Document:

EXHIBIT 10.5

 

 

 

SECOND
LIEN collateral AGREEMENT

 

among

 

DIFFERENTIAL BRANDS GROUP INC.,

 

certain of its Subsidiaries

 

and

 

U.S.
BANK NATIONAL ASSOCIATION,

as Second Lien Collateral Agent

 

Dated as of October 29,
2018

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	DEFINED TERMS	1
	 	 	 
	1.1	Definitions	1
	1.2	Other Definitional Provisions	7
	 	 	 
	Section 2.	GRANT OF SECURITY INTEREST;  CONTINUING LIABILITY UNDER COLLATERAL	8
	 	 	 
	Section 3.	REPRESENTATIONS AND WARRANTIES	9
	 	 	 
	3.1	[Reserved].	9
	3.2	Title; No Other Liens	10
	3.3	Valid, Perfected Second Priority Liens	10
	3.4	Name; Jurisdiction of Organization, Etc.	11
	3.5	[Reserved]	11
	3.6	Special Collateral; Excluded Collateral	11
	3.7	Investment Property	11
	3.8	[Reserved].	12
	3.9	Intellectual Property	12
	3.10	[Reserved].	13
	3.11	Letter of Credit Rights	13
	3.12	Commercial Tort Claims	13
	 	 	 
	Section 4.	COVENANTS	14
	 	 	 
	4.1	[Reserved].	14
	4.2	Delivery and Control of Instruments, Chattel Paper, Negotiable Documents, Investment Property and Deposit Accounts	14
	4.3	Maintenance of Perfected Security Interest; Further Documentation	15
	4.4	[Reserved].	16
	4.5	[Reserved]	16
	4.6	Investment Property	16
	4.7	Voting and Other Rights with Respect to Pledged Securities	17
	4.8	[Reserved]	18
	4.9	Intellectual Property	18
	4.10	[Reserved]	20
	4.11	Government Receivables	20
	4.12	Letter of Credit Rights	20
	4.13	Commercial Tort Claims	20
	 	 	 
	Section 5.	REMEDIAL PROVISIONS	20
	 	 	 
	5.1	Certain Matters Relating to Receivables	20
	5.2	Communications with Obligors	21

 

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	 	 	Page
	 	 	 
	5.3	Proceeds to be Turned Over To Second Lien Collateral Agent	22
	5.4	Application of Proceeds	22
	5.5	Code and Other Remedies	23
	5.6	Effect of Securities Laws	25
	5.7	Deficiency	25
	 	 	 
	Section 6.	POWER OF ATTORNEY	25
	 	 	 
	6.1	Second Lien Collateral Agent’s Appointment as Attorney-in-Fact, Etc.	25
	6.2	Authorization of Financing Statements	27
	6.3	Further Assurances	27
	 	 	 
	Section 7.	Lien absolute; waiver of suretyship defenses	28
	 	 	 
	7.1	Lien Absolute, Waivers	28
	 	 	 
	Section 8.	the Second Lien Collateral Agent	29
	 	 	 
	8.1	Authority of Second Lien Collateral Agent	29
	8.2	Duty of Second Lien Collateral Agent	30
	8.3	Exculpation of the Second Lien Collateral Agent	30
	8.4	Delegation of Duties.	32
	8.5	No Individual Foreclosure, Etc	32
	8.6	Collateral Agent	33
	 	 	 
	Section 9.	MISCELLANEOUS	33
	 	 	 
	9.1	Amendments in Writing	33
	9.2	Notices	33
	9.3	No Waiver by Course of Conduct; Cumulative Remedies	33
	9.4	Enforcement Expenses; Indemnification	33
	9.5	Successors and Assigns	34
	9.6	Set-Off	34
	9.7	Counterparts	34
	9.8	Severability	34
	9.9	Section Headings	34
	9.10	Integration/Conflict	35
	9.11	GOVERNING LAW	35
	9.12	Submission to Jurisdiction; Waivers	35
	9.13	Acknowledgments	36
	9.14	Additional Grantors	36
	9.15	Releases	36
	9.16	Waiver of Jury Trial	37
	 	 	 
	SCHEDULE 1	Description of Pledged Investment Property	2-1

 

    	 	ii	 

     

    

 

	 	 	Page
	 	 	 
	SCHEDULE 2	Filings and Other Actions Required to Perfect Security Interests	3-1
	SCHEDULE 3	Exact Legal Name, Location of Jurisdiction of Organization and  Chief Executive Office	4-1
	SCHEDULE 4	Location of Inventory and Equipment	5-1
	SCHEDULE 5	Location of Inventory and Equipment (with Bailees, Warehouseman or Similar Parties)	6-1
	SCHEDULE 6	Government Receivables	7-1
	SCHEDULE 7	Copyrights; Patents; Trademarks; Intellectual Property Licenses; Other Intellectual Property	8-1
	SCHEDULE 8	Vehicles	9-1
	SCHEDULE 9	Letter of Credit Rights	10-1
	SCHEDULE 10	Commercial Tort Claims	11-1
	EXHIBIT A	Form of Uncertificated Securities Control Agreement	A-1
	EXHIBIT B-1	Form of Copyright Security Agreement	EXHIBIT B-1
	EXHIBIT B-2	Form of Patent Security Agreement	EXHIBIT B-2
	EXHIBIT B-3	Form of Trademark Security Agreement	EXHIBIT B-3
	ANNEX 1	Assumption Agreement	ANNEX 1-1

 

    	 	iii	 

     

    

 

SECOND LIEN COLLATERAL AGREEMENT,
dated as of October 29, 2018, among each of the signatories hereto designated as a Grantor
on the signature pages hereto (together with any other entity that may become a party hereto as a Grantor as provided herein, each
a “Grantor” and collectively, the “Grantors”), and U.S. BANK NATIONAL ASSOCIATION, as Second
Lien Collateral Agent (in such capacity and together with its permitted successors and assigns in such capacity, the “Second
Lien Collateral Agent”) for (i) the banks and other financial institutions or entities (the “Lenders”)
from time to time parties to the Second Lien Credit Agreement, dated as of the date hereof
(as amended, restated, supplemented or otherwise modified or replaced from time to time, the “Credit Agreement”),
among DIFFERENTIAL BRANDS GROUP INC., a Delaware corporation (the “Borrower”), the Lenders, U.S. Bank National
Association as Administrative Agent, the Second Lien Collateral Agent and the other Secured Parties (as hereinafter defined).

 

WITNESSETH:

 

WHEREAS, pursuant to the
Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to
the conditions set forth therein;

 

WHEREAS, the Borrower is
a member of an affiliated group of companies that includes each other Grantor;

 

WHEREAS, the Borrower and
the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from
the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition
precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement
that the Grantors shall have executed and delivered this Agreement to the Second Lien Collateral Agent for the benefit of the Secured
Parties.

 

NOW, THEREFORE, in consideration
of the premises and to induce the Administrative Agent, the Second Lien Collateral Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Grantor hereby agrees with the Second
Lien Collateral Agent, for the benefit of the Secured Parties, as follows:

 

Section
1.     DEFINED TERMS

 

1.1          Definitions.
(a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them
in the Credit Agreement, and the following terms which are defined in the UCC are used herein as so defined (and if defined in
more than one article of the UCC shall have the meaning specified in Article 9 thereof): Accounts, Account Debtor, As-Extracted
Collateral, Authenticate, Certificated Security, Chattel Paper, Commodity Account, Commodity Contract, Commodity Intermediary,
Documents, Electronic Chattel Paper, Entitlement Order, Equipment, Farm Products, Financial Asset, Fixtures, Goods, Health-Care-Insurance
Receivable, Instruments, Inventory, Letter of Credit Rights, Manufactured Homes, Money, Payment Intangibles, Securities Account,
Securities Intermediary, Security, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and Uncertificated Security.

 

    	 	1-1	 

     

    

 

(b)          The
following terms shall have the following meanings:

 

“After-Acquired
Intellectual Property” shall have the meaning set forth in Section 4.9(c).

 

“Agreement”
shall mean this Second Lien Collateral Agreement, as the same may be amended, restated, supplemented or otherwise modified from
time to time.

 

“Bankruptcy Proceeding”
means: (a) any voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to any Guarantor; (b) any other
voluntary or involuntary insolvency, reorganization or Bankruptcy Case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding with respect to any Guarantor or with respect to a material portion of their respective assets;
(c) any liquidation, dissolution, reorganization or winding up of any Guarantor whether voluntary or involuntary and whether or
not involving insolvency or bankruptcy; or (d) any assignment for the benefit of creditors or any other marshaling of assets and
liabilities of any Guarantor.

 

“Collateral”
shall have the meaning set forth in Section 2; provided that, for the avoidance of doubt, in no event shall any Excluded
Assets constitute “Collateral”.

 

“Collateral Account”
shall mean (i) any collateral account established by the Second Lien Collateral Agent as provided in Section 5.1 or 5.3 and
(ii) any cash collateral account established as provided in the Credit Agreement.

 

“Copyright Licenses”
shall mean all written agreements, licenses and covenants providing for the grant to or from a Grantor of any right in or to any
Copyright or otherwise providing for a covenant not to sue for infringement or other violation of any Copyright (including, without
limitation, those listed on Schedule 7).

 

“Copyrights”
shall mean, with respect to any Grantor, all of such Grantor’s right, title and interest in and to all works of authorship
and all intellectual property rights therein, all United States and foreign copyrights (whether or not the underlying works of
authorship have been published), including but not limited to copyrights in software and databases, all designs (including but
not limited to all industrial designs, “Protected Designs” within the meaning of 17 U.S.C. 1301 et. Seq. and Community
designs), and all “Mask Works” (as defined in 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered,
and with respect to any and all of the foregoing: (i) all registrations and applications for registration thereof including, without
limitation, the registrations and applications listed on Schedule 7, (ii) all extensions, renewals, and restorations thereof,
(iii) all rights to sue or otherwise recover for any past, present and future infringement or other violation thereof, (iv) all
Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments, claims, damages and proceeds
of suit now or hereafter due and/or payable with respect thereto, and (v) all other rights of any kind accruing thereunder or pertaining
thereto throughout the world.

 

“Credit Agreement”
shall have the meaning set forth in the preamble hereto.

 

    	 	2	 

     

    

 

“Deposit Account”
shall mean all “deposit accounts” as defined in Article 9 of the UCC and all other accounts maintained with any financial
institution (other than Securities Accounts or Commodity Accounts), and shall include, without limitation, all of the accounts
listed on Schedule 1 hereto under the heading “Deposit Accounts” together, in each case, with all funds held
therein and all certificates or instruments representing any of the foregoing.

 

“Discharge of the
Secured Obligations” shall mean and shall have occurred upon termination of the Commitments and payment in full of all
Secured Obligations (other than contingent indemnification obligations).

 

“General Intangibles”
shall mean all “general intangibles” as such term is defined in Section 9-102(a)(42) of the UCC and, in any event,
shall include, without limitation, with respect to any Grantor, all rights of such Grantor to receive any tax refunds, all hedge
agreements, contracts, agreements, instruments and indentures and all licenses, permits, concessions, franchises and authorizations
issued by Governmental Authorities in any form, and portions thereof, to which such Grantor is a party or under which such Grantor
has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same may from time
to time be amended, supplemented, replaced or otherwise modified, including, without limitation, (i) all rights of such Grantor
to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of such Grantor to receive
proceeds of any insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising
thereunder, and (iv) all rights of such Grantor to terminate and to perform, compel performance and to exercise all remedies thereunder.

 

“Guarantor”
has the meaning set forth in the Guaranty Agreement.

 

“Insurance”
shall mean all insurance policies covering any or all of the Collateral (regardless of whether the Second Lien Collateral Agent
is the loss payee thereof).

 

“Intellectual Property”
shall mean, with respect to any Grantor, the collective reference to all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, Copyrights,
Copyright Licenses, Patents, Patent Licenses, Trademarks, Trademark Licenses, Trade Secrets and Trade Secret Licenses, and all
rights to sue or otherwise recover for any past, present and future infringement, dilution, misappropriation, or other violation
or impairment thereof, including the right to receive all Proceeds therefrom, including without limitation license fees, royalties,
income payments, claims, damages and proceeds of suit, now or hereafter due and/or payable with respect thereto.

 

“Intellectual Property
Security Agreements” shall mean, collectively, the Copyright Security Agreement substantially the form of Exhibit
B-1, the Patent Security Agreement substantially in the form of Exhibit B-2, and the Trademark Security Agreement substantially
in the form of Exhibit B-3.

 

“Intercompany Note”
shall mean any promissory note evidencing loans made by any Grantor to the Borrower or any of its Subsidiaries.

 

    	 	3	 

     

    

 

“Investment Property”
shall mean the collective reference to (i) all “investment property” as such term is defined in Section 9-102(a)(49)
of the UCC including, without limitation, all Certificated Securities and Uncertificated Securities, all Security Entitlements,
all Securities Accounts, all Commodity Contracts and all Commodity Accounts (other than any Excluded Assets), (ii) all security
entitlements, in the case of any United States Treasury book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the
case of any United States federal agency book-entry securities, as defined in the corresponding United States federal regulations
governing such book-entry securities, and (iii) whether or not constituting “investment property” as so defined,
all Pledged Notes, all Pledged Equity Interests, all Pledged Security Entitlements and all Pledged Commodity Contracts.

 

“Issuers”
shall mean the collective reference to each issuer of Pledged Equity Interests.

 

“Material Intellectual
Property” shall mean any Intellectual Property included in the Collateral that is material to the business of any Grantor
or is otherwise of material value.

 

“Material IP License”
shall mean any Copyright License, Patent License or Trademark License that is material to the business of any Grantor or otherwise
of material value.

 

“Obligations”
shall mean the “Obligations” as defined in the Credit Agreement.

 

“Patent Licenses”
shall mean all written agreements, licenses and covenants providing for the grant to or from a Grantor of any right in or to any
Patent or otherwise providing for a covenant not to sue for infringement or other violation of any Patent (including, without limitation,
those listed on Schedule 7).

 

“Patents”
shall mean, with respect to any Grantor, all of such Grantor’s right, title and interest in and to all patentable inventions
and designs, all United States, foreign, and multinational patents, certificates of invention, and similar industrial property
rights, and applications for any of the foregoing, including, without limitation, (i) each patent and patent application listed
on Schedule 7, (ii) all reissues, substitutes, divisions, continuations, continuations-in-part, extensions, renewals, and
reexaminations thereof, (iii) all inventions and improvements described and claimed therein, (iv) all rights to sue or otherwise
recover for any past, present and future infringement or other violation thereof, (v) all Proceeds of the foregoing, including,
without limitation, license fees, royalties, income, payments, claims, damages, proceeds of suit and other payments now or hereafter
due and/or payable with respect thereto, and (vi) all other rights accruing thereunder or pertaining thereto throughout the world.

 

“Pledged Commodity
Contracts” shall mean all Commodity Contracts listed on Schedule 1 and all other Commodity Contracts to which
any Grantor is party from time to time.

 

“Pledged Debt Securities”
shall mean all debt securities now owned or hereafter acquired by any Grantor, including, without limitation, the debt securities
listed on Schedule 1, together with any other certificates, options, rights or security entitlements of any nature whatsoever
in respect of the debt securities of any Person that may be issued or granted to, or held by, any Grantor while this Agreement
is in effect.

 

    	 	4	 

     

    

 

“Pledged Equity
Interests” shall mean all Equity Interests, and shall include Pledged LLC Interests, Pledged Partnership Interests and
Pledged Stock; provided, however, that in no event shall “Pledged Equity Interests” include any Excluded Assets.

 

“Pledged LLC Interests”
shall mean all membership interests and other interests now owned or hereafter acquired by any Grantor in any limited liability
company including, without limitation, all limited liability company interests listed on Schedule 1 hereto under the heading
“Pledged LLC Interests” and the certificates, if any, representing such limited liability company interests and any
interest of such Grantor on the books and records of such limited liability company and any securities entitlements relating thereto
and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such limited liability
company interests and any other warrant, right or option or other agreement to acquire any of the foregoing, all management rights,
all voting rights, any interest in any capital account of a member in such limited liability company, all rights as and to become
a member of the limited liability company, all rights of the Grantor under any shareholder or voting trust agreement or similar
agreement in respect of such limited liability company, all of the Grantor’s right, title and interest as a member to any
and all assets or properties of such limited liability company, and all other rights, powers, privileges, interests, claims and
other property in any manner arising out of or relating to any of the foregoing; provided, however, that Pledged LLC Interests
shall not include any Excluded Assets.

 

“Pledged Notes”
shall mean all promissory notes now owned or hereafter acquired by any Grantor including, without limitation, those listed on Schedule
1 and all the Intercompany Notes.

 

“Pledged Partnership
Interests” shall mean all partnership interests and other interests now owned or hereafter acquired by any Grantor in
any general partnership, limited partnership, limited liability partnership or other partnership including, without limitation,
all partnership interests listed on Schedule 1 hereto under the heading “Pledged Partnership Interests” and
the certificates, if any, representing such partnership interests, and any interest of such Grantor on the books and records of
such partnership and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property
or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such
partnership interests and any other warrant, right or option to acquire any of the foregoing, all management rights, all voting
rights, any interest in any capital account of a partner in such partnership, all rights as and to become a partner of such partnership,
all of the Grantor’s rights, title and interest as a partner to any and all assets or properties of such partnership, and
all other rights, powers, privileges, interests, claims and other property in any manner arising out of or relating to any of the
foregoing; provided, however, that Pledged Partnership Interests shall not include any Excluded Assets.

 

“Pledged Securities”
shall mean the collective reference to the Pledged Debt Securities, the Pledged Notes and the Pledged Equity Interests regardless
of whether constituting Securities under the UCC.

 

“Pledged Security
Entitlements” shall mean all security entitlements with respect to the financial assets listed on Schedule 1
and all other security entitlements of any Grantor.

 

    	 	5	 

     

    

 

“Pledged Stock”
shall mean all shares of capital stock now owned or hereafter acquired by such Grantor, including, without limitation, all shares
of capital stock described on Schedule 1 hereto under the heading “Pledged Stock”, and the certificates, if
any, representing such shares and any interest of such Grantor in the entries on the books of the Issuer of such shares and all
dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares and any other warrant,
right or option to acquire any of the foregoing; provided, however, that Pledged Stock shall not include any Excluded
Assets.

 

“Proceeds”
shall mean all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC and, in any event, shall
include, without limitation, all dividends or other income from the Pledged Securities, collections thereon and distributions or
payments with respect thereto.

 

“Receivable”
shall mean all Accounts and any other right to payment for goods or other property sold, leased, licensed or otherwise disposed
of or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper or classified as a Payment
Intangible and whether or not it has been earned by performance. References herein to Receivables shall include any Supporting
Obligation or collateral securing such Receivable.

 

“Secured Obligations”
shall mean (i) in the case of the Borrower, the Obligations and (ii) in the case of the Guarantors, the Guaranteed Obligations
(as defined in the Guaranty Agreement).

 

“Secured Parties”
shall mean collectively, the Administrative Agent, the Second Lien Collateral Agent, the Lenders, each Indemnitee pursuant to Section
9.05 of the Credit Agreement and each co-agent or sub-agent appointed by the Administrative Agent or Second Lien Collateral Agent
from time to time pursuant to the Credit Agreement.

 

“Securities Act”
shall mean the Securities Act of 1933, as amended.

 

“Trade Secret Licenses”
shall mean all agreements, licenses and covenants providing for the grant to or from a Grantor of any right in or to any Trade
Secret or otherwise providing for a covenant not to sue for misappropriation or other violation of a Trade Secret, including those
in which a Grantor is a licensor or licensee thereunder.

 

“Trade Secrets”
shall mean, with respect to any Grantor, all of such Grantor’s right, title and interest in and to all trade secrets and
with respect to any and all of the foregoing (i) all rights to sue or otherwise recover for any past, present and future misappropriation
or other violation thereof, (ii) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income,
payments, claims, damages, proceeds of suit and other payments now or hereafter due and/or payable with respect thereto, and (iii)
all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

 

“Trademark Licenses”
shall mean all written agreements, licenses and covenants providing for the grant to or from a Grantor of any right in or to any
Trademark or otherwise providing for a covenant not to sue for infringement, dilution, or other violation of any Trademark or permitting
co-existence with respect to a Trademark (including, without limitation, those listed on Schedule 7).

 

    	 	6	 

     

    

 

“Trademarks”
shall mean, with respect to any Grantor, all of such Grantor’s right, title and interest in and to all domestic, foreign
and multinational trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names,
trade dress, trade styles, logos, Internet domain names, other indicia of origin or source identification, and general intangibles
of a like nature, whether registered or unregistered, and, with respect to any and all of the foregoing, (i) all registrations
and applications for registration thereof including, without limitation, the registrations and applications listed on Schedule
7, (ii) all extensions and renewals thereof, (iii) all of the goodwill of the business connected with the use of and symbolized
by any of the foregoing, (iv) all rights to sue or otherwise recover for any past, present and future infringement, dilution, or
other violation thereof, (v) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments,
claims, damages, proceeds of suit and other payments now or hereafter due and/or payable with respect thereto, and (vi) all other
rights of any kind accruing thereunder or pertaining thereto throughout the world.

 

“UETA”
shall have the meaning set forth in Section 3.3.

