Document:

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of April 25, 2017, between PetroTerra Corp., a Nevada
corporation (the “Company”), and the purchaser identified on the signature pages hereto (including its successors
and assigns, the “Purchaser”). 

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the
Purchaser, and the Purchaser, desires to purchase from the Company, securities of the Company as more fully described in this
Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows: 

 

ARTICLE
I. 

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. 

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any
day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing
Dates” means the Trading Day(s) on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchasers’ obligations to pay the
Subscription Amount as to such Closing and (ii) the Company’s obligations to deliver the Securities as to such Closing,
in each case, have been satisfied or waived.

 

“Closing(s)”
means the one or more closings of the purchase and sale of the Securities pursuant to Section 2.2.

 

    	 	 	 

    	 

    

 

“Closing
Statement” means the Closing Statement in the form on Annex A attached hereto.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.001
per share, and any other class of securities into which such securities may hereafter be
reclassified or changed. 

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock. 

 

“Company
Counsel” means Pryor Cashman LLP, with an address at 7 Times Square, New York, New York 10036.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Notes.

 

“Conversion
Shares” means the shares of Common Stock issued and issuable upon conversion or redemption of the Notes and issued and issuable
in lieu of the cash payment of interest on the Notes in accordance with the terms of the Notes.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

“Effectiveness
Date” means, with respect to the Registration Statement required to be filed hereunder, ninety (90) days from the First
Closing; provided, however, that in the event the Company is notified by the Commission that the above Registration
Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to the Registration
Statement shall be the fifth (5th) Trading Day following the date on which the Company is so notified if such date
precedes the dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading
Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 

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“Exempt
Issuance” means the issuance of (a) shares
of Common Stock or options to employees, officers, directors, advisors or independent contractors of the Company pursuant to any
stock or option plan duly adopted for such purpose, (b) shares of Common Stock, warrants or options to advisors or independent
contractors of the Company for compensatory purposes, (c) securities upon the exercise or exchange of or conversion of any Securities
issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and
outstanding on the date hereof, provided that such securities have not been amended since the date hereof to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities, (d) securities issuable
pursuant to any contractual anti-dilution obligations of the Company in effect as of the date hereof, provided that such obligations
have not been materially amended since the date of hereof, and (e) securities issued pursuant to acquisitions or any other strategic
transactions approved by the Board of Directors, provided that any such issuance shall not include a transaction in which the
Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities.

 

“Filing
Date” means, with respect to the Registration Statement required hereunder, the forty-fifth (45th) calendar day
after the First Closing.

 

“First
Closing” means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m). 

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Notes”
means the Senior Convertible Notes due, subject to the terms therein, one (1) year from their date of issuance, issued by the
Company to the Purchaser hereunder, in the form of Exhibit A attached hereto.

 

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“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.12(b). 

 

“Principal
Amount” means, as to the Purchaser, the amounts set forth below the Purchaser’s signature block on the signature pages
hereto next to the heading “Principal Amount,” in United States Dollars, which shall equal the Purchaser’s Subscription
Amount as to the applicable Closing, multiplied by 1.10. 

 

“Pro
Rata Portion” shall have the meaning ascribed to such term in Section 4.12(e).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b). 

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

“Registration
Statement” means a registration statement on Form S-1 that the Company is obligated to file pursuant to Section 4.21 hereof,
registering for resale the Conversion Shares.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Conversion Shares issuable upon conversion in full of all Notes
(including Conversion Shares issuable as payment of interest on the Notes), ignoring any conversion or exercise limits set forth
therein, and assuming that the Conversion Price is at all times on and after the date of determination 100% of the then Conversion
Price on the Trading Day immediately prior to the date of determination. 

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule. 

 

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“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Notes and the Conversion Shares. 

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act 

 

“Subscription
Amount” means, as to the Purchaser, the aggregate amount to be paid for Notes purchased hereunder as specified below the
Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United
States dollars and in immediately available funds. 

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof. 

 

“Trading
Day” means a day on which the principal Trading Market is open for trading. 

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the
date in question: the NYSE MKT; the Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market; the New
York Stock Exchange; OTC Markets or the OTC Bulletin Board (or any successors to any of the foregoing). 

 

“Tranche(s)”
shall have the meaning ascribed to such term in Section 2.1. 

 

“Transaction
Documents” means this Agreement, the Notes, the Transfer Agent Instruction Letter, all exhibits and schedules thereto and
hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

 

“Transfer
Agent” means Island Stock Transfer, the current transfer agent of the Company, with a mailing address of 15500
Roosevelt Blvd., Suite 301, Clearwater, Florida 33760 and a phone number of (727) 289-0010,
attention: Kim Whiteside, and any successor transfer agent of the Company. 

 

“Transfer
Agent Instruction Letter” means the letter from the Company to the Transfer Agent which instructs the Transfer Agent to
issue Conversion Shares pursuant to the Transaction Documents, in the form of Exhibit B attached hereto. 

 

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ARTICLE
II. 

PURCHASE
AND SALE 

 

2.1
Purchase. The Purchasers will purchase an aggregate of up to $355,000 in Subscription Amount corresponding to an aggregate
of up to $355,000 in Principal Amount of Notes. The purchase will occur in up to four (4) tranches of (each a “Tranche,”
and collectively the “Tranches”), with the first Tranche of $100,000 being closed upon execution of this Agreement
(the “First Closing”). The second Tranche will be for $85,000 and will occur upon the later of: (i) thirty (30) days
after the First Closing; and (ii) the Filing Date of the Registration Statement. The third Tranche will be for $85,000 and will
occur sixty (60) days after the First Closing. The fourth Tranche will be for $85,000 and will occur ninety (90) days after the
First Closing. The Purchaser shall not be required
to fund any Tranche subsequent to the first Tranche if: (i) there is an Event of Default
(as defined in the Notes) under any Note; (ii) the Company, its Subsidiaries, or any of the directors or officers of the Company
or its Subsidiaries commit fraud; or (iii) the Company or its Subsidiaries breach any covenant contained herein or in the other
Transaction Documents.

 

2.2
Closing. On each Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchaser agrees
to purchase, the Purchaser’s Closing Subscription Amount as set forth on the signature page hereto executed by the Purchaser
(an aggregate of up to $355,000 in Subscription Amount corresponding to an aggregate of up to $355,000 in Principal Amount of
Notes). At each Closing, the Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available
funds equal to the Purchaser’s Subscription Amount as set forth on the signature page hereto executed by the Purchaser,
and the Company shall deliver to the Purchaser its respective Note, as determined pursuant to Section 2.3(a), and the Company
and the Purchaser shall deliver the other items set forth in Section 2.3 deliverable at the First Closing. Upon satisfaction of
the covenants and conditions set forth in Sections 2.3 and 2.4 for each Closing, each Closing shall occur at the offices of Company
Counsel or such other location as the parties shall mutually agree.

 

2.3
Deliveries.

 

(a)
On or prior to each Closing Date (except as noted), the Company shall deliver or cause to be delivered to the Purchaser the following:

 

(i)
as to the First Closing, this Agreement duly executed by the Company;

 

(ii)
the Transfer Agent Instruction Letter duly executed by the Company and the Transfer Agent; and

 

(iii)
a Note with a principal amount equal to the Purchaser’s Principal Amount as to the applicable Closing, registered in the
name of the Purchaser. 

  

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(b)
On or prior to the applicable Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, as applicable,
the following:

 

(i)
as to the First Closing, this Agreement duly executed by the Purchaser; and

 

(ii)
the Purchaser’s Subscription Amount as to the applicable Closing by wire transfer to the account specified in writing by
the Company.

 

2.4
Closing Conditions.

 

(a)
The obligations of the Company hereunder in connection with each Closing are subject to the following conditions being met:

 

(i)
the accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchaser contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)
all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the applicable Closing Date
shall have been performed; and

 

(iii)
the delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

(b)
The respective obligations of the Purchaser hereunder in connection with each Closing are subject to the following conditions
being met:

 

(i)
the accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the
Company contained herein (unless as of a specific date therein);

 

(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall
have been performed;

 

(iii)
the delivery by the Company of the items set forth in Section 2.3(a) of this Agreement;

 

(iv)
there is no existing Event of Default (as defined in the Notes) and no existing event which, with the passage of time or the giving
of notice, would constitute an Event of Default;

 

(v)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

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(vi)
from the date hereof to the applicable Closing Date, trading in the Common Stock shall not have been suspended by the Commission
or the Company’s principal Trading Market and, at any time prior to the applicable Closing Date, trading in securities generally
as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either
by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities
or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of the Purchaser, and without regard to any factors unique to the Purchaser,
makes it impracticable or inadvisable to purchase the Securities at the applicable Closing.

 

ARTICLE
III. 

REPRESENTATIONS
AND WARRANTIES 

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules, the Company (which
for purposes of this Section means the Company and all of its Subsidiaries) hereby makes
the following representations and warranties to the Purchaser as of each Closing Date:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other
references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document; (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole; or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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(c)
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents
to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents; (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien (except
Liens in favor of the Purchaser) upon any of the properties or assets of the Company or any Subsidiary, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected;
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

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(e)
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.6 of this Agreement; (ii) the notice and/or application(s) to each applicable
Trading Market for the issuance and sale of the Securities and the listing of the Conversion Shares for trading thereon in the
time and manner required thereby; and (iii) the filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares, when issued in accordance
with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved
from its duly authorized capital stock a number of shares of Common Stock for issuance of the Conversion Shares at least equal
to 300% of the Required Minimum on the date hereof.

 

(g)
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g)
shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of
the date hereof. No Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except as a result of the purchase and sale of the Securities and securities issued to employees and other
service providers of the Company pursuant to the Equity Incentive Plan, there are no outstanding options, warrants, scrip rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible
into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock,
or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue
additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of
the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the
Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or
reset price under any of such securities. To the Company’s knowledge, all of the outstanding shares of capital stock of
the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal
and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others
is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders.

 

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(h)
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two (2) years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”). As of their respective dates, the SEC Reports complied
in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments. 

 

(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof:
(i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a
Material Adverse Effect; (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with
the Commission; (iii) the Company has not altered its method of accounting; (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock; and (v) the Company has not issued any equity securities to any
officer, director or Affiliate, except pursuant to the Equity Incentive Plan. Except
for the issuance of the Securities contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or
development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to
be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has
not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made. 

 

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(j)
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge
of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties, or
against or affecting the Company’s current or former officers or directors in their capacity as such, before
or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of
any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be
expected to result in a Material Adverse Effect, and neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company that is
likely to lead to action that can reasonably be expected to result in a Material Adverse Effect. There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any
current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such
Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive
officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not
subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and
its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment
and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	12	 

    	 

    

 

(l)
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been waived); (ii) is in violation of any judgment, decree
or order of any court, arbitrator or other governmental authority; or (iii) is or has been in violation of any statute, rule,
ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws
relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor
matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

 

(n)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries
and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance.

 

(o)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights as necessary or required for use in connection with their respective businesses as presently
conducted and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the
latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably
be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual
properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

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(p)
Transactions with Affiliates and Employees. None of the officers or directors of the Company or any Subsidiary and, to
the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with
the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from providing for the borrowing of money from or lending of money to, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000
other than for: (i) payment of salary or consulting fees for services rendered; (ii) reimbursement for expenses incurred on behalf
of the Company; and (iii) other employee benefits, including stock option or stock award agreements under the Equity Incentive
Plan. 

 

(q)
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the applicable Closing
Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such
date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

    	 	14	 

    	 

    

 

(r)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect
to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by the Transaction Documents.

 

(s)
Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Trading Market.

 

(t)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(u)
Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of
any securities of the Company or any Subsidiaries.

 

(v)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received notice from
any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

    	 	15	 

    	 

    

 

(w)
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of
the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including
without limitation as a result of the Company’s issuance of the Securities and the Purchaser’s ownership of the Securities.

 

(x)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or might constitute material, non-public information.
The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in
securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company
and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules
to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company
during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made and when made, not misleading. The Company
acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(y)
No Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would
require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated.

 

(z)
No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of
the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only
to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

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(aa)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law; or (iv) violated in any material
respect any provision of FCPA.

 

(bb)
Accountants. The Company’s accounting firm is Salberg & Company, P.A., which to the knowledge and belief of the
Company, is a registered public accounting firm as required by the Exchange Act.

 

(cc)
No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents.

 

(dd)
Acknowledgment Regarding Purchaser’s Purchase of Securities. The Company acknowledges and agrees that the Purchaser
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated thereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of
the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and
any advice given by the Purchaser or any of their respective representatives or agents in connection with the Transaction Documents
and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company
further represents to the Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ee)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid
to the Company’s placement agent in connection with the placement of the Securities.

 

    	 	17	 

    	 

    

 

(ff)
Stock Option Plans. The Company has not knowingly granted, and there is no and has been no Company policy or practice to
knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other
public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

(gg)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(hh)
U.S. Real Property Holding Corporation. The Company is not a U.S. real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

 

(ii)
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System
(the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or
more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(jj)
Reserved.

 

(kk)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company (i) has made or filed all United States federal, state and local income and all foreign
income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes
for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any
such claim.

 

    	 	18	 

    	 

    

 

(ll)
Seniority. As of each Closing Date, no Indebtedness or other claim against the Company is senior to the Notes in right
of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured
by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations
(which is senior only as to the property covered thereby).

 

(mm)Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(f) and 4.12 hereof), it is understood and acknowledged by the Company that: (i) the Purchaser has not
been asked by the Company to agree, nor has the Purchaser agreed, to desist from purchasing or selling, long and/or short, securities
of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for
any specified term; (ii) past or future open market or other transactions by the Purchaser, specifically including, without limitation,
Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions,
may negatively impact the market price of the Company’s publicly-traded securities; (iii) the Purchaser, and counter-parties
in “derivative” transactions to which the Purchaser is a party, directly or indirectly, may presently have a “short”
position in the Common Stock; and (iv) the Purchaser shall not be deemed to have any affiliation with or control over any arm’s
length counter-party in any “derivative” transaction. The Company further understands and acknowledges that (y) the
Purchaser may engage in hedging activities at various times during the period that the Securities are outstanding, including,
without limitation, during the periods that the value of the Conversion Shares deliverable with respect to Securities are being
determined, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests
in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

(nn)
Money Laundering. The operations of the Company and its Subsidiaries are conducted at all times in compliance with applicable
financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering
Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company
or any Subsidiary, threatened.

 

(oo) Subsidiary
Rights. The Company has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to
receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or any
Subsidiary.

 

3.2
Representations and Warranties of the Purchasers. The Purchaser hereby represents and warrants as of the date hereof and
as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

    	 	19	 

    	 

    

 

(a)
Organization; Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by the Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser.
Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)
Own Account. The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable
federal and state securities laws). The Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)
Purchaser Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it converts any Notes it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2),
(a)(3), (a)(7) or (a)(8) under the Securities Act.

 

(d)
Experience of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

    	 	20	 

    	 

    

 

(e)
General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(f)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser
has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
the Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of the Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, the Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty,
or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow
in order to effect Short Sales or similar transactions in the future.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby. 

 

ARTICLE
IV. 

OTHER
AGREEMENTS OF THE PARTIES 

 

4.1
Transfer Restrictions.

 

(a)
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of
Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser
or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to
the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing
to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

    	 	21	 

    	 

    

 

(b)
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the
following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [CONVERTIBLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES. 

 

The
Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with
a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions
of this Agreement and, if required under the terms of such arrangement, the Purchaser may transfer pledged or secured Securities
to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion
of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall
be required of such pledge. At the Purchaser’s expense, the Company will execute and deliver such reasonable documentation
as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

 

    	 	22	 

    	 

    

 

(c)
Certificates evidencing the Conversion Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof):
(i) while a registration statement covering the resale of such security is effective under the Securities Act; (ii) following
any sale of such Conversion Shares pursuant to Rule 144; (iii) if such Conversion Shares are eligible for sale under Rule 144
without the current public information requirement; or (iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The
Company shall upon request of a Purchaser and at the Company’s expense cause its counsel to issue a legal opinion to the
Transfer Agent promptly after any of the events described in (i)-(iv) in the preceding sentence if required by the Transfer Agent
to effect the removal of the legend hereunder (with a copy to the applicable Purchaser and its broker). If
all or any portion of a Note is converted at a time when there is an effective registration statement to cover the resale of the
Conversion Shares, or if such Conversion Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission)
then such Conversion Shares shall be issued free of all legends. The Company agrees that following such time as such legend is
no longer required under this Section 4.1(c), it will, no later than two (2) Trading Days following the delivery by a Purchaser
to the Company or the Transfer Agent of a certificate representing Conversion Shares, as applicable, issued with a restrictive
legend (such third Trading Day, the “Legend Removal Date”), instruct the Transfer Agent to deliver or cause to be
delivered to the Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company
may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer
set forth in this Section 4. Certificates for Conversion Shares subject to legend removal hereunder shall be transmitted by the
Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company
System as directed by the Purchaser.

 

(d)
In addition to the Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, $1,000 per Trading Day for each Trading Day after the Legend Removal Date until such certificate
is delivered without a legend. Nothing herein shall limit the Purchaser’s right to pursue actual damages for the Company’s
failure to deliver certificates representing any Securities as required by the Transaction Documents, and the Purchaser shall
have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief. 

 

4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the
outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges
that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Conversion Shares
pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay
or reduction, regardless of the effect of any such dilution or any claim the Company may have against the Purchaser and regardless
of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

 

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4.3
Furnishing of Information; Public Information.

 

(a)
The Company covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements
of the Exchange Act.

 

(b)
At any time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all
of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without
restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information
requirement under Rule 144(c) (a “Public Information Failure”) then, in addition to the Purchaser’s other available
remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any
such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate
Subscription Amount of the Purchaser’s Securities on the day of a Public Information Failure and on every thirtieth (30th)
day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information
Failure is cured and (b) such time that such public information is no longer required for the Purchasers to transfer the Conversion
Shares pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred
to herein as “Public Information Failure Payments.” Public Information Failure Payments shall be paid on the earlier
of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third
(3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured. In the
event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments
shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit
the Purchaser’s right to pursue actual damages for the Public Information Failure, and the Purchaser shall have the right
to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief. 

 

4.4
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in
a manner that would require the registration under the Securities Act of the sale of the Securities or that would be integrated
with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require
shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing
of such subsequent transaction. 

 

4.5
Conversion and Exercise Procedures. The form of Notice of Conversion included in the Notes sets forth the totality of the
procedures required of the Purchaser in order to convert the Notes. Without limiting the preceding sentences, no ink-original
Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any
Notice of Conversion form be required in order to convert the Note. No additional legal opinion, other information or instructions
shall be required of the Purchaser to convert their Notes. The Company shall honor conversions of the Notes and shall deliver
Conversion Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

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4.6
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other
Person, that the Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.7
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
covenants and agrees that neither it, nor any of
its subsidiaries, nor any other Person acting on its behalf, will provide the Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such information is disclosed to the public, or the Purchaser shall have
entered into a written agreement with the Company regarding the confidentiality and use of such information. The Company understands
and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.8
Use of Proceeds. The Company shall use the net proceeds hereunder at its sole discretion.

 

4.9
Indemnification of Purchaser. Subject to the provisions of this Section 4.9, the Company will indemnify and hold the Purchaser
and its directors, officers, managers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, managers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs
and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs
of investigation that any the Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of the Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of the Purchaser Party’s representations, warranties or covenants under
the Transaction Documents or any agreements or understandings the Purchaser Party may have with any such stockholder or any violations
by such Purchaser Party of state or federal securities laws or any conduct by the Purchaser Party which constitutes fraud, gross
negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which
indemnity may be sought pursuant to this Agreement, the Purchaser Party shall promptly notify the Company in writing, and the
Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser
Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of the Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of the Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will
not be liable to any Purchaser Party under this Agreement (x) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (y) to the extent, but only to the extent that
a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by the Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.10 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or are incurred. The indemnification contained herein shall be in addition to any cause
of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to pursuant to law.

 

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4.10
Reservation and Listing of Securities.

 

(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

(b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 300% of
the Required Minimum on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s
certificate or articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least
300% of the Required Minimum at such time, as soon as possible and in any event not later than the 75th day after such
date.

 

(c)
The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such
Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required
Minimum on the date of such application; (ii) take all steps necessary to cause such shares of Common Stock to be approved for
listing or quotation on such Trading Market as soon as possible thereafter; (iii) provide to the Purchasers evidence of such listing
or quotation; and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum
on such date on such Trading Market or another Trading Market.

 

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4.11
Subsequent Equity Sales. If, at any time
while any of the Notes are outstanding, the Company or any Subsidiary, as applicable, sells or grants any option to purchase or
sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase
or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at
an effective price per share that is lower than the then Conversion Price (such lower price, the “Base Conversion Price”
and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock
Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than the Conversion
Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance),
then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 5(b)
in respect of an Exempt Issuance. The Company shall notify the Holder in writing, no later than the Trading Day following the
issuance of any Common Stock or Common Stock Equivalents subject to this Section 4.11, indicating therein the applicable issuance
price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant
to this Section 4.11, upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares
based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately
refers to the Base Conversion Price in the Notice of Conversion. Further, the Holder at its option is entitled to receive a true-up
of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, in order for the Holder
to maintain the equity percentage in the Company that it was entitled to as of the date hereof.

 

4.12
Certain Transactions and Confidentiality. The Purchaser covenants that neither it, nor any Affiliate acting on its behalf
or pursuant to any understanding with it will execute any Short Sales, of any of the Company’s securities during the period
commencing with the execution of this Agreement and ending on the Maturity Date (as defined in the Note) of the Notes (provided
that this provision shall not prohibit any sales made where a corresponding Notice of Conversion is tendered to the Company and
the shares received upon such conversion or exercise are used to close out such sale) (a “Prohibited Short Sale”).

 

4.13
Right of First Refusal.

 

(a)
As long as any of the Notes remain outstanding,
upon any issuance by the Company of Common Stock, Common Stock Equivalents or debt for cash consideration, Indebtedness or a combination
of units hereof (a “Subsequent Financing”), the Purchaser shall have the right to participate in up to an amount of
the Subsequent Financing equal to 100% of the Subsequent Financing (the “Participation Maximum”) on the same terms,
conditions and price provided for in the Subsequent Financing.

 

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(b)
At least three (3) Trading Days prior to the
closing of the Subsequent Financing, the Company shall deliver to the Purchaser a written notice of its intention to effect a
Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask the Purchaser if it wants to review the details of
such financing (such additional notice, a “Subsequent Financing Notice”). Upon the request of the Purchaser, and only
upon a request by the Purchaser, for a Subsequent Financing Notice, the Company shall promptly, but no later than one (1) Trading
Day after such request, deliver a Subsequent Financing Notice to the Purchaser. The Subsequent Financing Notice shall describe
in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder
and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet
or similar document relating thereto as an attachment.

 

(c)
If the Purchaser desires to participate in such
Subsequent Financing, the Purchaser must provide written notice to the Company that the Purchaser is willing to participate in
the Subsequent Financing, the amount of the Purchaser’s participation, and representing and warranting that the Purchaser
has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice.

 

(d)
If notifications by the Purchaser of its willingness
to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total
amount of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms
and with the Persons set forth in the Subsequent Financing Notice.

 

(e)
The Company must provide the Purchaser with a
second Subsequent Financing Notice, and the Purchaser will again have the right of participation set forth above in this Section
4.13, if the Subsequent Financing subject to the initial Subsequent Financing Notice is not consummated for any reason on the
terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after the date of the initial Subsequent Financing
Notice.

 

(f)
The Company and the Purchaser agree that if the
Purchaser elects to participate in the Subsequent Financing, the transaction documents related to the Subsequent Financing shall
not include any term or provision whereby the Purchaser shall be required to agree to any restrictions on trading as to any of
the Securities purchased hereunder or be required to consent to any amendment to or termination of, or grant any waiver, release
or the like under or in connection with, this Agreement, without the prior written consent of the Purchaser.

 

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(g)
Notwithstanding anything to the contrary in this
Section 4.13 and unless otherwise agreed to by the Purchaser, the Company shall either confirm in writing to the Purchaser that
the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention to issue
the securities in the Subsequent Financing, in either case in such a manner such that the Purchaser will not be in possession
of any material, non-public information, by the tenth (10th) Trading Day following delivery of the Subsequent Financing
Notice. If by such tenth (10th) Trading Day, no public disclosure regarding a transaction with respect to the Subsequent
Financing has been made, and no notice regarding the abandonment of such transaction has been received by the Purchaser, such
transaction shall be deemed to have been abandoned and the Purchaser shall not be deemed to be in possession of any material,
non-public information with respect to the Company or any of its Subsidiaries.

 

(h) Notwithstanding
the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance.

 

4.14
Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release,
the Company represents to the Purchaser that it shall have publicly disclosed all material, non-public information delivered to
any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or
agents in connection with the transactions contemplated by the Transaction Documents. The Company and the Purchaser shall consult
with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company
nor the Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of the Purchaser, or without the prior consent of the Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required
by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser, or include the
name of the Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written
consent of the Purchaser, except: (a) as required by federal securities law in connection with any registration statement contemplated
by this Agreement and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company
shall provide the Purchaser with prior notice of such disclosure permitted under this clause (b).

 

4.15
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of the Purchaser. The Company
shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Securities for, sale to the Purchaser at the applicable Closing under applicable securities or “Blue Sky” laws
of the states of the United States, and shall provide evidence of such actions promptly upon request of the Purchaser.

 

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4.16 Exchange
Transactions. During the period commencing on the date hereof and for so long as any of the Notes remain outstanding,
neither the Company nor any of its affiliates or Subsidiaries, nor any of its or their respective officers, employees,
directors, agents or other representatives, will, without the prior written consent of the Purchaser (which consent may be
withheld, delayed or conditioned in the Purchaser’s sole discretion), directly or indirectly: (a) solicit, initiate,
encourage or accept any other inquiries, proposals or offers from any Person (other than the Purchaser) relating to any
exchange (i) of any security of the Company or any of its Subsidiaries for any other security of the Company or any of its
Subsidiaries; or (ii) of any indebtedness or other securities of, or claim against, the Company or any of its Subsidiaries
relying on the exemption provided by Section 3(a)(10) of the Securities Act (any
such transaction described in clauses (i) or (ii), an “Exchange Transaction”); (b) enter into, effect, alter,
amend, announce or recommend to its stockholders any Exchange Transaction with any Person (other than the Purchaser); or (c)
participate in any discussions, conversations, negotiations or other communications with any Person (other than the
Purchaser) regarding any Exchange Transaction, or furnish to any Person (other than the Purchaser) any information with
respect to any Exchange Transaction, or otherwise cooperate in any way, assist or participate in, facilitate or encourage any
effort or attempt by any Person (other than the Purchaser) to seek an Exchange Transaction involving the Company or any
of its Subsidiaries. In addition, for so long as any of the Notes remain
outstanding, neither the Company nor any of its affiliates or Subsidiaries, nor any of its or their respective officers,
employees, directors, agents or other representatives, will, without the prior written consent of the Purchaser (which
consent may be withheld, delayed or conditioned in the Purchaser’s sole discretion), directly or indirectly, cooperate
in any way, assist or participate in, facilitate or encourage any effort or attempt by any Person (other than the Purchaser) to
effect any acquisition of securities or indebtedness of, or claim against, the Company by such Person from an existing
holder of such securities, indebtedness or claim in connection with a proposed exchange of such securities or indebtedness
of, or claim against, the Company (whether pursuant to Section 3(a)(9) or 3(a)(10) of the 1933 Act or otherwise) (a
“Third Party Exchange Transfer”). The Company, its affiliates and Subsidiaries, and each of its and their
respective officers, employees, directors, agents or other representatives shall immediately cease and cause to be terminated
all existing discussions, conversations, negotiations and other communications with any Persons (other than the Purchaser)
with respect to any of the foregoing. The Company shall promptly (and in no event later than 24 hours after receipt) notify
(which notice shall be provided orally and in writing and shall identify the Person making the inquiry, request, proposal or
offer and set forth the material terms thereof) the Purchaser after receipt of any inquiry, request, proposal or offer
relating to any Exchange Transaction or Third Party Exchange Transfer, and shall promptly (and in no event later than 24
hours after receipt) provide copies to the Purchaser of any written inquiries, requests, proposals or offers relating
thereto. The Company agrees that it and its affiliates and Subsidiaries, and each of its and their respective officers,
employees, directors, agents or other representatives Subsidiaries will not enter into any agreement with any Person
subsequent to the date hereof which prohibits the Company from providing any information to the Purchaser in accordance with
this provision. For all purposes of this Agreement, violations of the restrictions set forth in this Section 4.16 by
any Subsidiary or affiliate of the Company, or any officer, employee, director, agent or other representative of the Company
or any of its Subsidiaries or affiliates shall be deemed a direct breach of this Section 4.16 by the Company.

 

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4.17
Stock Dividends and Stock Splits. If the Company, at any time while any of the Notes are outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any
Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
conversion of, or payment of interest on, the Notes), (ii) subdivides outstanding shares of Common Stock into a larger number
of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number
of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the
Company, then the Fixed Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

4.18
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 4.17 above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Purchaser will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Purchaser could have acquired
if the Purchaser had held the number of shares of Common Stock acquirable upon complete conversion of any of the Notes (without
regard to any limitations on exercise hereof, including without limitation, any beneficial ownership limitations contained in
the Notes) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights (provided, however, to the extent that the Purchaser’s right to participate in any
such Purchase Right would result in the Purchaser exceeding any beneficial ownership limitation contained in the Notes, then the
Purchaser shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of
Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance
for the Purchaser until such time, if ever, as its right thereto would not result in the Purchaser exceeding the any beneficial
ownership limitations contained in the Notes).

 

4.19
Pro Rata Distributions. During such time as any of the Notes are outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of
return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of the Notes, then, in each such case, the Purchaser shall be entitled
to participate in such Distribution to the same extent that the Purchaser would have participated therein if the Purchaser had
held the number of shares of Common Stock acquirable upon complete exercise of the Notes (without regard to any limitations on
exercise hereof, including without limitation, the any beneficial ownership limitations contained in the Notes) immediately before
the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders
of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to
the extent that the Purchaser’s right to participate in any such Distribution would result in the Purchaser exceeding any
beneficial ownership limitation contained in the Notes, then the Purchaser shall not be entitled to participate in such Distribution
to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent)
and the portion of such Distribution shall be held in abeyance for the benefit of the Purchaser until such time, if ever, as its
right thereto would not result in the Purchaser exceeding any beneficial ownership limitation contained in the Notes).

 

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4.20
Fundamental Transaction. If, at any time while any of the Notes are outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of thirty-five (35%)
or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly
or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby
such other Person acquires more than thirty-five (35%) of the outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons
making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent conversion of the Notes, the Purchaser shall have the right to receive, for each Conversion Share that
would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard
to any limitation in the Notes on the conversion of the Notes), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Notes
are convertible immediately prior to such Fundamental Transaction (without regard to any limitation in the Notes on the conversion
of such Note). For purposes of any such conversion, the determination of the Fixed Conversion Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of
Common Stock in such Fundamental Transaction, and the Company shall apportion the Fixed Conversion Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Purchaser shall be given the same choice as to the Alternate Consideration it receives upon any conversion of the Notes following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under the Notes
and any document ancillary hereto, in accordance with the provisions of this Section 4.20 pursuant to written agreements in form
and substance reasonably satisfactory to the Purchaser and approved by the Purchaser (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the holder of the Notes, deliver to the Purchaser in exchange for the Notes
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Notes
which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon conversion of the Notes (without regard to any limitations on the
conversion of the Notes) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price
hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to
such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion
price being for the purpose of protecting the economic value of the Notes immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Purchaser. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of the Notes and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under the Notes and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein.

 

    	 	32	 

    	 

    

 

4.21. Filing
and Effectiveness of Registration Statement.

 

(a)
Not later than the Filing Date, the Company shall file with the Commission a draft Registration Statement on Form S-1
relating to the resale by the Purchaser of all (or such other number as the Commission will permit) the Conversion Shares.
The Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act
as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall
use its best efforts to keep the Registration Statement continuously effective under the Securities Act until all Conversion
Shares covered by the Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold
without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in
compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the
Purchaser.

 

    	 	33	 

    	 

    

 

(b)
Notwithstanding the registration obligations set forth in Section 4.21(a), if the Commission informs the Company that all of
the Conversion Shares cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on
a single registration statement, the Company agrees to promptly inform the Purchaser and use its best efforts to file
amendments to the Registration Statement as required by the Commission, covering the maximum number of Conversion Shares
permitted to be registered by the Commission, on Form S-1 or such other form available to register for resale the Conversion
Shares as a secondary offering, subject to the provisions of Section 2(d); with respect to filing on Form S-1 or other
appropriate form; provided, however, that prior to filing such amendment, the Company shall be obligated to use
diligent efforts to advocate with the Commission for the registration of all of the Conversion Shares in accordance with the
SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09.

 

(c)
Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the
number of Conversion Shares permitted to be registered on a particular Registration Statement as a secondary offering (and
notwithstanding that the Company used diligent efforts to advocate with the Commission for the registration of all or a
greater portion of Conversion Shares), unless otherwise directed in writing by the Purchase as the Conversion Shares, the
number of Conversion Shares to be registered on such Registration Statement will be reduced as follows: the Company shall
reduce or eliminate any securities to be included by any Person other than the Purchaser.

 

In
the event of a cutback hereunder, the Company shall give the Purchaser at least five (5) Trading Days prior written notice along
with the calculations as to the Purchaser’s allotment. In the event the Company amends the Registration Statement in accordance
with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by Commission or
SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form S-1
or such other form available to register for resale those Conversion Shares that were not registered for resale on the Registration
Statement, as amended. Such an additional registration statement shall be subject to this Section 4.21.

 

(d)
If Form S-1 is not available for the registration of the resale of the Conversion Shares hereunder, the Company shall (i)
register the resale of the Conversion Shares on another appropriate form and (ii) undertake to register the Conversion Shares
on Form S-1 as soon as such form is available, provided that the Company shall maintain the effectiveness of the
Registration Statement then in effect until such time as a Registration Statement on Form S-1 covering the Conversion has
been declared effective by the Commission.

 

4.22 Prohibition
on Registration Statements for the Benefit of Any Person. Other than the Registration Statement required to be filed
pursuant to Section 4.21 and any other registration statements on Form S-1 or S-3 that are required to be filed pursuant to a
written agreement entered into prior to the date of this Agreement, as long as any of the Notes remain outstanding the
Company shall not file with the Commission any registration statements on Form S-1, S-3 or any other forms for registration
statement.

