reducing Consolidated Net Income (excluding any such non-cash charge to the extent it represents an accrual
of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid in a prior period
not included in the calculation),

 

(viii)        [reserved];

 

(ix)          to
the extent reimbursable by third parties pursuant to indemnification provisions, other transaction fees, costs and expenses, provided
that the Borrower in good faith expects to receive reimbursement for such fees, costs and expenses within the next four (4) fiscal
quarters,

 

(x)           [reserved],

 

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(xi)          to
the extent covered by insurance under which the insurer has been properly notified and has not denied or contested coverage, expenses
with respect to liability events or casualty events,

 

(xii)         any
unrealized losses in the fair market value of any Swap Agreements,

 

(xiii)        (A) any
charges or expenses incurred pursuant to any management equity plan or stock option plan or any other management or employee benefit
plan or agreement, pension plan, any stock subscription or shareholder agreement or any distributor equity plan or agreement and
(B) any charges, costs, expenses, accruals or reserves in connection with the rollover, acceleration or payout of equity interests
held by management, in each case under this clause (B), to the extent such charges, costs, expenses, accruals or reserves
are funded with the net cash proceeds of any equity issuance,

 

(xiv)        any
net unrealized losses resulting from currency translation losses related to currency remeasurements of Indebtedness (including
any net loss resulting from Swap Agreements for currency exchange risk) and any unrealized foreign currency translation losses,

 

(xv)         restructuring
costs and any consulting or professional fees incurred in connection with the Cases on or prior to the first anniversary of the
Closing Date in an aggregate amount not to exceed $10.0 million, and

 

(xvi)        the
proceeds of business interruption insurance, in an amount not to exceed the earnings for the applicable period that such proceeds
are intended to replace; provided that the Borrower in good faith expects to receive such business interruption proceeds
within the next four (4) fiscal quarters,

 

minus (b) (without duplication
and to the extent the amounts described in this clause (b) increased such Consolidated Net Income for the respective
period for which EBITDA is being determined) (i) income tax credits and Restricted Payments pursuant to Section 6.06(a)(i),
(ii) all non-cash gains increasing Consolidated Net Income of the Borrower and the Subsidiaries for such period (but excluding
any such gains (x) in respect of which cash or other assets were received in a prior period or will be received in a future
period or (y) which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges in any prior period),
(iii) any unrealized gains in the fair market value of any Swap Agreements and (iv) any net unrealized gains resulting
from currency translation gains related to currency remeasurements of Indebtedness (including any net gain resulting from Swap
Agreements for currency exchange risk) and any unrealized foreign currency translation gains, minus (c) (without duplication)
(i) the amount added back to EBITDA pursuant to clause (a)(ix) above to the extent such transaction fees,
costs and expenses were not reimbursed within the time period required by such clause (which amount shall be deducted in the
next succeeding fiscal quarter following expiration of the applicable time period) and (ii) the amount added back to EBITDA
pursuant to clause (a)(xv) to the extent such business interruption proceeds were not received within the time
period required by such clause (which amount shall be deducted in the next succeeding fiscal quarter following expiration
of the applicable time period).

 

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Notwithstanding anything to the contrary
herein, the aggregate amount added back to EBITDA pursuant to clauses (a)(iv) and (a)(v) of the definition
thereof and in respect of any pro forma adjustments made pursuant to the definition of “Pro Forma Basis” with respect
to any applicable four (4) fiscal quarter period shall not exceed 20% of the EBITDA of the Borrower and the Subsidiaries for
such four (4) fiscal quarter period (calculated prior to giving effect to any add back pursuant to clauses (a)(iv) and
(a)(v) of the definition of “EBITDA” or any pro forma adjustments pursuant to the definition of “Pro
Forma Basis”). This paragraph shall not apply with respect to clause (a)(v) above for purposes of calculating
the Consolidated Fixed Charge Coverage Ratio.

 

“EBITDAR”
shall mean, for any period, (a) EBITDA for such period plus (b) to the extent deducted in determining EBITDA for
such period, Rent Expense.

 

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

 

“EEA Member
Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein and Norway.

 

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

 

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

 

“Electronic
System” shall mean any electronic system, including e-mail, e-fax, web portal access for the Borrower and any other Internet
or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent or any Issuing
Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other
security system.

 

“Eligible
Assignee” shall mean (i) any Lender, any Affiliate of any Lender and any Related Fund (any two or more Related Funds
being treated as a single Eligible Assignee for all purposes hereof) and (ii) any commercial bank, insurance company, investment
or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities
Act) and which extends credit or buys loans.

 

    22

     

    

 

“Eligible
Credit Card Receivables” shall mean, at the time of any determination thereof, each Credit Card Receivable that satisfies
the following criteria at the time of creation and continues to meet the same at the time of such determination: such Credit Card
Receivable (i) has been earned by performance and represents the bona fide amounts due to a Loan Party from a credit
card payment processor and/or credit card issuer, and in each case originated in the ordinary course of business of such Loan Party,
(ii) unless owed by Visa, Mastercard, American Express Company or Discover, is acceptable to the Administrative Agent in its
Permitted Discretion and (iii) in each case, is not ineligible for inclusion in the calculation of the Borrowing Base pursuant
to any of clauses (a) through (k) below. Without limiting the foregoing, to qualify as an Eligible
Credit Card Receivable, a Credit Card Receivable shall indicate no Person other than a Loan Party as payee or remittance party.
In determining the amount to be so included, the face amount of a Credit Card Receivable shall be reduced by, without duplication,
to the extent not reflected in such face amount or otherwise excluded below, (i) the amount of all accrued and actual discounts,
claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including
any amount that a Loan Party may be obligated to rebate to a customer, a credit card payment processor, or credit card issuer pursuant
to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect
of such Credit Card Receivable but not yet applied by the Loan Parties to reduce the amount of such Credit Card Receivable. Any
Credit Card Receivables meeting the foregoing criteria shall be deemed Eligible Credit Card Receivables but only as long as such
Credit Card Receivable is not included within any of the following categories, in which case such Credit Card Receivable shall
not constitute an Eligible Credit Card Receivable:

 

(a)           Credit
Card Receivables which do not constitute an Account or “payment intangible” (as defined in the UCC);

 

(b)           Credit
Card Receivables that have been outstanding for more than five (5) Business Days from the date of sale;

 

(c)           Credit
Card Receivables with respect to which a Loan Party does not have good, valid and marketable title, free and clear of any Lien
(other than Liens permitted by Section 6.02(b)(iii); provided that any such Liens shall be subject to the Intercreditor
Agreement and junior to the Liens granted to the Administrative Agent on such Credit Card Receivables);

 

(d)           Credit
Card Receivables that are not subject to a first priority security interest in favor of the Administrative Agent (it being the
intent that chargebacks in the ordinary course by such processors shall not be deemed violative of this clause);

 

(e)           Credit
Card Receivables which are disputed, are with recourse, or with respect to which a claim, counterclaim, offset or chargeback has
been asserted (to the extent of such claim, counterclaim, offset or chargeback);

 

(f)            Credit
Card Receivables as to which the processor has the right under certain circumstances to require a Loan Party to repurchase the
Credit Card Receivables from such credit card processor;

 

(g)           Credit
Card Receivables due from an issuer or payment processor of the applicable credit card which is the subject of any proceeding under
the Bankruptcy Code;

 

(h)           Credit
Card Receivables which are not a valid, legally enforceable obligation of the applicable issuer with respect thereto;

 

    23

     

    

 

(i)            Credit
Card Receivables which do not conform to all representations, warranties or other provisions in the Loan Documents relating to
Credit Card Receivables;

 

(j)            Credit
Card Receivables which are evidenced by “chattel paper” or an “instrument” of any kind unless such “chattel
paper” or “instrument” is in the possession of the Administrative Agent, and to the extent necessary or appropriate,
endorsed to the Administrative Agent; or

 

(k)           Credit
Card Receivables which the Administrative Agent determines in its Permitted Discretion to be uncertain of collection.

 

“Eligible
In-Transit Inventory” shall mean, as of any date of determination thereof, Inventory:

 

(a)           for
which full payment has been delivered to the seller of such Inventory and evidence of such payment has been received by the Administrative
Agent;

 

(b)           which
has been shipped from (i) a foreign location for receipt by the Borrower or a Subsidiary Guarantor within thirty (30) days
of the date of shipment or (ii) a domestic location for receipt by the Borrower or a Subsidiary Guarantor within fifteen
(15) days of the date of shipment, but, in either case, which has not yet been delivered to the Borrower or a Subsidiary
Guarantor;

 

(c)           for
which (i) the purchase order is in the name of the Borrower or a Subsidiary Guarantor and title has passed to the Borrower
or a Subsidiary Guarantor or (ii) the document of title reflects the Borrower or a Subsidiary Guarantor as consignee or,
if requested by the Administrative Agent after the occurrence and during the continuance of a Default or an Event of Default,
names the Administrative Agent as consignee;

 

(d)           in
the case of any Inventory described in clause (b)(i) above, as to which the Administrative Agent has received
a Customs Broker Agreement;

 

(e)           which
is insured in compliance with Section 5.02 hereof; and

 

(f)            which
does not qualify as Eligible Inventory solely because it (i) is not located in the United States of America (excluding territories
or possessions of the United States) or (ii) is located at a location that is not owned or leased by the Borrower or a Subsidiary
Guarantor, but which otherwise constitutes Eligible Inventory.

 

“Eligible
Inventory” shall mean, as of the date of determination thereof, without duplication, (i) Eligible In-Transit Inventory,
and (ii) all items of Inventory of the Borrower or a Subsidiary Guarantor that are finished goods, merchantable and readily
saleable to the public in the ordinary course deemed by the Administrative Agent in its Permitted Discretion to be eligible for
inclusion in the calculation of the Borrowing Base, in each case that, except as otherwise agreed by the Administrative Agent,
complies with each of the representations and warranties respecting Inventory made by the Borrower or a Subsidiary Guarantor in
the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the criteria set forth below. The following
items of Inventory shall not be included in Eligible Inventory:

 

    24

     

    

 

(a)            Inventory
that is not solely owned by the Borrower or a Subsidiary Guarantor or the Borrower or a Subsidiary Guarantor does not have good
and valid title thereto;

 

(b)            Inventory
that is leased by, or is on consignment to, the Borrower or a Subsidiary Guarantor, or that is consigned by the Borrower or a Subsidiary
Guarantor to a Person which is not a Loan Party;

 

(c)            Inventory
(other than Eligible In-Transit Inventory) that is not located in the United States of America (excluding territories or possessions
of the United States);

 

(d)            Inventory
(other than Eligible In-Transit Inventory) that (i) is not located at a location that is owned or leased by the Borrower or
a Subsidiary Guarantor or a “pool point” in the Loan Parties’ distribution network or (ii) is located at
a distribution center or warehouse leased by the Borrower or a Subsidiary Guarantor with Inventory having a value in excess of
$1,000,000 at any such location, except in the case of this clause (ii) to the extent that the Borrower or a Subsidiary
Guarantor has furnished the Administrative Agent with (A) any UCC financing statements or other documents that the Administrative
Agent may determine to be necessary to perfect its security interest in such Inventory at such location and (B) (x) a
Lien Waiver executed by the Person owning any such location on terms reasonably acceptable to the Administrative Agent or (C) if
such location is in a landlord lien-priming state, a Rent and Charges Reserve has been imposed;

 

(e)            Inventory
that is comprised of goods which (i) are damaged, defective, “seconds,” or otherwise unmerchantable, (ii) are
to be returned to the vendor, (iii) are obsolete or slow moving, or custom items, work-in-process, raw materials, or that
constitute spare parts, promotional, marketing, packaging and shipping materials or supplies used or consumed in the Borrower’s
or a Subsidiary Guarantor’s business, (iv) are seasonal in nature and which have been packed away for sale in a subsequent
season, (v) are not in compliance in all material respects with all standards imposed by any Governmental Authority having
regulatory authority over such Inventory, its use or sale, or (vi) are bill and hold goods;

 

(f)             Inventory
that is not subject to a perfected first priority security interest in favor of the Administrative Agent (other than landlords’
Liens permitted pursuant to clause (e) of Section 6.02 as to which either a Lien Waiver has been delivered
or a Rent and Charges Reserve has been imposed);

 

(g)            Inventory
that consists of samples, labels, bags, packaging, and other similar non-merchandise categories;

 

(h)            Inventory
that is not insured in compliance with the provisions of Section 5.02 hereof;

 

    25

     

    

 

(i)             Inventory
that has been sold but not yet delivered or as to which the Borrower or a Subsidiary Guarantor has accepted a deposit;

 

(j)             Inventory
that is subject to any licensing, patent, royalty, trademark, trade name or copyright agreement with any third party from which
the Borrower or any of its Subsidiaries has received notice of a dispute in respect of any such agreement unless the Administrative
Agent is reasonably satisfied that it may sell or otherwise Dispose of such Inventory without (i) infringing the rights of
such third party, (ii) violating any contract with such third party or (iii) incurring any liability with respect to
the payment of royalties other than royalties incurred in connection with the sale of such Inventory pursuant to the current licensing
agreement relating thereto; or

 

(k)            Inventory
acquired in a Permitted Business Acquisition, unless and until the Administrative Agent has completed or received an appraisal
of such Inventory from appraisers satisfactory to the Administrative Agent, establishes an Inventory advance rate and Inventory
Reserves (if applicable) therefor, and otherwise agrees that such Inventory shall be deemed Eligible Inventory, all of the results
of the foregoing to be reasonably satisfactory to the Agents.

 

“Eligible
Letter of Credit” shall mean, as of any date of determination thereof, a Letter of Credit which supports the purchase
of Inventory, (i) which Inventory does not constitute Eligible In-Transit Inventory and for which no documents of title have
then been issued, (ii) which Inventory, when completed, otherwise would constitute Eligible Inventory, (iii) which Letter
of Credit has an expiry within thirty (30) days of the date of initial issuance of such Letter of Credit, and (iv) which
Letter of Credit provides that it may be drawn only after the Inventory is completed and after documents of title have been issued
for such Inventory reflecting the Borrower, a Subsidiary Guarantor or the Administrative Agent as consignee of such Inventory.

 

“Enforcement
Action” shall mean any action to enforce any Obligations or Loan Documents or to exercise any rights or remedies relating
to any Collateral (whether by judicial action, self-help, notification of Account Debtors, exercise of setoff or recoupment, exercise
of any right to vote or act in a Loan Party’s Insolvency Proceeding, or otherwise), in each case solely to the extent permitted
by the Loan Documents.

 

“environment”
shall mean ambient and indoor air, surface water and groundwater (including potable water, navigable water and wetlands), the land
surface or subsurface strata, natural resources such as flora and fauna, the workplace or as otherwise defined in any Environmental
Law.

 

“Environmental
Laws” shall mean all laws (including common law), rules, regulations, codes, ordinances, orders, decrees or judgments,
promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the generation, management, Release or threatened Release of, or actual or alleged exposure to, any Hazardous
Materials or to occupational health and safety (to the extent relating to the environment or Hazardous Materials).

 

    26

     

    

 

“Equity Interests”
of any Person shall mean any and all shares, interests, participations or other equivalents of or interests in (however designated)
equity of such Person, including any preferred stock, any limited or general partnership interest and any limited liability company
membership interest and any and all warrants, rights or options to purchase or other rights to acquire any of the foregoing, but
excluding for the avoidance of doubt any Indebtedness convertible into or exchangeable for any of the foregoing (until so converted
or exchanged).

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended, or any successor statute and the rules and regulations
promulgated thereunder.

 

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

 

“ERISA Event”
shall mean (a) any Reportable Event; (b) the existence with respect to any Loan Party, any ERISA Affiliate or any Plan
of a non-exempt Prohibited Transaction; (c) the failure by any Plan to satisfy the minimum funding standards (within the meaning
of Section 412 of the Code or Section 302 of ERISA), applicable to such Plan, whether or not waived; (d) the filing
pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan, the failure to make by its due date a required installment under Section 430(j) of
the Code with respect to any Plan or the failure to make any required contribution to a Multiemployer Plan; (e) the receipt
by any Loan Party or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Plan or to appoint a trustee to administer any Plan under Section 4042 of ERISA; (f) the receipt by any Loan Party
or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Loan Party or any ERISA Affiliate of any
notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, Insolvent,
in Reorganization, or terminated (within the meaning of Section 4041A of ERISA); or (g) the failure by any Loan Party
or any ERISA Affiliate to pay when due (after expiration of any applicable grace period) any installment payment with respect to
Withdrawal Liability under Section 4201 of ERISA.

 

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

 

“Eurodollar
Borrowing” shall mean a Borrowing comprised of Eurodollar Loans.

 

“Eurodollar
Loan” shall mean any Revolver Loan bearing interest at a rate determined by reference to the Adjusted LIBO Rate in accordance
with the provisions of Article II.

 

“Event of
Default” shall have the meaning assigned to such term in Section 7.01.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time and any successor statute.

 

“Excluded
Assets” shall have the meaning assigned to such term in Section 5.09(h).

 

    27

     

    

 

“Excluded
Deposit Accounts” shall mean (a) Deposit Accounts used specifically, solely and exclusively for Tax and Trust Funds,
(b) any Term Loan Priority Collateral Account, (c) Deposit Accounts that do not have a daily balance at any time in excess
of $250,000; provided that the aggregate amount of funds in all Deposit Accounts excluded under this clause (c) shall not
exceed $1,000,000, and (d) the General Unsecured Cash Fund Deposit Account.

 

“Excluded
Subsidiary” shall mean (a) any Subsidiary that is prohibited by law, regulation or Contractual Obligation in existence
on the Closing Date and not entered into in contemplation of this Agreement from providing a Guarantee of the Obligations or that
would require a governmental (including regulatory) consent, approval, license or authorization in order to provide such Guarantee,
(b) any Subsidiary for which a Guarantee of the Obligations by such Subsidiary would result in material adverse tax consequences
as reasonably determined by the Borrower in consultation with the Administrative Agent, (c) Tuesday Morning Cares, a Texas
not-for profit entity, and (d) any Subsidiary to the extent that the burden or cost of obtaining a Guarantee of the Obligations
from such Subsidiary outweighs the benefit afforded thereby, as reasonably determined by the Administrative Agent and the Borrower;
provided that, in no event shall any Subsidiary that guarantees the Term Loan Obligations or any other Material Indebtedness
constitute an “Excluded Subsidiary”.

 

“Excluded
Swap Obligation” shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a
portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, as applicable,
such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation
or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of
such Guarantor’s failure to constitute an “eligible contract participant,” as defined in the Commodity Exchange
Act and the regulations thereunder, at the time the Guarantee of (or grant of such security interest by, as applicable) such Guarantor
becomes or would become effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing
more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap
Agreements for which such Guarantee or security interest is or becomes illegal.

 

“Excluded
Taxes” shall mean, with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any
payment to be made by or on account of any obligation of the Borrower hereunder, (a) income taxes imposed on (or measured
by) its net income (or franchise taxes imposed in lieu of net income taxes) by any jurisdiction under the laws of which such recipient
is organized or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office
is located or any other jurisdiction as a result of such recipient engaging in a trade or business in such jurisdiction for tax
purposes (other than engaging in a trade or business as a result of having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant
to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document), (b) any branch profits tax
or any similar tax that is imposed by any jurisdiction described in clause (a) above, (c) in the case of a Lender
making a Revolver Loan to the Borrower, any U.S. federal withholding tax that (x) is in effect under Applicable Law and would
apply to amounts payable hereunder to such Lender at the time such Lender becomes a party to such Revolver Loan to the Borrower
(or designates a new Lending Office) except to the extent that such Person (or its assignor, if any) was entitled, at the time
of designation of a new Lending Office (or assignment), to receive additional amounts from a Loan Party with respect to any U.S.
federal withholding tax pursuant to Section 2.17(a) or Section 2.17(c) or (y) is attributable
to such Lender’s failure to comply with Section 2.17(e) with respect to such Revolver Loan unless such failure
to comply with Section 2.17(e) is a result of a change in law after the date such Lender becomes a party to such
Revolver Loan to the Borrower (or designates a new Lending Office), (d) any interest, additions to taxes or penalties with
respect to the foregoing and (e) any withholding taxes imposed pursuant to FATCA.

 

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“Existing
Debt” shall mean the Indebtedness outstanding under the Prepetition Credit Agreement, the DIP ABL Credit Agreement and
the DIP RE Credit Agreement.

 

“Existing
Letters of Credit” shall mean the letters of credit issued (or deemed issued) under the DIP ABL Credit Agreement (including
any banker’s acceptances or other payment obligations arising therefrom) and outstanding as of the Closing Date and set forth
on Schedule 1.01(b).

 

“Fairness
Opinion” shall have the meaning assigned to such term in Section 6.07(b)(x).

 

“FATCA”
shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that
is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations
thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation,
rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities
and implementing such Sections of the Code.

 

“FCCR Test
Amount” shall have the meaning assigned to such term in Section 6.10.

 

“Federal Funds
Effective Rate” shall mean, for any day, the rate calculated
by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as shall
be set forth on the NYFRB’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as
the effective federal funds rate; provided that if the Federal Funds Effective Rate as so determined would be less than 1.50%,
such rate shall be deemed to be 1.50% for the purposes of this Agreement.

 

“Fee Letter”
shall mean that certain Fee Letter dated November 2, 2020 by and among the Borrower and the Administrative Agent.

 

“Financial
Officer” of any Person shall mean the Chief Financial Officer, principal accounting officer, Treasurer, Assistant Treasurer
or Controller of such Person.

 

“FIRREA”
shall mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended.

 

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“Flood Documentation”
shall mean, with respect to each Mortgaged Property located in the United States or any territory thereof, (i) a completed
 “life-of-loan” Federal Emergency Management Agency standard flood hazard determination (together with a notice about
Special Flood Hazard Area status and flood disaster assistance duly executed by the applicable Loan Party relating thereto), (ii) a
copy of, or a certificate as to coverage under, and a declaration page relating to, the insurance policies required by Section 5.02(b) hereof
and the applicable provisions of the Security Documents, each of which shall (A) be endorsed or otherwise amended to include
a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable), (B) name
the Administrative Agent, on behalf of the Secured Parties, as additional insured and loss payee/mortgagee, (C) identify the
address of each property located in a Special Flood Hazard Area, the applicable flood zone designation and the flood insurance
coverage and deductible relating thereto and (D) be otherwise in form and substance reasonably satisfactory to the Administrative
Agent and each Regulated Lender Entity and sufficient to comply with Flood Insurance Laws, and (iii) any other documents reasonably
requested by any Regulated Lender Entity to the extent such documents are required for compliance by such Regulated Lender Entity
with applicable Flood Insurance Laws.

 

“Flood Insurance
Laws” shall mean, collectively, (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any
successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue
thereto, (iii) the National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto
and related legislation, (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute
thereto and (v) the Biggert-Waters Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute
thereto.

 

“Floor”
shall mean the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification,
amendment or renewal of this Agreement or otherwise) with respect to the LIBO Rate.

 

“Foreign Benefit
Arrangement” shall mean any employee benefit arrangement mandated by non-U.S. law that is maintained or contributed to
by any Loan Party or any ERISA Affiliate.

 

“Foreign Lender”
shall mean any Lender that is not a U.S. Person.

 

“Foreign Plan”
shall mean each employee benefit plan (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA)
that is not subject to U.S. law and is maintained or contributed to by any Loan Party or any ERISA Affiliate.

 

“Foreign Plan
Event” shall mean, with respect to any Foreign Benefit Arrangement or Foreign Plan, (a) the failure to make or,
if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by Applicable
Law or by the terms of such Foreign Benefit Arrangement or Foreign Plan; (b) the failure to register or loss of good standing
with applicable regulatory authorities of any such Foreign Benefit Arrangement or Foreign Plan required to be registered; or (c) the
failure of any Foreign Benefit Arrangement or Foreign Plan to comply with any material provisions of Applicable Law and regulations
or with the material terms of such Foreign Benefit Arrangement or Foreign Plan.

 

“Foreign Subsidiary”
shall mean any Subsidiary that is incorporated or organized under the laws of any jurisdiction other than the United States of
America, any State thereof or the District of Columbia.

 

    30

     

    

 

“Fronting
Exposure” shall mean a Defaulting Lender’s Pro Rata share of LC Obligations, except to the extent allocated to
other Lenders or Cash Collateralized under Section 2.21.

 

“GAAP”
shall mean generally accepted accounting principles in effect from time to time in the United States.

 

“General Intangible”
shall mean any “general intangible” as such term is defined in the UCC.

 

“General Unsecured
Cash Fund” shall have the meaning assigned to such term in the Plan of Reorganization.

 

“General Unsecured
Cash Fund Deposit Account” shall mean the Deposit Account of the Borrower maintained with Signature Bank in which the
General Unsecured Cash Fund is deposited and maintained.

 

“General Unsecured
Cash Fund Escrow Agreement” shall mean that certain Escrow Deposit Agreement, dated on or about the Closing Date, between
Parent, Bankruptcy Management Solutions, Inc., and Signature Bank, in its capacity as escrow agent.

 

“Governmental
Authority” shall mean any federal, state, local or foreign court or governmental agency, authority, instrumentality or
regulatory or legislative body or any entity or officer exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the
United States, or a foreign entity or government.

 

“Guarantee”
of or by any Person (the “guarantor”) shall mean (a) any obligation, contingent or otherwise, of the guarantor
guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation (whether
arising by virtue of partnership arrangements, by agreement to keep well, to purchase assets, goods, securities or services, to
take-or-pay or otherwise) or to purchase (or to advance or supply funds for the purchase of) any security for the payment of such
Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the
owner of such Indebtedness or other obligation of the payment thereof, (iii) to maintain working capital, equity capital or
any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, (iv) entered into for the purpose of assuring in any other manner the holders of such Indebtedness or
other obligation of the payment thereof or to protect such holders against loss in respect thereof (in whole or in part) or (v) as
an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or other obligation,
or (b) any Lien on any assets of the guarantor securing any Indebtedness of any other Person, whether or not such Indebtedness
or other obligation is assumed by the guarantor; provided, however, that the term “Guarantee” shall not
include (x) endorsements for collection or deposit, in either case in the ordinary course of business or (y) customary
and reasonable indemnity obligations in effect on the Closing Date or entered into in connection with any acquisition or disposition
of assets permitted under this Agreement. The amount of any Guarantee for purposes of clause (b) shall be deemed
to be equal to the lesser of (i) the aggregate unpaid amount of such Indebtedness and (ii) the fair market value of the
property encumbered thereby as determined by such Person in good faith.

 

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“guarantor”
shall have the meaning assigned to such term in the definition of the term “Guarantee.”

 

“Guarantors”
shall mean, collectively, Parent, Intermediate Holdings, the Subsidiary Guarantors and any other Loan Party (including the
Borrower with respect to any Secured Obligations of another Loan Party).

 

“Hazardous
Materials” shall mean all pollutants, contaminants, wastes, chemicals, materials, substances and constituents of any
nature which are subject to regulation by any Governmental Authority or which would reasonably be likely to give rise to liability
under any Environmental Law, including, without limitation, explosive or radioactive substances or petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls or radon gas.

 

“Holdings”
shall mean a collective reference to Parent and Intermediate Holdings, or, if Intermediate Holdings ceases to exist, shall mean
Parent.

 

“IBA”
shall have the meaning assigned to such term in Section 1.09.

 

“Impacted
Interest Period” shall have the meaning assigned to such term in the definition of “LIBO Rate”.

 

“Increase
Date” shall have the meaning assigned to such term in Section 2.22(b).

 

“Increase
Loan Lender” shall have the meaning assigned to such term in Section 2.22(b).

 

“Indebtedness”
of any Person shall mean, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments to the extent the same would appear as a liability
on a balance sheet prepared in accordance with GAAP, (c) all obligations of such Person under conditional sale or other title
retention agreements relating to property or assets purchased by such Person, (d) all obligations of such Person issued or
assumed as the deferred purchase price of property or services (other than current intercompany liabilities (but not any refinancings,
extensions, renewals or replacements thereof) incurred in the ordinary course of business and maturing within three hundred sixty-five
(365) days after the incurrence thereof), to the extent that the same would be required to be shown as a long term liability
on a balance sheet prepared in accordance with GAAP, (e) all Guarantees by such Person of Indebtedness of others, (f) all
Capital Lease Obligations of such Person, (g) all payments that such Person would have to make in the event of an early termination,
on the date Indebtedness of such Person is being determined, in respect of outstanding Swap Agreements net of payments such Person
would receive in the event of early termination on such date of determination, (h) the principal component of all obligations,
contingent or otherwise, of such Person as an account party in respect of letters of credit and (i) the principal component
of all obligations of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness
of any partnership in which such Person is a general partner, other than to the extent that the instrument or agreement evidencing
such Indebtedness expressly limits the liability of such Person in respect thereof. The Indebtedness of the Borrower and the Subsidiaries
shall exclude (i) accrued expenses and accounts and trade payables, (ii) liabilities under vendor agreements to the extent
such indebtedness may be satisfied through non-cash means such as purchase volume earnings credits and (iii) reserves for
deferred income taxes. For the avoidance of doubt, “Indebtedness” shall not include any amounts due or payable for
the benefit of the holders of Allowed General Unsecured Claims in accordance with the Plan of Reorganization.

 

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“Indemnified
Taxes” shall mean all Taxes other than Excluded Taxes and Other Taxes.

 

“Indemnitee”
shall have the meaning assigned to such term in Section 9.05(b).

 

“Initial Cash
Dominion Trigger Period” shall mean the period commencing on the Closing Date and ending on the Spring-Out Date.

 

“Insolvency
Proceeding” shall mean any case or proceeding commenced by or against a Person under any state, federal, provincial,
territorial or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy
Code, or any other insolvency, bankruptcy, debtor relief or debt adjustment law; (b) the appointment of a receiver, interim
receiver, monitor, trustee, liquidator, administrator, conservator, custodian or other similar Person for such Person or any part
of its Property, including, in the case of any Lender, the Federal Deposit Insurance Corporation or any other state or federal
regulatory authority acting in such capacity; or (c) an assignment for the benefit of creditors.

 

“Insolvent”
with respect to any Multiemployer Plan, shall mean the condition that such plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Intercreditor
Agreement” shall mean that certain Intercreditor and Subordination Agreement dated the Closing Date by and among the
Borrower, the Administrative Agent and the Term Loan Agent.

 

“Interest
Election Request” shall mean a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.07.

 

“Interest
Expense” shall mean, with respect to any Person for any period, the sum without duplication of (a) gross interest
expense of such Person for such period on a consolidated basis, including (i) the amortization of debt discounts, (ii) the
amortization of all fees (including fees with respect to Swap Agreements) payable in connection with the incurrence of Indebtedness
to the extent included in interest expense and (iii) the portion of any payments or accruals with respect to Capital Lease
Obligations allocable to interest expense and (b) capitalized interest of such Person. For purposes of the foregoing, gross
interest expense shall be determined after giving effect to any net payments made or received and costs incurred by the Borrower
and the Subsidiaries with respect to Swap Agreements (provided that payments and costs upon the settlement or termination
of a Swap Agreement will not be included in Interest Expense). For the avoidance of doubt, “Interest Expense” shall
not include any amounts paid or repaid for the benefit of the holders of Allowed General Unsecured Claims or otherwise funded from
the General Unsecured Cash Fund, in each case in accordance with the Plan of Reorganization.

 

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“Interest
Payment Date” shall mean, (a) with respect to any Eurodollar Loan, the last day of the Interest Period applicable
to the Borrowing of which such Revolver Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more
than three (3) months’ duration, each day that would have been an Interest Payment Date had successive Interest Periods
of three (3) months’ duration been applicable to such Borrowing and, in addition, the date of any refinancing or conversion
of such Borrowing with or to a Borrowing of a different Type, (b) with respect to any CBFR Loan, the first calendar day following
the end of each fiscal quarter, and (c) the Revolver Termination Date.

 

“Interest
Period” shall mean, as to any Eurodollar Borrowing, the period commencing on the date of such Borrowing or on the last
day of the immediately preceding Interest Period applicable to such Borrowing, as applicable, and ending on the numerically corresponding
day (or, if there is no numerically corresponding day, on the last day) in the calendar month that is 1, 2, 3 or 6 months
thereafter, as the Borrower may elect, or the date any Eurodollar Borrowing is converted to a CBFR Borrowing in accordance with
Section 2.07 or repaid or prepaid in accordance with Section 2.08 or Section 2.10; provided,
that if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day. Interest shall accrue from and including the first day of an Interest Period to but
excluding the last day of such Interest Period.

 

“Intermediate
Holdings” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

“Interpolated
Rate” shall mean, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal
places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent
manifest error) to be equal to the rate that results from interpolating on a linear basis between (a) the LIBO Screen Rate
for the longest period for which the LIBO Screen Rate is available that is shorter than the Impacted Interest Period; and (b) the
LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available) that exceeds the Impacted Interest Period,
in each case, at such time; provided, that, if any Interpolated Rate shall be less than 0.50%, such rate shall be deemed
to be 0.50% for purposes of this Agreement.

 

“Inventory”
has the meaning given that term in the UCC, and shall also include, without limitation, all: (a) goods which (i) are
leased by a Person as lessor, (ii) are held by a Person for sale or lease or to be furnished under a contract of service,
(iii) are furnished by a Person under a contract of service, or (iv) consist of raw materials, work in process, or materials
used or consumed in a business; (b) goods of said description in transit; (c) goods of said description which are returned,
repossessed or rejected; and (d) packaging, advertising, and shipping materials related to any of the foregoing.

 

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“Inventory
Reserves” shall mean, without duplication of any factors considered in the Appraised Value Percentage of Inventory and
without duplication of any other Reserves or items that are otherwise addressed or excluded through eligibility criteria, such
reserves as may be established from time to time by the Administrative Agent in the Administrative Agent’s Permitted Discretion
with respect to the determination of the saleability, at retail, of the Eligible Inventory or which reflect such other factors
as may affect the market value of the Eligible Inventory. Without limiting the generality of the foregoing, Inventory Reserves
may, in the Administrative Agent’s Permitted Discretion, include (but are not limited to) reserves based on: (a) obsolescence;
(b) seasonality; (c) Shrink; (d) imbalance; (e) change in Inventory character; (f) change in Inventory
composition; (g) change in Inventory mix; (h) mark-downs (both permanent and point of sale); (i) retail mark-ons
and markups inconsistent with prior period practice and performance, industry standards, current business plans or advertising
calendar and planned advertising events; and (j) out-of-date and/or expired Inventory.

 

“Investment”
shall have the meaning assigned to such term in Section 6.04.

 

“IRS”
shall mean the United States Internal Revenue Service.

 

“ISDA Definitions”
shall mean the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor
thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published
from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

 

“Issuing Bank”
shall mean each of J.P. Morgan or any Affiliate of J.P. Morgan, Bank of America, N.A. or any Affiliate thereof, Wells
Fargo Bank, N.A. or any Affiliate thereof and any other Lender reasonably acceptable to the Borrower and the Administrative Agent
(such consent not to be unreasonably withheld or delayed by either party) who agrees to issue Letters of Credit, or any replacement
issuer appointed pursuant to Section 2.19. References herein to the term “Issuing Bank” in singular form
shall be deemed to refer to Issuing Banks in plural form, as the context shall require.

 

“Issuing Bank
Fee” shall have the meaning assigned to such term in Section 2.12(c).

 

“Joint Venture”
shall mean a joint venture or similar arrangement, whether in corporate, partnership or other legal form which is not a Subsidiary
but in which the Borrower or any Subsidiary owns or controls any Equity Interests; provided, in no event shall any corporate
Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

 

“J.P. Morgan”
shall mean JPMorgan Chase Bank, N.A. and its affiliates.

 

“Judgment
Currency” has the meaning assigned to such term in Section 9.24.

 

“Junior Lien”
shall mean a Lien that is subordinated to the Liens securing the Obligations on terms satisfactory to the Administrative Agent.

 

“LC Application”
shall mean an application by the Borrower to an Issuing Bank for issuance of a Letter of Credit, in form reasonably satisfactory
to the applicable Issuing Bank.

 

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“LC Conditions”
shall mean the following conditions necessary for issuance of a Letter of Credit: (a) after giving effect to such issuance,
the total LC Obligations do not exceed the Aggregate Letter of Credit Subline (and the aggregate amount of LC Obligations of the
applicable Issuing Bank shall not exceed the Letter of Credit Subline of such Issuing Bank, unless the applicable Issuing Bank
otherwise agrees); (b) each Letter of Credit shall expire not later than the earlier of (i) 365 days from issuance
(or such longer period as may be agreed between the applicable Issuing Bank and the Borrower) and (ii) the fifth Business
Day prior to the Revolver Termination Date; provided that any Letter of Credit may provide for an automatic renewal thereof
for additional periods of up to 365 days (which in no event shall extend beyond the date referred to in clause (b)(ii),
except to the extent Cash Collateralized at 105% of the Stated Amount thereof or backstopped pursuant to arrangements reasonably
acceptable to the relevant Issuing Bank); (c) the Letter of Credit and payments thereunder are denominated in Dollars; and
(d) the form of the proposed Letter of Credit is satisfactory to the Administrative Agent and the applicable Issuing Bank
in their reasonable discretion.

 

“LC Disbursement”
shall mean any payment made by an Issuing Bank pursuant to a Letter of Credit.

 

“LC Documents”
shall mean all documents, instruments and agreements (including LC Requests and LC Applications) delivered by the Borrower or any
other Person to an Issuing Bank or the Administrative Agent in connection with any Letter of Credit.

 

“LC Exposure”
shall mean, with respect to any Lender at any time, such Lender’s Pro Rata share of the aggregate LC Obligations at such
time.

 

“LC Obligations”
shall mean, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit plus
(b) the aggregate amount of all LC Disbursements relating to Letters of Credit that have not yet been reimbursed by or on
behalf of the Borrower.

 

“LC Request”
shall mean a request for issuance of a Letter of Credit, to be provided by the Borrower to an Issuing Bank, in form satisfactory
to the applicable Issuing Bank.

 

“Lead Arranger”
shall mean J.P. Morgan.

 

“Lender”
shall mean each financial institution listed on Schedule 2.01 (other than any such Person that has ceased to be a party
hereto pursuant to an Assignment and Acceptance in accordance with Section 9.04), as well as any Person that becomes
a “Lender” hereunder in accordance with Section 9.04.

 

“Lender Parent”
shall mean, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

 

“Lender Party”
shall mean the Administrative Agent, each Issuing Bank, or any other Lender.

 

“Lending Office”
shall mean, as to any Lender, the applicable branch, office or Affiliate of such Lender designated by such Lender to make Loans.

 

“Letter of
Credit” shall mean each letter of credit issued by an Issuing Bank pursuant to this Agreement and shall include each
Existing Letter of Credit, and the term “Letter of Credit” shall mean any one of them or each of them singularly, as
the context may require.

 

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“Letter of
Credit Increase Event” shall mean, at any time after the Closing Date, the occurrence of each of the following events:
(i) the Borrower delivers a written notice to the Administrative Agent requesting an increase of the Aggregate Letter of Credit
Subline, (ii) one or more Lenders then party to this Agreement (including any existing Issuing Bank) agree to issue Letters
of Credit in an aggregate principal amount equal to such requested increased amount (for the avoidance of doubt, no Issuing Bank
is under any obligation to increase its Letter of Credit Subline) and (iii) Schedule 2.01B to this Agreement is amended
to reflect the Letter of Credit Subline of each Issuing Bank after giving effect to the Letter of Credit Increase Event; it being
understood that such amendment to Schedule 2.01B shall only require the consent of the Borrower, the Administrative Agent
and each Issuing Bank agreeing to increase its Letter of Credit Subline or otherwise changing its Letter of Credit Subline, in
each case, as of the date of the Letter of Credit Increase Event. It is understood and agreed that the Aggregate Letter of Credit
Subline may not exceed $50.0 million at any time.

 

“Letter of
Credit Subline” shall mean, for any Issuing Bank, the amount set forth opposite such Issuing Bank’s name on Schedule
2.01B as such schedule may be modified from time to time after the Closing Date in accordance with the terms hereof; provided
that, as to any Issuing Bank, the Letter of Credit Subline of such Issuing Bank shall not exceed the amount set forth opposite
such Issuing Bank’s name on Schedule 2.01B as in effect on the Closing Date, unless the applicable Issuing Bank otherwise
agrees. For the avoidance of doubt, the Letter of Credit Sublines are part of, and not in addition to, the Revolver Commitments.

 

“Liabilities”
shall mean any losses, claims (including intraparty claims), demands, damages or liabilities of any kind.

 

“LIBO Rate”
shall mean, with respect to any Eurodollar Borrowing for any applicable Interest Period or for any CBFR Borrowing, the LIBO Screen
Rate at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period; provided
that, if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”),
then the LIBO Rate shall be the Interpolated Rate, subject to Section 2.14 in the event that the Administrative Agent shall
conclude that it shall not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding absent
manifest error). Notwithstanding the above, to the extent that “LIBO Rate” or “Adjusted LIBO Rate” is used
in connection with an CBFR Borrowing, such rate shall be determined as modified by the definition of Adjusted One Month LIBOR Rate.

 

“LIBO Screen
Rate” shall mean, for any day and time, with respect to any Eurodollar Borrowing for any Interest Period or for any CBFR
Borrowing, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over
the administration of such rate for Dollars) for a period equal in length to such Interest Period as displayed on such day and
time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear
on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate
page of such other information service that publishes such rate from time to time as selected by the Administrative Agent
in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would be less than 0.50%, such rate
shall be deemed to 0.50% for the purposes of this Agreement; provided further, that the foregoing shall not be applicable
to determine the “Adjusted One Month LIBOR Rate” and the “CBFR”.

 

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

 

“Lien Waiver”
shall mean an agreement, in form reasonably satisfactory to the Administrative Agent, by which (a) for any material Collateral
located on leased premises, the lessor waives or subordinates any Lien it may have on the Collateral, and agrees to permit the
Administrative Agent to enter upon the premises and remove the Collateral or to use the premises to store the Collateral as permitted
hereunder; and (b) for any Collateral held by a warehouseman, processor, shipper, customs broker (including pursuant to a
Customs Broker Agreement) or freight forwarder, such Person waives or subordinates any Lien it may have on the Collateral, agrees
to hold any Documents (as defined in the Collateral Agreement) in its possession relating to the Collateral as agent for the Administrative
Agent, and agrees to deliver the Collateral to the Administrative Agent upon request, in accordance with such agreement.

 

“Line Cap”
shall mean, at any time of determination, an amount equal the lesser of (a) the aggregate amount of all Revolver Commitments
and (b) the then applicable Borrowing Base.

 

“Liquidity
Event” shall mean the occurrence of a date when (a) Availability on such date shall have been less than the greater
of (i) 17.5% of the Line Cap and (ii) $20.0 million, in either case for five consecutive Business Days, until such date
as (b) Availability on such date shall have been at least equal to the greater of (i) 17.5% of the Line Cap and (ii) $20.0
million for 30 consecutive calendar days.

 

“LLC”
shall mean any Person that is a limited liability company under the laws of its jurisdiction of formation.

 

“Loan”
shall mean any Revolver Loan, Protective Advance or Overadvance Loan.

 

“Loan Documents”
shall mean, collectively, this Agreement, any promissory notes issued pursuant to this Agreement, the Security Documents, each
compliance certificate, the Intercreditor Agreement, any subordination agreement, and all other agreements, instruments, documents
and certificates executed and delivered to, or in favor of, the Administrative Agent or any Lender and including all other pledges,
powers of attorney, consents, notices, LC Documents and any agreements between the Borrower and any Issuing Bank regarding such
Issuing Bank’s Letter of Credit Subline or the respective rights and obligations between the Borrower and any Issuing Bank
in connection with the issuance by such Issuing Bank of Letters of Credit, and all other written matter whether heretofore, now
or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to the Administrative
Agent or any Lender in connection with this Agreement or the transactions contemplated hereby. Any reference in this Agreement
or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may
be in effect at any and all times such reference becomes operative.