 

“Vehicles”
shall mean all cars, trucks, trailers, construction and earth moving equipment and other Equipment of any nature covered by a certificate
of title law of any jurisdiction and includes, without limitation, the vehicles listed on Schedule 8, and all tires and
other appurtenances to any of the foregoing.

 

1.2          Other
Definitional Provisions. (a) The words “hereof”, “herein”, “hereto” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and Section, Schedule, Exhibit and Annex references, are to this Agreement unless otherwise specified. References
to any Schedule, Exhibit or Annex shall mean such Schedule, Exhibit or Annex as amended or supplemented from time to time in accordance
with this Agreement.

 

(b)          The
meanings given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.

 

(c)          Where
the context requires, terms relating to the Collateral or any part thereof, when used in
relation to a Grantor, shall refer to such Grantor’s
Collateral or the relevant part thereof.

 

(d)          The
expressions “payment in full,” “paid in
full” and any other similar terms or phrases when used herein shall mean payment
in cash in immediately available funds.

 

(e)          The
use herein of the word “include” or “including”, when following
any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as
“without limitation” or “but not limited
to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items
or matters that fall within the broadest possible scope of such general statement, term or matter.

 

(f)          All
references herein to provisions of the UCC shall
include all successor provisions under any subsequent version or amendment to any Article of the
UCC.

 

    	 	7	 

     

    

 

Section
2.     GRANT OF SECURITY INTEREST;

CONTINUING
LIABILITY UNDER COLLATERAL

 

(a)          Each
Grantor hereby collaterally assigns, pledges and grants to the Second Lien Collateral Agent,
for the benefit of the Secured Parties, a security interest in, all of the following property,
in each case, wherever located and now owned or at any time hereafter acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the “Collateral”), as
collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration
or otherwise) of the Secured Obligations:

 

		(i)	all Accounts, including all
Receivables;

 

		(ii)	all Chattel Paper;

 

		(iii)	all Deposit Accounts;

 

		(iv)	all Documents;

 

		(v)	all Equipment;

 

		(vi)	all General Intangibles;

 

		(vii)	all Instruments;

 

		(viii)	all Insurance;

 

		(ix)	all Intellectual Property;

 

		(x)	all Inventory;

 

		(xi)	all Investment Property;

 

		(xii)	all Letter of Credit Rights;

 

		(xiii)	all Money;

 

		(xiv)	all Pledged Equity Interests;

 

		(xv)	all Goods not otherwise described above;

 

		(xvi)	all Collateral Accounts;

 

(xvii)      all
books, records, ledger cards, files, correspondence, customer lists, supplier lists, blueprints, technical specifications, manuals,
computer software and related documentation, computer printouts, tapes, disks and other electronic storage media and related data
processing software and similar items that at any time pertain to or evidence or contain information relating to any of the Collateral
or are otherwise necessary or helpful in the collection thereof or realization thereupon;

 

    	 	8	 

     

    

 

(xviii)     all
commercial tort claims now or hereinafter described on Schedule 10; and

 

(xix)        to
the extent not otherwise included, all other property of such Grantor and all Proceeds,
products, accessions, rents and profits of any and all of the foregoing and all collateral security,
Supporting Obligations and guarantees given by any Person with respect to any of the foregoing.

 

Notwithstanding anything
to the contrary in this Agreement, (i) none of the Excluded Assets shall constitute Collateral and (ii) any lien or security
interest created herein in favor of the Second Lien Collateral Agent, for the benefit of the Secured Parties, in (x) any Securitization
Assets shall be automatically released immediately upon and concurrently with the sale thereof pursuant to a Qualified Securitization
Financing, to the extent, with respect to the PNC Securitization Financing, transferred prior to the Purchase and Sale Termination
Date but giving effect to any extension thereof (as defined in the PNC Purchase and Sale Agreement as in effect on the date hereof)
and (y) any Credit Support Assets shall be automatically released immediately upon and concurrently with the sale thereof pursuant
to a Permitted Credit Support Arrangement.

 

(b)          Notwithstanding
anything herein to the contrary, (i) each
Grantor shall remain liable for all obligations under the Collateral and nothing
contained herein is intended or shall be a delegation of duties to the
Second Lien Collateral Agent or any Secured Party, and
(ii) each Grantor shall remain liable under each of the agreements included in the
Collateral, including, without limitation, any Receivables
and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests,
to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof
and neither the Second Lien Collateral Agent nor any Secured
Party shall have any obligation or liability under any of such agreements by reason of or arising out of this
Agreement or any other document related thereto nor shall the Second Lien Collateral Agent
or any Secured Party have any obligation to make any inquiry as to the nature or
sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any
agreement included in the Collateral, including,
without limitation, any agreements relating to any Receivables, Pledged Partnership Interests or Pledged LLC Interests.

 

Section
3.     REPRESENTATIONS AND WARRANTIES

 

To induce the Secured Parties
to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder,
each Grantor hereby represents and warrants to the Second Lien Collateral Agent, for the benefit of the Secured Parties, on the
Closing Date (after giving effect to the Transactions occurring on the Closing Date and subject to the Funding Conditions Provision),
that:

 

3.1          [Reserved].

 

    	 	9	 

     

    

 

3.2          Title;
No Other Liens. Such Grantor owns each item of the Collateral free and clear of any and all Liens or claims, including, without
limitation, liens arising as a result of such Grantor becoming bound (as a result of merger or otherwise) as Grantor under a security
agreement entered into by another Person, except, with respect to any Collateral other than Pledged Equity Interests, for Permitted
Liens and, in the case of Pledged Equity Interests, Permitted Liens arising pursuant to applicable law. No financing statement,
mortgage or other public notice with respect to all or any part of the Collateral is on file or of record in any public office,
except such as have been filed in favor of the Second Lien Collateral Agent, for the benefit of the Secured Parties, pursuant
to this Agreement or as are permitted by the Credit Agreement.

 

3.3          Valid,
Perfected Second Priority Liens. Subject to the First-Second Intercreditor Agreement, the security interests granted pursuant
to this Agreement constitute a legal and valid security interest in favor of the Second Lien Collateral Agent, for the benefit
of the Secured Parties, securing the payment and performance of each Grantor’s Secured Obligations. In the case of the Pledged
Securities described herein, when certificates or promissory notes, as applicable, representing such Pledged Securities are delivered
(subject to the First-Second Intercreditor Agreement) to the Second Lien Collateral Agent in New York with, transfer powers duly
executed in blank, and in the case of the other Collateral described herein (other than Intellectual Property), when financing
statements in appropriate form are filed in the offices specified on Schedule 3, the Second Lien Collateral Agent (for
the benefit of the Secured Parties) shall have a fully perfected Lien on, and security interest in (to the extent required thereby),
all right, title and interest of the Grantors in such Collateral and, subject to Section 9-315 of the New York Uniform Commercial
Code, the proceeds thereof, as security for the Obligations to the extent perfection can be obtained by filing Uniform Commercial
Code financing statements, in each case prior and superior in right to any other person (except Permitted Liens). When the Intellectual
Property Security Agreements are properly filed in the United States Patent and Trademark Office and the United States Copyright
Office, and, with respect to Collateral comprised of Intellectual Property in which a security interest cannot be perfected by
such filings, upon the proper filing of the financing statements referred to in this Section 3.3(a), the Second Lien Collateral
Agent (for the benefit of the Secured Parties) shall have a fully perfected Lien on, and security interest in (to the extent intended
to be created thereby), all right, title and interest of the Loan Parties thereunder in the domestic Intellectual Property included
in the Collateral, in each case prior and superior in right to any other person (it being understood that subsequent recordings
in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a lien on
registered trademarks and patents, trademark and patent applications and registered copyrights acquired by the Grantors thereunder
after the Closing Date) except Permitted Liens. Without limiting the foregoing, to the extent required hereunder or under the
Credit Agreement, each Grantor has taken such actions that are necessary to: (i) establish the Second Lien Collateral Agent’s
“control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Investment Property
constituting Certificated Securities, Uncertificated Securities, Securities Accounts, Securities Entitlements or Commodity Accounts,
(ii) establish the Second Lien Collateral Agent’s “control” (within the meaning of Section 9-104 of the
UCC) over all Deposit Accounts, (iii) establish the Second Lien Collateral Agent’s “control” (within the meaning
of Section 9-107 of the UCC) over all Letter of Credit Rights, (iv) establish the Second Lien Collateral Agent’s control
(within the meaning of Section 9-105 of the UCC) over all Electronic Chattel Paper and (v) establish the Second Lien
Collateral Agent’s “control” (within the meaning of Section 16 of the Uniform Electronic Transactions Act
as in effect in the applicable jurisdiction (the “UETA”)) over all “transferable records” (as defined
in UETA).

 

    	 	10	 

     

    

 

3.4          Name;
Jurisdiction of Organization, Etc.   As of the Closing Date, such Grantor’s exact legal name (as indicated on the public
record of such Grantor’s jurisdiction of incorporation, formation or organization), jurisdiction of incorporation, formation
or organization, organizational identification number, if any, and the location of such Grantor’s chief executive office
or sole place of business are specified on Schedule 3. Each Grantor is organized solely under the law of the jurisdiction
so specified and has not filed any certificates of domestication, transfer or continuance in any other jurisdiction. Except as
specified on Schedule 3, as of the Closing Date, it has not changed its name, jurisdiction of organization, chief executive
office or sole place of business (if applicable) or its corporate structure in any way (e.g. by merger, consolidation, change
in corporate form or otherwise) within the past five years. As of the Closing Date, subject to any Permitted Liens and any Securitization
Financing, no Grantor has within the last five years become bound (whether as a result of merger or otherwise) as Grantor under
a security agreement entered into by another Person, which has not heretofore been terminated. Unless otherwise stated on Schedule
3, such Grantor is not a transmitting utility as defined in UCC § 9-102(a)(80).

 

3.5          [Reserved].

 

3.6          Special
Collateral; Excluded Collateral. (a) As of the Closing Date, none of the Collateral constitutes, or is the Proceeds
of, (1) Farm Products, (2) As-Extracted Collateral, (3) Manufactured Homes, (4) Health-Care Insurance Receivables, (5) timber
to be cut or (6) aircraft engines, satellites, ships or railroad rolling stock.

 

(b)          [Reserved].

 

3.7          Investment
Property. (a)  Schedule 1 hereto sets forth under the headings “Pledged Stock”, “Pledged
LLC Interests” and “Pledged Partnership Interests”, respectively, all of the Pledged Stock, Pledged LLC Interests
and Pledged Partnership Interests owned by any Grantor and such Pledged Equity Interests constitute the percentage of issued and
outstanding shares of stock, percentage of membership interests or percentage of partnership interests of the respective issuers
thereof indicated on such Schedule. Schedule 1 hereto sets forth under the heading “Pledged Debt Securities”
or “Pledged Notes” all of the Pledged Debt Securities and Pledged Notes owned by any Grantor, and all of such Pledged
Debt Securities and Pledged Notes, have been, in the case of those issued by Affiliates of such Grantor, or, in the case of those
issued by Persons that are not Affiliates of such Grantor, to the knowledge of such Grantor have been, duly authorized, authenticated,
issued, and delivered (subject to the First-Second Intercreditor Agreement) and are the legal, valid and binding obligation of
the issuers thereof enforceable in accordance with their terms and are not in default and, in the case of those issued by Affiliates
of such Grantor, constitute all of the issued and outstanding inter-company indebtedness owed by such Affiliates to such Grantor
evidenced by an instrument or certificated security of the respective issuers thereof. Schedule 1 hereto sets forth under
the headings “Securities Accounts,” “Commodities Accounts,” and “Deposit Accounts,” respectively,
all of the Securities Accounts, Commodities Accounts and Deposit Accounts in which each Grantor has an interest. Each Grantor
is the sole entitlement holder or customer of each such account, and such Grantor has not consented to, and is not otherwise aware
of, any Person (other than the Second Lien Collateral Agent pursuant hereto) having “control” (within the meanings
of Sections 8-106, 9-106 and 9-104 of the UCC) over, or any other interest in, any such Securities Account, Commodity Account
or Deposit Account or any securities, commodities or other property credited thereto.

 

    	 	11	 

     

    

 

(b)          The
shares of Pledged Stock pledged by such Grantor hereunder
constitute all of the issued and outstanding shares of all classes of the Equity Interests
of each Issuer owned by such Grantor other than any
such Equity Interests that are Excluded Assets.

 

(c)          To
the extent such concepts are applicable, all the shares of the Pledged Equity Interests have
been duly and validly issued and are fully paid and nonassessable. No Grantor is in material
default of its material obligations under any Organizational Document of any
Issuer of Pledged Equity Interests.

 

(d)          None
of the Pledged LLC Interests or Pledged Partnership Interests are, or represent interests in entities that (a) are registered as
investment companies, (b) are dealt in or traded on securities exchanges or markets or (c) have opted to be treated as securities
under the Uniform Commercial Code of any jurisdiction.

 

(e)          
No consent, approval or authorization of any Person is required for the pledge by such Grantor
of the Pledged Equity Interests pursuant to this
Agreement or for the execution, delivery or performance of this Agreement by such
Grantor (other than such consent, approval or authorization the failure to obtain would (i)
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, or (ii) result in the creation
or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by the Borrower or any
such Loan Parties, other than Permitted Liens), whether under (w) the Organizational Documents of any
Issuer of Pledged Equity Interests, (x) any provision of law, statute, rule or regulation,
(y) any applicable order of any court or any rule, regulation or order of any Governmental Authority or (z) any provision of any
indenture, certificate of designation for preferred stock, agreement or other instrument to which any Grantor is a party or by
which any of them or any of their property is or may be bound, except such as have been obtained and are in full force and effect.

 

3.8          [Reserved].

 

3.9          Intellectual
Property.

 

(a)          Schedule
7 lists all of the following Intellectual Property, to the extent owned by such
Grantor: (i) issued Patents and pending Patent applications,
(ii) registered Trademarks and applications for the registration of
Trademarks, and (iii) registered Copyrights, and applications to register
Copyrights. All such Intellectual Property is recorded in the name of such
Grantor. Except as set forth on Schedule 7, such Grantor is the sole and exclusive
owner of the entire and unencumbered right, title and interest in and to such Intellectual Property,
as well as any other Material Intellectual Property owned by such
Grantor, in each case free and clear of all Liens, claims and licenses, except for Permitted
Liens and the licenses set forth on Schedule 7. 

 

(b)          Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, all Intellectual Property
that is required to be listed on Schedule 7, is subsisting and has not been adjudged invalid or unenforceable, in whole
or in part, nor, in the case of Patents, is any of such Intellectual Property the subject of a reexamination proceeding, and such
Grantor has performed all acts and has paid all renewal, maintenance, and other fees and taxes required to maintain each and every
registration and application of Copyrights, Patents and Trademarks of such Grantor in full force and effect.

 

    	 	12	 

     

    

 

(c)          Schedule
7 lists all Material IP Licenses. With respect to each Material IP License: (i) such license is valid and binding and in full
force and effect; (ii) solely with respect any Material IP License that constitute Collateral, such license will not cease to be
valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interests
granted herein, nor will the grant of such rights and interests constitute a breach or default under such license or otherwise
give the licensor or licensee a right to terminate such license; (iii) such Grantor has not received any notice of termination
or cancellation under such license; (iv) such Grantor has not received any notice of a breach or default under such license, which
breach or default has not been cured; (v) such Grantor has not granted to any other third party any rights, adverse or otherwise,
under such license; and (vi) such Grantor is not in breach or default in any material respect, and no event has occurred that,
with notice and/or lapse of time, would constitute such a breach or default by such Grantor or permit termination, modification
or acceleration of or under such license, except, in each case, as would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(d)          Except
as would not reasonably be expected to have a Material Adverse Effect, no action or proceeding is pending, or, to the knowledge
of such Grantor, threatened, alleging that such Grantor,
or the conduct of such Grantor’s business, infringes, misappropriates, dilutes, or
otherwise violates the intellectual property of any other Person.

 

(e)          Such
Grantor controls the nature and quality of all products sold and all services rendered under or in connection with all
Trademarks owned by such Grantor constituting Material Intellectual Property, and
has taken such commercially reasonable actions necessary to insure that its licensees of all such
Trademarks comply with such Grantor’s standards of quality.

 

(f)          Except
as set forth on Schedule 7, such Grantor has not made a previous assignment, sale,
transfer, exclusive license, or similar arrangement constituting a present or future assignment, sale, transfer, exclusive license
or similar arrangement by such Grantor of any Material Intellectual Property or Material IP License owned or held by such Grantor
that has not been terminated or released.

 

3.10       [Reserved].

 

3.11       Letter
of Credit Rights. No Grantor is a beneficiary or assignee under any letter of credit with a value in excess of $5,000,000
(individually) other than the letters of credit described on Schedule 9 as of the Closing Date.

 

3.12       Commercial
Tort Claims. No Grantor has any commercial tort claims individual value in excess of $5,000,000 other than those described
on Schedule 10 as of the Closing Date.

 

    	 	13	 

     

    

 

Section
4.     COVENANTS

 

Each Grantor covenants and
agrees with the Secured Parties that, from and after the date of this Agreement until the Discharge of the Secured Obligations:

 

4.1          [Reserved].

 

4.2          Delivery
and Control of Instruments, Chattel Paper, Negotiable Documents, Investment Property and
Deposit Accounts.

 

(a)          Without
limiting Section 4.6 hereof, if any of the Collateral is or shall become evidenced or represented
by any Instrument, Certificated Security, Negotiable Document or Tangible Chattel Paper, such Instrument
(other than checks received in the ordinary course of business), Certificated Security, Negotiable Document or Tangible
Chattel Paper with an individual principal amount in excess of $5,000,000, such Collateral
shall be delivered to the Second Lien Collateral Agent (subject
to the First-Second Intercreditor Agreement) therefor, duly endorsed in a manner reasonably
satisfactory to the Second Lien Collateral Agent,
to be held as Collateral pursuant to this Agreement;
provided that the foregoing delivery requirement shall not apply to any intellectual property licensing agreements or other similar
agreements.

 

(b)          If
any of the Collateral is or shall become Electronic Chattel Paper with an individual value in excess of $5,000,000 (individually),
promptly following the request of the Second Lien Collateral Agent such Grantor shall ensure that (i) a single authoritative copy
exists which is unique, identifiable and unalterable (except as provided in clauses (iii), (iv) and (v) of this paragraph), (ii)
such authoritative copy identifies the Second Lien Collateral Agent as the assignee and is communicated to and maintained by the
Second Lien Collateral Agent or its designee, (iii) copies or revisions that add or change the assignee of the authoritative copy
can only be made with the participation of the Second Lien Collateral Agent, (iv) each copy of the authoritative copy and any copy
of a copy is readily identifiable as a copy and not the authoritative copy and (v) any revision of the authoritative copy is readily
identifiable as an authorized or unauthorized revision.

 

(c)          Without
limiting Section 5.6 hereof, if any of the Collateral is or shall become evidenced or represented
by an Uncertificated Security with a value in excess of $5,000,000 individually, such
Grantor shall use commercially reasonable efforts to cause the Issuer to agree in
writing with such Grantor and the Second Lien
Collateral Agent that such Issuer will comply with instructions with respect to such
Uncertificated Security originated by the Second Lien Collateral
Agent without further consent of such Grantor, such
agreement to be in substantially the form of Exhibit A or
in form and substance reasonably satisfactory to the Second Lien Collateral Agent.

 

(d)          Each
Grantor shall maintain Securities Entitlements, Securities Accounts and
Deposit Accounts, other than Excluded Accounts only with financial institutions that have agreed to comply with entitlement
orders and instructions issued or originated by the Second Lien
Collateral Agent without further consent of such Grantor, such
agreement to be in form and substance reasonably satisfactory to the Second Lien
Collateral Agent.

 

    	 	14	 

     

    

 

(e)          If
any of the Collateral is or shall become evidenced or represented by a Commodity Contract
with a face value in excess of $5,000,000 individually, such
Grantor shall use commercially reasonable efforts to cause the Commodity Intermediary with respect to such Commodity Contract
to agree in writing with such Grantor and the Second
Lien Collateral Agent that such Commodity Intermediary will apply any value distributed
on account of such Commodity Contract as directed by the Second Lien
Collateral Agent without further consent of such Grantor, such
agreement to be in form and substance reasonably satisfactory to the Second Lien
Collateral Agent.

 

(f)          [Reserved].

 

4.3          Maintenance
of Perfected Security Interest; Further Documentation. (a) Such Grantor shall maintain the security interest created by this
Agreement in the Collateral as a perfected security interest having at least the priority described in Section 3.3 and shall
use commercially reasonable efforts to defend such security interest against the claims and demands of other Persons (other than
those Persons holding Permitted Liens with respect to such Permitted Liens).

 

(b)          Such
Grantor shall furnish to the Second Lien Collateral
Agent statements and schedules further identifying and describing the Collateral and
such other reports in connection with the assets and property of such Grantor as the
Second Lien Collateral Agent may reasonably request, in any event no more than once
per fiscal quarter, all in reasonable detail.