 

    	 	34	 

    	 

    

 

ARTICLE
V. 

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by the Purchaser, as to the Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other
parties, if the First Closing has not been consummated on or before April 30, 2017; provided, however, that such termination will
not affect the right of any party to sue for any breach by any other party (or parties).

 

5.2
Fees and Expenses. The Company has agreed
to reimburse the Purchaser’s legal counsel $5,000 for its legal fees. The Company shall deliver to the Purchaser, prior
to the First Closing, a completed and executed copy of the Closing Statement, attached hereto as Annex A. Except as expressly
set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all transfer agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company
and any Notice of Conversion delivered by the Purchaser), stamp taxes and other taxes and duties levied in connection with the
delivery of the Conversion Shares to the Purchaser.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of: (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 12:00 p.m.
(New York City time) on a Trading Day; (ii) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading
Day or later than 12:00 p.m. (New York City time) on any Trading Day; (iii) the second (2nd) Trading Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier service; or (iv) upon actual receipt by the party
to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature
pages attached hereto.

 

    	 	35	 

    	 

    

 

5.5
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written
instrument signed, in the case of an amendment, by the Company and the Purchaser, or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or
a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

 

5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this Agreement to any
Person to whom the Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchaser”.

 

5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.10.

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either
party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to
the obligations of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be reimbursed
by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

    	 	36	 

    	 

    

 

5.10
Survival. The representations and warranties contained herein shall survive the Closings and the delivery of the Securities.

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever the Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however, that in
the case of a rescission of a conversion of a Note, the applicable Purchaser shall be required to return any shares of Common
Stock subject to any such rescinded conversion notice concurrently with the return to the Purchaser of the aggregate exercise
price paid to the Company for such shares.

 

5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

    	 	37	 

    	 

    

 

5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree
that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by the Purchaser in
order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in
any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them,
when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents
exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction
Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum
contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date
thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess
of the Maximum Rate is paid by the Company to the Purchaser with respect to indebtedness evidenced by the Transaction Documents,
such excess shall be applied by the Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company,
the manner of handling such excess to be at the Purchaser’s election.

 

    	 	38	 

    	 

    

 

5.18
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under
the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial
liquidated damages or other amounts are due and payable shall have been canceled.

 

5.19
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.20
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.21
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[Signature
Pages Follow]

 

    	 	39	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

 

	PETROTERRA
    CORP. 	Address
    for Notice: 	 
	 	 	2833
    Exchange Ct.
	 	 	West
    Palm Beach, FL 33409
	 	 	 
	By:
    	/s/
    Steven Yariv	Fax:
    	 
	Name:	Steven
    Yariv	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	With a copy to (which shall not constitute notice): 	 
	 	 	 
	Pryor Cashman LLP	 	 
	7 Times Square	 	 
	New York, NY 10036	 	 
	Attn: M. Ali Panjwani	 	 
	 	 	 	 	 	 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE
PAGE FOR PURCHASER FOLLOWS] 

 

    	 	40	 

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO PETROTERRA CORP. SECURITIES PURCHASE AGREEMENT] 

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

 

Name of Purchaser:   

Signature of Authorized Signatory of   

 Purchaser:
______________________________

 

Name of Authorized Signatory:   

______________________________________ 
 

 

Title of Authorized   

Signatory:  _____________________________

 

Email
Address of Authorized   

Signatory:  _____________________________

 

Facsimile Number of Authorized   

Signatory: _____________________________

 

Address for Notice to Purchaser:   

         

Address
for Delivery of Securities to Purchaser (if not same as address for notice): 

 

First
Closing Principal Amount: $100,000

 

First
Closing Subscription Amount: $100,000

 

EINNumber:  _____________________

 

    	 	41Exhibit 10.1

 

SEVENTH
AMENDMENT TO CREDIT AGREEMENT

 

SEVENTH
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of April 21, 2017, is entered into by
and among

 

WELLS FARGO BANK,
NATIONAL ASSOCIATION, successor by merger to WELLS FARGO RETAIL FINANCE, LLC (“U.S. Lender”),

 

WELLS FARGO CAPITAL
FINANCE CORPORATION CANADA (“Canadian Lender” and together with the U.S. Lender, the “Lenders”
and each a “Lender”),

 

GREAT AMERICAN
GROUP WF, LLC, a California limited liability company (“Original Borrower”),

 

GA
Retail, Inc., a California corporation, together with any other affiliate of Original Borrower party to the Credit Agreement
from time to time as a borrower (such affiliates, together with Original Borrower, each a “U.S. Borrower” and
collectively “U.S. Borrowers”), and

 

GA RETAIL CANADA,
ULC, a British Columbia unlimited company (the “Canadian Borrower” and, together with the U.S. Borrowers, the
“Borrowers”; the Borrowers, together with B. Riley Financial, Inc., a Delaware corporation, f/k/a Great American
Group, Inc., Great American Group, LLC, a California limited liability company, and/or any Subsidiary of any of the foregoing which
is or which becomes a party to any Loan Document from time to time, the “Credit Parties”).

 

WHEREAS:

 

A.           Borrowers
and Lenders are party to that certain Second Amended & Restated Credit Agreement dated as of July 15, 2013 (as amended by that
certain First Amendment to Credit Agreement and Limited Consent and Waiver, dated May 28, 2014, as further amended by that certain
Second Amendment to Credit Agreement, dated as of August 28, 2014, as further amended by that certain Third Amendment to Credit
Agreement and that certain Joinder to Loan Documents each dated as of February 5, 2015, as further amended by that certain Fourth
Amendment to Credit Agreement, dated as of February 19, 2015, as further amended by that certain Fifth Amendment to Credit Agreement,
dated as of June 10, 2016, as further amended by that certain Sixth Amendment and Joinder to Credit Agreement, dated as of October
5, 2016, and as may be further amended, restated, supplemented or otherwise modified, renewed or replaced from time to time, the
“Credit Agreement”), pursuant to which Lenders agreed, subject to the terms and conditions thereof, to extend
credit and make certain other financial accommodations available to the Borrowers; and

 

B.           The
Credit Parties have requested that Lenders increase the Revolving Loan Ceiling and agree to effect certain amendments to the Credit
Agreement, all as more specifically set forth herein, and Lenders are willing to effect such amendments on the terms and conditions
hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties signatory hereto agree as follows:

 

1.          Definitions.
Capitalized terms not otherwise defined herein shall have the respective meanings given such terms in the Credit Agreement.

 

    	 	 	 

     

    

  

2.           Amendments
to Credit Agreement. Effective as of the Effective Date, the Credit Agreement is hereby amended as follows:

 

(a)          The
Credit Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example:
stricken text) and to add the double-underlined text (indicated textually in the
same manner as the following example: double-underlined text)
as set forth in the pages of the Credit Agreement attached hereto as Annex I.

 

(b)          The
following Exhibits to the Credit Agreement are hereby deleted in their entirety and replaced with the corresponding Exhibits attached
hereto as Annex II:

 

(i)          Exhibit
2.1(a)(i) (Form of Liquidation Loan Proposal); and

 

(ii)         Exhibit
2.1(i) (Form of Note).

 

3.           Representations
and Warranties. Borrowers represent and warrant to Lenders that:

 

(a)          the
representations and warranties set forth in the Credit Agreement and in each of the other Loan Documents are true and correct on
and as of the date hereof, as though made on such date, and as if each reference therein to “this Agreement” or the
“Credit Agreement” or the like includes reference to this Amendment and the Credit Agreement as amended hereby (except
to the extent that such representations and warranties expressly relate to an earlier date, in which case they are true and correct
as of such earlier date);

 

(b)          the
execution, delivery and performance of this Amendment by each Credit Party (i) are all within such Credit Party’s corporate
powers, (ii) are not in contravention of any Laws or the terms of such Credit Party’s Organizational Documents, or any indenture,
agreement or undertaking to which such Credit Party is a party or by which such Credit Party or its property is bound, and (iii)
shall not result in the creation or imposition of any lien, claim, charge or encumbrance upon any of the Collateral, except in
favor of U.S. Lender pursuant to the Credit Agreement and the other Loan Documents as amended hereby;

 

(c)          this
Amendment and each other agreement or instrument to be executed and delivered by Credit Parties in connection herewith have been
duly authorized, executed and delivered by all necessary action on the part of each applicable Credit Party and, if necessary,
its stockholders, as the case may be, and the agreements and obligations of each Credit Party contained herein and therein constitute
the legal, valid and binding obligations of such Credit Party, enforceable against it in accordance with their terms, except as
enforceability is limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditor’s
rights generally and by general principles of equity;

 

(d)          after
giving effect to this Amendment, no Default or Event of Default exists as of the date hereof; and

 

(e)          no
action of, or filing with, or consent of any Governmental Authority, and no approval or consent of any other party (other than,
in each case, actions, filings or consents that have already been taken, made or obtained) is required to authorize, or is otherwise
required in connection with, the execution, delivery and performance of this Amendment.

 

    	 	 	 

     

    

 

 

4.           Conditions
Precedent. The amendments set forth in this Amendment shall not be effective until each of the following conditions precedent
are satisfied in a manner satisfactory to Lenders (the “Effective Date”):

 

(a)          receipt
by Lenders of the following documents, each duly authorized and executed by the applicable Credit Parties party thereto:

 

(i)          this
Amendment;

 

(ii)         the
Seventh Amendment Fee Letter; and

 

(iii)        the
Note, in the original principal amount of the Revolving Credit Ceiling, substantially in the form of Exhibit 2.1(i) to the Credit
Agreement (as modified hereby).

 

(b)          Credit
Parties shall have paid all fees payable under the Seventh Amendment Fee Letter, and all other fees required to be reimbursed or
paid by Credit Parties pursuant to the terms of the Credit Agreement (including Lender Expenses pursuant to Section 11.4 of the
Credit Agreement and the reasonable fees and expenses of Choate, Hall & Stewart LLP, counsel to Lenders);

 

(c)          after
giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing, nor shall any Default or
Event of Default result from the consummation of the transactions contemplated herein;

 

(d)          each
Credit Party shall each have delivered the following to the Lenders, in form and substance reasonably satisfactory to the Lenders:

 

(i)          a
certificate of good standing issued by its jurisdiction of incorporation; and

 

(ii)         a
certificate of an authorized officer certifying to the due adoption, continued effectiveness, and setting forth the text, of each
corporate resolution adopted in connection with this Amendment and the documents being executed and delivered herewith, and attesting
to the true signatures of each Person authorized as a signatory to any of such Loan Documents, together with true and accurate
copies of all Organizational Documents or a certification by such Credit Party that there has not been any change in the Organizational
Documents which were last delivered to Lenders;

 

(e)          the
Credit Parties shall have executed and delivered to the Lenders such additional documents, instruments, and agreements as the Lenders
may reasonably request in connection herewith; and

 

(f)          all
orders, permissions, consents, approvals, licenses, authorizations and validations of, and filings, recordings and registrations
with, and exemptions by, any Governmental Authority, or any other Person required to authorize or otherwise required in connection
with the execution, delivery and performance by each Credit Party of this Amendment and the transactions contemplated, shall have
been obtained and shall be in full force and effect.

 

5.           Effect
on Loan Documents. As amended hereby, the Credit Agreement and the other Loan Documents shall be and remain in full force and
effect in accordance with their terms and hereby are ratified and confirmed by each Credit Party in all respects. The execution,
delivery, and performance of this Amendment shall not operate as a waiver of any right, power, or remedy of Lenders under the Credit
Agreement or the other Loan Documents. Each Credit Party hereby ratifies and confirms in all respects all of its obligations and
any prior grant of a security interest under the Credit Agreement and the other Loan Documents to which it is a party.

 

    	 	 	 

     

    

  

6.           Further
Assurances. Each Credit Party shall execute and deliver all agreements, documents and instruments, each in form and substance
satisfactory to Lenders, and take all actions as Lenders may reasonably request from time to time, to perfect and maintain the
perfection and priority of the security interest in the Collateral held by Lenders and to fully consummate the transactions contemplated
under this Amendment and the Credit Agreement, as modified hereby.

 

7.           Release.
Each Credit Party hereby remises, releases, acquits, satisfies and forever discharges Lenders, their respective agents, employees,
officers, directors, predecessors, attorneys and all others acting on behalf of or at the direction of Lenders, of and from any
and all manner of actions, causes of action, suits, debts, accounts, covenants, contracts, controversies, agreements, variances,
damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, or now has, to the
extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof,
against Lenders, its agents, employees, officers, directors, attorneys and all persons acting on behalf of or at the direction
of Lenders (“Releasees”), for, upon or by reason of any matter, cause or thing whatsoever through the date hereof.
Without limiting the generality of the foregoing, each Credit Party waives and affirmatively agrees not to allege or otherwise
pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they have or may have
as of the date hereof, including, but not limited to, the rights to contest any conduct of Lenders or other Releasees on or prior
to the date hereof.

 

8.           No
Novation; Entire Agreement. This Amendment is not a novation or discharge of the terms and provisions of the obligations of
Credit Parties under the Credit Agreement and the other Loan Documents. There are no other understandings, express or implied,
among Credit Parties and Lenders regarding the subject matter hereof or thereof.

 

9.           Governing
Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

 

10.         Counterparts;
Electronic Execution. This Amendment may be executed in any number of counterparts and by different parties and separate counterparts,
each of which when so executed and delivered shall be deemed an original, and all of which, when taken together, shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or other electronic
transmission shall be as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering an executed
counterpart of this Amendment by facsimile or other electronic transmission also shall deliver a manually executed counterpart
of this Amendment but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and
binding effect of this Amendment.

 

11.         Construction.
This Amendment and the Credit Agreement shall be construed collectively and in the event that any term, provision or condition
of any of such documents is inconsistent with or contradictory to any term, provision or condition of any other such document,
the terms, provisions and conditions of this Amendment shall supersede and control the terms, provisions and conditions of the
Credit Agreement. Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “herein”, “hereof” or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”,
“thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as modified hereby.

   

[Signature Pages Follow]

 

    	 	 	 

     

    

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

 

	 	GREAT AMERICAN GROUP WF, LLC, a California limited liability company
	 	 	 
	 	By: 	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title: 	Authorized Signer
	 	 	 
	 	gA RETAIL, Inc., a California corporation
	 	 	 
	 	By: 	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title: 	Authorized Signer
	 	 	 
	 	GA Retail Canada, ULC, an unlimited liability company formed under the laws of the Province of British Columbia
	 	 	 
	 	By: 	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title: 	Authorized Signer

 

[Signature Page to Seventh Amendment to Credit
Agreement]

 

    	 	 	 

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:  	/s/ Joseph Burt
	 	Name: 	Joseph Burt
	 	Title: 	Director
	 	 	 
	 	WELLS FARGO CAPITAL FINANCE CORPORATION CANADA
	 	 	 
	 	By:  	/s/ David G. Phillips
	 	Name: 	David G. Phillips
	 	Title:	Senior Vice President Credit Officer, Canada 

Wells Fargo Capital Finance Corporation
    Canada

 

[Signature Page to Seventh Amendment to Credit
Agreement]

 

    	 	 	 

     

    

 

ACKNOWLEDGEMENT AND AGREEMENT

 

Each of the undersigned hereby acknowledges and agrees to the provisions
of the foregoing Amendment applicable to it, including but not limited to the releases set forth in Section 7.

 

	 	B. RILEY FINANCIAL, INC., a Delaware corporation (f/k/a Great American Group, Inc.)
	 	 	 
	 	By:  	/s/ Phillip J. Ahn
	 	Name:  	Phillip J. Ahn
	 	Title:  	Chief Financial Officer &
	 	 	Chief Operating Officer
	 	 	 
	 	great american group, llc, a California limited liability company
	 	 	 
	 	By:  	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title:  	Chief Financial Officer &
	 	 	Chief Operating Officer

 

[Signature Page to Seventh Amendment to Credit
Agreement]

 

    	 	 	 

     

    

 

Annex I

 

Conformed Credit Agreement

 

(See attached)

    	 	 	 

     

    

 

[CONFORMED COPY THROUGH SIXTHSEVENTH
AMENDMENT]

 

SECOND AMENDED & RESTATED CREDIT AGREEMENT

 

Dated as of July 15, 2013

 

between

 

GREAT AMERICAN GROUP WF, LLC,

 

as a Borrower,

 

certain other Borrowers who may become party
hereto

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as the U.S. Lender

 

Wells
Fargo Capital Finance Corporation Canada

 

as the Canadian Lender

 

    	 	 	 

     

    

 

TABLE
OF CONTENTS

 

	SECTION	 	PAGE
	 	 	 
	1.         DEFINITIONS AND CERTAIN RULES OF CONSTRUCTION	22
	 	 	 
	1.1	Definitions	22
	 	 	 
	1.2	Certain Matters of Construction	29
	 	 	 
	2.         AMOUNT AND TERMS OF CREDIT	30
	 	 	 
	2.1	Advances and Letters of
    Credit	30
	 	 	 
	2.2	Use of Proceeds	35
	 	 	 
	2.3	Maturity of Advances	35
	 	 	 
	2.4	Interest and Letter of
    Credit Fees	35
	 	 	 
	2.5	Fees	38
	 	 	 
	2.6	Cash Management Systems	39
	 	 	 
	2.7	Payments	42
	 	 	 
	2.8	Application and Allocation
    of Payments	43
	 	 	 
	2.9	Loan Account and Accounting	45
	 	 	 
	2.10	Disbursements & Disbursement
    Account	45
	 	 	 
	2.11	Indemnity	46
	 	 	 
	2.12	Access	46
	 	 	 
	2.13	Taxes	47
	 	 	 
	2.14	Capital Requirements	49
	 	 	 
	2.15	Communication with Accountants
    and Other Professionals	49
	 	 	 
	2.16	Designation of Original
    Borrower as Borrowers’ Agent	49
	 	 	 
	2.17	Joint and Several Liability
    of Borrowers	50
	 	 	 
	2.18	Joinders	52
	 	 	 
	2.19	Currency Matters	52
	 	 	 
	3.         CONDITIONS PRECEDENT	53
	 	 	 
	3.1	Conditions to the Occurrence
    of the Restatement Date	53
	 	 	 
	3.2	Conditions to each Inventory,
    Other Assets Advance and Letter of Credit	54
	 	 	 
	3.3	Further Conditions to
    Each Liquidation Borrowing	56
	 	 	 
	4.         REPRESENTATIONS AND WARRANTIES	57
	 	 	 
	4.1	Limited Liability Company
    Existence; Compliance with Law	57
	 	 	 
	4.2	Executive Offices; FEIN;
    Organizational Number	57
	 	 	 
	4.3	Company Power, Authorization,
    Enforceable Obligations	58
	 	 	 
	4.4	Material Adverse Effect	58

 

    	 	i	 

     

    

 

	4.5	Agreements
    Entered Into by Borrowers	58
	 	 	 
	4.6	Ownership of Property;
    Liens	58
	 	 	 
	4.7	Operations of Borrower	58
	 	 	 
	4.8	Ventures, Subsidiaries
    and Affiliates, and Indebtedness	59
	 	 	 
	4.9	Requirements of Law	59
	 	 	 
	4.10	Margin Regulations	59
	 	 	 
	4.11	Taxes	60
	 	 	 
	4.12	ERISA and Canadian Plans	60
	 	 	 
	4.13	No Litigation	60
	 	 	 
	4.14	Brokers	60
	 	 	 
	4.15	Full Disclosure	60
	 	 	 
	4.16	Environmental Matters	60
	 	 	 
	4.17	Deposit and Disbursement
    Accounts	61
	 	 	 
	4.18	Government Contracts	61
	 	 	 
	4.19	Solvency; Fraudulent Transfer	61
	 	 	 
	4.20	Liquidation Sales Agreements	61
	 	 	 
	4.21	Patriot Act, Foreign Assets,
    Etc	62
	 	 	 
	4.22	No Events of Default	62
	 	 	 
	4.23	Use of Proceeds	63
	 	 	 
	4.24	Investments	63
	 	 	 
	4.25	Indebtedness	63
	 	 	 
	4.26	GAG Purchase Agreement	63
	 	 	 
	5.         FINANCIAL STATEMENTS AND INFORMATION	63
	 	 	 
	5.1	Reports and Notices	63
	 	 	 
	5.2	Reports Relating to Liquidation
    Sales	63
	 	 	 
	5.3	Financial Reports and
    SEC Filings	63
	 	 	 
	6.         AFFIRMATIVE COVENANTS	65
	 	 	 
	6.1	Maintenance of Existence
    and Conduct of Business	65
	 	 	 
	6.2	Payment of Obligations	65
	 	 	 
	6.3	Books and Records	66
	 	 	 
	6.4	Insurance	66
	 	 	 
	6.5	Compliance with Laws	67
	 	 	 
	6.6	Supplemental Disclosure	67
	 	 	 
	6.7	Intellectual Property	67
	 	 	 
	6.8	Environmental Matters	67

 

    	 	ii	 

     

    

 

	6.9	Further Assurances	68
	 	 	 
	6.10	Liquidation Related Agreements	68
	 	 	 
	6.11	Investment Proceeds, Etc	68
	 	 	 
	6.12	Immediate Notice to the
    Lenders	68
	 	 	 
	6.13	Solvency	69
	 	 	 
	6.14	Tax Matters	69
	 	 	 
	6.15	Borrower’s Activities	70
	 	 	 
	6.16	Applications under the
    CCAA and BIA	71
	 	 	 
	6.17	OFAC;
    Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws	71
	 	 	 
	7.         NEGATIVE COVENANTS	71
	 	 	 
	7.1	Mergers, Subsidiaries,
    Etc	71
	 	 	 
	7.2	Liquidation Related Agreements	71
	 	 	 
	7.3	Investments, Loans and
    Advances	72
	 	 	 
	7.4	Indebtedness	72
	 	 	 
	7.5	Affiliate Transactions	72
	 	 	 
	7.6	Capital Structure and
    Business	72
	 	 	 
	7.7	Guaranteed Indebtedness	72
	 	 	 
	7.8	Liens	73
	 	 	 
	7.9	Sale of Membership Interests
    and Assets	73
	 	 	 
	7.10	ERISA	73
	 	 	 
	7.11	Hazardous Materials	73
	 	 	 
	7.12	Sale-Leasebacks	73
	 	 	 
	7.13	Cancellation of Indebtedness	73
	 	 	 
	7.14	Restricted Payments	73
	 	 	 
	7.15	Change of Company Name
    or Location; Change of Fiscal Year	74
	 	 	 
	7.16	No Speculative Transactions	74
	 	 	 
	7.17	Leases	74
	 	 	 
	7.18	Change of Control	74
	 	 	 
	7.19	Accounting Methods	74
	 	 	 
	7.20	Suspension	74
	 	 	 
	7.21	Benefit Plans	74
	 	 	 
	7.22	Preferred Stock	74
	 	 	 
	7.23	Canadian Pension Plans	74
	 	 	 
	7.24	Use
    of Proceeds	74
	 	 	 
	8.         TERM	75

 

    	 	iii	 

     

    

 

	8.1	Termination	75
	 	 	 
	8.2	Survival of Obligations
    Upon Termination of Financing Arrangements	75
	 	 	 
	9.         EVENTS OF DEFAULT; RIGHTS AND REMEDIES	75
	 	 	 
	9.1	Events of Default	75
	 	 	 
	9.2	Remedies	77
	 	 	 
	9.3	Remedies Cumulative	78
	 	 	 
	9.4	Waivers by Borrower	79
	 	 	 
	10.       SUCCESSORS AND ASSIGNS	79
	 	 	 
	11.       MISCELLANEOUS	79
	 	 	 
	11.1	Complete Agreement; Modification
    of Agreement	79
	 	 	 
	11.2	Amendments	79
	 	 	 
	11.3	Releases	80
	 	 	 
	11.4	Fees and Expenses	80
	 	 	 
	11.5	Tax and Expenses	80
	 	 	 
	11.6	No Waiver	80
	 	 	 
	11.7	Remedies	81
	 	 	 
	11.8	Severability	81
	 	 	 
	11.9	Conflict of Terms	81
	 	 	 
	11.10	Confidentiality	81
	 	 	 
	11.11	CHOICE OF LAW AND VENUE	81
	 	 	 
	11.12	Notices	82
	 	 	 
	11.13	Section Headings	83
	 	 	 
	11.14	Counterparts; Telefacsimile
    Execution	83
	 	 	 
	11.15	WAIVER OF JURY TRIAL	83
	 	 	 
	11.16	Press Releases	84
	 	 	 
	11.17	Reinstatement	84
	 	 	 
	11.18	Advice of Counsel	84
	 	 	 
	11.19	No Strict Construction	84
	 	 	 
	11.20	Effectiveness	84
	 	 	 
	11.21	Intentionally Deleted	84
	 	 	 
	11.22	Right of Set-Off	84
	 	 	 
	11.23	Pledges To Federal Reserve
    Banks	84
	 	 	 
	11.24	USA Patriot Act Notice	85
	 	 	 
	11.25	Canadian Anti-Money Laundering
    Legislation	85
	 	 	 
	11.26	No Joint Venture	85

 

    	 	iv	 

     

    

 

	11.27	Judgment Currency	85
	 	 	 
	11.28	Appointment for Perfection	86
	 	 	 
	11.29	Loss Sharing	86
	 	 	 
	11.26	Amendment & Restatement	86
	 	 	 
	11.31	Appointment of Hypothecary
    Representative	8486
	 	 	 
	11.32	Keepwell	86
	 	 	 
	11.31	Acknowledgment
    and Consent to Bail-In of EEA Financial Institutions	87

 

    	 	v	 

     

    

 

INDEX OF ANNEXES, EXHIBITS AND SCHEDULES

 

	Annexes	 
	 	 
	Annex A 	Schedule of Documents
	 	 
	Annex B	Provisions Governing Letters of Credit
	 	 
	Exhibits	 
	 	 
	Exhibit 2.1-1 	Form of Notice of Revolving Credit Advance 
	 	 
	Exhibit 2.1-2 	Form of Notice of Letter of Credit Request 
	 	 
	Exhibit 2.1(a)(i) 	Form of Liquidation Loan Proposal
	 	 
	Exhibit 2.1(a)(ii)	Form of Lender’s Offer
	 	 
	Exhibit 2.1(i)	Form of Note
	 	 
	Exhibit 10.3	Form of Assignment and Acceptance
	 	 
	Schedules	 
	 	 
	Schedule A 	Borrower’s Authorized Representatives
	 	 
	Schedule 2.1	Lender’s Representative
	 	 
	Schedule 2.1(a)(i)	Due Diligence Requirements for Each Proposed Revolving Credit Advance
	 	 
	Schedule 2.6	Cash Management Banks and Accounts & DDA’s
	 	 
	Schedule 4.8 	List of Great American’s Respective Affiliates 
	 	 
	Schedule 4.17	Deposit and Disbursement Accounts
	 	 
	Schedule 5.2 	Reporting Requirements for Each Liquidation Sale 

 

    	 	vi	 

     

    

 

THIS SECOND AMENDED &
RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of July 15, 2013, by and among GREAT AMERICAN
GROUP WF, LLC, a California limited liability company (“Original Borrower”), any other affiliate or subsidiary
of Original Borrower that becomes a party hereto from time to time (such affiliates, together with Original Borrower, “Borrower”
and collectively “Borrowers”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, successor by merger to WELLS FARGO
RETAIL FINANCE, LLC (“U.S. Lender”).

 

RECITALS

 

A.           Defined
terms used in these Recitals without definition are as defined in Section 1.1 hereof.

 

B.           Original
Borrower is a wholly-owned Subsidiary of Great American and may conduct Liquidation Sales of certain Retail Inventory and Other
Assets of various Merchants, all of which may be financed in part by the Applicable Lender, in the Applicable Lender’s discretion,
pursuant to this Agreement.

 

C.           Original
Borrower conducts such Liquidation Sales pursuant to certain Liquidation Sales Agreements between a Merchant and Original Borrower
or a Liquidator JV. When a Liquidation Sale is conducted through a Liquidator JV, Original Borrower participates in such Liquidation
Sale pursuant to an Agency Agreement, with the other members of the Liquidator JV. The terms of the Agency Agreements set forth
the relative rights, obligations, and duties of the various joint venturers party thereto and establish provisions for the sharing
of payments and other interests among such joint venturers.

 

D.           In
conducting the Liquidation Sales, the applicable Liquidator will be obligated to make certain payments as consideration for the
purchase by such Liquidator of the Retail Inventory or Other Assets covered by the applicable Liquidation Sales Agreements and/or
the right to conduct the going out of business, liquidation, store closing sales, or other sales contemplated by such Liquidation
Sales Agreements.

 

E.           Original
Borrower and U.S. Lender have previously entered into that certain Credit Agreement, dated as of October 21, 2008, as amended and
restated by that certain First Amended and Restated Credit Agreement dated December 8, 2010 among Original Borrower, U.S.
Lender and GA Asset Advisors (the “Existing Credit Agreement”) pursuant to which U.S. Lender agreed, on an uncommitted
basis, to provide loans and letters of credit to finance a portion of the payments Original Borrower and GA Asset Advisors were
required to make under certain Liquidation Sales Agreements.

 

F.           Original
Borrower and GA Asset Advisors have asked U.S. Lender, and U.S. Lender has agreed, to amend and restate the Existing Credit Agreement
in its entirety by this Agreement in order to provide for (i) the removal of GA Asset Advisors from the Existing Credit Agreement,
(ii) the removal of the ability of Borrowers to receive Inventory Advances, Other Asset Advances or Letters of Credit in connection
with the conduct of Liquidation Sales in the United Kingdom, and (iii) to make certain other amendments, all pursuant to and
on the terms and conditions set forth herein, including Section 11.30 hereof.

 

G.           Borrowers
acknowledge that: (i) each Lender is entering into this Agreement on an uncommitted and discretionary basis, with no obligation
to fund any Inventory Advance, Other Assets Advance, or to cause the issuance of any Letter of Credit; provided, however, that
if a Lender does fund an Inventory Advance or Other Assets Advance, such Lender may commit
to fund TotalInitial Expense Advances,
Subsequent Expense Advances or Sales Tax Advances in connection therewith; and (ii) the making by a Lender of any Inventory
Advance or Other Assets Advance, or the issuance of any Letter of Credit, requested hereunder shall not obligate, or represent
a commitment or promise by a Lender, to make any future Revolving Credit Advances or cause the issuance of any other Letter of
Credit.

 

    	 	- 1 -	 

     

    

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants hereinafter contained, the parties hereto agree that the Existing Credit Agreement shall
be amended and restated in its entirety and shall remain in full force and effect as set forth herein:

 

1.           DEFINITIONS
AND CERTAIN RULES OF CONSTRUCTION

 

1.1          Definitions.
For all purposes of this Agreement, capitalized terms used in this Agreement shall have (unless otherwise provided elsewhere in
this Agreement) the following respective meanings when used herein:

 

“Accounts”
shall mean all of any Borrower’s now owned or hereafter acquired right, title, and interest with respect to “accounts”
(as such term is defined from time to time in the Code, the PPSA or other Law applicable to a Borrower), and any and all supporting
obligations in respect thereof.

 

“ACH Transactions”
shall mean any cash management or related services (including the Automated Clearing House processing of electronic funds transfers
through the direct Federal Reserve Fedline system) provided by a Lender or its Affiliates for the account of any Borrower and its
Affiliates.

 

“Administrative
Fee” has the meaning set forth in Section 2.5(e).

 

“Affiliate”
means as applied to any Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control
with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly, of the
power to direct the management and policies of a Person, whether through the ownership of Capital Stock, by contract, or otherwise;
provided, however, that, for purposes hereof: (a) any Person which owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other members of the governing body of a Person or 10%
or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed
to control such Person (except for any such Person who is a member of the Great American Group, in which case the foregoing “10%”
threshold shall instead be “40%” in all cases); (b) each director (or comparable manager) of a Person shall be deemed
to be an Affiliate of such Person; and (c) each partnership or joint venture in which a Person is a partner or joint venturer shall
be deemed to be an Affiliate of such Person; provided, however, no Person (other than a Credit Party or a Subsidiary of a Credit
Party) who is a party to any Liquidation Sales Agreement, or Liquidator Joint Venture Agreement (or any similar agreement or arrangement)
shall be deemed to be an “Affiliate” of a Borrower by virtue of being a party to such agreement or arrangement.

 

“Agency Agreement”
shall mean an Agency Agreement, entered into between a Liquidator and a Merchant in form and substance satisfactory to the Lenders
(including without limitation as to compliance with all applicable Laws), pursuant to which a Liquidator is given the right to
conduct a Liquidation Sale.

 

“Agreement” shall mean this Second Amended and Restated Credit Agreement, dated as
of the date hereof, among Borrowers and the U.S. LenderLenders,
including all annexes, exhibits and schedules, as it may subsequently be amended, restated, supplemented, modified, replaced, or
refinanced.

 

    	 	- 2 -	 

     

    

 

“Aggregate Consideration”
shall mean with respect to each Liquidation Sale conducted by a Borrower (or through a Liquidator JV), the sum of (A) 100% of the
cash consideration payable by a Borrower (including, but not limited to, a Borrower’s share of the consideration payable
by any Liquidator JV under a Liquidation Sales Agreement) under any Liquidation Sales Agreement (including, without limitation,
any Guaranteed Amount or Purchase Price), plus (B) the full undrawn amount of any Letter of Credit a Borrower or a Liquidator JV,
as applicable, is required to post under the applicable Liquidation Sales Agreement to ensure payment of any portion of the Guaranteed
Amount or Purchase Price which has not been paid in cash.

 

“Anti-Corruption
Laws” means the FCPA, the U.K. Bribery Act of 2010, as amended, and all other applicable laws and regulations or ordinances
concerning or relating to bribery, money laundering or corruption in any jurisdiction in which any Credit Party or any of its Subsidiaries
or Affiliates is located or is doing business.

 

“Anti-Money
Laundering Laws” means the applicable laws or regulations in any jurisdiction in which any Credit Party or any of its Subsidiaries
or Affiliates is located or is doing business that relates to money laundering, any predicate crime to money laundering, or any
financial record keeping and reporting requirements related thereto.

 

“Applicable Lender”
means (a) with respect to U.S. Revolving Credit Advances and U.S. Letters of Credit, the U.S. Lender and (b) with respect to Canadian
Revolving Credit Advances and Canadian Letters of Credit, the Canadian Lender.