 

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“Loan Parties”
shall mean Holdings, the Borrower, the Subsidiary Guarantors and any Parent Entity, in lieu of Holdings, that has executed and
delivered an assumption agreement in substantially the form of Exhibit D to the Collateral Agreement and become a “Guarantor”
and “Grantor” thereunder.

 

“Local Time”
shall mean Dallas time.

 

“Margin Stock”
shall mean margin stock within the meaning of Regulations T, U and X, as applicable.

 

“Material
Adverse Effect” shall mean a material adverse change in, or material adverse effect on (a) the business, assets,
financial condition or results of operations, in each case of Holdings, the Borrower and the Subsidiaries, taken as a whole, (b) the
validity or enforceability of the Loan Documents, (c) the ability of the Loan Parties, taken as a whole, to perform their
obligations under the Loan Documents, (d) the Collateral, or the Administrative Agent’s Liens (on behalf of itself and
other Secured Parties) on the Collateral or the priority of such Liens, or (e) the rights and remedies (taken as a whole)
of the Administrative Agent, the Issuing Banks and the Lenders under the Loan Documents.

 

“Material
Agreement” shall mean, (a) the General Unsecured Cash Fund Escrow Agreement and (b) any other contract or agreement
pursuant to which Holdings or its Subsidiaries is a party that if breached could reasonably be expected to cause a Material Adverse
Effect.

 

“Material
Indebtedness” shall mean, collectively, (i) the Term Loan Obligations and (ii) any Indebtedness (other than
the Loans and Letters of Credit), of any one or more of Holdings and its Subsidiaries in an aggregate principal amount exceeding
$5.0 million.

 

“Material
Intellectual Property” means any intellectual property that, individually or collectively, (a) is (i) necessary
to the business of the Borrower and its Subsidiaries as currently conducted or (ii) is otherwise material to the business
or operations of the Borrower and its Subsidiaries, taken as a whole, or (b) has a fair market value (as reasonably determined
by the Borrower in good faith) in excess of $1.0 million.

 

“Maximum Rate”
shall have the meaning assigned to such term in Section 9.09.

 

“Moody’s”
shall mean Moody’s Investors Service, Inc.

 

“Mortgage”
shall mean any mortgage, deed of trust or other agreement in form and substance reasonably satisfactory to the Administrative Agent,
which conveys or evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent and the other
Secured Parties, on the applicable Real Property, including any amendment, restatement, modification or supplement thereto.

 

    39

     

    

 

“Mortgageable
Real Property” shall mean (a) any fee owned real property and related fixtures that is adjacent to, contiguous with
or necessary or related to or used in connection with any real property then subject to a Mortgage in favor of the Administrative
Agent, or (b) any other fee owned real property and related fixtures that either (i) has a fair market value in an amount
equal to or greater than $1.0 million (or if an Event of Default has occurred and is continuing, then regardless of the fair market
value of such real property and related fixtures) or (ii) is subject to a Lien in favor of the Term Loan Agent to secure the
Term Loan Obligations. For the avoidance of doubt, no real property that is subject to the Sale Leaseback shall be “Mortgageable
Real Property.”

 

“Mortgaged
Properties” shall mean the fee owned real properties of the Loan Parties encumbered by a Mortgage pursuant to Section 5.09,
if any.

 

“Multiemployer
Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA to which any Loan Party or
any ERISA Affiliate (other than one considered an ERISA Affiliate only pursuant to subsection (m) or (o) of Code
Section 414) is making or accruing an obligation to make contributions, or has within any of the preceding six (6) plan
years made or accrued an obligation to make contributions.

 

“Net Income”
shall mean, for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP; provided that there shall be excluded (a) other than as otherwise set forth in the definition
of “Pro Forma Basis,” the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is
merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other
than a Subsidiary) in which the Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions and (c) the
undistributed earnings of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or
requirement of law applicable to such Subsidiary.

 

“Non-Consenting
Lender” shall have the meaning assigned to such term in Section 2.19(c).

 

“Note”
shall have the meaning assigned to such term in Section 2.09(d).

 

“Noticed Bank
Product” shall mean Bank Product Obligations arising under a Bank Product, in respect of which the notice delivered to
the Administrative Agent pursuant to Section 2.23 by the applicable Secured Bank Product Provider and the Borrower
(as required under the definition of “Secured Bank Product Provider”) confirms that such Bank Product Obligations shall
be deemed a “Noticed Bank Product” hereunder for all purposes, including the application of Availability Reserve and
Section 7.02, so long as no Overadvance would result from establishment of a Bank Product Reserve with respect to such
Bank Product Obligations; provided that, if the amount of Secured Bank Product Obligations arising under such Bank Product
is increased in accordance with the definition of “Secured Bank Product Obligations”, then such Secured Bank Product
Obligations shall only constitute a Noticed Bank Product to the extent that a Bank Product Reserve can be established with respect
to such Bank Product Obligations without resulting in an Overadvance. For the avoidance of doubt, (a) so long as J.P. Morgan
or one of its Affiliates is the Administrative Agent, neither J.P. Morgan nor any of its Affiliates providing Bank Products for
any Loan Party or any Subsidiary of a Loan Party shall be required to provide any notice in respect of such Bank Products and (b) all
Bank Product Obligations set forth in Schedule 1.01(a) as of the date hereof shall constitute Noticed Bank Products.

 

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“Noticed Swap
Agreement” shall mean Swap Agreement Obligations arising under a Swap Agreement, in respect of which the notice delivered
to the Administrative Agent pursuant to Section 2.23 by the applicable Secured Swap Provider and the Borrower (as required
under the definition of “Secured Swap Provider”) confirms that such Swap Agreement shall be deemed a “Noticed
Swap Agreement” hereunder for all purposes, including the application of Availability Reserve and Section 7.02,
so long as no Overadvance would result from establishment of a Swap Obligations Reserve with respect to such Swap Agreement Obligations;
provided that, if the amount of Secured Swap Obligations arising under such Swap Agreement is increased in accordance with
the definition of “Secured Swap Obligations” then such Secured Swap Obligations shall only constitute a Noticed Swap
Agreement to the extent that a Swap Obligations Reserve can be established with respect to such Swap Agreement Obligations without
resulting in an Overadvance. For the avoidance of doubt, so long as J.P. Morgan or one of its Affiliates is the Administrative
Agent, neither J.P. Morgan nor any of its Affiliates having Swap Agreements with any Loan Party or any Subsidiary of a Loan Party
shall be required to provide any notice in respect of such Swap Agreements.

 

“NYFRB”
shall mean the Federal Reserve Bank of New York.

 

“NYFRB Rate”
shall mean, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight
Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day);
provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” shall mean
the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Administrative Agent from a federal
funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than 1.50%,
such rate shall be deemed to be 1.50% for purposes of this Agreement.

 

“NYFRB’s
Website” shall mean the website of the NYFRB at http://www.newyorkfed.org, or any successor source.

 

“Obligations”
shall mean for purposes of the Loan Documents, all obligations of every nature of each Loan Party from time to time owed to the
Agents (including former Agents) or the Lenders, under any Loan Document, whether for principal, interest (including interest,
fees and other amounts which, but for the filing of a petition in bankruptcy with respect to such Loan Party, would have accrued
on any such Obligation, whether or not a claim is allowed against such Loan Party for such interest, fees and other amounts in
the related bankruptcy proceeding), LC Obligations, fees, expenses, indemnification or otherwise. For the avoidance of doubt, Revolver
Loans made pursuant to any Revolver Commitment Increases incurred under Section 2.22 shall constitute Obligations.

 

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

 

    41

     

    

 

“Operating
Account” shall mean the Borrower’s main operating Deposit Account (account no.: xxxxxx7526) held at Wells Fargo
Bank, N.A. or any successor Deposit Account approved by the Administrative Agent.

 

“Osmium/Tensile”
means Osmium Partners, LLC, Tensile Capital Management, LLC and their respective Affiliates.

 

“Other Liabilities”
shall mean any obligation on account of (a) any Cash Management Services furnished to any of the Loan Parties or any of their
Subsidiaries and/or (b) any transaction which arises out of any Bank Product or any Swap Agreement entered into with any Loan
Party, as each may be amended from time to time.

 

“Other Taxes”
shall mean any and all present or future stamp, court, intangible, recording, filing, documentary, excise, property or similar
Taxes arising from any payment made hereunder or from the execution, delivery, performance or enforcement or registration of, from
the receipt or perfection of a security interest under, or otherwise with respect to, the Loan Documents, and any and all interest
and penalties related thereto.

 

“Overadvance”
shall have the meaning assigned to such term in Section 2.24.

 

“Overadvance
Loan” shall mean a CBFR Loan made when an Overadvance exists or is caused by the funding thereof.

 

“Overnight
Bank Funding Rate” shall mean, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar
borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB
as set forth on the NYFRB’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as
an overnight bank funding rate.

 

“Paid in Full”
or “Payment in Full” means, (a) the payment in full in cash of all outstanding Loans and LC Disbursements,
together with accrued and unpaid interest thereon, (b) the termination, expiration, or cancellation and return of all outstanding
Letters of Credit (or alternatively, with respect to each such Letter of Credit, the furnishing to the Administrative Agent of
a cash deposit, or at the discretion of the Administrative Agent a backup standby letter of credit satisfactory to the Administrative
Agent and the Issuing Banks, in an amount equal to 105% of the outstanding LC Obligations as of the date of such payment), (c) the
payment in full in cash of all accrued and unpaid fees, (d) the payment in full in cash of all reimbursable expenses and other
Secured Obligations (other than obligations for taxes, indemnification, charges and other inchoate or contingent or reimbursable
liabilities for which no claim or demand for payment has been made or, in the case of indemnification, no notice has been given
(or, in each case, reasonably satisfactory arrangements have otherwise been made) and other obligations expressly stated to survive
such payment and termination of this Agreement), together with accrued and unpaid interest thereon, (e) the termination of
all Revolver Commitments, and (f) the termination of the Secured Swap Obligations and the Secured Bank Product Obligations
or entering into other arrangements satisfactory to the Secured Parties counterparties thereto.

 

“Parent”
shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

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“Parent Entity”
shall mean any of (i) Holdings and (ii) any other Person of which Holdings is a Subsidiary.

 

“Participant”
shall have the meaning assigned to such term in Section 9.04(g).

 

“Participant
Register” shall have the meaning assigned to such term in Section 9.04(g).

 

“Payment Conditions”
shall mean as to any relevant action contemplated in this Agreement, (i) no Event of Default has then occurred and is continuing
or would result from any action, (ii) Availability on a Pro Forma Basis immediately after giving effect to such action
would be greater than the greater of (A) $25.0 million and (B) 25% of the Line Cap at all times over the sixty (60) consecutive
days prior to consummation of such action, and also on a Pro Forma Basis for such action, and (iii) delivery to Administrative
Agent at least three (3) Business Days and not more than five (5) Business Days (or such shorter or longer period of
time, as applicable, as may be agreed by the Administrative Agent in its sole discretion) prior to the date of the proposed action
of a certificate of the Borrower signed by a Financial Officer of the Borrower giving notice of the intent to consummate such action
and certifying compliance with the foregoing conditions (including calculations of Availability).

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar
functions.

 

“Perfection
Certificate” shall mean a certificate in form reasonably satisfactory to the Administrative Agent that provides information
with respect to the Loan Parties and the Property of each Loan Party.

 

“Permitted
Business Acquisition” shall mean any acquisition by the Borrower or any other Loan Party of all or substantially all
of the assets of, or All Outstanding Equity Interests in, a Person or division or line of business of a Person, provided
that: (i) on the date of execution of the purchase agreement in respect of such acquisition, no Event of Default shall have
occurred and be continuing or would result therefrom; (ii) if the aggregate total consideration to be paid by the Borrower
or any Subsidiary exceeds $2.5 million, the Borrower shall have delivered to the Administrative Agent at least five (5) days
prior to such acquisition a certificate of a Responsible Officer of the Borrower to such effect, together with all financial information
for such Subsidiary or assets that is reasonably requested by the Administrative Agent and available to the Borrower; (iii) if
(with respect to any acquisition of a Person or any Equity Interests in a Person) the acquired Person shall not become a Subsidiary
Guarantor or (with respect to any acquisition of assets) the assets shall be acquired by a Subsidiary that is not a Subsidiary
Guarantor, the aggregate amount of cash or property paid by the Loan Parties in connection with such acquisition shall not exceed
amounts permitted by Sections 6.04(q) or (r); and (iv) the Payment Conditions shall be satisfied on
a Pro Forma Basis for such Permitted Business Acquisition.

 

“Permitted
Discretion” shall mean a determination made in good faith and in the exercise of reasonable (from the perspective of
a secured asset based lender) business judgment and as it relates to the imposition of exclusionary criteria shall require that
the effect of any adjustment or imposition of exclusionary criteria be a reasonable quantification (as reasonably determined by
the Administrative Agent) of any impact on the incremental net realizable value of the assets included in the Borrowing Base attributable
to such contributing factors.

 

    43

     

    

 

“Permitted
Investments” shall mean:

 

(a)            direct
obligations of the United States of America or any agency thereof or obligations guaranteed by the United States of America or
any agency thereof, in each case with maturities not exceeding two (2) years;

 

(b)            time
deposit accounts, certificates of deposit and money market deposits maturing within one hundred eighty (180) days of the date
of acquisition thereof issued by a bank or trust company that is organized under the laws of the United States of America, any
state thereof or any foreign country recognized by the United States of America having capital, surplus and undivided profits in
excess of $250.0 million and whose long-term debt, or whose parent holding company’s long-term debt, is rated A (or
such similar equivalent rating or higher by at least one (1) nationally recognized statistical rating organization (as defined
in Rule 436 under the Securities Act));

 

(c)            repurchase
obligations with a term of not more than one hundred eighty (180) days for underlying securities of the types described in
clause (a) above entered into with a bank meeting the qualifications described in clause (b) above;

 

(d)            commercial
paper, maturing not more than one (1) year after the date of acquisition, issued by a corporation organized and in existence
under the laws of the United States of America or any foreign country recognized by the United States of America with a rating
at the time as of which any investment therein is made of P-2 (or higher) according to Moody’s, or A-1 (or higher) according
to S&P;

 

(e)            securities
with maturities of two (2) years or less from the date of acquisition issued or fully guaranteed by any State, commonwealth
or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least A
by S&P or A by Moody’s;

 

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

 

(g)            money
market funds that (i) comply with the criteria set forth in Rule 2a-7 under the Investment Company Act of 1940, (ii) are
rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5.0 billion.

 

“Permitted
Refinancing Indebtedness” shall mean any Indebtedness issued in exchange for, or the net proceeds of which are used to
extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”), the Indebtedness being
Refinanced (or previous refinancings thereof constituting Permitted Refinancing Indebtedness); provided that (a) the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount
(or accreted value, if applicable) of the Indebtedness so Refinanced (plus unpaid accrued interest and premium thereon, any committed
or undrawn amounts and underwriting discounts, fees, commissions and expenses, associated with such Permitted Refinancing Indebtedness),
except as otherwise permitted under Section 6.01, (b) other than with respect to Indebtedness permitted pursuant
to Section 6.01(h) and Section 6.01(i), such Permitted Refinancing Indebtedness has a final maturity
date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the
Weighted Average Life to Maturity of the Indebtedness being Refinanced, (c) if the Indebtedness being Refinanced is (i) by
its terms subordinated in right of payment to the Obligations under this Agreement or (ii) unsecured Indebtedness, such Permitted
Refinancing Indebtedness shall (A) (x) be subordinated in right of payment to such Obligations on terms not materially
less favorable to the Lenders as those contained in the documentation governing the Indebtedness being Refinanced, taken as a whole,
or (y) remain unsecured, respectively, and (B) have a final maturity date equal to or later than one hundred eighty (180)
days after the Revolver Termination Date, (d) no Permitted Refinancing Indebtedness shall have obligors or contingent obligors
that were not obligors or contingent obligors (or that would not have been required to become obligors or contingent obligors)
in respect of the Indebtedness being Refinanced except to the extent otherwise permitted under Section 6.01 or Section 6.04,
and (e) if the Indebtedness being Refinanced is (or would have been required to be) secured with any ABL Priority Collateral,
such Permitted Refinancing Indebtedness shall (x) be secured by a Junior Lien with respect to the ABL Priority Collateral
pursuant to an intercreditor arrangement reasonably satisfactory to the Administrative Agent and (y) have a final maturity
date equal to or later than one hundred eighty (180) days (or ninety (90) days in the case of Indebtedness permitted pursuant to
Section 6.01(j)) after the Revolver Termination Date.

 

    44

     

    

 

“Person”
shall mean any natural person, corporation, business trust, joint venture, association, company, partnership, limited liability
company, individual or family trust, or other organization (whether or not a legal entity), or any government or any agency or
political subdivision thereof.

 

“Petition
Date” shall have the meaning assigned such terms in the recitals to this Agreement.

 

“Plan”
shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA
or Section 412 of the Code or Section 302 of ERISA, and in respect of which any Loan Party or any ERISA Affiliate is
(or, if such plan were terminated, would under Section 4062 or Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

 

“Plan Asset
Regulations” shall mean 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended
from time to time.

 

“Plan of Reorganization”
shall have the meaning assigned to such term in the recitals to this Agreement.

 

“Prepetition
Credit Agreement” shall mean that Credit Agreement, dated as of August 18, 2015, as amended, among the Borrower,
the guarantors thereunder, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent, and
the other agents and parties party thereto from time to time.

 

“primary obligor”
shall have the meaning assigned to such term in the definition of “Guarantee.”

 

    45

     

    

 

“Prime Rate”
shall mean the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall
Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal
Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is
no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by
the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and
including the date such change is publicly announced or quoted as being effective.

 

“Pro Forma
Basis” shall mean, as to any calculation of the Consolidated Fixed Charge Coverage Ratio for any events as described
below that occur subsequent to the commencement of any period of four (4) consecutive quarters (the “Reference Period”)
for which the financial effect of such events is being calculated, and giving effect to the events for which such calculation is
being made, such calculation as will give pro forma effect to such events as if such events occurred on the first day of the
Reference Period (it being understood and agreed that (x) unless otherwise specified, such Reference Period shall be deemed
to be the four (4) consecutive fiscal quarters ending on the last day of the most recently ended fiscal quarter of the
Borrower and its Subsidiaries for which financial statements are available and such pro forma adjustments shall be excluded
to the extent already accounted for in the calculation of EBITDA for such period and (y) if any Person that became a Subsidiary
or was merged, amalgamated or consolidated with or into the Borrower or any Subsidiary shall have experienced any event requiring
adjustments pursuant to this definition, then such calculation shall give pro forma effect thereto for such period as if such
event occurred at the beginning of such period): (i) in making any determination of EBITDA, pro forma effect shall be
given to any asset disposition of a Subsidiary, line of business, to any asset acquisition, any discontinued operation or any operational
change, in each case that occurred during the Reference Period (or, in the case of determinations made with respect to any action
the taking of which hereunder is subject to compliance on a Pro Forma Basis or otherwise with the Consolidated Fixed Charge
Coverage Ratio (any such action, a “Restricted Action”) occurring during the Reference Period or thereafter
and through and including the date of such determination) and (ii) in making any determination on a Pro Forma Basis,
(x) all Indebtedness (including Indebtedness incurred or assumed and for which the financial effect is being calculated, whether
incurred under this Agreement or otherwise, but excluding normal fluctuations in revolving Indebtedness incurred for working capital
purposes) incurred or permanently repaid, returned, redeemed or extinguished during the Reference Period (or, in the case of determinations
made with respect to any Restricted Action, occurring during the Reference Period or thereafter and through and including the date
of such determination) shall be deemed to have been incurred or repaid, returned, redeemed or extinguished at the beginning of
such period (it being understood that for purposes of any calculation of the Consolidated Fixed Charge Coverage Ratio, the use
of proceeds of any such Indebtedness shall be taken into account in such calculation) and (y) Interest Expense of such Person
attributable to (A) interest on any Indebtedness, for which pro forma effect is being given as provided in the preceding
clause (x), bearing floating interest rates shall be computed on a pro forma basis utilizing the rate which is or would
be in effect with respect to such Indebtedness as at the relevant date of determination as if such rate had been actually in effect
during the period for which pro forma effect is being given taking into account any interest hedging arrangements applicable
to such Indebtedness, (B) any Capital Lease Obligation shall be deemed to accrue at an interest rate reasonably determined
by a Responsible Officer of the Borrower to be the rate of interest implicit in such Capital Lease Obligation in accordance with
GAAP and (C) interest on any Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime
or similar rate, a eurocurrency interbank offered rate, or other rate, shall be determined to have been based upon the rate actually
chosen, or if none, then based upon such optional rate chosen as the Borrower or Subsidiary may designate.

 

    46

     

    

 

Pro forma calculations
made pursuant to the definition of the term “Pro Forma Basis” shall be determined in good faith by a Responsible
Officer of the Borrower and, for any fiscal period ending on or prior to the first anniversary of any such asset acquisition, asset
disposition, discontinued operation or operational change, may include adjustments to reflect operating expense reductions and
other operating improvements or synergies reasonably expected to result from such asset acquisition, asset disposition, discontinued
operation, operational change, and for purposes of determining compliance with the Consolidated Fixed Charge Coverage Ratio such
adjustments may reflect additional operating expense reductions and other additional operating improvements and synergies that
would be includable in pro forma financial statements prepared in accordance with Regulation S-X and such other adjustments
not includable in Regulation S-X under the Securities Act for which substantially all of the steps necessary for the realization
thereof have been taken and are reasonably anticipated by the Borrower to be realized in the next twelve (12)-month period following
the consummation thereof and, are estimated on a good faith basis by the Borrower; provided, however that the aggregate
amount of any such adjustments shall not exceed (together with the aggregate add back to EBITDA pursuant to clauses (a)(iv) and
(a)(v) of the definition thereof with respect to the applicable four (4) fiscal quarter period) 20% of the EBITDA
of the Borrower and the Subsidiaries for any four (4) fiscal quarter period (prior to giving effect to any add back pursuant
to clauses (a)(iv) and (a)(v) of the definition of “EBITDA” or any pro forma adjustments
pursuant to this definition). The Borrower shall deliver to the Administrative Agent a certificate of a Responsible Officer of
the Borrower setting forth such demonstrable or additional operating expense reductions and other operating improvements or synergies
and information and calculations supporting them in reasonable detail.

 

“Pro Rata”
shall mean with respect to any Lender, a percentage (rounded to the ninth decimal place) determined (a) while Revolver Commitments
are outstanding, by dividing the amount of such Lender’s Revolver Commitment by the aggregate amount of all Revolver Commitments;
and (b) at any other time, by dividing the amount of such Lender’s Loans and LC Obligations by the aggregate amount
of all outstanding Loans and LC Obligations.

 

“Prohibited
Transaction” shall have the meaning assigned to such term in Section 406 of ERISA and/or Section 4975(c) of
the Code.

 

“Property”
shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible (including
cash, securities, accounts, contract rights and Equity Interests or other ownership interests of any Person), whether now in existence
or owned or hereafter acquired.

 

“Protective
Advances” shall have the meaning assigned to such term in Section 2.25.

 

“PTE”
shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended
from time to time.

 

    47

     

    

 

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).

 

“QFC Credit
Support” has the meaning assigned to it in Section 9.21.

 

“Qualified
Capital Stock” shall mean any Equity Interest of any Person that does not by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable or exercisable) or upon the happening of any event (a) provide
for scheduled payments of dividends in cash (other than at the option of the issuer) prior to the date that is, at the time of
issuance of such Equity Interest, ninety-one (91) days after the Revolver Termination Date, (b) become mandatorily redeemable
at the option of the holder thereof (other than for Qualified Capital Stock or pursuant to customary provisions relating to redemption
upon a change of control or sale of assets) pursuant to a sinking fund obligation or otherwise prior to the date that is, at the
time of issuance of such Equity Interest, ninety-one (91) days after the Revolver Termination Date or (c) become convertible
or exchangeable at the option of the holder thereof for Indebtedness or Equity Interests that are not Qualified Capital Stock;
provided further, that if any such Equity Interest is issued pursuant to a plan for the benefit of the employees, directors,
officers, managers or consultants of Holdings (or any Parent Entity thereof), the Borrower or its Subsidiaries or by any such plan
to such Persons, such Equity Interest shall not be regarded as an Equity Interest not constituting Qualified Capital Stock solely
because it may be required to be repurchased by Holdings (any Parent Entity), the Borrower or its Subsidiaries in order to satisfy
applicable regulatory obligations.

 

“Real Property”
shall have the meaning assigned to such term in Section 3.07(c).

 

“Real Property
Documents” shall mean, with respect to any real property, (a) a FIRREA compliant appraisal of such real property
from appraisers engaged by the Administrative Agent, (b) Flood Documentation reasonably satisfactory to the Administrative
Agent and each Regulated Lender Entity, (c) survey documentation reasonably satisfactory to the Administrative Agent, (d) a
Title Insurance Policy, (e) opinions addressed to the Administrative Agent and the Lenders of (i) local counsel in each
jurisdiction where the Mortgaged Property is located with respect to the enforceability of the Mortgages and other matters customarily
included in such local law opinions and (ii) counsel for the Borrower regarding due authorization, execution and delivery
of the Mortgages, in each case, in form and substance reasonably satisfactory to the Administrative Agent, (f) such other
requirements or documents as may be reasonably requested by the Administrative Agent and Required Lenders and (g) any other
documentation or confirmation required to be delivered or made pursuant to Section 5.09(f) and Section 5.09(g).

 

“Reference
Period” shall have the meaning assigned to such term in the definition of “Pro Forma Basis.”

 

“Reference
Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is LIBO Rate, 11:00
a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark
is not LIBO Rate, the time determined by the Administrative Agent in its reasonable discretion.

 

    48

     

    

 

“Refinance”
shall have the meaning assigned to such term in the definition of the term “Permitted Refinancing Indebtedness,” “Refinancing”
and “Refinanced” shall have meanings correlative thereto.

 

“Refunding
Capital Stock” shall have the meaning assigned to such term in Section 6.06(i).

 

“Register”
shall have the meaning assigned to such term in Section 9.04(e).

 

“Regulated
Lender Entity” shall have the meaning assigned to such term in Section 5.09(f).

 

“Regulation
D” shall mean Regulation D of the Board, as in effect from time to time and all official rulings and interpretations
thereunder or thereof.

 

“Regulation
T” shall mean Regulation T of the Board, as in effect from time to time and all official rulings and interpretations
thereunder or thereof.

 

“Regulation
U” shall mean Regulation U of the Board as from time to time in effect and all official rulings and interpretations
thereunder or thereof.

 

“Regulation
X” shall mean Regulation X of the Board as from time to time in effect and all official rulings and interpretations
thereunder or thereof.

 

“Reimbursement
Date” shall have the meaning assigned to such term in Section 2.05(b)(i).

 

“Related Fund”
shall mean, with respect to any Lender, any Person (other than a natural person) that is engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities and is administered,
advised or managed by (i) such Lender, (ii) an Affiliate of such Lender or (iii) an entity or an Affiliate of an
entity that administers, advises or manages such Lender.

 

“Related Parties”
shall mean, with respect to any specified Person, such Person’s Affiliates and the respective directors, trustees, officers,
employees, agents and advisors of such Person and such Person’s Affiliates; provided that, with respect to any Issuing Bank,
 “Related Parties” shall include its branches and its correspondent and advising banks.

 

“Release”
shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing, depositing, emanating or migrating in, into, onto or through the environment. “Released” shall have a meaning
correlative thereto.

 

“Relevant
Governmental Body” shall mean the Federal Reserve Board or the NYFRB, or a committee officially endorsed or convened
by the Federal Reserve Board or the NYFRB or any successor thereto.

 

“Rent and
Charges Reserve” shall mean the aggregate of (a) all past due rent and other amounts due and owing by a Loan Party
to any landlord, warehouseman, processor, repairman, mechanic, shipper, freight forwarder, broker or other Person who possesses
any Eligible Inventory and could legally assert a Lien on any Inventory; and (b) a reserve at least equal to two months’
rent and other periodic charges that would reasonably be expected to be payable to any such Person, unless it has executed a Lien
Waiver, in each case, excluding any amounts being disputed in good faith; provided, that clause (b) shall only
apply to locations in jurisdictions that are landlord lien priming jurisdictions.

 

    49

     

    

 

“Rent Expense”
shall mean, for any period, the consolidated rent expense of the Borrower and its Subsidiaries, as determined in accordance with
GAAP.

 

“Reorganization”
shall mean, with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

 

“Report”
shall mean reports prepared by the Administrative Agent or another Person showing the results of appraisals, field examinations
or audits pertaining to the assets of the Loan Parties from information furnished by or on behalf of the Borrower, after the Administrative
Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the
Administrative Agent.

 

“Reportable
Event” shall mean any reportable event as defined in Section 4043(c) of ERISA or the regulations issued thereunder
with respect to a Plan (other than a Plan maintained by an ERISA Affiliate that is considered an ERISA Affiliate only pursuant
to subsection (m) or (o) of Section 414 of the Code), other than those events as to which the thirty (30)-day
notice period referred to in Section 4043(c) of ERISA has been waived.

 

“Required
Lenders” shall mean, at any time, the Lenders holding more than 50% of the aggregate amount of Revolver Commitments and
Aggregate Revolving Exposure outstanding at any time; provided, however the Revolver Commitments and Revolving Exposure
of any Defaulting Lender shall be excluded from such calculation; provided further, that if the number of Lenders, excluding
Defaulting Lenders, is greater than one (1) Lender (including any Lender’s Affiliates as one (1) Person for this
purpose), Required Lenders must include at least two (2) unaffiliated Lenders.

 

“Resolution
Authority” shall mean an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

 

“Responsible
Officer” of any Person shall mean any executive officer or Financial Officer of such Person and any other officer or
similar official thereof responsible for the administration of the obligations of such Person in respect of this Agreement.

 

“Restricted
Action” shall have the meaning assigned to such term in the definition of “Pro Forma Basis.”

 

“Restricted
Debt Payment” shall have the meaning assigned to such term in Section 6.09(b).

 

“Restricted
Payment” shall have the meaning assigned to such term in Section 6.06.

 

“Reuters”
shall mean, as applicable, Thomson Reuters Corp, Refinitiv, or any successor thereto.

 

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“Revolver
Commitment” shall mean for any Lender, its obligation to make Revolver Loans and to participate in LC Obligations, Overadvance
Loans and Protective Advances up to the maximum principal amount shown on Schedule 2.01, as hereafter modified pursuant
to an Assignment and Acceptance to which it is a party. “Revolver Commitments” shall mean the aggregate amount
of such commitments of all Lenders.

 

“Revolver
Commitment Increase” shall have the meaning assigned to such term in Section 2.22(a).

 

“Revolver
Commitment Increase Notice” shall have the meaning assigned to such term in Section 2.22(b).

 

“Revolver
Loans” shall mean a loan made pursuant to Section 2.01.

 

“Revolver
Termination Date” shall mean December 31, 2023.

 

“Revolving
Exposure” means, with respect to any Lender at any time, the sum of (a) the outstanding principal amount of such
Lender’s Revolver Loans and its LC Exposure at such time, plus (b) an amount equal to its Pro Rata share
of the aggregate principal amount of Protective Advances outstanding at such time, plus (c) an amount equal
to its Pro Rata share of the aggregate principal amount of Overadvances outstanding at such time.

 

“Revolving
Facility Percentage” shall mean, with respect to any Lender, the percentage of the total Revolver Commitments represented
by such Lender’s Revolver Commitment. If the Revolver Commitments have terminated or expired, the Revolving Facility Percentages
shall be determined based upon the Revolver Commitments most recently in effect, giving effect to any assignments pursuant to Section 9.04.

 

“Rights Offerings”
shall have the meaning assigned to such term in the Plan of Reorganization.

 

“S&P”
shall mean Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

 

“Sale and
Lease-Back Transaction” shall have the meaning assigned to such term in Section 6.03.

 

“Sale Leaseback”
shall have the meaning assigned to such term in the Plan of Reorganization.

 

“Sanctioned
Country” shall mean, at any time, a country, region or territory which is itself the subject or target of any Sanctions
(at the time of this Agreement, Crimea, Cuba, Iran, North Korea, and Syria).

 

“Sanctioned
Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained
by OFAC, the U.S. Department of State, the or by the United Nations Security Council, (b) any Person operating, organized
or resident in a Sanctioned Country, (c) any Person directly or indirectly owned or controlled (individually or in the aggregate)
by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise
the subject, or target, of any Sanctions.

 

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“Sanctions”
shall mean individually and collectively, respectively, any and all economic sanctions, trade sanctions, financial sanctions, sectoral
sanctions, secondary sanctions, trade embargoes anti-terrorism laws and other sanctions laws, regulations or embargoes, including
those imposed, administered or enforced from time to time by:  (a) the United States of America, including those administered
by OFAC, the U.S. Department of State, the U.S. Department of Commerce, or through any existing or future executive order, (b) the
United Nations Security Council, (c) the European Union or any European Union member state, (d) Her Majesty’s Treasury
of the United Kingdom, or (e) any other Governmental Authority with jurisdiction over any Loan Party or any of their respective
Subsidiaries or Affiliates.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto.

 

“Secured Bank
Product Obligations” shall mean Bank Product Obligations, including, without limitation, the Bank Product Obligations
set forth in Schedule 1.01(a) as of the date hereof, owing to a Secured Bank Product Provider, up to the maximum
amount (in the case of any Secured Bank Product Provider other than J.P. Morgan and its Affiliates so long as J.P. Morgan
is the Administrative Agent) reasonably specified by such provider in writing to the Administrative Agent, which amount may be
established or increased (by further written notice to the Administrative Agent from time to time in accordance with Section 2.23)
as long as no Default or Event of Default exists.

 

“Secured Bank
Product Provider” shall mean (a) J.P. Morgan or any of its Affiliates; and (b) any other Lender or Affiliate
of a Lender that is providing and any Person that was a Lender or an Affiliate or a Lender at the time it provided a Bank Product
(provided such provider delivers written notice to the Administrative Agent in accordance with Section 2.23
and otherwise in form and substance reasonably satisfactory to the Administrative Agent, which has been countersigned by the Borrower
to designate such Bank Product as a Secured Bank Product Obligation, (i) describing the Bank Product and setting forth the
maximum amount to be secured by the Collateral and the methodology to be used in calculating such amount, and (ii) agreeing
to be bound by Section 8.12).

 

“Secured Obligations”
shall mean the Obligations, the Secured Swap Obligations and the Secured Bank Product Obligations.

 

“Secured Parties”
shall mean (a) the Administrative Agent, (b) the Lenders, (c) each Issuing Bank, (d) each Secured Bank Product
Provider, to the extent the Bank Product Obligations in respect thereof constitute Secured Obligations, (e) each Secured Swap
Provider, to the extent the Swap Agreement Obligations in respect thereof constitute Secured Obligations and (f) the successors
and assigns of each of the foregoing.

 

“Secured Swap
Obligations” shall mean Swap Agreement Obligations owing to a Secured Swap Provider, up to the maximum amount (in the
case of any Secured Swap Provider other than J.P. Morgan and its Affiliates so long as J.P. Morgan is the Administrative
Agent) reasonably specified by such provider in writing to the Administrative Agent, which amount may be established or increased
(by further written notice to the Administrative Agent from time to time in accordance with Section 2.23) as long as
no Default or Event of Default exists.

 

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“Secured Swap
Provider” shall mean (a) J.P. Morgan or any of its Affiliates; and (b) any other Lender or Affiliate of
a Lender that is providing and any Person that was a Lender or an Affiliate or a Lender at the time it provided a Swap Agreement
to a Loan Party (provided such provider delivers written notice to the Administrative Agent in accordance with Section 2.23
and otherwise in form and substance reasonably satisfactory to the Administrative Agent, which has been countersigned by the Borrower
to designate such Swap Agreement as a Secured Swap Obligation, (i) describing the Swap Agreement and setting forth the maximum
amount to be secured by the Collateral and the methodology to be used in calculating such amount, and (ii) agreeing to be
bound by Section 8.12).

 

“Securities
Act” shall mean the Securities Act of 1933.

 

“Security
Documents” shall mean the Mortgages, the Collateral Agreement and any other agreements, instruments and documents executed
in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including,
without limitation, all other security agreements, pledge agreements, mortgages, deeds of trust, and Control Agreements now or
hereafter executed by any Loan Party and delivered to the Administrative Agent.

 

“Shrink”
shall mean Inventory which has been lost, misplaced, stolen, or is otherwise unaccounted for.

 

“SOFR”
shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business
Day published by the SOFR Administrator on the SOFR Administrator’s Website at approximately 8:00 a.m. (New York City
time) on the immediately succeeding Business Day.

 

“SOFR Administrator”
shall mean the NYFRB (or a successor administrator of the secured overnight financing rate).

 

“SOFR Administrator’s
Website” shall mean the NYFRB’s Website, currently at http://www.newyorkfed.org, or any successor source for the
secured overnight financing rate identified as such by the SOFR Administrator from time to time.

 

“Specified
Bank Products” shall mean the Bank Products set forth on Part I of Schedule 1.01(a) as of the date hereof.

 

“Specified
Event of Default” shall mean any Event of Default arising under Section 7.01(a) (solely relating to
a material misrepresentation contained in any Borrowing Base Certificate), (b), (c), (d) (solely relating
to a failure to comply with Section 5.12(c) or (d) or 6.10), (h), (i), (e)(i),
(e)(ii) (solely relating to a failure to comply with Section 5.04(a) or (b)) or (m).

 

“Spring-Out
Date” shall mean the first date following the first anniversary of the Closing Date on which Availability was at all
times over the sixty (60) consecutive days prior to such date in excess of the greater of (a) $25.0 million and (b) 25%
of the Line Cap.

 

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“Stated Amount”
shall mean at any time the maximum amount for which a Letter of Credit may be honored as provided in Section 1.10.

 

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

 

“Subordinated
Indebtedness” shall mean any unsecured Indebtedness of the Borrower or any Subsidiary that is expressly subordinated
in right of payment to the Obligations on terms reasonably satisfactory to the Administrative Agent.

 

“Subordinated
Intercompany Debt” shall have the meaning assigned to such term in Section 6.01(d).

 

“Subsidiary”
shall mean any direct or indirect subsidiary of the Borrower or a Loan Party, as applicable.

 

“subsidiary”
shall mean, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation,
limited liability company, partnership, association or other entity of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, by the parent and/or one or more subsidiaries of
the parent.

 

“Subsidiary
Guarantor” shall mean each Loan Party other than Holdings and the Borrower.

 

“Supermajority
Lenders” shall mean the Lenders holding more than 662⁄3% of the aggregate amount of Revolver Commitments and the
Aggregate Revolving Exposure outstanding at any time; provided, however that (i) the Revolver Commitments and
Revolving Exposure of any Defaulting Lender shall be excluded from such calculation and (ii) if the number of Lenders, excluding
Defaulting Lenders, is greater than or equal to three (3) Lenders (including any Lender’s Affiliates as one (1) Person
for this purpose), Supermajority Lenders must include at least three (3) unaffiliated Lenders.

 

“Supported
QFC” has the meaning assigned to it in Section 9.21.

 

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“Swap Agreement”
shall mean any agreement, contract, or transaction that constitutes a “swap” within the meaning of section 1a(47)
of the Commodity Exchange Act and any agreement with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one (1) or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value
or any similar transaction or any combination of these transactions, provided that no phantom stock or other employee benefit
plan providing for payments only on account of services provided by current or former directors, officers, employees, members
of management or consultants of Holdings, the Borrower or any of their Subsidiaries shall be a Swap Agreement.

 

“Swap Agreement
Obligations” means any and all obligations of the Loan Parties and their Subsidiaries, whether absolute or contingent
and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof
and substitutions therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a
Lender, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction
permitted hereunder with a Lender or an Affiliate of a Lender.

 

“Swap Obligation”
shall mean, with respect to any Person, any obligation to pay or perform under any agreement, contract or transaction that constitutes
a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated
thereunder.

 

“Swap Obligations
Reserve” shall mean the aggregate amount of reserves established by the Administrative Agent from time to time in its
Permitted Discretion in respect of Secured Swap Obligations, which shall in any event include the maximum amount of all Noticed
Swap Agreements in respect of Swap Agreement Obligations.

 

“Syndication
Agents” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

 

“Tax and
Trust Funds” means cash, cash equivalents or other assets comprised solely of (a) funds used for payroll and payroll
taxes and other employee benefit payments to or for the benefit of such Loan Party’s employees in the current period (which
may be monthly or quarterly, as applicable), (b) all taxes required to be collected, remitted or withheld in the current
period (which may be monthly or quarterly, as applicable) (including, without limitation, federal and state withholding taxes
(including the employer’s share thereof)) and (c) any other funds which any Loan Party holds in trust or as an escrow
or fiduciary for another person (which is not an Affiliate of a Loan Party) in the ordinary course of business and in connection
with a transaction or arrangement not prohibited under this Agreement.

 

“Tax Distributions”
shall have the meaning assigned to such term in Section 6.06(d).

 

“Taxes”
shall mean any and all present or future taxes, levies, imposts, duties (including stamp duties), deductions, charges (including
ad valorem charges), assessments, fees or withholdings imposed by any Governmental Authority and any and all interest and
penalties related thereto.

 

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“Term Loan
Agent” shall mean Alter Domus (US) LLC, in its capacity as “Administrative Agent” under the Term Loan Agreement
and the other Term Loan Documents, together with its successors and permitted assigns.

 

“Term Loan
Agreement” shall mean that certain Credit Agreement dated as of the Closing Date, by and among the Borrower, the Guarantors,
the lenders party thereto and the Collateral Agent, as the same may be amended, restated, amended and restated, supplemented or
otherwise modified from time to time to the extent permitted under the Intercreditor Agreement.

 

“Term Loan
Documents” shall mean the “Loan Documents” as defined in the Term Loan Agreement.

 

“Term Loan
Lenders” shall mean the “Lenders” under and as defined in the Term Loan Agreement.

 

“Term Loan
Obligations” shall mean all obligations of the Loan Parties, which are incurred or owing under the Term Loan Documents,
including all obligations in respect of the payment of principal, interest, fees, prepayment premiums and indemnification obligations,
and obligations in respect of any refinancing of such Indebtedness permitted under this Agreement and under the Intercreditor
Agreement; provided that such Indebtedness is subject to the Intercreditor Agreement.

 

“Term Loan
Priority Collateral” shall have the meaning assigned such term in the Intercreditor Agreement.

 

“Term Loan
Priority Collateral Account” shall mean a Deposit Account subject to the sole dominion and control of the Term Loan
Agent which holds solely identifiable proceeds of Term Loan Priority Collateral pending reinvestment or the application thereof
to the Term Loan Obligations in accordance with the Term Loan Documents and the Intercreditor Agreement.

 

“Term Loan
Secured Parties” shall mean the Term Loan Agent and the Term Loan Lenders.

 

“Term Loans”
shall mean those Term Loans borrowed by the Borrower pursuant to the Term Loan Agreement in the original aggregate principal amount
of $25.0 million.

 

“Term SOFR”
shall mean, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on
SOFR that has been selected or recommended by the Relevant Governmental Body.

 

“Term SOFR
Notice” shall mean a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a
Term SOFR Transition Event.

 

“Term SOFR
Transition Event” shall mean the determination by the Administrative Agent that (a) Term SOFR has been recommended
for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative
Agent and (c) a Benchmark Transition Event or an Early Opt-in Election, as applicable, has previously occurred resulting
in a Benchmark Replacement in accordance with Section 2.14 that is not Term SOFR.

 

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“Title Insurance
Policy” shall mean a mortgagee’s loan policy, in form and substance reasonably satisfactory to the Administrative
Agent, together with all endorsements reasonably requested by the Administrative Agent, issued by or on behalf of a title insurance
company reasonably satisfactory to the Administrative Agent, insuring the Lien created by a Mortgage in an amount and on terms
reasonably satisfactory to the Administrative Agent, delivered to the Administrative Agent.

 

“Transaction
Costs” shall mean fees and expenses payable or otherwise borne by Holdings, any other Parent Entity, the Borrower and
its Subsidiaries in connection with the Transactions occurring on or about the Closing Date.