 

(c)          From
time to time, following reasonable request of the Second Lien
Collateral Agent, and at the sole expense of such Grantor, such
Grantor shall use commercially reasonable efforts to promptly and duly authorize, execute and deliver, and have recorded,
such further instruments and documents and take such commercially reasonable further actions as the
Second Lien Collateral Agent may reasonably request as are necessary for the purpose
of obtaining or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any financing
or continuation statements under the Uniform Commercial Code (or other similar laws) in
effect in any jurisdiction with respect to the security interests created hereby and (ii) in the case of
Investment Property, Deposit Accounts and any other relevant Collateral, taking such
commercially reasonable actions necessary to enable the Second Lien
Collateral Agent to obtain “control” (within the meaning of the applicable Uniform Commercial Code) with respect
thereto to the extent required hereunder, including without
limitation, with respect to any deposit account or securities account (other than Excluded Accounts), use commercially reasonable
efforts to deliver to the Second Lien Collateral Agent a Control Agreement with respect to such deposit account or securities account.

 

(d)          In
the event that a Grantor hereafter acquires any Collateral of a type described in Section 3.6(a) hereof, it shall promptly
notify the Second Lien Collateral Agent in writing and following the reasonable request
of the Second Lien Collateral Agent (or automatically after the occurrence and during the continuance of an Event of Default) take
such commercially reasonable actions and execute such documents and make such filings all at such Grantor’s expense as the
Second Lien Collateral Agent may reasonably request in order to ensure that the Second Lien Collateral Agent has a valid, perfected,
security interest in such Collateral, with senior priority and subject only to any Permitted Liens.

 

    	 	15	 

     

    

 

4.4          [Reserved].

 

4.5          [Reserved].

 

4.6          Investment
Property. (a)  If such Grantor shall become entitled to receive or shall receive any stock or other ownership certificate
(including, without limitation, any certificate representing a stock dividend or a distribution in connection with any reclassification,
increase or reduction of capital or any certificate issued in connection with any reorganization), or option or rights in respect
of Collateral consisting of capital stock or other Pledged Equity Interest of any Issuer, whether in addition to, in substitution
of, as a conversion of, or in exchange for, any shares of or other ownership interests in Collateral consisting of the Pledged
Equity Interests, or otherwise in respect thereof, in each case, solely to the extent constituting Collateral, such Grantor shall,
subject to the Collateral and Guarantee Requirement, accept the same as the agent of the Secured Parties, hold the same on behalf
of and for the Secured Parties and deliver (subject to the First-Second Intercreditor Agreement) the same forthwith to the Second
Lien Collateral Agent in the exact form received, duly endorsed by such Grantor to the Second Lien Collateral Agent, if required,
together with an undated stock power covering such certificate duly executed in blank by such Grantor and with, if the Second
Lien Collateral Agent so requests, signature guaranteed, to be held by the Second Lien Collateral Agent, subject to the terms
hereof, as additional collateral security for the Secured Obligations. If an Event of Default shall have occurred and be continuing
for which notice has been given by the Administrative Agent to the Grantors; provided no such notice shall be required in the
case of any bankruptcy or insolvency of any Grantor, any sums paid upon or in respect of the Pledged Equity Interests upon the
liquidation or dissolution of any Issuer shall be paid over to the Second Lien Collateral Agent to be held by it hereunder as
additional collateral security for the Secured Obligations, and in case any distribution of capital shall be made on or in respect
of the Pledged Equity Interests or any property shall be distributed upon or with respect to the Pledged Equity Interests pursuant
to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property
so distributed shall, unless otherwise subject to a perfected security interest in favor of the Second Lien Collateral Agent,
be delivered to the Second Lien Collateral Agent to be held by it hereunder as additional collateral security for the Secured
Obligations. If an Event of Default shall have occurred and be continuing for which notice has been given by the Administrative
Agent to the Grantors; provided no such notice shall be required in the case of any bankruptcy or insolvency of any Grantor, any
sums of money or property so paid or distributed in respect of the Pledged Equity Interests shall be received by such Grantor,
such Grantor shall, until such money or property is paid or delivered to the Second Lien Collateral Agent, hold such money or
property on behalf of and for the Secured Parties, segregated from other funds of such Grantor, as additional collateral security
for the Secured Obligations.

 

    	 	16	 

     

    

 

(b)          Without
the prior written consent of the Second Lien Collateral Agent, unless otherwise permitted by the Credit Agreement, such Grantor
will not (i) vote to enable, or take any other action to permit, any Issuer to amend its Organizational Documents in any
manner that materially changes the rights of such Grantor with respect to any Pledged Equity Interests or materially and adversely
affects the validity, perfection or priority of the Second Lien Collateral Agent’s security interest therein, (ii) enter
into any agreement or undertaking materially and adversely restricting the right or ability of such Grantor or the Second Lien
Collateral Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof or any interest therein or (iii)
cause or permit any Issuer of any Pledged Partnership Interests or Pledged LLC Interests which
are not securities (for purposes of the UCC) as of the Closing Date to elect or otherwise take any action to cause such Pledged
Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of the UCC; provided, however,
that notwithstanding the foregoing, if any issuer of any Pledged Partnership Interests or Pledged LLC Interests takes any such
action in violation of the foregoing in this clause (b), such Grantor shall promptly notify the Second Lien Collateral Agent
in writing of any such election or action and, in such event, following the reasonable request of the Second Lien Collateral Agent
shall take such commercially reasonable steps necessary to establish the Second Lien Collateral Agent’s “control”
thereof.

 

(c)          Each
Grantor which is an Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to Collateral consisting of Pledged Equity Interests issued by
it and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Second Lien Collateral Agent promptly in writing of the occurrence of any of the events described in Section 4.6(a)
with respect to the Pledged Equity Interests issued by it and (iii) the terms of
Section 4.7(c) shall apply to it, mutatis mutandis, with respect to such actions
that may be required of it pursuant to Section 4.7(c) with respect to the
Pledged Equity Interests issued by it. In addition, each Grantor which is either
an Issuer or an owner of any Collateral consisting of Pledged
Equity Interests hereby consents, to the grant by each other Grantor of the security
interest hereunder in favor of the Second Lien Collateral
Agent and to the transfer of any Collateral consisting of Pledged Equity Interests to
the Second Lien Collateral Agent or its nominee following the occurrence and continuance
of an Event of Default and to the substitution of the Second Lien Collateral Agent or its
nominee as a partner, member or shareholder or other equity holder of the Issuer of the
related Pledged Equity Interest.

 

4.7          Voting
and Other Rights with Respect to Pledged Securities. (a)  Unless an Event
of Default shall have occurred and be continuing, subject to the First-Second Intercreditor Agreement, each Grantor shall be permitted
to receive all cash dividends paid in respect of Collateral consisting of the Pledged Equity Interests and all payments made in
respect of Collateral consisting of Pledged Notes or Pledged Debt Securities, to the extent permitted by the Credit Agreement,
and to exercise all voting and corporate rights with respect to the Pledged Equity Interests; provided, however,
that, except as permitted by the Credit Agreement, no vote shall be cast or corporate or other ownership right exercised or other
action taken which would materially and adversely impair the Collateral or which would be inconsistent with or result in any violation
of any provision of the Credit Agreement, this Agreement or any other Loan Document.

 

    	 	17	 

     

    

 

(b)          If
an Event of Default shall occur and be continuing, upon written notice from the Second Lien Collateral Agent to the applicable
Grantor; provided no such notice shall be required in the case of any bankruptcy or insolvency of any Grantor: (i) all rights of
each Grantor to exercise or refrain from exercising the voting and other consensual rights
with respect to Collateral consisting of Pledged Securities which it would otherwise be
entitled to exercise shall cease and all such rights shall thereupon become vested in the Second
Lien Collateral Agent, subject to the First-Second Intercreditor Agreement, who shall thereupon have the sole right, but
shall be under no obligation, to exercise or refrain from exercising such voting and other consensual rights and (ii) the
Second Lien Collateral Agent shall have the right, without further notice to any Grantor,
to transfer all or any portion of the Pledged Securities to its name or the name of its
nominee or agent. In addition, the Second Lien Collateral
Agent shall have the right at any time following such event, without further notice to any
Grantor, to exchange any certificates or instruments representing any Pledged Securities
for certificates or instruments of smaller or larger denominations. In order to permit the
Second Lien Collateral Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant
hereto and to receive all dividends and other distributions which it may be entitled to receive
hereunder following the reasonable request of the Second Lien Collateral Agent each Grantor
shall promptly execute and deliver (or use commercially reasonable efforts to cause to be executed and delivered) to the
Second Lien Collateral Agent such proxies, dividend payment orders and other instruments as the
Second Lien Collateral Agent may from time to time reasonably request and each Grantor acknowledges
that the Second Lien Collateral Agent may utilize the power of attorney set forth
herein after the occurrence and during the continuance of an Event of Default.

 

(c)          Each
Grantor hereby authorizes and instructs each Issuer of any
Pledged Securities pledged by such Grantor hereunder to, upon the occurrence and
during the continuance of an Event of Default, following contemporaneous written notice from the Second Lien Collateral Agent to
the applicable Grantor; provided no such notice shall be required in the case of any bankruptcy or insolvency of any Grantor: (i)
comply with any instruction received by it from the Second Lien Collateral Agent in writing
that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this
Agreement, without any other or further instructions from such Grantor, and each
Grantor agrees that each Issuer shall be fully protected in so complying, and (ii)
unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the
Pledged Securities directly to the Second Lien Collateral Agent.

 

4.8          [Reserved].

 

4.9          Intellectual
Property. (a) Such Grantor will not, without the prior written consent of the Second Lien Collateral Agent, do any act
or omit to do any act whereby any Material Intellectual Property may lapse, become abandoned, terminated, cancelled, dedicated
to the public, forfeited, or otherwise impaired.

 

(b)          Such
Grantor shall take all reasonable steps, including in any proceeding before the United States Patent and Trademark Office or the
United States Copyright Office, or any foreign counterpart of the foregoing, to pursue any application and maintain any registration
or issuance of each Trademark, Patent, and Copyright owned by or, to the extent it has the right to take such steps, exclusively
licensed to such Grantor and constituting Material Intellectual Property.

 

    	 	18	 

     

    

 

(c)          Such
Grantor agrees that, should it hereafter (i) obtain an ownership interest in any item of Intellectual Property, (ii) obtain an
exclusive license to any Copyrights, (iii) (either by itself or through any agent, employee, licensee, or designee) file any application
for the registration or issuance of any Intellectual Property with the United States Patent and Trademark Office, the United States
Copyright Office, or any similar office or agency in any other country or in any political subdivision of any of the foregoing,
or (iv) should it file a Statement of Use or an Amendment to Allege Use with respect to any “intent-to-use” Trademark
application (the items in clauses (i), (ii) (iii) and (iv), collectively, the “After-Acquired Intellectual Property”),
then the provisions of Section 2 shall automatically apply thereto, and any such After-Acquired Intellectual Property shall
automatically become part of the Collateral, and with respect to any such After-Acquired Intellectual Property that is (w) an issued
Patent or pending Patent application, (x) a registered Trademark or application for the registration of a Trademark, (y) a registered
Copyright, or application to register a Copyright, or (z) an exclusive license to any Copyrights, such Grantor shall give prompt
(and, in any event within five (5) Business Days after the last day of the fiscal quarter in which such Grantor acquires such ownership
interest) written notice thereof to the Second Lien Collateral Agent in accordance herewith, and shall provide the Second Lien
Collateral Agent with an amended Schedule 7 hereto, in each case, concurrently with the delivery of each of the quarterly
financials (or Quarterly Reports) delivered pursuant to Section 5.04(b) of the Credit Agreement, and promptly take the actions
specified in Section 4.9(d) with respect thereto.

 

(d)          Such
Grantor shall execute Intellectual Property Security Agreements with respect to the Intellectual Property included in the Collateral
as of the Closing Date, as well as any After-Acquired Intellectual Property, in substantially the form of Exhibits C-1, C-2,
or C-3, as applicable, in order to record the security interest granted herein to the Second Lien Collateral Agent for the
benefit of the Secured Parties with the United States Patent and Trademark Office or the United States Copyright Office, as applicable,
and such Grantor shall promptly execute and deliver, and have recorded, any and all other agreements, instruments, documents, and
papers as the Second Lien Collateral Agent may reasonably request to evidence the Secured Parties’ security interest in any
such Intellectual Property with any other applicable offices, agencies, or Governmental Authorities, subject to the Collateral
and Guarantee Requirement.

 

(e)          [Reserved].

 

(f)          Such
Grantor shall not permit the inclusion in any contract to which it hereafter becomes a party of any provision that could or may
in any way materially impair or prevent the creation of a security interest in, or the assignment of, such Grantor’s rights
and interests in any property that constitutes Material Intellectual Property, or in any Material IP License. With respect to each
Material IP License entered into by such Grantor following the Closing Date, such Grantor
shall ensure that such Material IP License expressly permits the grant of a security interest therein, and the assignment and sublicensing
of such Material IP License in connection with the exercise of rights and remedies under Section 5 hereunder.

 

(g)          Such
Grantor shall promptly notify the Second Lien Collateral Agent if it knows that any item of Material Intellectual Property may
become (i) terminated, abandoned, dedicated to the public or placed in the public domain, (ii) invalid or unenforceable, (iii)
subject to any adverse determination or development regarding such Grantor’s ownership, registration or use or the validity
or enforceability of such item of Intellectual Property (including the institution of, or any adverse development with respect
to (excluding office actions and similar decisions received in the ordinary course of prosecution of any application), any action
or proceeding in the United States Patent and Trademark Office, the United States Copyright Office, any state registry, any foreign
counterpart of the foregoing, or any court) or (iv) the subject of any reversion or termination rights.

 

    	 	19	 

     

    

 

(h)          In
the event that any Material Intellectual Property owned by or exclusively licensed to any Grantor is infringed, misappropriated,
diluted or otherwise violated by another Person, such Grantor shall, (i) promptly take action, consistent with its reasonable business
judgment, to stop such infringement, misappropriation, dilution or other violation and protect its rights in such Material Intellectual
Property including, but not limited to, the initiation of a suit for injunctive relief and to recover damages, provided that, with
respect to such Material Intellectual Property exclusively licensed to such Grantor, such Grantor shall take such actions to the
extent permitted under the applicable license, and (ii) promptly notify the Second Lien Collateral Agent after it learns thereof.

 

4.10          [Reserved].

 

4.11          Government
Receivables. If any Grantor shall at any time after the date of this Agreement acquire or become the beneficiary of Collateral
consisting of Receivables in respect of which the account debtor is a Governmental Authority, such Grantor shall promptly notify
the Second Lien Collateral Agent if such Receivable is in excess of $5,000,000 (individually) and, upon the reasonable request
of the Second Lien Collateral Agent, shall take such commercially reasonable steps necessary to perfect the Lien of the Second
Lien Collateral Agent for the benefit of the Secured Parties therein, and make such Lien enforceable against the account debtor.

 

4.12          Letter
of Credit Rights. Concurrently with the delivery of each of the quarterly financials (or Quarterly Reports) delivered pursuant
to Section 5.04(b) of the Credit Agreement, each Grantor shall provide the Second Lien Collateral Agent with an amended or
supplemented Schedule 9 to reflect such additional letters of credit with a value in excess of $5,000,000 (individually)
since Schedule 9 was last delivered.

 

4.13          Commercial
Tort Claims. Concurrently with the delivery of each of the quarterly financials (or Quarterly Reports) delivered pursuant
to Section 5.04(b) of the Credit Agreement, each Grantor shall provide the Second Lien Collateral Agent with an amended or
supplemented Schedule 10 to reflect such additional commercial tort claims with an individual value in excess of $5,000,000
since Schedule 10 was last delivered.

 

Section
5.     REMEDIAL PROVISIONS

 

5.1          Certain
Matters Relating to Receivables.

 

(a)           After
an Event of Default that has occurred and is continuing, the Second Lien Collateral Agent shall have the right to make test verifications
of the Collateral consisting of Receivables in any manner and through any medium that it reasonably considers advisable, and each
Grantor shall furnish all such assistance and information as the Second Lien Collateral Agent may require in connection with such
test verifications. At any time and from time to time, upon the Second Lien Collateral Agent’s request and at the expense
of the relevant Grantor, such Grantor shall cause independent public accountants or others reasonably satisfactory to the Second
Lien Collateral Agent to furnish to the Second Lien Collateral Agent reports showing reconciliations, aging and test verifications
of, and trial balances for, the Collateral consisting of Receivables.

 

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(b)          The
Second Lien Collateral Agent hereby authorizes each Grantor to collect such
Grantor’s Receivables that are Collateral and each
Grantor hereby agrees to continue to collect all amounts due or to become due to such Grantor
under such Receivables and any Supporting Obligation
in respect thereof and diligently exercise each material right it may have under any Receivable
and any such Supporting Obligation, in each case, at its own expense consistent with
its reasonable business judgment; provided, however, that the Second Lien Collateral
Agent may curtail or terminate said authority at any time after the occurrence and during the continuance of an Event of
Default. If required by the Second Lien Collateral Agent at any time after the occurrence
and during the continuance of an Event of Default, any payments of Collateral consisting of Receivables,
when collected by any Grantor, (i) shall forthwith (and, in any event, within two (2) Business
Days) be deposited by such Grantor in the exact form received, duly endorsed by such
Grantor to the Second Lien Collateral Agent if required, in a
Collateral Account maintained under the sole dominion and control of the Second Lien Collateral
Agent, subject to withdrawal by the Second Lien Collateral Agent for the account
of the Secured Parties only as provided in Section 5.4,
and (ii) until so turned over, shall be held by such Grantor on behalf of and for the
Secured Parties, segregated from other funds of such Grantor. Each such deposit of
Proceeds of Collateral consisting of Receivables shall be accompanied by a report
identifying in reasonable detail the nature and source of the payments included in the deposit.

 

(c)          If
an Event of Default has occurred and is continuing, following the Second Lien Collateral Agent’s
request, each Grantor shall deliver to the Second Lien Collateral
Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the
Collateral consisting of Receivables, including, without limitation, all original
orders, invoices and shipping receipts.

 

5.2          Communications
with Obligors. (a)  The Second Lien Collateral Agent in its own name or in the name of others may, following contemporaneous
written notice to the Grantors provided no such notice shall be required in the case of any bankruptcy or insolvency of any Grantor,
after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify
with them to the Second Lien Collateral Agent’s satisfaction the existence, amount and terms of any Collateral consisting
of Receivables.

 

(b)          After
the occurrence and during the continuance of an Event of Default, the Second Lien Collateral Agent
may following written notice to the applicable Grantor, notify, or require any
Grantor to notify, the Account Debtor or counterparty to make all payments under such Receivables
directly to the Second Lien Collateral Agent.

 

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5.3          Proceeds
to be Turned Over To Second Lien Collateral Agent. In addition to the
rights of the Secured Parties specified in Section 5.1 with respect to payments of Collateral consisting of Receivables,
if an Event of Default shall occur and be continuing and upon Second Lien Collateral Agent’s written request, all Proceeds
received by any Grantor consisting of cash, Cash Equivalents, checks and other near-cash items shall be held by such Grantor on
behalf of and for the Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such
Grantor, be turned over to the Second Lien Collateral Agent in the exact form received by such Grantor (duly endorsed by such
Grantor to the Second Lien Collateral Agent, if required). All Proceeds received by the Second Lien Collateral Agent hereunder
shall be held by the Second Lien Collateral Agent in a Collateral Account maintained under its sole dominion and control. All
Proceeds while held by the Second Lien Collateral Agent in a Collateral Account (or by such Grantor on behalf of and for the Secured
Parties) shall continue to be held as collateral security for all the Secured Obligations and shall not constitute payment thereof
until applied as provided in Section 5.4.

 

5.4          Application
of Proceeds. Subject to Section 5.4(b) below, the Agreement Among Lenders and
the First-Second Intercreditor Agreement, if an Event of Default shall have occurred and
be continuing, at any time at the Second Lien Collateral Agent’s election, the
Second Lien Collateral Agent may (and, if directed by the Required Lenders, shall), notwithstanding the provisions of
Section 2.08 and Section 2.11 of the Credit Agreement, apply all or any
part of the Collateral and/or net Proceeds thereof
(after deducting fees and expenses as provided in Section 5.5) realized through the
exercise by the Second Lien Collateral Agent of its remedies
hereunder, whether or not held in any Collateral Account, in payment of the
Secured Obligations. The Second Lien Collateral Agent shall apply any such
Collateral or Proceeds to be applied in the following order:

 

First, to the Second Lien
Collateral Agent and the Administrative Agent to pay incurred and unpaid fees, expenses and indemnities under the Loan Documents;

 

Second, to the Administrative
Agent in respect of Secured Obligations then due and owing and remaining unpaid for application by the Administrative Agent in
accordance with the terms of the Credit Agreement;

 

Third, to the Administrative
Agent in respect of all Secured Obligations, (other than those under clause second above) for prepayment of such Secured Obligations
in accordance with the terms of the Credit Agreement; and

 

Fourth, any balance of such
Proceeds remaining after a Discharge of the Secured Obligations shall be paid over to the Borrower or to whomsoever may be lawfully
entitled to receive the same and any Collateral remaining after a Discharge of the Secured Obligations shall be returned to the
applicable Grantor or to whomsoever may be lawfully entitled to receive the same.