 

“Authorized Person”
shall mean those Persons listed on Schedule A or any other individual designated in writing by such Person to act on behalf
of a Borrower.

 

“Auto-Extension
Letter of Credit” has the meaning set forth in Annex B. 

 

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

 

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

 

"BA Equivalent Rate"
means, on any day, the average rate per annum as reported on the Reuters Screen CDOR Page (or any successor page or such other
page or commercially available service displaying Canadian interbank bid rates for CAD bankers’ acceptances as the Canadian
Lender may designate from time to time, or if no such substitute service is available, the rate quoted by a Schedule I bank under
the Bank Act (Canada) selected by the Canadian Lender at which such bank is offering to purchase CAD bankers’ acceptances)
as of 10:00 a.m. Eastern (Toronto) time on the date of commencement of the requested Interest Period, for a term, and in an amount,
comparable to the Interest Period and the amount of the BA Rate Loan requested by Canadian Borrower in accordance with this Agreement
(and, if any such reported rate is below zero, then the rate determined pursuant to this definition shall be deemed to be zero).
Each determination of the BA Equivalent Rate shall be made by the Canadian Lender and shall be conclusive in the absence of manifest
error.

 

"BA Rate Loan"
means each portion of the Revolving Loans that bears interest at a rate determined by reference to the BA Equivalent Rate.

 

    	 	- 3 -	 

     

    

 

“Backend L/C”
shall mean a Letter of Credit which Liquidator is required to have issued for the benefit of the Merchant pursuant to a Liquidation
Sales Agreement in order to secure a final payment of the Guaranteed Amount or Purchase Price in connection with a Liquidation
Sale where the Liquidation Sales Agreement does not require the Liquidator to pay to the Merchant a substantial portion of the
Guaranteed Amount or Purchase Price upon the closing of the transaction.

 

“Backend L/C Cash
Collateral” has the meaning set forth in Annex B.

 

“Bank Product Agreements”
shall mean those certain cash management service agreements entered into from time to time by a Credit Party in connection with
any of the Bank Products.

 

“Bank Product
Obligations” means all obligations, (including,
for the avoidance of doubt, Hedging Obligations), liabilities, contingent reimbursement
obligations, fees, and expenses owing by a Credit Party to the Lenders or their Affiliates
pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or
indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that
a Credit Party is obligated to reimburse to the Lenders as a result of a Lender purchasing participations or executing indemnities
or reimbursement obligations with respect to the Bank Products provided to a Credit Party pursuant to the Bank Product Agreements.

 

“Bank Products”
means any service or facility extended to a Credit Party by a Lender or any Affiliate of a Lender including: (a) credit cards,
(b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including
controlled disbursement, accounts or services, (g) Hedge Agreements, or (h) Factored Receivables and other arrangements with respect
to the factoring, sale, put, or other conditional sale or transfer of any Accounts of a Credit Party or accounts payable of a Credit
Party.

 

“Bankruptcy Code”
shall mean the United States Bankruptcy Code as in effect from time to time.

 

“Base LIBO Rate”
means the rate per annum, determined by the Applicable Lender in accordance with its customary procedures, and utilizing such electronic
or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/16%), on the basis of the
rates at which Dollar deposits are offered to major banks in the London interbank market on or about 1:00 p.m. (Boston, Massachusetts
time) two Business Days prior to the commencement of the applicable Interest Period, for a term and in amounts comparable to the
Interest Period and amount of the LIBO Rate Loan requested by a Borrower in accordance with this Agreement, which determination
shall be conclusive in the absence of manifest error.

 

"Base Rate"
means (a) with respect to Revolving Credit Advances denominated in Dollars, U.S. Base Rate and (b) with respect to Revolving Credit
Advances denominated in CAD, Canadian Base Rate.

 

“Benefit Plan”
means a “defined benefit plan” (as defined in Section 3(35) of ERISA) for which a Borrower or any ERISA Affiliate
of a Borrower has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years.

 

"BIA" means
the Bankruptcy and Insolvency Act (Canada) as amended from time to time (or any successor statute).

 

    	 	- 4 -	 

     

    

 

“Blocked Account”
shall have the meaning assigned to it in Section 2.6(e).

 

“Board of Directors”
means the board of directors (or comparable managers) of a Person or any committee thereof duly authorized to act on behalf thereof.

 

“Books”
shall mean all of each Borrower’s now owned or hereafter acquired books and records (including all of its Records indicating,
summarizing, or evidencing its assets (including the Collateral) or liabilities, all of each Borrower’s Records relating
to its business operations or financial condition, and all of its goods or General Intangibles related to such information).

 

“Borrower”
and “Borrowers” shall have the meanings given such terms in the Preamble hereto and includes, for greater certainty,
the Canadian Borrower as of the Sixth Amendment Effective Date.

 

“Borrower Equity
Amount” shall mean, with respect to each Liquidation Sale, the Aggregate Consideration to be provided for by a Borrower
in respect thereto less the aggregate Liquidation Borrowings to be made by the Applicable Lender in respect thereto.

 

“Borrower Equity
Percentage” shall mean, with respect to each Liquidation Sale, the percentage ratio of the Borrower Equity Amount to
the Aggregate Consideration in respect thereto.

 

“Borrower Joinder”
shall mean a joinder agreement, in form and substance satisfactory to the Lenders, from a wholly-owned Subsidiary of Great American
pursuant to which such Subsidiary joins this Agreement as a Borrower. For greater certainty, the Sixth Amendment and Joinder to
Credit Agreement, dated the Sixth Amendment Effective Date, shall constitute a Borrower Joinder with respect to the Canadian Borrower.

 

“Budget”
shall mean, with respect to each Liquidation Sale, the budget for such Liquidation Sale prepared by a Borrower and delivered to
the Applicable Lender with the Liquidation Loan Proposal for such Liquidation Sale, together with any modifications thereto agreed
to in writing by a Borrower and the Applicable Lender, all in such form and substance as may be reasonably acceptable to the Applicable
Lender.

 

“Burdale”
means Burdale Financial Limited.

 

“Business Day”
shall mean any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in the Commonwealth
of Massachusetts or the State of California; except that, for any Borrower, if a determination of a Business Day shall relate to
a LIBO Rate Loan, the term “Business Day” also shall exclude any day on which banks are closed for dealings in Dollar
deposits in the London interbank market.

 

“B. Riley”
means B. Riley and Co., LLC, a Delaware limited liability company.

 

"CAD" or
"C$" means the lawful currency of Canada.

 

"Canadian Anti-Money
Laundering & Anti-Terrorism Legislation" means the Criminal Code, R.S.C. 1985, c. C-46, The Proceeds of
Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000, c. 17 and the United Nations Act, R.S.C. 1985, c.U-2
or any similar Canadian legislation, together with all rules, regulations and interpretations thereunder or related thereto including
the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism and the United Nations Al-Qaida and
Taliban Regulations promulgated under the United Nations Act.

 

    	 	- 5 -	 

     

    

 

“Canadian Base Rate”
means, for any day, a rate per annum equal to the greater of (a) the BA Equivalent Rate existing on such day (which rate shall
be calculated based upon an Interest Period of 1 month), plus 1 percentage point, and (b) the “prime rate” for CAD
commercial loans made in Canada as reported by Thomson Reuters under Reuters Instrument Code <CAPRIME=> on the “CA
Prime Rate (Domestic Interest Rate) – Composite Display” page (or any successor page or such other commercially available
service or source (including the CAD “prime rate” announced by a Schedule I bank under the Bank Act (Canada))
as the Canadian Lender may designate from time to time). Each determination of the Canadian Base Rate shall be made by the Canadian
Lender and shall be conclusive in the absence of manifest error.

 

"Canadian Benefit
Plan" means all material employee benefit plans of any nature or kind whatsoever that are not Canadian Pension Plans and
are maintained or contributed to by a Credit Party.

 

“Canadian Blocked
Person” means any Person that is a “designated person”, “politically exposed foreign person”
or “terrorist group” as described in any Canadian Economic Sanctions and Export Control Laws.

 

“Canadian Borrower”
means GA RETAIL CANADA, ULC, an unlimited liability company formed under the laws of the Province of British Columbia.

 

“Canadian Economic
Sanctions and Export Control Laws” means any Canadian laws, regulations or orders governing transactions in controlled
goods or technologies or dealings with countries, entities, organizations, or individuals subject to economic sanctions and similar
measures, including the Special Economic Measures Act (Canada), the United Nations Act (Canada), the Freezing
Assets of Corrupt Foreign Officials Act (Canada), Part II.1 of the Criminal Code, (Canada) and the Export and Import
Permits Act (Canada), and any related regulations.

 

"Canadian Issuing
Bank" means WFCFCC.

 

“Canadian Lender”
means WFCFCC.

 

"Canadian Letter
of Credit" means a letter of credit issued by Canadian Issuing Bank for the account of a Canadian Borrower in either Dollars
or CAD.

 

"Canadian L/C Usage"
means, as of any date of determination, the aggregate undrawn amount of all outstanding Canadian Letters of Credit minus any undrawn
amount of any outstanding Canadian Letters of Credit previously calculated as Canadian L/C Usage that are subject to Letter of
Credit Collateralization on such date of determination.

 

"Canadian Pension
Plans" means each pension plan required to be registered under Canadian federal or provincial law that is maintained or
contributed to by a Credit Party for its employees or former employees but does not include the Canada Pension Plan or the Quebec
Pension Plan as maintained by the Government of Canada or the Province of Quebec, respectively.

 

    	 	- 6 -	 

     

    

 

“Canadian Priority
Payable Reserves” means reserves established in the good faith credit discretion of the Applicable Lender for amounts
secured by any Liens, choate or inchoate, which rank or are capable of ranking in priority to the Lenders’ Liens and/or for
amounts which may represent costs relating to the enforcement of the Lenders’ Liens including, without limitation, in the
good faith credit discretion of the Lenders, any such amounts due and not paid for wages, vacation pay, amounts due and not paid
under any legislation relating to workers’ compensation or to employment insurance, all amounts deducted or withheld and
not paid and remitted when due under the Income Tax Act (Canada), amounts currently or past due and not paid for realty,
municipal or similar taxes, any and all solvency deficiencies, unfunded liabilities on wind-up or wind-up deficiencies in regards
to any Canadian Pension Plan which is a defined benefit plan (to the extent impacting personal or moveable property) and all amounts
currently or past due and not contributed, remitted or paid to any Canada Pension Plan, the Pension Benefits Act
(Ontario) or any similar legislation.

 

“Canadian Revolving
Credit Advance” shall have the meaning assigned to it in Section 2.1(a).

 

“Canadian Security
Agreement” means (a) the Security Agreement, dated as of the Sixth Amendment Effective Date, between Canadian Borrower
and the Applicable Lender, or (b) any deed of hypothec entered into from time to time between the Canadian Borrower and Applicable
Lender, in all cases, as it may subsequently be amended, restated, modified, supplemented, or replaced.

 

“Capital Lease”
shall mean a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.

 

“Capital Stock”
means with respect to any person, any and all shares of capital stock, any membership, partnership or other ownership interest
or any other class of stock or equity interests, participations or other equivalents in such Person (however designated, whether
voting or non-voting, general or limited) of such Person’s capital, whether now outstanding or issued after the Closing Date.

 

“Cash Collateralized”
has the meaning set forth in Annex B, Section 9.

 

“Cash Management
Account” shall have the meaning given such term in Section 2.6(a).

 

“Cash Management
Bank” shall have the meaning given such term in Section 2.6(a).

 

“CCAA”
means the Companies' Creditors Arrangement Act (Canada) as amended from time to time (or any successor statute).

 

“Change of Control”
shall mean, at any time:

 

(a)          occupation
of a majority of the seats (other than vacant seats) on the Board of Directors (or other body exercising similar management authority)
of GAG Inc. by Persons who are not Continuing Directors and were neither (i) nominated by the Permitted Holders nor (ii) appointed
by directors so nominated;(a) [reserved];

 

(b)          any
Person or “group” (within the meaning of the Securities and Exchange Act of 1934, as amended), other than a Permitted
Holder, is or becomes the beneficial owner (within the meaning of Rule 13d-3 or 13d-5 of the Securities and Exchange
Act of 1934, as amended, except that such Person or group shall be deemed to have “beneficial ownership” of
all Capital Stock that such Person or group has the right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of (i) twentythirty-five
percent (2535%) or more (on a fully diluted
basis) of the total then outstanding Capital Stock of GAG Inc. entitled to vote for the election of directors of GAG Inc., and
(ii) Capital Stock of GAG Inc. entitled to vote for the election of directors of GAG Inc. in an amount greater than the number
of shares of such Capital Stock beneficially owned by the Permitted Holders (or over which the Permitted Holders have voting control);

 

    	 	- 7 -	 

     

    

 

(c)          GAG
Inc. fails at any time to own, directly or indirectly, 100% of the Capital Stock of Great American free and clear of all Liens
(other than Permitted Encumbrances); and 

 

(d)          
(i) Great American fails to own, at any time, directly or indirectly, 100% of the Capital Stock of any Borrower free and clear
of all Liens (other than Permitted Encumbrances) and/or ceases to manage any Borrower’s business and operations; provided,
however, notwithstanding the foregoing, B. Riley shall be permitted to own up to 1,000 non-voting preferred shares of the
Capital Stock of Retail; or (ii) Great American fails to own, at any time, 100% of the Capital Stock of any Borrower entitled to
vote with respect to any matters; and.

 

(e)          Andrew
Gumaer (i) ceases to be actively engaged in the management and day-to-day operations and administration of Great American or any
Borrower, (ii) ceases to be a Continuing Director of B. Riley Financial, Inc., f/k/a Great American Group, Inc., or (iii) ceases to be a Continuing Director of Great American. 

 

“Charges”
shall mean all federal, national, state, county, city, municipal, local, foreign or other governmental Taxes (including Taxes owed
to the Pension Benefit Guaranty Corporation, or any successor thereto, (and the equivalent in any other jurisdiction of a Borrower)
at the time due and payable), levies, assessments, charges, liens, claims or encumbrances upon or relating to (a) the Collateral,
(b) the Obligations, (c) the employees, payroll, income or gross receipts of any Borrower, (d) any Borrower’s ownership or
use of any properties or other assets, or (e) any other aspect of any Borrower’s business.

 

“Closing Date”
shall mean October 21, 2008.

 

“Closing Fee”
shall have the meaning set forth in the Fee Letter.

 

“Code”
shall mean the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the Commonwealth of Massachusetts;
provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or
priority of the Lenders’ security interest in any Collateral is governed by the Uniform Commercial Code as enacted and in
effect in a jurisdiction other than the Commonwealth of Massachusetts, the term “Code” shall mean the Uniform Commercial
Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such provisions.

 

“Collateral”
shall mean all of any Borrower’s right, title, and interest in and to the property covered by the Security Agreements, the
Foreign Security Documents, and the other Collateral Documents and any other property, real or personal, tangible or intangible,
now existing or hereafter acquired, that may at any time be or become subject to a security interest or Lien in favor of the Lenders
to secure the Obligations, including all of any Borrower’s rights under and interest in all Liquidation Sales Agreements,
Liquidator Joint Venture Agreements, and amounts received by or payable to Borrower under any of the foregoing agreements.

 

“Collateral Assignments”
shall mean written instruments of assignment by a Borrower to the Applicable Lender, in form and substance satisfactory to the
Applicable Lender, of all of such Borrower’s right, title, and interest to any Liquidator Joint Venture Agreements or Liquidation
Sales Agreements.

 

“Collateral Documents”
shall mean the Security Agreements, the Foreign Security Documents, the Collateral Assignments, and any and all other agreements
entered into by a Credit Party which grants the Lenders a Lien upon property of such Credit Party as security for payment of the
Obligations.

 

    	 	- 8 -	 

     

    

 

“Collections”
shall mean, with respect to each Liquidation Sale, all cash, checks, notes, drafts or other similar items of payment relating to
or constituting payments received by or payable to a Credit Party in connection with or relating to such Liquidation Sale, including,
where applicable, payments received through credit card sales and amounts payable by the applicable Merchant to a Credit Party
with respect to returns, allowances and customer credits.

 

“Collection Account”
shall mean in connection with each Liquidation Sale funded by a Liquidation Borrowing, an account at the Applicable Lender, or
at any other financial institution satisfactory to the Applicable Lender in its sole discretion at all times in any jurisdiction
outside the United States, in the name of the Applicable Lender (when permissible under applicable Law) designated by the Applicable
Lender as the “Collection Account” for such Liquidation Sale and shall include any Master Collection Account.

 

“Continuing
Directors” shall mean (a) with respect to Great American (i) any member of the Board of Directors (or any manager
of any comparable body) of Great American who was or became a member of the Board of Directors (or a manager of any comparable
body) of Great American on the Closing Date, and (ii) any individual who becomes a member of the Board of Directors (or a manager
of a comparable body) of Great American after the Closing Date if such individual was appointed or nominated for election to the
Board of Directors by a majority of the members of Great American, who then constituted “Continuing Directors”, and
(b) with respect to GAG Inc., any member of the Board of Directors of GAG Inc. who was or became a director of GAG Inc. on August
27, 2009, or becomes a member of the Board of Directors of GAG Inc. after August 27, 2009, if such individual was appointed or
nominated for election to the Board of Directors by a majority of the members constituting “Continuing Directors”.

 

“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.

 

“Control Agreement”
shall mean an agreement, in form and substance satisfactory to the Lenders, executed and delivered by a Borrower, the Applicable
Lender, and the applicable securities intermediary, depository institution, or bank, which agreement is sufficient to give the
Lenders “control” over the subject Securities Account (as defined in the Code), DDA or Investment Property (as defined
in the Code) as provided in the Code, the PPSA (as applicable) or other Law applicable to a Borrower.

 

“Credit Party”
shall mean BorrowerU.S. Borrowers, GAG
Inc., Great American, Canadian Borrower, and/or any Subsidiary of any of the foregoing which is or which becomes a party to any
Loan Document from time to time.

 

“Credit Suisse”
shall collectively mean Credit Suisse, Cayman Islands Branch, and CS Loan Funding LLC, and their respective successors and assigns.

 

“Daily Balance”
shall mean, with respect to each day during the term of this Agreement, the amount of an Obligation owed at the end of such day.

 

“DDA”
means any checking or other demand deposit account maintained by a Borrower.

 

“Debtor Relief Laws”
shall mean (i) the Bankruptcy Code, (ii) the BIA, (iii) the CCAA, (iv) the Winding-Up and Restructuring Act (Canada), (v)
the Canada Business Corporations Act (Canada) or the Business Corporations Act (British Columbia) where such statute
is used by a Person to propose an arrangement in connection with a compromise of such Person's debt obligations and/or (vi) all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief Laws of the United States, Canada or other applicable jurisdictions from time
to time in effect and affecting the rights of creditors generally.

 

“Default”
shall mean an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of
Default.

 

“Default Rate”
shall have the meaning assigned to it in Section 2.4(h).

 

“Disbursement Account”
shall have the meaning assigned to it in Section 2.6(g).

 

“Disbursement Account
Bank” shall have the meaning assigned to it in Section 2.6(g).

 

    	 	- 9 -	 

     

    

 

“Dollars”
and “$” means the lawful currency of the United States.

 

“Dollar
Equivalent” shall mean, on any particular date, with respect to any amount denominated in Dollars, such amount in Dollars,
and with respect to any amount denominated in currency other than Dollars, the amount (as conclusively ascertained by the Applicable
Lender absent manifest error) of Dollars which could be purchased by the Applicable Lender (in accordance with its normal banking
practices) in the London foreign currency deposit market with such amount of such currency at the Exchange Rate on such date.

  

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

 

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

 

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

 

“Effective
Advance Rate” means 100% minus the percentage obtained by dividing the Backend L/C Cash Collateral by the Guaranteed
Amount.

  

“Environmental
Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial
or administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party involving
violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of a Borrower
or any predecessor in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received
Hazardous Materials generated by a Borrower or any predecessor in interest.

 

“Environmental Law”
means any applicable Law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or judgment, to the extent binding on a Borrower, relating
to the environment, employee health and safety, or Hazardous Materials, including, without limitation, CERCLA; RCRA; the Federal
Water Pollution Control Act, 33 USC § 1251 et seq. the Toxic Substances Control Act, 15 USC, § 2601 et seq.
the Clean Air Act, 42 USC § 7401 et seq.; the Safe Drinking Water Act, 42 USC, § 3803 et seq.; the Oil
Pollution Act of 1990, 33 USC. § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986,
42 USC. § 11001 et seq.; the Hazardous Material Transportation Act, 49 USC § 1801 et seq.; and the Occupational
Safety and Health Act, 29 USC. §651 et seq. (to the extent it regulates occupational exposure to Hazardous Materials);
any state, provincial, territorial and local or foreign counterparts or equivalents, in each case as amended from time to time.

 

“Environmental Liabilities
and Costs” means all liabilities, monetary obligations, Remedial Actions, losses, damages, punitive damages, consequential
damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or
consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result
of any claim or demand by any Governmental Authority or any third party, and which relate to any Environmental Action.

 

    	 	- 10 -	 

     

    

 

“Environmental Lien”
means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974 (or any successor legislation thereto), as amended from time to
time, and any regulations promulgated thereunder, and any successor statute thereto.

 

“ERISA Affiliate”
shall mean (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the employees of a Borrower
under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer
as the employees of a Borrower under IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the
IRC, any organization subject to ERISA that is a member of an affiliated service group of which a Borrower is a member under IRC
Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that
is a party to an arrangement with a Borrower and whose employees are aggregated with the employees of a Borrower under IRC Section
414(o).

 

“Equity Pledge Agreement”
shall mean that certain Second Amended and Restated Pledge and Security Agreement, between Great American and the U.S. Lender,
dated as of Restatement Date, as hereafter amended, modified, or amended and restated.

 

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

 

“Event of Default”
shall have the meaning assigned to it in Section 9.1.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as in effect from time to time.

 

“Exchange Rate”
means, with respect to any currency other than Dollars, at any date of determination thereof, the Spot Rate of exchange for the
conversion of such currency into Dollars and with respect to Dollars, at any date of determination thereof, the Spot Rate of exchange
for the conversion of Dollars into the applicable currency.

 

“Excluded
Hedging Obligations” means, with respect to any guarantor of the Obligations, any Hedging Obligation if, and to the extent
that, all or a portion of the guaranty of such guarantor of, or the grant by such guarantor of a security interest to secure, such
Hedging Obligation (or any guaranty 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 guaranty of such guarantor or the grant of such security interest becomes
effective with respect to such Hedging Obligation. If a Hedging Obligation arises under a master agreement governing more than
one swap, such exclusion shall apply only to the portion of such Hedging Obligation that is attributable to swaps for which such
guaranty or security interest is or becomes illegal.

 

    	 	- 11 -	 

     

    

 

“Existing Credit
Agreement” shall have the meaning given such term in the Recitals hereto.

 

“Expense L/C”
shall mean a letter of credit which a Liquidator is required to have issued for its account pursuant to a Liquidation Sales Agreement
to provide security solely for the payment of Expenses under such Liquidation Sales Agreement.

 

“Expenses”
shall have, with respect to each Liquidation Sale, the meaning assigned to such term or other similar terms in the relevant Liquidation
Sales Agreement for such Liquidation Sale; provided, that notwithstanding the terms of any relevant Liquidation Sales Agreement,
no amounts paid or payable to a Borrower, Great American, or any Affiliate thereto, shall constitute Expenses for purposes of this
Agreement other than reasonable out-of-pocket expenses actually incurred by such Borrower or Great American in the course of conducting
such Liquidation Sale without any mark up.

 

“Factored Receivables”
shall mean any Accounts of any Credit Party which have been factored, sold, transferred, conditionally sold or assigned by an Account
debtor of such Credit Party to the Applicable Lender or an Affiliate thereof which is party to a Bank Product Agreement with such
Credit Party pursuant to a factoring arrangement or otherwise.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.

 

“Fee Letter”
shall mean that certain Fee Letter dated as of the Restatement Date between Borrowers and the U.S. Lender.

 

“Fees”
shall mean any and all fees payable to the Lenders pursuant to this Agreement or any of the other Loan Documents, including the
Closing Fee, the Seventh Amendment Closing Fee, the Letter of Credit Fees, any Work Fees,
the Administrative Fee, and the Success Fees, if any.

 

“Fifth Amendment
Effective Date” shall mean June 10, 2016.

 

“Final Accounting”
shall mean, with respect to each Liquidation Sale, the final accounting with respect to amounts received by or payable to a Borrower
and amounts paid by a Borrower in connection with such Liquidation Sale and all other related transactions, which accounting shall
be prepared by a Borrower and approved by the Lenders.

 

“Fiscal”
means, when followed by “month” or “quarter”, the relevant fiscal period based on Great American’s
fiscal year and accounting conventions (e.g. a reference to “April Fiscal 2008” is to the fiscal month of April of
Great American’s 2008 fiscal year). When followed by reference to a specific year, the fiscal year which encompasses the
majority of months in such fiscal year (e.g. if Great American’s 2008 fiscal year ends in January 2008 reference to that
year would be to Great American’s “Fiscal 2008”).

 

“Foreign Credit
Parties” shall mean: (i) GA Asset Advisors to the extent the UK Credit Agreement is in effect, (ii) any other
borrower party or guarantor to the UK Credit Agreement (if it is then in effect), and (iii) any guarantor of any of the Obligations
formed under the laws of any jurisdiction other than the United States or Canada.

 

    	 	- 12 -	 

     

    

 

“Foreign Security
Documents” shall mean: (i) a fixed and floating debenture in favor of the Lenders over all the assets of the Persons
set forth in clauses (i) through (iii) of the definition of Foreign Credit Parties, (ii) the pledge of shares in favor of the Lenders
granted by Great American or GA Asset Advisors, as applicable, over all its respective shares in the Persons set forth in clauses
(i) through (iii) of the definition of Foreign Credit Parties and (iii) any other security over the assets of any Foreign Credit
Party or any Affiliate thereof as may reasonably be required by the Lenders, as any of the foregoing may subsequently be amended,
restated, modified, supplemented or replaced.

 

“Fourth Amendment
Effective Date” shall mean February 19, 2015.

 

“Funding Losses”
shall have the meaning given such term in Section 2.4(j) hereof.

 

“GA Asset Advisors”
means GA Asset Advisors Limited, a limited liability company organized under the laws of England and Wales.

 

“GA Asset Advisors
Guaranty” means the Guaranty of GA Asset Advisors in favor of the U.S. Lender required to be executed by GA Asset Advisors
concurrently with the execution of the UK Credit Agreement and in form and substance satisfactory to the U.S. Lender.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America, as in effect from time to time, consistently
applied. At the Lender’s discretion, GAAP may also include, with respect to any Borrower (other than Original Borrower) hereunder,
“GAAP” in the jurisdiction of formation of such other Borrower.

 

“GAG Inc.”
shall mean B. Riley Financial, Inc., a
Delaware corporation (f/k/a Great American Group, Inc., a Delaware corporation..).

 

“GAG Purchase Agreement”
shall mean that certain Agreement and Plan of Reorganization, dated as of May 14, 2009, as amended by Amendment No. 1, Amendment
No. 2, and Amendment No. 3 to the Agreement and Plan of Reorganization, each dated as of May 29, 2009, July 8, 2009 and July 28,
2009, respectively, by and among Alternative Asset Management Acquisition Corp., a Delaware corporation, GAG Inc., and AAMAC Merger
Sub, Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of GAG Inc., on the one hand, and Great American, the
holders of Capital Stock of Great American as of July 28, 2009, and the phantom equity holders of Great American, on the other
hand.

 

“General Intangibles”
shall mean all of any Borrower’s now owned or hereafter acquired right, title, and interest with respect to “general
intangibles” (as such term is defined from time to time in the Code) or “intangibles” (as such term is defined
from time to time in the PPSA), as the case may be, and any and all supporting obligations in respect thereof.

 

“Governmental Authority”
shall mean any federal, national, foreign, state, provincial, territorial, local, or other governmental or administrative body,
instrumentality, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other
similar dispute-resolving panel or body.

 

“Great American”
shall mean Great American Group, LLC, a California limited liability company.

 

“Great American
Group” shall mean a collective reference to each Credit Party, and each of their respective Subsidiaries now in existence
or hereafter formed or acquired, including, but not limited to, the entities listed on Schedule 4.8 hereto.

 

    	 	- 13 -	 

     

    

 

“Great American
Guaranty” shall mean the Third Amended and Restated Guaranty of GAG Inc. and Great American, on a joint and several basis,
in favor of the U.S. Lender dated as of the Restatement Date, and in form and substance satisfactory to the U.S. Lender.

 

“Guaranteed Amount”
shall have, with respect to each Liquidation Sale carried out pursuant to a Liquidation Sales Agreement, the meaning assigned to
such term or other similar terms in such agreement. It is expressly understood that prior to the Final Accounting, the Guaranteed
Amount shall refer to a Borrower’s good faith estimate of the Guaranteed Amount to be paid under the Liquidation Sales Agreement
and that such amount shall be adjusted upon completion of the Final Accounting and that if the actual amount required to be delivered
to the Merchant by a Borrower in respect to the Guaranteed Amount is less than the Guaranteed Amount as listed in the applicable
Liquidation Sales Agreement, such lesser amount shall constitute the Guaranteed Amount for all purposes hereunder.

 

“Guaranty Percentage”
shall have the same meaning as in the applicable Liquidation Sales Agreement.

 

“Hazardous Material”
shall mean (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations
as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,”
or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum
derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated
with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances
or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric
fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

 

“Hedge Agreement”
shall mean any and all transactions, agreements, or documents now existing or hereafter entered into between a Credit Party or
its Subsidiaries and Wells FargoWF or
its Affiliates, which provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign exchange
transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these
or similar transactions, for the purpose of hedging a Credit Party’s or any of its Subsidiaries’ exposure to fluctuations
in interest or exchange rates, loan, credit exchange, security or currency valuations or commodity prices.

 

“Hedging
Obligations” means, with respect to any Person, any and all obligations of such Person 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.

 

“Honor
Date” has the meaning set forth in Annex B.

 

“Indebtedness”
shall mean (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar
instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, interest rate swaps,
or other financial products, (c) all obligations under Capital Leases, (d) all obligations or liabilities of others secured by
a Lien on any asset of a Borrower, irrespective of whether such obligation or liability is assumed, (e) all obligations for the
deferred purchase price of assets (other than trade debt incurred in the ordinary course of business and repayable in accordance
with customary trade practices), and (f) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,
endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person.

 

    	 	- 14 -	 

     

    

 

“Initial Expense Advance”
shall have the meaning assigned to such term in Section 2.1(h).

 

“Initial
Expense Advance Borrowing Base” shall mean, in respect to any Liquidation Sale, the product of (i) the Inventory Advance
Rate or Other Assets Advance Rate applicable to such Liquidation Sale, or such lower percentage agreed to by the Applicable Lender
and Borrower, times (ii) the Initial Expenses.

 

“Initial
Expenses” shall mean, with respect to each Liquidation Sale, the upfront Expenses that are required to be paid by the Borrower
upon the closing of the applicable Liquidation Sales Agreement.

 

“Insolvency Officeholder”
means any liquidator, trustee in bankruptcy, receiver, receiver-manager, sequestrator, administrative receiver, administrator or
similar officer.

 

“Insolvency Proceeding”
means any step is taken under or in relation to, or an arrangement or proceeding is commenced by or against any Person under any
provision of any Debtor Relief Law including, without limitation, in relation to assignments for the benefit of creditors, formal
or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, compromise, arrangement,
administration, receivership, administrative receivership, winding up, dissolution, liquidation or other similar relief or proceeding
or arrangement, or an Insolvency Officeholder is appointed or threatened to be appointed in respect of any Person’s assets
or any other analogous step or procedure is taken in any jurisdiction.

 

“Interest Period”
means, with respect to each Non-Prime Rate Loan, a period commencing on the date of the making of such Non-Prime Rate Loan and
ending 1 month thereafter; provided, however, that (a) if any Interest Period would end on a day that is not a Business
Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest
shall accrue at the applicable rate based upon the Non-Prime Rate from and including the first day of each Interest Period to,
but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is not a Business
Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case
such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1 month after
the date on which the Interest Period began, as applicable, and (e) Borrowers may not elect an Interest Period which will end after
the Revolving Credit Termination Date.

 

“Inventory Advance” shall have the
meaning assigned to it in Section 2.1(fh)(i).

 

“Inventory Advance
Rate” shall mean, with respect to each Liquidation Sale in respect of Retail Inventory only, the percentage that the
Applicable Lender uses to calculate the amount of the Inventory Advance, or Letter of Credit Obligations, as the case may be, with
respect to such Liquidation Sale, based on the applicable Guaranty Percentage and Guaranteed Amount or Purchase Price Percentage
and Purchase Price, as determined pursuant to Section 2.1(fh).
In no case shall the Inventory Advance Rate for any such Liquidation Sale be (i) lower than, with respect to Liquidation Sales
(or any portion thereof) conducted in the US and Canada, seventy-seven and one half percent (77.5%) of the Guaranteed Amount or
Purchase Price, and with respect to any other jurisdiction, the rate set by the Applicable Lender in its discretion, or (ii) higher
than ninety-two and one-half percent (92.5%) of the Guaranteed Amount or Purchase Price.

 

    	 	- 15 -	 

     

    

 

“Inventory Borrowing
Base” in respect to any Liquidation Sale shall mean the product of (i) the Inventory Advance Rate applicable to such
Liquidation Sale, times, (ii) the Guaranteed Amount or Purchase Price as determined pursuant to the applicable Liquidation Sales
Agreement, minus (iii) reserves, including, without limitation, Canadian Priority Payable Reserves. For purposes of calculating
the Inventory Borrowing Base, except as may otherwise be agreed by the Applicable Lender in its sole discretion, any Retail Inventory
that is subject to retention of title claims shall not be included in the “Guaranteed Amount” or “Purchase Price”,
notwithstanding anything to the contrary in any Liquidation Sales Agreement or other agreement.

 

“Investment”
shall mean, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of
loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees
of such Person made in the ordinary course of business, and (b) bona fide accounts arising in the ordinary course of business consistent
with past practices), purchases or other acquisitions for consideration of Indebtedness or stock, and any other items that are
or would be classified as investments on a balance sheet prepared in accordance with GAAP.