 

“Transactions”
shall mean, collectively, the transactions to occur pursuant to the Loan Documents, including (a) the execution and delivery
of the Loan Documents and the initial borrowings hereunder, (b) the execution and delivery of the Term Loan Documents and
the initial borrowings thereunder and (c) the repayment of the Existing Debt.

 

“Type,”
when used in respect of any Loan or Borrowing, shall refer to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, the term “Rate” shall include the Adjusted LIBO Rate
and the CBFR.

 

“UK Financial
Institutions” shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time
to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA
Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain
credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

 

“UK Resolution
Authority” shall mean the Bank of England or any other public administrative authority having responsibility for the
resolution of any UK Financial Institution.

 

“Unadjusted
Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

 

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

 

“Uniform
Customs” shall have the meaning assigned to such term in Section 9.07.

 

“Unused Line
Fee” shall have the meaning assigned to such term in Section 2.12(b).

 

“Unused Line
Fee Rate” shall mean 0.50% per annum, calculated based upon the actual number of days elapsed over a 360-day.

 

“U.S. Person”
shall mean any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

 

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“U.S. Special
Resolution Regimes” shall have the meaning assigned to such term in Section 9.21.

 

“U.S. Tax
Compliance Certificate” shall have the meaning assigned to such term in Section 2.17(e)(i)(B)(3).

 

“USA PATRIOT
Act” shall mean The Uniting and Strengthening America by Providing Adequate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (Title III of Pub. L. No. 107 56 (signed into law October 26, 2001)).

 

“Weighted
Average Life to Maturity” shall mean, when applied to any Indebtedness at any date, the number of years obtained by
dividing: (a) the sum of the product obtained by multiplying (i) the amount of each then remaining installment, sinking
fund, serial maturity or other required payments of principal, including a payment at final maturity, in respect thereof, by (ii) the
number of years (calculated to the nearest one-twelfth that will elapse between such date and the making of such payment); by
(b) the outstanding principal amount of such Indebtedness.

 

“WF Concentration
Account” shall mean the Borrower’s Main Concentration Account No.: xxxxxx5063 held at Wells Fargo Bank, National
Association or any successor Deposit Account approved by the Administrative Agent.

 

“WF Factored
Receivables” shall mean any Accounts originally owed or owing by a Loan Party to another Person which have been purchased
by or factored with Wells Fargo Bank, National Association or any of its Affiliates pursuant to a factoring arrangement or otherwise
with the Person that sold the goods or rendered the services to the Loan Party which gave rise to such Account.

 

“WF Factoring
Arrangement” shall mean the services and products provided to Borrower by Wells Fargo Bank, National Association (“WF”)
and one or more of its Affiliates, with respect to or in connection with WF Factored Receivables, in the maximum amount set forth
in the applicable notice delivered to the Administrative Agent pursuant to Section 2.23 by WF, as the Secured Bank
Product Provider, and Borrower.

 

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

 

“Write-Down
and Conversion Powers” shall mean, (a) with respect to any EEA Resolution Authority, the write-down and conversion
powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country,
which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the
United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change
the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert
all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such
contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of
that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

 

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Section 1.02     Terms
Generally.

 

(a)      The
definitions set forth or referred to in Section 1.01 shall apply equally to both the singular and plural forms of
the terms defined. The words “herein,” “hereto,” “hereof” and “hereunder” and
words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular
provision thereof. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter
forms. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” All references herein to Articles, Sections, Exhibits and Schedules shall be deemed references
to Articles and Sections of, and Exhibits and Schedules to, the Loan Documents in which the reference appears unless the context
shall otherwise require.

 

(b)      Except
as otherwise expressly provided herein, any reference in this Agreement to any Loan Document or other document, agreement or instrument
(including any by-laws, limited partnership agreement, limited liability company agreement, articles of incorporation, certificate
of limited partnership or certificate of formation, as the case may be) shall mean such Loan Document, agreement or instrument
as amended, restated, amended and restated, supplemented, otherwise modified, replaced, renewed, extended or refinanced from time
to time and any reference in this Agreement to any Person shall include a reference to such Person’s permitted assigns and
successors-in-interest.

 

Section 1.03     Accounting
Terms.

 

(a)      Except
as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests
an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the
application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required
Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before
or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith; provided further that if an amendment is requested by the Borrower or the Required
Lenders, then the Borrower and the Administrative Agent shall negotiate in good faith to enter into an amendment of such affected
provisions (without the payment of any amendment or similar fees to the Lenders) to preserve the original intent thereof in light
of such change in GAAP or the application thereof subject to the approval of the Required Lenders (not to be unreasonably withheld,
conditioned or delayed); provided further that all terms of an accounting or financial nature used herein shall be construed,
and all computations of amounts and ratios referred to herein shall be made without giving effect to (i) any election under
Accounting Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards 159) (or any
other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness
or other liabilities of the Borrower or any Subsidiary at “fair value,” as defined therein and (ii) any treatment
of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting
Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a
reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal
amount thereof.

 

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(b)     Notwithstanding
anything to the contrary contained in paragraph (a) above or the definition of Capital Lease Obligations, in
the event of an accounting change requiring all leases to be capitalized, only those leases (assuming for purposes hereof that
they were in existence on the date hereof) that would constitute Capital Lease Obligations on the date hereof shall be considered
Capital Lease Obligations and all calculations and deliverables under this Agreement or any other Loan Document shall be made
in accordance therewith (provided that all financial statements delivered to the Administrative Agent in accordance with
the terms of this Agreement after the date of such accounting change shall contain a schedule showing the adjustments necessary
to reconcile such financial statements with GAAP as in effect immediately prior to such accounting change). Notwithstanding anything
to the contrary, for all purposes under this Agreement (other than for purposes of Sections 5.04(a), (b) or
(c)) and the other Loan Documents, including negative covenants, financial covenants and component definitions, GAAP will
be deemed to treat operating leases and Capital Lease Obligations in a manner consistent with their treatment under GAAP as in
effect on December 31, 2018, notwithstanding any modifications or interpretive changes thereto that may occur thereafter.

 

Section 1.04     Rounding.
Except as otherwise expressly provided herein, any financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one (1) place
more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number
(with a rounding up if there is no nearest number).

 

Section 1.05     Timing
of Payment or Performance. When the payment of any obligation or the performance of any covenant, duty or obligation
is stated to be due or performance required on a day which is not a Business Day (other than as described in the definition of
CBFR, NYFRB Rate or Interest Period), the date of such payment or performance shall extend to the immediately succeeding Business
Day and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

Section 1.06     Classification;
Payment Conditions.

 

(a)     For
purposes of determining compliance at any time with Sections 6.01, 6.02, 6.04, 6.05, 6.06,
6.07 and 6.09, in the event that any Lien, Investment, Indebtedness, Disposition, Restricted Payment,
affiliate transaction, contractual restriction or prepayment of Indebtedness meets the criteria of more than one (1) of the
categories of transactions or items permitted pursuant to any clause of such Sections 6.01, 6.02, 6.04, 6.05,
6.06, 6.07 and 6.09, the Borrower, in its sole discretion, may classify or reclassify such transaction or
item (or portion thereof) and will only be required to include the amount and type of such transaction (or portion thereof) in
any one (1) category; provided that such transaction or item (or any portion thereof) may not be reclassified into
Section 6.01(g), 6.04(r), 6.05(h), 6.06(h), 6.09(b) or 6.09(d).

 

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(b)     Not
less than three (3) Business Days prior and not more than five (5) Business Days prior to the consummation of any Permitted
Business Acquisition, Investment pursuant to Section 6.04(r), Disposition pursuant to Section 6.05(h),
Restricted Payment pursuant to Section 6.06(h) or Restricted Debt Payment pursuant to Section 6.09(b) or
Section 6.09(d), the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying that
as of the date of the applicable Permitted Business Acquisition, Investment, Disposition, Restricted Payment or Restricted
Debt Payment, as applicable, the Payment Conditions will be satisfied on a pro forma basis after giving effect to such transaction
together with reasonably detailed calculations of Availability.

 

Section 1.07     References
to Laws. Unless otherwise expressly provided herein, references to any law shall include all statutory and regulatory
provisions consolidating, amending, replacing, supplementing or interpreting such law.

 

Section 1.08     Pro Forma.
Notwithstanding anything to the contrary contained herein, financial ratios and tests (including the Consolidated Fixed Charge
Coverage Ratio) pursuant to this Agreement shall be calculated in the manner prescribed by the definition of “Pro Forma
Basis.”

 

Section 1.09     Interest
Rates; LIBOR Notification. The interest rate on Eurodollar Loans is determined by reference to the LIBO Rate, which
is derived from the London interbank offered rate. The London interbank offered rate is intended to represent the rate at which
contributing banks may obtain short-term borrowings from each other in the London interbank market. In July 2017, the U.K.
Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to
make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the
 “IBA”) for purposes of the IBA setting the London interbank offered rate. As a result, it is possible that
commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference
rate upon which to determine the interest rate on Eurodollar Loans. In light of this eventuality, public and private sector industry
initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank
offered rate. Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, Sections
2.14(c) and (d)  provide the mechanism for determining an alternative rate of interest. The Administrative
Agent will promptly notify the Borrower, pursuant to Section 2.14(f) of any change to the reference rate upon
which the interest rate on Eurodollar Loans is based. However, the Administrative Agent does not warrant or accept any responsibility
for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London
interbank offered rate or other rates in the definition of “LIBO Rate” or with respect to any alternative or successor
rate thereto, or replacement rate thereof (including, without limitation, (a) any such alternative, successor or replacement
rate implemented pursuant to Section 2.14(c) or (d), whether upon the occurrence of a Benchmark Transition
Event, a Term SOFR Transition Event or an Early Opt-in Election, and (b) the implementation of any Benchmark Replacement
Conforming Changes pursuant to Section 2.14(e)), including without limitation, whether the composition or characteristics
of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence
of, the LIBO Rate or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or
unavailability.

 

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Section 1.10     Letters
of Credit. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the
amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit
that, by its terms or the terms of any letter of credit agreement related thereto, provides for one or more automatic increases
in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such Letter of
Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time. For
all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may
still be drawn thereunder by reason of the operation of Article 29(a) of the Uniform Customs and Practice for Documentary
Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at
the applicable time) or Rule 3.13 or Rule 3.14 of the International Standby Practices, International Chamber of
Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time) or similar terms
of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall
be deemed to be “outstanding” and “undrawn” in the amount so remaining available to be paid, and the obligations
of the Borrower and each Lender shall remain in full force and effect until the Issuing Banks and the Lenders shall have no further
obligations to make any payments or disbursements under any circumstances with respect to any Letter of Credit.

 

Section 1.11     Divisions.
For all purposes under the Loan Documents, in connection with any Division or plan of division under Delaware law (or any comparable
event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes
the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original
Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have
been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.

 

ARTICLE II

 

The Credits

 

Section 2.01     Revolver
Commitments. Each Lender agrees, severally on a Pro Rata basis up to its Revolver Commitment, on the terms set forth
herein, to make Revolver Loans to the Borrower from time to time from and after the Closing Date through the Commitment Revolver
Termination Date. The Revolver Loans may be repaid and reborrowed as provided herein. In no event shall the Lenders have any obligation
to honor a request for a Revolver Loan if the Aggregate Revolving Exposure outstanding at such time (including the requested Revolver
Loan) would exceed the Line Cap.

 

Section 2.02     Loans
and Borrowings.

 

(a)     All
Loans shall be made by the Lenders ratably in accordance with their respective Revolver Commitments. The failure of any Lender
to make any Revolver Loan required to be made by it shall not relieve any other Lender of its obligations hereunder.

 

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(b)     Subject
to Section 2.14, each Borrowing shall be (i) comprised entirely of CBFR Loans or Eurodollar Loans as the Borrower
may request in accordance herewith and (ii) (x) in the case of Eurodollar Loans, in a minimum amount of $1,000,000,
or an increment of $100,000 in excess thereof or (y) in the case of CBFR Loans, no minimum amount or predetermined increment
shall apply. Each Lender at its option may make any CBFR Loan or Eurodollar Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Revolver Loan; provided that, any exercise of such option shall not affect the obligation
of the Borrower to repay such Revolver Loan in accordance with the terms of this Agreement and such Lender shall not be entitled
to any amounts payable under Section 2.15 or 2.17 solely in respect of increased costs resulting from such
exercise and existing at the time of such exercise.

 

(c)     Borrowings
of more than one Type may be outstanding at the same time; provided that, without the consent of the Administrative Agent,
there shall not at any time be more than a total of ten (10) Eurodollar Borrowings outstanding.

 

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

 

Section 2.03     Requests
for Borrowings and Notices.

 

(a)     To
request a Borrowing of Revolver Loans, the Borrower shall notify the Administrative Agent of such request either by telephone,
in writing (delivered by hand or fax) by delivering a Borrowing Request signed by the Borrower or through Electronic System if
arrangements for doing so have been approved by the Administrative Agent (a) in the case of a Eurodollar Borrowing, not later
than 12:00 p.m., Local Time, three (3) Business Days before the date of the proposed Borrowing or (b) in the case
of a CBFR Borrowing, not later than 12:00 p.m., Local Time, on the date of the proposed Borrowing. Each such Borrowing Request
shall be irrevocable and each such telephonic Borrowing Request shall be confirmed promptly by hand delivery, fax or a communication
through Electronic System to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative
Agent and signed by the Borrower. Each such written or telephonic Borrowing Request shall specify the following information in
compliance with Section 2.02:

 

  (i)             the
aggregate amount of the requested Borrowing;

 

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

 

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

 

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

 

  (v)            the
location and number of the Borrower’s account to which funds are to be disbursed.

 

If no election as to
the Type of Borrowing is specified, then the requested Borrowing shall be a CBFR Borrowing. If no Interest Period is specified
with respect to a requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected a Eurodollar Borrowing with
an Interest Period of one (1) month’s duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s
Revolver Loan to be made as part of the requested Borrowing.

 

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Section 2.04     [Reserved].

 

Section 2.05     Letters
of Credit.

 

(a)      Issuance
of Letters of Credit. At any time on or after the Closing Date the Borrower may request any Issuing Bank, which request shall
be irrevocable unless otherwise agreed by such Issuing Bank, to issue Letters of Credit denominated in Dollars as the applicant
thereof for the support of it or its Subsidiaries’ obligations from time to time until 30 days prior to the Revolver
Termination Date (or until the Commitment Revolver Termination Date, if earlier), on the terms and subject to the conditions set
forth herein, including the following:

 

(i)            The
Borrower acknowledges that any Issuing Bank’s issuance of any Letter of Credit is conditioned upon such Issuing Bank’s
receipt of a LC Application with respect to the requested Letter of Credit, as well as such other instruments and agreements as
such Issuing Bank may customarily require for issuance of a letter of credit of similar type and amount. No Issuing Bank shall
have any obligation to issue any Letter of Credit unless (i) such Issuing Bank receives a LC Request and LC Application at
least 3 Business Days (or shorter period of time as may be agreed by the Administrative Agent and the applicable Issuing Bank
in their reasonable discretion) prior to the requested date of issuance; and (ii) each LC Condition is satisfied. If, in
sufficient time to act, the applicable Issuing Bank receives written notice from Required Lenders that a LC Condition has not
been satisfied, such Issuing Bank shall not issue the requested Letter of Credit. Prior to receipt of any such notice, the applicable
Issuing Bank shall not be deemed to have knowledge of any failure of the LC Conditions to be satisfied. In the event that a reallocation
of the Fronting Exposure with respect to LC Obligations of a Defaulting Lender pursuant to Section 2.21(a) does
not fully cover the Fronting Exposure with respect to LC Obligations of such Defaulting Lender and such Defaulting Lender has
not Cash Collateralized its obligations or otherwise made arrangements reasonably satisfactory to the applicable Issuing Bank,
the applicable Issuing Bank may require the Borrower to Cash Collateralize such remaining Fronting Exposure in respect of each
outstanding Letter of Credit and will have no obligation to issue new Letters of Credit, or to extend, renew or amend existing
Letters of Credit to the extent the Fronting Exposure with respect to LC Obligations would exceed the commitments of the non-Defaulting
Lenders, unless such remaining Fronting Exposure with respect to LC Obligations is Cash Collateralized. In addition, an Issuing
Bank shall not be under any obligation to issue any Letter of Credit if:

 

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(A)      any
order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing
Bank from issuing such Letter of Credit, or any requirement of law relating to such Issuing Bank or any request or directive (whether
or not having the force of law) from any Governmental Authority with jurisdiction over such Issuing Bank shall prohibit, or request
that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall
impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which
such Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such Issuing
Bank any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which such Issuing Bank in good faith
deems material to it, or

 

(B)      the
issuance of such Letter of Credit would violate one or more policies of such Issuing Bank applicable to letters of credit generally.

 

(ii)           Letters
of Credit may be requested by the Borrower to support obligations incurred in the ordinary course of business, to backstop or
replace Existing Letters of Credit through the issuance of new Letters of Credit for the account of the issuers of such Existing
Letters of Credit (including, by “grandfathering” such Existing Letters of Credit in this Agreement which shall, for
the avoidance of doubt, be deemed issued pursuant to this Agreement), for any purpose permitted under this Agreement and the other
Loan Documents or as otherwise approved by the Administrative Agent. The amendment, renewal or extension of any Letter of Credit
shall be treated as the issuance of a new Letter of Credit, except that delivery of a new LC Application may be required or waived
at the discretion of the applicable Issuing Bank.

 

(iii)          The
Borrower assumes all risks of, and none of the Administrative Agent, any Issuing Bank or any Lender shall have any liability for,
the acts, omissions or misuses of any Letter of Credit by the beneficiary. In connection with issuance of any Letter of Credit,
none of the Administrative Agent, any Issuing Bank or any Lender shall be responsible for the existence, character, quality, quantity,
condition, packing, value or delivery of any goods purported to be represented by any LC Documents; any differences or variation
in the character, quality, quantity, condition, packing, value or delivery of any goods from that expressed in any LC Documents;
the form, validity, sufficiency, accuracy, genuineness or legal effect of any LC Documents or of any endorsements thereon; the
time, place, manner or order in which shipment of goods is made; partial or incomplete shipment of, or failure to ship, any goods
referred to in a Letter of Credit or LC Documents; any deviation from instructions, delay, default or fraud by any shipper or
other Person in connection with any goods, shipment or delivery; any breach of contract between a shipper or vendor and the Borrower;
errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex, telecopy,
e-mail, telephone or otherwise; errors in interpretation of technical terms; the misapplication by a beneficiary of any Letter
of Credit or the proceeds thereof; or any consequences arising from causes beyond the control of the Issuing Banks, the Administrative
Agent or any Lender, including any act or omission of a Governmental Authority. The Issuing Banks shall be fully subrogated to
the rights and remedies of each beneficiary whose claims against the Borrower is discharged with proceeds of any Letter of Credit.

 

(iv)          In
connection with its administration of and enforcement of rights or remedies under any Letters of Credit or LC Documents, each
Issuing Bank shall be entitled to act, and shall be fully protected in acting, upon any certification, documentation or communication
in whatever form believed by such Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or made
by a proper Person. Each Issuing Bank may consult with and employ legal counsel, accountants and other experts to advise it concerning
its obligations, rights and remedies, and shall be entitled to act upon, and shall be fully protected in any action taken in good
faith reliance upon, any advice given by such experts. The Issuing Banks may employ agents and attorneys-in-fact in connection
with any matter relating to Letters of Credit or LC Documents.

 

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(v)            Notwithstanding
anything to the contrary in this Section 2.05(a), the foregoing shall not be construed to excuse any Issuing Bank
from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages) suffered by the Borrower
that are caused by such Issuing Bank’s failure to exercise reasonable care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof, that are found by a final and nonappealable decision of a court
of competent jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of the applicable Issuing
Bank.

 

(vi)           For
the avoidance of doubt, (a) no LC Documents shall (i) contain any representations and warranties, covenants or events
of default not set forth in this Agreement and any representations and warranties, covenants and events of default shall be subject
to the same qualifiers, exceptions and exclusions as those set forth in this Agreement or (ii) provide for any collateral
security or Liens and (b) to the extent any of the foregoing provisions are contained therein and not contained herein, then
such provisions shall be rendered null and void and any such qualifiers, exceptions and exclusions contained herein shall be deemed
incorporated therein, mutatis mutandis.

 

(b)           Reimbursement;
Participations.

 

(i)             If
any Issuing Bank shall make any LC Disbursement under a Letter of Credit, the Borrower shall pay to such Issuing Bank, by 1:00 p.m. (Local
Time) (or such later time as the Administrative Agent may agree) within one Business Day following receipt by the Borrower of
notice from the relevant Issuing Bank (“Reimbursement Date”), the amount paid by such Issuing Bank under such
Letter of Credit, together with interest at the interest rate for CBFR Loans from the Reimbursement Date until payment by the
Borrower. The obligation of the Borrower to reimburse the applicable Issuing Bank for any LC Disbursement shall be absolute, unconditional,
irrevocable and, subject to Section 2.05(a)(v), shall be paid without regard to any lack of validity or enforceability
of any Letter of Credit or the existence of any claim, setoff, defense or other right that the Borrower may have at any time against
the beneficiary. Unless the Borrower notifies the Administrative Agent that it intends to reimburse the applicable Issuing Bank
for a drawing under a Letter of Credit, whether or not the Borrower submits a Borrowing Request, the Borrower shall be deemed
to have requested a Borrowing of CBFR Loans in an amount necessary to pay all amounts due to the applicable Issuing Bank on any
Reimbursement Date and each Lender agrees to fund its Pro Rata share of such Borrowing whether or not the Revolver Commitments
have terminated, an Overadvance exists or is created thereby, or the conditions in Section 4.02 are satisfied. Upon
the issuance of a Letter of Credit, each Lender shall be deemed to have irrevocably and unconditionally purchased from the applicable
Issuing Bank, without recourse or warranty, an undivided Pro Rata interest and participation in all LC Obligations relating to
the Letter of Credit. If an Issuing Bank makes any LC Disbursement under a Letter of Credit and the Borrower does not reimburse
such LC Disbursement on the Reimbursement Date, the Administrative Agent shall promptly notify the Lenders and each Lender shall
promptly (within one Business Day) and unconditionally pay to the Administrative Agent, for the benefit of the applicable Issuing
Bank, such Lender’s Pro Rata share of such LC Disbursement.

 

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(ii)            The
obligation of each Lender to make payments to the Administrative Agent for the account of an Issuing Bank in connection with such
Issuing Bank’s payment under a Letter of Credit shall be absolute, unconditional and irrevocable, not subject to any counterclaim,
setoff, qualification or exception whatsoever, and shall be made in accordance with this Agreement under all circumstances, irrespective
of: any lack of validity or unenforceability of any Loan Documents; any draft, certificate or other document presented under a
Letter of Credit having been determined to be forged, fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or the existence of any setoff or defense that any Loan Party may have with respect
to any Obligations. No Issuing Bank assumes any responsibility for any failure or delay in performance or any breach by the Borrower
or other Person of any obligations under any LC Documents. The Issuing Banks do not make to the Lenders any express or implied
warranty, representation or guaranty with respect to the Collateral, LC Documents or any Loan Party. No Issuing Bank shall be
responsible to any Lender for: any recitals, statements, information, representations or warranties contained in, or for the execution,
validity, genuineness, effectiveness or enforceability of any LC Documents; the validity, genuineness, enforceability, collectability,
value or sufficiency of any Collateral or the perfection of any Lien therein; or the assets, liabilities, financial condition,
results of operations, business, creditworthiness or legal status of any Loan Party.

 

(iii)           No
Issuing Bank shall be liable to any Lender or other Person for any action taken or omitted to be taken in connection with any
LC Documents except as a result of its actual gross negligence, bad faith or willful misconduct as found in a final and nonappealable
decision of a court of competent jurisdiction. No Issuing Bank shall have any liability to any Lender if such Issuing Bank refrains
from any action under any Letter of Credit or LC Documents until it receives written instructions from Required Lenders.

 

(c)           Cash
Collateral. Except as otherwise provided herein, if any LC Obligations, whether or not then due or payable, shall for any reason
be outstanding at any time (a) that an Event of Default has occurred and is continuing, (b) that Availability is less
than zero, (c) after the Commitment Revolver Termination Date, or (d) within 5 Business Days prior to the Revolver Termination
Date, then the Borrower shall, at the Issuing Banks’ or the Administrative Agent’s request, Cash Collateralize the
Stated Amount of all outstanding Letters of Credit (at 100% in the case of clause (b), and otherwise at 105%) and pay to
the Issuing Banks the amount of all other LC Obligations. If the Borrower fails to provide any Cash Collateral as required hereunder,
the Administrative Agent may (and shall upon direction of Required Lenders) advance, as Revolver Loans, the amount of the Cash
Collateral required (whether or not the Revolver Commitments have terminated, an Overadvance exists or the conditions in Section 4.02
are satisfied).

 

(d)           [Reserved].

 

(e)           Resignation
or Removal of an Issuing Bank. Any Issuing Bank may resign at any time upon at least 30 days’ prior written notice
to the Administrative Agent and the Borrower. Any Issuing Bank may be replaced at any time by written agreement among the Borrower,
the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. On the effective date of such resignation
or replacement, the resigning or replaced Issuing Bank shall have no further obligation to issue, amend, renew, extend or otherwise
modify any Letter of Credit, but shall continue to have all rights and obligations of an Issuing Bank hereunder, including under
Sections 2.05, 8.06, and 9.05, relating to any Letter of Credit issued prior to such date. If after
giving effect to any resignation or removal of an Issuing Bank in accordance with this Section 2.05(e) there
would be no Issuing Bank under this Agreement, the Administrative Agent shall promptly appoint a replacement Issuing Bank, which,
as long as no Event of Default under Sections 7.01(b), (c), (h) (with respect to Holdings and the Borrower
only) and (i) (with respect to Holdings and the Borrower only) has occurred and is continuing, shall be reasonably
acceptable to the Borrower.

 

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(f)      Issuing
Bank Reports to the Administrative Agent. Unless otherwise agreed by the Administrative Agent, each Issuing Bank (other than
J.P. Morgan) shall, in addition to its notification obligations set forth elsewhere in this Section, report in writing to the
Administrative Agent (i) periodic activity (for such period or recurrent periods as shall be requested by the Administrative
Agent) in respect of Letters of Credit issued by such Issuing Bank, including all issuances, extensions, and amendments, all expirations
and cancelations and all disbursements and reimbursements, (ii) reasonably prior to the time that such Issuing Bank issues,
amends or extends any Letter of Credit, the date of such issuance, amendment or extension, and the Stated Amount of the Letters
of Credit issued, amended or extended by it and outstanding after giving effect to such issuance, amendment or extension (and
whether the amounts thereof shall have changed), (iii) on each Business Day on which such Issuing Bank makes any LC Disbursement,
the date and amount of such LC Disbursement, (iv) on any Business Day on which the Borrower fails to reimburse an LC Disbursement
required to be reimbursed to such Issuing Bank on such day, the date of such failure and the amount of such LC Disbursement, and
(v) on any other Business Day, such other information as the Administrative Agent shall reasonably request as to the Letters
of Credit issued by such Issuing Bank.

 

(g)     Letters
of Credit Issued for Account of Subsidiaries. Notwithstanding that a Letter of Credit issued or outstanding hereunder supports
any obligations of, or is for the account of, a Subsidiary, or states that a Subsidiary is the “account party,” “applicant,”
 “customer,” “instructing party,” or the like of or for such Letter of Credit, and without derogating from
any rights of the Issuing Bank (whether arising by contract, at law, in equity or otherwise) against such Subsidiary in respect
of such Letter of Credit, the Borrower (i) shall reimburse, indemnify and compensate the Issuing Bank hereunder for such
Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely for
the account of the Borrower and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a
guarantor or surety of any or all of the obligations of such Subsidiary in respect of such Letter of Credit. The Borrower hereby
acknowledges that the issuance of such Letters of Credit for its Subsidiaries inures to the benefit of the Borrower, and that
the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries. Notwithstanding anything
to the contrary herein, an Issuing Bank shall not be under any obligation to issue any Letter of Credit for the account of a Subsidiary
unless such Issuing Bank has received all documentation and other information with respect to such Subsidiary required by regulatory
authorities under applicable “know your customer” and anti-money laundering rules and regulations, including
without limitation the USA PATRIOT Act.

 

Section 2.06     Funding
of Borrowings.

 

(a)     Each
Lender shall make a Revolver Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available
funds by 1:00 p.m., Local Time, to the account of the Administrative Agent most recently designated by it for such purpose
by notice to the Lenders. The Administrative Agent will make the proceeds of such Revolver Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account designated by the Borrower in the applicable Borrowing
Request.

 

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(b)     Unless
the Administrative Agent shall have received notice from a Lender prior to the date of the Borrowing Request that such Lender
will not make available to the Administrative Agent such Lender’s share of the Borrowing, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and
may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not
in fact made its share of the Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower agrees
to pay to the Administrative Agent (provided, that any such payment by the Borrower to the Administrative Agent is without
prejudice to any claim the Borrower may have against such applicable Lender) forthwith on demand (without duplication) such corresponding
amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding
the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in
the case of the Borrower, the interest rate applicable to CBFR Loans. If such Lender pays such amount to the Administrative Agent,
then such amount shall constitute such Lender’s Revolver Loan included in such Borrowing.

 

Section 2.07     Interest
Elections.

 

(a)     Each
Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing,
shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Revolver Loans comprising
such Borrowing, and the Revolver Loans comprising each such portion shall be considered a separate Borrowing. This Section shall
not apply to Overadvance Loans or Protective Advances, which may not be converted or continued.

 

(b)     To
make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election either by telephone,
in writing (delivered by hand or fax) by delivering an Interest Election Request signed by the Borrower, or through Electronic
System if arrangements for doing so have been approved by the Administrative Agent by the time that a Borrowing Request would
be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable and each such telephonic
Interest Election Request shall be confirmed promptly (but in any event on the same Business Day) by hand delivery, fax or other
Electronic System to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative
Agent and signed by the Borrower.

 

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(c)          Each
written or telephonic Interest Election Request (including requests submitted through Electronic System) shall specify the following
information in compliance with Section 2.02:

 

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

 

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

 

(iii)          whether
the resulting Borrowing is to be a CBFR Borrowing or a Eurodollar Borrowing;

 

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

 

(v)           following
any notice from the Administrative Agent contemplated by clause (e) of this Section 2.07, as of the
date of such Interest Election Request, no event shall have occurred and be continuing or would result from the consummation of
the conversion and/or continuation contemplated thereby that would constitute an Event of Default.

 

(d)          Promptly
following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender to which such Interest Election
Request relates of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e)          If
the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be converted to a CBFR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has
occurred and is continuing and the Administrative Agent, at the written request (including a request through electronic means)
of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing
may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted
to a CBFR Borrowing at the end of the Interest Period applicable thereto.

 

Section 2.08         Repayment
of Loans; Termination of Revolver Commitments.

 

(a)          All
Loans shall be due and payable in full on the Revolver Termination Date, unless payment is sooner required hereunder.

 

(b)          The
Revolver Commitments shall terminate on the Revolver Termination Date, unless sooner terminated in accordance with this Agreement.
Upon at least 3 days (or such shorter period of time as the Administrative Agent may agree in its reasonable discretion) prior
written notice to the Administrative Agent at any time, the Borrower may, at its option, terminate the Revolver Commitments and
this Agreement. Any notice of termination given by the Borrower shall be irrevocable; provided that such notice may state
that such notice is conditioned upon the effectiveness of other credit facilities or transactions, in which case such notice may
be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition
is not satisfied. On the Revolver Termination Date, the Borrower shall cause the Obligations to be Paid in Full.

 

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(c)          The
Borrower may permanently reduce the Revolver Commitments, on a Pro Rata basis for each Lender, upon at least 5 days (or such
shorter period of time as the Administrative Agent may agree in its reasonable discretion) prior written notice to the Administrative
Agent delivered at any time, which notice shall specify the amount of the reduction and shall be irrevocable once given. Each
reduction shall be in a minimum amount of $1,000,000, or an increment of $100,000 in excess thereof.

 

Section 2.09         Evidence
of Debt.

 

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

 

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

 

(c)          The
entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section shall
be prima facie evidence of the existence and amounts of the obligations recorded therein absent manifest error; provided
that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement and, provided further
that in the event of any inconsistency between the Register and any Lender’s records, the recordations in the Register shall
govern.

 

(d)          Any
Lender may request that the Revolver Loans made by it be evidenced by a promissory note (a “Note”) in the form
of Exhibit E. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable
to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative
Agent and the Borrower. Thereafter, the Revolver Loans evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one (1) or more promissory notes in such
form.

 

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Section 2.10        Application
of Payment in the Dominion Account. During the Initial Cash Dominion Trigger Period, and thereafter upon delivery of
a written notice to the Borrower from the Administrative Agent that specifies that “cash dominion” is being instituted,
the ledger balance in the Dominion Account as of the end of each Business Day shall be applied to reduce the outstanding Secured
Obligations at the beginning of the next Business Day during any Cash Dominion Trigger Period. Such funds shall be applied first
to prepay any Protective Advances and Overadvance Loans that may be outstanding, pro rata, second to prepay the Revolver
Loans, and third to cash collateralize outstanding LC Obligations. During a Cash Dominion Trigger Period, the Borrower
irrevocably waives the right to direct the application of any payments or Collateral proceeds in the Dominion Account or any Deposit
Account subject to a Control Agreement, and agrees that the Administrative Agent shall have the continuing, exclusive right to
apply and reapply the same against the outstanding Secured Obligations, in accordance with the terms of this Agreement and the
other Loan Documents.

 

Section 2.11         Prepayments
of Revolver Loans.

 

(a)          The
Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, without premium or
penalty subject to prior notice in accordance with paragraph (d) of this Section 2.11 and, if applicable,
payment of any break funding expenses required under Section 2.16.

 

(b)          To
the extent that at any time the outstanding Aggregate Revolving Exposure exceeds the Line Cap, the Borrower shall on the next Business
Day first repay outstanding Loans (and thereafter Cash Collateralize outstanding LC Obligations at 100% of the face value thereof,
to the extent remaining) in an amount equal to such excess.

 

(c)          In
the event and on each occasion that the Consolidated Cash Balance of the Loan Parties and their Subsidiaries exceeds $20,000,000
(as reflected in any Consolidated Cash Balance Report) at any time that any Loans are outstanding, the Borrower shall within one
(1) Business Day of the date the applicable Consolidated Cash Balance Report was delivered or required to be delivered to
the Administrative Agent prepay outstanding Loans in an amount equal to the lesser of (A) the amount of such excess and (B) the
amount necessary to repay all outstanding Loans.

 

(d)          The
Borrower shall notify the Administrative Agent by telephone (confirmed by fax) or through Electronic System, if arrangements for
doing so have been approved by the Administrative Agent, of any prepayment under Section 2.11(a) not later than
12:00 p.m., Local Time, (A) in the case of prepayment of a Eurodollar Borrowing, three (3) Business Days before the date
of prepayment, or (B) in the case of prepayment of a CBFR Borrowing, one (1) Business Day before the date of prepayment.
Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion
thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination
of the Revolver Commitments as contemplated by Section 2.08, then such notice of prepayment may be revoked if such
notice of termination is revoked in accordance with Section 2.08. Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02.
Each prepayment of a Borrowing shall be applied ratably to the Revolver Loans included in the prepaid Borrowing. Prepayments shall
be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break funding payments
required pursuant to Section 2.16.

 

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Section 2.12         Fees.

 

(a)          Administrative
Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon between the Borrower and the Administrative Agent set forth in the Fee Letter.

 

(b)          Unused
Line Fee. The Borrower shall pay to the Administrative Agent, for the Pro Rata benefit of the Lenders (other than any Defaulting
Lender), a fee equal to the Unused Line Fee Rate multiplied by the amount by which the Revolver Commitments (other than Revolver
Commitments of a Defaulting Lender) exceed the average daily balance of outstanding Revolver Loans and the Stated Amount of outstanding
Letters of Credit during any fiscal quarter (such fee, the “Unused Line Fee”). Such fee shall be payable in
arrears, on the first calendar day of each fiscal quarter.

 

(c)          LC
Facility Fees. The Borrower shall pay (a) to the Administrative Agent, for the Pro Rata benefit of the Lenders, a fee
equal to (i) the Applicable Margin in effect for Eurodollar Loans times the average daily Stated Amount of outstanding “standby”
Letters of Credit and (ii) 50% of such Applicable Margin times the average daily Stated Amount of outstanding “commercial”
Letters of Credit, in each case, which fee shall be payable in arrears, on the first Business Day of each fiscal quarter; (b) to
the applicable Issuing Bank, for its own account, a fronting fee not in excess of 0.125% per annum of the Stated Amount of each
Letter of Credit issued by such Issuing Bank (“Issuing Bank Fee”), which fee shall be calculated based upon
the actual number of days elapsed over a 360-day year and payable in arrears, on the first calendar day of each fiscal quarter
(it being understood that any Issuing Bank Fee payable to Wells Fargo Bank, N.A., in its capacity as Issuing Bank, will be payable
in arrears, on the first Business Day of each fiscal quarter); and (c) to the applicable Issuing Bank, for its own account,
all customary charges associated with the issuance, registration, amending, negotiating, payment, processing, transfer and administration
of Letters of Credit, which charges shall be paid as and when incurred upon demand.

 

(d)          Generally.
All fees described in this Section 2.12 shall be paid on the dates due, in Dollars in immediately available funds.
Once paid, none of such fees shall be refundable under any circumstances.

 

(e)          Closing
Fee. The Borrower agrees to pay on the Closing Date to each Lender party to this Agreement on the Closing Date, as compensation
for the making of such Revolver Commitment, a closing fee (the “Closing Fee”) in an amount equal to 0.75% of
the stated principal amount of such Lender’s Revolver Commitment on the Closing Date. Such Closing Fee will be in all respects
fully earned, due and payable on the Closing Date and non-refundable and non-creditable thereafter.

 

Section 2.13         Interest.

 

(a)          The
Revolver Loans comprising each CBFR Borrowing shall bear interest at the CBFR plus the Applicable Margin.

 

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

 

(c)          Each
Protective Advance and each Overadvance Loan shall bear interest at the CBFR plus the Applicable Margin plus 2%.

 

(d)          Notwithstanding
the foregoing, if any principal of or interest on any Revolver Loan or any Fees or other amount payable by the Borrower hereunder
is not paid when due, whether at stated maturity, upon acceleration or otherwise or any Event of Default exists, all overdue amounts
shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of,
or interest on, any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or
(ii) in the case of any other amount, 2% plus the rate applicable to CBFR Loans as provided in paragraph (a) of
this Section (in each case, the “Default Rate”).

 

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

 

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

 

Section 2.14         Alternate
Rate of Interest. (a) Subject to clauses (c), (d), (e), (f), (g) and (h) of this Section 2.14,
if prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

(i)            the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without limitation, by means of
an Interpolated Rate or because the LIBO Screen Rate is not available or published on a current basis), for such Interest Period;
provided that no Benchmark Transition Event shall have occurred at such time; or

 

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

 

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then the Administrative Agent shall give
written notice thereof to the Borrower and the Lenders as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Interest
Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing
shall be ineffective and such Borrowing shall be converted to or continued as on the last day of the Interest Period applicable
thereto a CBFR Borrowing, and (B) if the Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as
a CBFR Borrowing.

 

(b)         [Reserved.]

 

(c)         Notwithstanding
anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as
applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the
then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of
the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace
such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark
settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document
and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark
Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes
hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (Local Time) on the fifth
(5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or
further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent
has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required
Lenders.

 

(d)         Notwithstanding
anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, if a Term SOFR
Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting
of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes
hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment
to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that, this clause
(d) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice.
For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Transition
Event and may do so in its sole discretion.

 

(e)         In
connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement
Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments
implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other
party to this Agreement or any other Loan Document.

 

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(f)          The
Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event,
a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the
implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the
removal or reinstatement of any tenor of a Benchmark pursuant to clause (g) below and (v) the commencement or conclusion
of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or,
if applicable, any Lender (or group of Lenders) pursuant to this Section 2.14, including any determination with respect
to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take
or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its
or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each
case, as expressly required pursuant to this Section 2.14.

 

(g)         Notwithstanding
anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of
a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBO Rate) and either (A) any
tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as
selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of
such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or
will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for
any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that
was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for
a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will
no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition
of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.

 

(h)         Upon
the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request
for a Eurodollar Borrowing of, conversion to or continuation of Eurodollar Loans to be made, converted or continued during any
Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request
for a Borrowing of or conversion to CBFR Loans. During any Benchmark Unavailability Period or at any time that a tenor for the
then-current Benchmark is not an Available Tenor, the component of CBFR based upon the then-current Benchmark or such tenor for
such Benchmark, as applicable, will not be used in any determination of CBFR.

 

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Section 2.15         Increased
Costs.

 

(a)          If
any Change in Law shall:

 

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

 

(ii)           subject
any Lender Party to any Taxes (other than (A) Indemnified Taxes paid or payable under Section 2.17, (B) Other
Taxes and (C) Excluded Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits,
reserves, other liabilities or capital attributable thereto; or

 

(iii)          impose
on any Lender or Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made
by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing
shall be to increase the cost to such Lender or other Lender Party of making or maintaining any Eurodollar Loan (or of maintaining
its obligation to make any such Loan) or to increase the cost to such Lender, Issuing Bank or other Lender Party of participating
in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, Issuing
Bank or other Lender Party hereunder (whether of principal, interest or otherwise), then within thirty (30) days of receipt
of a certificate of the type specified in paragraph (d) below the Borrower will pay to such Lender, Issuing
Bank or other Lender Party, as applicable, such additional amount or amounts as will compensate such Lender, Issuing Bank
or other Lender Party, as applicable, for such additional costs incurred or reduction suffered.

 

(b)          If
any Lender or Issuing Bank determines that any Change in Law regarding capital requirements or liquidity requirements has or would
have the effect of reducing the rate of return on such Lender’s or Issuing Bank’s capital or on the capital of such
Lender’s or Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations
in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such
Lender or such or Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or Issuing Bank’s policies and the policies of such Lender’s
or Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time within thirty
(30) days of receipt of a certificate of the type specified in paragraph (d) below the Borrower shall pay
to such Lender or such Issuing Bank, as applicable, such additional amount or amounts as will compensate such Lender or such Issuing
Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered.

 

(c)          Notwithstanding
anything herein to the contrary, (i) all requests, rules, guidelines, requirements and directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or by United
States or foreign regulatory authorities, in each case pursuant to Basel III, and (ii) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith
or in implementation thereof, shall in each case be deemed to be a Change in Law, regardless of the date enacted, adopted, issued
or implemented.

 

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(d)          A
certificate of a Lender or an Issuing Bank setting forth in reasonable detail the calculation of the amount or amounts necessary
to compensate such Lender or Issuing Bank or its holding company, as applicable, as specified in paragraph (a) or
(b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error; provided
that such certificate from each such Lender or Issuing Bank shall contain a certification to the Borrower that such Lender or Issuing
Bank is generally requiring reimbursement for the relevant amounts from similarly situated borrowers under comparable syndicated
credit facilities. The Borrower shall pay such Lender or Issuing Bank, as applicable, the amount shown as due on any such certificate
within thirty (30) days after receipt thereof.

 

(e)          Promptly
after any Lender or any Issuing Bank has determined that it will make a request for increased compensation pursuant to this Section 2.15,
such Lender or Issuing Bank shall notify the Borrower thereof. Failure or delay on the part of any Lender or Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s or Issuing Bank’s right to
demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank pursuant
to this Section for any increased costs or reductions incurred more than ninety (90) days prior to the date that such
Lender or Issuing Bank, as applicable, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender’s or Issuing Bank’s intention to claim compensation therefor; provided, further, that,
if the Change in Law giving rise to such increased costs or reductions is retroactive, then the ninety (90) day period referred
to above shall be extended to include the period of retroactive effect thereof.

 

Section 2.16         Break
Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last
day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar
Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto or (d) the assignment of any Eurodollar
Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable
to such event (excluding loss of margin). Such loss, cost and expense to any Lender shall be deemed to be the amount reasonably
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal
amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan but exclusive
of the Applicable Margin relating thereto, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest
Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement of such period, for U.S. Dollar deposits of
a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount
or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall
be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
thirty (30) days after receipt thereof.