 

In addition, with respect
to any proceeds of Insurance received by the Second Lien Collateral Agent, (x) if no Event of Default shall have occurred and be
continuing, (i) such Insurance Proceeds shall be returned to the Grantors if permitted or required by the Credit Agreement or (ii)
if not so permitted or required by the Credit Agreement, then such Insurance Proceeds shall be applied in accordance with this
Section 5.4(a) and (y) if an Event of Default shall have occurred and be continuing, then such Insurance Proceeds shall be
applied in accordance with this Section 5.4(a).

 

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5.5          Code
and Other Remedies. (a)  If an Event of Default shall occur and be continuing, the Second Lien Collateral Agent,
on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement
and in any other instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies
of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) and all rights under any other applicable
law or in equity. Without limiting the generality of the foregoing, the Second Lien Collateral Agent, without further demand of
performance or other demand, defense, presentment, protest, advertisement or notice of any kind (except any notice required by
law referred to below) to or upon any Grantor or any other Person (all and each of which demands, presentments, protests, defenses,
advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon
the Collateral, or any part thereof, and/or may forthwith sell, lease, license, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels
at public or private sale or sales, at any exchange, broker’s board or office of any Secured Party, on the internet or elsewhere
upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. So long as an Event of Default shall have occurred and be continuing, the Second
Lien Collateral Agent may store, repair or recondition any Collateral or otherwise prepare any Collateral for disposal in the
manner and to the extent that the Second Lien Collateral Agent reasonably deems necessary and appropriate. Each Secured Party
shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales,
to purchase the whole or any part of the Collateral so sold or to become the licensor of all or any such Collateral, free of any
right or equity of redemption in any Grantor, which right or equity is hereby waived and released. For purposes of bidding and
making settlement or payment of the purchase price for all or a portion of the Collateral sold at any such sale made in accordance
with the UCC or other applicable laws, including, without limitation, the Bankruptcy Code, the Second Lien Collateral Agent, as
agent for and representative of the Secured Parties (but not any Secured Party or Secured Parties in its or their respective individual
capacities unless the Required Lenders shall otherwise agree in writing), shall be entitled to credit bid and use and apply the
Secured Obligations (or any portion thereof) as a credit on account of the purchase price for any Collateral payable by the Second
Lien Collateral Agent at such sale, such amount to be apportioned ratably to the Secured Obligations of the Secured Parties in
accordance with their pro rata share of such Secured Obligations. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by
applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten (10) days’ notice to such Grantor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The Second Lien Collateral Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given. The Second Lien Collateral Agent may adjourn any
public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. The Second Lien Collateral Agent may sell the Collateral without
giving any warranties as to the Collateral. The Second Lien Collateral Agent may specifically disclaim or modify any warranties
of title or the like. The foregoing will not be considered to adversely affect the commercial reasonableness of any sale of the
Collateral. Each Grantor agrees that it would not be commercially unreasonable for the Second Lien Collateral Agent to dispose
of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included
in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets. Each Grantor
hereby waives any claims against the Second Lien Collateral Agent arising by reason of the fact that the price at which any Collateral
may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the
Second Lien Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree. Each
Grantor further agrees, at the Second Lien Collateral Agent’s request, to assemble the Collateral and make it available
to the Second Lien Collateral Agent at places which the Second Lien Collateral Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere. The Second Lien Collateral Agent shall have the right to enter onto the property where
any Collateral is located without any obligation to pay rent and take possession thereof with or without judicial process. The
Second Lien Collateral Agent shall have no obligation to marshal any of the Collateral.

 

    	 	23	 

     

    

 

(b)          The
Second Lien Collateral Agent shall deduct from such Proceeds all reasonable costs
and expenses of every kind incurred in connection with the exercise of its rights and remedies against the
Collateral or incidental to the care or safekeeping of any of the Collateral or in
any way relating to the Collateral or the rights of the
Secured Parties hereunder, including, without limitation, reasonable and documented
attorneys’ fees and disbursements. Any net Proceeds remaining after such deductions
shall be applied or retained by the Second Lien Collateral Agent in accordance with Section 5.4.
Only after such application and after the payment by the Second Lien Collateral Agent of
any other amount required by any provision of law, including, without limitation, Section 9-615(a)
of the UCC, need the Second Lien Collateral Agent account
for the surplus, if any, to any Grantor. If the Second Lien
Collateral Agent sells any of the Collateral upon credit, the
Grantor will be credited only with payments actually made by the purchaser and received by the
Second Lien Collateral Agent. In the event the purchaser fails to pay for the Collateral,
the Second Lien Collateral Agent may resell the Collateral
and the applicable Grantor shall be credited with
proceeds of the sale. To the extent permitted by applicable law, each Grantor waives
all claims, damages and demands it may acquire against any Secured Party arising out of
the exercise by it or them of any rights hereunder.

 

(c)          In
the event of any Disposition of any of the Intellectual
Property, the goodwill of the business connected with and symbolized by any Trademarks subject
to such Disposition shall be included, and the applicable
Grantor shall supply the Second Lien Collateral Agent or its designee with such
Grantor’s know-how and expertise, and with documents and things embodying the same, relating to the exploitation of
such Intellectual Property, including the manufacture, distribution, advertising and sale
of products or the provision of services under such Intellectual Property, and such
Grantor’s customer lists and other records and documents relating to such Intellectual
Property and to the manufacture, distribution, advertising and sale of such products and services.

 

    	 	24	 

     

    

 

(d)          For
the purpose of enabling the Second Lien Collateral Agent to exercise rights and remedies
under this Section 5.5 (including in order to take possession of, collect, receive,
assemble, process, appropriate, remove, realize upon, sell, assign, license out, convey, transfer or grant options to purchase
any Collateral) at such time as the Second Lien Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby
grants to the Second Lien Collateral Agent, for the benefit of the
Secured Parties, (i) an irrevocable, nonexclusive, and assignable license or sublicense (exercisable without payment of
royalty or other compensation to such Grantor), subject, in the case of
Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor
to avoid the risk of invalidation of such Trademarks, and exercisable only upon the
occurrence and continuance of an Event of Default, to use, practice, license, sublicense, and otherwise exploit any and all
Intellectual Property now owned or licensed or hereafter acquired or licensed by such Grantor
(which license shall include access to all media in which any of the licensed items may be recorded or stored and to all
software and programs used for the compilation or printout thereof) and (ii) an irrevocable license (without payment of rent or
other compensation to such Grantor) to use, operate and occupy all real property owned,
operated, leased, subleased, or otherwise occupied by such Grantor.

 

5.6          Effect
of Securities Laws.    Each Grantor recognizes that the Second Lien Collateral Agent may be unable to effect a public
sale of any or all of the Pledged Equity Interests or the Pledged Debt Securities by reason of certain prohibitions contained
in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private
sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and
agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable
manner. The Second Lien Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Equity Interests or
the Pledged Debt Securities for the period of time necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.

 

5.7          Deficiency.
Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient
to pay its Secured Obligations and the fees and disbursements of any attorneys employed by any Secured Party to collect such deficiency,
all in accordance with and subject to the Credit Agreement.

 

Section
6.     POWER OF ATTORNEY

 

6.1          Second
Lien Collateral Agent’s Appointment as Attorney-in-Fact, Etc. (a)  Each Grantor hereby
irrevocably constitutes and appoints the Second Lien Collateral Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of
such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement,
to take such appropriate action and to execute any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives
the Second Lien Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

 

    	 	25	 

     

    

 

(i)          in
the name of such Grantor or its own name, or otherwise, take possession of and endorse and
collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any
Receivable or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise deemed appropriate by the
Second Lien Collateral Agent for the purpose of collecting any and all such moneys due under any
Receivable or with respect to any other Collateral whenever payable;

 

(ii)          in
the case of any Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Second Lien Collateral Agent may request
to evidence the Secured Parties’ security interest in such
Intellectual Property and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby;

 

(iii)         pay
or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or purchase any insurance called for by the terms
of the Loan Documents and pay all or any part of the premiums therefor and the costs thereof;

 

(iv)         execute,
in connection with any sale provided for in Section 5.5 or 5.6, any endorsements, assignments
or other instruments of conveyance or transfer with respect to the Collateral; and

 

(v)          (1)
direct any party liable for any payment under any of the Collateral to make payment of any
and all moneys due or to become due thereunder directly to the Second Lien Collateral Agent or
as the Second Lien Collateral Agent shall direct; (2) ask or
demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of any Collateral; (3) sign and endorse any
invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications,
notices and other documents in connection with any of the Collateral; (4) commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the
Collateral or any portion thereof and to enforce any other right in respect of any Collateral;
(5) defend any suit, action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such
discharges or releases as the Second Lien Collateral Agent may deem appropriate; (7) assign
any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains),
throughout the world for such term or terms, on such conditions, and in such manner, as the Second
Lien Collateral Agent shall in its sole discretion determine, subject to the First-Second Intercreditor Agreement; and (8)
generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though the
Second Lien Collateral Agent were the absolute owner thereof for all purposes, and do, at the
Second Lien Collateral Agent’s option and such Grantor’s expense, at
any time, or from time to time, all acts and things which the Second Lien Collateral Agent deems
necessary to protect, preserve or realize upon the Collateral and the
Secured Parties’ security interests therein and to effect the intent of this Agreement,
all as fully and effectively as such Grantor might do.

 

    	 	26	 

     

    

 

Anything in this Section 6.1(a)
to the contrary notwithstanding, the Second Lien Collateral Agent agrees that, except as provided in Section 6.1(b), it will
not exercise any rights under the power of attorney provided for in this Section 6.1(a) unless an Event of Default shall have
occurred and be continuing.

 

(b)          If
any Grantor fails to perform or comply with any of its agreements contained
herein, the Second Lien Collateral Agent, at its option, but without any obligation
so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement;
provided, however, that unless an Event of Default has occurred and is continuing
or time is of the essence, the Second Lien Collateral Agent shall not exercise this power
without first making demand on the Grantor and the
Grantor failing to promptly comply therewith.

 

(c)          [Reserved].

 

(d)          Each
Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue
hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until a Discharge of the Secured Obligations.

 

6.2          Authorization
of Financing Statements. Each Grantor acknowledges that pursuant to Section 9-509(b) of the UCC and any other applicable
law, the Second Lien Collateral Agent is authorized to file or record financing or continuation statements, and amendments thereto,
and other filing or recording documents or instruments with respect to the Collateral in such form and in such offices as the
Second Lien Collateral Agent reasonably determines necessary and appropriate to perfect or maintain the perfection of the security
interests of the Second Lien Collateral Agent under this Agreement. Each Grantor agrees that such financing statements may describe
the collateral in the same manner as described in the Security documents or as “all assets” or “all personal
property” of the such Grantor, whether now owned or hereafter existing or acquired by the such Grantor or such other description
as the Second Lien Collateral Agent, in its sole judgment, determines is necessary or advisable. A photographic or other reproduction
of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing
or recording in any jurisdiction.

 

6.3          Further
Assurances. Each Grantor agrees that from time to time, at the expense of such Grantor, it shall, subject to the Collateral
and Guarantee Requirement, promptly execute and deliver (subject to the First-Second Intercreditor Agreement) all further instruments
and documents and take all commercially reasonable further action that may be necessary or desirable, or that the Second Lien
Collateral Agent may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect
any security interest granted or purported to be granted hereby or to enable the Second Lien Collateral Agent to exercise and
enforce its rights and remedies hereunder in respect of any Collateral.

 

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Section
7.     Lien absolute; waiver of suretyship defenses

 

7.1          Lien
Absolute, Waivers   (a) All rights
of Second Lien Collateral Agent hereunder, and all obligations of
Grantors hereunder, shall be absolute and unconditional irrespective of, shall not be affected by, and shall remain in
full force and effect without regard to, and hereby waives all, rights, claims or defenses that it might otherwise have (now or
in the future) with respect to, in each case, each of the following (whether or not such Grantor
has knowledge thereof):

 

(i)          the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Secured Obligations or any guarantee or right of offset with respect thereto
at any time or from time to time held by any Secured Party;

 

(ii)         any
renewal, extension or acceleration of, or any increase in the amount of the Secured Obligations,
or any amendment, supplement, modification or waiver of, or any consent to departure from, the Loan Documents;

 

(iii)        any
failure or omission to assert or enforce or agreement or election not to assert or enforce,
delay in enforcement, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement
of, any claim or demand or any right, power or remedy (whether arising under any
Loan Documents, at law, in equity or otherwise) with respect to the Secured Obligations
or any agreement relating thereto, or with respect to any other guaranty of or security
for the payment of the Secured Obligations;

 

(iv)        any
change, reorganization or termination of the corporate structure or existence of Borrower or
any other Grantor or any of their Subsidiaries and any corresponding restructuring of the
Secured Obligations;

 

(v)         any
settlement, compromise, release, or discharge of, or acceptance or refusal of any offer of payment or performance with respect
to, or any substitutions for, the Secured Obligations or any subordination of the
Secured Obligations to any other obligations;

 

(vi)        the
validity, perfection, non-perfection or lapse in perfection, priority or avoidance of any security interest or lien, the release
of any or all collateral securing, or purporting to secure, the
Secured Obligations or any other impairment of such collateral;

 

(vii)        any
exercise of remedies with respect to any security for the Secured Obligations (including,
without limitation, any collateral, including the
Collateral securing or purporting to secure any of the Secured Obligations) at such
time and in such order and in such manner as the Second Lien Collateral Agent and the
Secured Parties may decide and whether or not every aspect thereof is commercially reasonable and whether or not such action
constitutes an election of remedies and even if such action operates to impair or extinguish any right of reimbursement or subrogation
or other right or remedy that any Grantor would otherwise have and without limiting the
generality of the foregoing or any other provisions hereof, each
Grantor hereby expressly waives any and all benefits which might otherwise be available to such
Grantor under applicable law, including, without limitation, California Civil Code Sections 2809, 2810, 2819, 2939, 2845,
2848, 2849, 2850, 2855, 2899 and 3433; and

 

    	 	28	 

     

    

 

(viii)       any
other circumstance whatsoever which may or might in any manner or to any extent vary the risk of any
Grantor as an obligor in respect of the Secured Obligations or which constitutes,
or might be construed to constitute, an equitable or legal discharge of the Borrower or
any other Grantor for the Secured Obligations, or
of such Grantor under the guarantee contained in the Credit
Agreement or of any security interest granted by any Grantor, whether in a
Bankruptcy Proceeding or in any other instance.

 

(b)          In
addition each Grantor further waives any and all other defenses, set- offs or counterclaims
(other than a defense of payment or performance in full hereunder) which may at any time
be available to or be asserted by it, the Borrower or any other
Grantor or Person against any Secured Party, including,
without limitation, failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and
satisfaction and usury.

 

(c)          Each
Grantor waives diligence, presentment, protest, marshaling, demand for payment, notice
of dishonor, notice of default and notice of nonpayment to or upon the Borrower or any of
the other Grantors with respect to the Secured Obligations.
Except for notices provided for herein, each Grantor hereby waives notice (to the extent permitted
by applicable law) of any kind in connection with this Agreement or any collateral securing the Secured Obligations, including,
without limitation, the Collateral. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against
any Grantor, Second Lien Collateral Agent may, but shall be under no obligation to, make a similar demand on or otherwise pursue
such rights and remedies as it may have against Borrower, any other Grantor or any other Person or against any collateral security
or guarantee for the Secured Obligations or any right of offset with respect thereto, and any failure by Second Lien Collateral
Agent to make any such demand, to pursue such other rights or remedies or to collect any payments from Borrower, any other Grantor
or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any
release of Borrower, any other Grantor or any other Person or any such collateral security, guarantee or right of offset, shall
not relieve any Grantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of Secured Party against any Grantor. For the purposes hereof “demand”
shall include the commencement and continuance of any legal proceedings.

 

Section
8.     the Second Lien Collateral Agent

 

8.1          Authority
of Second Lien Collateral Agent. (a) Each Grantor acknowledges that the rights and responsibilities of the Second Lien Collateral
Agent under this Agreement with respect to any action taken by the Second Lien Collateral Agent or the exercise or non-exercise
by the Second Lien Collateral Agent of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall, as between the Second Lien Collateral Agent and the other Secured Parties,
be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them,
but, as between the Second Lien Collateral Agent and the Grantors, the Second Lien Collateral Agent shall be conclusively presumed
to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall
be under any obligation, or entitlement, to make any inquiry respecting such authority.

 

    	 	29	 

     

    

 

(b)          The
Second Lien Collateral Agent has been appointed to act as Second Lien Collateral Agent hereunder
by the Lenders and, by their acceptance of the benefits
hereof, the other Secured Parties. The Second Lien
Collateral Agent shall be obligated, and shall have the right hereunder, to make
demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action (including,
without limitation, the release or substitution of Collateral), solely in accordance
with this Agreement and the Credit Agreement. The
provisions of the Credit Agreement relating to the Second
Lien Collateral Agent, including without limitation, the provisions relating to resignation
or removal of the Second Lien Collateral Agent (subject to Section 8.3(e)
hereof) and the powers and duties and immunities of the Second Lien Collateral Agent,
are incorporated herein by this reference and shall survive any termination of the
Credit Agreement.

 

8.2          Duty
of Second Lien Collateral Agent. The Second Lien Collateral Agent’s sole duty
with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207
of the UCC or otherwise, shall be to deal with it in the same manner as the Second Lien Collateral Agent deals with similar property
for its own account. Neither the Second Lien Collateral Agent nor any other Secured Party nor any of their respective officers,
directors, partners, employees, agents, attorneys or other advisors, attorneys-in-fact or affiliates shall be liable for failure
to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell
or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever
with regard to the Collateral or any part thereof. The powers conferred on the Secured Parties hereunder are solely to protect
the Secured Parties’ interests in the Collateral and shall not impose any duty upon any Secured Party to exercise any such
powers. The Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact
or affiliates shall be responsible to any Grantor for any act or failure to act hereunder, except to the extent that any such
act or failure to act is found by a final and nonappealable decision of a court of competent jurisdiction to have resulted solely
and proximately from their own gross negligence or willful misconduct in breach of a duty owed to such Grantor.

 

8.3          Exculpation
of the Second Lien Collateral Agent. (a) The
Second Lien Collateral Agent shall not be responsible to any Secured Party for the
execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency
hereof or of any Security Document or the validity or perfection of any security interest or for any representations, warranties,
recitals or statements made herein or therein or made in any written or oral statements
or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by the
Second Lien Collateral Agent to the Secured Parties or by or on behalf of any
Secured Party to the Second Lien Collateral Agent or any
Secured Party in connection with the Security Documents and the transactions contemplated thereby or for the financial
condition or business affairs of any Loan Party or any other Person liable for the payment of any
Secured Obligations, nor shall the Second Lien Collateral Agent be required to ascertain
or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained
in any of the Security Documents or as to the existence or possible existence of any Event of
Default or Default or to make any disclosures with respect to the foregoing.

 

    	 	30	 

     

    

 

(b)          Neither
the Second Lien Collateral Agent nor any of its officers, partners, directors, employees
or agents shall be liable to the Secured Parties for any action taken or omitted by the
Second Lien Collateral Agent under or in connection with any of the Security Documents except to the extent caused solely
and proximately by the Second Lien Collateral Agent’s gross negligence or willful
misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. The
Second Lien Collateral Agent shall be entitled to refrain from any act or the taking of any action in connection herewith
or any of the Security Documents or from the exercise of any power, discretion or authority vested in it
hereunder or thereunder unless and until the Second Lien Collateral Agent shall have
been instructed in respect thereof by the Required Lenders and, upon such instruction, the
Second Lien Collateral Agent shall be entitled to act or (where so instructed) refrain from acting, or to exercise such
power, discretion or authority, in accordance with such written instructions. Without prejudice to the generality of the foregoing,
(i) the Second Lien Collateral Agent shall be entitled to rely, and shall be fully
protected in relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been
signed or sent by the proper Person or Persons, and shall be entitled to rely and shall
be protected in relying on opinions and judgments of attorneys (who may be attorneys for the Grantors
and their Subsidiaries), accountants, experts and other professional advisors selected
by it; and (ii) no Secured Party shall have any right of action whatsoever against
the Second Lien Collateral Agent as a result of the Second
Lien Collateral Agent acting or refraining from acting hereunder or under any of
the Security Documents in accordance with the Credit Agreement.

 

(c)          Without
limiting the indemnification provisions of the Credit Agreement, each of the
Secured Parties not party to the Credit Agreement severally agrees to indemnify the
Second Lien Collateral Agent, to the extent that the Second Lien Collateral Agent shall
not have been reimbursed by any Loan Party, for and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Second
Lien Collateral Agent in exercising its powers, rights and remedies or performing its duties
hereunder or under the Security Documents or otherwise in its capacity as the Second Lien
Collateral Agent in any way relating to or arising out of this Agreement or the Security
Documents; provided, no such Secured Party shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely
and proximately from the Second Lien Collateral Agent’s gross negligence or willful
misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. If any indemnity furnished
to the Second Lien Collateral Agent for any purpose shall, in the opinion of the
Second Lien Collateral Agent, be insufficient or become impaired, the Second Lien Collateral
Agent may call for additional indemnity and cease, or not commence, to do the acts insufficiently indemnified against until
such additional indemnity is furnished.