 

“Issuer Documents”
means with respect to any Letter of Credit, the Notice of Letter of Credit Request, and any other document, agreement and instrument
entered into by or  between the Applicable Lender and a Borrower in favor of the Applicable Lender and relating to any such
Letter of Credit.

 

“Jones L/C”
means that certain Letter of Credit issued under this Agreement on behalf of GA Retail Canada, ULC for the benefit of 2473304 Ontario
Inc. and/or certain of its Affiliates.

 

“Laws”
shall mean, collectively, all international, foreign, federal, state, provincial, territorial and local statutes, treaties, rules,
guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation
or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof,
and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of law.

 

“L/C
Borrowing” has the meaning set forth in Annex B. 

 

“L/C
Undertaking” has the meaning set forth in Annex B. 

 

“L/C Usage”
means the U.S. L/C Usage and/or the Canadian L/C Usage, as the context so requires.

 

“Lender”
or “Lenders” means the U.S. Lender and the Canadian Lender.

 

    	 	- 16 -	 

     

    

 

“Lender Expenses”
means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by the Credit Parties under any of
the Loan Documents that are paid or incurred by the Lenders, (b) reasonable fees or charges paid or incurred by the Lenders in
connection with the Applicable Lender’s transactions with the Credit Parties, including, reasonable fees or charges for any
due diligence with respect to a proposed Liquidation Sale (including reasonable and documented attorneys’ fees), photocopying,
notarization, couriers and messengers, telecommunication, public record searches (including tax lien, litigation, UCC, PPSA, Bank
Act searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles),
filing, recording, publication, appraisal (including periodic Collateral appraisals or business valuations to the extent of the
fees and charges (and up to the amount of any limitation) contained in this Agreement), real estate surveys, real estate title
policies and endorsements, and environmental audits, (c) reasonable costs and expenses incurred by the Lenders in the disbursement
of funds to or for the account of Borrowers (by wire transfer or otherwise), (d) charges paid or incurred by the Lenders resulting
from the dishonor of checks, (e) reasonable costs and expenses paid or incurred by the Lenders to correct any default or enforce
any provision of the Loan Documents, or in gaining possession of, maintaining, handling, preserving, storing, shipping, selling,
preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated,
(f) reasonable audit fees and expenses (and other due diligence expenses) of the Lenders related to audit examinations of the Books,
(g) reasonable costs and expenses of third party claims or any other suit paid or incurred by the Lenders in enforcing or defending
the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the Lenders’ relationship
with any Credit Party, (h) the Lenders’ reasonable fees and expenses (including reasonable and documented attorneys’
fees) incurred in advising, structuring, drafting, reviewing, administering, or amending the Loan Documents, and (i) the Lenders’
reasonable fees and expenses (including reasonable and documented attorneys’ fees) incurred in terminating, enforcing (including
reasonable and documented attorneys’ fees and expenses incurred in connection with a “workout,” a “restructuring,”
or an Insolvency Proceeding concerning a Borrower or in exercising rights or remedies under the Loan Documents), or defending the
Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral.

 

“Lender’s
Account” shall mean an account of the U.S. Lender at a branch of the U.S. Lender designated by the U.S. Lender to Original
Borrower in writing from time to time.

 

“Lender’s
Offer” shall have the meaning given such term in Section 2.1(fh)(ii)
hereof.

 

"Letter of Credit"
means a U.S. Letter of Credit and/or a Canadian Letter of Credit, as the context requires.

 

“Letter
of Credit Expiration Date” has the meaning set forth in Annex B.

 

“Letter of Credit
Fee” shall have the meaning assigned to it in Annex B.

 

“Letter of Credit
Obligations” shall mean all outstanding obligations incurred by the Applicable Lender at the request of a Borrower, including,
without limitation, the L/C Usage, whether direct or indirect, contingent or otherwise, due or not due, in connection with the
issuance of a reimbursement agreement or guaranty by the Applicable Lender with respect to any Letter of Credit.

 

“Letter of Credit
Sublimit” shall mean $100200,000,000
minus the aggregate principal amount of all outstanding loans, advances or other credit extensions by Burdale pursuant to
the UK Credit Agreement (if it is then in effect).

 

“LIBOR Deadline”
has the meaning set forth in Section 2.

 

“LIBO Rate”
means, for each Interest Period for each LIBO Rate Loan, the rate per annum determined by the Applicable Lender (rounded upwards,
if necessary, to the next 1/16%) by dividing (a) the Base LIBO Rate for such Interest Period, by (b) 100% minus
the Reserve Percentage.; provided
that in no event shall the LIBO Rate be less than zero. The LIBO Rate shall be adjusted on and
as of the effective day of any change in the Reserve Percentage.

 

    	 	- 17 -	 

     

    

 

“LIBO Rate Loan”
means each portion of Revolving Credit Advance that bears interest at a rate determined by reference to the LIBO Rate.

 

“Lien”
shall mean any interest in an asset securing an obligation owed to, or a claim by, any Person whether such interest shall be based
on the common law, statute, or contract, whether such interest shall be recorded or perfected, and whether such interest shall
be contingent upon the occurrence of some future event or events or the existence of some future circumstance or circumstances,
including the lien (statutory or other) or security interest arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
assignment, deposit arrangement, security agreement, conditional sale or trust receipt, a floating charge, a fixed charge, or from
a lease, consignment, or bailment for security purposes or from a sale of accounts receivable or chattel paper, or the interest
of a lessor under a Capital Lease or other arrangement pursuant to which any Person is entitled to any preference or priority with
respect to the property or assets of another Person or the income or profits of such other Person and also including reservations,
exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and
encumbrances affecting Real Property each of the foregoing whether consensual or non-consensual and whether arising by way of agreement,
operation of law, legal process or otherwise.

 

“Liquidation
Borrowing” shall mean the Inventory Advance, Other Assets Advance, Sales Tax Advance, TotalInitial
Expense Advance, Subsequent Expense Advance or Letter of Credit Obligations with respect
to a Liquidation Sale, all other Revolving Credit Advances made with respect to such Liquidation Sale, and all accrued Fees, interest
and other Obligations payable by a Borrower with respect thereto.

 

“Liquidation
Loan Proposal” shall have the meaning assigned to it in Section 2.1(fh)(i).

 

“Liquidation Sale”
shall mean any going out of business, liquidation or store closing sale of a particular Merchant conducted by a Liquidator with
respect to (a) the Retail Inventory or (b) any sales or dispositions of Other Assets, in each case pursuant to a particular Liquidation
Sales Agreement.

 

“Liquidation Sales
Agreements” shall mean the Agency Agreement, Purchase Agreement or any other agreement required to conduct a Liquidation
Sale entered into by any Liquidator with respect to a Liquidation Sale, and any and all other agreements, instruments, documents
and certificates entered into in connection therewith.

 

“Liquidator”
shall mean a Borrower or a Liquidator JV, as the context requires.

 

“Liquidator JV”
shall mean any joint venture between a Borrower and one or more other professional Retail Inventory liquidators party to a Liquidator
Joint Venture Agreement.

 

“Liquidator Joint
Venture Agreement” shall mean a joint venture agreement, in form and substance satisfactory to the Applicable Lender,
entered into among a Borrower and one or more other professional liquidators for the sole purpose of jointly and collectively entering
into Liquidation Sales Agreements with any Merchants and conducting Liquidation Sales pursuant to such Liquidation Sales Agreements.

 

“Loan Account”
has the meaning set forth in Section 2.9.

 

    	 	- 18 -	 

     

    

 

“Loan Documents”
shall mean this Agreement, the Notes, the Collateral Documents, the Great American Guaranty, the GA Asset Advisors Guaranty, (if
it is then in effect) the Equity Pledge Agreement, the Fee Letter, the Seventh Amendment Fee Letter,
the Perfection Certificate, the Subordination Agreement, the Solvency Certificate, the Omnibus Ratification, each Borrower
Joinder (if any), and all other agreements, instruments, documents and certificates identified in the Schedule of Documents executed
and delivered to, or in favor of, the Applicable Lender and including all other pledges, powers of attorney, consents, assignments,
contracts, notices, and all other written matter whether heretofore, now or hereafter executed by any Credit Party, or any employee
of any Credit Party, and delivered to the Applicable Lender in connection with this Agreement or the transactions contemplated
hereby. Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or
schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to such Loan Document
as the same may be in effect at any and all times such reference becomes operative.

 

“Margin”
shall mean, as of any date of determination, the Margin specified in the defined term “Margin Pricing Grid” applicable
to such Revolving Credit Advance or other Obligation. The Margin shall adjust in accordance with the Margin Pricing Grid as provided
therein.

 

“Margin Pricing
Grid” shall mean,

 

(i)          for Inventory Advances
(and Sales Tax Advances, Initial Expense Advances and TotalSubsequent
Expense Advances made in connection with any Inventory Advance) in connection with
Liquidation Sales to be conducted in the United States and Canada, the applicable percentage amount set forth in
the following grid that corresponds to the applicable Inventory Advance Rate applied to such Inventory Advance:

 

	If Inventory Advance Rate is:	 	Then the Margin is:
	 	 	 
	≤ 77.5%	 	2.25%
	>77.5%, but ≤ 82.5%	 	2.75%
	> 82.5%, but ≤ 87.5%	 	3.00%
	> 87.5%, but ≤ 92.5%	 	3.25%

 

(ii)          for all Other Asset
Advances (and Sales Tax and TotalAdvances, Initial
Expense Advances and Subsequent Expense Advances made solely in connection with
any Other Asset Advance) in connection with Liquidation Sales to be conducted in the United
States and Canada, the Margin shall be no less than 3.25%.

 

(iii)        for
all Revolving Credit Advances in connection with any Liquidation Sale (or portion thereof) conducted in any jurisdiction other
than the United States or Canada, the Margin shall be as determined by the Applicable Lender in its sole discretion.

 

“Material Adverse
Effect” shall mean a material adverse effect on (a) the business, assets, operations, financial or other condition
of GAG Inc., Great American, Original Borrower, or any other Borrower (so long as such other Borrower is conducting a Liquidation
Sale or owes the Lenders any Obligations with respect to a Liquidation Sale) or all Credit Parties collectively, (b) any Borrower’s
ability, or the ability of any Liquidator JV, as applicable, to conduct any Liquidation Sale in accordance with the applicable
Liquidation Sale Agreements, (c) any Borrower’s ability to pay and perform any of the Obligations in accordance with
the terms of this Agreement or to perform its obligations under any Liquidator Joint Venture Agreement, (d) any Credit Party’s
ability to perform its material obligations under the Loan Documents to which it is a party, (e) the Collateral or the Lenders’
Liens on the Collateral or the priority of such Liens, (f) the Lenders’ ability to enforce the Obligations or realize upon
the Collateral, or (g) the Lenders’ rights and remedies under this Agreement and the other Loan Documents.

 

    	 	- 19 -	 

     

    

 

“Master Collection
Account” shall mean an account at the Applicable Lender in the name of the Applicable Lender designated as the “Master
Collection Account” into which the proceeds of all other Collection Accounts shall be deposited pursuant to Section 2.6.

 

“Maximum Lawful
Rate” shall have the meaning assigned to it in Section 2.4(i).

 

“Merchant”
shall mean a Person that, in the ordinary course of its business, sells Retail Inventory and/or owns or sells Other Assets and,
in the case of a Liquidation Sale conducted outside the US or Canada, “Merchant” shall include any Affiliate of a Merchant
or other entity which owns Retail Inventory or Other Assets.

 

“Net Profit Margin”
shall mean, with respect to each Liquidation Sale, the sum of (i) the sum of (a) the Proceeds of such Liquidation Sale, plus
(b) the cash proceeds of any unsold Retail Inventory or Other Assets retained or acquired by a Borrower at the conclusion of such
Liquidation Sale, minus (ii) the sum of (a) the Guaranteed Amount or Purchase Price with respect to such Liquidation Sale,
plus (b) the Recovery Amount, if any, with respect to such Liquidation Sale, plus (c) actual Expenses incurred by
a Borrower with respect to such Liquidation Sale (including any reimbursement obligations, expenses, fees and commissions payable
in connection with an Expense L/C or any Letter of Credit provided in respect to unpaid portions of the Guaranteed Amount or Purchase
Price), (d) (without duplication of any amounts counted in clause “c”) interest or Letter of Credit Fees paid to the
Lenders with respect to the Liquidation Borrowings for such Liquidation Sale, each as set forth in the Final Accounting, provided,
however, that, for purposes of calculating the Net Profit Margin, Expenses that a Borrower pays to itself or an Affiliate (such
as compensation of supervisory personnel) shall be calculated based on actual amounts paid without a mark-up for profit by itself
or such Affiliate.

 

“Non-Extension
Notice Date” has the meaning set forth in Annex B.

 

“Non-Prime Rate”
means (a) with respect to Revolving Credit Advances in Dollars, LIBO Rate, and (b) with respect to Revolving Credit Advances in
CAD, BA Equivalent Rate.

 

"Non-Prime Rate Loan"
means (a) with respect to Revolving Loans denominated in Dollars, LIBO Rate Loans, and (b) with respect to Revolving Loans denominated
in CAD, BA Rate Loans.

 

“Notes” shall have the meaning assigned
to it in Section 2.1(ik).

 

“Notice of Letter
of Credit Request” shall have the meaning assigned to it in Section 2.1(eg).

 

“Notice of Revolving
Credit Advance” shall have the meaning assigned to it in
Section 2.1(eg).

 

    	 	- 20 -	 

     

    

 

“Obligations”
shall mean (a) all Revolving Credit Advances, debts, principal, interest (including any interest that, but for the
provisions of any Debtor Relief Law, would have accrued), contingent reimbursement obligations with respect to outstanding
Letters of Credit, Bank Product Obligations, premiums, liabilities (including all amounts charged to Borrower’s Loan
Account pursuant hereto), obligations, fees (including, without limitation, the Work Fees, the Success Fees, and any Letter
of Credit Fees), charges, costs, and Lender Expenses (including in respect of any fees or expenses that, but for the
provisions of the Debtor Relief Law, would have accrued), lease payments, guaranties, covenants, indemnification obligations
arising pursuant to the Loan Documents (including, without limitation, under Section 2.11) and duties of any kind and
description owing by any Credit Party to the Applicable Lender pursuant to or evidenced by the Loan Documents to which such
Credit Party is a party and irrespective of whether for the payment of money, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all
Lender Expenses that any Credit Party is required to pay or reimburse by the Loan Documents to which such Credit Party is a
party, by Law, or otherwise, and (b) all Bank Product Obligations.;
provided that the Obligations shall not include any Excluded Hedging Obligations. Any
reference in this Agreement or in the Loan Documents to the Obligations shall include all amendments, changes, extensions,
modifications, renewals replacements, substitutions, and supplements, thereto and thereof, as applicable, both prior and
subsequent to any Insolvency Proceeding.

 

“OFAC”
shall mean The Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“Omnibus Ratification”
shall mean the Omnibus Ratification of Loan Documents executed by Original Borrower in favor of the U.S. Lender dated as of the
Restatement Date.

 

“Organizational
Documents” shall mean (a) for any corporation, the certificate and/or articles of incorporation, amalgamation or continuance,
the bylaws, the memorandum of association, any certificate of designation or other instrument relating to the rights of preferred
shareholders or stockholders of such corporation, any shareholder rights agreement and all applicable resolutions of the Board
of Directors (or any committee thereof) of such corporation, (b) for any partnership, the partnership agreement and, if applicable,
the certificate of limited partnership, (c) for any limited liability company, the operating agreement and articles or bylaws or
certificate of formation or organization or incorporation, as applicable, and (d) any shareholder’s agreement or declaration
relating to such Person. “Organizational Documents” shall also include, in all cases, all shareholder agreements, voting
trusts, and similar arrangements applicable to any Person’s Capital Stock.

 

“Original Borrower”
has the meaning given such term in the Preamble hereto.

 

“Other Assets”
shall mean any real property, personal property or other property of any Merchant or Affiliate thereof, other than Retail Inventory,
owned, leased, or licensed by such Merchant or such Affiliate in the ordinary course of its business, including, without limitation,
such Merchant’s or such Affiliate’s interest in real property leases, fixtures and equipment (including, without limitation,
Fixtures and Equipment, as such terms are defined in the Code).

 

“Other Assets Advance” shall have
the meaning assigned to it in Section 2.1(fh)(i).

 

“Other Assets
Advance Rate” shall mean, with respect to each Liquidation Sale in respect of Other Assets only, the percentage that
the Applicable Lender uses to calculate the amount of the Other Assets Advance or Letter of Credit Obligations, as the case may
be, with respect to such Liquidation Sale, as determined pursuant to Section 2.1(fh).
In no case shall the Other Assets Advance Rate for any such Liquidation Sale be higher than eighty-five percent (85.0%).

 

    	 	- 21 -	 

     

    

 

“Other Assets Borrowing
Base” shall mean, in respect to each Liquidation Sale, the product of (i) the Other Assets Advance Rate, times (ii) the
consideration which Borrower has agreed to pay for such Other Assets pursuant to the applicable Liquidation Sales Agreement. For
purposes of calculating the Other Assets Borrowing Base, except as may otherwise be agreed by the Applicable Lender in its sole
discretion, any Other Assets that are subject to retention of title claims shall not be included in the value of the consideration
referred to in clause (ii) of the preceding sentence notwithstanding anything to the contrary in any Liquidation Sales Agreement
or other agreement.

 

“Overbid”
has the meaning given such term in Section 2.1(h) hereof.

 

“Parent Working
Capital Facility” shall mean a committed secured credit facility made available by a bank or other financial institution
to Great American and/or any Affiliate or Subsidiary thereof (other than a Borrower), as borrower, for general working capital
purposes and/or any other purpose not specifically prohibited by this Agreement.

 

“Perfection Certificate”
means each perfection certificate submitted by a Borrower to the Lenders with respect to such Borrower, together with such Borrower’s
completed responses to the inquiries set forth therein, the form and substance of such responses to be satisfactory to the Lenders.

 

“Permitted Encumbrances”
shall have the meaning assigned to it in Section 7.8.

 

“Permitted Holders”
shall mean Harvey Yellen, Andrew Gumaer and Bryant Riley; provided, however, that, from and after the Fourth Amendment Effective
Date, the term ‘Permitted Holders’ shall no longer include Harvey Yellen.

 

“Person”
shall mean any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, unlimited liability
companies, association, corporation, institution, public benefit corporation, entity or Governmental Authority.

 

"PPSA" shall
mean the Personal Property Security Act (Ontario), the Civil Code of Quebec as in effect in the Province of Quebec or any
other Canadian federal, territorial or provincial statute pertaining to the granting, perfecting, priority or ranking of security
interests, liens, hypothecs on personal property, and any successor statutes, together with any regulations thereunder, in each
case as in effect from time to time. References to sections of the PPSA shall be construed to also refer to any successor sections.

 

“Proceeds”
shall have, with respect to any Liquidation Sale, the meaning assigned to such term or other similar terms in the relevant Liquidation
Sales Agreement with respect to such Liquidation Sale and shall also include all proceeds of Inventory, Other Assets and augmented
goods paid or due to Borrower or Merchant, and in the case of a joint venture, all amounts paid or due to a Borrower as part of
a Liquidator JV.

 

“Purchase Agreement”
shall mean a Purchase Agreement or other agreement entered into by a Borrower (or Liquidator JV) in form and substance acceptable
to the Applicable Lender, pursuant to which a Borrower (or such Liquidator JV) is given the right to purchase Retail Inventory
or Other Assets and to conduct Liquidation Sales with respect to such Retail Inventory or Other Assets.

 

“Purchase Price”
shall have, with respect to each Liquidation Sale carried out pursuant to Liquidation Sales Agreements, the meaning assigned to
such term or other similar terms in such agreements. It is expressly understood that prior to the Final Accounting, the Purchase
Price shall refer to a Borrower’s good faith estimate of the Purchase Price to be paid under the Liquidation Sales Agreement
and that such amount shall be adjusted upon completion of the Final Accounting and that if the actual amount required to be delivered
by a Borrower in respect to the Purchase Price is less than the Purchase Price listed in the applicable Liquidation Sales Agreement,
such lesser amount shall constitute the Purchase Price for all purposes hereunder.

 

    	 	- 22 -	 

     

    

 

“Purchase Price
Percentage” shall have the same meaning as in the applicable Liquidation Sales Agreement.

 

“Qualified
ECP Guarantor” means, in respect of any Hedging Obligation, each Credit 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 Hedging 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.

 

“Record”
shall mean information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form.

 

“Recovery Amount”
shall have, with respect to each Liquidation Sale providing for a contingent additional, non-guaranteed payment to the applicable
Merchant or, in the case of any Liquidation Sales outside the US and Canada, an Affiliate of the Merchant, based upon the total
amount of the Proceeds of such Liquidation Sale, the meaning assigned to such term or other similar terms in the Liquidation Sales
Agreements for such Liquidation Sale.

 

“Release”
shall mean any release, threatened release, spill, emission, leaking, pumping, pouring, emitting, emptying, escape, injection,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of Hazardous Material in the indoor or outdoor environment,
including the movement of Hazardous Material through or in the air, soil, surface water, ground water or property.

 

“Relevant Jurisdiction”
means, in relation to a Borrower, GAG Inc. or Great American:

 

		(a)	its jurisdiction of incorporation;

 

		(b)	any jurisdiction where any asset subject to or intended
to be subject to the Collateral Documents entered into by it is situated;

 

		(c)	any jurisdiction where it conducts its business; and

 

		(d)	the jurisdiction whose laws govern the perfection of any
Lien granted by the Collateral Documents entered into by it.

 

“Remedial Action”
means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous
Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials
so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) perform
any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (d) conduct any other actions
authorized by 42 USC § 9601.

 

    	 	- 23 -	 

     

    

 

“Reserve Percentage”
means, on any day, for the Applicable Lender, the maximum percentage prescribed by the Board of Governors of the Federal Reserve
System (or any successor Governmental Authority) for determining the reserve requirements (including any basic, supplemental, marginal,
or emergency reserves) that are in effect on such date with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities”) of the Applicable Lender, but so long as the Applicable Lender is not required or directed under applicable
regulations to maintain such reserves, the Reserve Percentage shall be zero.

 

“Restatement Date”
shall mean the Business Day on which the conditions precedent set forth in Section 3.1 have been satisfied, in the U.S.
Lender’s sole discretion, or waived in writing by the U.S. Lender.

 

“Restricted Payment”
means (i) any cash dividend or other cash distribution or payment, direct or indirect, on or on account of any Capital Stock of
a Borrower now or hereafter outstanding; (ii) any dividend or other distribution in respect of, or redemption, purchase or other
acquisition, direct or indirect, of any Capital Stock of a Borrower now or hereafter outstanding or of any warrants, options or
rights to purchase any such Capital Stock (including, without limitation, the repurchase of any such stock or membership interest,
warrant, option or right or any refund of the purchase price thereof in connection with the exercise by the holder thereof of any
right of rescission or similar remedies with respect thereto); (iii) any direct salary, non-salary managerial fees, fee (consulting,
management or other), fringe benefit, allowance or other expense directly or indirectly paid or payable by a Borrower (as compensation
or otherwise) to any shareholder, member, manager, or Affiliate of a Borrower (other than to an employee or consultant to
a Borrower and to the extent of such employee’s or consultant’s compensation; provided that the terms of such
compensation are approved by a Borrower’s Board of Directors or comparable body); and (iv) meeting fees, travel and
expense reimbursement and clothing allowance payable to the managers of a Borrower or any partner, shareholder or Affiliate thereof.

 

“Restricted Subsidiary”
means, as to any Borrower, any direct or indirect Subsidiary of such Borrower and, as to Great American and GAG Inc., any Borrower
and any other direct or indirect Subsidiary party to or otherwise receiving any Collections or other Proceeds of any Liquidation
Sale.

 

“Retail” means
GA Retail, Inc., a California corporation.”

 

“Retail Inventory”
shall mean goods that are held by a Merchant or, in the case of a Liquidation Sale outside the US and Canada, an Affiliate of the
Merchant for sale in the ordinary course of its business and that are suitable for sale at retail.

 

“Revolving Credit
Advance” means a U.S. Revolving Credit Advance and/or Canadian Revolving Credit Advance, as the context so requires.

 

“Revolving Credit
Termination Date” shall mean the earliest of (i) July 15, 2018April
21, 2022, and (ii) the date of termination pursuant to
Section 9.2 of the Lenders’ agreement to consider, in its
sole discretion and with no obligation, to make additional Revolving Credit Advances and/or incur Letter of Credit
Obligations or permit existing Revolving Credit Advances to remain outstanding.

 

“Revolving Loan”
shall mean, at any time, the sum of (i) the aggregate amount of Revolving Credit Advances outstanding at such time plus (ii) the
aggregate Letter of Credit Obligations incurred on behalf of any Borrower outstanding at such time.

 

“Revolving Loan
Ceiling” shall mean the amount equal to OneTwo
Hundred Million Dollars ($100200,000,000)
minus the aggregate principal amount of all outstanding loans, advances or other credit extensions by Burdale pursuant to
the UK Credit Agreement (if it is then in effect).

 

    	 	- 24 -	 

     

    

 

“Sales Tax Advance”
shall have the meaning given such term in Section 2.1(gi)
hereof.

 

“Sales Tax Receipts”
shall mean the portion of Collections received in the Blocked Accounts on account of sales, VAT, excise and gross receipts Taxes
payable to any taxing authorities having jurisdiction.

 

“Sanctioned
Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization
directly or indirectly controlled by a country or its government, or (d) a Person resident in or determined to be resident in a
country, in each case, of clauses (a) through (d) that is a target of Sanctions, including a target of any country sanctions program
administered and enforced by OFAC.

 

“Sanctioned
Person” means, at any time (a) any Person named on the list of Specially Designated Nationals and Blocked Persons maintained
by OFAC, OFAC’s consolidated Non-SDN list or any other Sanctions-related list maintained by any Governmental Authority, (b)
a Person or legal entity that is a target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Entity,
or (d) any Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such
Person or Persons described in clauses (a) through (c) above.

 

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

 

“Schedule of Documents”
shall mean the schedule, including all appendices, exhibits or schedules thereto, listing certain documents and information to
be delivered in connection with the Loan Documents and the transactions contemplated thereunder, substantially in the form of Annex
A to this Agreement.

 

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

 

“Security Agreements”
shall mean, collectively, (a) the Security Agreement, dated as of the Closing Date, between Original Borrower and the Lenders,
as ratified and affirmed by the Omnibus Ratification and as it may subsequently be amended, restated, modified, supplemented, or
replaced, and (b) the Canadian Security Agreement.

 

“Seventh
Amendment Closing Fee” shall have the meaning set forth in the Seventh Amendment Fee Letter.

 

“Seventh Amendment Effective Date”
means April 21, 2017.

 

“Seventh
Amendment Fee Letter” shall mean that certain Fee Letter dated as of the Seventh Amendment Effective Date between Borrowers
and the Lenders.

 

“Sixth Amendment
Effective Date” means October 5, 2016.

 

    	 	- 25 -	 

     

    

 

“Solvency Certificate”
means a certificate signed by an Authorized Person of Borrowers and Great American, dated as of the Closing Date, demonstrating
the Solvency of Borrowers and Great American.

 

“Solvent”
shall mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person
is greater than the total amount of liabilities, including contingent liabilities, of such Person; (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person
on its debts as they become absolute and matured; (c) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature and is able to pay its debts
as they become due; (d) such Person is not engaged in a business or transaction, and is not about to engage in a business or transaction,
for which such Person’s property would constitute an unreasonably small capital; (e) no Insolvency Proceeding has occurred;
(f) no unsatisfied writ of execution is outstanding; and (g) such Person is not an "insolvent person" within the meaning
given such term under the BIA. The amount of contingent liabilities (such as litigation, guarantees and pension plan liabilities)
at any time shall be computed as the amount which, in light of all the facts and circumstances existing at the time, represents
the amount which can be reasonably be expected to become an actual or matured liability.

 

“Spot Rate”
means, for a currency, the rate quoted by the Applicable Lender as the spot rate for the purchase by the Applicable Lender of such
currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two
Business Days prior to the date as of which the foreign exchange computation is made; provided that the Applicable Lender may obtain
such spot rate from another financial institution designated by the Applicable Lender if the Applicable Lender does not have as
of the date of determination a spot buying rate for any such currency.

 

“Subordination Agreement”
means a subordination agreement between the U.S. Lender and Burdale, in form and substance satisfactory to the U.S. Lender, the
execution and delivery of which shall be a condition concurrent to the effectiveness of the UK Credit Agreement.

 

“Subsequent
Expense Advance” shall have the meaning assigned to such term in Section 2.1(j).

 

“Subsidiary”
shall mean, with respect to any Person, (a) any corporation of which an aggregate of more than fifty percent (50%) of the outstanding
Capital Stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether,
at the time, Capital Stock of any other class or classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time, directly or indirectly, owned legally or beneficially by such Person and/or one
or more Subsidiaries of such Person, or with respect to which any such Person has the right to vote or designate the vote of fifty
percent (50%) or more of such Capital Stock whether by proxy, agreement, operation of Law or otherwise, and (b) any partnership
or limited liability company in which such Person and/or one or more Subsidiaries of such Person shall have an interest (whether
in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%) or of which any such
Person is a general partner or may exercise the powers of a general partner.

 

“Success Fee”
shall mean, with respect to each Liquidation Sale, an amount equal to the product of (i) the Net Profit Margin for such Liquidation
Sale, multiplied by (ii) the Success Fee Percentage for such Liquidation Sale.

 

    	 	- 26 -	 

     

    

 

“Success Fee
Percentage” shall mean: (i) with respect to each Liquidation Sale (or portion thereof) of Retail Inventory conducted
in the United States and Canada, the percentage determined by the applicable Inventory Advance Rate for any Liquidation Borrowing
made in connection with such Liquidation Sale in accordance with the column titled “Success Fee Percentage” in the
grid below; (ii) with respect to each Liquidation Sale (or portion thereof) of Other Assets conducted in the United States and
Canada, no less than twentyseventeen and one half
percent (2017.5%); (iii) with respect
to each Liquidation Sale (or portion thereof) in connection with which a Backend L/C has been issued, the percentage determined
by the applicable Effective Advance Rate for any Liquidation Borrowing made in connection with such Liquidation Sale in accordance
with the column titled “Success Fee Percentage” in the grid below; and (iv) with respect to any other Liquidation Sale
in any other jurisdiction, the percentage determined by the Lenders in their discretion.

 

	Inventory Advance

Rate/Effective Advance Rate	 	Success Fee Percentage
	 	 	 
	0%	 	0%
	Greater than 0, but ≤ 77.5%	 	5.02.50%
	>77.5%, but ≤ 82.5%	 	10.07.50%
	> 82.5%, but ≤ 87.5%	 	15.012.50%
	> 87.5%	 	20.017.50%

 

“Target L/C”
means that certain Letter of Credit issued under this Agreement on behalf of GA Retail Canada, ULC for the benefit of Target Canada
Co. and/or certain of its Affiliates.

 

“Taxes”
shall mean taxes, duties, fees, premiums, assessments, levies, tariffs and any other charges whatsoever imposed, assessed, reassessed
or collected by any Governmental Authority, including all fines, penalties, interest, additions to tax, installments on account
of taxes, or other additional amounts imposed, assessed or collected by any Governmental Authority in respect thereof, excluding
taxes imposed on or measured by the net income of the Applicable Lender by the jurisdictions under the laws of which the Applicable
Lender is organized or any political subdivision thereof.

 

“Tax Credit”
means a credit against, relief or remission for, or repayment of, any Tax.

 

“Tax Payment”
means either the increase in a payment made by a Borrower to the Applicable Lender under Section 2.13(a) or a payment under Section 2.13(d).

 

“Tax Returns”
shall mean all returns, elections, filings, forms, and any other documents (whether in electronic, tangible, or any other form
whatsoever) made, prepared or filed, or to be made, prepared or filed in respect of Taxes under applicable law.

 

“Termination
Date” shall mean the date on which all Revolving Loans have been indefeasibly repaid in full and all other Obligations
under this Agreement and the other Loan Documents have been completely discharged, and all Letter of Credit Obligations have been
cash collateralized, cancelled or backed by stand-by letters of credit in accordance with Annex B, and Borrower shall not
have any further right to request to borrow any monies under this Agreement.

 

“Third
Amendment Effective Date” shall mean February 5, 2015.

 

“Total Expense Advance”
shall have the meaning assigned to such term in Section 2.1(j).

 

“UK Credit Agreement”
means a credit agreement or similar agreement between GA Asset Advisors and Burdale in form and substance satisfactory to the U.S.
Lender.

 

    	 	- 27 -	 

     

    

 

“Underlying Issuer”
shall mean a Person (other than a Lender or a Borrower) which is the beneficiary of an L/C Undertaking and which has issued a letter
of credit at the request of the Applicable Lender for the benefit of a Borrower.

 

“Underlying Letter
of Credit” means a letter of credit that has been issued by an Underlying Issuer.

 

“Unreimbursed
Amount” has the meaning set forth in Annex B.

 

“Unfunded Pension
Liability” shall mean, at any time, the aggregate amount, if any, of the sum of (a) the amount by which the present value
of all accrued benefits under each Title IV Plan exceeds the fair market value of all assets of such Title IV Plan allocable to
such benefits in accordance with Title IV of ERISA, all determined as of the most recent valuation date for each such Title IV
Plan using the actuarial assumptions for funding purposes in effect under such Title IV Plan, and (b) for a period of five (5)
years following a transaction which might reasonably be expected to be covered by Section 4069 of ERISA, the liabilities (whether
or not accrued) that could be avoided by any ERISA Affiliate of a Borrower as a result of such transaction.

 

“United States”
or “US” shall mean the United States of America.

 

“U.S. Base Rate”
shall mean, for any day, a rate per annum (rounded upward, if necessary, to the next 1/100 of 1%) equal to the greatest of (a)
the Prime Rate in effect on such day, (b) the LIBO Rate for a one month Interest Period as in effect on such day plus 1.00%
and (c) the Federal Funds Effective Rate in effect on such day plus 0.50%. The “Prime Rate” is a rate
set by the Applicable Lender based upon various factors including the Applicable Lender’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above,
or below such announced rate. Any change in such rate announced by the Applicable Lender shall take effect at the opening of business
on the day specified in the public announcement of such change. “Federal Funds Effective Rate” for any day,
is the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average of the quotations for the day for such transactions received
by the Applicable Lender from three federal funds brokers of recognized standing selected by it. If the Applicable Lender shall
have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds
Effective Rate for any reason, including the inability or failure of the Applicable Lender to obtain sufficient quotations in accordance
with the terms of the definition thereof, the U.S. Base Rate shall be determined without regard to clause (c) of the first
sentence of this paragraph until the circumstances giving rise to such inability no longer exist. Any change in the U.S. Base Rate
due to a change in the Prime Rate, the LIBO Rate or the Federal Funds Effective Rate shall be effective on the effective date of
such change in the Prime Rate, LIBO Rate or the Federal Funds Effective Rate, respectively.