 

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Section 2.17         Taxes.

 

(a)          Any
and all payments by or on account of any obligation of any Loan Party hereunder shall be made free and clear of and without deduction
or withholding for any Taxes, except as required by Applicable Law; provided that if a Loan Party or other applicable withholding
agent shall be required by Applicable Law (as determined in the good faith discretion of such Loan Party or other applicable withholding
agent) to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable by any Loan Party shall
be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, any Lender or any Issuing Bank, as applicable, receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the applicable withholding agent shall make such deductions
and (iii) the applicable withholding agent shall timely pay the full amount deducted to the relevant Governmental Authority
in accordance with Applicable Law.

 

(b)          In
addition, the Loan Parties shall timely pay to the relevant Governmental Authority in accordance
with Applicable Law, or, at the option of the Administrative Agent, timely reimburse it for the payment of any Other Taxes.

 

(c)          Each
Loan Party shall indemnify the Administrative Agent, each Lender and each Issuing Bank, within ten (10) days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid or payable by the Administrative Agent, such
Lender or such Issuing Bank, as applicable, on, or required to be withheld or deducted, with respect to any payment by or on account
of any obligation of such Loan Party hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable
to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability, prepared in good faith and delivered to such Loan Party
by a Lender or an Issuing Bank or by the Administrative Agent on its own behalf, on behalf of another Agent or on behalf of a Lender
or an Issuing Bank, shall be conclusive absent manifest error.

 

(d)          As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Loan Party to a Governmental Authority, such Loan
Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.

 

(e)          (i) Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document
shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will
permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably
requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably
requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether
or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary
in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation
set forth in Section 2.17(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in
the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed
cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

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(ii)          Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

 

(A)         any
Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the
Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup
withholding tax;

 

(B)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
whichever of the following is applicable:

 

(1)            in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with
respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E establishing an exemption
from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and
(y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing
an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other
income” article of such tax treaty;

 

(2)            executed
copies of IRS Form W-8ECI;

 

(3)            in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the
Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such Foreign Lender is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within
the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower
as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed
copies of IRS Form W-8BEN or W-8BEN-E; or

 

(4)            to
the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, IRS
Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign
Lender is a partnership and one (1) or more direct or indirect partners of such Foreign Lender are claiming the portfolio
interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4
on behalf of each such direct and indirect partner;

 

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(C)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal
withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit
the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)         if
a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such
Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or
times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation
prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent
to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations
under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D),
 “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees
that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update
such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do
so.

 

(f)           If
the Administrative Agent or a Lender determines, in its sole discretion exercised in good faith, that it has received a refund
of any Indemnified Taxes or Other Taxes as to which it has been indemnified by a Loan Party or with respect to which such Loan
Party has paid additional amounts pursuant to this Section 2.17, it shall pay over such refund to such Loan Party (but
only to the extent of indemnity payments made, or additional amounts paid, by such Loan Party under this Section 2.17
with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender (including any Taxes imposed with respect to such refund) as is determined by the Administrative Agent
or Lender and in its sole discretion, and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided that such Loan Party, upon the request of the Administrative Agent or such Lender,
agrees to repay as soon as reasonably practicable the amount paid over to such Loan Party (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary
in this paragraph (f), in no event will the indemnified party be required to pay any amount to an indemnifying party
pursuant to this paragraph (f) the payment of which would place the indemnified party in a less favorable net
after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such
refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect
to such Tax had never been paid. This Section 2.17(f) shall not be construed to require the Administrative Agent
or any Lender to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to
the Loan Parties or any other Person.

 

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(g)          Each
Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Taxes
attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for
such Taxes and without limiting the obligation of the Loan Parties to do so) and (ii) any Taxes attributable to such Lender’s
failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register,
in either case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses
arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative
Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any
and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the
Lender from any other source against any amount due to the Administrative Agent under this paragraph (g).

 

(h)          For
purposes of this Section 2.17, the term “Lender” includes any Issuing Bank.

 

Section 2.18         Payments
Generally; Pro Rata Treatment; Sharing of Set-offs.

 

(a)          Unless
otherwise specified, the Borrower shall make each payment required to be made by it hereunder (whether of principal, interest,
fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16, or 2.17, or
otherwise) prior to 2:00 p.m., Local Time, on the date when due, in immediately available funds, without condition or deduction
for any defense, recoupment, set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of
the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the Administrative Agent to the applicable account designated to the Borrower by the
Administrative Agent, except payments to be made directly to the applicable Issuing Bank as expressly provided herein. The Administrative
Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. All payments hereunder shall be made in Dollars. Any payment required to be made by the Administrative
Agent hereunder shall be deemed to have been made by the time required if the Administrative Agent shall, at or before such time,
have taken the necessary steps to make such payment in accordance with the regulations or operating procedures of the clearing
or settlement system used by the Administrative Agent to make such payment.

 

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(b)          If
at any time insufficient funds are received by and available to the Administrative Agent from the Borrower to pay fully all amounts
of principal, unreimbursed LC Disbursements, interest and fees then due from the Borrower hereunder, such funds (except as otherwise
provided in the Collateral Agreement with respect to the application of amounts realized from the Collateral) shall be applied
(i) first, towards payment of interest and fees then due from the Borrower hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment
of principal and unreimbursed LC Disbursements then due from the Borrower hereunder, ratably among the parties entitled thereto
in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

 

(c)          If
(other than (x) any payment obtained by a Lender as consideration for the assignment or sale of a participation in any of
its Loans to any assignee or participant, including any assignee or participation that is a Loan Party or any of its Affiliates
or (y) as otherwise expressly provided elsewhere herein, including, without limitation, as provided in or contemplated by
Section 9.04(f)) any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment
in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving
payment of a greater proportion of the aggregate amount of its Loans and accrued interest thereon than the proportion received
by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in
the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective
Loans and participations in LC Disbursements; provided that (i) if any such participations are purchased and all or
any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored
to the extent of such recovery, without interest, and (ii) the provisions of this paragraph (c) shall not
be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement.
The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim
with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

(d)          Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the applicable Issuing Bank hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as applicable, the amount due. In such event, if
the Borrower has not in fact made such payment, then each of the Lenders or the applicable Issuing Bank, as applicable, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

 

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(e)          If
any Lender shall fail to make any payment required to be made by it pursuant to Sections 2.05(b), 2.06(b) or
2.18(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations
under such Sections until all such unsatisfied obligations are fully paid.

 

(f)           Each
borrowing by the Borrower from the Lenders hereunder shall be made pro rata according to the respective Revolving Facility
Percentages of the relevant Lenders.

 

Section 2.19         Mitigation
Obligations; Replacement of Lenders.

 

(a)          If
any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall
use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights
and obligations hereunder to another of its offices, branches or Affiliates, if, in the reasonable judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17,
as applicable, in the future and (ii) would not subject such Lender to any material unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender in any material respect. The Borrower hereby agrees to pay all reasonable costs
and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)          If
any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender is
a Defaulting Lender or becomes an Affected Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender
and the Administrative Agent, (i) terminate the Revolver Commitments of such Lender and repay all Obligations of the Borrower
owing to such Lender relating to the Loans and participations held by such Lender as of such termination date or (ii) require
such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04),
all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the
prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its Loans, participations in LC Disbursements, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all other amounts), (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17,
such assignment will result in a reduction in such compensation or payments, (iv) the Borrower shall be liable to such Lender
under Section 2.16 if any Eurodollar Loan owing to such Lender is repaid or purchased other than on the last day of
the Interest Period relating thereto, (v) such assignment shall otherwise comply with Section 9.04 (provided
that the Borrower shall be obligated to pay the registration and processing fee referred to therein) and (vi) until such time
as such Revolver Commitments are terminated, obligations are repaid or such assignment is consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 2.15 or Section 2.17, as the case may be. Nothing
in this Section 2.19 shall be deemed to prejudice any rights that the Borrower, the Administrative Agent or any Lender
may have against any replaced Lender. Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney (which
power is coupled with an interest) to execute and deliver, on behalf of such Lender as assignor, any Assignment and Acceptance
necessary to effectuate any assignment of such Lender’s interests hereunder in the circumstances contemplated by this Section 2.19(b).

 

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(c)           If
any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a proposed amendment, waiver,
discharge or termination which pursuant to the terms of Section 9.08 requires the consent of all of the Lenders or
all of the Lenders affected and with respect to which the Required Lenders shall have granted their consent, then the Borrower
shall have the right (unless such Non-Consenting Lender grants such consent) to replace such Non-Consenting Lender by (i) terminating
the Revolver Commitments of such Lender and repaying all obligations of the Borrower owing to such Lender relating to the Loans
and participations held by such Lender as of such termination date or (ii) requiring such Non-Consenting Lender to assign
(in accordance with and subject to the restrictions contained in Section 9.04) all or the affected portion of its
Loans and its Revolver Commitments hereunder to one (1) or more assignees, provided that: (a) all Obligations
of the Borrower owing to such Non-Consenting Lender being replaced shall be paid in full to such Non-Consenting Lender concurrently
with such assignment, (b) the replacement Lender shall purchase the foregoing by paying to such Non-Consenting Lender a price
equal to the principal amount thereof plus accrued and unpaid interest thereon, (c) the Borrower shall be liable to such
Lender under Section 2.16 if any Eurodollar Loan owing to such Lender is repaid or purchased other than on the last
day of the Interest Period relating thereto, (d) such assignment shall otherwise comply with Section 9.04 (provided
that the Borrower shall be obligated to pay the registration and processing fee referred to therein) and (e) the replacement
Lender shall grant its consent with respect to the applicable proposed amendment, waiver, discharge or termination. Each Lender
hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) to execute
and deliver, on behalf of such Lender as assignor, any Assignment and Acceptance necessary to effectuate any assignment of such
Lender’s interests hereunder in the circumstances contemplated by this Section 2.19(c).

 

Section 2.20          Illegality.
If any Lender reasonably determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted
after the Closing Date that it is unlawful, for any Lender or its applicable Lending Office to make or maintain any Eurodollar
Loans, then, on notice thereof by such Lender to the Borrower through the Administrative Agent (at which time such Lender shall
be deemed an “Affected Lender”), any obligations of such Affected Lender to make or continue Eurodollar Loans
or to convert CBFR Borrowings to Eurodollar Borrowings shall be suspended until such Affected Lender notifies the Administrative
Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice,
the Borrower shall upon demand from such Affected Lender (with a copy to the Administrative Agent), either convert all Eurodollar
Borrowings of such Affected Lender to CBFR Borrowings, either on the last day of the Interest Period therefor, if such Affected
Lender may lawfully continue to maintain such Eurodollar Borrowings to such day, or immediately, if such Affected Lender may not
lawfully continue to maintain such Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest
on the amount so prepaid or converted.

 

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Section 2.21          Defaulting
Lenders.

 

(a)           Reallocation
of Pro Rata Share; Amendments. For purposes of determining the Lenders’ obligations to fund or acquire participations
in Loans or Letters of Credit, the Administrative Agent may exclude the Revolver Commitments and Loans of any Defaulting Lender(s) from
the calculation of Pro Rata shares and any Revolver Commitments or Fronting Exposure of any such Defaulting Lender shall automatically
be reallocated among the non-Defaulting Lenders Pro Rata in accordance with their Revolver Commitments up to an amount such that
the Revolver Commitment of each non-Defaulting Lender does not exceed its Revolver Commitments, so long as the conditions set
forth in Section 4.02 are satisfied at the time of such reallocation. A Defaulting Lender shall have no right to vote
on any amendment, waiver or other modification of a Loan Document, except as provided in Section 9.08.

 

(b)           Payments;
Fees. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of a
Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise, and including
any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to Section 9.06), shall
be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts
owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a Pro Rata basis of any
amounts owing by that Defaulting Lender to any applicable Issuing Banks hereunder; third, if so reasonably determined by
the Administrative Agent or reasonably requested by the applicable Issuing Bank, to be held as Cash Collateral at a rate of 100%
of the Fronting Exposure of such Defaulting Lender; fourth, to the funding of any Revolver Loan in respect of which that
Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;
fifth, if so determined by the Administrative Agent or the Borrower, to be held in a deposit account and released in order
to satisfy obligations of that Defaulting Lender to fund Revolver Loans under this Agreement and to Cash Collateralize any Issuing
Bank’s Fronting Exposure with respect to such Defaulting Lender; sixth, to the payment of any amounts owing to the
Lenders, the Issuing Banks as a result of any judgment of a court of competent jurisdiction obtained by any Lender, any Issuing
Bank against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement;
seventh, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction
obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations
under this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;
provided that if (x) such payment is a payment of the principal amount of any Revolver Loans or LC Obligations in
respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Revolver Loans or LC Obligations
were made at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be
applied solely to pay the Revolver Loans of, and LC Obligations owed to, all non-Defaulting Lenders on a Pro Rata basis prior
to being applied to the payment of any Revolver Loans of, or LC Obligations owed to, that Defaulting Lender. Any payments, prepayments
or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender
or to post Cash Collateral pursuant to this Section 2.21(b) shall be deemed paid to and redirected by that Defaulting
Lender, and each Lender irrevocably consents hereto. A Lender shall not be entitled to receive any fees accruing hereunder during
the period in which it is a Defaulting Lender, and the unfunded portion of its Revolver Commitment shall be disregarded for purposes
of calculating the Unused Line Fee Rate under Section 2.12(b). To the extent any LC Obligations owing to a Defaulting
Lender are reallocated to other Lenders, Letter of Credit fees attributable to such LC Obligations under Section 2.12(c) shall
be paid to such other Lenders. The Administrative Agent shall be paid all Letter of Credit fees attributable to LC Obligations
that are not so reallocated.

 

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(c)           Cure.
The Borrower, the Administrative Agent and the Issuing Banks may agree in writing that a Lender is no longer a Defaulting Lender.
At such time, Pro Rata shares shall be reallocated without exclusion of such Lender’s Revolver Commitments and Revolver
Loans, and all outstanding Revolver Loans, LC Obligations and other exposures under the Revolver Commitments shall be reallocated
among the Lenders and settled by the Administrative Agent (with appropriate payments by the reinstated Lender) in accordance with
the readjusted Pro Rata shares. Unless expressly agreed in writing by the Borrower, the Administrative Agent and the Issuing Banks
(each of which shall make such determination, in its sole discretion), no reinstatement of a Defaulting Lender shall constitute
a waiver or release of claims against such Lender. The failure of any Lender to fund a Revolver Loan, to make a payment in respect
of LC Obligations or otherwise to perform its obligations hereunder shall not relieve any other Lender of its obligations, and
no Lender shall be responsible for default by another Lender. No reallocation hereunder shall constitute a wavier or release of
any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including
any claim of a non-Defaulting Lender as a result of such non-Defaulting Lender’s increased exposure following such reallocation.

 

Section 2.22          Revolver
Commitment Increase.

 

(a)           Subject
to the terms and conditions set forth herein, after the Closing Date, the Borrower shall have the right to request, by written
notice to the Administrative Agent, an increase in the Revolver Commitments (a “Revolver Commitment Increase”)
in an aggregate amount not to exceed $40,000,000; provided that (a) the Borrower shall only be permitted to request
four (4) Revolver Commitment Increases during the term of this Agreement, (b) any Revolver Commitment Increase shall
be in a minimum amount of $10,000,000, and (c) after giving effect to all such Revolver Commitment Increases, the aggregate
amount of the Revolver Commitments outstanding shall not exceed $150,000,000.

 

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(b)           Each
notice submitted pursuant to this Section 2.22 (a “Revolver Commitment Increase Notice”) requesting
a Revolver Commitment Increase shall specify the amount of the increase in the Revolver Commitments being requested. Upon receipt
of a Revolver Commitment Increase Notice, the Administrative Agent may (at the direction of the Borrower) promptly notify the
Lenders and each Lender shall (subject to the Borrower’s consent) have the right to elect to have its Revolver Commitment
increased by its Pro Rata share (it being understood and agreed that a Lender may elect to have its Revolver Commitment increased
in excess of its Pro Rata share in its discretion if any other Lender declines to participate in the Revolver Commitment Increase)
of the requested increase in Revolver Commitments; provided that (i) each Lender may elect or decline, in its sole
discretion, to have its Revolver Commitment increased in connection with any requested Revolver Commitment Increase, it being
understood that no Lender shall be obligated to increase its Revolver Commitment or make any Revolver Loan under any Revolver
Commitment Increase unless it, in its sole discretion, so agrees and, if a Lender fails to respond to any Revolver Commitment
Increase Notice within five (5) Business Days after such Lender’s receipt of such request, such Lender shall be deemed
to have declined to participate in such Revolver Commitment Increase, (ii) if any Lender declines to participate in any Revolver
Commitment Increase and, as a result, commitments from additional financial institutions are required in connection with the Revolver
Commitment Increase, any Person or Persons providing such commitment shall, if not a Lender, an Affiliate of a Lender or a Related
Fund, (x) qualify as an “Eligible Assignee” under clause (ii) of the definition thereof and (y) be
subject to the written consent of the Administrative Agent and the Issuing Banks (such consent not to be unreasonably withheld
or delayed), and (iii) in no event shall a Defaulting Lender be entitled to participate in such Revolver Commitment Increase.
In the event that any Lender or other Person agrees to participate in any Revolver Commitment Increase (each an “Increase
Loan Lender”), such Revolver Commitment Increase shall become effective on such date as shall be mutually agreed upon
by the Increase Loan Lenders and the Borrower, which date shall be as soon as practicable after the date of receipt of the Revolver
Commitment Increase Notice (such date, the “Increase Date”); provided that the establishment of such
Revolver Commitment Increase and the obligation of such Increase Loan Lenders to make the Revolver Loans thereunder shall be subject
to the satisfaction of each of the following conditions: (1) no Event of Default would exist after giving effect thereto;
(2) the Revolver Commitment Increase shall be effected pursuant to one or more joinder agreements executed and delivered
by the Borrower, the Administrative Agent, and the Increase Loan Lenders, each of which shall be reasonably satisfactory to the
Borrower, the Administrative Agent, and the Increase Loan Lenders; (3) the Loan Parties shall execute and deliver or
cause to be executed and delivered to the Administrative Agent such amendments to the Loan Documents, legal opinions and other
documents as the Administrative Agent may reasonably request in connection with any such transaction, which amendments, legal
opinions and other documents shall be reasonably satisfactory to the Administrative Agent; (4) any Increase Loan Lender,
if it shall not be a Lender prior to such Revolver Commitment Increase, shall have delivered to the Administrative Agent an Administrative
Questionnaire and all applicable tax forms; and (5) the Borrower shall have paid to the Administrative Agent and the Lenders
such additional fees as may be required to be paid by the Borrower in connection therewith.

 

(c)           On
the Increase Date, upon fulfillment of the conditions set forth in this Section 2.22, (i) the Administrative
Agent shall effect a settlement of all outstanding Revolver Loans among the Lenders that will reflect the adjustments to the Revolver
Commitments of the Lenders as a result of the Revolver Commitment Increase, (ii) the Administrative Agent shall notify the
Lenders and Loan Parties of the occurrence of the Revolver Commitment Increase to be effected on the Increase Date, (iii) Schedule 2.01
shall be deemed modified to reflect the revised Revolver Commitments of the affected Lenders and (iv) Notes will be issued,
at the expense of the Borrower, to any Lender participating in the Revolver Commitment Increase and requesting a Note.

 

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(d)          The
terms and provisions of the Revolver Commitment Increase shall be identical to the Revolver Loans and the Revolver Commitments
(other than with respect to fees) and, for purposes of this Agreement and the other Loan Documents, all Revolver Loans made under
the Revolver Commitment Increase shall be deemed to be Revolver Loans. Without limiting the generality of the foregoing, (i) the
rate of interest applicable to the Revolver Commitment Increase shall be the same as the rate of interest applicable to the existing
Revolver Loans, (ii) unused line fees applicable to the Revolver Commitment Increase shall be calculated using the same Unused
Line Fee Rates applicable to the existing Revolver Loans, (iii) the Revolver Commitment Increase shall share ratably in any
mandatory prepayments of the Revolver Loans, (iv) after giving effect to such Revolver Commitment Increases and prior to
the Commitment Revolver Termination Date, Revolver Commitments shall be reduced on a Pro Rata basis, and (v) the Revolver
Commitment Increase shall rank pari passu in right of payment and security with the existing Revolver Loans. Notwithstanding
the foregoing or anything to the contrary contained in the Loan Documents (including Section 9.08), the rate of interest
and the Unused Line Fee Rate or similar fee or interest rate applicable to the existing Revolver Loans may, at the sole option
of the Borrower, be increased in excess of the rate of interest and/or fee applicable thereto to match that applicable to the
Revolver Commitment Increase. Each joinder agreement and any amendment to any Loan Document requested by the Administrative Agent
in connection with the establishment of the Revolver Commitment Increase may, without the consent of any of the Lenders, effect
such amendments to this Agreement and the other Loan Documents as may be reasonably necessary or appropriate, in the opinion of
the Administrative Agent and the Borrower, to effect the provisions of this Section 2.22.

 

Section 2.23          Bank
Products and Swap Agreements. Each Lender or Affiliate thereof providing Bank Products for, or having Swap Agreements
with, any Loan Party or any Subsidiary of a Loan Party shall deliver to the Administrative Agent, promptly after entering into
such Bank Products or Swap Agreements, written notice setting forth the aggregate amount of all Bank Product Obligations and Swap
Agreement Obligations of such Loan Party or Subsidiary thereof to such Lender or Affiliate (whether matured or unmatured, absolute
or contingent). In addition, each such Lender or Affiliate thereof shall deliver to the Administrative Agent, from time to time
after a significant change therein or upon a request therefor, a summary of the amounts due or to become due in respect of such
Bank Product Obligations and Swap Agreement Obligations. The most recent information provided to the Administrative Agent shall
be used in determining the amounts to be applied in respect of such Bank Product Obligations and/or Swap Agreement Obligations
pursuant to Section 7.02 and which tier of the waterfall, contained in Section 7.02, such Bank Product
Obligations and/or Swap Agreement Obligations will be placed. For the avoidance of doubt, so long as J.P. Morgan or its Affiliate
is the Administrative Agent, neither J.P. Morgan nor any of its Affiliates providing Bank Products for, or having Swap Agreements
with, any Loan Party or any Subsidiary of a Loan Party shall be required to provide any notice described in this Section 2.23
in respect of such Bank Products or Swap Agreements.

 

Section 2.24          Overadvances.
If the Aggregate Revolving Exposure (excluding in respect of Protective Advances) exceeds the Line Cap (an “Overadvance”)
at any time, the excess amount shall constitute a Loan (an “Overadvance Loan”) and shall be payable by the
Borrower on demand by the Administrative Agent, but all such Overadvance Loans shall nevertheless constitute Secured Obligations
secured by the Collateral and entitled to all benefits of the Loan Documents. The Administrative Agent may require the Lenders
to honor requests for Overadvance Loans and to forbear from requiring the Borrower to cure an Overadvance, (a) when no other
Event of Default is known to the Administrative Agent, as long as (i) the Overadvance does not continue for more than 30
consecutive days (and no Overadvance may exist for at least five consecutive days thereafter before further Overadvance Loans
are required from the Lenders), and (ii) the aggregate amount of all Overadvances and Protective Advances does not exceed
5% of the Borrowing Base and (b) regardless of whether an Event of Default exists, if the Administrative Agent discovers
an Overadvance not previously known by it to exist, as long as from the date of such discovery the Overadvance (i) is not
increased by more than $500,000, and (ii) does not continue for more than 30 consecutive days. In no event shall Overadvance
Loans be required that would cause the aggregate outstanding Loans and LC Obligations to exceed the aggregate Revolver Commitments.
The making of any Overadvance Loan shall not create nor constitute a Default or Event of Default; it being understood that the
making or continuance of an Overadvance shall not constitute a waiver by the Administrative Agent or the Lenders of the then existing
Event of Default. In no event shall the Borrower or other Loan Party be permitted to require any Overadvance Loan to be made.

 

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Section 2.25          Protective
Advances. The Administrative Agent shall be authorized, in its discretion, following notice to and consultation with
the Borrower, at any time, to make CBFR Loans (“Protective Advances”) (a) in an aggregate amount, together
with the aggregate amount of all Overadvance Loans, not to exceed the greater of (i) 5% of the Borrowing Base and (ii) $5.0
million, if the Administrative Agent deems such Protective Advances necessary or desirable to preserve and protect the Collateral,
or to enhance the collectability or repayment of the Obligations; or (b) to pay any other amounts chargeable to Loan Parties
under any Loan Documents, including costs, fees and expenses; provided that, the aggregate amount of outstanding Protective
Advances plus the outstanding amount of Revolver Loans, Overadvance Loans and LC Obligations shall not exceed the aggregate
Revolver Commitments. Each Lender shall participate in each Protective Advance on a Pro Rata basis. Required Lenders may at any
time revoke the Administrative Agent’s authority to make further Protective Advances under clause (a) by
written notice to the Administrative Agent. Absent such revocation, the Administrative Agent’s determination that funding
of a Protective Advance is appropriate shall be conclusive. The Administrative Agent may use the proceeds of such Protective Advances
to (a) protect, insure, maintain or realize upon any Collateral; or (b) defend or maintain the validity or priority
of the Administrative Agent’s Liens in any Collateral, including any payment of a judgment, insurance premium, warehouse
charge, finishing or processing charge, or landlord claim, or any discharge of a Lien; provided that the Administrative
Agent shall use reasonable efforts to notify the Borrower after paying any such amount or taking any such action and shall not
make payment of any item that is being properly contested.

 

ARTICLE III

 

Representations and Warranties

 

Each of Holdings (solely
to the extent applicable to it) and each other Loan Party represents and warrants to the Administrative Agent, each of the Lenders
and each of the Issuing Banks that:

 

Section 3.01          Organization;
Powers. Each of Holdings, the Borrower and each of the Subsidiaries (a) is a limited partnership, limited liability
company or corporation duly organized, validly existing and in good standing (or, if applicable in a foreign jurisdiction, enjoys
the equivalent status under the laws of any jurisdiction of organization outside the United States) under the laws of the jurisdiction
of its organization, (b) has all requisite power and authority to own its property and assets and to carry on its business
as now conducted, (c) is qualified to do business and in good standing in each jurisdiction where such qualification is required;
except in each case referred to in this Section 3.01 (other than in clause (a) and clause (b),
respectively, with respect to the Borrower), to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect.

 

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Section 3.02          Authorization.
The execution, delivery and performance by Holdings, the Borrower and each of the Subsidiary Guarantors of each of the Loan Documents
to which it is a party, and the borrowings hereunder, the consummation of the Plan of Reorganization, the transactions forming
a part of the Transactions and the payment of the Transaction Costs (a) have been duly authorized by all corporate, stockholder,
limited partnership or limited liability company action required to be obtained by Holdings, the Borrower and such Subsidiary
Guarantors and (b) will not (i) violate (A) any provision of (x) law, statute, rule or regulation applicable
to such party, or (y) of the certificate or articles of incorporation or other constitutive documents or by-laws of Holdings,
the Borrower or any such Subsidiary Guarantor, (B) any applicable order of any court or any rule, regulation or order of
any Governmental Authority or (C) any provision of any indenture, certificate of designation for preferred stock, agreement
or other instrument to which Holdings, the Borrower or any such Subsidiary Guarantor is a party or by which any of them or any
of their property is or may be bound, (ii) be in conflict with, result in a breach of or constitute (alone or with notice
or lapse of time or both) a default under, give rise to a right of or result in any cancellation or acceleration of any right
or obligation (including any payment) or to a loss of a material benefit under any such indenture, certificate of designation
for preferred stock, agreement or other instrument, where any such conflict, violation, breach or default referred to in clause
(b)(i)(A)(x), (b)(i)(B), (b)(i)(C) or (b)(ii) of this Section 3.02, could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, or (iii) result in the creation or imposition of any Lien upon or with respect
to any property or assets now owned or hereafter acquired by Holdings, the Borrower or any such Subsidiary Guarantor, other than
the Liens created by the Loan Documents and Liens permitted by Section 6.02 hereof.

 

Section 3.03          Enforceability.
This Agreement has been duly executed and delivered by Holdings and the Borrower and constitutes, and each other Loan Document
when executed and delivered by each Loan Party that is party thereto will constitute, a legal, valid and binding obligation of
such Loan Party enforceable against each such Loan Party in accordance with its terms, subject to (i) the effects of bankruptcy,
insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally,
(ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law) and (iii) implied covenants of good faith and fair dealing.

 

Section 3.04          Governmental
Approvals. No action, consent or approval of, registration or filing with or any other action by any Governmental Authority
is or will be required in connection with the consummation of the Plan of Reorganization, the Transactions and the payment of
the Transaction Costs, except for (a) the filing of Uniform Commercial Code financing statements, (b) filings with the
United States Patent and Trademark Office and the United States Copyright Office and comparable offices in foreign jurisdictions
and equivalent filings in foreign jurisdictions, (c) such as have been made or obtained and are in full force and effect,
(d) such actions, consents, approvals, registrations or filings the failure to be obtained or made which could not reasonably
be expected to have a Material Adverse Effect and (e) the recordation of Mortgages.

 

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Section 3.05          Financial
Statements.

 

(a)           All
financial statements of the Borrower and its Subsidiaries that have been or may hereafter be delivered by any Loan Party to the
Administrative Agent and/or the Lenders present fairly, in all material respects, the consolidated financial condition and results
of operations and cash flows of the Borrower and its Subsidiaries as of the date(s) and for the period(s) thereof in
accordance with GAAP.

 

(b)           No
Loan Party or any Subsidiary has as of the Closing Date any material indebtedness or any material contingent liabilities, off-balance
sheet liabilities or liabilities for Taxes, except as referred to or reflected in the financial statements of the Loan Parties
or their Subsidiaries previously delivered to the Lenders.

 

Section 3.06          No
Material Adverse Effect. Since the Petition Date, no event, development, circumstance or change has occurred that has
or would reasonably be expected to have a Material Adverse Effect.

 

Section 3.07          Title
to Properties; Possession Under Leases.

 

(a)           Each
of Holdings, the Borrower and the Subsidiaries has good and insurable fee simple title to the Mortgaged Properties, if any, and
good and insurable fee simple title to, or good and valid interests in easements or other limited property interests in, as applicable,
all its other real properties and has good and valid title to its personal property and assets, in each case, free and clear of
Liens except for defects in title that do not impair the value thereof in any material respect or interfere with its ability to
conduct its business as currently conducted or to utilize such properties and assets for their intended purposes and Liens expressly
permitted by Section 6.02, and except where the failure to have such title or interest could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

(b)           Each
of Holdings, the Borrower and the Subsidiaries owns or possesses, or is licensed or otherwise has the right to use, all patents,
trademarks, service marks, trade names and copyrights and all licenses and rights with respect to the foregoing, reasonably necessary
for the present conduct of its business, without any conflict (of which the Borrower has been notified in writing) with the rights
of others, except where the failure to have such rights or where such conflicts and restrictions could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect. As of the Closing Date, to the knowledge of the Loan Parties
or any Subsidiary, the use of such trademarks, copyrights, patents, licenses and other intellectual property by each Loan Party
and each Subsidiary does not infringe in any material respect upon the rights of any other Person, and each Loan Party’s
and each Subsidiary’s rights thereto are not subject to any licensing agreement or similar arrangement except as set forth
on Schedule 3.07(b).

 

(c)           As
of the date of the Closing Date, Schedule 3.07(c) sets forth the address of each parcel of real property that is owned
by any Loan Party and each material parcel of real property that is leased by any Loan Party (collectively, the “Real
Property”). As of the Closing Date, to the knowledge of the Loan Parties and following the assumption of such leases
pursuant to the Plan of Reorganization, (i) each of such leases and subleases is valid and enforceable in accordance with
its terms and is in full force and effect, (ii) no Loan Party is in default under its material monetary obligations with
respect to each of its leases and subleases, and (iii) there are no other material defaults with respect to any of such leases
or subleases, subject to any applicable cure periods.

 

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Section 3.08          Subsidiaries.

 

(a)           Schedule 3.08(a) sets
forth as of the Closing Date the name and jurisdiction of incorporation, formation or organization of each Subsidiary of Holdings
and, as to each such Subsidiary, the percentage of each class of outstanding Equity Interests owned by Holdings or by any such
Subsidiary.

 

(b)           As
of the Closing Date, there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments
(other than directors’ qualifying shares) of any nature relating to any Equity Interests of any Subsidiary.

 

Section 3.09          Litigation;
Compliance with Laws.

 

(a)           There
are no actions, suits, investigations or proceedings at law or in equity or by or on behalf of any Governmental Authority or in
arbitration now pending against, or to the knowledge of Holdings or the Borrower threatened in writing against, Holdings or the
Borrower or any of the Subsidiaries or any business, property or rights of any such Person (i) that involve any Loan Document,
the Transactions or the payment of the Transaction Costs or (ii) that would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

(b)           None
of Holdings, the Borrower, the Subsidiaries or their respective properties or assets is in violation of any law, rule or
regulation (including any zoning, building, ordinance, code or approval or any building permit, but excluding any Environmental
Laws that are the subject of Section 3.16) or any restriction of record or agreement affecting any owned real property,
including the Mortgaged Property, or is in default with respect to any judgment, writ, injunction or decree of any Governmental
Authority, where such violation or default could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

Section 3.10          Investment
Company Act. None of Holdings, the Borrower or any Subsidiary is an “investment company” as defined in,
or subject to regulation under, the Investment Company Act of 1940, as amended.

 

Section 3.11          Use
of Proceeds. The proceeds of the Revolver Loans have been used and will be used, whether directly or indirectly, as
set forth in Section 5.13.

 

Section 3.12          Federal
Reserve Regulations.

 

(a)           None
of Holdings, the Borrower or any Subsidiary is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock.

 

(b)           No
part of the proceeds of any Loan will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately,
(i) to purchase or carry Margin Stock or to extend credit to others for the purpose of purchasing or carrying Margin Stock
or to refund indebtedness originally incurred for such purpose, or (ii) for any purpose that entails a violation of, or that
is inconsistent with, the provisions of the Regulations of the Board, including Regulation U or Regulation X.

 

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Section 3.13          Tax
Returns.

 

(a)           Each
of Holdings, the Borrower and its Subsidiaries has filed or caused to be filed all U.S. federal, state, local and non-U.S. Tax
returns required to have been filed by it that are material to such companies, taken as a whole, and each such Tax return is true
and correct in all material respects;

 

(b)           Each
of Holdings, the Borrower and its Subsidiaries has timely paid or caused to be timely paid all Taxes shown to be due and payable
by it on the returns referred to in clause (a) and all other material Taxes or assessments (or made adequate
provision (in accordance with GAAP) for the payment of all such amounts due) (except Taxes or assessments that are being contested
in good faith by appropriate proceedings in accordance with Section 5.03 and for which Holdings, the Borrower or any
of its Subsidiaries (as the case may be) has set aside on its books adequate reserves (in accordance with GAAP), which Taxes,
if not paid or adequately provided for, could, individually or in the aggregate, reasonably be expected to have, a Material Adverse
Effect); and

 

(c)           With
respect to each of Holdings, the Borrower and its Subsidiaries, no tax lien has been filed, and, to the knowledge of the Borrower
and its Subsidiaries, no claim is being asserted, with respect to any such Taxes, in each case in an amount in excess of $2,000,000
in the aggregate for all such tax liens and claims.

 

Section 3.14          Disclosure.

 

(a)           The
Loan Parties have disclosed to the Lenders all Material Agreements, instruments and corporate or other restrictions to which any
Loan Party or any Subsidiary is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect. Neither the Perfection Certificate nor any of the other reports, financial
statements, certificates or other information (other than information of a general economic or industry specific nature) furnished
by or on behalf of any Loan Party or any Subsidiary to the Administrative Agent or any Lender in connection with the negotiation
of this Agreement or any other Loan Document (as modified or supplemented by other information so furnished), when taken as a
whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to
projected financial information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time delivered and, if such projected financial information was delivered prior to the Closing
Date, as of the Closing Date.

 

(b)           As
of the Closing Date, to the best knowledge of the Borrower, the information included in the Beneficial Ownership Certification
provided on or prior to the Closing Date to any Lender in connection with this Agreement, if any, is true and correct in all material
respects.

 

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Section 3.15          Employee
Benefit Plans.

 

(a)           Except
as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) each Loan Party
and each ERISA Affiliate is in compliance with the applicable provisions of ERISA and the provisions of the Code relating to Plans
and the regulations and published interpretations thereunder; and (ii) no ERISA Event has occurred or is reasonably expected
to occur; the present value of all accumulated benefit obligations under each Plan (based on those assumptions used for purposes
of Accounting Standards Codification No. 715: Compensation Retirement Benefits) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan allocable to such accrued
benefits and the present value of all accrued benefit obligations of all underfunded Plans did not, as of the date of the most
recent financial statements reflecting such amounts, exceed the value of the assets of all such underfunded Plans.

 

(b)           Except
as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, no Foreign Plan Event
has occurred.

 

Section 3.16          Environmental
Matters. Except as to matters that could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect: (i) no written notice of violation, request for information, order, complaint or assertion of penalty has
been received by the Borrower or any of the Subsidiaries, and there are no judicial, administrative or other actions, suits or
proceedings pending or, to the knowledge of the Borrower, threatened which allege a violation of or liability under any Environmental
Laws or concerning Hazardous Materials, in each case relating to the Borrower or any of the Subsidiaries, (ii) the Borrower
and the Subsidiaries has all permits necessary for its operations to comply with all applicable Environmental Laws and is, and
during the term of all applicable statutes of limitation, has been, in compliance with the terms of such permits and with all
other applicable Environmental Laws, (iii) no Hazardous Material is located at any property currently or formerly owned,
operated or leased by the Borrower or any of the Subsidiaries in quantities or concentrations that would reasonably be expected
to give rise to any liability or obligation of the Borrower or any of the Subsidiaries under any Environmental Laws, and no Hazardous
Material has been generated by or on behalf of the Borrower or any of the Subsidiaries that has been transported to or Released
at or from any location in a manner that would reasonably be expected to give rise to any liability or obligation of the Borrower
or any of the Subsidiaries, and (iv) there is no agreement to which the Borrower or any of the Subsidiaries is a party in
which the Borrower or any of the Subsidiaries has assumed or undertaken, or retained, responsibility for any known or reasonably
likely liability or obligation arising under or relating to Environmental Laws.

 

Section 3.17          Security
Documents.

 

(a)           The
Collateral Agreement is effective to create in favor of the Administrative Agent (for the benefit of the Secured Parties) a legal,
valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of Deposit Accounts,
when Control Agreements are entered into by the Administrative Agent, and in the case of the other Collateral described in the
Collateral Agreement, when financing statements and other filings described on Schedule 3.17 are filed in the offices
specified on Schedule 3.17, the Administrative Agent (for the benefit of the Secured Parties) shall have a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and, subject to Section 9-315
of the New York Uniform Commercial Code, the proceeds thereof, as security for the Obligations, in each case to the extent security
interests in such Collateral can be perfected by the execution of Control Agreements or the filing Uniform Commercial Code financing
statements, as applicable, in each case prior and superior in right to any other Person (except, Liens expressly permitted by
Section 6.02).

 

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(b)          The
Mortgages, if any, shall be effective to create in favor of the Administrative Agent (for the benefit of the Secured Parties)
a legal, valid and enforceable Lien on all of the Loan Parties’ right, title and interest in and to the Mortgaged Property
thereunder and the proceeds thereof, and when such Mortgages are filed or recorded in the proper real estate filing or recording
offices, the Administrative Agent (for the benefit of the Secured Parties) shall have a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Mortgaged Property and, to the extent applicable, subject
to Section 9-315 of the Uniform Commercial Code, the proceeds thereof, in each case prior and superior in right to any other
Person, other than with respect to the rights of a Person pursuant to Liens expressly permitted by Section 6.02.

 

Section 3.18          Solvency.
Immediately after giving effect to the consummation of the Plan of Reorganization (including the making of all distributions and
payments required thereunder), the Transactions and the payment of the Transaction Costs on the Closing Date and immediately following
the making of the Revolver Loans on the Closing Date and on the date of each Borrowing and after giving effect to the application
of the proceeds of the Revolver Loans, (i) the fair value of the assets of Holdings, the Borrower and its Subsidiaries on
a consolidated basis, at a fair valuation, will exceed the debts and liabilities, direct, subordinated, contingent or otherwise,
of Holdings, the Borrower and its Subsidiaries on a consolidated basis, respectively; (ii) the present fair saleable value
of the property of Holdings, the Borrower and its Subsidiaries on a consolidated basis will be greater than the amount that will
be required to pay the probable liability of Holdings, the Borrower and its Subsidiaries on a consolidated basis, respectively,
on their debts and other liabilities, direct, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (iii) Holdings, the Borrower and its Subsidiaries on a consolidated basis will be able to pay their
debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured;
and (iv) Holdings, the Borrower and its Subsidiaries on a consolidated basis will not have unreasonably small capital with
which to conduct the businesses in which they are engaged as such businesses are now conducted and are proposed to be conducted
following the Closing Date.

 

Section 3.19          Labor
Matters. Except as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:
(a) there are no strikes or other labor disputes pending or, to the knowledge of Holdings or the Borrower, threatened in
writing against the Borrower or any of the Subsidiaries; (b) the hours worked and payments made to employees of the Borrower
and the Subsidiaries have not been in violation of the Fair Labor Standards Act or any other Applicable Law dealing with such
matters; (c) all Persons treated as contractors by the Borrower and the Subsidiaries are properly categorized as such, and
not as employees, under Applicable Law; and (d) all payments due from the Borrower or any of the Subsidiaries or for which
any claim may be made against the Borrower or any of the Subsidiaries, on account of wages and employee health and welfare insurance
and other benefits have been paid or accrued as a liability on the books of the Borrower or such Subsidiary to the extent required
by GAAP. Except as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect the consummation
of the Transactions and the payment of the Transaction Costs will not give rise to a right of termination or right of renegotiation
on the part of any union under any material collective bargaining agreement to which the Borrower or any of its Subsidiaries (or
any predecessor) is a party or by which Holdings, the Borrower or any of its Subsidiaries (or any predecessor) is bound.

 

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Section 3.20          Insurance.
Schedule 3.20 sets forth a true, complete and correct description of all material insurance maintained by or on behalf
of Holdings, the Borrower or the Subsidiaries as of the Closing Date. The Borrower maintains, and has caused each Subsidiary to
maintain, with financially sound and reputable insurance companies, insurance on all their real and personal property in such
amounts, subject to such deductibles and self-insurance retentions and covering such properties and risks as are adequate and
customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.

 

Section 3.21          USA
PATRIOT Act and OFAC.

 

(a)           To
the extent applicable, each Loan Party is in compliance, in all material respects, with the (i) Trading with the Enemy Act,
as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V,
as amended) and any other enabling legislation or executive order relating thereto, and (ii) USA PATRIOT Act. To the knowledge
of the Borrower, no part of the proceeds of the Loans will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended.

 

(b)           The
Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Loan Parties, their
Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and Sanctions, and the Loan
Parties, their Subsidiaries and their respective officers and employees.

 

(c)           To
the knowledge of the Loan Parties, each of their directors and agents are in compliance with Anti-Corruption Laws and Sanctions
in all material respects.

 

(d)           None
of (i) Holdings, the Borrower, any Subsidiary or any of their respective directors, officers or employees, or (ii) to
the knowledge of the Borrower, any agent of Holdings, the Borrower or any Subsidiary that will act in any capacity in connection
with or benefit from the credit facility established hereby, is a Sanctioned Person.

 

(e)           No
Borrowing or Letter of Credit, use of proceeds by the Borrower or other transaction contemplated by this Agreement will violate
Anti-Corruption Laws or Sanctions.

 

Section 3.22          EEA
Financial Institution. No Loan Party is an EEA Financial Institution.