 

    	 	31	 

     

    

 

(d)          No
direction given to the Second Lien Collateral Agent which imposes, or purports to impose,
upon the Second Lien Collateral Agent any obligation not set forth in or arising under this
Agreement or any Security Document accepted or entered into by the
Second Lien Collateral Agent shall be binding upon the Second Lien Collateral Agent.

 

(e)          Prior
to the Discharge of the Secured Obligations, the Second
Lien Collateral Agent may resign at any time in accordance with Section 8.06
of the Credit Agreement. After the Second Lien Collateral
Agent’s resignation in accordance with Section 8.06 of the
Credit Agreement, the provisions of Section 8 hereof and of Section 8
of the Credit Agreement shall continue in effect for its benefit in respect of any actions
taken or omitted to be taken by it while it was acting as Second Lien Collateral Agent.
Upon the acceptance of any appointment as the Second Lien Collateral Agent by a successor
Second Lien Collateral Agent in accordance with Section 8.06 of the
Credit Agreement, the retiring Second Lien Collateral Agent shall promptly transfer
all Collateral within its possession or control to the possession or control of the successor
Second Lien Collateral Agent and shall execute and deliver such notices, instructions and assignments as may be necessary
or desirable to transfer the rights of the Second Lien Collateral Agent in respect of the
Collateral to the successor Second Lien Collateral Agent.

 

8.4          Delegation
of Duties.    The Second Lien Collateral Agent may perform any and all of its duties and exercise its rights and powers under
this Agreement or under any other Security Document by or through any one or more sub-agents appointed by the Second Lien Collateral
Agent and the Second Lien Collateral Agent shall not be liable or responsible for the actions or omissions of any such sub-agent
appointed with due care. The Second Lien Collateral Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Affiliates. All of the rights, benefits, and privileges (including the exculpatory
and indemnification provisions) of this Section 8 shall apply to any such sub-agent and to any of the Affiliates of the Second
Lien Collateral Agent and any such sub-agents, and shall apply to their respective activities as if such sub-agent and Affiliates
were named herein in connection with the transactions contemplated hereby and by the Security Documents. Notwithstanding anything
herein to the contrary, each sub-agent appointed by the Second Lien Collateral Agent or Affiliate of the Second Lien Collateral
Agent or Affiliate of any such sub-agent shall be a third party beneficiary under this Agreement with respect to all such rights,
benefits and privileges (including exculpatory rights and rights to indemnification) and shall have all of the rights and benefits
of a third party beneficiary, including an independent right of action to enforce such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) directly, without the consent or joinder of any other Person, against any or
all of the Loan Parties and the Secured Parties, and such rights, benefits and privileges (including exculpatory rights and rights
to indemnification) shall not be modified or amended without the consent of such sub-agent or Affiliate acting in such capacity.

 

8.5          No
Individual Foreclosure, Etc. No Secured Party shall have any right individually to
realize upon any of the Collateral or to enforce any guarantee of the
Secured Obligations except to the extent expressly contemplated by this Agreement or
the other Loan Documents, it being understood and agreed that all powers, rights and remedies
under the Loan Documents may be exercised solely by the
Second Lien Collateral Agent on behalf of the Secured Parties in accordance with
the terms thereof. Each Secured Party, whether or not a party
hereto, will be deemed, by its acceptance of the benefits of the
Collateral and of the guarantees of the Secured Obligations provided
hereunder and under any other Loan Documents, to have agreed to the foregoing provisions
and the other provisions of this Agreement. Without limiting the generality of the foregoing,
each Secured Party authorizes the Second Lien Collateral
Agent to credit bid all or any part of the Secured Obligations held by it.

 

    	 	32	 

     

    

 

8.6          Collateral
Agent. Article VIII of the Credit Agreement is incorporated by reference mutatis mutandis. The Second Lien Collateral
Agent has executed this Agreement as directed under and in accordance with the Credit Agreement and will perform this Agreement
solely in its capacity as Second Lien Collateral Agent. In performing under this Agreement, the Second Lien Collateral Agent shall
have all such rights, protections and immunities granted it under the Second Lien Credit Agreement.

 

Section
9.     MISCELLANEOUS

 

9.1          Amendments
in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except
by a written instrument executed by each affected Grantor and the Second Lien Collateral Agent, provided that any provision
of this Agreement imposing obligations on any Grantor may be waived by the Second Lien Collateral Agent in a written instrument
executed by the Second Lien Collateral Agent. After the Discharge of the Secured Obligations, the provisions of this Agreement
may be waived, amended, supplemented or otherwise modified by a written instrument executed by each Grantor. Notwithstanding anything
to the contrary contained in this Section 9.1, the Borrowers may amend the Schedules upon notice to Agent.

 

9.2          Notices.
All notices and other communications provided for herein to or upon the Second Lien Collateral Agent or any Grantor hereunder
shall be effected in the manner provided for in Section 9.01 of the Credit Agreement.

 

9.3          No
Waiver by Course of Conduct; Cumulative Remedies. No Secured Party shall by any act (except by a written instrument pursuant
to Section 9.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Secured
Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which such Secured Party would otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

9.4          Enforcement
Expenses; Indemnification. Each Grantor agrees to (a) pay or reimburse each Secured Party for all its costs and expenses incurred
in enforcing or preserving any rights under this Agreement and (b) indemnify each Secured Party, in each case to the same extent
that the Borrower is obligated to do so pursuant to Section 9.05 of the Credit Agreement. The agreements in this Section
shall survive repayment of the Secured Obligations and all other amounts payable under the Credit Agreement and the other Loan
Documents.

 

    	 	33	 

     

    

 

9.5          Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective permitted successors and assigns; provided that no Grantor may assign or otherwise transfer any of its rights
or obligations under this Agreement without the prior written consent of the Second Lien Collateral Agent, unless permitted under
the Credit Agreement, and any such assignment or transfer without such consent shall be null and void and (ii) and no Secured
Party may assign or otherwise transfer its rights or obligations hereunder except in accordance with the Loan Documents.

 

9.6          Set-Off.
Each Grantor hereby irrevocably authorizes each Secured Party at any time and from time to time while an Event of Default shall
have occurred and be continuing, 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 owing by such Secured Party to or for
the credit or the account of such Grantor, or any part thereof in such amounts as such Secured Party may elect, against any and
all of the obligations of such Grantor to such Secured Party hereunder, whether arising hereunder, under the Credit Agreement,
any other Loan Document or otherwise, as such Secured Party may elect, whether or not any Secured Party has made any demand for
payment and although such obligations may be unmatured, provided that, if such Secured Party is a Lender, it complies with
Section 9.06 of the Credit Agreement. Each Secured Party exercising any right of set-off shall notify such Grantor promptly
of any such set-off and the application made by such Secured Party of the proceeds thereof, provided that the failure to
give such notice shall not affect the validity of such set-off and application. The rights of each Secured Party under this Section
are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Secured Party
may have.

 

9.7          Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which, when
taken together, shall constitute but one contract. Delivery of an executed counterpart to this Agreement by facsimile (or other
electronic) transmission pursuant to procedures approved by the Administrative Agent shall be as effective as delivery of a manually
signed original.

 

9.8          Severability.
In the event any one 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.

 

9.9          Section
Headings. The Section headings and 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.

 

    	 	34	 

     

    

 

9.10       Integration/Conflict.
This Agreement and the other Loan Documents represent the entire agreement of the Grantors, the Second Lien Collateral Agent and
the other Secured Parties with respect to the subject matter hereof and thereof, and supersede any and all previous agreements
and understandings, oral or written, relating to the subject matter hereof and thereof. There are no promises, undertakings, representations
or warranties by the Second Lien Collateral Agent or any other Secured Party relative to the subject matter hereof and thereof
not expressly set forth or referred to herein or therein. In the event that any of the Collateral hereunder is also subject to
a valid and enforceable Lien under the terms of a Mortgage securing the Secured Obligations and the terms thereof are inconsistent
with the terms of this Agreement, then with respect to such Collateral, the terms of such Mortgage shall control in the case of
fixtures and real property leases, letting and licenses of, and contracts and agreements relating to the lease of, real property,
and the terms of this Agreement shall control in the case of all other Collateral. In the event of any conflict between the terms
of this Agreement and this Credit Agreement, the terms of the Credit Agreement shall govern and control.

 

9.11       GOVERNING
LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICTS OF LAW RULES THAT WOULD RESULT IN THE APPLICATION OF A DIFFERENT GOVERNING LAW (OTHER THAN ANY MANDATORY PROVISIONS
OF THE UCC RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OR PRIORITY OF THE SECURITY INTERESTS).

 

9.12       Submission
to Jurisdiction; Waivers. Each Grantor hereby irrevocably and unconditionally:

 

(a)          submits
for itself and its property in any legal action or proceeding relating to this Agreement and
the other Loan Documents (whether arising in contract, tort or otherwise) to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York sitting in the
Borough of Manhattan, the courts of the United States for the Southern District of New York sitting in the Borough of Manhattan,
and appellate courts from any thereof;

 

(b)          agrees
that all claims in respect of any such action or proceeding shall be heard and determined in such New York state court or, to the
fullest extent permitted by applicable law, in such federal court;

 

(c)          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 and that nothing in this agreement or
any other Loan Document shall affect any right that any Secured Party may otherwise have
to bring any action or proceeding relating to this Agreement or any other Loan Document
against such Grantor or any of its assets in the courts of any jurisdiction;

 

(d)          waives,
to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any
action or proceeding arising out of or relating to this Agreement or any other Loan Document
in any court referred to in paragraph (a) of this Section (and irrevocably waives to the fullest extent permitted by applicable
law the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court);

 

    	 	35	 

     

    

 

(e)          consents
to service of process in the manner provided in Section 9.17 of the
Credit Agreement (and agrees that nothing in this Agreement will affect the right
of any party hereto to serve process in any other manner permitted by applicable law); and

 

(f)          waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover any special, exemplary, punitive or consequential
damages.

 

9.13       Acknowledgments.
Each Grantor hereby acknowledges that:

 

(a)          in
connection with all aspects of each transaction contemplated hereby, it has consulted its own legal advisors to the extent it has
deemed appropriate;

 

(b)          no
Secured Party has any fiduciary relationship with or duty to any Grantor arising
out of or in connection with this Agreement or any of the other Loan Documents
and the provisions of Section 9.23 of the Credit Agreement are incorporated herein, mutatis mutandis (to apply to this
Agreement rather than the Credit Agreement), and the relationship between the Grantors,
on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor; and

 

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

 

9.14       Additional
Grantors. Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to Section 5.11
of the Credit Agreement shall become a Grantor as required by the Credit Agreement for all purposes of this Agreement upon execution
and delivery by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

 

9.15       Releases.
(a) The Collateral shall be released from the Liens created hereby as set forth in Section 9.20 of the Credit Agreement and
Section 2(a) of this Agreement. This Agreement and all obligations (other than those expressly stated to survive such termination)
of the Second Lien Collateral Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance
of any act by any party, and all rights to the Collateral shall revert to the Grantors upon a Discharge of the Secured Obligations.

 

(b)          Each
Grantor acknowledges that, except upon release pursuant to clause (a) above, it is not authorized to file any financing
statement or amendment or termination statement with respect to any financing statement originally filed in connection herewith
without the prior written consent of the Second Lien Collateral Agent, subject to such
Grantor’s rights under Section 9-509(d)(2) of the UCC.

 

    	 	36	 

     

    

 

9.16          Waiver
of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, SECOND LIEN COLLATERAL AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

[Remainder of page left
intentionally blank.]

 

    	 	37	 

     

    

 

IN WITNESS WHEREOF, each of
the undersigned has caused this Second Lien Collateral Agreement to be duly executed and delivered as of the date first above written.

 

	 	GRANTORS:
	 	 
	 	DIFFERENTIAL BRANDS GROUP INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	DBG HOLDINGS SUBSIDIARY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	DBG SUBSIDIARY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	HUDSON CLOTHING HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	HUDSON CLOTHING, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	DFBG SWIMS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	HC ACQUISITION HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	RG PARENT LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	ROBERT GRAHAM HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	ROBERT GRAHAM DESIGNS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	ROBERT GRAHAM RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	RGH GROUP LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	MARCO BRUNELLI IP, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	CENTRIC BRANDS HOLDING LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	AMERICAN MARKETING ENTERPRISES INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	BRIEFLY STATED HOLDINGS INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	BRIEFLY STATED INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG JEWELRY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	KHQ INVESTMENT LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	KHQ ATHLETICS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	ROSETTI HANDBAGS AND ACCESSORIES, LTD.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG ACCESSORIES GROUP LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG SOCKS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	VZI INVESTMENT CORP.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	GBG-BCBG LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG-BCBG RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG DENIM USA, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG BEAUTY LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	ADDED EXTRAS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	LOTTA LUV BEAUTY LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	GBG WEST LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	F&T APPAREL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	GBG DENIM RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	INNOVO WEST SALES, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 
	 	CENTRIC BEBE LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

	 	SECOND LIEN COLLATERAL AGENT:
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Second Lien Collateral Agent
	 	 	 
	 	By:	/s/Lisa Dowd
	 	 	Name: Lisa Dowd
	 	 	Title: Vice President

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

Schedule 1

 

DESCRIPTION OF PLEDGED INVESTMENT PROPERTY

 

Schedule 2

 

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

 

Schedule 3

 

EXACT LEGAL NAME, LOCATION OF JURISDICTION OF
ORGANIZATION AND CHIEF EXECUTIVE OFFICE

 

Schedule 4

 

LOCATION OF INVENTORY AND EQUIPMENT

 

 

 

Schedule 5

 

LOCATION OF INVENTORY AND EQUIPMENT (WITH BAILEES,
WAREHOUSEMAN OR SIMILAR PARTIES)

 

Schedule 6

 

GOVERNMENT RECEIVABLES

 

Signature
Page to SECOND LIEN Collateral Agreement

 

    	 	 	 

     

    

 

Schedule 7

 

Copyrights and Copyright Applications:

 

[Attached]

 

Patent and Patent Applications:

 

[Attached]

 

Trademarks and Trademark Applications:

 

[Attached]

Schedule 8

 

VEHICLES

 

Schedule 9

 

LETTER OF CREDIT RIGHTS

 

Schedule 10

 

COMMERCIAL TORT CLAIMS

 

    	 	10	 

     

    

 

Exhibit
A to

Second
Lien Collateral Agreement

 

FORM
OF UNCERTIFICATED SECURITIES CONTROL AGREEMENT

 

This CONTROL AGREEMENT
(as amended, supplemented or otherwise modified from time to time, the “Control Agreement”) dated as of _______
___, ____, is made by and among _______________, a __________ corporation (the “Grantor”), U.S. Bank National
Association, as Second Lien Collateral Agent (in such capacity, the “Second Lien Collateral Agent”) for the
Secured Parties (as defined in the Second Lien Collateral Agreement referred to below), and ____________, a ____________ corporation
(the “Issuer”).

 

WHEREAS, the Grantor has
granted to the Second Lien Collateral Agent, for the benefit of the Secured Parties, a security interest in any Uncertificated
Security of the Issuer owned by the Grantor from time to time (collectively, the “Pledged Securities”), and
all Proceeds thereof (collectively, with the Pledged Securities, the “Collateral”) pursuant to a Second Lien
Collateral Agreement, dated as of October 29, 2018 (as amended, restated, supplemented, or otherwise modified from time to time,
the “Second Lien Collateral Agreement”), among the Grantor and the other persons party thereto as grantors in
favor of the Second Lien Collateral Agent.

 

Capitalized terms used
but not defined herein shall have the respective meanings given thereto in the Second Lien Collateral Agreement, and if not defined
therein, shall have the respective meanings given thereto in the Credit Agreement.

 

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

 

SECTION 1.     Notice of
Security Interest. The Grantor, the Second Lien Collateral Agent and the Issuer are entering into this Control Agreement to
perfect, and to confirm the priority of, the security interest of the Second Lien Collateral Agent, for the benefit of the Secured
Parties, in the Collateral. The Issuer acknowledges that this Control Agreement constitutes written notification to the Issuer
of the Second Lien Collateral Agent’s security interest in the Collateral. The Issuer agrees to promptly record in its books
and records the pledge of the Pledged Securities in accordance with the Security Agreement and, following the occurrence and during
the continuance of an Event of Default for which notice of acceleration has been given, following the reasonable request by the
Second Lien Collateral Agent, to register the Second Lien Collateral Agent as the registered owner of any or all of the Pledged
Securities. The Issuer acknowledges that the Second Lien Collateral Agent has control over the Collateral.

 

SECTION 2.     Collateral.
The Issuer hereby represents and warrants to, and agrees with the Grantor and the Second Lien Collateral Agent that (i) the
terms of any limited liability company interests or partnership interests included in the Collateral from time to time shall expressly
provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect from time to time in the State
of [ISSUER’S JURISDICTION], (ii) the Pledged Securities are uncertificated securities, (iii) the issuer’s jurisdiction
is, and during the term of this Control Agreement shall remain, the State of [ISSUER’S JURISDICTION], (iv) Schedule 1
contains a true and complete description of the Pledged Securities as of the Closing Date and (v) except for the claims and interests
of the Second Lien Collateral Agent and the Grantor in the Collateral, the Issuer does not know of any claim to or security interest
or other interest in the Collateral.

 

    	 	10	 

     

    

 

SECTION 3.     Control.
The Issuer hereby agrees, following written direction from the Second Lien Collateral Agent and without further consent from the
Grantor to, upon the occurrence and during the continuance of an Event of Default for which notice of acceleration has been given:
(i) comply with any instruction received by it from the Second Lien Collateral Agent in writing that (x) states that an Event of
Default has occurred and is continuing and (y) is otherwise in accordance with the terms of the Collateral Agreement, without any
other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying,
and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Pledged Securities
directly to the Second Lien Collateral Agent.

 

SECTION 4.     Other Agreements.
The Issuer shall notify promptly the Second Lien Collateral Agent and the Grantor if any other person asserts any lien, encumbrance,
claim (including any adverse claim) or security interest in or against any of the Collateral. In the event of any conflict between
the provisions of this Control Agreement and any other agreement governing the Pledged Securities or the Collateral, the provisions
of this Control Agreement shall control.

 

SECTION 5.     Protection
of Issuer. The Issuer may rely and shall be protected in acting upon any notice, instruction or other communication that it
reasonably believes to be genuine and authorized.

 

SECTION 6.     Termination.
This Control Agreement shall terminate automatically upon receipt by the Issuer of written notice executed by the Second Lien Collateral
Agent that (i) the Discharge of the Secured Obligations has occurred, or (ii) all of the Collateral has been released, whichever
is sooner, and the Issuer shall thereafter be relieved of all duties and obligations hereunder.

 

SECTION 7.     Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy),
and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or [three (3)
days] after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, to the Grantor’s
and the Second Lien Collateral Agent’s addresses as set forth in the Second Lien Collateral Agreement, and to the Issuer’s
address as set forth below, or to such other address as any party may give to the others in writing for such purpose:

 

[Name of Issuer]

[Address of Issuer]

Attention:______________________

Telephone: (     )
     -______________

Telecopy: (     )
     -_______________

 

    	 	A-2	 

     

    

 

SECTION 8.     Amendments
in Writing. None of the terms or provisions of this Control Agreement may be waived, amended, supplemented or otherwise modified
except by a written instrument executed by the parties hereto.

 

SECTION 9.     Entire Agreement.
This Control Agreement and the Second Lien Collateral Agreement constitute the entire agreement and supersede all other prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

SECTION 10.     Execution
in Counterparts. This Control Agreement may be executed in any number of counterparts by one or more parties to this Control
Agreement and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an
executed signature page of this Control Agreement by facsimile or other electronic transmission (e.g., “pdf”, or “tif”
format) shall be effective as delivery of a manually executed counterpart hereof.

 

SECTION 11.     Successors
and Assigns. The provisions of this Control Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective permitted successors and assigns, provided that neither the Grantor nor the Issuer may assign, transfer
or delegate any of its rights or obligations under this Control Agreement without the prior written consent of the Second Lien
Collateral Agent and any such assignment, transfer or delegation without such consent shall be null and void.

 

SECTION 12.     Severability.
In the event any one or more of the provisions contained in this Control Agreement should be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto 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.

 

SECTION 13.     Section
Headings. The Section headings used in this Control Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

 

SECTION 14.     Submission
to Jurisdiction; Waivers. Each of the Grantor and the Issuer hereby irrevocably and unconditionally:

 

(a)          submits
for itself and its property in any legal action or proceeding relating to this Control Agreement,
or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the
State of New York sitting in the Borough of Manhattan, the courts of the United States for the Southern District of New York sitting
in the Borough of Manhattan, and appellate courts from any thereof;

 

    	 	A-3	 

     

    

 

(b)          agrees
that all claims in respect of any such action or proceeding shall be heard and determined in such New York state court or, to the
fullest extent permitted by applicable law, in such federal court;

 

(c)          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 and that nothing in this Control Agreement
shall affect any right that any Secured Party may otherwise have to bring any action
or proceeding relating to this Control Agreement or any other Loan Document against the
Grantor or any of its assets in the courts of any jurisdiction;

 

(d)          consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(e)          agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to the Grantor at its address
referred to in Section 7 of this Control Agreement or at such other address of which
the Second Lien Collateral Agent shall have been notified pursuant thereto;

 

(f)          agrees
that nothing herein shall affect the right to effect service of process in any other manner
permitted by law; and

 

(g)          waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover any special, exemplary, punitive or consequential
damages.