 

“U.S. Borrower”
shall mean a Borrower other than the Canadian Borrower.

 

“U.S. Lender”
means WF.

 

“U.S. Letters of
Credit” shall mean commercial or standby letters of credit issued for the account of a U.S. Borrower in Dollars by the
Applicable Lender or Underlying Issuer for which the U.S. Lender has incurred Letter of Credit Obligations.

 

    	 	- 28 -	 

     

    

 

“U.S. L/C Usage”
means, as of any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit issued by the Applicable
Lender plus 100% of the amount of outstanding time drafts accepted by an Underlying Issuer as a result of drawings under
Underlying Letters of Credit.

 

“U.S. Revolving
Credit Advance” shall have the meaning assigned to it in Section 2.1(a).

 

“WF” means
Wells Fargo Bank, National Association, successor by merger to Wells Fargo Retail Finance, LLC.

 

"WFCFCC"
means Wells Fargo Capital Finance Corporation Canada.

 

“Work Fee”
shall mean a fee in the amount of $25,000 payable to the Applicable Lender pursuant to, and upon occurrence of the events described
in, Section 2.5(d).

 

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

 

1.2          Certain
Matters of Construction.

 

(a)          All
accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial
statements” shall include the notes and schedules thereto.

 

(b)          All
other undefined terms contained in any of the Loan Documents shall, unless the context indicates otherwise, have the meanings provided
for by the Code or the PPSA, as the context so required, to the extent the same are used or defined therein. Unless otherwise specified,
reference in this Agreement or any of the Appendices to a Section, subsection or clause refer to such Section, subsection or clause
as contained in this Agreement. The words “herein,” “hereof’ and “hereunder” and other words
of similar import refer to this Agreement as a whole, including all Annexes, Exhibits and Schedules, as the same may from time
to time be amended, restated, modified or supplemented, and not to any particular section, subsection or clause contained in this
Agreement or any such Annex, Exhibit or Schedule. All of the Annexes, Schedules and Exhibits attached to this Agreement shall be
deemed incorporated herein by reference. Notwithstanding the foregoing, and unless the context so requires, (i) any term defined
in this Agreement by reference to the "Code" or the "Uniform Commercial Code" shall, to the extent defined
therein, also have any extended, alternative or analogous meaning given to such term in the PPSA, other applicable Canadian personal
property security and other laws (including the Personal Property Security Act of each applicable province of Canada, the
Bills of Exchange Act (Canada) and the Depository Bills and Notes Act (Canada)) in all cases for the extension, preservation
or betterment of the security and rights of the Collateral, (ii) all references in this Agreement to "Article 8" shall
be deemed to refer also to applicable Canadian securities transfer laws (including the Securities Transfer Act of each applicable
province of Canada), (iii) all references in this Agreement to applicable U.S. security transfer laws (including the Exchange Act)
shall refer also to applicable Canadian securities transfer laws (including, the Securities Transfer Act of each applicable province
of Canada (the "STA")), and (iv) all references in this Agreement to a financing statement, continuation statement,
amendment or termination statement shall be deemed to refer also to the analogous documents used under applicable United States
personal property security laws.

 

    	 	- 29 -	 

     

    

 

(c)          Wherever
from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural,
and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine and neuter genders. The words
“including”, “includes” and “include” shall be deemed to be followed by the words “without
limitation”. References to Persons shall include their respective successors and assigns (to the extent and only to the extent
permitted by the Loan Documents) or, in the case of governmental Persons, Persons succeeding to the relevant functions of such
Persons; and all references to statutes and related regulations shall include any amendments of the same and any successor statutes
and regulations. Whenever any provision in any Loan Document refers to the knowledge (or an analogous phrase) of a Borrower, such
words are intended to signify that the officers of such Borrower have actual knowledge or awareness of a particular fact or circumstance
or that such officers of such Borrower, if they had exercised reasonable diligence, would have known or been aware of such fact
or circumstance. Any reference in this Agreement or in the other Loan Documents to any agreement, instrument, or document shall
include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements set forth herein). Any requirement of a writing contained herein
or in the other Loan Documents shall be satisfied by the transmission of a Record and any Record transmitted shall constitute a
representation and warranty as to the accuracy and completeness of the information contained therein.

 

(d)          Quebec
Interpretation. For purposes of any Collateral located in the Province of Quebec or charged by any deed of hypothec (or any
other Loan Document) and for all other purposes pursuant to which the interpretation or construction of a Loan Document may be
subject to the laws of the Province of Quebec or a court or tribunal exercising jurisdiction in the Province of Québec,
(q) “personal property” shall be deemed to include “movable property”, (r) “real property”
shall be deemed to include “immovable property”, (s) “tangible property” shall be deemed to include “corporeal
property”, (t) “intangible property” shall be deemed to include “incorporeal property”, (u) “security
interest” and “mortgage” shall be deemed to include a “hypothec”, (v) all references to filing, registering
or recording under the Code or the PPSA shall be deemed to include publication under the Civil Code of Québec, (w) all references
to “perfection” of or “perfected” Liens shall be deemed to include a reference to the “opposability”
of such Liens to third parties, (x) any “right of offset”, “right of setoff” or similar expression shall
be deemed to include a “right of compensation”, (y) “goods” shall be deemed to include “corporeal
movable property” other than chattel paper, documents of title, instruments, money and securities, and (z) an “agent”
shall be deemed to include a “mandatary”.

 

2.          AMOUNT
AND TERMS OF CREDIT

 

2.1         Advances
and Letters of Credit.

 

(a)          Subject to
the terms and conditions hereof, U.S. Lender may, in its sole discretion and with no obligation to do so, from time to time, at
U.S. Lender’s option, until the Revolving Credit Termination Date, (i) make available to the U.S. Borrowers advances in Dollars
(each, a “U.S. Revolving Credit Advance”) to or for the benefit of a U.S. Borrower as provided for in this Section
2.1, and (ii) incur Letter of Credit Obligations in Dollars (except as otherwise agreed by the U.S. Lender or Issuing
Bank) in respect of a U.S. Borrower, or, at the request of a U.S. Borrower, in respect of any other Credit Party or Subsidiary
of a Credit Party, as provided for in Annex B and this Section 2.1.

 

    	 	- 30 -	 

     

    

 

(b)          Subject
to the terms and conditions hereof, Canadian Lender may, in its sole discretion and with no obligation to do so, from time to time,
at Canadian Lender’s option, until the Revolving Credit Termination Date, (i) make available to the Canadian Borrower
advances in Dollars or CAD (each, a “Canadian Revolving Credit Advance”) to or for the benefit of the Canadian
Borrower as provided for in this Section 2.1, and (ii) (B) incur Letter of Credit Obligations in Dollars or CAD (except
as otherwise agreed by Canadian Lender or Canadian Issuing Bank) in respect of the Canadian Borrower, or, at the request of the
Canadian Borrower, in respect of any other Credit Party or Subsidiary of a Credit Party, as provided for in Annex B and this Section
2.1.

 

(c)          The
Applicable Lender will disburse Revolving Credit Advances to each Borrower by depositing the amount of each such Revolving Credit
Advance to the applicable Borrower’s Disbursement Account pursuant to Section 2.10 hereof. The aggregate amount outstanding
of Revolving Credit Advances and Letter of Credit Obligations shall not exceed at any one time the Revolving Loan Ceiling.

 

(d)          Revolving
Credit Advances (other than Initial Expense Advances) and Letters of Credit (other than Backend
L/Cs) issued with respect to any Liquidation Sale of Inventory shall not exceed the applicable Inventory Borrowing Base. Revolving
Credit Advances (other than Initial Expense Advances) and
Letters of Credit (other than Backend L/Cs) issued with respect to any Liquidation Sales of Other Assets shall not exceed the applicable
Other Assets Borrowing Base. Initial Expense Advances issued
with respect to any Liquidation Sales shall not exceed the applicable Initial Expense Advance Borrowing Base.

 

(e)          Until
the Revolving Credit Termination Date, a Borrower may from time to time request to borrow, repay and request to reborrow under
this Section 2.1.

 

(f)          All
amounts borrowed pursuant to this Section, together with all other Obligations, shall be due and payable (or in the case of any
Letters of Credit, shall terminate) on the earlier of the maturity date therefor pursuant to Section 2.3 or the Revolving Credit
Termination Date; provided, however, that the Applicable Lender or any of its Affiliates may determine, in their sole and
absolute discretion and with no obligation so to do, to extend the termination or maturity date for any Bank Product Obligations
beyond the Revolving Credit Termination Date subject to Borrowers’ (or their Affiliate’s, as the case may be) satisfaction
of any conditions therefor required by the Applicable Lender or its Affiliate.

 

(g) A Borrower’s
request for Revolving Credit Advances or Letters of Credit shall be made by irrevocable written notice by an Authorized Person
of such Borrower to the representative of the Applicable Lender identified on Schedule 2.1 at the address specified thereon.
Those notices without limiting the applicable Borrower’s agreement to deliver a Liquidation Loan Proposal pursuant to Section
2.1(fh), must be actually
received by the Applicable Lender no later than (1) 1:00 p.m. (Boston, Massachusetts time) three
(3two (2) Business Days prior to the proposed date of any Inventory Advance
or, Other Asset AdvancesAdvance,
and/or Initial Expense Advance; (2) 1:00 p.m. (Boston, Massachusetts time) on the Business Day on which a proposed
Sales Tax Advance or TotalSubsequent
Expense Advance is requested; and (3) with respect to Letter of Credit Obligations, 1:00 p.m. (Boston, Massachusetts
time) on the date which is at least two (2) Business Days prior to the proposed issuance date and subject to the terms and conditions
governing Letters of Credit forth in Annex B attached hereto. Each such notice (a “Notice of Revolving
Credit Advance” or “Notice of Letter of Credit Request,” as the case may be) must be given
in writing (by telecopy or overnight courier). Any Notice of Revolving Credit Advance or Notice of Letter of Credit Request
must be substantially in the form of Exhibit 2.1-1 or Exhibit 2.1-2, as applicable, and shall include the information
required in such Exhibit and such other information as may be required by the Applicable Lender. Any Notice of Letter of
Credit Request must include the information described in Annex B and such other information as may be required by the Applicable
Lender. In addition, a Notice of Letter of Credit Request shall be accompanied by the form of the Letter of Credit (which shall
be acceptable to the Applicable Lender) to be guaranteed. Notwithstanding anything contained herein to the contrary, Letter of
Credit applications by a Borrower and approvals by the Applicable Lender may be made and transmitted pursuant to electronic codes
and security measures mutually agreed upon and established by and between Borrowers and the Applicable Lender.

 

    	 	- 31 -	 

     

    

 

(h)          Inventory
Advances, Other Assets Advances, Initial Expense Advances and Letters of
Credit. 

 

(i)          Subject
to Section 6.15, if a Borrower proposes to enter into Liquidation Sales Agreements with respect to any proposed Liquidation
Sale, such Borrower may propose (or shall propose if required to do so under Section 6.15) that the Applicable Lender agree
to make a Revolving Credit Advance to such Borrower or incur Letter of Credit Obligations for such Borrower’s account with
respect to the Retail Inventory (Revolving Credit Advances made with respect to Retail Inventory (in whole or in part) are referred
to as “Inventory Advances”) or Other Assets (Revolving Credit Advances made solely with respect to Other Assets
are referred to herein as “Other Assets Advances”) that are proposed to be sold through such Liquidation Sale.,
and, if applicable, the Initial Expenses (Revolving Credit Advances made solely with respect to Initial Expenses are referred
to herein as “Initial Expense Advances”). Each such proposal (a “Liquidation Loan Proposal”)
shall (A) be signed by an Authorized Person, (B) be substantially in the form of Exhibit 2.1(a)(i) attached hereto and
accompanied by all of the documents and information described on Schedule 2.1(a)(i), together with copies of any court
orders for any Merchant party to an Insolvency Proceeding, (C) involve a proposed Inventory Advance, Other Asset Advance, Initial
Expense Advance and/or Letter of Credit in a minimum amount reasonably determined by such Borrower and agreed to by
the Applicable Lender in its sole discretion, and (D) be sent so that it is actually received by the Applicable Lender no later
than 1:00 p.m. (Boston, Massachusetts time) on the fifth (5th) Business Day prior to the date of the proposed Inventory Advance,
Other Assets Advance, Initial Expense Advance and/or incurrence of the Letter of Credit
Obligations.

 

(ii)         Within:
(i) three (3) Business Days after the Applicable Lender’s receipt of a Liquidation Loan Proposal in the US and Canada only
and (ii) within five (5) Business Days after the Applicable Lender’s receipt of a Liquidation Loan Proposal in any other
jurisdiction, the Applicable Lender will notify such Borrower in writing (such notice, a “Lender’s Offer”),
which notice may be substantially in the form of Exhibit 2.1(a)(ii) or such other form as the Applicable Lender may elect,
whether the Applicable Lender:

 

		(A)	would be
willing to make Revolving Credit Advance or incur Letter of Credit Obligations on the terms proposed by such Borrower in which
case such Borrower shall be obligated to timely submit a Notice of Revolving Credit Advance or a Notice of Letter of Credit Request
pursuant to Section 2.1(eg),

 

 

		(B)	is not willing to make any Revolving Credit Advance or incur any Letter of Credit Obligations with
respect to such Liquidation Sale, or

 

		(C)	would be willing to make a Revolving Credit Advance or incur Letter of Credit Obligations with
respect to the proposed Liquidation Sale, but only at a specified Inventory Advance Rate or Other Assets Advance Rate that is different
from that proposed by Borrower and/or with such other modifications specified in such notice.

 

    	 	- 32 -	 

     

    

 

the Applicable Lender shall have sole discretion
to decide whether or not to agree to any Liquidation Loan Proposal or to propose an alternative Inventory Advance Rate or Other
Assets Advance Rate for the proposed Liquidation Sale. The Applicable Lender shall not have any obligation to make a Revolving
Credit Advance or incur Letter of Credit Obligations unless the Applicable Lender actually receives, within two (2) Business Days
after a Borrower’s receipt of a notice from the Applicable Lender described in clauses (A) or (C) of the immediately preceding
sentence, written notice from such Borrower of such Borrower’s intention to request disbursement of such Revolving Credit
Advance or incurrence of such Letter of Credit Obligations on the terms set forth in such notice from the Applicable Lender; provided,
however, that if the Applicable Lender has agreed to make a Revolving Credit Advance or incur Letter of Credit Obligations
on the terms proposed by a Borrower in the applicable Liquidation Loan Proposal, such Borrower shall apply for such Revolving Credit
Advance or Letter of Credit on such terms (unless subsequently otherwise agreed by the Applicable Lender in writing). In the event
that, as a result of competitive bidding or otherwise, a Borrower elects to increase the Guaranteed Amount or Purchase Price (an
“Overbid”) it is willing to pay under a Liquidation Sales Agreement for which it has provided to the Applicable
Lender a Liquidation Loan Proposal under Section 2.1(fh)(i)
prior to or after the Applicable Lender’s sending a notice under Section 2.1(fh)(ii),
such Borrower shall promptly provide the Applicable Lender with written notice of such increase, together with a modified Liquidation
Loan Proposal, and the Applicable Lender shall have the option, in its absolute discretion, to determine whether to fund any portion
of such increase, to reduce the Inventory Advance Rate or Other Assets Advance Rate in respect to such higher Guaranteed Amount
or Purchase Price, or to make a Revolving Credit Advance or issue a Letter of Credit only in accordance with the original terms
proposed by the Applicable Lender prior to such increase. The Applicable Lender shall not be required, without its consent, to
increase the aggregate amount of any Revolving Credit Advances or Letters of Credit agreed to by the Applicable Lender in Lender’s
Offer as a consequence of any Overbid.

 

(iii)        The amount of
the Revolving Credit Advance and/or the Letter of Credit Obligations (other than with respect to any Backend L/C) with respect
to each Liquidation Sale shall: (x) be calculated based upon the applicable Inventory Advance Rate or Other Assets Advance Rate
and the actual Guaranteed Amount or Purchase Price as determined pursuant to the applicable Liquidation Sales Agreement (or, if
the actual amount required to be delivered to the Merchant by a Borrower with respect to the Guaranteed Amount or Purchase Price
is less than such Guaranteed Amount or Purchase Price, such lesser amount) and);
(y) in the aggregate, (but excluding any Initial Expense
Advances), not exceed at any time the applicable Inventory Borrowing Base or Other Assets Borrowing Base, as the case may
be; and (z) in the case of an Initial Expense Advance, not exceed at any time the applicable Initial
Expense Borrowing Base. Subject to the terms and conditions of this Agreement, the Revolving
Credit Advance and the applicable Letter of Credit Obligations may be incurred simultaneously
with such advance, shall be disbursed as a single advance; provided, however, that in the event the Liquidation Sales Agreements
require an initial payment by a Borrower to the Merchant before the completion of a final inventory count, the Revolving Credit
Advance may be disbursed in two or separate advances with the first portion of the Revolving Credit Advance being calculated based
upon the applicable Inventory Advance Rate or Other Assets Advance Rate and the amount of such required initial payment and the
second portion, if any, of the Revolving Credit Advance being determined and made based on the actual Guaranteed Amount or Purchase
Price as determined by the final inventory count and, if necessary, the amount of such subsequent Revolving Credit Advance being
increased in correspondence with reductions to the related Letter of Credit Obligations.

 

    	 	- 33 -	 

     

    

 

(i)          Sales
Tax Advances. To the extent that the Applicable Lender has received Collections with respect to a Liquidation Sale, which Collections
include Sales Tax Receipts, the Applicable Lender shall make, subject to the terms and conditions hereof (including, without limitation,
Section 3.3) Revolving Credit Advances equal to the amount of such Sales Tax Receipts (each, a “Sales Tax Advance”),
as and when a Borrower is required to pay such amounts to the applicable Merchant or taxing authority, to enable a Borrower to
forward such amounts to such Merchant or taxing authority in accordance with the terms of the applicable Liquidation Sales Agreement.
A Borrower’s Notice of Revolving Credit Advance shall include documentation satisfactory to the Applicable Lender evidencing
the amount of such Sales Tax Receipts.

 

(j) TotalSubsequent
Expense Advances. With respect to each Liquidation Sale,To the
Applicable Lender shall,extent a Lender has agreed
to fund an Inventory Advance or Other Assets Advance, upon the request of a Borrower and
subject to the terms and conditions hereof (including, without limitation, Section 3.3), such
Applicable Lender shall make Revolving Credit Advances to enable a Borrower to pay Expenses to
the Merchant or that are not Initial Expenses (any third
party entitled to receive such payment in accordance withsuch
Revolving Credit Advance, the terms of the applicable Liquidation Sales Agreement,
as and when a Borrower is required to pay such amounts.“Subsequent Expense
Advance”). With respect to each
Liquidation SaleSubsequent Expense Advance, the Applicable Lender shall
make such Revolving Credit Advances in an aggregate amount not to exceed the lesser of (i) the actual Expenses of such Liquidation
Sale, and (ii) an amount equal to one hundred and three percent (103%) of the amount for aggregate Expenses shown on the Budget
for such Liquidation Sale (the “Total Expense Advance”) for an average
two (2) week period; (in each of clauses
(i) and (ii), excluding any Initial Expenses); provided, that the TotalSubsequent
Expense Advance may exceed one hundred and three percent (103%) of the amount for aggregate Expenses shown on the Budget
for such Liquidation Sale for an average two (2) week period to the extent that a Borrower either provides the Applicable Lender
with evidence reasonably satisfactory to the Applicable Lender that such excess was not caused by a deviation from the plan for
such Liquidation Sale as set forth in the documents and information furnished to the Applicable Lender with the Liquidation Loan
Proposal for such Liquidation Sale, or to the extent that such excess is caused by a deviation for which the Applicable Lender
has given its prior written consent. A Borrower’s Notice of Revolving Credit Advance shall include documentation satisfactory
to the Applicable Lender evidencing the amount of Expenses. to
be funded pursuant to the Subsequent Expense Advance. If specified in the Liquidation Loan Proposal for such Liquidation
Sale, the Applicable Lender will incur Letter of Credit Obligations with respect to a portion of the anticipated Expenses of such
Liquidation Sale; provided, that in such case the Applicable Lender will not be obligated to make Revolving Credit Advances with
respect to Expenses of such Liquidation Sale unless the Applicable Lender is satisfied that the aggregate amount of such Revolving
Credit Advances and the amount of such Letter of Credit Obligations that the Applicable Lender reasonably anticipates may ultimately
be drawn upon does not exceed the TotalSubsequent
Expense Advance.

 

(k)          Notes.
Borrowers shall execute and deliver to the Applicable Lender one or more notes in the aggregate principal amount of the Revolving
Loan Ceiling substantially in the form of Exhibit 2.1(i) (collectively, the “Notes”). Each Note
shall represent the joint and several obligation of Borrowers to pay the amount of the applicable outstanding Revolving Credit
Advance or Letter of Credit Obligation, as well as all other Revolving Credit Advances and Letter of Credit Obligations, together
with interest thereon as prescribed in Section 2.4. Notwithstanding any provision of any of the Notes, the entire unpaid
balance of the Revolving Loan and all of the Notes, and all other non-contingent Obligations, shall be immediately due and payable
in full in immediately available funds on the Revolving Credit Termination Date.

 

(l)          Reliance
on Notices. The Applicable Lender shall be entitled to rely upon, and shall be fully protected in relying upon, any Notice
of Revolving Credit Advance, Notice of Letter of Credit Request, Liquidation Loan Proposal or similar notice believed by the Applicable
Lender to be signed by any Authorized Person of a Borrower. The Applicable Lender may assume that each Person executing and delivering
such a notice was duly authorized.

 

    	 	- 34 -	 

     

    

 

2.2           Use
of Proceeds. Borrowers shall use the proceeds of each Liquidation Borrowing solely for the purpose of making payments with
respect to the Guaranteed Amount or Purchase Price, Expenses, Sales Tax Receipts, or the Recovery Amount, if any, with respect
to the associated Liquidation Sale, as and when Borrowers are required to pay such amounts in accordance with the terms of the
applicable Liquidation Sales Agreements.

 

2.3           Maturity
of Advances. With respect to Revolving Credit Advances or Letters of Credit made or issued in any given Liquidation Sale, each
such Revolving Credit Advance shall be due and payable in full, and each Letter of Credit shall have an expiry date no later than,
the earlier of (i) 180 days after the date of the first Revolving Credit Advance made or Letter of Credit issued with respect to
such Liquidation Sale, or (ii) twenty one (21) days after the last day of the sale term as stated in the applicable Liquidation
Sale Agreement.

 

2.4          Interest
and Letter of Credit Fees.

 

(a)          U.S.
Borrowers may only request Revolving Credit Advances with an interest rate determined by reference to the LIBO Rate plus the applicable
Margin. Canadian Borrower may only request Revolving Credit Advances with an interest rate determined by reference to the LIBO
Rate (for Dollars) or the BA Equivalent Rate (for CAD), plus the applicable Margin.

 

(b)          Accrued
and unpaid interest on Revolving Credit Advances shall be payable (i) on the first day of each calendar month after the Closing
Date; (ii) upon the occurrence of an Event of Default in consequence of which the Applicable Lender elects to accelerate the maturity
of all or any portion of the Obligations, and (iii) upon termination of this Agreement pursuant to the terms hereof. At any time
that an Event of Default has occurred and is continuing, the Applicable Lender shall have the option to convert the interest rate
on all outstanding (A) LIBO Rate Loans to a rate equal to the Base Rate plus the applicable Margin (in the case of Dollars)
and (B) BA Rate Loans to a rate equal to the Canadian Base Rate plus the applicable Margin (in the case of CAD). In the
event that the Applicable Lender exercises such right of conversion, Borrowers shall jointly and severally indemnify, defend, and
hold the Applicable Lender and its Indemnified Persons harmless against any and all Funding Losses resulting from such conversion
in accordance with Section 2.4(j).

 

(c)          Borrowers
shall pay interest to the Applicable Lender on the Daily Balance of the aggregate outstanding principal amount of all
Revolving Credit Advances at a per annum rate equal to the sum of (i) the Base Rate or LIBO Rate, as applicable to such
Revolving Credit Advances (in the case of Dollars), or (ii) the BA Equivalent Rate or Canadian Base Rate, as applicable to
such Revolving Credit Advances (in the case of CAD), in each case plus (iii) the applicable Margin. All other
Obligations shall bear interest at a per annum rate equal to the sum of (i) the Base
Rate or LIBO Rate, as applicable to such other
Obligations (in the case of Dollars)),
or (ii) the BA Equivalent Rate or Canadian Base Rate, as applicable to such other
Obligations (in the case of CAD)),
in each case plus the Margin then applicable to Other Asset Advances.

 

(d)          As
to each outstanding Letter of Credit, Borrowers shall pay the Applicable Lender a Letter of Credit Fee (in addition to the charges,
commissions, fees, and costs set forth in Annex B attached hereto) which shall accrue at the applicable rate set forth
in Annex B attached hereto multiplied by the maximum amount available to be drawn under the applicable Letter of Credit.

 

    	 	- 35 -	 

     

    

 

(e)          Letter of
Credit Fees and all other Fees (except (i) the Closing Fee which shall be payable in
accordance with the Fee Letter and (ii) the Seventh Amendment Closing Fee which shall be payable
in accordance with the Seventh Amendment Fee Letter) payable hereunder shall be due and payable,
in arrears, on the first day of each month at any time that Obligations are outstanding. Each Borrower hereby authorizes the
Applicable Lender, from time to time, without prior notice to any Borrower, to charge interest and fees, all Lender Expenses
(as and when incurred), Fees, and all other payments as and when due and payable under any Loan Document (including any
amounts due and payable to the Applicable Lender or its Affiliates in respect of Bank Products) to Borrowers’ Loan
Account, which amounts thereafter shall constitute Revolving Credit Advances hereunder and shall accrue interest at the
applicable Base Rate plus the Margin applicable for Revolving Credit Advances with an Inventory Advance Rate of 92.5%
hereunder. Any interest not paid when due shall be compounded by being charged to Borrowers’ Loan Account and shall
thereafter constitute Revolving Credit Advances hereunder and shall accrue interest at the applicable Base Rate plus the
Margin applicable for Inventory Advances with an Inventory Advance Rate of 92.5% hereunder. Each Lender shall provide
Borrowers with copies of invoices it receives in respect to Lender Expenses upon request.

 

(f)           If
any payment on any Revolving Credit Advances becomes due and payable on a day other than a Business Day, subject with respect to
Non-Prime Rate Loans to clauses (c)-(e) of the definition of Interest Period, the maturity thereof will be extended to the next
succeeding Business Day and, with respect to payments of principal, interest thereon shall be payable at then applicable rate during
such extension.

 

(g)          All computations
of interest and fees shall be made by the Applicable Lender on the basis of a three hundred
and sixty (360) day year, in each case for the actual number of days occurring in the period for which such interest isand
fees are payable. Each determination by the Applicable Lender of an interest rate hereunder shall be conclusive, absent
manifest error. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the
Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate.

 

(h)          So
long as any Event of Default shall have occurred and be continuing, and at the election of the Applicable Lender after written
notice from the Applicable Lender to Borrowers, the interest rates and the Letter of Credit Fees applicable to each of the Revolving
Credit Advances, Letters of Credit, and other Obligations shall be increased by two percent (2%) per annum above the rates of interest
or the Letter of Credit Fees otherwise applicable hereunder (“Default Rate”), and all outstanding Obligations
shall bear interest at the Default Rate applicable to such Obligations. Interest and Letter of Credit Fees at the Default Rate
shall accrue from the initial date of such Event of Default until that Event of Default is cured or waived and shall be payable
upon demand.

 

    	 	- 36 -	 

     

    

 

(i)           Notwithstanding
anything to the contrary set forth in this Section 2.4, if a court of competent jurisdiction determines in a final order
that the rate of interest payable hereunder exceeds the highest rate of interest permissible under Law (usury or otherwise) (the
“Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable
hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable
hereunder is less than the Maximum Lawful Rate, Borrowers shall continue to pay interest hereunder at the Maximum Lawful Rate until
such time as the total interest received by the Applicable Lender is equal to the total interest which would have been received
had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Closing
Date as otherwise provided in this Agreement. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the
manner provided in Sections 2.4(a) through (e) above, unless and until the rate of interest again exceeds the Maximum
Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Applicable
Lender pursuant to the terms hereof exceed the amount which the Applicable Lender could lawfully have received had the interest
due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant
to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of
days in the year in which such calculation is made. If, notwithstanding the provisions of this Section 2.4(i), a court of
competent jurisdiction shall finally determine that the Applicable Lender has received interest hereunder in excess of the Maximum
Lawful Rate, the Applicable Lender shall, to the extent permitted by applicable Law, promptly apply such excess in the order specified
in Section 2.8 and thereafter shall refund any excess to Borrowers or as a court of competent jurisdiction may otherwise
order.

 

(j)           In
connection with each Non-Prime Rate Loan, Borrowers shall jointly and severally indemnify, defend, and hold the Lenders harmless
against any loss, cost, or expense incurred by the Lenders as a result of (a) the payment of any principal of any Non-Prime Rate
Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the
conversion of any Non-Prime Rate Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure
to borrow, convert, continue or prepay any Non-Prime Rate Loan on the date specified in any Notice of Revolving Credit Advance
delivered pursuant hereto (such losses, costs, and expenses, collectively, “Funding Losses”). Funding Losses
shall, with respect to the Applicable Lender, be deemed to equal the amount reasonably determined by the Applicable Lender to be
the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Non-Prime Rate Loan had
such event not occurred, at the Non-Prime Rate that would have been applicable thereto, for the period from the date of such event
to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for
the period that would have been the Interest Period therefor), minus (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate which the Applicable Lender would be offered were it to be offered, at the
commencement of such period, Dollar deposits of a comparable amount and period in the London interbank market. A certificate of
the Applicable Lender delivered to Borrower setting forth any amount or amounts that the Applicable Lender is entitled to receive
pursuant to this Section shall be conclusive absent manifest error.

 

(k)          A
Borrower may prepay Non-Prime Rate Loans at any time; provided, however, that in the event that Non-Prime Rate Loans
are prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any automatic
prepayment through the required application by the Applicable Lender of Proceeds in accordance with Section 2.8 or for any
other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the Obligations
pursuant to the terms hereof, Borrowers shall jointly and severally indemnify, defend, and hold the Applicable Lender and its Indemnified
Persons harmless against any and all Funding Losses in accordance with Section 2.4(j).

 

(l)          The
following provisions shall apply to each Non-Prime Rate Loan:

 

    	 	- 37 -	 

     

    

 

(i)          The
Non-Prime Rate may be adjusted by the Applicable Lender on a prospective basis to take into account any additional or increased
costs to the Applicable Lender of maintaining or obtaining any eurodollar deposits or increased costs due to changes in applicable
Law occurring subsequent to the commencement of then applicable Interest Period, including changes in tax laws (except changes
of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of Governors
of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or increased costs would increase
the cost of funding loans bearing interest at the Non-Prime Rate. In any such event, the Applicable Lender shall give Borrowers
notice of such a determination and adjustment and, upon its receipt of such notice from the Applicable Lender, Borrowers may, by
notice to the Applicable Lender (y) require the Applicable Lender to furnish to Borrowers a statement setting forth the basis for
adjusting such Non-Prime Rate and the method for determining the amount of such adjustment, or (z) repay the Non-Prime Rate Loans
with respect to which such adjustment is made (together with any amounts due under Section 2.4(j) above).

 

(ii)         In
the event that any change in market conditions or any Law, regulation, treaty, or directive, or any change therein or in the interpretation
of application thereof, shall at any time after the date hereof, in the reasonable opinion of the Applicable Lender, make it unlawful
or impractical for the Applicable Lender to fund or maintain Non-Prime Rate Loans or to continue such funding or maintaining, or
to determine or charge interest rates at the Non-Prime Rate, the Applicable Lender shall give notice of such changed circumstances
to Borrowers and in the case of any Non-Prime Rate Loans that are outstanding, the date specified in the Applicable Lender’s
notice shall be deemed to be the last day of the Interest Period of such Non-Prime Rate Loans, and interest upon the Non-Prime
Rate Loans shall accrue interest at a rate equal to the applicable Base Rate plus the applicable Margin.

 

(iii)        Anything
to the contrary contained herein notwithstanding, the Applicable Lender is not required actually to acquire eurodollar deposits
to fund or otherwise match fund any Obligation as to which interest accrues at the Non-Prime Rate. The provisions of this clause
shall apply as if the Applicable Lender had match funded any Obligation as to which interest is accruing at the Non-Prime Rate
by acquiring eurodollar deposits for each Interest Period in the amount of the Non-Prime Rate Loans.

 

(m)          Interest
Act (Canada). For the purposes of the Interest Act (Canada), the yearly rate of interest to which any rate calculated on the
basis of a period of time different from the actual number of days in the year (360 days, for example) is equivalent is the stated
rate multiplied by the actual number of days in the year (365 or 366, as applicable) and divided by the number of days in the shorter
period (360 days, in the example).

 

2.5           Fees.
Borrowers shall pay to the Lenders all Lender Expenses, including, but not limited to, the following fees and charges, which fees
and charges shall be non-refundable when paid (irrespective of whether this Agreement is terminated thereafter):

 

(a)          Closing
Fee. The applicable Borrowers shall pay the U.S. Lender the Closing Fee in accordance with the Fee Letter.

 

(b)          Success
Fee. Upon completion of the Final Accounting with respect to any Liquidation Sale, Borrowers shall pay to the Lenders the Success
Fee, if any, with respect to such Liquidation Sale. To the extent that the Applicable Lender has received and is still holding
payments with respect to such Liquidation Sale after all other Obligations with respect to such Liquidation Sale have been paid
in full, the Applicable Lender may apply the amount of payments against any Success Fee with respect to such Liquidation Sale.