 

Section 3.23          Plan
Assets. None of the Borrower or any of its Subsidiaries is an entity deemed to hold “plan assets” (within
the meaning of the Plan Asset Regulations), and neither the execution, delivery nor performance of the transactions contemplated
under this Agreement, including the making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a
non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.

 

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Section 3.24          Common
Enterprise. Each Loan Party expects to derive benefit (and its board of directors or other governing body has determined
that it may reasonably be expected to derive benefit), directly and indirectly, from the credit extended by the Lenders to the
Borrower hereunder, both in their separate capacities and as members of the group of companies. Each Loan Party has determined
that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by such Loan Party is
within its purpose, in furtherance of its direct and/or indirect business interests, will be of direct and/or indirect benefit
to such Loan Party, and is in its best interest.

 

Section 3.25          Material
Agreements. All Material Agreements to which any Loan Party or any Subsidiary is a party or is bound as of the date
of this Agreement are listed on Schedule 3.25. No Loan Party nor any Subsidiary is in default in the performance, observance
or fulfillment of any of the obligations, covenants or conditions contained in (i) any Material Agreement to which it is
a party or (ii) any agreement or instrument evidencing or governing any Material Indebtedness, in each case, except as could
not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

ARTICLE IV

 

Conditions Precedent

 

Section 4.01          Closing
Date. The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall
not become effective until the date on which each of the following conditions are satisfied or waived:

 

(a)           The
representations and warranties set forth in Article III hereof shall be true and correct in all material respects
(without duplication of any materiality qualification applicable thereto) as of such date, with the same effect as though made
on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which
case such representations and warranties shall be true and correct in all material respects (without duplication of any materiality
qualification applicable thereto) as of such earlier date).

 

(b)           At
the time of and immediately after giving effect to the Closing Date, no Event of Default or Default shall have occurred and be
continuing or would result from any Borrowing to occur on the date hereof or the application of the proceeds thereof.

 

(c)           The
Administrative Agent (or its counsel) shall have received (i) from each party hereto a counterpart of this Agreement signed
on behalf of such party (which, subject to Section 9.13(b), may include any Electronic Signatures transmitted by facsimile,
emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page) and (ii) either
(A) a counterpart of each other Loan Document signed on behalf of each party thereto or (B) written evidence satisfactory
to the Administrative Agent (which may include facsimile or other electronic transmission of a signed signature page thereof)
that each such party has signed a counterpart of such Loan Document.

 

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(d)          The
Administrative Agent shall have received, on behalf of itself and the Lenders on the Closing Date, a written opinion from Haynes
and Boone, LLP, special counsel for Holdings and the Borrower (A) dated the Closing Date, (B) addressed to the Administrative
Agent and the Lenders on the Closing Date and (C) in form and substance reasonably satisfactory to the Administrative Agent
and covering such other matters relating to the Loan Documents and the Transactions as the Administrative Agent shall reasonably
request, and each of Holdings and the Borrower hereby instructs its counsel to deliver such opinions.

 

(e)          The
Administrative Agent shall have received in the case of each Loan Party each of the items referred to in clauses (i),
(ii), (iii) and (iv) below:

 

(i)           a
copy of the certificate or articles of incorporation, certificate of limited partnership or certificate of formation, including
all amendments thereto, of each Loan Party, certified as of a recent date by the Secretary of State (or other similar official)
of the jurisdiction of its organization, and a certificate as to the good standing (to the extent such concept or a similar concept
exists under the laws of such jurisdiction) of each such Loan Party as of a recent date from such Secretary of State (or other
similar official);

 

(ii)          a
certificate of the secretary or assistant secretary or similar officer of each Loan Party dated the Closing Date and certifying:

 

(A)           that
attached thereto is a true and complete copy of the by-laws (or limited partnership agreement, limited liability company agreement
or other equivalent governing documents) of such Loan Party as in effect on the Closing Date,

 

(B)           that
attached thereto is a true and complete copy of resolutions duly adopted by the board of directors (or equivalent governing body)
of such Loan Party (or its managing general partner or managing member) authorizing the execution, delivery and performance of
the Loan Documents to which such Person is a party and, in the case of the Borrower, the borrowings hereunder, and that such resolutions
have not been modified, rescinded or amended and are in full force and effect on the Closing Date,

 

(C)           that
the certificate or articles of incorporation, certificate of limited partnership or certificate of formation of such Loan Party
has not been amended since the date of the last amendment thereto disclosed pursuant to clause (i) above,

 

(D)           as
to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection
herewith on behalf of such Loan Party,

 

(E)           as
to the absence of any pending proceeding for the dissolution or liquidation of such Loan Party;

 

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(iii)           a
certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary or similar
officer executing the certificate pursuant to clause (ii) above; and

 

(iv)           a
certificate of a Responsible Officer of the Borrower certifying that as of the Closing Date the conditions precedent contained
in clauses (a), (b), and (l) of this Section 4.01 are satisfied.

 

(f)           The
Administrative Agent shall have received each Control Agreement required to be provided pursuant to Section 5.12(d).

 

(g)           (i) the
Administrative Agent shall have received a duly completed Perfection Certificate dated as of the Closing Date, together with all
attachments contemplated thereby, (ii) the Administrative Agent shall have received the results of a search of the Uniform
Commercial Code (or equivalent) filings made with respect to the Loan Parties and copies of the financing statements (or similar
documents) disclosed by such search and (iii) the Administrative Agent shall have received evidence reasonably satisfactory
to the Administrative Agent that the Liens indicated by such financing statements (or similar documents) are either permitted
by Section 6.02 or have been released (or authorized for release in a manner reasonably satisfactory to the Administrative
Agent).

 

(h)           Each
document (including any Uniform Commercial Code financing statement) required by the Security Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent,
for the benefit of itself, the Lenders and the other Secured Parties, a perfected Lien on the Collateral described therein prior
and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 6.02 to
be prior to the Liens of the Administrative Agent in the applicable Collateral (including Liens on Term Loan Priority Collateral
securing the Term Loan Obligations permitted under Section 6.02(b)(iii)), shall have been filed, registered or recorded
or immediately upon the closing of this Agreement will be filed, registered or recorded by Administrative Agent.

 

(i)            On
the Closing Date, substantially concurrently with the funding of the Loans, Holdings and its Subsidiaries shall have paid in full
the Existing Debt and caused the termination of any commitments to lend or make other extensions of credit under the Prepetition
Credit Agreement, the DIP ABL Credit Agreement and the DIP RE Credit Agreement.

 

(j)            The
Lenders shall have received a solvency certificate substantially in the form of Exhibit B and signed by a Responsible
Officer of the Parent.

 

(k)           The
Administrative Agent shall have received all fees payable thereto or to any Lender on or prior to the Closing Date and, to the
extent invoiced at least 3 Business Days prior to the Closing Date, all other amounts due and payable pursuant to the Loan Documents
on or prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all reasonable and documented
(in summary format) out-of-pocket expenses (including reasonable and documented (in summary format) fees, charges and disbursements
of Vinson & Elkins LLP) required to be reimbursed or paid by the Loan Parties hereunder or under any other Loan Document.

 

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(l)            Since
the Petition Date, there shall not have occurred and there is no circumstance or occurrence that is reasonably likely to have
(individually or in the aggregate) a Material Adverse Effect, excluding the pendency of the Cases.

 

(m)          The
Administrative Agent shall have received, at least five (5) days prior to the Closing Date, (i) 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 and (ii) to the extent the Borrower qualifies
as a “legal entity customer” under the Beneficial Ownership Regulation, at least five (5) days prior to the Closing
Date, any Lender that has requested, in a written notice to the Borrower, a Beneficial Ownership Certification in relation to
the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery
by such Lender of its signature page to this Agreement, the condition set forth in this clause (ii) shall be deemed
to be satisfied).

 

(n)          The
Administrative Agent shall have received satisfactory evidence that after giving effect to all Borrowings to be made on the Closing
Date, the issuance of any Letters of Credit on the Closing Date (including the Existing Letters of Credit), all payments to be
made to unsecured creditors and other claimants on the effective date of the Plan of Reorganization and the payment of all fees
and expenses due hereunder, Availability (which for the avoidance of doubt will be calculated after giving effect to the Availability
Block) shall not be less than $25,000,000.

 

(o)          The
terms of (i) the Plan of Reorganization and (ii) all orders of the Bankruptcy Court approving the Plan of Reorganization,
the credit facility provided under this Agreement, and the Fee Letter, or affecting the rights, remedies and obligations of the
Administrative Agent and the Lenders hereunder and thereunder, shall be in form and substance acceptable to the Lenders in all
material respects.

 

(p)          The
Confirmation Order shall have been entered upon proper notice to all parties to be bound by the Plan of Reorganization, all as
may be required by the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, order of the Bankruptcy Court, and any
applicable local bankruptcy rules. Moreover, (i) unless otherwise waived by the Lenders, no appeal or petition for review,
rehearing or certiorari with respect to the Confirmation Order may be pending and (ii) the Confirmation Order must otherwise
be in full force and effect. The effective date of the Plan of Reorganization shall have occurred on or prior to the Closing Date.

 

(q)          The
Bankruptcy Court shall have entered an order, in form and substance acceptable to the Administrative Agent, approving the Fee
Letter.

 

(r)           The
Administrative Agent shall have received evidence of insurance coverage in form, scope, and substance reasonably satisfactory
to the Administrative Agent and otherwise in compliance with the terms of Section 5.02 hereof.

 

(s)           The
Administrative Agent shall have received a Borrowing Base Certificate prepared as of the last day of November 2020 at least
5 Business Days prior to the Closing Date, which shall be in form reasonably satisfactory to the Administrative Agent.

 

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(t)           All
legal (including tax) and regulatory matters shall be satisfactory to the Administrative Agent and the Lenders, including compliance
with all applicable requirements of Regulation T, Regulation U and Regulation X of the Board, and the Administrative Agent’s
counsel shall have completed all legal due diligence.

 

(u)          The
corporate structure, capital structure and other debt instruments, material accounts and governing documents of the Loan Parties
shall be acceptable to the Administrative Agent in its sole discretion.

 

(v)          The
Administrative Agent shall have received evidence that all consents and approvals, if any, required to be obtained from any Governmental
Authority or other Person in connection with the Transactions (including member and shareholder approvals) have been obtained
and are in full force and effect.

 

(w)         The
Administrative Agent shall have received executed copies of the Term Loan Agreement and all material Term Loan Documents, each
of which shall be in form and substance satisfactory to the Administrative Agent in all respects.

 

(x)          The
Administrative Agent shall have received a copy of the Intercreditor Agreement executed by the Term Loan Agent and the Loan Parties
and which shall be in form and substance satisfactory to the Administrative Agent and the Lenders in all respects.

 

Each Agent and each
Lender, by delivering its signature page to this Agreement shall be deemed to have acknowledged receipt of and consented
to and approved each Loan Document and each other document required to be approved by any Agent or Lender, as applicable, on the
Closing Date.

 

Section 4.02          Conditions
Precedent to All Credit Extensions. On the date of each Credit Extension (including any Credit Extension to be made
on the Closing Date):

 

(a)           the
Borrower shall have delivered to the Administrative Agent a customary Borrowing Request, or LC Request as the case may be;

 

(b)           after
giving effect to the requested Credit Extension, Availability shall not be less than $0;

 

(c)           no
Default or Event of Default shall exist at the time of, or result from, such Credit Extension;

 

(d)           the
representations and warranties of each Loan Party set forth in Article III of this Agreement or in any other Loan
Document shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein)
on the date of, and upon giving effect to, such Credit Extension (except for representations and warranties that expressly relate
to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as such
earlier date);

 

(e)           with
respect to the issuance of any Letter of Credit, the LC Conditions shall be satisfied; and

 

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(f)           after
giving effect to the requested Credit Extension (net of any substantially concurrent use of the proceeds of such Credit Extension
or, with respect to the funding of payroll expenses in the ordinary course of business, within 7 days of such Credit Extension),
the Consolidated Cash Balance shall not exceed $20,000,000.

 

Each request by the Borrower for a Credit
Extension shall constitute a representation by the Borrower that the conditions in clauses (b) through (f) above
are satisfied on the date of such request and on the date of such Credit Extension.

 

ARTICLE V

 

Affirmative Covenants

 

Each of Holdings (solely
as to Sections 5.01, 5.05 and 5.09 as applicable to it) and the Borrower covenants and agrees with the
Administrative Agent, each Lender and each Issuing Bank that until all of the Secured Obligations have been Paid in Full, unless
the Required Lenders shall otherwise consent in writing, the Borrower (and Holdings solely to the extent applicable to it) will,
and the Borrower will cause each of the Subsidiaries to:

 

Section 5.01          Existence;
Businesses and Properties.

 

(a)           Do
or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence, except (i) where
the failure to do so would not reasonably be expected to have a Material Adverse Effect and (ii) as otherwise expressly permitted
under Section 6.05.

 

(b)           Except
where the failure to do so would not reasonably be expected to have a Material Adverse Effect, do or cause to be done all things
necessary to (i) lawfully obtain, preserve, renew, extend and keep in full force and effect the permits, franchises, authorizations,
patents, trademarks, service marks, trade names, copyrights, licenses and rights with respect thereto reasonably necessary to
the normal conduct of the business of the Borrower and the Subsidiaries and (ii) at all times maintain and preserve all property
reasonably necessary to the normal conduct of the business of the Borrower and the Subsidiaries and keep such property in satisfactory
repair, working order and condition and from time to time make, or cause to be made, all needful and proper repairs, renewals,
additions, improvements and replacements thereto in accordance with prudent industry practice (in each case except as expressly
permitted by this Agreement).

 

Section 5.02          Insurance.

 

(a)           Maintain,
with financially sound and reputable insurance companies having a financial strength rating of at least “A-” from
A.M. Best & Co., insurance in such amounts and against such risks and such other hazards as are customarily maintained
by similarly situated companies engaged in the same or similar businesses operating in the same or similar locations. Each such
policy of insurance shall (i) name the Administrative Agent, on behalf of Secured Parties as an additional insured thereunder
as its interests may appear, to the extent customary for such type of insurance and (ii) in the case of each casualty insurance
policy and marine cargo insurance policy, contain a lender’s loss payable clause and endorsement or such other customary
endorsement, reasonably satisfactory in form and substance to the Administrative Agent, that names the Administrative Agent, on
behalf of Lenders as the loss payee and mortgagee, if applicable, thereunder and to the extent available provides for at least
thirty (30) days’ prior written notice to the Administrative Agent of any cancellation of such policy.

 

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(b)           If
any improved real property is included in the Collateral and the area in which the Premises (as defined in the Mortgages) are
located is designated a special “flood hazard area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), obtain and maintain with financially sound and reputable insurance companies such
flood insurance in such reasonable amount as the Administrative Agent and the Lenders may from time to time reasonably require
and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance
Laws and promptly upon request of the Administrative Agent or any Lender, deliver to the Administrative Agent or such Lender,
as applicable, evidence of such compliance in form and substance reasonably satisfactory to the Administrative Agent or such Lender,
as applicable, including evidence of annual renewals of such flood insurance.

 

Section 5.03          Taxes.
Except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, pay and discharge promptly
when due all material Taxes, imposed upon it or upon its income or profits or in respect of its property, as well as all lawful
claims which, if unpaid, might give rise to a Lien (other than a Lien permitted under Section 6.02) upon such properties
or any part thereof except to the extent not overdue by more than thirty (30) days or, if more than thirty (30) days
overdue (a) the validity or amount thereof shall be contested in good faith by appropriate proceedings, and the Borrower
or the affected Subsidiary, as applicable, shall have set aside on its books adequate reserves in accordance with GAAP with respect
thereto and (b) in the case of a Tax or claim which has or may become a Lien on any of the Collateral, such contest proceedings
conclusively operate to stay the sale of any portion of the Collateral to satisfy such Tax or claim; provided, however,
that each Loan Party will, and will cause each Subsidiary to, remit withholding taxes and other payroll taxes to appropriate Governmental
Authorities as and when claimed to be due, notwithstanding the foregoing exceptions.

 

Section 5.04          Financial
Statements, Reports, etc.

 

Furnish to the Administrative
Agent (which will promptly furnish such information to the Lenders):

 

(a)           within
ninety (90) days after the end of each fiscal year (commencing with fiscal year 2021), a consolidated balance sheet and related
statements of operations, cash flows and owners’ equity showing the financial position of Holdings and its Subsidiaries
as of the close of such fiscal year and the consolidated results of its operations during such year and setting forth in comparative
form the corresponding figures for the prior fiscal year, which consolidated balance sheet and related statements of operations,
cash flows and owners’ equity shall be accompanied by customary management’s discussion and analysis and audited by
independent public accountants of recognized national standing and accompanied by an opinion of such accountants (which opinion
shall be without a “going concern” or like qualification, other than solely with respect to an upcoming maturity date
of Indebtedness or a potential inability to satisfy a financial covenant, or exception and without any qualification or exception
as to the scope of such audit) to the effect that such consolidated financial statements fairly present, in all material respects,
the financial condition and results of operations of Holdings and its Subsidiaries on a consolidated basis in accordance with
GAAP, supporting schedules reconciling such consolidated balance sheet and related statements of operations and cash flows with
the consolidated financial condition and results of operations of Holdings or the Borrower, as applicable, for the relevant period
(it being understood that the delivery by the Borrower of annual reports on Form 10-K of Holdings and its consolidated Subsidiaries
shall satisfy the requirements of this Section 5.04(a) to the extent such annual reports include the information
specified herein);

 

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(b)           within
forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year (commencing with the first
full fiscal quarter ending after the occurrence of the Spring-Out Date), a consolidated balance sheet and related statements of
operations and cash flows showing the financial position of Holdings and its Subsidiaries as of the close of such fiscal quarter
and the consolidated results of its operations during such fiscal quarter and the then-elapsed portion of the fiscal year and
setting forth in comparative form the corresponding figures for the corresponding periods of the prior fiscal year, all of which
shall be in reasonable detail and which consolidated balance sheet and related statements of operations and cash flows shall be
accompanied by customary management’s discussion and analysis and certified by a Financial Officer of the Borrower on behalf
of the Borrower as fairly presenting, in all material respects, the financial position and results of operations of Holdings and
its Subsidiaries on a consolidated basis in accordance with GAAP (subject to normal year-end audit adjustments and the absence
of footnotes), supporting schedules reconciling such consolidated balance sheet and related statements of operations and cash
flows with the consolidated financial position and results of operations of Holdings or the Borrower, as applicable, for the relevant
period (it being understood that the delivery by the Borrower of quarterly reports on Form 10-Q of Holdings and its consolidated
Subsidiaries shall satisfy the requirements of this Section 5.04(b) to the extent such quarterly reports include
the information specified herein);

 

(c)           at
all times prior to the end of the first full fiscal quarter ending after the occurrence of the Spring-Out Date and at any time
thereafter if a Cash Dominion Trigger Period is in effect, within thirty (30) days after the end of each month (or after
the Spring-Out Date, for each of the first two (2) months of each fiscal quarter), a balance sheet and related statements
of operations and cash flows showing the financial position of Holdings and its Subsidiaries as of the close of such month and
the consolidated results of its operations during such month, all of which shall be in reasonable detail and certified by a Financial
Officer of the Borrower on behalf of the Borrower as fairly presenting, in all material respects, the financial position and results
of operations of Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP (subject to normal year-end audit
adjustments and the absence of footnotes);

 

(d)           (i) concurrently
with any delivery of financial statements under paragraphs (a) or (b) above, a certificate of a Financial
Officer of the Borrower in substantially the form attached hereto as Exhibit C (x) certifying that no Default
or Event of Default has occurred or, if such a Default or an Event of Default has occurred, specifying the nature and extent thereof
and any corrective action taken or proposed to be taken with respect thereto, and (y) setting forth the reasonably detailed
calculations with respect to the Consolidated Fixed Charge Coverage Ratio for such period, whether or not the requirements of
Section 6.10 are then in effect;

 

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(e)           promptly
after the same become publicly available, copies of all periodic and other publicly available reports, proxy statements and, to
the extent requested by the Administrative Agent, other materials filed by Holdings, the Borrower or any of its Subsidiaries with
the SEC or any securities exchange, or distributed to its stockholders generally, as applicable and all press releases and other
statements made available generally by Holdings or any of its Subsidiaries to the public concerning material developments in the
business of Holdings or any of its Subsidiaries;

 

(f)            together
with each delivery under Section 5.04(a), a detailed consolidated and consolidated quarterly budget for such fiscal
year (including a projected consolidated and consolidated balance sheet of the Borrower and its Subsidiaries as of the end of
such fiscal year, and the related consolidated and consolidated statements of projected cash flow and projected income) and, as
soon as available, significant revisions, if any, of such budget and quarterly projections with respect to such fiscal year (to
the extent that such revisions have been approved by the Borrower’s board of directors (or equivalent governing body)),
including a description of underlying assumptions with respect thereto (collectively, the “Budget”), which
Budget shall in each case be accompanied by the statement of a Financial Officer of the Borrower to the effect that, to such Financial
Officer’s knowledge, the Budget is a reasonable estimate for the period covered thereby;

 

(g)           promptly
following a request therefor, all documentation and other information that the Administrative Agent reasonably requests on its
behalf or on behalf of any Lender in order to comply with its ongoing obligations under applicable “know your customer”
and anti-money laundering rules and regulations, including the USA PATRIOT Act;

 

(h)           together
with the delivery of the annual compliance certificate required by Section 5.04(d), deliver an updated Perfection
Certificate reflecting all changes since the date of the information most recently received pursuant to this paragraph (h) or
Section 5.09(e);

 

(i)            promptly
following reasonable request therefore from the Administrative Agent, copies of (i) any documents described in Sections 101(f) and/or
(j) of ERISA with respect to any Plan, and/or (ii) any notices or documents described in Sections 101(f), (k) and/or
(l) of ERISA requested with respect to any Multiemployer Plan; provided, that if any Loan Party or any ERISA Affiliate
has not requested such documents or notices from the administrator or sponsor of the applicable Plan or Multiemployer Plan, then,
upon reasonable request of the Administrative Agent, the Loan Party(ies) and/or the ERISA Affiliate(s) shall promptly make
a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents
and notices to the Administrative Agent promptly after receipt thereof;

 

(j)            promptly,
from time to time, such other information regarding the operations, business affairs and financial condition of Holdings, the
Borrower or any of its Subsidiaries, or compliance with the terms of any Loan Document, as in each case the Administrative Agent
may reasonably request (for itself or on behalf of any Lender);

 

(k)           promptly,
but in any event within three (3) Business Days after the furnishing, receipt or execution thereof, copies of (i) any
amendment, waiver, consent or other written modification of the Term Loan Agreement or any material amendment, waiver, consent
or other written modification of any other Term Loan Document, (ii) any notice of default or any notice related to the exercise
of remedies under the Term Loan Documents, and (iii) any other material notice, certificate or other information or document
provided to, or received from, the Term Loan Agent or the Term Loan Secured Parties (in their capacities as such);

 

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(l)            promptly,
but in any event within five (5) Business Days after the furnishing, receipt or execution thereof, copies of (i) any
termination, material amendment or other material written modification of any Material Agreement or any Material Indebtedness
(other than the Term Loan Obligations), and (ii) any notice of default or any notice related to the exercise of remedies
with respect to any Material Indebtedness (other than the Term Loan Obligations); and

 

(m)          documents
required to be delivered pursuant to this Section 5.04 may be delivered electronically and if so delivered, shall
be deemed to have been delivered on the date (i) on which Holdings or the Borrower (or a representative thereof) posts such
documents (or provides a link thereto) at www.tuesdaymorning.com; provided that, other than with respect to items required
to be delivered pursuant to Section 5.04(e) above, Holdings or the Borrower shall promptly notify (which notice
may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents at www.tuesdaymorning.com
and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents; (ii) on
which such documents are delivered by Holdings or the Borrower to the Administrative Agent for posting on behalf of Holdings and
the Borrower on IntraLinks, SyndTrak or another relevant secure website, if any, to which each Lender and the Administrative Agent
have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); (iii) on which
such documents are faxed to the Administrative Agent (or electronically mailed to an address provided by the Administrative Agent);
or (iv) with respect to any item required to be delivered pursuant to Section 5.04(e) above in respect of
information filed by Holdings or its applicable Parent Entity with any securities exchange or with the SEC or any analogous Governmental
Authority or private regulatory authority with jurisdiction over matters relating to securities (other than Form 10-Q reports
and Form 10-K reports), on which such items have been made available on the SEC website or the website of the relevant analogous
governmental or private regulatory authority.

 

Section 5.05          Notices
of Material Events. Furnish to the Administrative Agent written notice of the following promptly after any Responsible
Officer of Holdings or the Borrower obtains actual knowledge thereof:

 

(a)           any
Default or Event of Default, specifying the nature and extent thereof and the corrective action (if any) proposed to be taken
with respect thereto;

 

(b)           any
action, suit or proceeding, whether at law or in equity or by or before any Governmental Authority or in arbitration, against
Holdings, the Borrower or any of their Subsidiaries would reasonably be expected to have a Material Adverse Effect;

 

(c)           the
occurrence of any ERISA Event or Foreign Plan Event that, individually or together with all other ERISA Events or Foreign Plan
Events that have occurred, would reasonably be expected to have a Material Adverse Effect;

 

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(d)           the
filing of any Lien for unpaid taxes in excess of $1,000,000;

 

(e)           any
change in the Borrower’s chief executive officer or chief financial officer;

 

(f)            any
discharge, resignation or withdrawal of the registered public accounting firm (provided that filing an applicable 8-K with the
SEC shall satisfy any notice requirements under clause (e) above or this clause (f));

 

(g)           any
Casualty Event or the commencement of any action or proceeding that could reasonably be expected to result in a Casualty Event,
in each case involving assets with a fair market or book value in excess of $1,000,000;

 

(h)           any
change in the information provided in the Beneficial Ownership Certification, if any, delivered to such Lender that would result
in a change to the list of beneficial owners identified in such certification; and

 

(i)            any
other development specific to Holdings, the Borrower or any of their Subsidiaries that is not a matter of general public knowledge
and that has had, or would reasonably be expected to have, a Material Adverse Effect.

 

Each notice delivered
under this Section 5.05 (i) shall be in writing and (ii) shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth the details of the event or development requiring such notice and (if applicable) any action
taken or proposed to be taken with respect thereto.

 

Section 5.06          Compliance
with Laws. (a) Comply with all laws, rules, regulations and orders of any Governmental Authority applicable to
it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect; provided that this Section 5.06 shall not apply to Environmental Laws, which
are the subject of Section 5.08, or to laws related to Taxes, which are the subject of Section 5.03 and
(b) maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries
and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

 

Section 5.07          Maintaining
Records; Access to Properties and Inspections.

 

(a)           Maintain
all financial records in a manner sufficient to permit the preparation of consolidated financial statements in accordance with
GAAP.

 

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(b)           Permit
the Administrative Agent, subject (except when an Event of Default exists) to reasonable advance notice to, and reasonable coordination
with, the Borrower and normal business hours, to visit and inspect the properties of the Borrower, at the Borrower’s expense
as provided in clause (c) below, inspect, audit and make extracts from the Borrower’s corporate, financial
or operating records, and discuss with its officers, employees, agents, advisors and independent accountants (subject to such
accountants’ customary policies and procedures) the Borrower business, financial condition, assets and results of operations
(it being understood that a representative of the Borrower is allowed to be present in any discussions with officers, employees,
agent, advisors and independent accountants); provided that only one field examination and one inventory appraisal with
respect to any Borrowing Base Collateral per 12-month period will be at the Borrower’s expense; provided further,
that if at any time Availability is less than the greater of (i) $25.0 million and (ii) 25% of the Line Cap during such
12-month period, one additional field examination and one additional inventory appraisal of Borrowing Base Collateral may be performed
in such 12-month period at the Borrower’s expense, except that during the existence and continuance of a Specified Event
of Default, there shall be no limit on the number of additional field examinations or inventory appraisals of Borrowing Base Collateral
that shall be permitted at the Administrative Agent’s request and at the Borrower’s expense. The foregoing shall not
limit the number of field examinations or inventory appraisals that can be performed by the Administrative Agent at its own expense.
No such inspection or visit shall unduly interfere with the business or operations of the Borrower, nor result in any damage to
the Property or other Collateral. Neither the Administrative Agent nor any Lender shall have any duty to the Borrower to make
any inspection, nor to share any results of any inspection, appraisal or report with the Borrower. The Borrower acknowledges that
all inspections, appraisals and reports are prepared by the Administrative Agent and Lenders for their purposes, and the Borrower
shall not be entitled to rely upon them.

 

(c)           Reimburse
the Administrative Agent for all reasonable and documented out-of-pocket costs and expenses (other than legal fees or costs and
expenses which are covered under Section 9.05) of the Administrative Agent in connection with (i) examinations
of the Borrower’s books and records or any other financial or Collateral matters as the Administrative Agent deems appropriate;
and (ii) field examinations and inventory appraisals of Borrowing Base Collateral; in each case subject to the limitations
on such examinations, audits and appraisals permitted under the preceding paragraph. Subject to and without limiting the foregoing,
the Borrower specifically agrees to pay the Administrative Agent’s then standard charges for examination activities, including
the standard charges of the Administrative Agent’s internal appraisal group. This Section shall not be construed to
limit the Administrative Agent’s right to use third parties for such purposes.

 

Section 5.08          Compliance
with Environmental Laws.

 

(a)           Comply,
and make reasonable efforts to cause all lessees and other Persons occupying its properties to comply, with all Environmental
Laws applicable to its operations and properties; and obtain and renew all authorizations and permits required pursuant to Environmental
Law for its operations and properties, in each case in accordance with Environmental Laws. This clause (a) shall
be deemed not breached by a noncompliance with the foregoing if, upon learning of such noncompliance, the Borrower and any of
its affected Subsidiaries promptly undertake reasonable efforts to eliminate such noncompliance, and such noncompliance and the
elimination thereof, in the aggregate with any other noncompliance with any of the foregoing and the elimination thereof, could
not reasonably be expected to have a Material Adverse Effect.

 

(b)           Except
as could not reasonably be expected to have a Material Adverse Effect, generate, use, treat, store, release, dispose of, and otherwise
manage Hazardous Materials in a manner that would not reasonably be expected to result in a material liability to the Borrower
or any of the Subsidiaries or to materially affect any Real Property; and take reasonable efforts to prevent any other Person
from generating, using, treating, storing, releasing, disposing of, or otherwise managing Hazardous Materials in a manner that
could reasonably be expected to result in a material liability to, or materially affect any Real Property.

 

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Section 5.09          Further
Assurances; Additional Guarantors; Mortgages.

 

(a)           Without
limiting anything contained in this Section 5.09, each Loan Party will, and will cause each Subsidiary to, execute
and deliver, or cause to be executed and delivered, to the Administrative Agent such documents, financing statements, agreements
and instruments, and will take or cause to be taken such further actions (including the filing and recording of financing statements,
fixture filings, Mortgages and other documents and recordings of Liens in stock registries), that may be required under any Applicable
Law, or that the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this
Agreement and the other Loan Documents and to ensure the perfection and priority of the Liens created or intended to be created
by the Security Documents, all at the expense of the Loan Parties.

 

(b)           If
any asset (other than real property or improvements thereto or any interest therein) that has an individual fair market value
in an amount greater than $1.0 million (as reasonably estimated by the Borrower) is acquired by Holdings, the Borrower or
any Subsidiary Guarantor after the Closing Date or owned by an entity at the time it becomes a Subsidiary Guarantor (including,
without limitation, as the result of a Division) (in each case other than assets constituting Collateral under a Security Document
that become subject to a perfected Lien in favor of the Administrative Agent under such Security Document upon acquisition thereof
or any Excluded Asset), cause such asset to be subjected to a perfected Lien securing the Obligations and take, and cause the
applicable Loan Party to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant
and perfect such Liens, including actions described in paragraph (a) of this Section, all at the expense of the
Loan Parties, subject to paragraph (f) below.

 

(c)           Within
sixty (60) days following the Administrative Agent’s written request, grant and cause each of the Subsidiary Guarantors
to grant to the Administrative Agent (or, if the Administrative Agent shall so direct, a collateral agent, sub-agent or similar
agent) security interests and mortgages in the Mortgageable Real Property of the Borrower or any such Subsidiary Guarantors specified
in such request pursuant to Mortgages reasonably satisfactory to the Administrative Agent and constituting valid and enforceable
Liens subject to no other Liens except as are permitted by Section 6.02. With respect to each such Mortgage, the Borrower
shall deliver (at its expense) to the Administrative Agent contemporaneously therewith all Real Property Documents requested by
the Administrative Agent, other than those Real Property Documents which are to be obtained (at the Borrower’s expense)
by the Administrative Agent.

 

(d)           If
(i) any additional Subsidiary (other than an Excluded Subsidiary) is formed or acquired after the Closing Date (including,
without limitation, as the result of a Division) or (ii) any Excluded Subsidiary ceases to be an Excluded Subsidiary pursuant
to the definition thereof, concurrently with the formation or acquisition thereof or of such Subsidiary ceasing to be an Excluded
Subsidiary, notify the Administrative Agent and the Lenders thereof and, within ten (10) Business Days after such date or
such longer period as the Administrative Agent shall agree, cause such Subsidiary to become a Subsidiary Guarantor by delivering
a supplement to the Collateral Agreement, in the form specified therein, duly executed on behalf of such Subsidiary. Upon execution
and delivery thereof, each such Person (x) shall automatically become a Subsidiary Guarantor under the Loan Documents and
thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents and (y) will
grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property
of such Loan Party which constitutes Collateral. In connection therewith, the Administrative Agent shall have received all documentation
and other information regarding such newly formed or acquired Subsidiary as may be required to comply with the applicable “know
your customer” rules and regulations, including the USA Patriot Act.

 

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(e)           (i) Furnish
to the Administrative Agent promptly (and in any event within five (5) Business Days or such later date as the Administrative
Agent may agree in its sole discretion) written notice of any change in (A) any Loan Party’s corporate or organization
name, (B) any Loan Party’s organizational form or (C) any Loan Party’s organizational identification number;
provided that neither Holdings nor the Borrower shall effect or permit any such change unless all filings have been made,
or will have been made within any applicable statutory period, under the Uniform Commercial Code or otherwise that are required
in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected security
interest in all the Collateral for the benefit of the Secured Parties and (ii) promptly notify the Administrative Agent if
any material portion of the Collateral is damaged or destroyed.

 

(f)           To
the extent any improved real property is to be included in the Collateral, each Loan Party will, and will cause each Subsidiary
to, execute and/or deliver, as applicable, such other documents as the Administrative Agent may reasonably request on behalf of
any Lender that is a regulated financial institution or any Affiliate of such a Lender (each, a “Regulated Lender Entity”),
in each case, to the extent such other documents are required for compliance by such Regulated Lender Entity with Applicable Law
with respect to flood insurance diligence, documentation and coverage under all applicable Flood Insurance Laws. Prior to signing
by the Loan Parties of any mortgage or deed of trust to secure the Secured Obligations, the applicable Loan Parties and the Administrative
Agent shall have provided each Regulated Lender Entity requesting the same a copy of the life of loan flood zone determination
relative to the property to be subject to such mortgage or deed of trust delivered to the Administrative Agent and copies of the
other documents required by any such Regulated Lender Entity as provided in the preceding sentence and the Administrative Agent
shall have received confirmation from each Regulated Lender Entity that flood insurance due diligence and flood insurance compliance
has been satisfactorily completed by such Regulated Lender Entity (such confirmation not to be unreasonably withheld, conditioned
or delayed, and shall be delivered promptly upon such completion by the applicable Regulated Lender Entity).

 

(g)           At
any time that any improved real property constitutes Collateral, no modification of a Loan Document shall increase any Regulated
Lender Entity’s Revolver Commitment or extend the Revolver Termination Date as to any Regulated Lender Entity hereunder
until the Administrative Agent shall have received confirmation from each such Regulated Lender Entity that flood insurance due
diligence and flood insurance compliance has been satisfactorily completed by such Regulated Lender Entity (such confirmation
not to be unreasonably withheld, conditioned or delayed, and shall be delivered promptly upon such completion by the applicable
Regulated Lender Entity).

 

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(h)          The
provisions of this Section 5.09 with respect to the granting and perfection of security interests need not be satisfied
with respect to (i) leasehold real property, (ii) Equity Interests of any Joint Ventures which cannot be pledged without
the consent of one (1) or more third parties that is not an Affiliate of a Loan Party, (iii) Margin Stock, (iv) security
interests to the extent the same would result in adverse tax consequences as reasonably determined by the Borrower and agreed
to by the Administrative Agent, (v) any property and assets the pledge of which would require governmental consent, approval,
license or authorization (in each case, after giving effect to the applicable anti-assignment provisions of the Uniform Commercial
Code or other Applicable Law), (vi) the General Unsecured Cash Fund so long as it is maintained in accordance with the Plan
of Reorganization, and (vii) all foreign intellectual property and any “intent-to-use” trademark applications
prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the
extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark application under applicable federal law (collectively, “Excluded
Assets”). Notwithstanding anything to the contrary herein, (x) the Loan Parties shall not be required to grant
a security interest in any Collateral or perfect a security interest in (A) any Collateral to the extent the burden or cost
of obtaining or perfecting a security interest therein outweighs the benefit of the security afforded thereby as reasonably determined
by the Borrower and the Administrative Agent or (B) in any contract, license or permit, if the granting of a security interest
in such asset would be prohibited by enforceable anti-assignment provisions of contracts or Applicable Law or a pledge would violate
the terms of any contract with respect to such assets (in each case, after giving effect to the applicable anti-assignment provisions
of the Uniform Commercial Code or other Applicable Law) or would trigger termination pursuant to any “change of control”
or similar provision in any contract and (y) the Administrative Agent’s Lien in the following Collateral shall not
be required to be perfected (A) motor vehicles and any other assets subject to state law certificate of title statutes, (B) commercial
tort claims with an individual value not in excess of $1,000,000, (C) letter of credit rights to the extent not perfected
by the filing of a financing statement under the Uniform Commercial Code and (D) Excluded Deposit Accounts.

 

Section 5.10          Fiscal
Year; Accounting. In the case of Holdings and the Borrower, (i) cause its fiscal year to end on June 30 and
(ii) prohibit any change to the accounting policies or reporting practices of the Loan Parties, except in accordance with
GAAP.

 

Section 5.11          [RESERVED].

 

Section 5.12          Collateral
Monitoring and Reporting.

 

(a)           Borrowing
Base Certificates. The Borrower shall deliver to the Administrative Agent (and the Administrative Agent shall promptly deliver
same to the Lenders) monthly Borrowing Base Certificates by the 15th Business Day of each month prepared as of the
close of business on the last Business Day of the previous month or if a Liquidity Event shall have occurred and be continuing,
the Borrower shall deliver to the Administrative Agent weekly Borrowing Base Certificates by the fourth Business Day of every
week prepared as of the close of business on Saturday of the previous week, which weekly Borrowing Base Certificates shall be
in the form of Exhibit F unless otherwise reasonably agreed to by the Administrative Agent. All calculations of Availability
in any Borrowing Base Certificate shall be made by the Borrower and certified by a Responsible Officer, provided that the
Administrative Agent may from time to time review and adjust any such calculation to the extent the calculation is not made in
accordance with this Agreement or does not accurately reflect the Availability Reserve. By the 20th day after the end
of each fiscal quarter (commencing with the fiscal quarter ending March 31, 2021), the Borrower shall deliver updates, if
any, to Schedule 2(b) to the Perfection Certificate most recently delivered to reflect all locations of Inventory at the
end of such fiscal quarter. Concurrently with the delivery of each Borrowing Base Certificate pursuant to this Section 5.12(a),
the Borrower shall deliver to the Administrative Agent a Consolidated Cash Balance Report setting forth the Consolidated Cash
Balance as of the end of the prior Business Day.

 

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(b)          Records
and Schedules of Accounts. The Borrower shall keep accurate and complete records of its Accounts and Credit Card Receivables,
including all payments and collections thereon, and shall submit to the Administrative Agent sales, collection, reconciliation
and other reports in form satisfactory to the Administrative Agent on a periodic basis (but not more frequently than at the time
of delivery of each Borrowing Base Certificate pursuant to paragraph (a) of this Section 5.12). The Borrower
shall also provide to the Administrative Agent, on or before the 15th Business Day of each month, listing by credit
card provider of all outstanding Credit Card Receivables as of the end of the preceding month.

 

(c)          Proceeds
of Collateral. The Borrower shall request in writing and otherwise take all necessary steps to ensure that all payments on
Accounts or otherwise relating to Collateral are made directly to a Deposit Account subject to a Control Agreement. If the Borrower
receives cash or any check, draft or other item of payment payable to the Borrower with respect to any Collateral, it shall hold
the same in trust for the Administrative Agent and promptly deposit the same into a Collateral Deposit Account subject to a Control
Agreement.

 

(d)          Administration
of Deposit Accounts; Control Agreements.

 

(i)             Schedule 5.12
sets forth all Deposit Accounts (including Excluded Deposit Accounts), securities accounts and commodities accounts maintained
by the Loan Parties, including all Collateral Deposit Accounts, as of the Closing Date. Each Loan Party shall be the sole account
holder of each Deposit Account (other than Excluded Deposit Accounts) and shall not allow any other Person (other than the Administrative
Agent and the Term Loan Agent (which shall have a first priority interest in only those Deposit Accounts that are exclusively
maintained for and contain only the identifiable proceeds of Term Loan Priority Collateral)) to have control over a Deposit Account
(other than Excluded Deposit Accounts) or any deposits therein. The Borrower (A) shall promptly notify the Administrative
Agent of (x) any opening or closing of a Deposit Account (other than any Excluded Deposit Account) and (y) any Excluded
Deposit Account ceasing to constitute an Excluded Deposit Account, and (B) shall not open any Deposit Accounts (other than
any Excluded Deposit Accounts) at a Bank not reasonably acceptable to the Administrative Agent.

 

(ii)            On
or before the Closing Date, (i) each Loan Party shall execute and deliver to the Administrative Agent Control Agreements
for each Deposit Account maintained by such Loan Party (other than Excluded Deposit Accounts), (ii) the Borrower shall establish
the General Unsecured Cash Fund Deposit Account, and (iii) the Borrower shall continue to maintain the Dominion Account.
After the Closing Date, each Loan Party will comply with the terms of this Section 5.12(d).

 

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(iii)           Before
opening or replacing any Collateral Deposit Account or other Deposit Account (other than Excluded Deposit Accounts), each Loan
Party shall cause each bank or financial institution in which it seeks to open a Collateral Deposit Account or other such Deposit
Account, to enter into a Control Agreement with the Administrative Agent in order to give the Administrative Agent Control of
such Collateral Deposit Account or other Deposit Account and provide for a daily sweep into the WF Concentration Account (other
than (x) amounts necessary to cover required account fees to be debited from such Deposit Account by the applicable depository
bank with respect to such Deposit Account and, thereafter, and (y) an additional amount up to $5,000 that can be kept in
each account for overdraft protection). In the case of Deposit Accounts maintained with Lenders, the terms of such agreements
shall be subject to the provisions of the Credit Agreement regarding setoffs.

 

(iv)           Each
Loan Party shall cause each bank or other depository institution at which any Deposit Account (excluding for the avoidance of
doubt, the Operating Account) is maintained for the collection of Accounts, sales revenue, payments by any Account Debtor and
other cash receipts (each, a “Collateral Deposit Account”), which Collateral Deposit Accounts as of the Closing
Date are identified as such on Schedule 5.12, to transfer to the WF Concentration Account by standing wire (or alternative
funds transfer method), on a daily basis, the full amount of the collected and available balance in each such Deposit Account
maintained by any Loan Party at the beginning of each Business Day (other than (x) amounts necessary to cover required account
fees to be debited from such Deposit Account by the applicable depository bank with respect to such Deposit Account and, thereafter,
and (y) an additional amount up to $5,000 that can be kept in each account for overdraft protection). Each Loan Party irrevocably
appoints the Administrative Agent as such Loan Party’s attorney-in-fact to collect such balances during a Cash Dominion
Trigger Period to the extent any such delivery is not so made. Other than during a Cash Dominion Trigger Period, collections which
are received into the WF Concentration Account shall be deposited into the Operating Account. During a Cash Dominion Trigger Period,
collections which are received into the WF Concentration Account shall be transferred by standing wire (or alternative funds transfer
method) on a daily basis to the Dominion Account and applied in accordance with Section 2.10.