 

SECTION 15.     GOVERNING
LAW AND JURISDICTION. THIS CONTROL AGREEMENT HAS BEEN DELIVERED TO AND ACCEPTED BY THE SECOND LIEN COLLATERAL AGENT AND
WILL BE DEEMED TO BE MADE IN THE STATE OF NEW YORK. THIS CONTROL AGREEMENT AND ANY DISPUTE, CLAIM OR CONTROVERSY ARISING
OUT OF OR RELATING TO THIS CONTROL AGREEMENT (WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE) SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW RULES THAT WOULD RESULT
IN THE APPLICATION OF A DIFFERENT GOVERNING LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW OF GOVERNING
PERFECTION AND EFFECT OF PERFECTION OR PRIORITY OF THE SECURITY INTERESTS).

 

SECTION 16.     WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS CONTROL
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT, BREACH OF DUTY, COMMON LAW, STATUTE OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, SECOND LIEN COLLATERAL AGENT OR ATTORNEY OF ANY OTHER PERSON
HAS REPRESENTED, EXPRESSLY OR OTHERWISE THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE, THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS CONTROL AGREEMENT BY, AMONG
OTHER THINS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    	 	A-4	 

     

    

 

SECTION 17.     First-Second
Intercreditor Agreement Governs. Notwithstanding anything herein to the contrary, the Liens granted to the Collateral Agent
pursuant to this Agreement in any Collateral and the exercise of any right or remedy by the Collateral Agent with respect to any
Collateral hereunder are subject to the provisions of the First-Second Intercreditor Agreement. In the event of any conflict between
the terms of the First-Second Intercreditor Agreement and this Agreement, the terms of the First-Second Intercreditor Agreement
shall govern and control.

 

SECTION 18.     Collateral
Agent. The Second Lien Collateral Agent has executed this Agreement as directed under and in accordance with the Credit Agreement
and will perform this Agreement solely as Second Lien Collateral Agent. In performing under this Agreement, the Second Lien Collateral
Agent shall have all such rights, protections and immunities granted to it under the Credit Agreement.

 

    	 	A-5	 

     

    

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Control Agreement to be duly executed and delivered as of the date first above written.

 

	 	[NAME OF GRANTOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Second Lien Collateral Agent
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[NAME OF ISSUER]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	A-6	 

     

    

 

EXHIBIT B-1

TO SECOND LIEN COLLATERAL AGREEMENT

 

FORM OF COPYRIGHT SECURITY AGREEMENT

 

This COPYRIGHT SECURITY
AGREEMENT, dated as of [__________], 20[__] (this “Agreement”), is made by each of the signatories hereto
indicated as a “Grantor” (each a “Grantor” and collectively, the “Grantors”)
in favor of U.S. Bank National Association, Second Lien Collateral Agent for the Secured Parties (in such capacity and together
with its successors and assigns in such capacity, the “Second Lien Collateral Agent”).

 

WHEREAS, pursuant
to that certain Second Lien Credit Agreement dated as of October 29, 2018 by and among DIFFERENTIAL BRANDS GROUP INC., a Delaware
corporation, the lenders from time to time party thereto (the “Lenders”), the Second Lien Collateral Agent for the
Lenders, and the other parties from time to time party thereto (as the same may hereafter be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), the Lenders have severally agreed to make extensions
of credit to the Borrower upon the terms and conditions set forth therein, to the Borrower; and

 

WHEREAS, as a condition
precedent to the obligation of the Lenders to make their respective extension of credit to the Borrower under the Credit Agreement,
the Grantors entered into a Second Lien Collateral Agreement dated as of October 29, 2018 (as amended, restated, supplemented or
otherwise modified from time to time, the “Second Lien Collateral Agreement”) between each of the Grantors and
the Second Lien Collateral Agent, pursuant to which each of the Grantors assigned, transferred and granted to the Second Lien Collateral
Agent, for the benefit of the Secured Parties, a security interest in the Copyright Collateral (as defined below);

 

WHEREAS, pursuant
to the Second Lien Collateral Agreement, each Grantor agreed to execute and deliver this Agreement, in order to record the security
interest granted to the Second Lien Collateral Agent, for the benefit of the Secured Parties, with the United States Copyright
Office.

 

NOW, THEREFORE,
in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Grantors hereby agree with the Second Lien Collateral Agent as follows:

 

SECTION 1.     Defined Terms

 

Capitalized terms used
but not defined herein shall have the respective meanings given thereto in the Second Lien Collateral Agreement, and if not defined
therein, shall have the respective meanings given thereto in the Credit Agreement.

 

    	 	EXHIBIT B-1	 

     

    

 

SECTION 2.     Grant of Security Interest

 

Each Grantor hereby collaterally
assigns, pledges and grants to the Second Lien Collateral Agent, for the benefit of the Secured Parties, a security interest in
all of the following property, in each case, wherever located and now owned or at any time hereafter acquired and owned by such
Grantor (collectively, the “Copyright Collateral”) as collateral security for the prompt and complete payment
and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)          all
works of authorship and all intellectual property rights therein, all United States and foreign copyrights (whether or not the
underlying works of authorship have been published), including but not limited to copyrights in software and databases, all designs
(including but not limited to all industrial designs, “Protected Designs” within the meaning of 17 U.S.C. 1301 et.
Seq. and Community designs), and all “Mask Works” (as defined in 17 U.S.C. 901 of the U.S. Copyright Act), whether
registered or unregistered, and with respect to any and all of the foregoing: (i) all registrations and applications for registration
thereof including, without limitation, the registrations and applications listed in Schedule A attached hereto, (ii) all
extensions, renewals, and restorations thereof, (iii) all rights to sue or otherwise recover for any past, present and future infringement
or other violation thereof, (iv) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income,
payments, claims, damages and proceeds of suit now or hereafter due and/or payable with respect thereto, and (v) all other rights
of any kind accruing thereunder or pertaining thereto throughout the world (collectively “Copyrights”); and

 

(b)          all
agreements, licenses and covenants pursuant to which such Grantor has been granted exclusive rights in any registered Copyrights
or has otherwise been granted or has granted a covenant not to sue for infringement or other violation of any registered Copyrights,
including, without limitation, each agreement listed in Schedule A attached hereto.

 

SECTION 3.     Security Agreement

 

The security interest granted
pursuant to this Agreement is granted in conjunction with the security interest granted to the Second Lien Collateral Agent, for
the benefit of the Secured Parties, pursuant to the Second Lien Collateral Agreement, and the Grantors hereby acknowledge and affirm
that the rights and remedies of the Second Lien Collateral Agent with respect to the security interest in the Copyright Collateral
made and granted hereby are more fully set forth in the Second Lien Collateral Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein. In the event that any provision of this Agreement is deemed to conflict
with the Second Lien Collateral Agreement, the provisions of the Second Lien Collateral Agreement shall control.

 

    	 	EXHIBIT B-1	 

     

    

 

SECTION 4.     Governing Law

 

THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW RULES THAT WOULD
RESULT IN THE APPLICATION OF A DIFFERENT GOVERNING LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING
PERFECTION AND EFFECT OF PERFECTION OF THE SECURITY INTERESTS).

 

SECTION 5.     Counterparts

 

This Agreement may be executed
in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute
but one contract. Delivery of an executed counterpart to this Agreement by facsimile (or other electronic) transmission pursuant
to procedures approved by the Administrative Agent shall be as effective as delivery of a manually signed original.

 

SECTION 6. Collateral Agent

 

The Second Lien Collateral
Agent has executed this Agreement as directed under and in accordance with the Credit Agreement and will perform this Agreement
solely as Second Lien Collateral Agent. In performing under this Agreement, the Second Lien Collateral Agent shall have all such
rights, protections and immunities granted to it under the Credit Agreement.

 

[Remainder of page intentionally left blank]

 

    	 	EXHIBIT B-1	 

     

    

 

IN WITNESS WHEREOF,
each Grantor has caused this Agreement to be executed and delivered by its duly authorized officer as of the date first set forth
above.

 

	 	[NAME OF GRANTOR],
	 	as Grantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	EXHIBIT B-1	 

     

    

 

	Accepted and Agreed:	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 
	as Second Lien Collateral Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	EXHIBIT B-1	 

     

    

 

SCHEDULE A

to

COPYRIGHT SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS

 

	Title	 	Registration No.	 	Registration Date
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

COPYRIGHT APPLICATIONS

 

	Title	 	
        Application /

        Case No.
	 	Filing Date
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

EXCLUSIVE COPYRIGHT LICENSES

 

	
        Description of Copyright 

        License
	 	Name of Licensor	 	
        Registration Number of

        underlying Copyright

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	EXHIBIT B-1	 

     

    

 

EXHIBIT B-2

TO SECOND LIEN COLLATERAL AGREEMENT

 

FORM OF PATENT SECURITY AGREEMENT

 

This PATENT SECURITY
AGREEMENT, dated as of [__________], 20[__] (this “Agreement”), is made by each of the signatories hereto
indicated as a Grantor (each a “Grantor” and collectively, the “Grantors”) in favor of U.S.
Bank National Association, as Second Lien Collateral Agent for the Secured Parties (in such capacity and together with its successors
and assigns in such capacity, the “Second Lien Collateral Agent”).

 

WHEREAS, pursuant
to that certain Second Lien Credit Agreement dated as of October 29, 2018 by and among DIFFERENTIAL BRANDS GROUP INC., a Delaware
corporation, the lenders from time to time party thereto (the “Lenders”), the Second Lien Collateral Agent for
the Lenders, and the other parties from time to time party thereto (as the same may hereafter be amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and conditions set forth therein, to the Borrower; and

 

WHEREAS, as a condition
precedent to the obligation of the Lenders to make their respective extension of credit to the Borrower under the Credit Agreement,
the Grantors entered into a Second Lien Collateral Agreement dated as of October 29, 2018 (as amended, restated, supplemented or
otherwise modified from time to time, the “Second Lien Collateral Agreement”) between each of the Grantors and
the Second Lien Collateral Agent, pursuant to which each of the Grantors assigned, transferred and granted to the Second Lien Collateral
Agent, for the benefit of the Secured Parties, a security interest in the Patent Collateral (as defined below);

 

WHEREAS, pursuant
to the Second Lien Collateral Agreement, each Grantor agreed to execute and deliver this Agreement, in order to record the security
interest granted to the Second Lien Collateral Agent, for the benefit of the Secured Parties, with the United States Patent and
Trademark Office.

 

NOW, THEREFORE,
in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Grantors hereby agree with the Second Lien Collateral Agent as follows:

 

SECTION 1. Defined Terms

 

Capitalized terms used
but not defined herein shall have the respective meanings given thereto in the Second Lien Collateral Agreement, and if not defined
therein, shall have the respective meanings given thereto in the Credit Agreement.

 

    	 	EXHIBIT B-2	 

     

    

 

SECTION 2. Grant of Security Interest.

 

Each Grantor hereby collaterally
assigns, pledges and grants to the Second Lien Collateral Agent, for the benefit of the Secured Parties, a security interest in
all of the following property, in each case, wherever located and now owned or at any time hereafter acquired and owned by such
Grantor (collectively, the “Patent Collateral”) as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

all patentable inventions and designs,
all United States, foreign, and multinational patents, certificates of invention, and similar industrial property rights, and applications
for any of the foregoing, including without limitation: (i) each patent and patent application listed in Schedule A attached
hereto (ii) all reissues, substitutes, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations
thereof, (iii) all inventions and improvements described and claimed therein, (iv) all rights to sue or otherwise recover for any
past, present and future infringement or other violation thereof, (v) all Proceeds of the foregoing, including, without limitation,
license fees, royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect
thereto, income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto, and (vi) all
other rights of any accruing thereunder or pertaining thereto throughout the world.

 

SECTION 3.     Security Agreement

 

The security interest granted
pursuant to this Agreement is granted in conjunction with the security interest granted to the Second Lien Collateral Agent, for
the benefit of the Secured Parties, pursuant to the Second Lien Collateral Agreement, and the Grantors hereby acknowledge and affirm
that the rights and remedies of the Second Lien Collateral Agent with respect to the security interest in the Patent Collateral
made and granted hereby are more fully set forth in the Second Lien Collateral Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein. In the event that any provision of this Agreement is deemed to conflict
with the Second Lien Collateral Agreement, the provisions of the Second Lien Collateral Agreement shall control.

 

SECTION 4.     Governing Law

 

THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW RULES THAT WOULD
RESULT IN THE APPLICATION OF A DIFFERENT GOVERNING LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING
PERFECTION AND EFFECT OF PERFECTION OF THE SECURITY INTERESTS).

 

    	 	EXHIBIT B-2	 

     

    

 

SECTION 5.     Counterparts

 

This Agreement may be executed
in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute
but one contract. Delivery of an executed counterpart to this Agreement by facsimile (or other electronic) transmission pursuant
to procedures approved by the Administrative Agent shall be as effective as delivery of a manually signed original.

 

SECTION 6. Collateral Agent

 

The Second Lien Collateral
Agent has executed this Agreement as directed under and in accordance with the Credit Agreement and will perform this Agreement
solely as Second Lien Collateral Agent. In performing under this Agreement, the Second Lien Collateral Agent shall have all such
rights, protections and immunities granted to it under the Credit Agreement.

 

[Remainder of page intentionally left blank]

 

    	 	EXHIBIT B-2	 

     

    

 

IN WITNESS WHEREOF,
each Grantor has caused this Agreement to be executed and delivered by its duly authorized officer as of the date first set forth
above.

 

	 	[NAME OF GRANTOR],
	 	as Grantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	EXHIBIT B-2	 

     

    

 

	Accepted and Agreed:	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 
	as Second Lien Collateral Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	EXHIBIT B-2	 

     

    

 

SCHEDULE A

to

PATENT SECURITY AGREEMENT

 

PATENTS AND PATENT APPLICATIONS

 

	Title	 	
        Application

        No.
	 	Filing Date	 	Patent No.	 	Issue Date
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	 	EXHIBIT B-2	 

     

    

 

EXHIBIT B-3

TO SECOND LIEN COLLATERAL AGREEMENT

 

FORM OF TRADEMARK SECURITY AGREEMENT

 

This TRADEMARK SECURITY
AGREEMENT, dated as of [__________], 20[__] (this “Agreement”), is made by each of the signatories hereto
indicated as a Grantor (each a “Grantor” and collectively, the “Grantors”) in favor of U.S.
Bank National Association, Second Lien Collateral Agent for the Secured Parties (in such capacity and together with its successors
and assigns in such capacity, the “Second Lien Collateral Agent”).

 

WHEREAS, pursuant
to that certain Second Lien Credit Agreement dated as of October 29, 2018 by and among DIFFERENTIAL BRANDS GROUP INC., a Delaware
corporation, the lenders from time to time party thereto (the “Lenders”), the Second Lien Collateral Agent for
the Lenders, and the other parties from time to time party thereto (as the same may hereafter be amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and conditions set forth therein, to the Borrower; and

 

WHEREAS, as a condition
precedent to the obligation of the Lenders to make their respective extension of credit to the Borrower under the Credit Agreement,
the Grantors entered into a Second Lien Collateral Agreement dated as of October 29, 2018 (as amended, restated, supplemented or
otherwise modified from time to time, the “Second Lien Collateral Agreement”) between each of the Grantors and
the Second Lien Collateral Agent, pursuant to which each of the Grantors assigned, transferred and granted to the Second Lien Collateral
Agent, for the benefit of the Secured Parties, a security interest in the Trademark Collateral (as defined below);

 

WHEREAS, pursuant
to the Second Lien Collateral Agreement, each Grantor agreed to execute and deliver this Agreement, in order to record the security
interest granted to the Second Lien Collateral Agent, for the benefit of the Secured Parties, with the United States Patent and
Trademark Office.

 

NOW, THEREFORE,
in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Grantors hereby agree with the Second Lien Collateral Agent as follows:

 

SECTION 1.     Defined Terms

 

Capitalized terms used
but not defined herein shall have the respective meanings given thereto in the Second Lien Collateral Agreement, and if not defined
therein, shall have the respective meanings given thereto in the Credit Agreement.

 

    	 	EXHIBIT B-3	 

     

    

 

SECTION 2.     Grant of Security Interest
in Trademark Collateral

 

SECTION 2.1     Grant
of Security. Each Grantor hereby collaterally assigns, pledges and grants to the Second Lien Collateral Agent, for the benefit
of the Secured Parties, a security interest in all of the following property, in each case, wherever located and now owned or at
any time hereafter acquired and owned by such Grantor (collectively, the “Trademark Collateral”) as collateral
security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise)
of such Grantor’s Obligations:

 

all domestic, foreign and multinational
trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade dress,
trade styles, logos, Internet domain names, other indicia of origin or source identification, and general intangibles of a like
nature, whether registered or unregistered, and with respect to any and all of the foregoing: (i) all registrations and applications
for registration thereof including, without limitation, the registrations and applications listed in Schedule A attached hereto,
(ii) all extension and renewals thereof, (iii) all of the goodwill of the business connected with the use of and symbolized by
any of the foregoing, (iv) all rights to sue or otherwise recover for any past, present and future infringement, dilution, or other
violation thereof, (v) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments,
claims, damages and proceeds of suit now or hereafter due and/or payable with respect thereto, and (vi) all other rights of any
kind accruing thereunder or pertaining thereto throughout the world.

 

SECTION 2.2     Certain
Limited Exclusions. Notwithstanding anything herein to the contrary, in no event shall the Trademark Collateral include
or the security interest granted under Section 2.1 hereof attach to any “intent-to-use” application for registration
of a Trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement
of Use” pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c)
of the Lanham Act with respect thereto, solely 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 any registration that issues from such intent-to-use
application under applicable federal law.

 

SECTION 3.     Security Agreement

 

The security interest granted
pursuant to this Agreement is granted in conjunction with the security interest granted to the Second Lien Collateral Agent, for
the benefit of the Secured Parties, pursuant to the Second Lien Collateral Agreement, and the Grantors hereby acknowledge and affirm
that the rights and remedies of the Second Lien Collateral Agent with respect to the security interest in the Trademark Collateral
made and granted hereby are more fully set forth in the Collateral Agreement, the terms and provisions of which are incorporated
by reference herein as if fully set forth herein. In the event that any provision of this Agreement is deemed to conflict with
the Second Lien Collateral Agreement, the provisions of the Second Lien Collateral Agreement shall control.

 

    	 	EXHIBIT B-3	 

     

    

 

SECTION 4.     Governing Law

 

THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW RULES THAT WOULD
RESULT IN THE APPLICATION OF A DIFFERENT GOVERNING LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING
PERFECTION AND EFFECT OF PERFECTION OF THE SECURITY INTERESTS).

 

SECTION 5.     Counterparts

 

This Agreement may be executed
in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute
but one contract. Delivery of an executed counterpart to this Agreement by facsimile (or other electronic) transmission pursuant
to procedures approved by the Administrative Agent shall be as effective as delivery of a manually signed original.

 

SECTION 6. Collateral Agent

 

The Second Lien Collateral
Agent has executed this Agreement as directed under and in accordance with the Credit Agreement and will perform this Agreement
solely as Second Lien Collateral Agent. In performing under this Agreement, the Second Lien Collateral Agent shall have all such
rights, protections and immunities granted to it under the Credit Agreement.

 

[Remainder of page intentionally left blank]

 

    	 	EXHIBIT B-3	 

     

    

 

IN WITNESS WHEREOF,
each Grantor has caused this Agreement to be executed and delivered by its duly authorized officer as of the date first set forth
above.

 

	 	[NAME OF GRANTOR],
	 	as Grantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	EXHIBIT B-3	 

     

    

 

	Accepted and Agreed:	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 
	as Second Lien Collateral Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	EXHIBIT B-3	 

     

    

 

 

SCHEDULE A

to

TRADEMARK SECURITY AGREEMENT

 

TRADEMARK REGISTRATIONS AND APPLICATIONS

 

	Mark	 	Serial No.	 	Filing Date	 	
        Registration

        No.
	 	
        Registration

        Date

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	 	EXHIBIT B-3	 

     

    

 

Annex
1 to

Second
Lien Collateral Agreement

 

ASSUMPTION AGREEMENT, dated
as of ____________, ____, made by ______________________, a _______________ corporation (the “Additional Grantor”),
in favor of U.S. Bank National Association, as Second Lien Collateral Agent (in such capacity, the “Second Lien Collateral
Agent”) for (i) the banks and other financial institutions and entities (the “Lenders”) parties to
the Credit Agreement referred to below, and (ii) the other Secured Parties (as defined in the Second Lien Collateral Agreement
(as hereinafter defined)). All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement.