  

(c)          Audit,
Appraisal, and Valuation Charges. For the separate account of the Lenders, Borrowers shall pay all audit, appraisal, and valuation
fees plus out-of-pocket expenses, for each audit, appraisal, and valuation of the Collateral performed by or at the request
of the Applicable Lender, or the actual charges paid or incurred by the Applicable Lender if it elects to employ the services of
one or more third Persons to perform financial audits of any Borrower, to appraise the Collateral, or any portion thereof, or to
assess any Borrower’s business valuation.

 

    	 	- 38 -	 

     

    

 

(d)          Work Fee.
In the event that a Borrower has submitted a Liquidation Loan Proposal to the Applicable Lender pursuant to Section 2.1(fh)
and the Applicable Lender has committed pursuant to Section 2.1(fh)(ii)
to make a Revolving Credit Advance or incur Letter of Credit Obligations on the terms set forth in such Liquidation Loan Proposal
(or on other terms proposed by the Applicable Lender and accepted by such Borrower) and such Borrower (or any Liquidator JV, as
applicable) thereafter enters into a Liquidation Sales Agreement but such Borrower, Great American or GAG Inc. elects to fund its
(or any of its Affiliates’) obligations (or its pro rata share of the obligations of any Liquidator JV, as applicable) under
such Liquidation Sales Agreement without such Revolving Credit Advance or Letter of Credit, then, without waiving any Default or
Event of Default which may result (including, without limitation, as a result of any breach of Section 6.15) from such Borrower’s
election or any of the Applicable Lender’s rights or remedies against such Borrower under the Loan Documents or applicable
Law (all of which the Applicable Lender hereby expressly reserves), Borrower shall pay the Work Fee to the Applicable Lender, which
Work Fee shall be deemed fully earned and payable upon the occurrence of such events. A Work Fee constitutes partial consideration
for the Applicable Lender’s work in reviewing the terms of such Liquidation Loan Proposals and shall not relieve a Borrower
of any other obligations hereunder to reimburse the Applicable Lender for any other Lender Expenses or Fees howsoever arising.
The Work Fee shall be paid no later than the first day of the next calendar month pursuant to Section 2.4(e), after Borrower
(or any Liquidator JV) enters into such Liquidation Sales Agreement and shall be subject to the other terms and conditions of Section
2.4(e).

 

(e)          Administrative
Fee. The Borrowers shall pay to the U.S. Lender a fee (the “Administrative Fee”)
calculated on a per annum basis equal to 0.15% multiplied by the actual daily amount by which the Revolving Loan Ceiling (after
having given effect to the aggregate principal amount of outstanding loans, advances or other credit extensions by Burdale pursuant
to the UK Credit Agreement (if it is then in effect)) exceeds the sum of (i) the aggregate amount of Revolving Credit Advances
outstanding plus (ii) the aggregate Letter of Credit Obligations. The Administrative Fee shall accrue at all times from and after
the Seventh Amendment Effective Date and be payable monthly in arrears on the first day of each calendar month following the Seventh
Amendment Effective Date. The Administrative Fee received by the U.S. Lender hereunder may be shared among the Lenders and their
respective affiliates as the U.S. Lender may determine in its sole discretion. The Borrowers shall have no responsibility to the
Lenders or their respective affiliates for the manner in which the U.S. Lender determines to so share, if at all, the Administrative
Fee.

 

(f)          Seventh
Amendment Closing Fee. The Borrowers shall pay the Lenders the Seventh Amendment Closing
Fee in accordance with the Seventh Amendment Fee Letter.

 

2.6          Cash
Management Systems.

  

(a)          Borrowers
shall (i) establish and maintain cash management services of a type and on terms satisfactory to the Lenders at one or more of
the banks set forth on Schedule 2.6 (each a “Cash Management Bank”), and shall request in writing and
otherwise take such reasonable steps to ensure that all amounts owed to any Borrower by any Person is directly deposited to one
of the cash management accounts at such Cash Management Banks, and (ii) deposit or cause to be deposited promptly, and in any event
no later than the first Business Day after the date of receipt thereof, all Collections into one of the DDAs set forth on Schedule
2.6 (a “Cash Management Account”) at one of the Cash Management Banks or the applicable Collection Account.
If, notwithstanding the provisions of this Section 2.6, any Borrower receives or otherwise has dominion over or control
of any Collections, such Borrower shall hold such Collections in trust for the Lenders and shall not commingle such Collections
with any Person’s other funds or deposit such Collections in any account of any other Person except as instructed by the
Lenders.

 

    	 	- 39 -	 

     

    

 

(b)          Borrowers
shall establish and maintain Control Agreements with the Lenders and each Cash Management Bank set forth on Schedule 2.6
in respect to any Cash Management Account, any Collection Account and any Disbursement Account and, upon the request of the Lenders
at any time, at any other DDA. Each such Control Agreement shall provide, among other things, that (i) upon notice from the Lenders,
the Cash Management Bank will comply with instructions of the Lenders directing the disposition of funds in the applicable Cash
Management Account without further consent by any Borrower, (ii) the Cash Management Bank has no rights of setoff or recoupment
or any other claim against the applicable Cash Management Account or Collection Account, other than for payment of its service
fees and other charges directly related to the administration of such Cash Management Account or Collection Account and for returned
checks or other items of payment, and (iii) except as otherwise permitted under Section 2.6(e) or as otherwise agreed by the Applicable
Lender in its sole discretion, the Cash Management Bank immediately will forward by daily sweep all amounts in the applicable Cash
Management Account or Collection Account to the applicable Collection Account or Lender’s Account identified by the Applicable
Lender and (iv) no Borrower shall have (A) access to such Cash Management Account(s) or Collection Account or the contents
thereof and (B) the right to direct the distribution of any funds from such Cash Management Account(s) or Collection Account.
For any Liquidation Sale, or portion thereof, conducted outside of the United States or Canada, the Applicable Lender and Borrowers
shall establish a Collection Account to receive the proceeds of such Liquidation Sale outside the United States or Canada and all
funds on deposit in such Collection Account shall be swept to the Master Collection Account at such intervals as agreed by the
Applicable Lender and Borrowers at the commencement of the Liquidation Sale.

 

(c)          Reserved.

 

(d)          Promptly
at the request of the Lenders, each Borrower shall deliver to the Lenders notification, executed by such Borrower, to each depository
institution at which such Borrower maintains any DDA (other than DDA’s established for petty cash), in form and substance
satisfactory to the Lenders in their sole discretion, of the Lenders’ Liens in such DDA and, shall instruct such depository
institution, upon direction of the Lenders, to remit all amounts deposited from time to time in the DDA to Lender’s Account
or as otherwise directed from time to time by the Lenders. Except as otherwise may be provided with respect to Blocked Accounts
pursuant to Section 2.6(e), no Borrower shall establish any DDA hereafter unless, contemporaneous with such establishment,
such Borrower notifies the Lenders and, if requested by the Lenders, delivers to such depository institution the notification described
herein and together with a Control Agreement. No Borrower shall change such direction or designation without the prior written
consent of the Lenders. If no Event of Default has occurred and is continuing, the Lenders shall not direct any such depository
institution referred to in this Section 2.6(d) to remit amounts to the Lenders without taking into consideration other expenditures
to be made from such accounts provided that the provisions of this sentence shall not apply to Cash Management Accounts, Blocked
Accounts, or the Collection Account(s). Notwithstanding the foregoing, Borrowers shall not be required to provide a cash management
agreement or other control agreement with respect to any DDA in which a balance of $2,500 (or the equivalent in any other currency)
or less is maintained at all times (provided that the aggregate amount of such balances in all accounts does not exceed $20,000
and the full balance in such account is swept into a Collection Account at least twice per week).

 

    	 	- 40 -	 

     

    

 

(e)          Notwithstanding
anything herein to the contrary, for each Liquidation Sale, prior to the Applicable Lender making the Revolving Credit Advance
or incurring the Letter of Credit Obligations with respect to such Liquidation Sale, unless such requirement is waived in writing
by the Applicable Lender, Borrowers shall establish a blocked account in Borrowers’ name (the “Blocked Account”)
at a bank acceptable to the Lenders, for the deposit of all Collections and other amounts that Borrowers are entitled to receive
and use with respect to such Liquidation Sale, and Borrowers shall deposit or cause to be deposited into the Blocked Account such
amounts at least two times per week, or more frequently as Borrowers may determine is appropriate. In the event that Borrowers
have not established a Blocked Account prior to the date on which the Applicable Lender is otherwise willing to make a Revolving
Credit Advance or incur the Letter of Credit Obligations with respect to any Liquidation Sale, Borrowers shall cause, in a manner
satisfactory to the Applicable Lender in its sole discretion, all Collections and other amounts which Borrowers are entitled to
receive and use with respect to such Liquidation Sale to be deposited into the Collection Account at least two times per week,
or more frequently as Borrowers may determine is appropriate.

 

(f)          Prior
to the Applicable Lender making the Revolving Credit Advance or incurring the Letter of Credit Obligations with respect to each
Liquidation Sale, the bank at which the Blocked Account for such Liquidation Sale has been established (if the Applicable Lender
has not waived such requirement as provided in Section 2.6(e)) shall have entered into a Control Agreement with the Applicable
Lender and Borrowers, in form and substance acceptable to the Applicable Lender, which shall immediately become operative at the
bank at which the Blocked Account is maintained. Such Control Agreement shall provide, among other things, that such bank executing
such agreement has no rights of setoff or recoupment or any other claim against such Blocked Account, other than for payment of
its service fees and other charges directly related to the administration of such account, and the bank at which the Blocked Account
is located agrees to forward immediately all amounts in the Blocked Account to the applicable Collection Account and to commence
the process of daily sweeps from the Blocked Account into the applicable Collection Account. Although, as a result of the collection
of payments in any Collection Account, a credit balance may exist in favor of Borrowers, under no circumstance shall such credit
balance accrue interest in favor of Borrowers.

 

(g)          For
each Liquidation Sale, Borrowers shall establish, in their name, a separate account (each a “Disbursement Account”)
at a bank acceptable to the Applicable Lender in the United States or Canada (the “Disbursement Account Bank”)
into which the Applicable Lender shall deposit proceeds of the Revolving Credit Advances with respect to such Liquidation Sale,
except for those proceeds as to which the Applicable Lender and Borrowers have agreed upon an alternative method of funding, for
use by Borrowers solely in accordance with the provisions of Section 2.2. Prior to the Applicable Lender’s making
such Revolving Credit Advance, the bank at which the Disbursement Account for such Liquidation Sale has been established shall
have entered into a Control Agreement with the Applicable Lender and Borrowers, in form and substance acceptable to the Applicable
Lender, which shall immediately become operative at the bank at which the Disbursement Account is maintained. Such Control Agreement
shall provide, among other things, that such bank executing such agreement has no rights of setoff or recoupment or any other claim
against such Disbursement Account, other than for payment of its service fees and other charges directly related to the administration
of such account.

 

(h)          The
Cash Management Accounts, Collection Accounts, Blocked Account and the Disbursement Account for each Liquidation Sale shall be
cash collateral accounts, with all cash, checks and other similar items of payment in such accounts securing payment and performance
of the Liquidation Borrowings and all other Obligations, and in which Borrowers shall be deemed to have granted a Lien to the Applicable
Lender pursuant to the Collateral Documents. Unless the Lenders otherwise agree, Borrowers shall maintain the Blocked Account and
the Disbursement Account with respect to each Liquidation Sale so long as there is any reasonable expectation that any additional
Collections will be received or Revolving Credit Advances made with respect to such Liquidation Sale.

 

    	 	- 41 -	 

     

    

 

(i)          Notwithstanding
the foregoing, it is the intent of the parties that at all times the Applicable Lender shall benefit from a first priority Lien
on all funds in any Cash Management Account, Collection Account, Blocked Account, and Disbursement Account wherever located. If
the Law of any jurisdiction where any account is domiciled (or the bank at which such account is maintained) requires additional
documents, agreements, and other measures in order to provide such first priority and perfection, Borrowers shall cooperate with
the Applicable Lender in executing such documents and agreements and taking such other measures, all to the Applicable Lender’s
satisfaction.

 

2.7          Payments.

 

(a)          Receipt
of Payments. All payments with respect to any Obligations of any Credit Party organized under the laws of the United States
shall be made in Dollars and all payments with respect to any Obligations of the Canadian Borrower shall be made in the currency
of the underlying Canadian Obligation (eg. Dollars or CAD). Any payment made contrary to the requirements of the preceding sentence
shall be subject to the terms of this Section 2.7 and Section 2.19.  Except as otherwise expressly provided herein, all payments
by Borrowers shall be made to Lender’s Account in Dollars or CAD, as applicable, and shall be made in immediately available
funds, no later than 1:00 p.m. (Boston, Massachusetts time) on the date specified herein. Any payment received by the Applicable
Lender later than 1:00 p.m. (Boston, Massachusetts time), shall be deemed to have been received on the following Business Day and
any applicable interest or fee shall continue to accrue until such following Business Day. Any payment received by the Applicable
Lender on account of Borrowers in a currency other than Dollars or CAD, as applicable, shall not be deemed to be a payment until
the Applicable Lender has converted such currency into Dollars or CAD, as applicable. Borrowers shall remain liable for the full
amount of any such payment due to the Applicable Lender if, after conversion from such other currency into Dollars or CAD, as applicable,
a deficiency remains. Borrowers shall also be liable for any costs, fees, expenses, Taxes, or other liabilities incurred by the
Applicable Lender as a result of receiving payment in such other currency or converting such currency into Dollars or CAD, as applicable.
Notwithstanding the foregoing, the Applicable Lender is not obligated to accept any payment for any Obligations in any currency
other than Dollars or CAD, as applicable. In the event on occasion the Applicable Lender agrees to accept payment for any Obligations
in a currency other than Dollars or CAD, as applicable, the Applicable Lender’s acceptance on such occasion shall not require
or oblige the Applicable Lender to accept payment in other currencies thereafter.

  

(b)          Crediting
Payments; Float Charge. The receipt of any payment item by the Applicable Lender (whether from transfers to the Applicable
Lender by the Cash Management Banks pursuant to the Control Agreements or otherwise) shall not be considered a payment on account
unless such payment item is a wire transfer of immediately available federal funds made to Lender’s Account or unless and
until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment,
then Borrowers shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary
contained herein notwithstanding, any payment item shall be deemed received by the Applicable Lender only if it is received into
Lender’s Account on a Business Day on or before 1:00 p.m. (Boston, Massachusetts time). If any payment item is received into
Lender’s Account on a non-Business Day or after 1:00 p.m. (Boston, Massachusetts time) on a Business Day, it shall be deemed
to have been received by the Applicable Lender as of the opening of business on the immediately following Business Day. From and
after the Closing Date, the Applicable Lender shall be entitled to charge Borrowers, for the account of the Applicable Lender one
(1) Business Day of ‘clearance’ or ‘float’ at the rate applicable to the applicable Base Rate plus the
applicable Margin applicable for Inventory Advances with an Inventory Advance Rate of 92.5% hereunder on all Collections that are
received by Borrower (regardless of whether forwarded by the Cash Management Banks to the Applicable Lender). This across-the-board
one (1) Business Day clearance or float charge on all Collections is acknowledged by the parties to constitute an integral aspect
of the pricing of the financing of Borrowers; the effect of such clearance or float charge being the equivalent of charging one
(1) Business Day of interest on such Collections.

 

    	 	- 42 -	 

     

    

 

2.8          Application
and Allocation of Payments.

 

(a)          Prior
to the date on which the Final Accounting for any Liquidation Sale is approved by the Applicable Lender, any and all payments at
any time or times received from or on behalf of any Borrower (or from or on behalf of any Liquidator JV) with respect to such Liquidation
Sale (including any Liquidation Sales where a Borrower or a Liquidator JV, as applicable, provided an Overbid, whether or not the
Applicable Lender financed any portion of such Overbid) shall be applied, subject to the Final Accounting, in the following order:

 

(i)          first, to repay
the outstanding principal of Revolving Credit Advances (including TotalInitial
Expense Advances and Subsequent Expense Advances) made by the Applicable Lender to fund Expenses of the applicable Liquidation
Sale;

 

(ii)        second,
to pay then due and payable interest with respect to the applicable Revolving Credit Advances made in connection with such Liquidation
Sale;

 

(iii)       third,
to pay then due and payable Letter of Credit Fees with respect to the applicable Letters of Credit issued in connection with such
Liquidation Sale;

 

(iv)       fourth, to pay
all other thanthen due and payable Fees
(other than the Success Fee) and other Obligations incurred by Borrower in connection with such Liquidation Sale, other than interest
or principal with respect to Revolving Credit Advances and Letter of Credit Fees to the extent set forth in clauses (i), (ii) and
(iii) of this Section 2.8(a);

 

(v)        fifth,
to repay the outstanding principal of all Revolving Credit Advances (other than those referred to in clause (i) of this Section 2.8(a))
made with respect to such Liquidation Sale;

 

(vi)       sixth,
to be held by the Applicable Lender as cash collateral for Letter of Credit Obligations in the manner described in Annex B
until all of such Letter of Credit Obligations with respect to the applicable Liquidation Sale have been fully cash collateralized
to the extent required in Annex B;

 

(vii)      seventh,
to fund a reserve held by the Applicable Lender for all Expenses shown on the Budget that have not been paid or yet incurred with
respect to the applicable Liquidation Sale, to the extent such Expenses have not been otherwise reserved for under a Letter of
Credit;

 

(viii)     eighth,
to fund a reserve held by the Applicable Lender for the Recovery Amount with respect to the applicable Liquidation Sale;

 

(ix)        ninth,
to Borrowers, to reimburse Borrowers for duly documented Expenses paid by Borrowers with respect to the applicable Liquidation
Sale that were not funded with Revolving Credit Advances;

 

(x)         tenth,
to deposits to the Disbursement Account, for the benefit of Borrowers, for payment of up to the Borrower Equity Amount;

 

    	 	- 43 -	 

     

    

 

(xi)        eleventh,
to any other unpaid amounts due to the Applicable Lender in respect to other outstanding Obligations incurred in connection with
other Liquidation Sales that have been completed;

 

(xii)       twelfth,
to the Applicable Lender as preliminary payments for the Success Fee for such Liquidation Sale based on the Net Profit Margin with
respect to such Liquidation Sale;

 

(xiii)      thirteenth,
to the extent the UK Credit Agreement is in effect, to Burdale for any unpaid amounts due to Burdale pursuant to the UK Credit
Agreement in connection with completed Liquidation Sales (but only if at the completion of a permitted transaction under the UK
Credit Agreement there is a shortfall in the repayment of any amounts due in connection therewith pursuant to the UK Credit Agreement,
which shortfall has not been repaid within two (2) business days of Borrower’s receipt of written notice from the Applicable
Lender in which such shortfall is identified);

 

(xiv)      fourteenth,
ninety percent (90%) of the remaining amount, if any deposited into the Disbursement Account for the benefit of Borrowers; and

 

(xv)       fifteenth,
the remaining ten percent (10%) to be held by the Applicable Lender pending completion of the Final Accounting.

 

Upon the Final Accounting,
any remaining amounts received by the Applicable Lender with respect to such Liquidation Sale after application in accordance with
the order set forth above, shall be applied in the following order: (i) to payment of any unpaid portion of the Success Fee, if
any, with respect to such Liquidation Sale; and then (ii) to deposits to the Disbursement Account, for the benefit of Borrowers.

 

(b)          If
upon the Final Accounting it is determined that any payments previously applied in accordance with Section 2.8(a) need to
be adjusted to reflect the actual amounts of all of the items set forth in Section 2.8(a), and that the amount received
by either party is greater than the amount than such party is ultimately determined to be entitled to receive, then such party
shall pay the amount of such excess to the other party.

 

(c)          the
Applicable Lender is authorized to, and at its sole election may, charge to any applicable Loan Account of Borrowers and cause
to be paid by Revolving Credit Advances hereunder all Fees, interest and other amounts owing by any Borrower under this Agreement
or any of the other Loan Documents with respect to a Liquidation Borrowing, if and to the extent Borrower fails to promptly pay
any such amounts as and when due, even if such charges would cause the aggregate outstanding Obligations to exceed the Revolving
Loan Ceiling. To the extent permitted by applicable Law, any charges so made shall constitute part of the Obligations hereunder.

 

(d)          To
the extent that the Applicable Lender applies any cash payment to a reserve or cash collateral account maintained by the Applicable
Lender pursuant to Section 2.8(a), the Applicable Lender shall credit interest to any such account in an amount equal to
the actual interest that the Applicable Lender earns on overnight deposits.

 

    	 	- 44 -	 

     

    

 

2.9          Loan
Account and Accounting. Each Lender shall maintain an account on its books in the name of Borrowers (the “Loan Account”)
on which Borrowers will be charged with all Revolving Credit Advances made by the Applicable Lender, to Borrowers or for a Borrower’s
account, the Letters of Credit issued for a Borrower’s account, and with all other payment Obligations hereunder or under
the other Loan Documents (except for Bank Product Obligations), including, accrued interest, fees and expenses, and Lender Expenses.
All amounts received in Lender’s Account from any Cash Management Bank shall be applied in accordance with Section 2.8
and the Loan Account shall be credited accordingly. Each Lender shall render statements regarding the Loan Account to Borrowers,
including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Expenses, and
such statements shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and
the Applicable Lender unless, within 30 days after receipt thereof by Borrowers, Borrowers shall deliver to the Applicable Lender
written objection thereto describing the error or errors contained in any such statements. Only those items expressly objected
to in such notice shall be deemed to be disputed by Borrowers.

 

2.10        Disbursements
& Disbursement Account. The Applicable Lender is authorized to make the Revolving Credit Advances and is
authorized to issue the Letters of Credit (or to cause Underlying Issuer to issue the Letters of Credit), under this
Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person. Borrowers
agree to establish and maintain the Disbursement Account with the Disbursement Account Bank for the purpose of receiving the
proceeds of the Revolving Credit Advances requested by Borrowers and made by the Applicable Lender hereunder. So long as no
Default or Event of Default has occurred and is continuing, Borrowers may add or replace the Disbursement Account Bank or the
Disbursement Account on 30 days prior written notice to the Applicable Lender; provided, however, that (i) such
prospective Disbursement Account Bank shall be satisfactory to the Applicable Lender and the Applicable Lender shall have
consented in writing in advance to the opening of such Disbursement Account with the prospective DesignatedDisbursement Account
Bank, and (ii) prior to the time of the opening of such Disbursement Account,
Borrowers, the Applicable Lender and such prospective Disbursement Account Bank shall have executed and delivered to the
Applicable Lender a Control Agreement with respect to the Disbursement Account. Unless otherwise agreed by the Applicable
Lender and Borrowers, any Revolving Credit Advance requested by Borrowers and made by the Applicable Lender, in its sole
discretion, shall be made to the Disbursement Account. The funding of a Revolving Credit Advance by the Applicable Lender
into the applicable Disbursement Account shall constitute the making of such Revolving Credit Advance hereunder. The
Applicable Lender shall not be obligated to cause the proceeds of any Revolving Credit Advance to be transferred to any other
bank or other account, particularly any such account located outside the United States or Canada, and shall not be required
to convert, or cause the conversion of, the proceeds of any Revolving Credit Advance into any non-United States currency.

 

    	 	- 45 -	 

     

    

 

2.11        Indemnity.

  

(a)          Each
Credit Party, jointly and severally, shall pay, indemnify, defend, and hold the Lenders, and each of the Lenders’ officers,
directors, employees, agents, attorneys, and attorneys-in-fact (each, an “Indemnified Person”) harmless (to
the fullest extent permitted by applicable Law) from and against any and all claims, demands, suits, actions, investigations, proceedings,
and damages, and all reasonable and documented attorneys’ fees and disbursements and other reasonable and documented costs
and expenses actually incurred in connection therewith (as and when they are incurred and irrespective of whether suit is brought),
at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the
execution, delivery, enforcement, performance, or administration of this Agreement, any of the other Loan Documents, or the transactions
contemplated hereby or thereby, and (b) with respect to any investigation, litigation, or proceeding related to this Agreement,
any other Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person
is a party thereto), or any act, omission, event, or circumstance in any manner related thereto (all the foregoing, collectively,
the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, no Credit Party shall have any
obligation to any Indemnified Person under this Section 2.11(a) with respect to any Indemnified Liability that a court of
competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified
Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified
Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which a Credit Party was
required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to
be indemnified and reimbursed by the Credit Parties with respect thereto. The Credit Parties shall be subrogated to an Indemnified
Person’s rights of recovery to the extent of any liabilities satisfied by the any Credit Party and such Indemnified Person
shall execute and deliver such instruments and papers as are necessary to assign such rights and assist in the execution thereof;
provided, however, that, and, notwithstanding the foregoing to the contrary, such subrogation rights of the Credit Parties may
not be exercised until payment in full of all Obligations due hereunder and the termination of this Agreement and shall be subordinate
to the Obligations due to the Lenders in all respects. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED
PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT (NOT CONSTITUTING
GROSS NEGLIGENCE) OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

 

(b)          Each
Credit Party shall each be liable, jointly and severally, to pay, indemnify, defend, and hold harmless (to the fullest extent permitted
by applicable Law) from and against any and all Indemnified Liabilities which may be instituted or asserted against or incurred
by any such Indemnified Person as a result of the engagement of such Credit Party, or any of their respective employees in, or
any of such Person’s causing any Credit Party to engage in, any fraud, acts in bad faith or intentional breach of the terms
of this Agreement, any Liquidation Sales Agreement, or the conduct of any Liquidation Sale. The foregoing to the contrary notwithstanding,
no Credit Party shall have any obligation to any Indemnified Person under this Section 2.11(b) with respect to any Indemnified
Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct
of such Indemnified Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations.
WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH
IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT (NOT CONSTITUTING GROSS NEGLIGENCE) OR OMISSION OF SUCH INDEMNIFIED
PERSON OR OF ANY OTHER PERSON.

 

2.12         Access.
Each Credit Party shall, during normal business hours, from time to time upon one (1) Business Day’s prior notice as frequently
as the Lenders reasonably determines to be appropriate: (a) provide the Lenders and any of their officers, employees and agents
access to its properties, facilities, advisors and employees (including officers) and to the Collateral, (b) permit the Lenders,
and any of their officers, employees and agents, to inspect, audit and make extracts from such Credit Parties’ Books and
Records, (c) permit the Lenders, and their officers, employees and agents, to inspect, review, evaluate and make test verifications
and counts of the Retail Inventory and Other Assets with respect to any Liquidation Sale, and (d) cause each Merchant to provide
to the Lenders and their officers, employees and agents the same access to the properties and facilities and Books of such Merchant
that are used in connection with the Liquidation Sale as is provided to Borrowers by such Merchant under the applicable Liquidation
Sales Agreement. If a Default or Event of Default shall have occurred and be continuing, the Credit Parties shall provide such
access at all times and without advance notice. The Credit Parties shall make available to the Lenders and their counsel, as quickly
as is possible under the circumstances, originals or copies of all Books and Records which the Lenders may request. The Credit
Parties shall deliver any document or instrument necessary for the Lenders, as it may from time to time request, to obtain records
from any service bureau or other Person which maintains records for the Credit Parties, and shall maintain duplicate records or
supporting documentation on media, including computer tapes and discs owned by the Credit Parties.

 

    	 	- 46 -	 

     

    

 

2.13        Taxes.

 

(a)          Any
and all payments by any Borrower hereunder or under any Note shall be made, in accordance with this Section 2.13, free and
clear of and without deduction for any and all present or future Taxes, unless a deduction is required by Law. If Borrower shall
be required by Law to deduct any Taxes from or in respect of any sum payable hereunder or under any Note, (i) the sum payable
shall be increased as much as shall be necessary so that after making all required deductions (including deductions applicable
to additional sums payable under this Section 2.13) the Applicable Lender receives an amount equal to the sum it would have
received had no such deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower shall pay the full amount
deducted to the relevant taxing or other authority in accordance with applicable Law. Within thirty (30) days after the date of
any payment of Taxes, Borrower shall furnish to the Applicable Lender the original or a certified copy of a receipt evidencing
payment thereof.

 

(b)          If
a Borrower makes a Tax Payment and the Applicable Lender determines that (i) a Tax Credit is attributable either to an increased
payment of which that Tax Payment forms part or to that Tax Payment and (ii) the Applicable Lender has obtained, utilized and retained
that Tax Credit, the Applicable Lender shall pay an amount to such Borrower which the Applicable Lender determines will leave it
(after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by
such Borrower.

 

(c)          If
any present or future applicable Law, which expression, as used herein, includes statutes, rules and regulations thereunder and
interpretations thereof by any competent court or by any governmental or other regulatory body or official charged with the administration
or the interpretation thereof and requests, directives, instructions and notices at any time or from time to time hereafter made
upon or otherwise issued to the Applicable Lender or the Underlying Issuer by any central bank or other fiscal, monetary or other
authority (whether or not having the force of law), shall:

 

(i)          subject
the Applicable Lender or any Underlying Issuer to any tax, levy, impost, duty, charge, fee, deduction or withholding of any nature
with respect to this Agreement, the other Loan Documents, or any Letters of Credit (other than taxes based upon or measured by
the income or profits of the Applicable Lender or such Underlying Issuer and except where the imposition of such tax, levy, impost,
duty, charge or fee is attributable to a deduction for or on account of Tax required by law to be made by Borrowers or is compensated
for by Section 2.13(a), or

  

(ii)         materially
change the basis of taxation (except for changes in taxes based upon or measured by income or profits of the Applicable Lender
or such Underlying Issuer and except where the change in basis of taxation is attributable to a deduction for or on account of
Tax required by law to be made by Borrowers or is compensated for by Section 2.13(a) of payments to the Applicable Lender
of the principal of or the interest on any Revolving Credit Advances or any other amounts payable to the Applicable Lender or the
Underlying Issuer under this Agreement or any of the other Loan Documents, or

 

    	 	- 47 -	 

     

    

 

(iii)         impose
or increase or render applicable (other than to the extent specifically provided for elsewhere in this Agreement) any special deposit,
reserve, assessment, liquidity, capital adequacy or other similar requirements (whether or not having the force of law) against
assets held by, or deposits in or for the account of, or loans by, or letters of credit issued by, or commitments of an office
of the Applicable Lender or any Underlying Issuer, or

 

(iv)         impose
on the Applicable Lender or any Underlying Issuer any other conditions or requirements with respect to this Agreement, the other
Loan Documents or any Letters of Credit,

 

and the result
of any of the foregoing is:

 

(i)          to
increase the cost to the Applicable Lender or such Underlying Issuer of making, funding, issuing, renewing, extending or maintaining
any of the Revolving Credit Advances or any Letter of Credit, or

 

(ii)         to
reduce the amount of principal, interest, reimbursement Obligations with respect to Letters of Credit or other amount payable to
the Applicable Lender or such Underlying Issuer hereunder on account of such Revolving Credit Advances or Letter of Credit, or

 

(iii)        to
require the Applicable Lender or such Underlying Issuer to make any payment or to forego any interest or repayment of any Letter
of Credit Obligations paid by the Applicable Lender or such Underlying Issuer or other sum payable hereunder, the amount of which
is calculated by reference to the gross amount of any sum receivable or deemed received by the Applicable Lender or such Underlying
Issuer from Borrowers hereunder,

 

then, and in each such case,
Borrowers will, upon demand made by the Applicable Lender or such Underlying Issuer (as the case may be) at any time and from time
to time and as often as the occasion therefor may arise, pay to the Applicable Lender or such Underlying Issuer such additional
amounts as will be sufficient to compensate the Applicable Lender or such Underlying Issuer for such additional cost, reduction,
payment or foregone interest or Letter of Credit Obligations or other sum.

 

(d)         Subject
to Section 2.13(e), Borrowers jointly and severally shall indemnify and, within ten (10) days of Borrowers’ receipt
of the Applicable Lender’s demand therefor, pay the Applicable Lender for the full amount of Taxes (including any Taxes imposed
by any jurisdiction on amounts payable under this Section 2.13) paid by the Applicable Lender, and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally
asserted.

  

(e)          Section
2.13(d) shall not apply to any Tax based upon or measured by the income or profits of the Applicable Lender or to the extent
that any Tax or any liability arising therefrom is compensated for by an increased payment under Section 2.13(a).

 

(f)          Without
prejudice to the survival of any other obligation contained in the Loan Documents, the obligations of a Borrower under this Section
2.13 shall survive the termination of the Loan Documents and the payment in full of all Obligations.

 

    	 	- 48 -	 

     

    

 

2.14        Capital
Requirements. If, after the date hereof, the Lenders determine that (i) the adoption of or change in any Law or guideline regarding
capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental
Authority charged with the administration thereof, or (ii) compliance by the Applicable Lender or its parent bank holding company
with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law),
will have the effect of reducing the return on the Applicable Lender’s or such holding company’s capital as a consequence
of its commitments hereunder to a level below that which the Applicable Lender or such holding company could have achieved but
for such adoption, change, or compliance (taking into consideration the Applicable Lender’s or such holding company’s
then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any
amount deemed by the Applicable Lender to be material, then the Applicable Lender may notify Borrowers thereof. Following receipt
of such notice, Borrowers jointly and severally agree to pay the Lenders on demand the amount of such reduction of return of capital
as and when such reduction is determined, payable within 90 days after presentation by the Applicable Lender of a statement in
the amount and setting forth in reasonable detail the Applicable Lender’s calculation thereof and the assumptions upon which
such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining such amount,
the Applicable Lender may use any reasonable averaging and attribution methods.

 

2.15        Communication
with Accountants and Other Professionals. Borrowers authorize the Applicable Lender to communicate directly with any professionals
retained by any Borrower in connection with any Liquidation Sale, and authorize and shall instruct each of those professionals
to disclose and make available to the Applicable Lender any and all financial statements and other supporting financial documents,
schedules and information relating to such Liquidation Sale, except to the extent that such materials are protected by a legally
recognized privilege held by Borrowers and disclosure thereof to the Applicable Lender cannot be accomplished without causing a
waiver by Borrowers of such privilege.

 

2.16        Designation
of Original Borrower as Borrowers’ Agent.

 

(a)          Each
Borrower (other than Original Borrower) hereby irrevocably designates and appoints Original Borrower as such Borrower’s agent
to obtain Revolving Credit Advances and the issuance of Letters of Credit, the proceeds of which shall be available to each Borrower
for those uses permitted hereunder. Each Borrower shall be obligated to the Applicable Lender on account of Revolving Credit Advances,
or Letters of Credit so made as if made directly by the Applicable Lender to that Borrower, notwithstanding the manner by which
such Revolving Credit Advances are recorded on the books and records of Original Borrower and of any other Borrower.