 

(v)            Each
Loan Party will provide (or with respect to securities accounts and commodities accounts existing on the Closing Date, will have
provided) to the Administrative Agent a Control Agreement for each securities account and commodities account of such Loan Party
promptly after the establishment or acquisition of any such account and prior to transferring or depositing any funds or other
assets therein, duly executed on behalf of each financial institution or securities intermediary holding a securities account
or commodities account, as applicable, of such Loan Party.

 

(vi)           For
the avoidance of doubt, nothing set forth in the Loan Documents shall prohibit (A) the establishment of the General Unsecured
Cash Fund and General Unsecured Cash Fund Deposit Account, (B) repayment of amounts for the benefit of the holders of Allowed
General Unsecured Claims from the General Unsecured Cash Fund in accordance with the Plan of Reorganization or (C) the deposit
of proceeds received by any Loan Party from the Sale Leaseback and Rights Offerings into the General Unsecured Cash Fund Deposit
Account in accordance with the Plan of Reorganization.

 

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(vii)           Upon
the Loan Parties becoming entitled to possession of any remaining funds in the General Unsecured Cash Fund Deposit Account in
accordance with Section VI.F.3 of the Plan of Reorganization, the Loan Parties shall promptly transfer all such remaining
funds directly to the WF Concentration Account.

 

Section 5.13          Use
of Proceeds. The Borrower will use Letters of Credit and Revolver Loans (a) to pay fees, interest, payments (including
funding a portion of the General Unsecured Cash Fund in accordance with the terms of the Plan of Reorganization) and expenses
associated with the consummation of the Plan of Reorganization, (b) to refinance the Existing Debt, (c) for working
capital needs and (d) other general corporate purposes of the Borrower and its Subsidiaries.

 

ARTICLE VI

 

Negative Covenants

 

Each of Holdings (solely
as to Section 6.08(a)) and the other Loan Parties covenants and agrees with the Administrative Agent, each Lender
and each Issuing Bank that until the Secured Obligations are Paid in Full, unless the Required Lenders shall otherwise consent
in writing, the Loan Parties will not and will not permit any of their Subsidiaries to (and Holdings as to Section 6.08(a),
will not):

 

Section 6.01          Indebtedness.
Incur, create, assume or permit to exist any Indebtedness, except:

 

(a)           Indebtedness
of any Loan Party under the Loan Documents;

 

(b)           Indebtedness
pursuant to Swap Agreements not incurred for speculative purposes;

 

(c)           Indebtedness
owed to (including obligations in respect of letters of credit or bank guarantees or similar instruments for the benefit of) any
Person providing workers’ compensation, securing unemployment insurance and other social security laws or regulation, health,
disability or other employee benefits or property, casualty or liability insurance or self-insurance or other similar obligations
to the Borrower or any Subsidiary;

 

(d)           Indebtedness
of the Borrower owed to any Subsidiary and of any Subsidiary owed to the Borrower or any other Subsidiary, provided that
(i) Indebtedness of any Subsidiary that is not a Subsidiary Guarantor owed to the Loan Parties is permitted under Section 6.04(b) and
(ii) Indebtedness of the Borrower and of any other Loan Party owed to any Subsidiary that is not a Subsidiary Guarantor (“Subordinated
Intercompany Debt”) shall be subordinated to the Obligations on terms reasonably satisfactory to the Administrative
Agent;

 

(e)           Indebtedness
in respect of bids, trade contracts (other than for debt for borrowed money), leases (other than Capital Lease Obligations), statutory
obligations, surety, stay, customs and appeal bonds, performance, performance and completion and return of money bonds, government
contracts, financial assurances and completion guarantees and similar obligations, in each case provided in the ordinary course
of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of business
(including Indebtedness in respect of letters of credit, bank guarantees or similar instruments in lieu of such items to support
the issuance thereof);

 

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(f)            Cash
Management Obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in
each case, incurred in the ordinary course of business in connection with cash management and deposit accounts;

 

(g)            (x) Indebtedness
assumed or acquired in connection with Permitted Business Acquisitions, which Indebtedness may be secured only by the assets acquired
in connection with such Permitted Business Acquisitions or unsecured, and provided that (A) such Indebtedness exists
at the time of such Permitted Business Acquisition and is not incurred in contemplation of such event and (B) after giving
effect to the assumption or acquisition of such Indebtedness, the Payment Conditions are satisfied and (y) any Permitted
Refinancing Indebtedness incurred to Refinance such Indebtedness; provided that in the case of clauses (x) and
(y) if such Indebtedness is incurred by the Borrower or any Loan Party and secured with ABL Priority Collateral, such
Indebtedness shall be secured only by a Junior Lien with respect to the ABL Priority Collateral pursuant to an intercreditor agreement
satisfactory to the Administrative Agent and the Required Lenders;

 

(h)            Capital
Lease Obligations, mortgage financings and purchase money Indebtedness (including any industrial revenue bond, industrial development
bond and similar financings) incurred by the Borrower or any Subsidiary prior to or within two hundred seventy (270) days
after the acquisition, lease, repair or improvement of the respective asset in order to finance such acquisition, lease, repair
or improvement, and any Permitted Refinancing Indebtedness in respect thereof, in an aggregate outstanding principal amount that
at the time of, and after giving effect to, the incurrence thereof (together with Indebtedness outstanding pursuant to paragraph (i) of
this Section 6.01) would not exceed $15.0 million;

 

(i)            Capital
Lease Obligations incurred by the Borrower or any Subsidiary in respect of any Sale and Lease-Back Transaction that is permitted
under Section 6.03 and any Permitted Refinancing Indebtedness in respect thereof in an aggregate outstanding principal
amount that at the time of, and after giving effect to the incurrence of (together with Indebtedness outstanding pursuant to paragraph (h) of
this Section 6.01) would not exceed $15.0 million;

 

(j)            Indebtedness
of the Loan Parties constituting Term Loan Obligations, in an aggregate outstanding principal not to exceed the sum of (i) $25.0
million plus (ii) the amount of capitalized (i.e., paid in kind) interest accruing on the Term Loan Obligations in
accordance with the Term Loan Documents;

 

(k)            Guarantees
(i) by the Loan Parties of the Indebtedness described in Section 6.01(j) and Section 6.01(o),
(ii) by the Borrower or any Loan Party of any Indebtedness of any other Loan Party permitted to be incurred under this Agreement,
(iii) by the Borrower or any Loan Party of Indebtedness otherwise permitted hereunder of any Subsidiary that is not a Subsidiary
Guarantor, (iv) by any Subsidiary that is not a Loan Party of Indebtedness of Holdings and its Subsidiaries to the extent,
in the case of clauses (iii) and (iv), such Guarantees are permitted by Section 6.04(b) or
(j)(ii); provided that Guarantees by the Borrower or any Loan Party under this Section 6.01(k) of
any other Indebtedness of a Person that is subordinated to the Obligations shall be expressly subordinated to the Obligations
on terms not materially less favorable to the Lenders as those governing the subordination of such other Indebtedness to the Obligations;
provided further that no Guarantee by Holdings or any of its Subsidiaries of any Subordinated Indebtedness or the Indebtedness
described in Section 6.01(j) shall be permitted unless Holdings or the applicable Subsidiaries, as the case may
be, shall have also provided a Guarantee of the Obligations under the Loan Documents on substantially the terms set forth in the
applicable Guarantee of such Indebtedness or on terms acceptable to the Administrative Agent;

 

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(l)            Indebtedness
arising from agreements of the Borrower or any Subsidiary providing for indemnification, adjustment of purchase or acquisition
price or similar obligations (including without limitation earn-out obligations), in each case, incurred or assumed in connection
with the acquisition or Disposition of any business or assets (including Equity Interests of Subsidiaries) of the Borrower or
any Subsidiary permitted by Section 6.04 or Section 6.05, other than Guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business or assets for the purpose of financing such acquisition; provided
that the aggregate maximum liability of the Borrower and its Subsidiaries in respect of any such Indebtedness does not exceed
$10.0 million in the aggregate at any one time;

 

(m)            [Reserved];

 

(n)            Indebtedness
consisting of (i) the financing of insurance premiums or (ii) take-or-pay obligations contained in supply arrangements,
in each case, in the ordinary course of business;

 

(o)            (i) additional
Indebtedness of the Borrower or any Subsidiary and (ii) any Permitted Refinancing Indebtedness in respect thereof; provided
that (x) after giving effect to such incurrence or issuance, no Event of Default shall have occurred and be continuing,
(y) such Indebtedness shall be Subordinated Indebtedness that matures no earlier than the date that is, and has a Weighted
Average Life to Maturity no shorter than, at the time of such incurrence or issuance, ninety-one (91) days after the Revolver
Termination Date and (z) after giving effect to any such incurrence or issuance of such Indebtedness, the Payment Conditions
are satisfied;

 

(p)            [Reserved];

 

(q)            Indebtedness
existing on the Closing Date and set forth on Schedule 6.01 and any Permitted Refinancing Indebtedness incurred to
Refinance such Indebtedness;

 

(r)            Indebtedness
not in respect of borrowed money supported by a Letter of Credit, in a principal amount not in excess of the Stated Amount of
such Letter of Credit;

 

(s)            Indebtedness
incurred by the Borrower and its Subsidiaries representing deferred compensation to directors, officers, employees, members of
management and consultants of Holdings, any Parent Entity, the Borrower or any Subsidiary in the ordinary course of business in
an aggregate amount at any one time outstanding not to exceed $10.0 million;

 

(t)            Indebtedness
consisting of promissory notes issued by the Borrower and its Subsidiaries to current or former directors, officers, employees,
members of management or consultants of, Holdings, any Parent Entity, the Borrower or any Subsidiary (or their respective estate,
heirs, family members, spouse, former spouse, domestic partner or former domestic partner) to finance the purchase or redemption
of Equity Interests of any Parent Entity permitted by Section 6.06(b) in an aggregate amount at any one time
outstanding not to exceed $7.5 million;

 

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(u)           Indebtedness
in respect of letters of credit, bankers’ acceptances supporting trade payables, warehouse receipts or similar facilities
entered into in the ordinary course of business;

 

(v)           Indebtedness
arising out of the creation of any Lien (other than Liens securing debt for borrowed money) permitted under Section 6.02;

 

(w)          Indebtedness
incurred in the ordinary course of business in respect of obligations of the Borrower or any Subsidiary to pay the deferred purchase
price of goods or services or progress payments in connection with such goods and services;

 

(x)            unfunded
pension fund and other employee benefit plan obligations and liabilities incurred in the ordinary course of business to the extent
that they are permitted to remain unfunded under Applicable Law;

 

(y)           other
Indebtedness of any Borrower or any Subsidiary that is unsecured or secured by a Lien permitted under Section 6.02(y),
in an aggregate outstanding principal amount not to exceed $5.0 million at any one time outstanding and any Permitted Refinancing
Indebtedness incurred to Refinance such Indebtedness; and

 

(z)           all
premium (if any), interest (including post-petition interest), fees, expenses, charges and additional or contingent interest on
Indebtedness described in paragraphs (a) through (y) above.

 

Section 6.02          Liens.
Create, incur, assume or permit to exist any Lien on any property or assets (including Equity Interests, evidences of Indebtedness
or other securities of any Person) at the time owned by it or on any income or revenues or rights in respect of any thereof, except:

 

(a)           Liens
on property or assets of the Borrower and the Subsidiaries existing on the Closing Date and set forth on Schedule 6.02
and any refinancing, modification, replacement, renewal or extension thereof; provided, that the Lien does not extend
to any additional property other than after-acquired property that is affixed to or incorporated in the property covered by such
Lien and the proceeds and products thereof;

 

(b)           any
Lien (i) created under the Loan Documents, (ii) on cash or deposits granted in favor of any Issuing Bank hereunder to
cash collateralize any Defaulting Lender’s participation in Letters of Credit issued under this Agreement, as applicable
and (iii) securing Term Loan Obligations permitted by Section 6.01(j) so long as such Liens are at all times
subject to the Intercreditor Agreement;

 

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(c)           any
Lien securing Indebtedness or Permitted Refinancing Indebtedness permitted by Section 6.01(g), provided that
such Lien (A) in the case of Liens securing Capital Lease Obligations and purchase money Indebtedness, applies solely to
the assets securing such Indebtedness immediately prior to the consummation of the related Permitted Business Acquisition and
after acquired property that is affixed to or incorporated in the assets securing such Indebtedness, to the extent required by
the documentation governing such Indebtedness (without giving effect to any amendment thereof effected in contemplation of such
acquisition or assumption), and the proceeds and products thereof (provided that individual financings provided by one (1) Person
(or its Affiliates) otherwise permitted to be secured by Liens under this clause (c) may be cross-collateralized to
other such financings provided by such Person (or its Affiliates)), (B) in the case of Liens securing Indebtedness other
than Capital Lease Obligations or purchase money Indebtedness, such Liens do not extend to the property of any Person other than
the Person acquired in such acquisition and the subsidiaries of such Person (and the Equity Interests in such Person), (C) in
the case of clause (A) and clause (B), such Lien is not created in contemplation of or in connection
with such acquisition or assumption, (D) in the case of a Lien securing Permitted Refinancing Indebtedness, any such Lien
is permitted, subject to compliance with clause (e) of the definition of the term “Permitted Refinancing
Indebtedness” and (E) in the case of any Indebtedness incurred by the Borrower or any Loan Party and secured with ABL
Priority Collateral, such Indebtedness shall be secured only by a Junior Lien on such ABL Priority Collateral pursuant to an intercreditor
arrangement satisfactory to the Administrative Agent;

 

(d)           Liens
for Taxes, assessments or other governmental charges or levies which are not overdue by more than thirty (30) days or, if
more than thirty (30) days overdue, which are being contested in accordance with Section 5.03;

 

(e)           landlord’s,
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction or other like Liens
arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or,
if more than thirty (30) days overdue, which are being contested in accordance with Section 5.03;

 

(f)            (i) pledges
and deposits made (including to support obligations in respect of letters of credit, bank guarantees or similar instruments to
secure) in the ordinary course of business in compliance with the Federal Employers Liability Act or any other workers’
compensation, unemployment insurance and other social security laws or regulations and deposits securing premiums or liability
to insurance carriers under insurance or self-insurance arrangements in respect of such obligations or otherwise as permitted
in Section 6.01(c) and (ii) pledges and deposits securing liability for reimbursement or indemnification
obligations of (including to support obligations in respect of letters of credit, bank guarantees or similar instruments for the
benefit of) insurance carriers in respect of property, casualty or liability insurance to the Borrower or any Subsidiary provided
by such insurance carriers;

 

(g)            (i) deposits
to secure the performance of bids, trade contracts (other than for debt for borrowed money), leases (other than Capital Lease
Obligations), statutory obligations, surety, stay, customs and appeal bonds, performance, performance and completion and return
of money bonds, government contracts, financial assurances and completion and similar obligations, including those incurred to
secure health, safety and environmental obligations in the ordinary course of business and (ii) obligations in respect of
letters of credit or bank guarantees that have been posted to support payment of the items set forth in clause (i) of
this Section 6.02(g);

 

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(h)           zoning
restrictions, easements, trackage rights, leases (other than Capital Lease Obligations), licenses, special assessments, rights-of-way,
restrictions on use of real property and other similar encumbrances incurred in the ordinary course of business that, in the aggregate,
do not interfere in any material respect with the ordinary conduct of the business of the Borrower or any Subsidiary;

 

(i)            Liens
securing Capital Lease Obligations, mortgage financings, and purchase money Indebtedness or improvements thereto hereafter acquired,
leased, repaired or improved by the Borrower or any Subsidiary (including the interests of vendors and lessors under conditional
sale and title retention agreements); provided that (i) such security interests secure only Indebtedness permitted
by Section 6.01(h) (including any Permitted Refinancing Indebtedness in respect thereof), (ii) such security
interests are created, and the Indebtedness secured thereby is incurred, within two hundred seventy (270) days after such
acquisition, lease, completion of construction or repair or improvement (except in the case of any Permitted Refinancing Indebtedness),
(iii) the Indebtedness secured thereby does not exceed the cost of such equipment or other property or improvements at the
time of such acquisition or construction, including transaction costs (including any fees, costs or expenses or prepaid interest
or similar items) incurred by the Borrower or any Subsidiary in connection with such acquisition or construction or material repair
or improvement or financing thereof and (iv) such security interests do not apply to any other property or assets of the
Borrower or any Subsidiary (other than to the proceeds and products of and the accessions to such equipment or other property
or improvements but not to other parts of the property to which any such improvements are made; provided that individual financings
provided by one (1) Person (or its Affiliates) otherwise permitted to be secured by Liens under this clause (i) may
be cross-collateralized to other such financings provided by such Person (or its Affiliates));

 

(j)            Liens
arising out of (i) Sale and Lease-Back Transactions permitted under Section 6.03 and (ii) any Indebtedness
incurred in connection therewith permitted by Section 6.01(i) (and any Permitted Refinancing Indebtedness in
respect thereof), so long as such Liens attach only to the property sold and being leased in such transaction and any accessions
thereto or proceeds or products thereof and related property;

 

(k)           Liens
securing judgments that do not constitute an Event of Default under Section 7.01(j);

 

(l)            Liens
disclosed by the title insurance policies delivered in connection with the Mortgages or pursuant to Section 5.09 and
any replacement, extension or renewal of any such Lien; provided that such replacement, extension or renewal Lien shall
not cover any property other than the property that was subject to such Lien prior to such replacement, extension or renewal;
provided, further, that the Indebtedness and other obligations secured by such replacement, extension or renewal
Lien are permitted by this Agreement;

 

(m)          any
interest or title of a lessor, sublessor, licensor or sublicensee under any leases, subleases, licenses or sublicenses entered
into by the Borrower or any Subsidiary in the ordinary course of business;

 

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(n)           Liens
that are contractual rights of set-off (i) relating to the establishment of depository relations with banks not given in
connection with the issuance of Indebtedness, (ii) relating to pooled deposit or sweep accounts of the Borrower or any Subsidiary
to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrower or any
Subsidiary, (iii) relating to purchase orders and other agreements entered into with customers of the Borrower or any Subsidiary
in the ordinary course of business, (iv) attaching to commodity trading or other brokerage accounts incurred in the ordinary
course of business and (v) encumbering reasonable customary initial deposits and margin deposits;

 

(o)           Liens
arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar
rights;

 

(p)           Liens
securing obligations in respect letters of credit permitted under Section 6.01(c), (e), (r) and
(u);

 

(q)           (i) leases,
subleases, licenses or sublicenses of property in the ordinary course of business or (ii) rights reserved to or vested in
any Person by the terms of any lease, license, franchise, grant or permit held by the Borrower or any Subsidiary or by a statutory
provision to terminate any such lease, license, franchise, grant or permit or to require periodic payments as a condition to the
continuance thereof;

 

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

 

(s)           Liens
(i) solely on any cash earnest money deposits or Permitted Investments made by the Borrower or any of the Subsidiaries in
connection with any letter of intent or purchase agreement with respect to any Permitted Business Acquisition or other Investment
permitted hereunder and (ii) consisting of an agreement to dispose of any property in a transaction permitted under Section 6.05;

 

(t)            Liens
arising from precautionary UCC financing statements (or similar filings under other Applicable Law) regarding operating leases
or consignment or bailee arrangements;

 

(u)           Liens
on securities that are the subject of repurchase agreements constituting Permitted Investments under clause (c) of
the definition thereof arising out of such repurchase transaction;

 

(v)           (i) Liens
on Equity Interests in Joint Ventures securing obligations of such Joint Venture and (ii) customary rights of first refusal
and tag, drag and similar rights in joint venture agreements entered into in the ordinary course of business;

 

(w)          Liens
in favor of the Borrower or the Subsidiaries that are Loan Parties securing intercompany Indebtedness permitted under Section 6.04;

 

(x)           Liens
(i) arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into
by the Borrower or the Subsidiaries in the ordinary course of business and (ii) arising by operation of law under Article 2
of the Uniform Commercial Code;

 

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(y)           Liens
with respect to property or assets of any Borrower or any Subsidiaries securing Indebtedness permitted under Section 6.01(y);
provided that (i) the aggregate principal amount of the Indebtedness or other obligations secured by such Liens does
not exceed $5.0 million at any time outstanding and (ii) any such Liens on Borrowing Base Collateral shall be Junior Liens;

 

(z)           Liens
on insurance policies and the proceeds thereof securing the financing of Indebtedness permitted pursuant to Section 6.01(n)(i);

 

(aa)         ground
leases in the ordinary course in respect of real property on which facilities owned or leased by the Borrower or any of its Subsidiaries
are located; and

 

(bb)     (i) Liens
in favor of the Administrative Agent for the benefit of the Secured Parties securing obligations under Swap Agreements permitted
by Section 6.01,(ii) Liens in favor of the Administrative Agent for the benefit of the Secured Parties securing
Cash Management Obligations permitted by Section 6.01 and (iii) Liens in favor of the Administrative Agent for
the benefit of the Secured Parties securing Secured Bank Product Obligations permitted by Section 6.01.

 

Section 6.03          Sale
and Lease-Back Transactions. Enter into any arrangement, directly or indirectly, with any Person whereby it shall sell
or transfer any fixed or capital assets, used or useful in its business, whether now owned or hereafter acquired, and substantially
contemporaneously rent or lease from the transferee such fixed or capital assets that it intends to use for substantially the
same purpose or purposes as the property being sold or transferred (a “Sale and Lease-Back Transaction”), except
for (a) the Sale Leaseback and (b) any such sale of any fixed or capital assets acquired by the Borrower or any Subsidiary
after the Closing Date that is permitted under Section 6.05(g) and is consummated within ninety (90) days
after the Borrower or such Subsidiary acquires or completes the construction of such fixed or capital asset.

 

Section 6.04          Investments,
Loans and Advances. Purchase, hold or acquire any Equity Interests, evidences of Indebtedness or other securities of,
make or permit to exist any loans or advances to or Guarantees of the obligations of, another Person, or make any Acquisition
(each, an “Investment”), except:

 

(a)           Investments
among the Borrower and the Subsidiary Guarantors;

 

(b)           Investments
by the Borrower and the Subsidiary Guarantors in Subsidiaries that are not Subsidiary Guarantors; provided that (i) no
Event of Default shall have occurred and be continuing at the time any such Investment is made and (ii) the sum of all such
Investments (valued at the time of the making thereof and without giving effect to any write-downs or write-offs thereof, but
net in the case of intercompany loans, and in any event, after giving effect to any returns, profits, distributions, and similar
amounts, repayment of loans and the release of guarantees) made on or after the Closing Date shall not exceed an aggregate net
amount equal to $5.0 million outstanding at any time; and provided further that intercompany current liabilities incurred
in the ordinary course of business in connection with the cash management operations of the Borrower and its Subsidiaries shall
not be included in calculating the limitation in this paragraph at any time;

 

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(c)           Permitted
Investments and investments that were Permitted Investments when made;

 

(d)           Investments
arising out of the receipt by the Borrower or any Subsidiary of promissory notes and other non-cash consideration for Dispositions
permitted under Section 6.05 (excluding clauses (a), (b), (d), (e), (f)(i),
(j), (k), (p), (r), (u), and (v) of Section 6.05);

 

(e)           (i) loans
and advances to directors, officers, employees, members of management or consultants of Holdings (or any Parent Entity), the Borrower
or any Subsidiary in the ordinary course of business not to exceed $1.0 million in the aggregate at any time outstanding
(calculated without regard to write-downs or write-offs thereof) and (ii) advances of payroll payments and expenses to directors,
officers, employees, members of management or consultants in the ordinary course of business;

 

(f)            accounts
receivable, notes receivable, security deposits and prepayments arising and trade credit granted in the ordinary course of business
and any Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors and other
credits to suppliers made in the ordinary course of business;

 

(g)           Investments
under Swap Agreements permitted pursuant to Section 6.01;

 

(h)           Investments
existing on, or contractually committed as of, the Closing Date and set forth on Schedule 6.04 and any modification,
replacement, renewal or extension thereof so long as any such modification, renewal or extension thereof does not increase the
amount of such Investment except by terms thereof or as otherwise permitted by this Section 6.04;

 

(i)            Investments
resulting from pledges and deposits permitted by Section 6.02(b)(ii), (f) and (g);

 

(j)            Investments
(i) constituting Permitted Business Acquisitions and (ii) by any Subsidiary that is not a Subsidiary Guarantor in
any other Subsidiary that is not a Subsidiary Guarantor;

 

(k)           Guarantees
(i) permitted by Section 6.01(k) and (ii) of leases (other than Capital Lease Obligations) or of other
obligations not constituting Indebtedness, in each case in the ordinary course of business;

 

(l)            Investments
received in connection with the bankruptcy or reorganization of any Person, or settlement of obligations of, or other disputes
with or judgments against, or foreclosure or deed in lieu of foreclosure with respect to any Lien held as security for an obligation,
in each case in the ordinary course of business;

 

(m)          [reserved;]

 

(n)           [reserved;]

 

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(o)           Investments
in Holdings in amounts and for purposes for which Restricted Payments to Holdings would have been permitted under Section 6.06,
in lieu of such Restricted Payments;

 

(p)           to
the extent constituting Investments, (i) Sale and Lease-Back Transactions, (ii) Restricted Payments, and (iii) prepayments
and repurchases of Indebtedness expressly permitted under Section 6.03 and/or 6.06;

 

(q)           so
long as no Default or Event of Default shall have occurred and be continuing, Investments made in cash by the Borrower or
any Subsidiary in an outstanding aggregate amount (valued at the time of the making thereof, and without giving effect to any
write-downs or write-offs thereof) not to exceed $7.5 million, (plus any returns, profits, distributions and similar
amounts, and the repayments of loans in respect of Investments theretofore made by it pursuant to this paragraph (q));

 

(r)            other
Investments (other than Guarantees) made in cash by the Borrower or any Subsidiary so long as the Payment Conditions are satisfied;

 

(s)           Investments
in the ordinary course of business consisting of (i) endorsements for collection or deposit or (ii) customary trade
arrangements with customers; and

 

(t)            Investments
to the extent the consideration paid therefor consists solely of Equity Interests of any Parent Entity not resulting in a Change
in Control.

 

Notwithstanding anything
to the contrary in this Agreement, in no event shall any Loan Party make any Investment consisting of, or otherwise contribute
or transfer, any Material Intellectual Property to any Person that is not a Loan Party other than to the extent constituting non-exclusive
outbound licenses of patents, copyrights, trademarks and other intellectual property rights granted by a Loan Party in the ordinary
course of business and not interfering in any respect with the ordinary conduct of or materially detracting from the value of
the business of the Borrower and its Subsidiaries.

 

Section 6.05     Mergers,
Consolidations and Dispositions. Merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or Dispose of (in one (1) transaction or in a series of related transactions) all or any part
of its assets (whether now owned or hereafter acquired), or Dispose of any Equity Interests of any Subsidiary of the Borrower
(including pursuant to any Division), except that this Section shall not prohibit:

 

(a)           (i) the
Disposition of inventory and equipment in the ordinary course of business by the Borrower or any Subsidiary, (ii) the Disposition
of surplus, obsolete, used or worn out property (other than Inventory), whether now owned or hereafter acquired, in the ordinary
course of business by the Borrower or any Subsidiary, (iii) the leasing or subleasing of real property in the ordinary course
of business by the Borrower or any Subsidiary or (iv) the Disposition of Permitted Investments in the ordinary course of
business;

 

(b)           if
at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing, (i) the
merger of any Subsidiary of Holdings (which shall either be (A) newly formed expressly for the purpose of such transaction
and which owns no assets, (B) Intermediate Holdings or (C) a Subsidiary of the Borrower) into the Borrower in a transaction
in which the Borrower is the surviving or resulting entity or the surviving or resulting Person expressly assumes the obligations
of the Borrower in a manner reasonably satisfactory to the Administrative Agent (for the avoidance of doubt, the Borrower shall
not be permitted to consummate a Division), (ii) the merger or consolidation of any Subsidiary with or into any other Subsidiary;
provided that in any such merger or consolidation involving any Subsidiary Guarantor, a Subsidiary Guarantor shall be the
surviving or resulting Person, (iii) the liquidation or dissolution of any Subsidiary (other than the Borrower) if the Borrower
determines in good faith that such liquidation, dissolution or change in form is in the best interests of the Borrower and the
assets of such liquidating or dissolving Subsidiary are transferred to the Borrower or a Subsidiary Guarantor, or (iv) the
merger of Parent and Intermediate Holdings (or the dissolution or consolidation of Intermediate Holdings);

 

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(c)           Dispositions
among the Borrower and the Subsidiary Guarantors (upon voluntary liquidation or otherwise);

 

(d)           [reserved];

 

(e)           to
the extent constituting a Disposition, Liens permitted by Section 6.02, Investments permitted by Section 6.04
(other than Section 6.04(p)), and Restricted Payments permitted by Section 6.06 (other than Section 6.06(e));

 

(f)            Dispositions
of receivables in the ordinary course of business (i) not as part of an accounts receivables financing transaction or (ii) in
connection with the collection, settlement or compromise thereof in a bankruptcy or similar proceeding;

 

(g)           Dispositions
by the Borrower or any Subsidiary of assets not otherwise permitted by this Section 6.05; provided that the
consideration for any Disposition shall be at least 75% cash consideration (provided that for purposes of the 75% cash
consideration requirement (w) the amount of any Indebtedness or other liabilities of the Borrower or any Subsidiary (as shown
on such Person’s most recent balance sheet or in the notes thereto) that are assumed by the transferee of any such assets,
(x) the amount of any trade-in value applied to the purchase price of any replacement assets acquired in connection and substantially
contemporaneously with such Disposition, and (y) any securities received by such Subsidiary from such transferee that are
converted by such Subsidiary into cash or cash equivalents (to the extent of the cash or cash equivalents received) substantially
contemporaneously following the closing of the applicable Disposition, in each case, shall be deemed to be cash); provided
further that immediately prior to and after giving effect to such Disposition, no Event of Default shall have occurred or
be continuing; provided further that prior to or concurrently with any such Disposition involving Borrowing Base Collateral,
an updated Borrowing Base Certificate (based on the Borrowing Base Certificate most recently provided or required to be provided
as of that date by the Borrower) shall have been provided to the Administrative Agent setting forth the adjusted figures thereon
on a Pro Forma Basis for such Disposition and no Overadvance shall exist after giving pro forma effect thereto;

 

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(h)           Dispositions
by the Borrower or any Subsidiary of assets that were acquired in connection with an acquisition permitted hereunder (including,
without limitation, Permitted Business Acquisitions); provided that any such sale, transfer, lease or other disposition
shall be made or contractually committed to be made within two hundred seventy (270) days of the date such assets were acquired
by the Borrower or such Subsidiary; and provided further that, the Payment Conditions are satisfied at the time of such
Disposition; and provided further that prior to or concurrently with any such Disposition involving Borrowing Base Collateral,
an updated Borrowing Base Certificate (based on the Borrowing Base Certificate most recently provided or required to be provided
as of that date by the Borrower) shall have been provided to the Administrative Agent setting forth the adjusted figures thereon
on a Pro Forma Basis for such Disposition and no Overadvance shall exist after giving pro forma effect thereto;

 

(i)            any
merger or consolidation in connection with an Investment permitted under Section 6.04; provided that (i) if
the continuing or surviving Person is a Loan Party or a Subsidiary of a Loan Party, such Loan Party or Subsidiary shall have complied
with its obligations under Section 5.09 (if any), and (ii) if the Borrower is a party thereto, the Borrower shall
be the continuing or surviving Person or the continuing or surviving Person shall assume the obligations of the Borrower in a
manner reasonably acceptable to the Administrative Agent;

 

(j)            licensing
and cross-licensing arrangements involving any technology or other intellectual property of the Borrower or any Subsidiary in
the ordinary course of business and not interfering in any material respect with the ordinary conduct of or materially detracting
from the value of the business of the Borrower and its Subsidiaries;

 

(k)           Dispositions
of Inventory or other property of the Borrower and the Subsidiaries determined by the management of the Borrower to be no longer
useful or necessary in the operation of the business of the Borrower or any of its Subsidiaries; provided that, if any
such Inventory was included in the calculation of the Borrowing Base in the most recently delivered Borrowing Base Certificate,
then prior to or concurrently with any such Disposition involving Inventory, an updated Borrowing Base Certificate (based on the
Borrowing Base Certificate most recently provided or required to be provided as of that date by the Borrower) shall have been
provided to the Administrative Agent setting forth the adjusted figures thereon on a Pro Forma Basis for such Disposition
and no Overadvance shall exist after giving pro forma effect thereto;

 

(l)            [reserved];

 

(m)           the
issuance of Qualified Capital Stock by the Borrower;

 

(n)           sales
of Equity Interests of any Subsidiary of the Borrower; provided that, in the case of the sale of the Equity Interests of
a Subsidiary Guarantor, the purchaser shall be the Borrower or another Subsidiary Guarantor or such transaction shall fit within
another clause of this Section 6.05 or constitute an Investment permitted by Section 6.04 (other than
Section 6.04(p));

 

(o)           Dispositions
of property (other than Borrowing Base Collateral) to the extent that (i) such property is exchanged for credit against the
purchase price of similar replacement property or (ii) the proceeds of such sale, transfer, lease or other disposition are
promptly applied to the purchase price of such replacement property;

 

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(p)           leases,
subleases, licenses or sublicenses of property (other than intellectual property) in the ordinary course of business and which
do not materially interfere with the business of the Borrower and the Subsidiaries;

 

(q)           Dispositions
of property subject to casualty or condemnation proceeding (including in lieu thereof) upon receipt of the net proceeds therefor;

 

(r)            Dispositions
of property in the ordinary course of business consisting of the abandonment of intellectual property rights which, in the reasonable
good faith determination of the Borrower, are not material to the conduct of the business of the Borrower and the Subsidiaries;

 

(s)           Dispositions
of Investments in Joint Ventures to the extent required by, or made pursuant to, buy/sell arrangements between the joint venture
parties set forth in, joint venture arrangements and similar binding arrangements;

 

(t)            [reserved];

 

(u)           terminations
of Swap Agreements;

 

(v)           the
expiration of any option agreement in respect of real or personal property;

 

(w)          [reserved];

 

(x)            any
surrender or waiver of contractual rights or the settlement, release or surrender of contractual rights or other litigation claims
in the ordinary course of business;

 

(y)           [reserved];

 

(z)            any
change in form of entity of any Subsidiary if the Borrower determines in good faith that such change in form is in the best interests
of the Borrower; provided that the Borrower and such Subsidiary shall substantially concurrently with such change in form
take all actions necessary, if any, to preserve the perfection of the Administrative Agent’s Lien on the Equity Interests
in and Property of such Subsidiary (other than any Excluded Assets);

 

(aa)         as
long as (i) no Event of Default then exists or would arise therefrom and (ii) Availability on the date of the proposed
transaction (calculated on a Pro Forma Basis) is equal to or greater than 10.0% of the Line Cap, bulk sales or other dispositions
of the Loan Parties’ Inventory outside of the ordinary course of business in connection with store closings that are conducted
on an arm’s-length basis and not to an Affiliate; provided that such store closures and related Inventory dispositions
shall not exceed, in any fiscal year 20.0% of the number of the Loan Parties’ stores as of the beginning of such fiscal
year (net of store relocations wherein a binding lease has been entered into for a new store opening prior to the related store
closure date); provided, further, that all sales of Inventory in connection with store closings shall be paid to
a Deposit Account that is subject to a Control Agreement; provided further that prior to or concurrently with any such
Disposition of Inventory under this clause (aa), an updated Borrowing Base Certificate (based on the Borrowing Base Certificate
most recently provided or required to be provided as of that date by the Borrower) shall have been provided to the Administrative
Agent setting forth the adjusted figures thereon on a Pro Forma Basis for such Disposition and no Overadvance shall exist
after giving pro forma effect thereto; and

 

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(bb)     the
Sale Leaseback in accordance with the Plan of Reorganization.

 

Notwithstanding anything
to the contrary contained above in this Section 6.05, (i) no Disposition or series of related Dispositions in
excess of $1.0 million shall be permitted by this Section 6.05 (other than Dispositions pursuant to clause (a)(ii),
(b), (c), (i), (k), (r), (s), (u), or (v)) unless such Disposition is
for fair market value (as reasonably determined by the Borrower), (ii) no Disposition of Borrowing Base Collateral shall
be permitted by paragraph (aa) of this Section 6.05 without receiving at least 75% cash consideration
for each such Disposition, (iii) no Disposition shall be permitted by paragraph (k) of this Section 6.05
unless such Disposition is for at least 75% cash consideration for each such Disposition, (iv) no Disposition or series
of related Dispositions in excess of $1.5 million shall be permitted by paragraph (h) of this Section 6.05
unless such Disposition is for at least 75% cash consideration; provided that for purposes of the 75% cash consideration
requirement in the foregoing clauses (iii) and (iv), (w) the amount of any Indebtedness or other
liabilities of the Borrower or any Subsidiary (as shown on such Person’s most recent balance sheet or in the notes thereto)
that are assumed by the transferee of any such assets, (x) the amount of any trade-in value applied to the purchase price
of any replacement assets acquired in connection and substantially contemporaneously with such Disposition, and (y) any securities
received by such Subsidiary from such transferee that are converted by such Subsidiary into cash or cash equivalents (to the extent
of the cash or cash equivalents received) substantially contemporaneously with the closing of the applicable Disposition, in each
case, shall be deemed to be cash, (v) no Disposition of Borrowing Base Collateral shall be permitted under this Section 6.05
(other than pursuant to clause (a)(i) hereof) unless (A) such Disposition is to a Loan Party or (B) an
updated Borrowing Base Certificate (based on the Borrowing Base Certificate most recently provided or required to be provided
as of that date by the Borrower) shall have been provided to the Administrative Agent setting forth the adjusted figures thereon
on a Pro Forma Basis for such Disposition and no Overadvance shall exist after giving pro forma effect thereto, and (vi) in
no event shall (x) any Loan Party Dispose of any Material Intellectual Property to any Person that is not a Loan Party other
than to the extent constituting non-exclusive outbound licenses of patents, copyrights, trademarks and other intellectual property
rights granted by a Loan Party in the ordinary course of business and not interfering in any respect with the ordinary conduct
of or materially detracting from the value of the business of the Borrower and its Subsidiaries or (y) any Subsidiary that
is not a Loan Party own or develop any Material Intellectual Property.

 

Section 6.06          Dividends
and Distributions. Declare or pay, directly or indirectly, any dividend or make any other distribution (by reduction
of capital or otherwise), whether in cash, property, securities or a combination thereof, with respect to any Equity Interests
of the Borrower (other than dividends and distributions on such Equity Interests payable solely by the issuance of additional
Equity Interests of the Borrower) or directly or indirectly redeem, purchase, retire or otherwise acquire for value any Equity
Interests of the Borrower or set aside any amount for any such purpose (other than through the issuance of additional Equity Interests
of the Person redeeming, purchasing, retiring or acquiring such shares) (a “Restricted Payment”); provided,
however, that:

 

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(a)           the
Borrower may make Restricted Payments in cash as shall be necessary to allow Holdings (or any Parent Entity) (i) to pay operating
expenses in the ordinary course of business and other corporate overhead, legal, accounting and other professional fees and expenses
(including, without limitation, those owing to third parties plus any customary indemnification claims made by directors, officers,
employees, members of management and consultants of Holdings (or any Parent Entity) directly attributable and reasonably allocated
to the ownership or operations of Holdings, the Borrower and the Subsidiaries), (ii) to pay fees and expenses related to
any debt or equity offering, investment or acquisition permitted hereunder (whether or not successful), and (iii) to pay
franchise or similar taxes and other fees and expenses required in connection with the maintenance of its existence and its ownership
of the Borrower and in order to permit Holdings to make payments (other than cash interest payments) which would otherwise be
permitted to be paid by the Borrower under Section 6.07(b);

 

(b)           the
Borrower may make Restricted Payments in the form of cash or, to the extent permitted by Section 6.01(t), unsecured
Indebtedness consisting of promissory notes, the proceeds of which are used to purchase or redeem the Equity Interests of Holdings
or any Parent Entity (including related stock appreciation rights or similar securities) held by then present or former directors,
officers, employees, members of management or consultants of any Parent Entity, the Borrower or any of its Subsidiaries (or the
estate, heirs, family members, spouse, former spouse, domestic partner or former domestic partner of any of the foregoing) or
by any Plan, in each case, pursuant to and in accordance with stock option plans or other benefit plans for management or employees,
provided that the aggregate amount of such Restricted Payments under this paragraph (b) shall not exceed
$2.5 million in any fiscal year, which, if not used in any year, may be carried forward to the next subsequent fiscal year;

 

(c)           repurchases
of Equity Interests in Holdings (or any Parent Entity), the Borrower or any Subsidiary deemed to occur upon exercise of stock
options or similar Equity Interests if such repurchased Equity Interests represent a portion of the exercise price of such options
or taxes to be paid in connection therewith;

 

(d)           the
Borrower and any Subsidiary of the Borrower may make Restricted Payments in cash to any direct or indirect member of an affiliated
group of corporations that files a consolidated U.S. federal tax return with the Borrower (the “Tax Distributions”),
provided that, such Tax Distributions shall not exceed the excess of (i) the amount that the Borrower or such Subsidiaries
would have been required to pay in respect of federal, state or local taxes, as the case may be, in respect of such year if the
Borrower or such Subsidiaries had paid such taxes directly as a stand-alone taxpayer or stand-alone group and (ii) the portion
of such federal, state or local taxes that is paid by the Borrower or such Subsidiaries;

 

(e)           to
the extent constituting a Restricted Payment, the Borrower and the Subsidiaries may enter into transactions expressly permitted
by Section 6.05(b) or (m);

 

(f)            the
proceeds of which shall be used by Holdings to make (or to make a Restricted Payment to any Parent Entity to enable it to make)
cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities
convertible into or exchangeable for Equity Interests of Holdings or any Parent Entity;

 

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(g)         payments
made by the Borrower or any of its Subsidiaries in cash in respect of withholding or similar Taxes payable by any future, present
or former officers, directors, employees, members of management or consultants of the Borrower (or any Parent Entity) or any of
its Subsidiaries (or the estate, heirs, family members, spouse, former spouse, domestic partner or former domestic partner of the
foregoing) and any repurchases of Equity Interests in consideration for such payments including demand repurchases in connection
with the exercise of stock options;

 

(h)         the
Borrower may make Restricted Payments to Holdings in cash so long as the Payment Conditions are satisfied on a Pro Forma Basis
immediately after giving effect to such Restricted Payment;

 

(i)           redemptions,
repurchases, retirements or other acquisitions of Equity Interests of the Borrower or any Parent Entity in exchange for, or out
of the proceeds of the substantially concurrent sale (other than to the Borrower or a Subsidiary) of, Equity Interests of the Borrower
or any Parent Entity (to the extent the proceeds of such sale are contributed to the capital of the Borrower) (in each case, other
than any Equity Interests issued or sold that are not Qualified Capital Stock) (“Refunding Capital Stock”);
and

 

(j)           the
Rights Offerings;

 

provided that, notwithstanding anything
to the contrary herein, no Loan Party may make any Restricted Payment consisting of any Material Intellectual Property.

 

Section 6.07         Transactions
with Affiliates.

 

(a)          Sell
or transfer any property or assets to, or purchase or acquire any property or assets from, or otherwise engage in any other transaction
with, any of its Affiliates, unless such transaction is (i) otherwise permitted (or required) under this Agreement and (ii) except
with respect to Investments permitted by Section 6.04, upon terms no less favorable to the Borrower or such Subsidiary,
as applicable, than would be obtained in a comparable arm’s-length transaction with a Person that is not an Affiliate.