 

WITNESETH:

 

WHEREAS, DIFFERENTIAL BRANDS
GROUP INC., a Delaware corporation (the “Borrower”), the Lenders, and the Second Lien Collateral Agent have
entered into the Second Lien Credit Agreement, dated as of October 29, 2018 (as amended, supplemented, replaced or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, in connection
with the Credit Agreement, the Borrower and certain of its Affiliates (other than the Additional Grantor) have entered into the
Second Lien Collateral Agreement, dated as of October 29, 2018 (as amended, supplemented or otherwise modified from time to time,
the “Second Lien Collateral Agreement”) in favor of the Second Lien Collateral Agent for the benefit of the
Secured Parties;

 

WHEREAS, the Credit Agreement
requires the Additional Grantor to become a party to the Second Lien Collateral Agreement; and

 

WHEREAS, the Additional
Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Second Lien Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.          Second
Lien Collateral Agreement. By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in
Section 9.14 of the Second Lien Collateral Agreement, hereby becomes a party to the Second Lien Collateral Agreement as
a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder. The
information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules _____________ to the
Second Lien Collateral Agreement. The Additional Grantor hereby represents and warrants that each of the representations and
warranties contained in Section 3 of the Second Lien Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Assumption Agreement) as if made on and as of such date.

 

    	 	Annex 1-1	 

     

    

 

2.          GOVERNING
LAW. THIS ASSUMPTION AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

3.          Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective permitted successors and assigns, except that the Additional Grantor may not assign, transfer or delegate any of its
rights or obligations under this Assumption Agreement without the prior written consent of the Second Lien Collateral Agent and
any such assignment, transfer or delegation without such consent shall be null and void.

 

IN WITNESS WHEREOF, the
undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 

	 	[ADDITIONAL GRANTOR]
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

    	 	Annex 1-2	 

     

    

 

Annex 1A

 

    	 	Annex 1A-1EXHIBIT 10.6

 

 

 

SECOND LIEN GUARANTY AGREEMENT

 

made among

 

DIFFERENTIAL BRANDS GROUP INC.,

 

certain of its Subsidiaries

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Administrative Agent

 

Dated as of October 29,
2018

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	Section 1	 	defined terms	1
	 	 	 	 
	1.1	 	Definitions	1
	1.2	 	Other Definitional Provisions	3
	 	 	 	 
	Section 2	 	GUARANTEE	4
	 	 	 	 
	2.1	 	Guarantee of Guaranteed Obligations	4
	2.2	 	Limitation on Obligations Guaranteed	4
	2.3	 	Nature of Guarantee; Continuing Guarantee; Waivers of Defenses Etc.	5
	2.4	 	Rights of Reimbursement, Contribution and Subrogation	7
	2.5	 	Payments	9
	2.6	 	Subordination of Other Obligations	9
	2.7	 	Financial Condition of Borrower and other Guarantors	9
	2.8	 	Bankruptcy, Etc	9
	2.9	 	Duration of Guarantee, Discharge of Guarantee Upon Sale of Guarantor	10
	2.10	 	Reinstatement	10
	2.11	 	Keepwell	10
	 	 	 	 
	Section 3	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE GUARANTORS.	11
	 	 	 	 
	3.1	 	Representations and Warranties	11
	3.2	 	Covenants	11
	 	 	 	 
	Section 4	 	POWER OF ATTORNEY AND FURTHER ASSURANCES	11
	 	 	 	 
	4.1	 	Second Lien Administrative Agent’s Appointment as Attorney-in-Fact, Etc.	11
	4.2	 	Further Assurances	11
	 	 	 	 
	Section 5	 	MISCELLANEOUS	12
	 	 	 	 
	5.1	 	Amendments in Writing	12
	5.2	 	Notices	12
	5.3	 	No Waiver by Course of Conduct; Cumulative Remedies	12
	5.4	 	Enforcement Expenses; Indemnification.	12
	5.5	 	Successors and Assigns	12
	5.6	 	Set-Off	12
	5.7	 	Counterparts	13
	5.8	 	Severability	13
	5.9	 	Section Headings	13
	5.10	 	Integration, Conflict	13
	5.11	 	GOVERNING LAW	13

 

    i 

     

    

 

	5.12	 	Submission to Jurisdiction; Waivers	14
	5.13	 	Acknowledgments	14
	5.14	 	Additional Guarantors	15
	5.15	 	Releases	15
	5.16	 	WAIVER OF JURY TRIAL	15
	5.17	 	Administrative Agent	15

 

	Annex I-Joinder Agreement	Annex-I

 

    ii 

     

    

 

SECOND LIEN GUARANTY AGREEMENT

 

SECOND LIEN GUARANTY
AGREEMENT dated as of October 29, 2018, among each of the signatories hereto designated as
a Guarantor on the signature pages hereto (together with any other entity that may become a party hereto as a Guarantor as provided
herein, (each a “Guarantor” and collectively, the “Guarantors”)) and U.S. Bank National Association
as Administrative Agent, (in such capacity and together with its permitted successors and assigns in such capacity, the “Second
Lien Administrative Agent”) for (i) the banks and other financial institutions or entities (the “Lenders”)
from time to time parties to the Second Lien Credit Agreement, dated as of October 29, 2018
(as amended, restated, supplemented or otherwise modified or replaced from time to time, the “Credit Agreement”),
among Differential Brands Group Inc., a Delaware corporation (the “Borrower”), the Lenders, the Second Lien
Administrative Agent and the Collateral Agent, and (ii) the other Guaranteed Parties (as defined below).

 

WITNESSETH:

 

WHEREAS, pursuant to
the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject
to the conditions set forth therein;

 

WHEREAS, the Borrower
is a member of an affiliated group of companies that includes each other Guarantor;

 

WHEREAS, the proceeds
of the extensions of credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to
one or more of the other Guarantors in connection with the operation of their respective businesses;

 

WHEREAS, the Borrower
and the other Guarantors are engaged in related businesses, and each Guarantor will derive substantial direct and indirect benefit
from the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition
precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement
that the Guarantors shall have executed and delivered this Guaranty to the Second Lien Administrative Agent for the benefit of
the Guaranteed Parties.

 

NOW, THEREFORE, in
consideration of the premises and to induce the Second Lien Administrative Agent and the Lenders to enter into the Credit Agreement
and to induce the Lenders and Issuing Banks to make their respective extensions of credit to the Borrower thereunder and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Guarantor hereby agrees with
the Second Lien Administrative Agent, for the benefit of the Guaranteed Parties, as follows:

 

Section
1          defined terms

 

1.1           Definitions.
(a) Unless otherwise defined herein, all terms defined in the Credit Agreement and used herein shall have the meanings given to
them in the Credit Agreement.

 

     

     

    

 

(b)         The
following terms shall have the following meanings:

 

“Agreement”
shall mean this Second Lien Guaranty Agreement, as the same may be amended, restated, amended and restated, supplemented or otherwise
modified from time to time.

 

“Bankruptcy
Case” means a case under the Bankruptcy Code or any other bankruptcy Law.

 

“Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or
any successor statute.

 

“Bankruptcy
Proceeding” means:

 

(a)         any
voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to any Guarantor;

 

(b)         any
other voluntary or involuntary insolvency, reorganization or Bankruptcy Case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding with respect to any Guarantor or with respect to a material portion of their respective assets;

 

(c)         any
liquidation, dissolution, reorganization or winding up of any Guarantor whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy; or

 

(d)         any
assignment for the benefit of creditors or any other marshaling of assets and liabilities of any Guarantor.

 

“Commodity Exchange
Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor
statute.

 

“Corresponding
Obligations” shall have the meaning set forth in Section 4.3.

 

“Discharge of
the Guaranteed Obligations” shall mean and shall have occurred upon termination of the Commitments and payment in full
of all Obligations (other than contingent indemnification obligations).

 

“Excluded Swap
Obligation” means, with respect to any Guarantor, (x) as it relates to all or a portion of the Guarantee of such
Guarantor, any Swap Obligation if, and to the extent that, 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 for any reason to constitute an “eligible
contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of
such Guarantor becomes effective with respect to such Swap Obligation or (y) as it relates to all or a portion of the grant
by such Guarantor of a security interest, any Swap Obligation if, and to the extent that, such Swap Obligation (or such security
interest in respect 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
for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations
thereunder at the time the security interest of such Guarantor becomes effective with respect to such Swap Obligation. If a Swap
Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such
Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

 

     2

     

    

 

“Guaranteed
Obligations” shall mean (i) the Obligations, (ii) each guarantee of the Obligations and (iii) whether or not constituting
Obligations, the unpaid principal of and interest on (including, without limitation, interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower or any
other Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) and all other
obligations and liabilities of the Borrower or any other Guarantor to any Second Lien Administrative Agent, any Lender which arise
under or in connection with any Loan Document; provided, however, that Guaranteed Obligations shall not include any Excluded Swap
Obligations.

 

“Guaranteed
Party” or “Guaranteed Parties” shall mean a Secured Party or the Secured Parties, respectively.

 

“Guaranty”
shall mean this Guaranty as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Obligee Guarantor”
shall have the meaning set forth in Section 2.6.

 

“Parallel Debt”
shall have the meaning set forth in Section 4.3.

 

“Qualified ECP
Guarantor” means, in respect of any Swap Obligations, each Loan Party that has total assets exceeding $10,000,000 at
the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation
or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations
promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by
entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Restricted
Obligations” shall have the meaning set forth in Section 2.12.

 

“Swap Obligation”
means, with respect to any Guarantor, 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.

 

“Voidable Transfer”
shall have the meaning set forth in Section 2.10.

 

1.2           Other
Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and “hereunder”
and words of similar import when used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision
of this Guaranty, and Section, Schedule, Exhibit and Annex references, are to this Guaranty unless otherwise specified. References
to any Schedule, Exhibit or Annex shall mean such Schedule, Exhibit or Annex as amended, amended and restated or supplemented
or otherwise modified from time to time in accordance with this Guaranty.

 

     3

     

    

 

(b)         The
meanings given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.

 

(c)         The
expressions “payment in full,” “paid in
full” and any other similar terms or phrases when used herein shall mean payment
in cash in immediately available funds.

 

(d)         The
use herein of the word “include” or “including”, when following
any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as
“without limitation” or “but not limited
to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items
or matters that fall within the broadest possible scope of such general statement, term or matter.

 

Section
2           GUARANTEE

 

2.1           Guarantee
of Guaranteed Obligations. Subject to Section 2.2, each of the Guarantors hereby, jointly and severally, absolutely,
unconditionally and irrevocably, guarantees, as primary obligor and not merely as surety, to the Second Lien Administrative Agent,
for the benefit of the Guaranteed Parties and their respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by each other Guarantor, including the Borrower, when due (whether at the stated maturity, by
acceleration or otherwise) of the Guaranteed Obligations. Each Guarantor shall be liable under its guarantee set forth in this
Section 2.1, without any limitation as to amount but at all times subject to Section 2.2, for all present and future
Guaranteed Obligations, including specifically all future increases in the outstanding amount of the Loans or other Guaranteed
Obligations and other future increases in the Guaranteed Obligations, whether or not any such increase is committed, contemplated
or provided for by the Loan Documents, on the Closing Date. Without limiting the generality of the foregoing, each Guarantor’s
liability shall extend to all Guaranteed Obligations that would be owed by any other obligor on the Guaranteed Obligations but
for the fact that they are unenforceable or not allowable due to the existence of a Bankruptcy Proceeding involving such Loan
Party.

 

2.2           Limitation
on Obligations Guaranteed. (a) Notwithstanding any other provision hereof, the right of recovery against each Guarantor under
Section 2 hereof shall not exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations
under Section 2 hereof void or voidable under applicable law, including, without limitation, the Uniform Fraudulent Conveyance
Act, Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to the guaranty set
forth herein and the Guaranteed Obligations. To effectuate the foregoing, the Second Lien Administrative Agent and the Guarantors
hereby irrevocably agree that the Guaranteed Obligations of each Guarantor in respect of the guarantee set forth in Section 2
hereof at any time shall be limited to the maximum amount as will result in the Guaranteed Obligations of such Guarantor with
respect thereto hereof not constituting a fraudulent transfer or conveyance after giving full effect to the liability under such
guarantee set forth in Section 2 hereof and its related contribution rights but before taking into account any liabilities
under any other guarantee by such Guarantor. For purposes of the foregoing, all guarantees of such Guarantor other than the guarantee
under Section 2 hereof will be deemed to be enforceable and payable after the guaranty under Section 2 hereof. To the
fullest extent permitted by applicable law, this Section 2.2(a) shall be for the benefit solely of creditors and representatives
of creditors of each Guarantor and not for the benefit of such Guarantor or the holders of any Equity Interest in such Guarantor.

 

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(b)         Each
Guarantor agrees that Obligations may at any time and from time to time be incurred or permitted
in an amount exceeding the maximum liability of such Guarantor under Section 2.2(a)
without impairing the guarantee contained in this Section 2 or affecting the
rights and remedies of any Guaranteed Party hereunder.

 

2.3           Nature
of Guarantee; Continuing Guarantee; Waivers of Defenses Etc.   (a) Each Guarantor understands and agrees that the guarantee
contained in this Section 2 shall be construed as a continuing guarantee of payment and performance and not merely of
collectability. Each Guarantor waives diligence, presentment, protest, marshaling, demand for payment, notice of dishonor,
notice of default and notice of nonpayment to or upon the Borrower or any of the other Guarantors with respect to the
Guaranteed Obligations. Without limiting the generality of the foregoing, this Guaranty and the obligations of each Guarantor
hereunder shall be valid and enforceable and shall extend to the ultimate balance of the Guaranteed Obligations, without any
reduction, limitation, impairment, set-off, defense, counterclaim, discharge or termination for any reason (other than a
Discharge of the Guaranteed Obligations). If any Guarantor is a natural person, it is expressly agreed that this guarantee
shall survive the death of such guarantor and shall continue in effect.

 

(b)          Each
Guarantor agrees that the Guaranteed Obligations of
each Guarantor hereunder are independent of the Guaranteed
Obligations of each other Guarantor and of any other guarantee of the Guaranteed
Obligations and when making any demand hereunder or otherwise pursuing its rights
and remedies hereunder against any Guarantor, any
Guaranteed Party may, but shall be under no obligation to, make a similar demand
on or otherwise pursue such rights and remedies as it may have against the Borrower and
any other Guarantor or any other Person or against any collateral security or other guarantee
for the Guaranteed Obligations or any right of offset with respect thereto, and any failure
by any Guaranteed Party to make any such demand,
to pursue such other rights or remedies or to collect any payments from the Borrower and
any other Guarantor or any other Person or to realize upon any such collateral security
or guarantee or to exercise any such right of offset, or any release of the Borrower and
any other Guarantor or any other Person or any such collateral security, guarantee or right
of offset, shall not relieve any Guarantor of any obligation or liability hereunder,
and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of any Guaranteed
Party against any Guarantor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal
proceedings.

 

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(c)          Except
to the extent the Discharge of the Guaranteed Obligations has occurred no payment made by the Borrower,
any of the other Guarantors, any other guarantor or
any other Person or received or collected by any Guaranteed Party from the Borrower
and any of the other Guarantors, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or
from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed
to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment remain liable for the Guaranteed Obligations until
the Discharge of the Guaranteed Obligations.

 

(d)          Without
limiting the generality of the foregoing, each Guarantor agrees that until the Discharge
of the Guaranteed Obligations, its obligations under and in respect of the guarantee contained in this Section 2
and any security interest, if any, securing the Guaranteed Obligations, shall not
be affected by, and shall remain in full force and effect without regard to, and hereby waives all, rights, claims or defenses
that it might otherwise have (now or in the future) with respect to each of the following (whether or not such Guarantor
has knowledge thereof):

 

(i)          the
validity or enforceability of the Credit Agreement or any other Loan
Document, any of the Guaranteed Obligations or any guarantee or right of offset with
respect thereto at any time or from time to time held by any Guaranteed Party;

 

(ii)         any
renewal, extension or acceleration of, or any increase in the amount of the Guaranteed Obligations,
or any amendment, supplement, modification or waiver of, or any consent to departure from, the Loan Documents;

 

(iii)        any
failure or omission to assert or enforce or agreement or election not to assert or enforce, delay in enforcement, or the stay or
enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand
or any right, power or remedy (whether arising under any Loan Documents, at law,
in equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating
thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed
Obligations;

 

(iv)        any
change, reorganization or termination of the corporate structure or existence of Borrower or any other Guarantor or any of their
Subsidiaries and any corresponding restructuring of the Guaranteed Obligations;

 

(v)         any
settlement, compromise, release, or discharge of, or acceptance or refusal of any offer of payment or performance with respect
to, or any substitutions for, the Guaranteed Obligations or any subordination of the Guaranteed
Obligations to any other obligations;

 

(vi)        the
validity, perfection, non-perfection or lapse in perfection, priority or avoidance of any security interest or lien, the release
of any or all collateral securing, or purporting to secure, the Guaranteed Obligations or
any other impairment of such collateral;

 

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(vii)       any
exercise of remedies with respect to any security for the Guaranteed Obligations (including,
without limitation, any collateral, including the Collateral
securing or purporting to secure any of the Guaranteed Obligations) at such time
and in such order and in such manner as the Second Lien Administrative Agent and the Guaranteed
Parties may decide and whether or not every aspect thereof is commercially reasonable and whether or not such action constitutes
an election of remedies and even if such action operates to impair or extinguish any right of reimbursement or subrogation or other
right or remedy that any Guarantor would otherwise have and without limiting the generality
of the foregoing or any other provisions hereof, each Guarantor
hereby expressly waives any and all benefits which might otherwise be available to such Guarantor
under applicable law; and

 

(viii)      any
other circumstance whatsoever which may or might in any manner or to any extent vary the risk of any Guarantor
as an obligor in respect of the Guaranteed Obligations or which constitutes, or might
be construed to constitute, an equitable or legal discharge of the Borrower or any other
Guarantor for the Guaranteed Obligations, or of such
Guarantor under the guarantee contained in this Section 2
or of any security interest granted by any Guarantor, whether in a Bankruptcy
Proceeding or in any other instance.

 

(e)          In
addition each Guarantor further waives any and all other defenses, set- offs or counterclaims
(other than a defense of payment or performance in full hereunder or the Discharge of the Guaranteed Obligations) which may at
any time be available to or be asserted by it, the Borrower or any other Guarantor
or person against any Guaranteed Party, including, without
limitation, failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction
and usury.

 

2.4           Rights
of Reimbursement, Contribution and Subrogation. In case any payment is made on account of the Guaranteed Obligations by any
Guarantor or is received or collected on account of the Guaranteed Obligations from any Guarantor or its property:

 

(a)          If
such payment is made by a Guarantor (including the Borrower)
or from its property in respect of the Guaranteed Obligations of another Guarantor,
such Guarantor shall be entitled, subject to and upon (but not before) a Discharge
of the Guaranteed Obligations, (A) to demand and enforce reimbursement for the
full amount of such payment from such other Guarantor, and (B) to demand
and enforce contribution in respect of such payment from each other Guarantor which
has not paid its fair share of such payment, as necessary to ensure that (after giving effect to any enforcement of reimbursement
rights provided hereby) each Guarantor pays its fair share of the unreimbursed portion of
such payment. For this purpose, the fair share of each Guarantor as to any unreimbursed
payment shall be determined based on an equitable apportionment of such unreimbursed payment among all Guarantors
(other than the Guarantor whose primary obligations were so guaranteed by the other
Guarantors) based on the relative value of their assets and any other equitable considerations
deemed appropriate by the court. For purposes of the foregoing, all guarantees of such Guarantor
other than the guarantee under Section 2 hereof will be deemed to be enforceable
and payable after the guaranty under Section 2 hereof.

 

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(b)          If
and whenever any right of reimbursement or contribution becomes enforceable by any Guarantor (including
the Borrower) against any other Guarantor (including
the Borrower) whether under Section 2.4(a) or
otherwise, such Guarantor shall be entitled, subject to and upon (but not before) a Discharge
of the Guaranteed Obligations, to be subrogated (equally and ratably with all other Guarantors
entitled to reimbursement or contribution from any other Guarantor as set forth in
this Section 2.4) to any security interest that may then be held by the Second
Lien Administrative Agent upon any collateral securing or purporting to secure any of the Guaranteed
Obligations. Any right of subrogation of any Guarantor (including the Borrower)
shall be enforceable solely after a Discharge of the Guaranteed Obligations and solely against
the Guarantors, and not against the Guaranteed Parties,
and neither the Second Lien Administrative Agent nor any other Guaranteed
Party shall have any duty whatsoever to warrant, ensure or protect any such right of subrogation or to obtain, perfect,
maintain, hold, enforce or retain any collateral securing or purporting to secure any of the Guaranteed
Obligations for any purpose related to any such right of subrogation. If subrogation is demanded by any Guarantor,
then, upon Discharge of the Guaranteed Obligations, the Second
Lien Administrative Agent shall deliver to the Guarantors making such demand,
or to a representative of such Guarantors or of the Guarantors
generally, such instruments or documents necessary or desirable to evidence the transfer
by subrogation to such Guarantor of an interest in the Obligations resulting from such payment.