  

(b)          Each
Borrower recognizes that credit available to it is in excess of and on better terms than it otherwise could obtain on and for its
own account and that one of the reasons therefor is its joining in the credit facilities contemplated herein with all other Borrowers.
Consequently, each Borrower hereby assumes and agrees to fully, faithfully, and punctually discharge all Obligations of all of
Borrowers.

 

(c)          Original
Borrower may act as a conduit for each Borrower on whose behalf Original Borrower has requested a Revolving Credit Advance or the
issuance of a Letter of Credit.

 

(d)          The
proceeds of each Revolving Credit Advance which is requested by Original Borrower shall be deposited into the Disbursement Account
or as otherwise indicated by Original Borrower and agreed to by the Applicable Lender. Original Borrower shall cause the transfer
of the proceeds thereof to the (those) Borrower(s) on whose behalf such Revolving Credit Advance was obtained. the Applicable Lender
shall not have any obligation to see to the application of such proceeds by Original Borrower.

 

    	 	- 49 -	 

     

    

 

2.17        Joint
and Several Liability of Borrowers.

 

(a)          Each
Borrower is accepting joint and several liability hereunder and under the other Loan Documents in consideration of the financial
accommodations to be provided by the Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower
and in consideration of the undertakings of the other Borrowers to accept joint and several liability for the Obligations.

 

(b)          Each
Borrower, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including,
without limitation, any Obligations arising under this Section 2.17), it being the intention of the parties hereto that
all the Obligations shall be the joint and several obligations of each Person composing Borrowers without preferences or distinction
among them.

 

(c)          If
and to the extent that any Borrower shall fail to make any payment with respect to any of the Obligations as and when due or to
perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrower will make such
payment with respect to, or perform, such Obligation.

 

(d)          The
obligations of each Borrower under the provisions of this Section 2.17 constitute the absolute and unconditional, full
recourse obligations of each Borrower enforceable against each such Borrower to the full extent of its properties and assets, irrespective
of the validity, regularity or enforceability of this Agreement or any other circumstances whatsoever.

  

(e)          Except
as otherwise expressly provided in this Agreement, each Borrower hereby waives notice of acceptance of its joint and several liability,
notice of any Revolving Credit Advances or Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence
of any Default, Event of Default, or of any demand for any payment under this Agreement, notice of any action at any time taken
or omitted by the Lenders under or in respect of any of the Obligations, any requirement of diligence or to mitigate damages and,
generally, to the extent permitted by applicable Law, all demands, notices and other formalities of every kind in connection with
this Agreement (except as otherwise provided in this Agreement). Each Borrower hereby assents to, and waives notice of, any extension
or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations,
the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by the Lenders at any time or
times in respect of any default by any Borrower in the performance or satisfaction of any term, covenant, condition or provision
of this Agreement, any and all other indulgences whatsoever by the Lenders in respect of any of the Obligations, and the taking,
addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations or the
addition, substitution or release, in whole or in part, of any Borrower. Without limiting the generality of the foregoing, each
Borrower assents to any other action or delay in acting or failure to act on the part of the Lenders with respect to the failure
by any of Borrowers to comply with any of its respective Obligations, including, without limitation, any failure strictly or diligently
to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder, which might, but
for the provisions of this Section 2.17 afford grounds for terminating, discharging or relieving any Borrower, in whole
or in part, from any of its obligations under this Section 2.17, it being the intention of each Borrower that, so long as
any of the Obligations hereunder remain unsatisfied, the obligations of such Borrower under this Section 2.17 shall not
be discharged except by performance and then only to the extent of such performance. The obligations of each Borrower under this
Section 2.17 shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation,
reconstruction or similar proceeding with respect to any Borrower or the Lenders. The joint and several liability of Borrowers
hereunder shall continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever
in the name, constitution or place of formation of any of the Persons composing Borrowers or the Lenders.

 

    	 	- 50 -	 

     

    

 

(f)          Each
Borrower represents and warrants to the Lenders that such Borrower is currently informed of the financial condition of Borrowers
and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations.
Each Borrower further represents and warrants to the Lenders that such Borrower has read and understands the terms and conditions
of the Loan Documents. Each Borrower hereby covenants that such Borrower will continue to keep informed of Borrowers’ financial
condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment
or nonperformance of the Obligations.

 

(g)          Each
Borrower waives all rights and defenses arising out of an election of remedies by the Lenders, even though that election of remedies,
such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed the Lenders’ rights
of subrogation and reimbursement against such Borrower by the operation of Section 580(d) of the California Code of Civil Procedure
or otherwise.

 

(h)          The
provisions of this Section 2.17 are made for the benefit of the Lenders, and itstheir
respective successors and assigns, and may be enforced by the
Lendersany Lender from time to time against any or all of Borrowers
as often as occasion therefor may arise and without requirement on the part of the Lendersany
Lender, successor or assign first to marshal any of its claims or to exercise any of its rights against any of the
other Borrowers or to exhaust any remedies available to it against any of the other Borrowers or to resort to any other source
or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this Section
2.17 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at
any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored
or returned by the Lenders upon the insolvency, bankruptcy or reorganization of any of the Persons composing Borrowers, or otherwise,
the provisions of this Section 2.17 will forthwith be reinstated in effect, as though such payment had not been made.

 

(i)          Each
Borrower hereby agrees that it will not enforce any of its rights of contribution or subrogation against the other Borrowers with
respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to the Lenders
with respect to any of the Obligations or any collateral security therefor until such time as all of the Obligations have been
paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to the Lenders
hereunder or under any other Loan Documents are hereby expressly made subordinate and junior in right of payment, without limitation
as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations
and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the
laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such Obligations
shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property,
shall be made to any other Borrower therefor.

 

    	 	- 51 -	 

     

    

 

(j)          Each
Borrower hereby agrees that, after the occurrence and during the continuance of any Default or Event of Default, the payment of
any amounts due with respect to the indebtedness owing by any Borrower to any other Borrower is hereby subordinated to the prior
payment in full in cash of the Obligations. Each Borrower hereby agrees that after the occurrence and during the continuance of
any Default or Event of Default, such Borrower will not demand, sue for or otherwise attempt to collect any indebtedness of any
other Borrower owing to such Borrower until the Obligations shall have been paid in full in cash. If, notwithstanding the foregoing
sentence, such Borrower shall collect, enforce or receive any amounts in respect of such indebtedness, such amounts shall be collected,
enforced and received by such Borrower as trustee for the Lenders, and such Borrower shall deliver any such amounts to the Lenders
for application to the Obligations in accordance with Section 2.8.

 

2.18         Joinders.
Borrower may request from time to time that any wholly-owned, special purpose Subsidiary of Great American become a Borrower hereunder
pursuant to a Borrower Joinder for purposes of conducting a Liquidation Sale funded by a Liquidation Borrowing in any jurisdiction
outside of the United States and Canada. The Lenders may, in its sole discretion, determine whether to agree to permit any such
Subsidiary to become a co-Borrower hereunder. The Lenders’ agreement to accept the joinder of any such Subsidiary shall not
waive, diminish, or restrict the Lenders’ discretion hereunder as to whether to extend any credit to such Subsidiary or any
other Borrower. In the event that the Lenders elect to permit such a Subsidiary to become a Borrower hereunder, such Subsidiary
and each other Credit Party shall execute a Borrower Joinder and comply with such other conditions precedent required by the Lenders.
Such conditions precedent may include, without limitation, all in form and substance satisfactory to the Lenders, legal opinions,
consents and approvals from any Governmental Authorities or other Persons, security documents granting the Lenders a Lien on substantially
all of the assets of such Subsidiary, Organizational Documents, financing statements, board resolutions, secretary’s certificates,
and affirmation of each Credit Parties’ obligations under each of the Loan Documents to which each of the foregoing is a
party. Upon execution and delivery, and the Lenders’ acceptance, of a Borrower Joinder and satisfaction of the conditions
precedent set forth by the Lenders in connection with such Borrower Joinder, as determined by the Lenders in their sole discretion,
the Subsidiary party to such Borrower Joinder shall become a “Borrower” hereunder for all purposes, including, without
limitation, with respect to all representations and warranties, covenants and agreements contained herein. Borrowers shall be liable
for all of the Lenders’ costs and expenses, including reasonable attorneys’ fees (including fees of any local counsel
retained by the Applicable Lender) in connection with an actual or proposed Borrower Joinder, even if such Borrower Joinder is
not accepted by the Lenders.

  

2.19        Currency
Matters.

 

(a)          Indemnity.
Dollars (in the case of U.S. Borrowers) and Dollars and CAD (in the case of the Canadian Borrower as applicable) are the currency
of account and payment for each and every sum at any time due from Borrowers hereunder. No payment to the Applicable Lender or
an Underlying Issuer (whether under any judgment or court order or otherwise) on account of any of the Obligations (including
Fees and reimbursements) denominated in a currency other than Dollars or CAD, as applicable, shall discharge the obligation or
liability in respect of which it was made unless and until the Applicable Lender or Underlying Issuer shall have received payment
in full in the Dollars Equivalent of such obligation or liability. To the extent that the amount of any such payment shall, on
actual conversion into Dollars or CAD, as applicable, fall short of such obligation or liability, actual or contingent, the Credit
Parties each hereby jointly and severally agree to indemnify and hold harmless the Applicable Lender and Underlying Issuer, as
the case may be, with respect to the amount of the shortfall, with such indemnity surviving the termination of this Agreement
and any legal proceeding, judgment or court order pursuant to which the original payment was made which resulted in the shortfall.

 

    	 	- 52 -	 

     

    

 

(b)          Fluctuations.
In the event any Letter of Credit or other Obligations are at any time denominated in a currency other than Dollars, then, not
later than 1:00 p.m. (Boston time) on the last Business Day of each month with respect to such Obligations (the “Calculation
Date”), and at such other times as shall be determined by the Applicable Lender in its sole discretion, the Applicable
Lender shall determine the Dollar Equivalent as of such date of such Obligations. The Dollar Equivalent so determined shall become
effective on the first Business Day immediately following such determination (a “Reset Date”) and shall remain
effective until the next succeeding Reset Date. The Applicable Lender shall use its reasonable efforts to provide Borrowers with
notice of such Reset Date and the Dollar Equivalent determined pursuant to the preceding sentence. Without limitation of any of
Borrowers’ other obligations hereunder, BorrowerBorrowers
shall immediately repay any outstanding Obligations if the aggregate amount of the Obligations exceeds the Revolving Loan Ceiling
after any Reset Date.

 

3.          CONDITIONS
PRECEDENT

 

3.1           Conditions
to the Occurrence of the Restatement Date. The Restatement Date shall not occur, until the following conditions have been
satisfied or provided for in a manner satisfactory to the U.S. Lender, in the U.S. Lender’s sole discretion, or waived in
writing by the U.S. Lender.

  

(a)          This
Agreement or counterparts hereof shall have been duly executed by, and delivered to, Borrowers and the U.S. Lender; and the U.S.
Lender shall have received such documents, instruments, agreements, certificates, and legal opinions as the U.S. Lender shall request
in connection with the transactions contemplated by this Agreement and the other Loan Documents, including all those listed in
the Schedule of Documents as required to be delivered on or before the Restatement Date, each in form and substance satisfactory
to the U.S. Lender.

 

(b)          The
representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material
respects.

 

(c)          No
Default or Event of Default shall have occurred and be continuing, nor shall either result from the occurrence of the transactions
contemplated hereby on the Restatement Date.

 

(d)          No
injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the occurrence of the Restatement
Date shall have been issued and remain in force by any Governmental Authority against any Credit Party, the U.S. Lender, or any
of their respective Affiliates.

 

(e)          No
Material Adverse Effect shall have occurred nor shall result from the occurrence of the transactions contemplated hereby on the
Restatement Date.

 

(f)          the
U.S. Lender shall have received (i) satisfactory evidence that Borrower, GAG Inc. and Great American have obtained all required
consents and approvals of all Persons, including all requisite Governmental Authorities, to the execution, delivery and performance
of this Agreement and the other Loan Documents, or (ii) an officer’s certificate in form and substance satisfactory to the
U.S. Lender affirming either that no such consents or approvals are required or that they have been duly received, with copies
provided to the U.S. Lender.

 

    	 	- 53 -	 

     

    

 

(g)          The
organization and capital structure of the Great American Group shall be acceptable to the U.S. Lender in its sole discretion.

 

(h)          No
action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court
or Governmental Authority to enjoin, restrain or prohibit, or to obtain damages in respect of, or which is related to or arises
out of, this Agreement or any of the other Loan Documents or the consummation of the transactions contemplated thereby and which,
in the U.S. Lender’s sole judgment, would make it inadvisable to consummate the transactions contemplated by this Agreement
or any of the other Loan Documents.

 

(i)          the
U.S. Lender shall have received all necessary credit committee and other internal approvals required for their execution and delivery
of the Loan Documents and shall have completed preliminary business, legal, and collateral due diligence, including (i) all requirements
related to the Patriot Act, anti-money laundering rules and regulations, and all other “know your customer” requirements
with respect to each Borrower, GAG Inc., Great American and their respective Affiliates; and (ii) a preliminary collateral audit
and review of each Borrower’s Books and verification of each Borrower’s representations and warranties to the U.S.
Lender, the results of which shall be satisfactory to the U.S. Lender. Each Lender may require each Borrower to provide additional
documents to satisfy its “know your customer” requirements following entry into of this Agreement if the U.S. Lender
is required to do so in order to be in compliance with applicable Law, and each Borrower shall promptly provide such documents
on such request.

 

(j)          the
U.S. Lender shall have received a preliminary reference check with respect to GAG Inc.’s, Great American’s, and each
Borrower’s senior management, the results of which are satisfactory to the U.S. Lender in its sole discretion.

  

(k)          Borrowers
shall have paid all Lender Expenses, including without limitation the fees and expenses of the U.S. Lender’s legal counsel,
incurred in connection with the transactions evidenced by this Agreement and the Existing Credit Agreement.

 

(l)          All
other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered,
executed, or recorded and shall be in form and substance satisfactory to the U.S. Lender.

 

3.2          Conditions
to each Inventory, Other Assets Advance and Letter of Credit. The Applicable Lender shall not make any Revolving Credit Advance
or incur any Letter of Credit Obligations with respect to any Liquidation Sale until the following conditions have been satisfied
or provided for in a manner satisfactory to the Applicable Lender, in the Applicable Lender’s sole discretion, or waived
in writing by the Applicable Lender:

 

(a)          the
Applicable Lender shall have received such documents, information and other materials required to be included with the Liquidation
Loan Proposal and such other documents, information and other materials as the Applicable Lender may reasonably request or are
required hereunder, including executed versions of the Liquidation Sales Agreements, executed agreements establishing the Blocked
Accounts for such Liquidation Sale, copies of any court orders required for any Merchant which is a party to any Insolvency Proceeding
to enter into a Liquidation Sales Agreement and to sell its Inventory and, if applicable, Other Assets in a Liquidation Sale, Collateral
Assignments together with notices to Merchant and any other parties required by the Applicable Lender, all in form and substance
reasonably satisfactory to the Applicable Lender.

 

    	 	- 54 -	 

     

    

 

(b)          The inventory taking
and verification processes conducted by RGIS or another inventory taking company acceptable to the Applicable Lender shall have
been completed in a manner reasonably satisfactory to the Applicable Lender; provided, that, so long as all other conditions precedent
are satisfied, a portion of a Revolving Credit Advance may be made pursuant to Section 2.1(fh)(iii)
before the final inventory count has been completed.

 

(c)          the
Applicable Lender shall have received evidence reasonably satisfactory to the Applicable Lender that licenses (including going
out of business sale licenses, if necessary), consents and acknowledgments have been obtained, and filings have been made (in each
case to the extent applicable), or if such licenses, consents and acknowledgments have not been obtained or such filings have not
been made, then such licenses, consents and acknowledgments will be obtained and such filings will be made at or before the time
they are required, from all Persons whose licenses, consents and acknowledgments or with whom filings may be required, including
all requisite Governmental Authorities, with respect to the terms and to the execution, delivery and performance of the Liquidation
Sales Agreements, and the performance of this Agreement and the other Loan Documents with respect thereto.

 

(d)          the
Applicable Lender shall have received evidence satisfactory to it that (i) all Liens other than Permitted Encumbrances acceptable
to the Applicable Lender with respect to the applicable Liquidation Sale, if any, and other than those of the Applicable Lender,
upon any of the Collateral with respect to such Liquidation Sale, have been terminated, released, or assigned to a Borrower or
the Applicable Lender, and (ii) in the event there are no Liens on the Retail Inventory and Other Assets, Borrowers shall have
been granted a security interest in such Retail Inventory and Other Assets to secure the obligations of the Merchant under the
Liquidation Sales Agreements. In either case, all such Liens held by any Borrower shall have been assigned to the Applicable Lender.

  

(e)          the
Applicable Lender shall have received evidence satisfactory to it that the “Merchandise,” as defined in the applicable
Liquidation Sales Agreement, is free of all Liens, other than those of a Borrower or the Applicable Lender or Permitted Encumbrances
acceptable to the Applicable Lender.

 

(f)          No
action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any Governmental
Authority to enjoin, restrain or prohibit, or to obtain damages in respect of, or which is related to or arises out of, the Liquidation
Sales Agreements or the consummation of the transactions contemplated thereby and which, in the Applicable Lender’s sole
judgment, would make it inadvisable to consummate the transactions contemplated thereby or by this Agreement or any of the other
Loan Documents.

 

(g)          Borrowers
shall have deposited the Borrower Equity Amount with respect to such Liquidation Sale in the Disbursement Account and the Applicable
Lender shall have received evidence satisfactory to it that any required Expense L/C or other letter of credit required under the
applicable Liquidation Sales Agreement in respect to unpaid installments of the Guaranteed Amount or Purchase Price have been issued
and remains outstanding or arranged to be issued. If the Applicable Lender is incurring Letter of Credit Obligations with respect
to the Guaranteed Amount or Purchase Price with respect to such Liquidation Sale, the Applicable Lender shall have received from
Borrowers cash collateral or a letter of credit in form, substance and issued by an issuer satisfactory to the Applicable Lender,
in either case in an amount equal to the Borrower Equity Amount with respect to such Liquidation Sale.

 

    	 	- 55 -	 

     

    

 

(h)          the
Applicable Lender shall be satisfied that it shall have received a duly enforceable and perfected first priority Lien on all property
and assets, and the products and proceeds thereof, of each Borrower, that the Applicable Lender need not qualify to do business
in any jurisdiction in order to exercise any of its rights and remedies against any Borrower in any such jurisdiction or be required
to obtain any other license, consent, or other approval or incur any Tax, liability, or expense. Each Lender shall further be satisfied
with the Laws, practice, and procedures of the Governmental Authorities in such jurisdiction and there shall have not occurred,
or be reasonably likely to occur, any material adverse event or circumstance effecting the political environment or capital markets
in such jurisdiction.

 

(i)          With
respect to any Liquidation Borrowing financing any portion of a Liquidation Sale in any jurisdiction other than the United States
or Canada, all documents, certificates, legal opinions, filings, and other instruments required by the Applicable Lender to be
executed and delivered shall have been executed and delivered, in form and substance satisfactory to the Applicable Lender, and,
if required by the Applicable Lender, a wholly-owned Subsidiary of Great American, in form and substance satisfactory to the Applicable
Lender, shall have been formed to conduct such Liquidation Sale and shall have become a Borrower hereunder pursuant to a Borrower
Joinder.

 

3.3          Further
Conditions to Each Liquidation Borrowing. The Applicable Lender shall not be obligated to fund any Revolving Credit Advance
(including any Inventory Advance or Other Assets Advance) or incur any Letter of Credit Obligations if, as of the date thereof:

 

(a)          any
representation or warranty by any Credit Party contained herein or in any of the other Loan Documents shall be untrue or incorrect
in any material respect as of such date, except to the extent that such representation or warranty expressly relates to an earlier
date and except for changes therein expressly permitted or expressly contemplated by this Agreement; or

  

(b)          any
event or circumstance having a Material Adverse Effect shall have occurred since the date hereof and be continuing; or

 

(c)          any Default or Event
of Default shall have occurred and be continuing or would result after giving effect to any Revolving Credit Advance or the incurrence
of any Letter of Credit Obligations; provided that, if the Default or Event of Default is a payment default, a Default or
an Event of Default with respect to Sections 4.20, 6.10 or 7.2 of this Agreement, a Default or an Event of
Default with respect to the occurrence of an event that has a Material Adverse Effect, in any case, solely with respect to any
particular Liquidation Borrowing, or any other Default or Event of Default solely with respect to a particular Liquidation Borrowing
(other than a Default or an Event of Default that is the result of any fraud, acts in bad faith or intentional breach by any Borrower),
the Applicable Lender shall not be obligated to fund any Revolving Credit Advances or incur any Letter of Credit Obligations only
with respect to such Liquidation Borrowing; or

 

(d)          after
giving effect to any Revolving Credit Advance or the issuance of any Letter of Credit, the outstanding principal amount of the
Revolving Loan would exceed the Revolving Loan Ceiling.

 

    	 	- 56 -	 

     

    

 

The request and acceptance by any Borrower
of the proceeds of any Revolving Credit Advance or the incurrence by the Applicable Lender of any Letter of Credit Obligations,
in each case, shall be deemed to constitute, as of the date of such request or acceptance, (i) a representation and warranty by
Borrowers that the conditions in this Section 3.3 have been satisfied and (ii) a reaffirmation by Borrowers of the granting
and continuance of the Lenders’ Liens pursuant to the Collateral Documents.

 

4.          REPRESENTATIONS
AND WARRANTIES

 

To induce the Lenders
to make, in itstheir sole discretion and
with no obligation to do so, the Revolving Credit Advances and incur Letter of Credit Obligations, each Borrower makes the following
representations and warranties to the Lenders, each and all of which shall survive the execution and delivery of this Agreement.

 

4.1           Limited
Liability Company Existence; Compliance with Law. Borrowers’ exact legal name is that indicated on the Perfection Certificate
and on the signature page hereof or, as applicable, the signature page to a Borrower Joinder. Original Borrower is a limited liability
company duly organized, in good standing, and validly existing under the laws of its jurisdiction of formation. The Canadian Borrower
is an unlimited company, duly organized, in good standing, and validly existing under the laws of its jurisdiction of formation.
Each other Borrower which becomes party hereto pursuant to a Borrower Joinder has the corporate, company, or partnership form identified
in the Borrower Joinder applicable to it and is duly organized, in good standing, and validly existing under the laws of its jurisdiction
of formation. Each Borrower (a) is duly qualified to conduct business in each other jurisdiction where its ownership or lease of
property or the conduct of its business requires such qualification; (b) has the requisite power and authority and the legal right
to own, pledge, mortgage or otherwise encumber and operate its properties, to lease the property it operates under lease and to
conduct its business as now, heretofore and proposed to be conducted; (c) has all licenses, permits, consents or approvals from
or by, and has made all filings with, and has given all notices to, all Governmental Authorities having jurisdiction, to the extent
required for such ownership, operation and conduct; (d) is in compliance with its Organizational Documents; and (e) is in compliance
with all applicable provisions of Law, except where the failure to comply, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

  

4.2           Executive
Offices; FEIN; Organizational Number. The current location of Original Borrower’s chief executive office and
principal place of business is 2186021255
Burbank Blvd.,Boulevard,
 Suite 300 South400,
Woodland Hills, CA 91367 and Original Borrower has not had any other chief executive
office or principal place of business. Original Borrower’s federal employer identification number is 26-3540693 and its
organizational number given to it by its jurisdiction of formation is 200828810099. The location of Canadian Borrower’s
chief executive office and principal place of business as of the Sixth Amendment Effective Date is 2186021255
Burbank Blvd.,Boulevard, Suite
300 South400, Woodland Hills, CA 91367,
and Canadian Borrower has not had any other chief executive office or principal place of business. Canadian Borrower’s organizational
number given to it by its jurisdiction of formation is BC1026199. All information set forth on the Perfection Certificate pertaining
to each Borrower is accurate and complete as of the date hereof; and there has been no change in any of such information from
the date on which the Perfection Certificate was signed by such Borrower to the Restatement Date.

 

    	 	- 57 -	 

     

    

 

4.3           Company
Power, Authorization, Enforceable Obligations. The execution, delivery and performance by each Borrower of the Loan Documents
to which it is a party and the creation of all Liens provided for therein: (a) are within such Borrower’s corporate (or equivalent
company) authority; (b) have been duly authorized by all necessary or proper company or corporate action; (c) do not contravene
any provision of such Borrower’s Organizational Documents; (d) do not violate any Law; (e) do not conflict with or result
in the breach or termination of, constitute a default under or accelerate or permit the acceleration of any performance required
by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Borrower is a party or by which
such Borrower or any of its property is bound; (f) do not result in the creation or imposition of any Lien upon any of the property
of such Borrower other than those in favor of the Lenders pursuant to the Loan Documents; and (g) do not require the consent or
approval of any Governmental Authority or any other Person, except those, if any, that have been received and except for recordings
and filings by the Lenders in connection with the Liens granted to the Lenders under any of the Loan Documents, all of which will
have been duly obtained, made or complied with prior to the Restatement Date. Each Loan Document to which a Borrower is a party
constitutes a legal, valid and binding obligation of such Borrower enforceable against it in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to its enforceability, and, without prejudice to the generality of the foregoing,
each Collateral Document to which a Borrower is a party creates the security interests which it purports to create, those security
interests are valid and effective and the security created thereby has or will have first ranking priority and shall not be subject
to any prior ranking or pari passu ranking security interest. Further, the choice of governing law of the Loan Documents
will be recognized and enforced in each Borrower’s Relevant Jurisdiction and a judgment obtained in relation to a Loan Document
in the jurisdiction of the governing law of that Loan Document will be recognized and enforced in each Borrower’s Relevant
Jurisdiction.

 

4.4           Material
Adverse Effect. All financial statements relating to Borrowers, GAG Inc., and Great American that have been delivered by or
on behalf of Borrowers pursuant to Article 5 hereof have been prepared in accordance with GAAP (except, in the case of unaudited
financial statements, for the lack of footnotes and being subject to normal year-end audit adjustments) and present fairly in all
material respects Borrowers’, GAG Inc.’s, or Great American’s (as applicable) financial condition as of the date
thereof and results of operations for the period then ended. No event has occurred, which alone or together with other events,
could reasonably be expected to have a Material Adverse Effect.

  

4.5           Agreements
Entered Into by Borrowers. (a) No Borrower has entered into any contract, instrument, or other agreement other than this Agreement,
the other Loan Documents, any Liquidation Sales Agreements, any Liquidator Joint Venture Agreements, and any other agreement entered
into in the ordinary course of business and necessary to the performance of the foregoing agreements; and (b) no Borrower is in
default and, except as previously disclosed to the Lenders in writing, to Borrower’s knowledge no third party is in default
under any of such agreements.

 

4.6           Ownership
of Property; Liens. No Borrower owns any property other than (i) the rights under the agreements described in Section
4.5(a) and (ii) the Retail Inventory and/or Other Assets purchased pursuant to a Purchase Agreement or an Agency Agreement
under clauses thereof that may permit a Borrower to retain any unsold Retail Inventory or other property of a Merchant at the conclusion
of any Liquidation Sale, if any. Each applicable Borrower has good and marketable title to such property, and none of such property
is subject to any Liens other than Permitted Encumbrances. Each Borrower has disclosed in writing to the Lenders any Retail Inventory,
Other Assets, or other Collateral that is known by such Borrower subject to a retention of title claim. In addition, there are
no facts, circumstances or conditions known to any Borrower that may result in any Liens other than those in favor of the Lenders
pursuant to the Loan Documents or Liens in relation to retention of title claims disclosed to the Lenders in writing. the Lenders’
Liens against the Collateral are validly created, perfected, and first priority Liens, subject only to Permitted Encumbrances.

 

4.7           Operations
of Borrower. Each Borrower has no employees and operates its business solely through services provided by Great American.

 

    	 	- 58 -	 

     

    

 

4.8           Ventures,
Subsidiaries and Affiliates, and Indebtedness.

 

(a)          Other
than Credit Parties which may become party hereto after the Restatement Date pursuant to a Borrower Joinder, no Borrower has any
Subsidiaries, is engaged in any joint venture or partnership with any other Person (other than pursuant to any Liquidator Joint
Venture Agreement) and is not an Affiliate of any other Person except Great American and their respective Affiliates listed on
Schedule 4.8, and those natural Persons who may be deemed Affiliates by being managers of the Affiliates listed on Schedule
4.8 (such Persons are not required to be listed on such Schedule).

 

(b)          Great
American is a wholly-owned Subsidiary of GAG Inc. Great American is the sole member of Original Borrower. Each Borrower is a wholly-owned
Subsidiary of Great American; provided, however, notwithstanding the foregoing, B. Riley shall be permitted to own
up to 1,000 non-voting preferred shares of the Capital Stock of Retail.

 

(c)          No
Borrower has any outstanding Indebtedness for borrowed money other than as may be outstanding or permitted under this Agreement
from time to time and has no Liens on its assets other than as may be outstanding or permitted under this Agreement. Great American
Group CS, LLC, Great American and any of their respective Affiliates, as applicable, has repaid and satisfied all Indebtedness
and other obligations owed by it to Credit Suisse, all loan and security documents entered into between Great American CS LLC,
Great American, and any of their respective Affiliates with Credit Suisse have terminated and are of no further force or effect,
and all Liens granted by any of the foregoing in favor of Credit Suisse have been terminated and released.

  

4.9           Requirements
of Law. No Borrower is an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company
Act of 1940 as amended. No Borrower is subject to regulation under the Federal Power Act, or any other federal, state, national
or local statute that restricts or limits its ability to incur indebtedness or to perform its obligations hereunder. The making
of Revolving Credit Advances by the Lenders to Borrowers, the incurrence of the Letter of Credit Obligations on behalf of Borrowers,
the application of the proceeds thereof and repayment thereof and the consummation of the Liquidation Sales will not violate any
provision of any such statute or any rule, regulation or order issued by the Securities and Exchange Commission or any other Governmental
Authority in any jurisdiction to which a Borrower may be subject. Each Borrower is in compliance with, and shall hereafter comply
with and use its assets in compliance with, all requirements of applicable Law except where the failure of such compliance will
not be reasonably likely to result in a Material Adverse Effect. No Borrower has received any notice of any violation of any requirement
of Law (other than of a violation which could not be reasonably likely to result in a Material Adverse Effect).

 

4.10         Margin
Regulations. No Borrower is engaged, nor will any Borrower engage, principally or as one of its important activities, in the
business of extending credit for the purpose of “purchasing” or “carrying” any “margin security”
as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect (such
securities being referred to herein as “Margin Stock”). No Borrower owns any Margin Stock, and none of the
proceeds of the Revolving Credit Advances, the Letters of Credit, or other extensions of credit under this Agreement will be used,
directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any
indebtedness which was originally incurred to purchase or carry any Margin Stock or for any other purpose which might cause any
of the Revolving Credit Advances, Letters of Credit, or other extensions of credit under this Agreement to be considered a “purpose
credit” within the meaning of Regulation T, U or X of the Federal Reserve Board. No Borrower will take or permit to be taken
any action which might cause any Loan Document to violate any regulation of the Federal Reserve Board.

 

    	 	- 59 -	 

     

    

 

4.11        Taxes.
All tax returns, reports and statements, including information returns, required by any Governmental Authority to be filed by any
Borrower have been filed with the appropriate Governmental Authority and all Charges have been paid prior to the date on which
any fine, penalty, interest or late charge may be added thereto for nonpayment thereof (or any such fine, penalty, interest, late
charge or loss has been paid). There are no assessments or threatened assessments by the IRS or any other applicable Government
Authority currently outstanding. No Borrower has executed or filed with the IRS or any other Governmental Authority any agreement
or other document extending, or having the effect of extending, the period for assessment or collection-of any Charges. No Borrower
or any of their predecessors is liable for any Charges: (a) under any agreement (including any tax sharing agreements) or (b) to
Borrowers’ knowledge, as a transferee.

 

4.12        ERISA
and Canadian Plans.

 

(a)          No
Borrower has any employee benefit plans as defined in Section 3(3) of ERISA. No Borrower or any ERISA Affiliate has taken,
or failed to take, any action that has subjected or would subject any Borrower to any liability with respect to any employee benefit
plan.

  

(b)          No
Borrower or any of its Subsidiaries maintains, contributes, sponsors, administers or has liability with respect to any Canadian
Pension Plan or Canadian Benefit Plan.

 

4.13        No
Litigation. No action, claim, lawsuit, demand, investigation or proceeding is now pending or, to Borrowers’ knowledge,
threatened against any Borrower, before any Governmental Authority or before any arbitrator or panel of arbitrators (collectively,
“Litigation”) that challenges any Borrower’s right or power to enter into or perform any of its obligations
under the Loan Documents to which it is a party, or the validity or enforceability of any Loan Document or any action taken thereunder.
There is no Litigation pending or, to Borrowers’ knowledge, threatened that seeks damages or injunctive relief or alleges
criminal misconduct of any Borrower.

 

4.14        Brokers.
No broker or finder acting on behalf of any Borrower brought about the obtaining, making or closing of the Revolving Loan, and
no Borrower has any obligation to any Person in respect of any finder’s or brokerage fees in connection therewith.

 

4.15        Full
Disclosure. No information contained in this Agreement, any of the other Loan Documents, any financial statement, or any other
reports from time to time delivered hereunder or any written statement furnished by or on behalf of any Borrower to the Lenders
pursuant to the terms of this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.

 

4.16        Environmental
Matters.

 

(a)          (i)
No Borrower is involved in operations nor does it know of any facts, circumstances or conditions, including any Releases of Hazardous
Materials, that are likely to result in any Environmental Liabilities of any Borrower; (ii) no notice has been received by any
Borrower identifying it as a “potentially responsible party” or requesting information under CERCLA or analogous state
statutes, and to Borrowers’ knowledge, there are no facts, circumstances or conditions that may result in any Borrower being
identified as a “potentially responsible party” under CERCLA or analogous state statutes; and (iii) Borrowers have
provided to the Lenders copies of all existing environmental reports, reviews and audits and all written information, if any, pertaining
to actual or potential Environmental Liabilities.