 

(b)         The
foregoing paragraph (a) shall not prohibit,

 

(i)              any
issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment
arrangements, stock options and stock ownership plans approved by the board of directors (or equivalent governing body) of any
Parent Entity,

 

(ii)             loans
or advances to directors, officers, employees, members of management or consultants of Holdings, the Borrower or any of its Subsidiaries
permitted by Section 6.04,

 

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(iii)            transactions
among the Loan Parties, in each case otherwise permitted by the Loan Documents,

 

(iv)           the
payment of fees and indemnities to directors, officers, employees, members of management or consultants of any Parent Entity, the
Borrower and the Subsidiaries in the ordinary course of business,

 

(v)            permitted
agreements in existence on the Closing Date and set forth on Schedule 6.07 or any amendment thereto to the extent such
amendment is not adverse to the Lenders in any material respect,

 

(vi)           (A) any
employment or severance agreements or arrangements entered into by the Borrower or any of the Subsidiaries in the ordinary course
of business, (B) any subscription agreement or similar agreement pertaining to the repurchase of Equity Interests pursuant
to put/call rights or similar rights with employees, officers, directors, members of management or consultants, and (C) any
employee compensation, benefit plan or arrangement, any health, disability or similar insurance plan which covers employees, and
any reasonable employment contract or arrangement and transactions pursuant thereto,

 

(vii)           Restricted
Payments permitted under Section 6.06,

 

(viii)         any
purchase by Holdings of or contributions to, the equity capital of the Borrower,

 

(ix)            [reserved],

 

(x)             any
transaction in respect of which the Borrower delivers to the Administrative Agent (for delivery to the Lenders) a letter addressed
to the board of directors (or equivalent governing body) of the Borrower from an accounting, appraisal or investment banking firm,
in each case of nationally recognized standing, which letter states that such transaction is on terms that are no less favorable
to the Borrower or such Subsidiary, as applicable, than would be obtained in a comparable arm’s-length transaction with a
Person that is not an Affiliate (such letter, a “Fairness Opinion”),

 

(xi)            the
Transactions and the other transactions contemplated by the Plan of Reorganization to the extent consummated substantially in accordance
with the Plan of Reorganization, including the payment of all fees, expenses, bonuses and awards (including Transaction Costs)
related thereto,

 

(xii)           Guarantees
permitted by Section 6.01,

 

(xiii)          the
issuance and sale of Qualified Capital Stock,

 

(xiv)          [reserved],
and

 

(xv)           the
indemnification of directors, officers, employees, members of management or consultants of any Parent Entity, the Borrower and
its Subsidiaries in accordance with customary practice.

 

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In the event the Borrower or any of its
Subsidiaries proposes to consummate any transaction with an Affiliate (other than a transaction permitted under Section 6.07(b))
involving aggregate consideration of at least $30.0 million, the Borrower shall, prior to the consummation of such transaction,
deliver a Fairness Opinion with respect to such transaction to the Administrative Agent.

 

Section 6.08        Business
of Holdings, the Borrower and the Subsidiaries. Notwithstanding any other provisions hereof, engage at any time in
any business or business activity other than:

 

(a)          in
the case of Holdings, (i) ownership and acquisition of Equity Interests in Intermediate Holdings or the Borrower, as applicable,
together with activities directly related thereto, (ii) performance of its obligations under and in connection with the Loan
Documents (and Permitted Refinancing Indebtedness in respect thereof), (iii) actions incidental to the consummation of the
Transactions (including the payment of Transaction Costs), (iv) the performance of its obligations after the Closing Date
in respect of guaranteeing Indebtedness or obligations of the Borrower and its Subsidiaries, (v) the payment by Holdings,
directly or indirectly, of dividends or other distributions (by reduction of capital or otherwise), whether in cash, property,
securities or a combination thereof, with respect to any of its Equity Interests, or directly or indirectly redeeming, purchasing,
retiring or otherwise acquiring for value any of its Equity Interests or setting aside any amount for any such purpose, (vi) actions
required by law to maintain its existence, (vii) the payment of taxes and other customary obligations, (viii) the issuance
of Equity Interests, and (ix) activities incidental to its maintenance and continuance and to the foregoing activities, or

 

(b)         in
the case of the Borrower and any Subsidiary, any business or business activity conducted by any of them on the Closing Date and
any business or business activities incidental or related thereto, or any business or activity that is reasonably similar thereto
or a reasonable extension, development or expansion thereof or ancillary thereto.

 

Notwithstanding anything to the contrary
contained in herein, Holdings shall not sell, dispose of, grant a Lien on or otherwise transfer its Equity Interests in Intermediate
Holdings or the Borrower, as applicable (other than (i) Liens created by the Security Documents, (ii) subject to the
relevant intercreditor agreement, Liens created by the Term Loan Documents, (iii) Liens arising by operation of law that would
be permitted under Section 6.02 or (iv) the sale, disposition or other transfer (whether by purchase and sale,
merger, consolidation, liquidation or otherwise) of the Equity Interests of the Borrower to any Parent Entity that becomes a Loan
Party and agrees to be bound by this Section 6.08 contemporaneously with the consummation of such transaction).

 

Section 6.09         Limitation
on Modification of Indebtedness; Modification of Certificate of Incorporation, By-Laws and Certain Other Agreements; etc.

 

(a)          (i) Amend
or modify in any manner materially adverse to the Lenders, or grant any waiver or release under or terminate in any manner (if
such granting or termination shall be materially adverse to the Lenders), the articles or certificate of incorporation or by-laws
or limited liability company operating agreement of Holdings, the Borrower or any of the Subsidiary Guarantors or (ii) amend,
modify or otherwise change, or consent or agree to any amendment, modification, waiver or other change to any Term Loan Document
to the extent that any such amendment, modification, waiver or other change would be prohibited by the terms of the Intercreditor
Agreement; or

 

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(b)         Make,
or agree to make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of
or in respect of principal of or interest on any Subordinated Indebtedness, Indebtedness secured by a Junior Lien (other than
the Term Loan Obligations), or unsecured Indebtedness for borrowed money (including any Indebtedness incurred under Section 6.01(o)),
or any payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation or termination of such Subordinated Indebtedness, Indebtedness
secured by a Junior Lien (other than the Term Loan Obligations), or unsecured Indebtedness for borrowed money (except for (i) Refinancings
otherwise permitted by Section 6.01, (ii) payments of regularly scheduled interest, fees, expenses and indemnification
obligations and, to the extent this Agreement is then in effect, principal on the scheduled maturity date thereof, (iii) any
AHYDO “catch up” payments and (iv) the conversion of any Subordinated Indebtedness or unsecured Indebtedness for
borrowed money to Qualified Capital Stock of Holdings or any Parent Entity (each such payment or distribution, a “Restricted
Debt Payment”)); provided, however, that any such Subordinated Indebtedness, Indebtedness secured
by a Junior Lien (other than the Term Loan Obligations), or unsecured Indebtedness for borrowed money may be repurchased, redeemed,
retired, acquired, cancelled or terminated so long as (x) immediately prior to and after giving effect to such repurchase,
no Event of Default shall have occurred or be continuing and (y) the Payment Conditions are satisfied on a Pro Forma
Basis immediately after giving effect to such Restricted Debt Payment.

 

(c)          Permit
the Borrower or any Subsidiary to enter into any agreement or instrument that by its terms restricts (i) the payment of dividends
or distributions or the making of cash advances to (or the repayment of cash advances from) the Borrower or any Subsidiary or (ii) the
granting of Liens on Collateral pursuant to the Security Documents, in each case other than those arising under any Loan Document,
except, in each case, restrictions existing by reason of:

 

(i)              restrictions
imposed by Applicable Law;

 

(ii)            (A) contractual
encumbrances or restrictions in effect on the Closing Date or contained in any agreements related to any Permitted Refinancing
Indebtedness incurred to Refinance such Indebtedness, or (B) any such encumbrances or restrictions in any Term Loan Documents
or Permitted Refinancing Indebtedness in respect thereof, in each case so long as the scope of such encumbrance or restriction
is no more expansive in any material respect than any such encumbrance or restriction in effect on the Closing Date (or the date
of issuance as the case may be), or any agreement (regardless of whether such agreement is in effect on the Closing Date) providing
for the subordination of Subordinated Intercompany Debt;

 

(iii)           any
restriction on a Subsidiary imposed pursuant to an agreement entered into for the Disposition of all or substantially all the Equity
Interests or assets of such Subsidiary pending the closing of such sale or disposition;

 

(iv)           customary
provisions in Joint Venture agreements and other similar agreements applicable to Joint Ventures entered into in the ordinary course
of business;

 

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(v)            any
restrictions imposed by any agreement relating to secured Indebtedness permitted by this Agreement to the extent that such restrictions
apply only to the property or assets securing such Indebtedness;

 

(vi)           customary
provisions contained in leases, subleases, licenses or sublicenses of intellectual property and other similar agreements entered
into in the ordinary course of business;

 

(vii)          customary
provisions restricting subletting or assignment of any lease governing a leasehold interest;

 

(viii)         customary
provisions restricting assignment of any agreement entered into in the ordinary course of business;

 

(ix)            customary
restrictions and conditions contained in any agreement relating to any Disposition permitted under Section 6.05 pending
the consummation of such Disposition;

 

(x)             customary
restrictions and conditions contained in the document relating to any Lien, so long as (A) such Lien is permitted under Section 6.02
and such restrictions or conditions relate only to the specific asset subject to such Lien and the proceeds and products thereof,
and (B) such restrictions and conditions are not created for the purpose of avoiding the restrictions imposed by this Section 6.09;

 

(xi)            customary
net worth provisions contained in real property leases entered into by Subsidiaries of the Borrower, so long as the Borrower has
determined in good faith that such net worth provisions could not reasonably be expected to impair the ability of the Borrower
and its Subsidiaries to meet their ongoing obligations;

 

(xii)           any
agreement in effect at the time such Person becomes a Subsidiary, so long as such agreement was not entered into in contemplation
of such Person becoming a Subsidiary; or

 

(xiii)          restrictions
contained in any documents documenting Indebtedness permitted hereunder of any Subsidiary that is not a Subsidiary Guarantor or
required to become a Subsidiary Guarantor.

 

(d)         Make,
or agree to make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of
or in respect of principal of or interest on any Term Loan Obligations, or any payment or other distribution (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Term Loan Obligations, except to the extent expressly permitted under the Intercreditor
Agreement.

 

(e)          in
the case of any Loan Party, agree to, or incur, any Contractual Obligation which would prohibit such Loan Party from providing,
or continuing to provide, a Guarantee of the Obligations.

 

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Section 6.10         Financial
Covenant. The Borrower and its Subsidiaries shall, on any date following the first anniversary of the Closing Date
when Availability on such date is less than the greater of (i) 15% of the Line Cap and (ii) $10.0 million (the “FCCR
Test Amount”), maintain a Consolidated Fixed Charge Coverage Ratio of at least 1.0 to 1.0, tested for the four fiscal
quarter period (or prior to the Spring-Out Date, the twelve calendar month period) ending on the last day of the most recently
ended fiscal quarter (or prior to the Spring-Out Date, calendar month) for which the Borrower has delivered or is required to
deliver financial statements to the Administrative Agent in accordance with Section 5.04 of this Agreement, and at
the end of each succeeding fiscal quarter (or prior to the Spring-Out Date, calendar month) thereafter until the date on which
Availability on such date has exceeded the FCCR Test Amount for thirty (30) consecutive days.

 

Section 6.11         Use
of Proceeds. The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall
procure that Holdings, its Subsidiaries and its or their respective directors, officers, employees and agents shall not use directly
or indirectly, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay,
or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption
Laws or any Sanctions, (b) for the purpose of funding, financing or facilitating any activities, business or transaction
of or with any Sanctioned Person, or in any Sanctioned Country, or (c)  in any manner that would result in the violation
of any Sanctions applicable to any party hereto.

 

Section 6.12         Foreign
Subsidiaries. Neither Holdings nor the Borrower shall form or acquire any Foreign Subsidiary.

 

ARTICLE VII

 

Events of Default

 

Section 7.01        Events
of Default. In case of the happening of any of the following events (each, an “Event of Default”):

 

(a)          any
representation or warranty made or deemed made by any Loan Party in any Loan Document, or in any certificate or other instrument
required to be given by any Loan Party in writing furnished in connection with or pursuant to any Loan Document, shall prove to
have been false or misleading in any material respect when so made, deemed made pursuant to the terms of the Loan Documents or
so furnished by such Loan Party;

 

(b)         default
shall be made in the payment of any principal of any Loan when and as the same shall become due and payable, whether at the due
date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise;

 

(c)         default
shall be made in the payment of any interest on any Loan or in the payment of any Fee or any other amount (other than an amount
referred to in paragraph (b) above) due under any Loan Document, when and as the same shall become due and payable,
and such default shall continue unremedied for a period of three (3) Business Days;

 

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(d)         default
shall be made in the due observance or performance by Holdings, the Borrower or any of the Subsidiaries of any covenant, condition
or agreement contained in Sections 5.05(a), 5.07, 5.12(c) or in Article VI;

 

(e)          default
shall be made in the (i) failure to deliver a Borrowing Base Certificate required to be delivered pursuant to Section 5.12(a) within
two (2) Business Days of the date such Borrowing Base Certificate is required to be delivered or (ii) due observance
or performance by Holdings, the Borrower or any of the Subsidiaries of any covenant, condition or agreement contained in any Loan
Document (other than those specified in paragraphs (b), (c) and (d) above) and such default
shall continue unremedied for a period of thirty (30) days after the earlier of (A) written notice thereof from the Administrative
Agent or the Required Lenders to the Borrower or (B) any Responsible Officer of a Loan Party obtaining actual knowledge of
such breach or default;

 

(f)           (i) any
event or condition occurs that (A) results in any Material Indebtedness becoming due prior to its scheduled maturity or (B) enables
or permits (with all applicable grace periods having expired) the holder or holders any Material Indebtedness or any trustee or
agent on its or their behalf to cause any such Material Indebtedness to become due, or to require the prepayment, repurchase, redemption
or defeasance thereof, prior to its scheduled maturity or (ii) Holdings, the Borrower, or any of the Subsidiaries shall fail
to pay the principal of any Material Indebtedness at the stated final maturity thereof; provided that this paragraph (f) shall
not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing
such Indebtedness if such sale or transfer is permitted hereunder; provided further that any such failure is unremedied
and not waived by the holders of such Indebtedness prior to the acceleration of the Loans pursuant to this Section 7.01;

 

(g)         there
shall have occurred a Change in Control;

 

(h)         an
involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking
(i) relief in respect of Holdings, the Borrower or any such Subsidiary, or of a substantial part of the property or assets
of Holdings, the Borrower or any material Subsidiary, under the Bankruptcy Code, or any other federal, state or foreign bankruptcy,
insolvency, receivership or similar law, (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for Holdings, the Borrower or any such Subsidiary or for a substantial part of the property or assets of Holdings,
the Borrower or any such Subsidiary or (iii) the winding-up or liquidation of Holdings, the Borrower or any such Subsidiary
(except, in the case of any such Subsidiary, in a transaction permitted by Section 6.05); and such proceeding or petition
shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall
be entered;

 

(i)          Holdings,
the Borrower or any Subsidiary, shall (i) voluntarily commence any proceeding or file any petition seeking relief under the
Bankruptcy Code, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, (ii) consent
to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or the filing of any petition described
in paragraph (h) above, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for Holdings, the Borrower or any such Subsidiary or for a substantial part of the
property or assets of Holdings, the Borrower or any such Subsidiary, (iv) file an answer admitting the material allegations
of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) become
unable or admit in writing its inability or fail generally to pay its debts as they become due;

 

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(j)          the
failure by Holdings, the Borrower or any Subsidiary to pay one (1) or more final judgments aggregating in excess of $7.5 million
(to the extent not covered by third-party insurance as to which the insurer has been notified of such judgment and does not deny
coverage), which judgments are not discharged or effectively waived or stayed for a period of sixty (60) consecutive days,
or any action shall be legally taken by a judgment creditor to levy upon assets or properties of Holdings, the Borrower or any
Subsidiary to enforce any such judgment;

 

(k)          (i) an
ERISA Event and/or a Foreign Plan Event shall have occurred, (ii) a trustee shall be appointed by a United States district
court to administer any Plan(s) or (iii) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor
of a Multiemployer Plan that it has incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and such Person
does not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely
and appropriate manner; and in each case in clauses (i) through (iii) above, such event or condition,
together with all other such events or conditions, if any, could reasonably be expected to have a Material Adverse Effect;

 

(l)           (i) any
Loan Document shall for any reason cease to be, or shall be asserted in writing by Holdings, the Borrower or any Subsidiary not
to be, a legal, valid and binding obligation of any party thereto, (ii) any security interest purported to be created by any
Security Document and to extend to assets that are not immaterial to Holdings, the Borrower and the Subsidiaries on a consolidated
basis shall cease to be, or shall be asserted in writing by Holdings, the Borrower or any other Loan Party not to be (other than
in a notice to the Administrative Agent to take requisite actions to perfect such Lien), a valid and perfected security interest
(perfected as and having the priority required by the Agreement or the relevant Security Document and subject to such limitations
and restrictions as are set forth herein and therein) in the securities, assets or properties covered thereby, except to the extent
(x) any such loss of perfection or priority results from the failure of the Administrative Agent to maintain possession of
certificates actually delivered to it representing securities pledged under the Collateral Agreement, (y) such loss is covered
by a lender’s title insurance policy as to which the insurer has been notified of such loss and does not deny coverage and
the Administrative Agent shall be reasonably satisfied with the credit of such insurer or (z) such loss of perfected security
interest may be remedied by the filing of appropriate documentation without the loss of priority or (iii) the Guarantees pursuant
to the Security Documents by Holdings, the Borrower or the Subsidiary Guarantors of any of the Obligations shall cease to be in
full force and effect (other than in accordance with the terms thereof), or shall be asserted in writing by Holdings or the Borrower
or any Subsidiary Guarantor not to be in effect or not to be legal, valid and binding obligations;

 

(m)         except
as otherwise expressly permitted hereunder, the Borrower and its Subsidiaries (taken as a whole) shall suspend the operation of
their business in the ordinary course at more than 60.0% of the Loan Parties’ stores for a period of more than 30 consecutive
days (other than to the extent such suspension is a direct result of (i) the COVID-19 pandemic or governmental or court orders
issued in connection therewith; provided that, solely in the case of this clause (i), such suspension occurs prior to the
first anniversary of the Closing Date, or (ii) war, riot, civil insurrection, or natural disaster (e.g., tornadoes or earthquakes),
in each case, to the extent the consequences of such events or circumstances are not having a disproportionate impact on the Borrower
and its Subsidiaries (taken as a whole) when compared to other similarly situated companies), liquidate all or a material portion
of their assets or store locations, or employ an agent or other third party to conduct a program of closings, liquidations or “Going-Out-Of-Business”
sales of any material portion of their business; or

 

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(n)         a
material breach by the Borrower of any of its material obligations under the Plan of Reorganization or any material agreement contemplated
thereby, including with respect to its obligations to the holders of Allowed General Unsecured Claims, which breach remains unremedied
for a period of thirty (30) days.

 

then, and in every such event (other than
an event with respect to Holdings or the Borrower described in paragraph (h) or (i) above), and at any
time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders
shall, upon notice to the Borrower, take any or all of the following actions, at the same or different times: (i) terminate,
reduce or condition any Revolver Commitment, or make any adjustment to the Borrowing Base, (ii) declare the Loans then outstanding
to be forthwith due and payable in whole or in part, whereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under
any other Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived by the Borrower, anything contained herein or in any other Loan Document to the
contrary notwithstanding, (iii) require the Loan Parties to Cash Collateralize LC Obligations at 105% of the Stated Amount
thereof, and, if the Loan Parties fail promptly to deposit such Cash Collateral, the Administrative Agent may (and shall upon the
direction of Required Lenders) advance the required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or
is created thereby, or the conditions in Section 4.02 are satisfied); and with respect to any event described in paragraph
(h) or (i) above, the Revolver Commitments shall automatically terminate, the principal of the Loans then
outstanding, together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued
hereunder and under any other Loan Document, shall automatically become due and payable, anything contained herein or in any other
Loan Document to the contrary notwithstanding.

 

Section 7.02        Allocation.
Notwithstanding anything herein to the contrary, upon the occurrence and during the continuance of an Event of Default, monies
to be applied to the Secured Obligations, whether arising from payments by the Loan Parties, realization on Collateral, setoff
or otherwise, shall be allocated as follows:

 

(a)         first,
to payment of that portion of the Obligations (excluding the Other Liabilities) constituting fees, indemnities, expenses (including
extraordinary expenses) and other amounts, owing to the Administrative Agent or any Issuing Bank, in its capacity as such;

 

(b)         second,
to payment of that portion of the Obligations (excluding the Other Liabilities) constituting indemnities, expenses, and other amounts
(other than principal, interest and fees) payable to the Lenders, ratably among them in proportion to the amounts described in
this clause second payable to them;

 

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(c)         third,
to the extent not previously reimbursed by the Borrower, to payment to the Lenders of that portion of the Obligations constituting
principal and accrued and unpaid interest on any Overadvance Loans and Protective Advances, ratably among the Lenders in proportion
to the amounts described in this clause third payable to them;

 

(d)         fourth,
to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans (other than Overadvance Loans
and Protective Advances), LC Obligations and other Obligations, and fees (including Letter of Credit Fees), ratably among the Lenders
and the Issuing Banks in proportion to the respective amounts described in this clause fourth payable to them;

 

(e)         fifth,
to payment of that portion of the Obligations constituting unpaid principal of the Loans (other than Overadvance Loans and Protective
Advances) and LC Obligations, ratably among the Lenders and the Issuing Banks in proportion to the respective amounts described
in this clause fifth held by them;

 

(f)          sixth,
to the Administrative Agent for the account of the Issuing Banks, to Cash Collateralize LC Obligations at 105% of the Stated Amount
thereof;

 

(g)         seventh,
to the payment of (i) all Secured Bank Product Obligations (other than Secured Bank Product Obligations owing in respect of
Bank Products described in clauses (c) and (e) of the definition of “Bank Product”) and (ii) all Secured
Swap Obligations, ratably among the Secured Parties in proportion to the respective amounts described in this clause seventh
held by them, in each case, up to and including the amount most recently provided to the Administrative Agent pursuant to Section 2.23;

 

(h)         eighth,
ratably to the payment of (i) all Secured Bank Product Obligations (including all Secured Bank Product Obligations owing in
respect of Bank Products described in clauses (c) and (e) of the definition of “Bank Product”) and (ii) all
Secured Swap Obligations, in each case, to the extent not paid pursuant to clause seventh above, ratably among the Secured
Parties in proportion to the respective amounts described in this clause eighth held by them; and

 

(i)           last,
the balance, if any, after all of the Obligations have been paid in full, to the Loan Parties or as otherwise required by Applicable
Law.

 

Amounts shall be applied
to each category of Secured Obligations set forth above until such Secured Obligations are paid in full or cash collateralized,
as applicable and then to the next category. If amounts are insufficient to satisfy a category, they shall be applied on a pro rata
basis among the Secured Obligations in the category. Amounts distributed to any Secured Party with respect to any Secured Bank
Product Obligations and Secured Swap Obligations pursuant to clause seventh above shall be the lesser of the maximum Secured
Bank Product Obligations or Secured Swap Obligations, as applicable, last reported to the Administrative Agent by such Secured
Party with respect thereto or the actual Secured Bank Product Obligations or Secured Swap Obligations, as applicable, as calculated
by the methodology reported to the Administrative Agent for determining the amount due. The Administrative Agent shall have no
obligation to calculate the amount to be distributed with respect to any Secured Bank Product Obligations or Secured Swap Obligations,
and may request a reasonably detailed calculation of such amount from the applicable Secured Party. If a Secured Party fails to
deliver such calculation within five days following request by the Administrative Agent, the Administrative Agent may assume the
amount to be distributed is zero. The allocations set forth in this Section 7.02 are solely to determine the rights
and priorities of the Administrative Agent and the Secured Parties as among themselves, and may, except as set forth in the next
sentence, be changed by agreement among them without the consent of any Loan Party. It is understood and agreed that (i) no
Secured Bank Product Obligations or Secured Swap Agreement Obligations (in each case other than Noticed Bank Products or Noticed
Swap Agreements) shall be paid pursuant to this Section 7.02 ahead of any other Obligations and (ii) no Cash Collateralization
of LC Obligations shall be paid prior to any fees, interest or amounts due to the Issuing Banks or the Administrative Agent, in
each case, unless consented to by the Borrower.

 

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ARTICLE VIII

 

The Agents

 

Section 8.01        Appointment,
Authority and Duties of the Administrative Agent.

 

(a)         Appointment
and Authority. Each Secured Party hereby irrevocably appoints and designates J.P. Morgan as the Administrative Agent under
all Loan Documents and J.P. Morgan hereby accepts such appointments. The Administrative Agent may, and each Secured Party
authorizes the Administrative Agent to, enter into all Loan Documents to which the Administrative Agent is intended to be a party
and accept all Security Documents, for the benefit of Secured Parties. Each Secured Party agrees that any action taken by the Administrative
Agent or Required Lenders in accordance with the provisions of the Loan Documents, and the exercise by the Administrative Agent
or Required Lenders of any rights or remedies set forth therein, together with all other powers reasonably incidental thereto,
shall be authorized by and binding upon all Secured Parties. Without limiting the generality of the foregoing, the Administrative
Agent shall have the sole and exclusive authority to (a) act as the disbursing and collecting agent for the Lenders with respect
to all payments and collections arising in connection with the Loan Documents; (b) execute and deliver as the Administrative
Agent each Loan Document, including any intercreditor or subordination agreement, and accept delivery of each Loan Document from
any Loan Party or other Person; (c) act as collateral agent for Secured Parties for purposes of perfecting and administering
Liens under the Loan Documents, and for all other purposes stated therein; (d) manage, supervise or otherwise deal with Collateral;
and (e) take any Enforcement Action or otherwise exercise any rights or remedies with respect to any Collateral under the
Loan Documents, Applicable Law or otherwise. No Secured Party shall have any right individually to take any Enforcement Action
or otherwise exercise any rights or remedies with respect to any Collateral under the Loan Documents, Applicable Law or otherwise.
The duties of the Administrative Agent shall be ministerial and administrative in nature, and the Administrative Agent shall not
have a fiduciary relationship with any Secured Party, Participant or other Person, by reason of any Loan Document or any transaction
relating thereto. The Administrative Agent alone shall be authorized to determine whether any Accounts, Credit Card Receivables
or Inventory constitute Eligible Credit Card Receivables, Eligible Inventory or Eligible In-Transit Inventory, whether to impose
or release any Availability Reserve, or whether any conditions to funding or to issuance of a Letter of Credit have been satisfied,
which determinations and judgments, if exercised in good faith, shall exonerate the Administrative Agent from liability to any
Lender or other Person for any error in judgment.

 

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(b)         Duties.
The Administrative Agent shall not have any duties except those expressly set forth in the Loan Documents. The conferral upon the
Administrative Agent of any right shall not imply a duty to exercise such right, unless instructed to do so by Required Lenders
in accordance with this Agreement.

 

(c)         Agent
Professionals. The Administrative Agent may perform its duties through agents and employees. The Administrative Agent may consult
with and employ Agent Professionals, and shall be entitled to act upon, and shall be fully protected in any action taken in good
faith reliance upon, any advice given by an Agent Professional.

 

(d)         Instructions
of Required Lenders. The rights and remedies conferred upon the Administrative Agent under the Loan Documents may be exercised
without the necessity of joinder of any other party, unless required by Applicable Law. The Administrative Agent may request instructions
from Required Lenders or other Secured Parties with respect to any act (including the failure to act) in connection with any Loan
Documents, and may seek assurances to its satisfaction from Secured Parties of their indemnification obligations against all Claims
that could be incurred by the Administrative Agent in connection with any act. The Administrative Agent shall be entitled to refrain
from any act until it has received such instructions or assurances, and the Administrative Agent shall not incur liability to any
Lender by reason of so refraining. Instructions of Required Lenders shall be binding upon all Secured Parties, and no Secured Party
shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining
from acting in accordance with the instructions of Required Lenders. Notwithstanding the foregoing, instructions by and consent
of specific Lenders or Secured Parties shall be required to the extent provided in Section 9.08(b). In no event shall
the Administrative Agent be required to take any action that, in its opinion, is contrary to Applicable Law or any Loan Documents
or could subject any Agent Indemnitee to personal liability.

 

Section 8.02        Agreements
Regarding Collateral and Field Examination Reports.

 

(a)          Possession
of Collateral. The Administrative Agent and Secured Parties appoint each Lender as agent (for the benefit of Secured Parties)
for the purpose of perfecting Liens in any Collateral held or controlled by such Lender, to the extent such Liens are perfected
by possession or control. If any Lender obtains possession or control of any Collateral, it shall notify the Administrative Agent
thereof and, promptly upon the Administrative Agent’s request, deliver such Collateral to the Administrative Agent or otherwise
deal with it in accordance with the Administrative Agent’s instructions.

 

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(b)         Reports.
Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or on behalf of the Administrative Agent;
(ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or
accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a
Report and (B) shall not be liable for any information contained in any Report; (iii) the Reports are not comprehensive
audits or examinations, and that any Person performing any field examination will inspect only specific information regarding the
Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan
Parties’ personnel and that the Administrative Agent undertakes no obligation to update, correct or supplement the Reports;
(iv) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party or
any other Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any
other indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other
Person preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach
or draw from any Report in connection with any extension of credit that the indemnifying Lender has made or may make to the Borrower,
or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it
will pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report harmless
from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’
fees) incurred by the Administrative Agent or any such other Person as the direct or indirect result of any third parties who might
obtain all or part of any Report through the indemnifying Lender.

 

Section 8.03        Reliance
By the Administrative Agent. The Administrative Agent shall be entitled to rely, and shall not incur any liability
in relying, upon any certification, notice or other communication (including those by telephone, telex, telegram, telecopy or
e-mail) believed by it to be genuine and correct and to have been signed, sent or made by the proper Person, and upon the advice
and statements of Agent Professionals. The Administrative Agent shall have a reasonable and practicable amount of time to act
upon any instruction, notice or other communication under any Loan Document, and shall not be liable for any such delay in acting.

 

Section 8.04        Action
Upon Default. The Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default, or
of any failure to satisfy any conditions in Article IV, unless it has received written notice from the Borrower or
Required Lenders specifying the occurrence and nature thereof. If any Lender acquires knowledge of a Default, Event of Default
or failure of such conditions, it shall promptly notify the Administrative Agent and the other Lenders thereof in writing. Each
Secured Party agrees that, except with the written consent of the Required Lenders, it will not take any Enforcement Action, accelerate
Obligations, or exercise any right that it might otherwise have under Applicable Law to credit bid at foreclosure sales, UCC sales
or other similar dispositions of Collateral or to assert any rights relating to any Collateral.

 

Section 8.05        Payments
Received by Defaulting Lender. If a Defaulting Lender obtains a payment or reduction of any Obligation, it shall immediately
turn over the amount thereof to the Administrative Agent for application under Section 2.21 and it shall provide a
written statement to the Administrative Agent describing the Obligation affected by such payment or reduction. No Lender shall
set off against any Collateral Deposit Account without the prior consent of the Administrative Agent.

 

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Section 8.06        Limitation
on Responsibilities of the Agents. The Administrative Agent shall be deemed not to have knowledge of any (i) notice
of any of the events or circumstances set forth or described in Section 5.05 unless and until written notice thereof
stating that it is a “notice under Section 5.05” in respect of this Agreement and identifying the specific clause
under said Section is given to the Administrative Agent by the Borrower, or (ii) notice of any Default or Event of Default
unless and until written notice thereof (stating that it is a “notice of Default” or a “notice of an Event of
Default”) is given to the Administrative Agent by the Borrower, a Lender or an Issuing Bank. Further, the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered
thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms
or conditions set forth in any Loan Document or the occurrence of any Default or Event of Default, (iv) the sufficiency,
validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document (including,
for the avoidance of doubt, in connection with the Administrative Agent’s reliance on any Electronic Signature transmitted
by facsimile, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), (v) the
satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt
of items (which on their face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction
of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the Administrative
Agent, or (vi) the creation, perfection or priority of Liens on the Collateral.

 

Section 8.07        Successor
Administrative Agent and Co-Agents.

 

(a)         Resignation;
Successor Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided below,
the Administrative Agent may resign at any time by giving at least 30 days written notice thereof to Lenders and the Borrower.
Upon receipt of such notice, Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor Administrative
Agent which shall be (i) (A) a Lender or an Affiliate of a Lender; or (B) a commercial bank that is organized under
the laws of the United States or any state or district thereof, has a combined capital surplus of at least $1,000,000,000 and (ii) provided
that no Event of Default exists under Sections 7.01(b), 7.01(h) and 7.01(i) (with respect to
the Borrower only), subject to the approval of the Borrower. If no successor agent is appointed prior to the date that is 30 days
from the effective date of the resignation of the Administrative Agent, then the Administrative Agent may appoint a successor agent
from among the Lenders or, if no Lender accepts such role, the Administrative Agent may appoint Required Lenders as successor Administrative
Agent. Upon acceptance by a successor Administrative Agent of an appointment to serve as the Administrative Agent hereunder, or
upon appointment of Required Lenders as successor Administrative Agent, such successor Administrative Agent shall thereupon succeed
to and become vested with all the powers and duties of the retiring Administrative Agent without further act, and the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder but shall continue to have the benefits of the
indemnification set forth in Section 8.15. Notwithstanding any Administrative Agent’s resignation, the provisions
of this Section 8.07 shall continue in effect for its benefit with respect to any actions taken or omitted to be taken
by it while the Administrative Agent. Any successor to J.P. Morgan by merger or acquisition of stock or this loan shall continue
to be the Administrative Agent hereunder without further act on the part of the parties hereto, unless such successor resigns as
provided above.

 

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(b)         Separate
Collateral Administrative Agent. It is the intent of the parties that there shall be no violation of any Applicable Law denying
or restricting the right of financial institutions to transact business in any jurisdiction. If the Administrative Agent believes
that it may be limited in the exercise of any rights or remedies under the Loan Documents due to any Applicable Law, the Administrative
Agent may appoint, subject to the approval of the Borrower (such approval not to be unreasonably withheld or delayed), an additional
Person who is not so limited, as a separate collateral agent or co-collateral agent. If the Administrative Agent so appoints a
collateral agent or co-collateral agent, each right and remedy intended to be available to the Administrative Agent under the Loan
Documents shall also be vested in such separate agent. The parties acknowledge that any Term Loan Agent may be acting as collateral
agent for the Administrative Agent and the Lenders with respect to Real Property, equipment and other Term Loan Priority Collateral
and, to such extent, the Administrative Agent hereby appoints the Term Loan Agent to act in such capacity. Secured Parties shall
execute and deliver such documents as the Administrative Agent deems appropriate to vest any rights or remedies in such agent.
If any collateral agent or co-collateral agent shall die or dissolve, become incapable of acting, resign or be removed, then all
the rights and remedies of such agent, to the extent permitted by Applicable Law, shall vest in and be exercised by the Administrative
Agent until appointment of a new agent.

 

Section 8.08        Acknowledgements
of Lenders and Issuing Banks.

 

(a)         Each
Lender and each Issuing Bank represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending
facility, (ii) it is engaged in making, acquiring or holding commercial loans and in providing other facilities set forth
herein as may be applicable to such Lender or Issuing Bank, in each case in the ordinary course of business, and not for the purpose
of purchasing, acquiring or holding any other type of financial instrument (and each Lender and each Issuing Bank agrees not to
assert a claim in contravention of the foregoing), (iii) it has, independently and without reliance upon the Administrative
Agent, any Arranger, any Syndication Agent, or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing,
and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement as a Lender, and to make, acquire or hold Loans hereunder and (iv) it is sophisticated with respect to decisions
to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender
or such Issuing Bank, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such
commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing
such other facilities. Each Lender and each Issuing Bank also acknowledges that it will, independently and without reliance upon
the Administrative Agent, any Arranger, any Syndication Agent, or any other Lender or Issuing Bank, or any of the Related Parties
of any of the foregoing, and based on such documents and information (which may contain material, non-public information within
the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

 

(b)         Each
Lender, by delivering its signature page to this Agreement on the Closing Date, or delivering its signature page to an
Assignment and Acceptance or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have
acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to,
or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Closing Date or the effective date of any
such Assignment and Acceptance or any other Loan Document pursuant to which it shall have become a Lender hereunder.

 

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Section 8.09         Remittance
of Payments and Collections.

 

(a)          Remittances
Generally. All payments by any Lender to the Administrative Agent shall be made by the time and on the day set forth in this
Agreement, in immediately available funds. If no time for payment is specified, payment shall be made by Lender not later than
2:00 p.m. (Local Time) on such day. Payment by the Administrative Agent to any Secured Party shall be made by wire transfer,
in the type of funds received by the Administrative Agent. Any such payment shall be subject to the Administrative Agent’s
right of offset for any amounts due from such payee under the Loan Documents.

 

(b)          Failure
to Pay. If any Secured Party fails to pay any amount when due by it to the Administrative Agent pursuant to the terms hereof,
such amount shall bear interest from the due date until paid at the rate determined by the Administrative Agent as customary in
the banking industry for interbank compensation. In no event shall Borrower be entitled to receive credit for any interest paid
by a Secured Party to the Administrative Agent, nor shall any Defaulting Lender be entitled to interest on any amounts held by
the Administrative Agent pursuant to Section 2.21.

 

(c)          Recovery
of Payments. If the Administrative Agent pays any amount to a Secured Party in the expectation that a related payment will
be received by the Administrative Agent from a Loan Party and such related payment is not received, then the Administrative Agent
may recover such amount from each Secured Party that received it. If the Administrative Agent determines at any time that an amount
received under any Loan Document must be returned to a Loan Party or paid to any other Person pursuant to Applicable Law or otherwise,
then, notwithstanding any other term of any Loan Document, the Administrative Agent shall not be required to distribute such amount
to any Lender. If any amounts received and applied by the Administrative Agent to any Secured Obligations are later required to
be returned by the Administrative Agent pursuant to Applicable Law, each Lender shall pay to the Administrative Agent, on demand,
such Lender’s Pro Rata share of the amounts required to be returned.

 

Section 8.10         The
Administrative Agent in its Individual Capacity. As a Lender, J.P. Morgan shall have the same rights and remedies
under the other Loan Documents as any other Lender, and the terms “Lenders,” “Required Lenders” or any
similar term shall include J.P. Morgan in its capacity as a Lender. J.P. Morgan and its Affiliates may accept deposits
from, lend money to, provide Bank Products to, act as financial or other advisor to, and generally engage in any kind of business
with, Loan Parties and their Affiliates, as if J.P. Morgan were not the Administrative Agent hereunder, without any duty
to account therefor to the Lenders. In their individual capacities, J.P. Morgan and its Affiliates may receive information
regarding Loan Parties, their Affiliates and their Account Debtors (including information subject to confidentiality obligations),
and each Secured Party agrees that J.P. Morgan and its Affiliates shall be under no obligation to provide such information
to any Secured Party, if acquired in such individual capacity.

 

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Section 8.11         Administrative
Agent Titles. Each Lender, other than J.P. Morgan, that is designated (on the cover page of this Agreement
or otherwise) by J.P. Morgan as an “Agent” or “Arranger” of any type shall not have any right, power,
responsibility or duty under any Loan Documents other than those applicable to all Lenders in their capacity as such, and shall
in no event be deemed to have any fiduciary relationship with any other Lender.

 

Section 8.12         Bank
Product Providers. Each Secured Bank Product Provider and Secured Swap Provider, by delivery of a notice to the Administrative
Agent of a Bank Product or Swap Agreement, agrees to be bound by this Article VIII. Each Secured Bank Product Provider
and each Secured Swap Provider shall indemnify and hold harmless the Agent Indemnitees, to the extent not reimbursed by Loan Parties,
against all Claims that may be incurred by or asserted against any Agent Indemnitee in connection with such provider’s Secured
Bank Product Obligations and/or Secured Swap Obligations, as applicable.

 

Section 8.13         Survival.
This Article VIII shall survive Payment in Full of the Obligations. Other than Sections 8.01, 8.04
and 8.07, this Article VIII does not confer any rights or benefits upon Borrower or any other Person. As
between Borrower and Administrative Agent, any action that Administrative Agent may take under any Loan Documents or with respect
to any Obligations shall be conclusively presumed to have been authorized and directed by Secured Parties.

 

Section 8.14         Withholding
Tax. To the extent required by any Applicable Law, the Administrative Agent may withhold from any payment to any Lender
an amount equivalent to any applicable withholding Tax. Without limiting or expanding the provisions of Section 2.17,
each Lender shall indemnify and hold harmless the Administrative Agent against, within 10 days after written demand therefor,
any and all Taxes and any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements
of any counsel Administrative Agent) incurred by or asserted against the Administrative Agent by the IRS or any other Governmental
Authority as a result of the failure of the Administrative Agent to properly withhold Tax from amounts paid to or for the account
of any Lender for any reason (including, without limitation, because the appropriate form was not delivered or not properly executed,
or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from,
or reduction of withholding Tax ineffective). A certificate as to the amount of such payment or liability delivered to any Lender
by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent
to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against
any amount due the Administrative Agent under this Section 8.14. The agreements in this Section 8.14 shall
survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a
Lender, the termination of the Revolver Commitments and the repayment, satisfaction or discharge of all other Obligations. For
the avoidance of doubt, for purposes of this Section 8.14, the term “Lender” includes any Issuing Bank.

 

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Section 8.15         Indemnification.
The Lenders agree to indemnify each Agent and each Lead Arranger in its capacity as such (to the extent not reimbursed by Holdings
or the Borrower and without limiting the obligation of Holdings or the Borrower to do so), each in an amount equal to its pro rata
share (based on its Revolver Commitments hereunder (or if such Revolver Commitments shall have expired or been terminated, in
accordance with the respective principal amounts of its applicable outstanding Loans or participations in LC Disbursements, as
applicable)) thereof, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans)
be imposed on, incurred by or asserted against such Agent or Lead Arranger in any way relating to or arising out of, the Revolver
Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein
or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent or Lead Arranger under or in connection
with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent’s or Lead Arranger’s
gross negligence or willful misconduct. The agreements in this Section 8.15 shall survive the payment of the Loans
and all other amounts payable hereunder.

 

Section 8.16  
       Certain ERISA Matters.

 

(a)          Each
Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants,
from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit
of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party,
that at least one of the following is and will be true:

 

(i)            such
Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans
with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters
of Credit, the Revolver Commitments or this Agreement,

 

(ii)           the
transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined
by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance
company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts),
PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption
for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into,
participation in, administration of and performance of the Loans, the Letters of Credit, the Revolver Commitments and this Agreement,

 

(iii)          (A) such
Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI
of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter
into, participate in, administer and perform the Loans, the Letters of Credit, the Revolver Commitments and this Agreement, (C) the
entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolver Commitments
and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to
the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect
to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit,
the Revolver Commitments and this Agreement, or

 

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(iv)          such
other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion,
and such Lender.

 

(b)          In
addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect
to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in
the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person
became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such
Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to
or for the benefit of the Borrower or any other Loan Party, that the Administrative Agent is not a fiduciary with respect to the
assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the
Loans, the Letters of Credit, the Revolver Commitments and this Agreement (including in connection with the reservation or exercise
of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

 

Section 8.17         Flood
Insurance Laws. The Administrative Agent has adopted internal policies and procedures that address requirements placed
on federally regulated lenders under Flood Insurance Laws. The Administrative Agent will post on the applicable electronic platform
(or otherwise distribute to each Lender in the syndicate) documents that it receives in connection with the Flood Insurance Laws.
However, the Administrative Agent reminds each Lender and Participant in the facility that, pursuant to the Flood Insurance Laws,
each federally regulated Lender (whether acting as a Lender or Participant in the facility) is responsible for assuring its own
compliance with the flood insurance requirements.

 

ARTICLE IX

 

Miscellaneous

 

Section 9.01         Notices.