 

(c)          All
rights and claims arising under this Section 2.4 or based upon or relating to any other
right of reimbursement, indemnification, contribution or subrogation that may at any time arise or exist in favor of any Guarantor
(including the Borrower) as to any payment on account of either (x) the Guaranteed
Obligations or (y) any other obligation that is secured by any collateral that also secures or purports to secure any of
the Guaranteed Obligations, in each case made by it or received or collected from its property
shall be fully subordinated to the Guaranteed Obligations in all respects prior to the Discharge
of the Guaranteed Obligations. Until Discharge of the Guaranteed Obligations, no
Guarantor may demand or receive any collateral security,
payment or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim
provided however that except during the continuance of an Event of Default, each Guarantor may receive regularly scheduled payments
of principal and interest on the Subordinated Obligations (as defined below) from any other Loan Party. If any such payment or
distribution is made or becomes available to any Guarantor in any Bankruptcy Case, receivership,
or Bankruptcy Proceeding, such payment or distribution shall be delivered by the person making such payment or distribution directly
to the Second Lien Administrative Agent, for application to the payment of the Guaranteed
Obligations. If any such payment or distribution is received by any Guarantor after the
occurrence and during the continuance of an Event of Default, it shall be held by such Guarantor
in trust, as trustee of an express trust for the benefit of the Guaranteed Parties,
and shall forthwith be transferred and delivered by such Guarantor to the Second
Lien Administrative Agent, in the exact form received and, if necessary, duly endorsed.

 

(d)          The
obligations of the Guarantors under this Guaranty and
the other Loan Documents, including their liability for the Guaranteed Obligations and the
enforceability of the security interests granted thereby, are not contingent upon the validity, legality, enforceability, collectability
or sufficiency of any right of reimbursement, contribution or subrogation arising under this Section 2.4
or otherwise. The invalidity, insufficiency, unenforceability or uncollectability of any such right shall not in any respect
diminish, affect or impair any such obligation or any other claim, interest, right or remedy at any time held by any Guaranteed
Party against any Guarantor or its property. The Guaranteed
Parties make no representations or warranties in respect of any such right and shall have no duty to assure, protect, enforce
or ensure any such right or otherwise relating to any such right.

 

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2.5           Payments.
Each Guarantor hereby guarantees that payments hereunder will be paid to the Second Lien Administrative Agent without set-off
or counterclaim (other than any amounts required to be withheld or deducted under applicable law) in Dollars in immediately available
funds at the office of the Second Lien Administrative Agent as specified in the Credit Agreement.

 

2.6           Subordination
of Other Obligations. Any Indebtedness of the Borrower or any other Guarantor now or hereafter held by any other Guarantor
(the “Obligee Guarantor”), whether as original creditor, assignee, or by way of subrogation, restitution or
otherwise (the “Subordinated Obligations”), is hereby subordinated in right of payment to the Guaranteed Obligations,
and any such Indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and while such
Event of Default is continuing shall be held in trust for the Second Lien Administrative Agent on behalf of the Guaranteed Parties
and, following the request of the Second Lien Administrative Agent, shall forthwith be paid over to the Second Lien Administrative
Agent for the benefit of the Guaranteed Parties to be credited and applied against the Guaranteed Obligations but without otherwise
affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.

 

2.7           Financial
Condition of Borrower and other Guarantors. Any Credit Event may be made to the Borrower or continued from time to time, without
notice to or authorization from any Guarantor regardless of the financial or other condition of Borrower or any other Guarantor
at the time of any such grant or continuation. No Guaranteed Party shall have any obligation to disclose or discuss with any Guarantor
its assessment, or any Guarantor’s assessment, of the financial condition of the Borrower or any other Guarantor. Each Guarantor
has adequate means to obtain information from the Borrower and each other Guarantor on a continuing basis concerning the financial
condition of the Borrower and each other Guarantor and its ability to perform its obligations under the Loan Documents, and each
Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrower and each other
Loan Party and each other Guarantor and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.
Each Guarantor hereby waives and relinquishes any duty on the part of any Guaranteed Party to disclose any matter, fact or thing
relating to the business, operations or condition of the Borrower or any other Guarantor now known or hereafter known by any Guaranteed
Party.

 

2.8           Bankruptcy,
Etc. The obligations of the Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended
or terminated by any case or Bankruptcy Proceeding, voluntary or involuntary, involving the Borrower or any other Guarantor or
by any defense which the Borrower or any Guarantor may have by reason of the order, decree or decision of any court or administrative
body resulting from any such proceeding. To the fullest extent permitted by law, the Guarantors will permit any trustee in bankruptcy,
receiver, debtor in possession, assignee for the benefit of creditors or similar person to pay the Second Lien Administrative
Agent, or allow the claim of the Second Lien Administrative Agent in respect of, any interest, fees, costs, expenses or other
Guaranteed Obligations accruing or arising after the date on which such case or proceeding is commenced.

 

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2.9           Duration
of Guarantee, Discharge of Guarantee Upon Sale of Guarantor. (a) Except as provided in Section 2.9(b) below and
Section 9.20 of the Credit Agreement, and subject to Section 2.10 below, the guarantee contained in this Section 2
shall remain in full force and effect until the Discharge of the Guaranteed Obligations.

 

(b)          If
(i) all of the Equity Interests of any Guarantor
or any of its successors in interest hereunder shall be sold or otherwise disposed
of (including by merger or consolidation) in accordance with the terms and conditions of the Loan Documents to a Person that is
not an Affiliate of the Borrower or any other Guarantor
or (ii) a Guarantor is no longer a Subsidiary
Loan Party, as applicable, in accordance with the Credit Agreement, then in the case of
each of clauses (i) and (ii), the guaranty
of such Guarantor or such successor in interest, as the case may, hereunder
shall automatically be discharged and released without any further action by any Guaranteed
Party or other Person effective as of the time of such sale, disposition or other transaction.

 

2.10         Reinstatement.
If at any time payment of any of the Guaranteed Obligations or any portion thereof is rescinded,
disgorged or must otherwise be restored or returned by any Guaranteed Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor,
or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any other Guarantor or any substantial
part of its property, or otherwise, or if any Guaranteed Party repays, restores, or returns,
in whole or in part, any payment or property previously paid or transferred to the Guaranteed
Party in full or partial satisfaction of any Guaranteed Obligation, because the
payment or transfer or the incurrence of the obligation is so satisfied, is declared to be void, voidable, or otherwise recoverable
under any state or federal law (collectively a “Voidable Transfer”),
or because such Guaranteed Party elects to do so on the reasonable advice of its counsel
in connection with an assertion that the payment, transfer, or incurrence is a Voidable Transfer,
then, as to any such Voidable Transfer, and as to all reasonable costs, expenses and attorney’s
fees of the Guaranteed Party related thereto, the liability of each Guarantor
hereunder will automatically and immediately be revived, reinstated, and restored and will exist as though the Voidable
Transfer had never been made.

 

2.11         Keepwell.
Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such
funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this
Guaranty in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this
Section 2.11 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under
this Section 2.11, or otherwise under this Guaranty, as it relates to such Loan Party, voidable under applicable law relating
to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor
under this Section shall remain in full force and effect until a Discharge of the Guaranteed Obligations. Each Qualified
ECP Guarantor intends that this Section 2.11 constitute, and this Section 2.11 shall be deemed to constitute, a “keepwell,
support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II)
of the Commodity Exchange Act.

 

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Section
3          REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE GUARANTORS.

 

3.1           Representations
and Warranties. Each Guarantor represents and warrants to the Guaranteed Parties on the Closing Date and on the date of each
Credit Event that the representations and warranties set forth in Section 3 of the Credit Agreement as they relate to such
Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is incorporated herein by reference, are
true and correct in all material respects, except for representations and warranties that are qualified as to “materiality”,
“Material Adverse Effect” or similar language, in which case such representations and warranties shall be true and
correct (after giving effect to any such qualification therein) in all respects as of such date, in each case unless expressly
stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date, and the Guaranteed Parties shall be entitled to rely on each of such representations
and warranties as if they were fully set forth herein, provided that each such reference in each such representation and warranty
to any Borrower’s knowledge shall, for the purposes of this Section 3.1, be deemed to be a reference to such Guarantor’s
knowledge.

 

3.2           Covenants.
Each Guarantor covenants and agrees with the Guaranteed Parties that, from and after the date of this Guaranty until the Discharge
of the Guaranteed Obligations, such Guarantor shall take, or shall refrain from taking, as the case may be, each action that is
necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take
such action or to refrain from taking such action by such Guarantor or any of its Subsidiaries.

 

Section
4           POWER OF ATTORNEY AND FURTHER ASSURANCES

 

4.1           Second
Lien Administrative Agent’s Appointment as Attorney-in-Fact, Etc. Each Guarantor hereby irrevocably constitutes and
appoints the Second Lien Administrative Agent and any officer or agent thereof, with full power of substitution, as its true
and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Guarantor and in the
name of such Guarantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the
purposes of this Agreement.

 

4.2           Further
Assurances. Each Guarantor agrees that from time to time, at the expense of such Guarantor, it shall use commercially reasonable
efforts to promptly execute and deliver such further instruments and documents and take such further commercially reasonable actions
that may be necessary, or that the Second Lien Administrative Agent may reasonably request, in order to ensure that the Guaranteed
Parties receive the intended benefits hereof or to enable the Second Lien Administrative Agent to exercise and enforce its rights
and remedies hereunder.

 

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Section
5          MISCELLANEOUS

 

5.1           Amendments
in Writing. None of the terms or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except
by a written instrument executed by each affected Guarantor and the Second Lien Administrative Agent, provided that any
provision of this Guaranty imposing obligations on any Guarantor may be waived by the Second Lien Administrative Agent in a written
instrument executed by such Second Lien Administrative Agent in accordance with Section 9.09 of the Credit Agreement.

 

5.2           Notices.
All notices, requests and demands to or upon the Second Lien Administrative Agent or any Guarantor hereunder shall be effected
in the manner provided for in Section 9.01 of the Credit Agreement.

 

5.3           No
Waiver by Course of Conduct; Cumulative Remedies. No Guaranteed Party shall by any act (except by a written instrument pursuant
to Section 5.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Guaranteed
Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by any Guaranteed Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which such Guaranteed Party would otherwise have on any future occasion. The rights and remedies herein
provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law.

 

5.4           Enforcement
Expenses; Indemnification. (a) Each Guarantor agrees to (i) pay or reimburse each Guaranteed Party for all its costs
and expenses incurred under this Agreement and (ii) to indemnify the Guaranteed Parties, in each case solely to the
extent such Guarantor is obligated to do so pursuant to Section 9.05 of the Credit Agreement or to the extent that the
Borrower is obligated to do so pursuant to Section 9.05 of the Credit Agreement and the Borrower fails to do so.

 

5.5           Successors
and Assigns. This Guaranty shall be binding upon the successors and assigns of each Guarantor and shall inure to the benefit
of the Guaranteed Parties and their successors and permitted assigns; provided that no Guarantor may assign, transfer or
delegate any of its rights or obligations under this Guaranty without the prior written consent of the Second Lien Administrative
Agent unless permitted by the Credit Agreement and any such assignment, transfer or delegation without such consent shall be null
and void.

 

5.6           Set-Off.
Each Guarantor hereby irrevocably authorizes each Guaranteed Party at any time and from time to time while an Event of Default
shall have occurred and be continuing, without further notice to such Guarantor or any other Guarantor, any such notice being
expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such party to or for the credit or the
account of such Guarantor, or any part thereof in such amounts as such Guaranteed Party may elect, against and on account of the
obligations and liabilities of such Guarantor to such Guaranteed Party hereunder and claims of every nature and description of
such Guaranteed Party against such Guarantor, in any currency, whether arising hereunder, under the Credit Agreement, any other
Loan Document or otherwise, as such Guaranteed Party may elect, whether or not any Guaranteed Party has made any demand for payment
and although such obligations, liabilities and claims may be contingent or unmatured, provided that, if such Guaranteed Party
is a Lender, it complies with Section 9.06 of the Credit Agreement. Each Guaranteed Party exercising any right of set-off
shall notify such Guarantor promptly of any such set-off and the application made by such Guaranteed Party of the proceeds thereof,
provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights
of each Guaranteed Party under this Section are in addition to other rights and remedies (including, without limitation,
other rights of set-off) which such Guaranteed Party may have.

 

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5.7           Counterparts.
This Guaranty may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken
together, shall constitute but one contract. Delivery of an executed counterpart to this Guaranty by facsimile or other electronic
transmission (e.g. “pdf” or “tif” format) shall be effective as delivery of a manually executed counterpart
hereof.

 

5.8           Severability.
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
The parties hereto shall endeavor in good-faith negotiations to replace any 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.

 

5.9           Section Headings.
The section headings and Table of Contents used in this Guaranty are for convenience of reference only, are not part of this Agreement
and are not to affect the construction hereof or be taken in consideration in the interpretation hereof.

 

5.10         Integration,
Conflict. This Guaranty represents the entire agreement of the Guarantors, the Second Lien Administrative Agent and the other
Guaranteed Parties with respect to the subject matter hereof, and supersedes any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. There are no promises, undertakings, representations or warranties by
the Second Lien Administrative Agent or any other Guaranteed Party relative to the subject matter hereof not expressly set forth
or referred to herein.

 

5.11         GOVERNING
LAW. THIS GUARANTY AND ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS GUARANTY (WHETHER ARISING IN
CONTRACT, TORT OR OTHERWISE) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICTS OF LAW RULES THAT WOULD RESULT IN THE APPLICATION OF A DIFFERENT GOVERNING LAW. 

 

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5.12         Submission
to Jurisdiction; Waivers. Each Guarantor hereby irrevocably and unconditionally:

 

(a)          submits
for itself and its property in any legal action or proceeding relating to this Guaranty (whether
arising in contract, tort or otherwise) to which it is a party, or for recognition and enforcement of any judgment in respect thereof,
to the exclusive general jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan, and of the United
States of America for the Southern District of New York sitting in the Borough of Manhattan, and appellate courts from any thereof;

 

(b)          agrees
that all claims in respect of any such action or proceeding shall be heard and determined in such New York state court or, to
the fullest extent permitted by applicable law, in such federal court;

 

(c)          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 and that nothing in this Guaranty shall
affect any right that any Guaranteed Party may otherwise have to bring any action or proceeding
relating to this Guaranty against the Guarantor or
any of its assets in the courts of any jurisdiction;

 

(d)          waives
to the fullest extent permitted by applicable law, any objection that it may now or hereafter
have to the laying of venue of any action or proceeding arising out of or relating to this Guaranty
in any court referred to in paragraph (a) of this section (and irrevocably waives to the
fullest extent permitted by applicable law the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court);

 

(e)          consents
to service of process in the manner provided in Section 9.17 of the Credit Agreement (and
agrees that nothing in this Guaranty will affect the right of any party hereto
to serve process in any other manner permitted by applicable law); and

 

(f)          waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover any special, exemplary, punitive or consequential
damages.

 

5.13         Acknowledgments.
Each Guarantor hereby acknowledges that:

 

(a)          in
connection with all aspects of each transaction contemplated hereby, it has consulted its own legal advisors to the extent it has
deemed appropriate;

 

(b)          no
Guaranteed Party has any fiduciary relationship with or duty to any Guarantor
arising out of or in connection with this Guaranty or any of the other Loan Documents,
and the relationship between the Guarantors, on the one hand, and the Guaranteed
Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)          no
joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby
among the parties hereto.

 

     14

     

    

 

5.14         Additional
Guarantors. Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to Section 5.11
of the Credit Agreement shall become a Guarantor as required by the Credit Agreement for all purposes of this Agreement upon execution
and delivery by such Subsidiary of a Joinder Agreement in the form of Annex 1 hereto.

 

5.15         Releases.
At such time as there has been a Discharge of the Guaranteed Obligations, this Agreement and all obligations (other than those
expressly stated to survive such termination) of the Second Lien Administrative Agent and each Guarantor hereunder shall automatically
terminate, all without delivery of any instrument or performance of any act by any party. At the request and sole expense of any
Guarantor following any such termination, the Second Lien Administrative Agent shall promptly execute and deliver to such Guarantor
such documents as such Guarantor shall reasonably request to evidence such termination.

 

5.16         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT, BREACH OF DUTY, COMMON LAW, STATUTE OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, SECOND LIEN ADMINISTRATIVE AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS 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.

 

5.17         Administrative
Agent. Article VIII of the Credit Agreement is incorporated by reference mutatis mutandis. The Second Lien Administrative
Agent has executed this Agreement as directed under and in accordance with the Second Lien Credit Agreement and will perform this
Agreement solely in its capacity as Administrative Agent. In performing under this Agreement, the Second Lien Administrative Agent
shall have all such rights, protections and immunities granted it under the Second Lien Credit Agreement.

 

[This Space Intentionally
Left Blank]

 

     15

     

    

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Second Lien Guaranty Agreement to be duly executed and delivered as of the date first above written.

 

	 	GUARANTORS:
	 	 
	 	DIFFERENTIAL BRANDS GROUP INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	DBG HOLDINGS SUBSIDIARY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	DBG SUBSIDIARY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	HUDSON CLOTHING HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	HUDSON CLOTHING, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	DFBG SWIMS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	HC ACQUISITION HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	RG PARENT LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	ROBERT GRAHAM HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	ROBERT GRAHAM DESIGNS, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	ROBERT GRAHAM RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	RGH GROUP LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	MARCO BRUNELLI IP, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

	 	CENTRIC BRANDS HOLDING LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	AMERICAN MARKETING ENTERPRISES INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	BRIEFLY STATED HOLDINGS INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	BRIEFLY STATED INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	GBG JEWELRY INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	KHQ INVESTMENT LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	KHQ ATHLETICS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	ROSETTI HANDBAGS AND ACCESSORIES, LTD.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG ACCESSORIES GROUP LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG SOCKS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	VZI INVESTMENT CORP.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG-BCBG LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG-BCBG RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG DENIM USA, LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG BEAUTY LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	ADDED EXTRAS LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	LOTTA LUV BEAUTY LLC
	 	 	 
	 	By:	 /s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG WEST LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	F&T APPAREL LLC
	 	 	 
	 	By:	 /s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	GBG DENIM RETAIL LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	INNOVO WEST SALES, INC.
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary
	 	 	 
	 	CENTRIC BEBE LLC
	 	 	 
	 	By:	/s/ Lori Nembirkow
	 	Name: Lori Nembirkow
	 	Title: Secretary

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Second Lien Administrative Agent
	 	 	 
	 	By:	/s/ Lisa Dowd
	 	Name: Lisa Dowd
	 	Title: Vice President

 

Signature
Page to SECOND LIEN Guaranty Agreement

 

     

     

    

 

Annex 1 to

Second Lien Guaranty Agreement

 

JOINDER AGREEMENT,
dated as of ____________, 20____, made by ______________________, a _______________ corporation (the “Additional Guarantor”),
in favor of U.S. BANK NATIONAL ASSOCIATION as Administrative Agent (in such capacity, the “Second Lien Administrative
Agent”) for (i) the banks and other financial institutions or entities (the “Lenders”) from time
to time parties to the Credit Agreement referred to below, and (ii) the other Guaranteed Parties (as defined in the Second
Lien Guaranty Agreement (as hereinafter defined)). All capitalized terms not defined herein shall have the meaning ascribed to
them in such Credit Agreement.

 

WITNESSETH:

 

WHEREAS, DIFFERENTIAL
BRANDS GROUP INC. (the “Borrower”), the Lenders, and the Second Lien Administrative Agent have entered into
that certain Second Lien Credit Agreement, dated as of October 29, 2018 (as amended, supplemented, replaced or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, in connection
with the Credit Agreement, the Borrower and certain of its Affiliates (other than the Additional Guarantor) have entered into the
Second Lien Guaranty Agreement, dated as of October 29, 2018 (as amended, supplemented replaced or otherwise modified from time
to time, the “Second Lien Guaranty Agreement”) in favor of the Second Lien Administrative Agent for the benefit
of the Guaranteed Parties;

 

WHEREAS, the Credit
Agreement requires the Additional Guarantor to become a party to the Second Lien Guaranty Agreement; and

 

WHEREAS, the Additional
Guarantor has agreed to execute and deliver this Joinder Agreement in order to become a party to the Second Lien Guaranty Agreement;

 

NOW, THEREFORE, IT
IS AGREED:

 

1.          Second
Lien Guaranty Agreement. By executing and delivering this Joinder Agreement, the Additional Guarantor, as provided in Section 5.14
of the Second Lien Guaranty Agreement, hereby becomes a party to the Second Lien Guaranty Agreement as a Guarantor thereunder
with the same force and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing,
hereby expressly assumes all obligations and liabilities of a Guarantor thereunder. The information set forth in Annex 1-A hereto
is hereby added to the information set forth in Schedules [_____________1
] to the Guarantee Agreement. The Additional Guarantor hereby represents and warrants that each of the representations
and warranties contained in Section 3 of the Credit Agreement as they relate to such Additional Guarantor or to the Loan
Documents to which such Additional Guarantor is a party, each of which is incorporated herein by reference, is true and correct
in all material respects on and as of the date hereof (after giving effect to this Joinder Agreement).

 

 

1
Refer to each Schedule which needs to be supplemented where a secured guaranty is involved.

 

    	 	Annex 1-1	 

     

    

 

2.          [Limitations
of Guarantee. [●]]

 

3.          GOVERNING
LAW. THIS ASSUMPTION AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

4.          Successors
and Assigns. This Joinder Agreement will be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Additional Guarantor may not assign, transfer or delegate any of its rights or obligations
under this Assumption Agreement without the prior written consent of the Second Lien Administrative Agent, unless permitted by
the Credit Agreement, and any such assignment, transfer or delegation without such consent shall be null and void.

 

IN WITNESS WHEREOF,
the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written.

 

	 	[ADDITIONAL GUARANTOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Annex 1-2	 

     

    

 

Annex 1-A

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