 

(a)          Except
in the case of notices and other communications expressly permitted to be given by telephone or Electronic Systems (and subject
in each case to paragraph (b) below), notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by fax or other electronic
transmission, (including by “.pdf” or “.tif”) pursuant to the terms of this Agreement, as follows:

 

(i)            if
to any Loan Party, to Tuesday Morning, Inc., 6250 LBJ Freeway, Dallas, Texas 75240, Attention: Stacie Shirley, Telecopier:
(972) 934-7231, Electronic Address: sshirley@tuesdaymorning.com, with a copy to Tuesday Morning, Inc., 6250 LBJ Freeway,
Dallas, Texas 75240, Attention: Steven R. Becker, Electronic Address: sbecker@tuesdaymorning.com, with a copy to Haynes and Boone,
LLP, 2323 Victory Ave., Suite 700, Dallas, Texas 75219, Attention: Ian Peck, Electronic Address: ian.peck@haynesboone.com;

 

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(ii)            if
to the Administrative Agent, to JPMorgan Chase Bank, N.A., 2200 Ross Avenue, 9th Floor, TX1-2921, Dallas, TX 75201, Attention:
Jon Eckhouse, Telecopier: (214) 965-2594, Electronic Address: jon.eckhouse@jpmorgan.com, with a copy to Vinson & Elkins
LLP, 2001 Ross Avenue, Suite 3900, Attention: Christopher Dawe, Electronic Address: cdawe@velaw.com;

 

(iii)           if
to an Issuing Bank, to it at the address, fax number or electronic address set forth separately in writing; or

 

(iv)            if to a Lender, to it at the address, fax number or electronic address set
forth on Schedule 2.01 or in the Assignment and Acceptance pursuant to which such Lender becomes a party
hereto.

 

(b)          Notices
and other communications to the Borrower, any Loan Party, the Lenders and the Issuing Banks hereunder may be delivered or furnished
by Electronic Systems or other electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative
Agent and the applicable Lender. Each of the Administrative Agent and the Borrower may, in its discretion, agree to accept notices
and other communications to it hereunder by Electronic Systems or other electronic communications pursuant to procedures approved
by it; provided, further, that approval of such procedures may be limited to particular notices or communications.

 

(c)          All
notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed
to have been given on the date of receipt if delivered by hand or overnight courier service, sent by fax or (to the extent permitted
by paragraph (b) above) electronic means or on the date five (5) Business Days after dispatch by certified
or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 9.01
or in accordance with the latest unrevoked direction from such party given in accordance with this Section 9.01.

 

(d)          Any
party hereto may change its address or fax number for notices and other communications hereunder by notice to the other parties
hereto.

 

Section 9.02         Survival
of Agreement. All representations and warranties made by the Loan Parties herein and in the other Loan Documents shall
be considered to have been relied upon by the Lenders and each Issuing Bank and shall survive the making of the Loans, the execution
and delivery of the Loan Documents and the issuance of the Letters of Credit, and shall continue in full force and effect until
the Revolver Termination Date. Without prejudice to the survival of any other agreements contained herein, obligations for Taxes,
costs, indemnifications, reimbursements, damages and other contingent liabilities contained herein (including pursuant to Sections 2.15,
2.17 and 9.05) shall survive the payment in full of the principal and interest hereunder, the expiration of the
Letters of Credit, and the termination of the Revolver Commitments or this Agreement, limited in the manner set forth herein.

 

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Section 9.03         Binding
Effect; Effectiveness. Except as provided in Section 4.01, this Agreement shall become effective
when it shall have been executed by Holdings, the Borrower and the Administrative Agent and when the Administrative Agent shall
have received copies hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of Holdings, the Borrower, each Issuing Bank, the Administrative Agent and each
Lender and their respective permitted successors and assigns.

 

Section 9.04         Successors
and Assigns.

 

(a)          The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) except
as otherwise permitted by Section 6.05 the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such
consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except
in accordance with this Section 9.04. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate
of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section 9.04), and, to the extent expressly contemplated hereby, the Related Parties of each of the Agents, the
Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)          Subject
to the conditions set forth in clause (c) below, any Lender may assign to one (1) or more Eligible Assignees
(other than to any natural person) all or a portion of its rights and obligations under this Agreement (including all or a portion
of its Revolver Commitments and the Loans at the time owing to it) (provided, however, that pro rata assignments
shall not be required and each assignment shall be of a uniform, and not varying, percentage of all rights and obligations under
and in respect of any applicable Loan and any related Revolver Commitment) with the prior written consent (such consent not to
be unreasonably withheld or delayed) of:

 

(i)            the
Borrower, provided that no consent of the Borrower shall be required (i) if an Event of Default has occurred
and is continuing and (ii) if such assignment is to a Lender, an Affiliate of a Lender or a Related Fund in respect of a
Lender;

 

(ii)           the
Administrative Agent, provided that no consent of the Administrative Agent shall be required if such assignment is to a
Lender, an Affiliate of a Lender or a Related Fund in respect of a Lender; and

 

(iii)          each
Issuing Bank, provided that no consent of an Issuing Bank shall be required unless such assignment increases the obligation
of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding).

 

(c)          Assignments
shall be subject to the following additional conditions:

 

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(i)            except
in the case of an assignment to a Lender, an affiliate of a Lender or Related Fund or an assignment of the entire remaining amount
of the assigning Lender’s Revolver Commitments or Loans, the amount of the Revolver Commitments or Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5.0 million, unless each of the Borrower and the Administrative
Agent otherwise consent, provided that such amounts shall be aggregated in respect of each Lender and its Affiliates or
Related Funds, if any;

 

(ii)           the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance together with a
processing and recordation fee of $3,500; and

 

(iii)          the
Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire and
all applicable tax forms.

 

(d)          Subject
to acceptance and recording thereof pursuant to clause (f) below and subject to clause (k) below,
from and after the effective date specified in each Assignment and Acceptance the Eligible Assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all
of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but
shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.05 as well as
any Fees accrued for its account and not yet paid). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with clause (g) of this Section 9.04.

 

(e)          The
Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a
copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders,
and the Revolver Commitments of, and principal amount (and stated interest) of the Revolver Loans and the LC Obligations owing
to, each Lender or Issuing Bank, as applicable, pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing
Banks and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by
the Borrower, any Issuing Bank and any Lender (with respect to any entry related to such Lender’s Loans), at any reasonable
time and from time to time upon reasonable prior notice.

 

(f)           Upon
its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an Eligible Assignee, the Eligible
Assignee’s completed Administrative Questionnaire (unless the Eligible Assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in clause (c)(ii) above and any applicable tax forms, and any written consent
to such assignment required by clause (b) above, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register. No assignment, whether or not evidenced by a promissory note, shall
be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this clause (f).

 

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(g)         Any
Lender may, without the consent of, or notice to, the Borrower, any Issuing Bank or the Administrative Agent, sell participations
to one (1) or more banks or other entities (a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its Revolver Commitments and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower,
the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement. Any agreement pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and the other Loan Documents
and to approve any amendment, modification or waiver of any provision of this Agreement and the other Loan Documents; provided
that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver that requires the consent of each Lender directly affected thereby pursuant to Section 9.04(a)(i) or
clauses (i) through (vi) of the first proviso to Section 9.08(b). Subject to paragraph (h) of
this Section 9.04, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15,
2.16 and 2.17 (subject to the requirements and limitations with respect thereto, including the requirements under
Section 2.17(e) (it being understood that the documentation required under Section 2.17(e) shall
be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 9.04. To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 9.06 as though it were a Lender, provided such Participant
shall be subject to Section 2.18(c) as though it were a Lender. Each Lender that sells a participation shall,
acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address
of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Revolver Loans
or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender
shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of
any Participant or any information relating to a Participant’s interest in any Revolver Commitments, Loans, Letters of Credit
or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such
Revolver Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the
United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such
Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes
of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity
as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(h)         A
Participant shall not be entitled to receive any greater payment under Section 2.15, 2.16 or 2.17 than
the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, except to
the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired
the applicable participation.

 

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(i)           Any
Lender may at any time, without the consent of or notice to the Administrative Agent or the Borrower, pledge or assign a security
interest in all or any portion of its rights under this Agreement (other than to a natural person) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section 9.04
shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee (including any
Eligible Assignee) for such Lender as a party hereto.

 

(j)           The
Borrower, upon receipt of written notice from the relevant Lender, agrees to issue Notes to any Lender requiring Notes to facilitate
transactions of the type described in paragraph (d) above.

 

(k)          If
any assignment or participation under this Section 9.04 is made (or attempted to be made) to the extent the Borrower’s
consent is required under the terms of this Section 9.04, to any other Person without the Borrower’s consent,
then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, (A) terminate
the Revolver Commitments of such Lender and repay all obligations of the Borrower owing to such Lender relating to the Loans and
participations held by such Lender or participant as of such termination date (in the case of any participation in any Loan, to
be applied to such participation), or (B) require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in this Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) such Lender shall have received payment of an amount equal to the lesser of par or the amount such
Lender paid for such Loans and participations in LC Disbursements and Protective Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest
and fees) or the Borrower (in the case of all other amounts), (ii) the Borrower shall be liable to such Lender under Section 2.16
if any Eurodollar Loan owing to such Lender is repaid or purchased other than on the last day of the Interest Period relating
thereto, and (iii) such assignment shall otherwise comply with this Section 9.04 (provided that no registration
and processing fee referred to in this Section 9.04 shall be owing in connection with any assignment pursuant to this
paragraph). Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with
an interest) to execute and deliver, on behalf of such Lender, as assignor, any Assignment and Acceptance necessary to effectuate
any assignment of such Lender’s interests hereunder to an assignee as contemplated hereby in the circumstances contemplated
by this Section 9.04(k). Nothing in this Section 9.04(k) shall be deemed to prejudice any rights
or remedies the Borrower may otherwise have at law or equity.

 

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Section 9.05         Expenses;
Indemnity.

 

(a)          The
Borrower agrees to pay within thirty (30) days of demand thereof (together with backup documentation supporting such request)
(i) all reasonable and documented (in summary format) out-of-pocket expenses (including Other Taxes) incurred by the Agents
and Lead Arranger in connection with the preparation of this Agreement and the other Loan Documents, or by the Agents and Lead
Arranger in connection with the syndication of the Revolver Commitments or the administration of this Agreement (including expenses
incurred in connection with due diligence and initial and ongoing Collateral examination to the extent incurred with the reasonable
prior approval of the Borrower and the reasonable and documented (in summary format) out-of-pocket fees, disbursements and charges
for no more than one (1) outside counsel and, if necessary one (1) local counsel in each material jurisdiction where
Collateral is located for such Persons, taken as a whole) or in connection with the administration of this Agreement and any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the Transactions hereby contemplated shall be consummated)
and (ii) all reasonable and documented out-of-pocket expenses incurred by the Agents or Lead Arranger or any Lender in connection
with the enforcement or protection of their rights in connection with this Agreement and the other Loan Documents, in connection
with the Loans made or the Letters of Credit issued hereunder (but limited, in the case of legal fees and expenses, to the actual
reasonable and documented (in summary format) out-of-pocket fees, charges and disbursements of Vinson & Elkins LLP, counsel
for the Administrative Agent and the Lead Arranger, and, if reasonably necessary (x) the reasonable and documented (in summary
format) out-of-pocket fees, charges and disbursements of one (1) local counsel per relevant local jurisdiction and (y) in
the case of an actual or potential conflict of interest, the reasonable and documented (in summary format) out-of-pocket fees,
charges and disbursements of one (1) additional counsel to all affected Persons, taken as a whole).

 

(b)          The
Borrower agrees to indemnify, on a joint and several basis, the Administrative Agent, the Lead Arranger, each Issuing Bank, each
Lender and each of their respective Related Parties, successors and assigns and the directors, trustees, officers, employees,
advisors, controlling Persons and agents of each of the foregoing (each such Person being called an “Indemnitee”)
against, and to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and reasonable and documented
(in summary format) out-of-pocket costs and related expenses (including reasonable and documented (in summary format) out-of-pocket
fees, charges and disbursements of Vinson & Elkins LLP and, if necessary, one (1) local counsel in each relevant
local jurisdiction to the Agents or Lead Arranger, taken as a whole, in each relevant jurisdiction, in the case of an actual or
potential conflict of interest, and one (1) additional counsel to all affected Indemnitees, taken as a whole) incurred by
or asserted against any Indemnitee arising out of, relating to, or as a result of (i) the execution or delivery of this Agreement
or any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto
and thereto of their respective obligations thereunder or the consummation of the Transactions (including the payment of the Transaction
Costs) and the other transactions contemplated hereby, (ii) the use of the proceeds of the Loans or the use of any Letter
of Credit or (iii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or costs or related expenses (x) are determined by a judgment of a court of
competent jurisdiction to have resulted by reason of the gross negligence, bad faith or willful misconduct of, or material breach
by, such Indemnitee, (y) arise out of any claim, litigation, investigation or proceeding brought by such Indemnitee (or its
Related Parties) against another Indemnitee (or its Related Parties) (other than any claim, litigation, investigation or proceeding
brought by or against the Administrative Agent, acting in its capacity as Administrative Agent) that does not involve any act
or omission of the Borrower or any of its Subsidiaries and arises out of disputes among the Lenders and/or their transferees.
The Borrower shall not be liable for any settlement of any proceeding referred to in this Section 9.05 effected without
the Borrower’s written consent (such consent not to be unreasonably withheld or delayed); provided, however,
that the Borrower shall indemnify the Indemnitees from and against any loss or liability by reason of such settlement if the Borrower
was offered the right to assume the defense of such proceeding and did not assume such defense or such proceeding was settled
with the written consent of the Borrower, subject to, in each case, the Borrower’s right in this Section 9.05
to claim an exemption from such indemnity obligations. The Borrower shall indemnify the Indemnitees from and against any final
judgment for the plaintiff in any proceeding referred to in this Section 9.05, subject to the Borrower’s right
in this Section 9.05 to claim an exemption from such indemnity obligations. The Borrower shall not, without the prior
written consent of any Indemnitee, effect any settlement of any pending or threatened proceeding in respect of which such Indemnitee
is a party and indemnity could have been sought hereunder by such Indemnitee unless such settlement (i) includes an unconditional
release of such Indemnitee (and its Related Parties) from all liability or claims that are the subject matter of such proceeding
and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of
any Indemnitee (or its Related Parties). To the extent permitted by Applicable Law, each party hereto hereby waives for itself
(and, in the case of the Borrower, for each other Loan Party) any claim against any Loan Party, any Lender, any Administrative
Agent, any Lender Party, any Lead Arranger, and their respective affiliates, directors, employees, attorneys, agents or sub-agents,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
(whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out
of, in connection with, as a result of, or in any way related to, this Agreement or any Loan Document or any agreement or instrument
contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any Loan or
the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each party hereto (and
in the case of the Borrower on behalf of each other Loan Party) hereby waive, release and agree not to sue upon any such claim
or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor; provided that
nothing contained in this sentence shall limit the Borrower’s indemnity obligations to the extent such special, indirect,
consequential or punitive damages are included in any third party claim in connection with which such indemnified Person is entitled
to indemnification hereunder. The provisions of this Section 9.05 shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment
of any of the Obligations, the termination of the Revolver Commitments, the expiration of any Letters of Credit, the invalidity
or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on
behalf of the Administrative Agent, any Issuing Bank or any Lender. All amounts due under this Section 9.05 shall
be payable on written demand therefor accompanied by reasonable documentation with respect to any reimbursement, indemnification
or other amount requested.

 

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(c)          Except
as expressly provided in Section 9.05(a) with respect to Other Taxes, which shall not be duplicative with any
amounts paid pursuant to Section 2.17, this Section 9.05 shall not apply to Taxes other than Taxes arising
from a non-Tax claim.

 

(d)          Notwithstanding
the foregoing paragraphs in this Section 9.05, if it is found by a final, non-appealable judgment of a court of competent
jurisdiction in any such action, proceeding or investigation that any loss, claim, damage, liability or cost or related expense
of any Indemnitee has resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee (or any of its Related
Parties) or a material breach of the Loan Documents by such Indemnitee (or any of its Related Parties), such Indemnitee will repay
such portion of the reimbursed amounts previously paid to such Indemnitee under this Section 9.05 that is attributable
to expenses incurred in relation to the set or omission of such Indemnitee which is the subject of such finding.

 

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(e)        To
the extent permitted by Applicable Law, neither the Borrower nor any Loan Party shall assert, and the Borrower and each Loan Party
hereby waives, any claim against the Administrative Agent, any Arranger, any Syndication Agent, any Issuing Bank and any Lender,
and any Related Party of any of the foregoing Persons for any Liabilities arising from the use by others of information or other
materials (including, without limitation, any personal data) obtained through telecommunications, electronic or other information
transmission systems (including the Internet).

 

Section 9.06         Right
of Set-off. If an Event of Default shall have occurred and be continuing, upon the written consent of the Administrative
Agent or the Required Lenders, each Lender and each Issuing Bank is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender or such Issuing Bank to or for the credit or the
account of Holdings, the Borrower or any Subsidiary Guarantor (and such Lender or Issuing Bank will provide prompt notice to such
Loan Party) against any of and all the obligations of Holdings or the Borrower now or hereafter existing under this Agreement
or any other Loan Document held by such Lender or such Issuing Bank, irrespective of whether or not such Lender or such Issuing
Bank shall have made any demand under this Agreement or such other Loan Document and although the obligations may be unmatured.
The rights of each Lender and each Issuing Bank under this Section 9.06 are in addition to other rights and remedies
(including other rights of set-off) that such Lender or such Issuing Bank may have. Notwithstanding the foregoing, no amounts
set off from any Loan Party shall be applied to Excluded Swap Obligations of such Loan Party.

 

Section 9.07         Applicable
Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER
LOAN DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF
NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST RECENTLY PUBLISHED AND
IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED, BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”)
AND, AS TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

 

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Section 9.08         Waivers;
Amendment.

 

(a)          No
failure or delay of the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under
any Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Administrative Agent, each Issuing Bank and the Lenders hereunder
and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by Holdings, the Borrower
or any other Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice
or demand on Holdings, the Borrower or any other Loan Party in any case shall entitle such Person to any other or further notice
or demand in similar or other circumstances.

 

(b)          Except
as provided in (x) Section 2.22 with respect to any Revolver Commitment Increase, (y) the definition of
Letter of Credit Increase Event with respect to amendments to Schedule 2.01B and (z) Section 2.14(e) with
respect to the implementation of any Benchmark Replacement Conforming Changes, neither this Agreement nor any other Loan Document
nor any provision hereof or thereof may be waived, amended or modified except (A) in the case of this Agreement, pursuant
to an agreement or agreements in writing entered into by Holdings, the Borrower and the Required Lenders and (B) in the case
of any other Loan Document, pursuant to an agreement or agreements in writing entered into by each party thereto and the Administrative
Agent and consented to by the Required Lenders; provided, however, that no such agreement shall:

 

(i)            decrease
or forgive the principal amount of, or extend the final maturity date of, or decrease the rate of interest on, any Loan or any
LC Disbursement, or extend the stated expiration of any Letter of Credit beyond the Revolver Termination Date, without the prior
written consent of each Lender directly and adversely affected thereby; provided, that (x) consent of Required Lenders
shall not be required for any waiver, amendment or modification contemplated by this clause (i), (y) any amendment
to the Consolidated Fixed Charge Coverage Ratio or the component definitions thereof shall not constitute a reduction in the rate
of interest for purposes of this clause (i) and (z) that waiver or reduction of a post-default increase
in interest shall be effective with the consent of the Required Lenders (and shall not require the consent of each directly and
adversely affected Lender),

 

(ii)            increase
the Revolver Commitment of any Lender (other than with respect to any Revolver Commitment Increase to which such Lender has agreed)
without the prior written consent of such affected Lender (it being understood that waivers or modifications of conditions precedent,
covenants, Defaults or Events of Default or of a mandatory reduction in the aggregate Revolver Commitments shall not constitute
an increase of the Revolver Commitments of any Lender),

 

(iii)          extend
the Revolver Commitment of any Lender or decrease the Unused Line Fees or Issuing Bank Fees without the prior written consent
of such Lender or Issuing Bank, as applicable (it being understood that waivers or modifications of conditions precedent, covenants,
Defaults or Events of Default, mandatory prepayments or of a mandatory reduction in the aggregate Revolver Commitments shall not
constitute an increase or extension of maturity); provided, that (x) consent of Required Lenders shall not be required
for any waiver, amendment or modification contemplated by this clause (iii) and (y) any amendment to the
Consolidated Fixed Charge Coverage Ratio or the component definitions thereof shall not constitute a reduction in the Unused Line
Fees for purposes of this clause (iii),

 

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(iv)          except
to the extent necessary to give effect to the express intentions of this Agreement (including Sections 2.22 and 9.04),
which, in respect of any amendment or modification to effect such express intentions, shall be effective with the consent of the
Required Lenders, amend or modify the provisions of Section 2.18(b) or (c) of this Agreement in a
manner that would by its terms alter the pro rata sharing of payments required thereby, without the prior written consent
of each Lender,

 

(v)           amend
or modify the provisions of Section 7.02, Sections 9.08(a), (b) or (c) or reduce
the voting percentage set forth in the definition of “Required Lenders” or “Supermajority Lenders,” without
the prior written consent of each Lender directly and adversely affected thereby (it being understood that any Revolver Commitment
Increase and additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders
on substantially the same basis as the Revolver Loans and Revolver Commitments are included on the Closing Date),

 

(vi)          (x) release
all or substantially all the Collateral (it being understood that a transaction permitted under Section 6.05 shall
not constitute a release of all or substantially all of the Collateral), or release all or substantially all of the value of the
Guarantees (except as otherwise permitted herein (including in connection with a transaction permitted under Section 6.05)
or in the other Loan Documents) under the Collateral Agreement, unless, in the case of a Subsidiary Guarantor, all or substantially
all the Equity Interests of such Subsidiary Guarantor is sold or otherwise disposed of in a transaction permitted by this Agreement,
without the prior written consent of each Lender or (y) subordinate the Liens of the Administrative Agent under the Security
Documents with respect to Collateral at that time included in the Borrowing Base and/or all or substantially all of the Collateral
(other than, in each case, in respect of Term Loan Priority Collateral in accordance with the provisions of the Loan Documents
as in effect on the date hereof or pursuant to Section 9.17) or subordinate the Obligations hereunder, without the
prior written consent of each Lender,

 

(vii)         without
the prior written consent of the Supermajority Lenders, change the definition of the terms “Availability” or “Borrowing
Base” or any component definition used therein (including, without limitation, the definitions of “Eligible Credit
Card Receivables,” “Eligible Inventory,” and “Eligible In-Transit Inventory”) if, as a result thereof,
the amounts available to be borrowed by the Borrower would be increased; provided that the foregoing shall not limit the
discretion of the Administrative Agent to change, establish or eliminate any Availability Reserve or to add Accounts and Inventory
acquired in a Permitted Business Acquisition to the Borrowing Base as provided herein, or

 

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(viii)        without
the prior written consent of the Supermajority Lenders, increase the percentages and advance rates set forth in the term
 “Borrowing Base” or add any new classes of eligible assets thereto, provided, further, that
no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, an Issuing Bank
hereunder without the prior written consent of the Administrative Agent, such Issuing Bank acting as such at the effective
date of such agreement. Each Lender shall be bound by any waiver, amendment or modification authorized by this Section 9.08
and any consent by any Lender pursuant to this Section 9.08 shall bind any successor or assignee of such Lender.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that (x) the Revolver Commitments of such Lender may not be increased or
extended without the consent of such Lender and (y) the principal and accrued and unpaid interest of such Lender’s
Loans shall not be reduced or forgiven without the consent of such Lender.

 

(c)          Without
the consent of the Syndication Agents or Lead Arranger or Lender or Issuing Bank, the Loan Parties and the Administrative Agent
may (in their respective sole discretion, or shall, to the extent required by any Loan Document) enter into any amendment, modification
or waiver of any Loan Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection,
expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit
of the Secured Parties, or as required by local law to give effect to, or protect any security interest for the benefit of the
Secured Parties, in any property or so that the security interests therein comply with Applicable Law.

 

(d)          Notwithstanding
anything to the contrary contained in this Section 9.08 or any Loan Document, (i) the Borrower and the Administrative
Agent may, without the input or consent of any other Lender, effect amendments to this Agreement and the other Loan Documents
as may be necessary in the reasonable opinion of the Borrower and the Administrative Agent to effect the provisions of Section 2.22,
(ii) if the Administrative Agent and the Borrower have jointly identified an obvious error or any error or omission of a
technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be
permitted to amend such provision and (iii) guarantees, collateral security documents and related documents executed by Holdings
or Subsidiaries in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be
amended, supplemented or waived without the consent of any Lender if such amendment, supplement or waiver is delivered in order
to (x) comply with local law or advice of local counsel, (y) cure ambiguities, omissions, mistakes or defects or (z) cause
such guarantee, collateral security document or other document to be consistent with this Agreement and the other Loan Documents.

 

Section 9.09         Interest
Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the applicable interest rate on any
Loan or participation in any LC Disbursement, together with all fees and charges that are treated as interest under Applicable
Law (collectively, the “Charges”), as provided for herein or in any other document executed in connection herewith,
or otherwise contracted for, charged, received, taken or reserved by any Lender or any Issuing Bank shall exceed the maximum lawful
rate (the “Maximum Rate”) that may be contracted for, charged, taken, received or reserved by such Lender in
accordance with Applicable Law, the rate of interest payable hereunder, together with all Charges payable to such Lender or such
Issuing Bank shall be limited to the Maximum Rate, provided that such excess amount shall be paid to such Lender or such
Issuing Bank on subsequent payment dates to the extent not exceeding the legal limitation.

 

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Section 9.10     Entire
Agreement. This Agreement and the other Loan Documents constitute the entire contract between the parties relative
to the subject matter hereof. Any previous agreement among or representations from the parties or their Affiliates with respect
to the subject matter hereof is superseded by this Agreement and the other Loan Documents. Notwithstanding the foregoing, the
Fee Letter shall survive the execution and delivery of this Agreement and remain in full force and effect. Nothing in this Agreement
or in the other Loan Documents, expressed or implied, is intended to confer upon any party other than the parties hereto and thereto,
and their respective successors and assigns permitted hereunder, any rights, remedies, obligations or liabilities under or by
reason of this Agreement or the other Loan Documents.

 

Section 9.11     WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING
TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED
FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND
THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING
TO THIS SECTION 9.11 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING
TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

 

Section 9.12     Severability.
In the event any one (1) or more of the provisions contained in this Agreement or in any other Loan Document should be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close
as possible to that of the invalid, illegal or unenforceable provisions.

 

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Section 9.13     Counterparts;
Electronic Execution.

 

(a)      This
Agreement may be executed in multiple counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original but all of which, when taken together, shall constitute but one (1) contract, and shall become effective
as provided in Section 9.03.

 

(b)      Delivery
of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any
document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant
to Section 9.01), certificate, request, statement, disclosure or authorization related to this Agreement, any other Loan Document
and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic
Signature transmitted by facsimile, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature
page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such
Ancillary Document, as applicable. The words “execution,” “signed,” “signature,” “delivery,”
and words of like import in or relating to this Agreement, any other Loan Document, any assignment, and/or any Ancillary Document
shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries
by facsimile, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of
which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof
or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative
Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved
by it; provided, further, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept
any Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely on such Electronic Signature
purportedly given by or on behalf of the Borrower or any other Loan Party without further verification thereof and without any
obligation to review the appearance or form of any such Electronic Signature and (ii) upon the request of the Administrative
Agent or any Lender, any Electronic Signature shall be promptly followed by a manually executed counterpart. Without limiting the
generality of the foregoing, the Borrower and each Loan Party hereby (A) agrees that, for all purposes, including without
limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among
the Administrative Agent, the Lenders, the Borrower and the Loan Parties, Electronic Signatures transmitted by facsimile, emailed
pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images
of this Agreement, any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability
as any paper original, (B) the Administrative Agent and each of the Lenders may, at its option, create one or more copies
of this Agreement, any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format,
which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and
all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and
enforceability as a paper record), (C) waives any argument, defense or right to contest the legal effect, validity or enforceability
of this Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this
Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto
and (D) waives any claim against any Lender Party for any Liabilities arising solely from the Administrative Agent’s
and/or any Lender’s reliance on or use of Electronic Signatures and/or transmissions by facsimile, emailed pdf. or any other
electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of
the failure of the Borrower and/or any Loan Party to use any available security measures in connection with the execution, delivery
or transmission of any Electronic Signature.

 

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Section 9.14     Headings.
Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part
of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

Section 9.15     Jurisdiction;
Consent to Service of Process.

 

(a)      Each
of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby 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 or, to the extent permitted
by 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 Agreement shall affect any right that any Lender, the Administrative Agent or any Issuing Bank may otherwise have to bring
any action or proceeding relating to this Agreement or the other Loan Documents against Holdings, the Borrower or any Loan Party
or their properties in the courts of any jurisdiction.

 

(b)     Each
of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement or the other Loan Documents in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

 

(c)     Each
of the parties hereto agrees that service of all process in any such proceeding in any such court may be made by registered or
certified mail, return receipt requested at its address provided in Section 9.01 agrees that service as so provided
in is sufficient to confer personal jurisdiction over the applicable credit party in any such proceeding in any such court, and
otherwise constitutes effective and binding service in every respect; and agrees that agents and lenders retain the right to serve
process in any other manner permitted by law or to bring proceedings against any credit party in the courts of any other jurisdiction.

 

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Section 9.16     Confidentiality.
Each of the Lenders, each Issuing Bank and each of the Agents agrees that it shall maintain in confidence any information relating
to Holdings, the Borrower and the other Loan Parties furnished to it by or on behalf of Holdings, the Borrower or the other Loan
Parties (other than information that (a) has become generally available to the public other than as a result of a disclosure
by any such party, (b) was already in possession on a non-confidential basis for a person not known to the recipient to be
bound by confidentiality obligations to Parent or any Subsidiary thereof or has been independently developed by such Lender, such
Issuing Bank or such Agent without violating this Section 9.16 or relying on any such information, (c) was available
to such Lender, such Issuing Bank or such Agent from a third party having, to such Person’s knowledge, no obligations of
confidentiality to Holdings, the Borrower or any other Loan Party) and shall not reveal the same other than to its directors,
trustees, officers, employees and advisors with a need to know or to any Person that approves or administers the Revolver Loans
on behalf of such Lender (so long as each such Person shall have been instructed to keep the same confidential in accordance with
this Section 9.16 and such Lender, such Issuing Bank and such Agent shall be responsible for its Affiliates’
compliance with this Section except to the extent such Affiliate shall sign a written confidentiality agreement in favor
of the Borrower), except: (i) to the extent necessary to comply with law or any legal process or the requirements of any
Governmental Authority, self-regulatory authorities (including the National Association of Insurance Commissioners) or of any
securities exchange on which securities of the disclosing party or any affiliate of the disclosing party are listed or traded
(in which case such Lender, such Issuing Bank or such Agent will promptly notify the Borrower, in advance, to the extent permitted
by Applicable Law or the rules governing the process requiring such disclosure (except with respect to any routine or ordinary
course audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination
or regulatory authority) and shall use its commercially reasonable efforts to ensure that any such information so disclosed is
accorded confidential treatment), (ii) as part of the reporting or review procedures to, or examinations by, Governmental
Authorities or self-regulatory authorities, including the National Association of Insurance Commissioners or the National Association
of Securities Dealers, Inc., (iii) to its parent companies, affiliates, auditors, assignees, transferees and participants
(so long as each such Person shall have been instructed to keep the same confidential in accordance with provisions not less restrictive
than this Section 9.16 and such Lender, such Issuing Bank and such Agent shall be responsible for its Affiliates’
compliance with this Section), (iv) in order to enforce its rights under any Loan Document in a legal proceeding (in which
case it shall use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment),
(v) to any pledgee under Section 9.04(d) or any other existing or prospective assignee of, or existing or
prospective Participant in, any of its rights under this Agreement (so long as such Person shall have been instructed to keep
the same confidential in accordance with this Section 9.16 or other provisions at least as restrictive as this Section 9.16),
(vi) to any direct or indirect contractual counterparty in Swap Agreements or such contractual counterparty’s professional
advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound
by the provisions of this Section 9.16), and (vii) with the consent of the Borrower. In addition, each Agent
and each Lender may disclose the existence of this Agreement and the information about this Agreement to market data collectors,
similar services providers to the lending industry, and service providers to the Agents and the Lenders in connection with the
administration and management of this Agreement, the other Loan Documents and any Swap Agreement to which a Lender Party is a
party.

 

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Section 9.17     Release
of Liens and Guarantees. In the event that any Loan Party conveys, sells, assigns, transfers or otherwise disposes
of any assets or all of the Equity Interests of any Subsidiary Guarantor to a Person that is not (and is not required to become)
a Loan Party in each case in a transaction expressly permitted by Section 6.05, the Administrative Agent shall promptly
(and the Lenders hereby authorize the Administrative Agent to) take such action and execute any such documents as may be reasonably
requested by Holdings or the Borrower and at the Borrower’s expense to release any Liens created by any Loan Document in
respect of such Equity Interests or assets, and, in the case of a disposition of all of the Equity Interests of any Subsidiary
Guarantor in a transaction expressly permitted by Section 6.05, terminate such Subsidiary Guarantor’s obligations
under its Guarantee. Any representation, warranty or covenant contained in any Loan Document relating to any such Equity Interests,
asset or subsidiary of Holdings shall no longer be deemed to be made once such Equity Interests or asset is so conveyed, sold,
leased, assigned, transferred or disposed of. At the request of the Borrower, the Administrative Agent shall promptly (and the
Lenders hereby authorize the Administrative Agent to) (i) subordinate any Lien granted to the Administrative Agent (or any
sub-agent or collateral agent) under any Loan Document to the holder of any Lien on such property that is permitted by Sections 6.02(c) (solely
in the case of Liens securing Capital Lease Obligations and purchase money Indebtedness), (i), (j), and (aa)
and (ii) enter into intercreditor arrangements contemplated by (or amendments to the Security Documents to effect the
arrangement contemplated by) Sections 6.01(g), (j) and (y), Sections 6.02(b), (c) and
(y), and the definition of “Permitted Refinancing Indebtedness.”

 

Section 9.18     USA
PATRIOT Act. Each Lender hereby notifies the Loan Parties that pursuant to the requirements of the USA PATRIOT Act,
it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and
address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the USA
PATRIOT Act.

 

Section 9.19     Marshalling;
Payments Set Aside. Neither any Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Loan
Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Loan Party makes a
payment or payments to the Administrative Agent or the Lenders (or to the Administrative Agent, on behalf of the Lenders), or
any Agent or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the
proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, and/or required
to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or
any equitable cause for any reason, then, to the extent of such recovery, the obligation or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and
effect as if such payment or payments had not been made or such enforcement or setoff had not occurred. The provisions of this
Section 9.19 shall be and remain effective notwithstanding any contrary action which may have been taken by the Administrative
Agent or any Lender in reliance upon such payment or application of proceeds. The provisions of this Section 9.19
shall survive the termination of this Agreement.

 

Section 9.20     Obligations
Several; Independent Nature of Lenders’ Rights. The obligations of Lenders hereunder are several and no Lender
shall be responsible for the obligations or Revolver Commitment of any other Lender hereunder. Nothing contained herein or in
any other Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender
shall be a separate and independent debt, and each Lender shall be entitled to protect and enforce its rights arising out hereof
and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

 

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Section 9.21     Acknowledgement
Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise,
for Swap Agreements or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and
each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution
power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution
Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding
that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or
of the United States or any other state of the United States):

 

In the event a Covered
Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S.
Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and
obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC
or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under
the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights
in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a
BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under
the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such
Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special
Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the
United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect
to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit
Support.

 

Section 9.22     Acknowledgements.
Each Loan Party hereby acknowledges and agrees that (a) no fiduciary, advisory or agency relationship between the Loan Parties
and the Lender Parties is intended to be or has been created in respect of any of the transactions contemplated by this Agreement
or the other Loan Documents, irrespective of whether the Lender Parties have advised or are advising the Loan Parties on other
matters, and the relationship between the Lender Parties, on the one hand, and the Loan Parties, on the other hand, in connection
herewith and therewith is solely that of creditor and debtor, (b) the Lender Parties, on the one hand, and the Loan Parties,
on the other hand, have an arm’s length business relationship that does not directly or indirectly give rise to, nor do
the Loan Parties rely on, any fiduciary duty to the Loan Parties or their affiliates on the part of the Lender Parties, (c) the
Loan Parties are capable of evaluating and understanding, and the Loan Parties understand and accept, the terms, risks and conditions
of the transactions contemplated by this Agreement and the other Loan Documents, (d) the Loan Parties have been advised that
the Lender Parties are engaged in a broad range of transactions that may involve interests that differ from the Loan Parties’
interests and that the Lender Parties have no obligation to disclose such interests and transactions to the Loan Parties, (e) the
Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent the Loan Parties have deemed
appropriate in the negotiation, execution and delivery of this Agreement and the other Loan Documents, (f) each Lender Party
has been, is, and will be acting solely as a principal and, except as otherwise expressly agreed in writing by it and the relevant
parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Loan Parties, any of their affiliates
or any other Person, (g) none of the Lender Parties has any obligation to the Loan Parties or their affiliates with respect
to the transactions contemplated by this Agreement or the other Loan Documents except those obligations expressly set forth herein
or therein or in any other express writing executed and delivered by such Lender Party and the Loan Parties or any such affiliate
and (h) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lender Parties or among the Loan Parties and the Lender Parties.

 

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Section 9.23     Lender
Action. Notwithstanding anything to the contrary contained herein or in any other Loan Document, (i) the authority
to enforce rights and remedies hereunder and under the other Security Documents against the Loan Parties or any of them shall
be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained
exclusively by, the Administrative Agent for the benefit of the Lenders and the Issuing Banks, (ii) no Secured Party shall
have any right individually to realize upon any of the Collateral under any Security Document or to enforce the Guarantee, it
being understood and agreed that all powers, rights and remedies under the Security Documents may be exercised solely by the Administrative
Agent for the benefit of the Secured Parties in accordance with the terms thereof and (iii) in the event of a foreclosure
by the Administrative Agent on any of the Collateral pursuant to a public or private sale, the Administrative Agent or any Lender
may be the purchaser of any or all of such Collateral at any such sale and the Administrative Agent, as agent for and representative
of the Lenders (but not any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall
otherwise agree in writing), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price
for all or any portion of the Collateral sold in any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any Collateral payable by the Administrative Agent at such sale.

 

Section 9.24     Judgment
Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or
any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance
with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business
Day preceding that on which final judgment is given. The obligation of the Borrower in respect of any such sum due from it to
the Administrative Agent or any Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency
(the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business
Day following receipt by the Administrative Agent or such Lender, as the case may be, of any sum adjudged to be so due in the
Judgment Currency, the Administrative Agent or such Lender, as the case may be, may in accordance with normal banking procedures
purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than
the sum originally due to the Administrative Agent or any Lender from the Borrower in the Agreement Currency, the Borrower agrees,
as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or such Lender, as the case
may be, against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent or any Lender in such currency, the Administrative Agent or such Lender, as the case may be, agrees to return
the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under Applicable Law).

 

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Section 9.25     Acknowledgement
and Consent to Bail-In of Affected Financial Institutions. Notwithstanding anything to the contrary in any Loan Document
or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability
of any Lender or Issuing Bank that is an Affected Financial Institution arising under any Loan Document may be subject to the
Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees
to be bound by:

 

(a)          the
application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any Lender or Issuing Bank that is an Affected Financial Institution; and

 

(b)          the
effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)       a
reduction in full or in part or cancellation of any such liability;

 

(ii)      a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution,
its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other
instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

(iii)     the
variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable
Resolution Authority.

 

Section 9.26     Intercreditor
Agreement.

 

(a)          This
Agreement and the other Loan Documents are subject to the terms and conditions set forth in the Intercreditor Agreement in all
respects and, in the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the
Intercreditor Agreement shall govern. Notwithstanding anything herein to the contrary, the lien and security interest granted
to the Administrative Agent or the Term Loan Agent, as applicable, pursuant to any Loan Document or Term Loan Document, and the
exercise of any right or remedy in respect of the Collateral by the Administrative Agent or the Term Loan Agent, as applicable
hereunder, under any other Loan Document, or under the Term Loan Agreement and any other agreement entered into in connection
therewith are subject to the provisions of the Intercreditor Agreement and in the event of any conflict between the terms of the
Intercreditor Agreement, this Agreement, any other Loan Document, the Term Loan Agreement and any other agreement entered into
in connection therewith, the terms of the Intercreditor Agreement shall govern and control with respect to the exercise of any
such right or remedy or the Loan Parties’ covenants and obligations.

 

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(b)          Each
Lender, in its capacity as a Lender and in its capacity as a Secured Swap Provider and/or a Secured Bank Product Provider, as applicable,
and each other Secured Swap Provider and Secured Bank Product Provider by its acceptance of the benefits of the Security Documents
creating Liens to secure the Secured Obligations, agrees that:

 

(i)       acknowledges
that it has received a copy of the Intercreditor Agreement and is satisfied with the terms and provisions thereof;

 

(ii)      authorizes
and instructs the Administrative Agent to (A) enter into the Intercreditor Agreement, as Administrative Agent and on behalf
of such Lender, (B) exercise all of the Administrative Agent’s rights and to comply with all of their respective obligations
under the Intercreditor Agreement and to take all other actions necessary to carry out the provisions and intent thereof and (C) take
actions on its behalf in accordance with the terms of the Intercreditor Agreement;

 

(iii)     agrees
that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement as if it was a signatory
thereto;

 

(iv)     consents
to the treatment of Liens to be provided for under the Intercreditor Agreement;

 

(v)      authorizes
and directs the Administrative Agent to execute and deliver, in each case on its behalf and without any further consent or authorization
from it, any amendments, supplements or other modifications of the Intercreditor Agreement that the Borrower may from time to time
request to give effect to any incurrence, amendment, or refinancing of any Indebtedness incurred pursuant to Section 6.01(j);
provided that, any such amendments, supplements or modifications, other than those that are corrective, technical or conforming,
shall require the consent of the Required Lenders; and

 

(vi)     agrees
that no such Lender, Secured Bank Product Provider, Secured Swap Provider or any other beneficiary of a Lien granted pursuant to
a Security Document, shall have any right of action whatsoever against the Administrative Agent as a result of any action taken
by the Administrative Agent pursuant to this Section 9.26(b) or in accordance with the terms of the Intercreditor
Agreement.

 

The provisions of this Section 9.26(b) shall
apply to each Issuing Bank, all Lenders, all Secured Swap Providers and all Secured Bank Products Providers and their respective
successors and assigns.  The provisions of this Section 9.26(b) are solely for the benefit of the Administrative
Agent, the Issuing Banks, the Lenders, the Secured Swap Providers and the Secured Bank Product Providers, and neither the Holdings,
the Borrower nor any Subsidiary thereof shall have rights as a third party beneficiary of any such provisions.

 

[Signature Pages Follow]

 

    168

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first
written above.

 

	 	TUESDAY MORNING, INC.
	 	TUESDAY MORNING CORPORATION
	 	TMI HOLDINGS, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Steven R. Becker
	 	 	Name:	Steven R. Becker
	 	 	Title:	Chief Executive Officer and President

 

Signature
Page to Credit Agreement

 

    

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as Lender and as Administrative Agent
	 	 	 	 
	 	By:	/s/ Jon Eckhouse
	 	 	Name:	Jon Eckhouse
	 	 	Title:	Authorized Officer

 

Signature
Page to Credit Agreement

 

    

     

    

 

	 	WELLS FARGO BANK, N.A.,
	 	as a Lender and as Syndication Agent
	 	 	 	 
	 	By:	/s/ Jai Alexander
	 	 	Name:	Jai Alexander
	 	 	Title:	Director

 

Signature
Page to Credit Agreement

 

    

     

    

 

	 	BANK OF AMERICA, N.A.,
	 	as a Lender and as Syndication Agent
	 	 	 	 
	 	By:	/s/ Andrew Cerussi
	 	 	Name:	Andrew Cerussi
	 	 	Title:	Senior Vice President

 

Signature
Page to Credit Agreement

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