 

    	 	- 60 -	 

     

    

 

(b)          Each
Borrower hereby acknowledges and agrees that the Applicable Lender (i) is not now, and has not ever been, in control of any of
such Borrower’s affairs, and (ii) does not, other than in connection with the Applicable Lender exercising certain of its
rights under certain of the Loan Documents after an Event of Default, have the capacity through the provisions of the Loan Documents
or otherwise to influence such Borrower’s conduct with respect to the ownership, operation or management of its compliance
with Environmental Laws or Environmental Permits.

 

4.17        Deposit
and Disbursement Accounts. Schedule 4.17 lists all banks and other financial institutions at which each Borrower maintains
deposits and/or other accounts as of the Restatement Date, including any DDAs and any Disbursement Accounts, and such Schedule
correctly identifies the name, address and telephone number of each depository, the name in which the account is held, a description
of the purpose of the account, and the complete account number.

  

4.18        Government
Contracts. None of the Liquidation Sales Agreements or Purchase Agreements is or will be subject to the Federal Assignment
of Claims Act, as amended (31 U.S.C. Section 3727), the Financial Administration Act (Canada) or any similar Law of any
Governmental Authority.

 

4.19        Solvency;
Fraudulent Transfer.

 

(a)          Both
before and after giving effect to (i) the Revolving Credit Advances and Letter of Credit Obligations to be made or extended on
the Restatement Date or such other date as Revolving Credit Advances or Letter of Credit Obligations requested hereunder are made
or extended, (ii) the disbursement of the proceeds of such Revolving Credit Advances or Letters of Credit pursuant to the instructions
of any Borrower, (iii) any Liquidation Sale, and (iv) the payment and accrual of all transaction costs in connection with the foregoing,
each Credit Party is Solvent.

 

(b)          No
transfer of property is being made by any Credit Party and no obligation is being incurred by any Credit Party in connection with
the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either
present or future creditors of any Credit Party.

 

(c)          No
transfer of property is being made by any Credit Party without receiving a reasonably equivalent value in exchange for such transfer
and each Credit Party’s remaining assets are not unreasonably small in relation to its business.

 

4.20        Liquidation
Sales Agreements. Borrowers have delivered to the Lenders complete and correct copies of all existing Liquidation Sales Agreements
and Liquidator Joint Venture Agreements (including all schedules, exhibits, amendments, supplements, modifications, assignments
and all other documents delivered pursuant thereto or in connection therewith). No Borrower nor, to Borrowers’ knowledge,
any other Person party thereto is in default in the performance or compliance with any provisions thereof. All Liquidation Sales
Agreements and Liquidator Joint Venture Agreements comply with, and all Liquidation Sales and purchases made pursuant thereto or
pursuant to any Purchase Agreement prior to such time have been consummated in accordance with, all applicable Laws of all applicable
Governmental Authorities. All requisite approvals by Governmental Authorities having jurisdiction over Borrower (or any Liquidator
JV) and, to Borrowers’ knowledge, Merchants and other Persons referenced therein, with respect to the transactions contemplated
by such Liquidation Sales Agreements or Liquidator Joint Venture Agreements have been obtained, and no such approvals impose any
conditions to the consummation of the transactions contemplated by such Liquidation Sales Agreements or Liquidator Joint Venture
Agreements or to the conduct by any Borrower of its business thereafter. To Borrowers’ knowledge, none of the Merchant’s
representations or warranties in such Liquidation Sales Agreements contain any untrue statement of a material fact or omit any
fact necessary to make the statements therein not misleading. Each of the representations and warranties given by any Borrower
in such Liquidation Sales Agreements is true and correct in all material respects. Notwithstanding anything contained in such Liquidation
Sales Agreements to the contrary, such representations and warranties of Borrower are incorporated into this Agreement by this
Section 4.20 and shall, solely for purposes of this Agreement and the benefit of the Lenders, survive the consummation of
the related Liquidation Sale, purchase by a Borrower, or other transactions contemplated therein.

 

    	 	- 61 -	 

     

    

 

4.21         Patriot
Act, Foreign Assets, Etc. No BorrowerCredit
Party or any of its Subsidiaries is in violation of any Sanctions and no Credit Party
or any of its Subsidiaries is (nor will it be) a Person with whom the Applicable Lender is restricted from doing business
under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department
of Treasury of the United States of AmericaOFAC (including, those persons
named on the OFAC’s specially designated and Blocked Persons list), the federal government of Canada or under any similar
statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten To Commit, or Support, or Terrorism) or other governmental action; no BorrowerCredit
Party or any of its Subsidiaries is knowingly engaging in and (shall not knowingly
engage in) any dealings or  transactions or otherwise associated with such persons. In
addition, each Borrower hereby agrees to provide the Applicable Lender with any additional information that the Applicable Lender
deems reasonable and necessary from time to time in connection with the transactions contemplated by this Agreement in order to
assure compliance with all applicable Laws concerning money laundering and similar activities. None of the requesting or borrowing
of any Revolving Credit Advances, the requesting or issuance, extension or renewal of any Letters of Credit or the use of the
proceeds of any thereof will violate any Anti-Corruption Laws, Anti-Money Laundering Laws, Sanctions,
the Trading With the Enemy Act (50 U.S.C. §1 et seq., as amended) (the “Trading With the Enemy Act”)
or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
(the “Foreign Assets Control Regulations”) or any enabling legislation or executive order relating thereto
(which for the avoidance of doubt shall include, but shall not be limited to (a) Executive Order 13224 of September 21, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001))
(the “Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)). Furthermore, none of BorrowersCredit
Parties  nor any of their Subsidiaries,
nor, to the knowledge of such Credit Party, any director, officer, employee, agent or other
AffiliatesAffiliate of such Credit Party or such Subsidiary (a) is
or will become a “blocked person” as described in the Executive Order, the Trading
With the Enemy Act or the Foreign Assets Control RegulationsSanctioned
Person  or (ba
Sanctioned Entity, (b) has or will have any assets located in Sanctioned Entities, or (c) engages or will engage in
any dealings or  transactions, or be otherwise
be associated, with any
such “blocked person”.Sanctioned Persons or Sanctioned
Entities. None of the transactions contemplated by the Loan Documents violates the Canadian Economic Sanctions and
Export Control Laws. Furthermore, no Credit Party nor any Subsidiary thereof is a Canadian Blocked Person and, to the actual knowledge
of each Credit Party, no Credit Party or Subsidiary thereof engages in any dealings or transactions, or is otherwise associated,
with a Canadian Blocked Person.

 

4.22         No
Events of Default. As of any date of determination, both before and after giving effect to the making of any Revolving Credit
Advances or the issuance of any Letters of Credit, there are no Events of Default.

 

    	 	- 62 -	 

     

    

 

4.23         Use
of Proceeds. The proceeds of any Revolving Credit Advances  or any Letter of Credit are neither
intended or anticipated to be used nor have been used in any way which would cause a breach of Section 2.2,
Section 7.24 or otherwise result in an Event of Default.

 

4.24         Investments.
Other than Investments made by a Borrower in connection with any Liquidation Sale, no Borrower has any Investments or made any
agreements or other legally binding commitments to invest in any Person.

 

4.25         Indebtedness.
Other than the Obligations, the Indebtedness permitted in Section 7.4 and any obligations in respect to Liquidation Sale
Agreements or Liquidator Joint Venture Agreements, no Borrower has any Indebtedness.

 

4.26         GAG
Purchase Agreement. All of GAG Inc.’s, Great American’s, and any of their respective Affiliates’ obligations,
including payment of all fees and other amounts, under the GAG Purchase Agreement, and any other document or agreement executed
in connection therewith, have been satisfied in full as of the Restatement Date. There is no default or breach by any Person party
to the GAG Purchase Agreement of any terms, conditions, or provisions of the GAG Purchase Agreement. The GAG Purchase Agreement
has not been amended, waived, supplemented, terminated, or restated since July 28, 2009.

 

5.          FINANCIAL
STATEMENTS AND INFORMATION

 

5.1           Reports
and Notices. Each Borrower covenants and agrees that, from and after the Closing Date and until the Termination Date, it shall
deliver to the Applicable Lender (a) concurrently with the delivery of such information to the applicable Merchant, copies of financial
statements, notices, projections and other financial information at the times and in the manner set forth in the Liquidation Sales
Agreements with such Merchant, (b) promptly after receipt by such Borrower, copies of any notices, financial statements, or other
reports from any Merchant under or relating to the Liquidation Sales Agreements, (c) copies of any notices delivered to such Borrower
under any Liquidator Joint Venture Agreement or any other agreement executed in connection therewith, and (d) copies of any motion
filed in connection with any bankruptcy case involving a Merchant or, if relevant, order of any court hearing such case (including,
without limitation, the court order (if applicable) approving the retention of such Borrower or a Liquidator JV as the liquidator
and the terms of such retention) concerning the Liquidation Sale and/or any transactions contemplated under any Liquidation Sale
Agreement.

 

5.2           Reports
Relating to Liquidation Sales. In addition, each Borrower shall provide to the Applicable Lender the information with respect
to each Liquidation Sale described on Schedule 5.2.

 

5.3           Financial
Reports and SEC Filings.

 

 (a)          As
soon as available, but in any event within ninety (90) days after the end of each Fiscal year, Borrowers shall deliver to the Lenders,
or cause GAG Inc. to deliver to the Lenders, (i) Consolidated and consolidating financial statements of GAG Inc. and its Subsidiaries
for each such Fiscal year, audited by independent certified public accountants selected by GAG Inc. and reasonably acceptable to
the Lenders and certified, without any qualifications, by such accountants to have been prepared in accordance with GAAP (such
audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’
letter to management) together with a certificate of such accountants addressed to the Lenders stating that such accountants do
not have knowledge of the existence of any Default or Event of Default and (ii) the annual 10-K reports (or any successor form)
of GAG Inc. filed with the SEC or any other applicable Governmental Authority.

 

    	 	- 63 -	 

     

    

 

(b)          As
soon as practicable, but in any event not later than fifty (50) days after the end of each of the first three Fiscal quarters of
each Fiscal year of GAG Inc., Borrowers shall deliver to the Lenders, or cause GAG Inc. to deliver to the Lenders, (i) copies of
the unaudited consolidated balance sheet of GAG Inc. and its Subsidiaries as at the end of such quarter, and the related consolidated
statement of operations for such quarter and for the portion of GAG Inc.’s Fiscal year then elapsed, and the related consolidated
statement of cash flow for such quarter and for the portion of GAG Inc.’s Fiscal year then elapsed, all in reasonable detail
and prepared in accordance with GAAP (subject to year-end adjustments and except for the absence of notes), and (ii) the quarterly
10-Q (or any successor form) reports of GAG Inc. filed with the SEC.

 

(c)          As
soon as available, but in any event within 15 days after the end of each month
during each of GAG Inc.’s Fiscal years, Borrowers shall deliver to the Lenders, or cause GAG Inc.Upon
the Lenders’ request (which such
request shall not require delivery earlier than thirty-five (35) days
after the end of the applicable Fiscal month of GAG Inc.), Borrowers shall deliver to the Lenders, or cause GAG Inc. to deliver
to the Lenders, copies of the unaudited consolidated balance sheet of GAG Inc. and its Subsidiaries as at the end of any Fiscal
month of GAG Inc., and the related consolidated statement of operations for such month and for the portion of GAG Inc.’s
Fiscal year then elapsed, and the related consolidated statement of cash flow for such month and for the portion of GAG Inc.’s
Fiscal year then elapsed, all in reasonable detail and prepared in accordance with GAAP (subject to year-end adjustments and except
for the absence of notes).

 

(d)          Simultaneously
with the delivery of financial statements to the Lenders hereunder pursuant to
clauses (a), (b) and (c) above, Borrowers shall deliver to the Lenders, or cause GAG Inc. to deliver, each of the
following (which may be prepared by GAG Inc. internally):

 

(i)          a GAG Inc. prepared
Consolidated and individual balance sheet, income statement, and statement of cash flow covering GAG Inc.’s and its Subsidiaries’
operations during such period and comparing the same period during the prior year on a Consolidated, consolidating and individual
basis;

 

(ii)         a
certificate signed by the chief financial officer of GAG Inc. to the effect that:

 

(A)         the
financial statements delivered hereunder have been prepared in accordance with GAAP (except for the lack of footnotes and being
subject to Fiscal year-end audit adjustments) and fairly present in all material respects the financial condition of GAG Inc. and
its Subsidiaries,

 

(B)         the
representations and warranties of each Borrower contained in this Agreement and the other Loan Documents, of GA Asset Advisors
in the GA Asset Advisors Guaranty to the extent the GA Asset Advisors Guaranty is in effect, and of GAG Inc. and Great American
contained in the Great American Guaranty, are true and correct in all material respects on and as of the date of such certificate,
as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier
date), and

  

(C)         there
does not exist any condition or event that constitutes a Default or Event of Default (or, to the extent of any non-compliance,
describing such non-compliance as to which he or she may have knowledge and what action Borrowers have taken, are taking, or propose
to take with respect thereto).

 

    	 	- 64 -	 

     

    

 

(e)          Promptly
after the same become publicly available, Borrowers shall deliver to the Lenders, or cause GAG Inc. to deliver to the Lenders,
copies of all periodic and other reports, proxy statements and other materials filed by GAG Inc. or any of its Subsidiaries with
the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange,
as the case may be.

 

(f)          Promptly
after the sending or filing thereof, Borrowers shall deliver to the Lenders, or cause GAG Inc. to deliver to the Lenders, copies
of all quarterly and annual reports and proxy solicitations that GAG Inc. sends to its public security holders generally, and copies
of all reports on form 8-K (or its equivalent) and registration statements for the public offering (of securities that GAG Inc.
or any of its Subsidiaries files with the SEC or any national securities exchange).

 

(g)          Copies
of reports and financial statements filed by GAG Inc. with the SEC and required to be delivered to the Lenders under this Section
5.3 by Borrowers shall be deemed to have been delivered on the date on which GAG Inc. causes such reports, or reports containing
such financial statements, to be posted on the Internet at www.sec.gov or at such other website identified by Borrowers in a notice
to the Lenders and that is accessible by the Lenders without charge.

 

(h)          Upon
the Lenders’ request, Borrowers shall deliver evidence in form and substance satisfactory to the Lenders of their compliance
with Section 6.15 hereof.

 

6.          AFFIRMATIVE
COVENANTS

 

Each Borrower agrees that
from and after the date hereof and until the Termination Date, Borrowers shall comply with each of the following covenants:

 

6.1           Maintenance
of Existence and Conduct of Business. Each Borrower shall: (a) do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence as in effect on the Restatement Date or the date of any Borrower Joinder
with respect to any Borrower not party hereto on the Restatement Date, and its rights and franchises necessary to the proper conduct
of its business; (b) continue to conduct its business solely for the purpose of conducting Liquidation Sales or consummating purchases
under Liquidation Sales Agreements; (c) at all times maintain, preserve and protect all of its assets and properties used or useful
in the conduct of its business, and keep the same in good repair, working order and condition in all material respects (taking
into consideration ordinary wear and tear); and (d) transact business only in its legal name. Each Borrower shall cause any Liquidator
JV to comply with the foregoing from the date of any Liquidation Joint Venture Agreement.

 

6.2           Payment
of Obligations.

 

 (a)          Subject
to Section 6.2(b), Borrowers shall, or if applicable shall cause any Liquidator JV to, pay and discharge or cause to be
paid and discharged promptly all Charges and lawful claims for labor, materials, supplies and services or otherwise, before any
thereof shall become past due.

 

    	 	- 65 -	 

     

    

 

(b)          Borrowers
may in good faith contest, by appropriate proceedings, the validity or amount of any Charges or claims described in Section
6.2(a); provided, that (a) at the time of commencement of any such contest no Default or Event of Default shall have
occurred and be continuing, (b) adequate reserves with respect to such contest are maintained on the books of Borrowers, in accordance
with GAAP, (c) such contest is maintained and prosecuted continuously and with diligence and operates to suspend collection or
enforcement of such Charges or claims or any Lien in respect thereof, (d) none of the Collateral becomes subject to forfeiture
or loss as a result of such contest, (e) no Lien shall be imposed to secure payment of such Charges, (f) Borrowers shall promptly
pay or discharge such contested Charges or claims and all additional charges, interest, penalties and expenses, if any, and shall
deliver to the Lenders evidence acceptable to the Lenders of such compliance, payment or discharge, if such contest is terminated
or discontinued adversely to Borrowers or the conditions set forth in this Section 6.2(b) are no longer met, and (g) the
Lenders have not advised Borrowers in writing that the Lenders reasonably believe that nonpayment or nondischarge thereof could
have or result in a Material Adverse Effect.

 

6.3          Books
and Records. Borrowers shall keep adequate Books and Records with respect to their business activities (which includes the
business activities of any Liquidator JV), including, without limitation, Books and Records relating to all Expenses, in which
proper entries, reflecting all financial transactions, are made in accordance with GAAP. All Expenses shall be documented and available
for inspection by the Lenders or their representatives.

 

6.4          Insurance.

 

(a)          Borrowers
shall, at their sole cost and expense, maintain or cause any Liquidator JV or Merchant to maintain, as the case may be, policies
of insurance required to be maintained (or caused to be maintained) by a Borrower or a Liquidator JV in any applicable Liquidation
Sales Agreement, in form and with insurers acceptable to the Lenders. In the event any Borrower or any Liquidator JV is to acquire
or acquires ownership of any Retail Inventory, Other Assets, or other Collateral then, prior to acquiring such ownership, Borrowers
shall notify the Lenders and shall maintain policies of insurance with respect thereto satisfactory to the Lenders in its discretion
prior to the acquisition thereof by any Borrower. If requested by the Lenders, Borrowers shall cause the Lenders to be named as
an additional insured, loss payee, or other similar term under such insurance policies. If Borrowers at any time or times hereafter
shall fail to obtain or maintain, or shall fail to cause any Liquidator JV to obtain or maintain, any of the policies of insurance
required above or to pay all premiums relating thereto, the Lenders may at any time or times thereafter obtain and maintain such
policies of insurance and pay such premiums and take any other action with respect thereto which the Lenders deems advisable. No
Lender shall have an obligation to obtain insurance for any Borrower or pay any premiums therefor. In the event a Lender does obtain
such insurance or pay any such premiums, the Applicable Lender shall not be deemed to have waived any Default or Event of Default
arising from any Borrower’s failure to maintain such insurance or pay any premiums therefor. All sums so disbursed, including
attorneys’ fees, court costs and other charges related thereto, shall be payable on demand by Borrowers to the Applicable
Lender and shall be additional Obligations hereunder secured by the Collateral and subject to the Great American Guaranty and,
to the extent in effect, GA Asset Advisors Guaranty.

  

(b)          the
Applicable Lender reserves the right at any time upon any change in Borrowers’ risk profile to require additional forms and
limits of insurance to, in the Applicable Lender’s reasonable opinion, adequately protect both the Applicable Lender’s
interests in all or any portion of the Collateral and to ensure that each Borrower is protected by insurance in amounts and with
coverage customary for its industry or the type of property acquired by Borrowers. If requested by the Applicable Lender, Borrowers
shall deliver to the Applicable Lender from time to time a report of a reputable insurance broker, reasonably satisfactory to the
Applicable Lender, with respect to their insurance policies.

 

    	 	- 66 -	 

     

    

 

(c)          Borrowers
shall deliver to the Lenders, in form and substance reasonably satisfactory to the Lenders, endorsements to all policies of insurance
naming the Lenders as loss payee or additional insured, as appropriate, for those policies of insurance under which a Borrower
or a Liquidator JV is named as an insured. Borrowers shall promptly notify the Lenders of any loss, damage, or destruction to the
Retail Inventory, the Other Assets, or any other Collateral, whether or not covered by insurance. After deducting from such proceeds
the expenses, if any, incurred by the Lenders in the collection or handling thereof, the Lenders shall apply such proceeds to the
reduction of the Obligations in accordance with Section 2.8.

 

6.5           Compliance
with Laws. Each Borrower shall, and shall cause any Liquidator JV to, comply with all federal, state, national, local, and
foreign laws and regulations applicable to it, except to the extent that the failure to comply, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.

 

6.6           Supplemental
Disclosure. From time to time as may be requested by the Lenders (which request will not be made more frequently than once
each year absent the occurrence and continuance of a Default or an Event of Default), and upon any Borrower becoming party hereto
pursuant to a Borrower Joinder, Borrowers shall supplement each Schedule hereto, or any representation herein or in any other Loan
Document, with respect to any matter hereafter arising which, if existing or occurring at the date of this Agreement, would have
been required to be set forth or described in such Schedule or as an exception to such representation or which is necessary to
correct any information in such Schedule or representation which has been rendered inaccurate thereby (and, in the case of any
supplements to any Schedule, such Disclosure Schedule shall be appropriately marked to show the changes made therein); provided
that (a) no such supplement to any such Disclosure Schedule or representation shall be or be deemed a waiver of any Default or
Event of Default resulting from the matters disclosed therein, except as consented to by the Lenders in writing; and (b) no supplement
shall be required as to representations and warranties that relate solely to the Restatement Date.

 

6.7           Intellectual
Property. Each Borrower will conduct, and will cause any Liquidator JV to conduct, its business and affairs without infringement
of or interference with any intellectual property of any other Person. Borrowers shall obtain all intellectual property rights
necessary for the conduct of any Liquidation Sale or to enable Borrowers to purchase and resell any Retail Inventory, Other Assets,
or other Collateral purchased by any Borrower pursuant to a Liquidation Sales Agreement.

 

6.8           Environmental
Matters. Each Borrower shall and shall cause each Person within its control (including any Liquidator JV) to: (a) conduct its
operations and keep and maintain its property in compliance with all Environmental Laws and Environmental Permits; (b) implement
any and all investigation, remediation, removal and response actions which are appropriate or necessary to comply with Environmental
Laws and Environmental Permits pertaining to the presence, generation, treatment, storage, use, disposal, transportation or Release
of any Hazardous Material on, at, in, under, above, to, from or about any of its property; (c) notify the Lenders promptly after
such Borrower becomes aware of any violation of Environmental Laws or Environmental Permits or any Release on, at, in, under, above,
to, from or about any property; and (d) promptly forward to the Lenders a copy of any order, notice, request for information or
any communication or report received by such Borrower in connection with any such violation or Release or any other matter relating
to any Environmental Laws or Environmental Permits, in each case whether or not the Environmental Protection Agency or any Governmental
Authority has taken or threatened any action in connection with any such violation, Release or other matter. No Borrower shall
be deemed to have a Merchant “within its control” solely because of the provisions of any Liquidation Sales Agreement.

 

    	 	- 67 -	 

     

    

 

6.9          Further
Assurances. Borrowers agree that they shall and shall cause any Liquidator JV and Merchant to, at Borrowers’ expense
and upon request of the Lenders, duly execute and deliver, or cause to be duly executed and delivered, to the Lenders such further
instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Lenders
to carry out more effectually the provisions and purposes of this Agreement or any other Loan Document. Without limiting the foregoing,
Borrowers shall take all actions necessary such that (a) any borrower or guarantor under the UK Credit Agreement (including but
not limited to GA Asset Advisors) concurrently with its execution of the UK Credit Agreement, and any other Foreign Credit Party
concurrently with becoming a Foreign Credit Party, shall execute and deliver to the Lenders such Foreign Security Documents together
with a guaranty of the Obligations and any other agreements, legal opinions, documents and instruments as are required by the Lenders
each in form and substance satisfactory to the Lenders and (b) the Liens granted to the Lenders pursuant to the Collateral Documents
will at all times be fully perfected first priority Liens in and to the Collateral described therein, subject, as to priority,
only to Permitted Encumbrances with respect to the Collateral. Without limiting the foregoing, none of the Credit Parties shall,
and each of the Credit Parties shall cause their respective Subsidiaries not to, execute the UK Credit Agreement or any agreements,
documents and instruments related thereto unless the Subordination Agreement is executed by all parties thereto concurrently therewith.

 

6.10        Liquidation
Related Agreements.

 

(a)          Each
Borrower shall comply, and shall cause each Liquidator JV to comply, with all material terms, provisions and conditions of the
Liquidation Sales Agreements and Liquidator Joint Venture Agreements, and Borrowers shall promptly notify the Lenders of any breach
of or noncompliance with any material terms, provisions, or conditions of any Liquidation Sales Agreement by the applicable Merchant
of which any Borrower has knowledge or of any Liquidator Joint Venture Agreements by any Person party thereto of which any Borrower
has knowledge.

 

(b)          Contemporaneously
with any Borrower’s execution and delivery of any Liquidation Sales Agreement or Liquidator Joint Venture Agreement (or any
amendment, modification, waiver, supplement, or restatement of any of the foregoing), Borrowers shall deliver to the Lenders a
complete copy of such Liquidation Sales Agreement or Liquidator Joint Venture Agreement and a duly executed Collateral Assignment
with respect thereto.

 

6.11        Investment
Proceeds, Etc. The proceeds of any Investment from any source in any Borrower and any other funds received by any Borrower
other than from ordinary course business operations (including, without limitation, sales or other dispositions of any Borrower’s
assets other than in the ordinary course of such Borrower’s business, the proceeds from the issuance of any debt or the incurrence
of any Indebtedness by any Borrower other than Indebtedness permitted under Section 7.4 hereof, any proceeds from the issuance
of membership interests of any Borrower after the date hereof, tax refunds, damage awards, or insurance or condemnation proceeds)
shall be deposited directly into a Collection Account, provided, however, that notwithstanding the foregoing, Borrowers may deposit
the Borrower Equity Amount needed for specific Liquidation Sales directly into a Disbursement Account.

  

6.12        Immediate
Notice to the Lenders. Borrowers shall provide the Lenders with written notice promptly upon the occurrence of any of the following
events, which written notice shall state with reasonable particularity the facts and circumstances of the event for which such
notice is being given:

 

(a)          Any
change in the Authorized Persons;

 

    	 	- 68 -	 

     

    

 

(b)          Any
cessation by GAG Inc., Great American or any Borrower of making payments to its creditors generally as the same become due;

 

(c)          Any
failure by GAG Inc., Great American or any Borrower to pay rent at any location, which failure continues for more than three (3)
Business Days following the last day on which such rent was due;

 

(d)          Any
Material Adverse Effect;

 

(e)          The
occurrence of any Default or Event of Default or any default or event of default under the UK Credit Agreement (if it is then in
effect) or any documents related thereto;

 

(f)          Any
intention on the part of any Borrower, GAG Inc. or Great American toThe
discharge of any of Borrower’s, GAG Inc.’s
or Great American’s present independent accountants or anythe
 withdrawal or resignation by such independent accountants from their acting in such capacity;

 

(g)          Any
litigation which, if determined adversely to any of the Credit Parties, could reasonably be expected to result in a Material Adverse
Effect;

 

(h)          Any
material default or dispute under any Liquidation Sales Agreement or any Liquidator Joint Venture Agreement;

 

(i)          Any
acquisition or formation of any Subsidiary of Borrower or any Liquidation Joint Venture involving Borrower;

 

(j)          The
filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting
GAG Inc., any Borrower, or any other Subsidiary of GAG Inc. or any of their assets that could reasonably be expected to result
in a Material Adverse Effect; and

 

(k)          The
filing of any motion to convert a chapter 11 proceeding of a Merchant under the Bankruptcy Code to a proceeding under chapter 7
thereof, application for relief from an automatic stay by any creditor of a Merchant in any case involving such Merchant under
the Bankruptcy Code, or any other request for relief under the Bankruptcy Code or any other Debtor Relief Law which, if granted
by the applicable court or other Governmental Authority, could suspend, terminate, interrupt, or otherwise impede any Liquidation
Sale.

  

6.13         Solvency.
The Credit Parties at all times shall be and remain in compliance with Section 4.19 hereof.

 

6.14         Tax
Matters.

 

 (a)          Each
Borrower shall duly and timely file, or cause to be duly and timely filed, all Tax Returns required to be filed by it in respect
of Taxes, and duly and timely pay, or cause to be duly and timely paid, all Taxes due and payable by it as required by applicable
Law, including all Taxes assessed, reassessed or for which a demand for payment is made by any Governmental Authority, except when
and so long as the validity of any such Taxes is being contested in good faith by it or any other Person on its behalf through
appropriate proceedings and adequate provisions for such Taxes have been made in its financial statements in accordance with GAAP.

 

    	 	- 69 -	 

     

    

 

(b)          Subject
to Section 2.13, each Borrower shall duly and timely withhold, or cause to be duly and timely withheld, all material Taxes
required to be withheld by it in accordance with applicable Law from any amount paid, or credited, or deemed to be paid or credited
by it to or for the account of any Person (including any employees, officers or any non-resident Person), and shall duly and timely
remit, or cause to be duly and timely remitted, to the appropriate Governmental Authority such Taxes required by applicable Law
to be remitted by it.

 

(c)          Each
Borrower shall not fail to pay any Taxes or other amounts which would result in a Lien (other than a Permitted Encumbrance) on
any Collateral.

 

(d)          Each
Borrower shall, upon written request, furnish to the Lenders evidence satisfactory to the Lenders that such Borrower has paid such
Taxes in each jurisdiction in which Borrower is required to pay such Taxes.

 

6.15        Borrower’s
Activities.

 

(a)          No
Borrower shall engage in any activity except for:

 

(i)          conducting
Liquidation Sales that are at least partially funded with Liquidation Borrowings from the Applicable Lender and other activities
reasonably incidental thereto; or

 

(ii)         becoming
a member of a Liquidator JV for the purpose of conducting Liquidation Sales that are at least partially funded with Liquidation
Borrowings from the Applicable Lender and other activities reasonably incidental thereto.

 

(b)          No
Borrower shall, nor shall GAG Inc. or Great American cause or permit any Borrower to, enter into any Liquidation Sales Agreement
or Liquidator Joint Venture Agreements, unless such Borrower’s obligations thereunder are at least partially financed by
Liquidation Borrowings from the Applicable Lender (and no other Indebtedness of a Borrower).

 

(c)          Until
the Revolving Credit Termination Date, the Credit Parties agree that no Credit Party nor any of their Affiliates shall conduct
any going out of business, liquidation or store closing sales with respect to any Retail Inventory or Other Assets of a Merchant
which if conducted by a Borrower (or any Liquidator JV of which a Borrower is a joint venturer) would be a Liquidation Sale or
enter into any agreement with any Person that, if entered into by a Borrower, would be a Liquidation Sales Agreement or Liquidator
Joint Venture Agreement, unless:

  

(i)          the
“Guaranteed Amount” or “Purchase Price” (as such terms are defined in the applicable agency or purchase
agreement) is less than $7,500,000 and not funded from the proceeds of any Indebtedness incurred by any Credit Party except, directly
or indirectly (as in the form of an advance from GAG Inc. or Great American to any of its Subsidiaries other than a Borrower),
from the proceeds of the Parent Working Capital Facility; or

 

(ii)         GAG
Inc., Great American or any of their respective Subsidiaries (other than a Borrower), funds its obligations with respect to the
“Guaranteed Amount” or “Purchase Price” (as such terms are defined in the applicable agency or purchase
agreement) out of GAG Inc.’s, Great American’s or such Subsidiary’s cash resources without the use of any
Indebtedness (including any Indebtedness derived from the Parent Working Capital Facility); or

 

    	 	- 70 -	 

     

    

 

(iii)        a Borrower has
presented the Applicable Lender with a Liquidation Loan Proposal for such proposed Liquidation Sale, and the Applicable Lender
has determined that it will not provide Revolving Credit Advances, Letters of Credit, or has offered alternate terms therefor which
such Borrower has rejected, all in a manner consistent with the requirements of Section 2.1(fh).

 

(d)          Nothing
contained in this Section 6.15 or elsewhere in this Agreement shall prevent GAG Inc., Great American or any other Affiliate or
Subsidiary thereof (other than a Borrower) from engaging in any activities related to the liquidation of any real property, personal
property or other property of a Person other than a Merchant or an Affiliate thereof that in the ordinary course of its business
sells Retail Inventory, including the conducting of a liquidation sale of such real property, personal property or other property
and issuing any guarantees in connection therewith.

 

6.16         Applications
under the CCAA and BIA. Each Borrower and each of its Subsidiaries acknowledges that its business and financial relationships
with the Lenders is unique from its relationship with any other of its creditors. Each Borrower and each of its Subsidiaries agrees
that it shall not file any plan of arrangement under the CCAA or proposal under the BIA which provides for, or would permit, directly
or indirectly, the Lenders to be classified with any other creditors of such Borrower and each of its Subsidiaries for purposes
of such CCAA plan of arrangement, BIA proposal or otherwise.

 

6.17         OFAC;
Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws. Each Credit Party will, and will cause each of its Subsidiaries to,
comply with all applicable Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws. Each of the Credit Parties and its Subsidiaries
shall implement and maintain in effect policies and procedures designed to ensure compliance by the Credit Parties and their Subsidiaries
and their respective directors, officers, employees, agents and Affiliates with all Sanctions, Anti-Corruption Laws and Anti-Money
Laundering Laws. 

 

7.          NEGATIVE
COVENANTS

 

Each Borrower agrees that,
without the prior written consent of the Lenders, from and after the date hereof until the Termination Date, Borrowers shall comply
with each of the following covenants:

  

7.1           Mergers,
Subsidiaries, Etc. No Borrower shall directly or indirectly, by operation of law or otherwise, (a) form or acquire any Subsidiary,
(b) merge with, amalgamate with, consolidate with, acquire all or substantially all of the assets or capital stock of, or
otherwise combine with or acquire, any Person; provided, that, the acquisition of any assets by a Borrower in connection with any
Liquidation Sale pursuant to the Liquidation Sales Agreements shall not be violation of this covenant, or (c) liquidate, wind up,
or dissolve itself (or suffer any liquidation or dissolution).

 

7.2           Liquidation
Related Agreements. No Borrower shall amend, modify, supplement, waive, or assent to noncompliance with any material term,
provision or condition of any Liquidation Sales Agreements or any Liquidator Joint Venture Agreement without the Lenders’
prior written consent.

 

    	 	- 71 -	 

     

    

 

7.3           Investments,
Loans and Advances. No Borrower shall make or permit to exist any Investment in, or make, accrue or permit to exist loans or
advances of money to, any Person, through the direct or indirect lending of money, holding of securities or otherwise except that,
so long as no Default or Event of Default shall have occurred and be continuing, Borrowers may collectively make Investments up
to $2,000,000 in the aggregate, subject to Control Agreements in favor of the Lenders or otherwise subject to a perfected security
interest in favor of the Lenders, in (i) marketable direct obligations issued or unconditionally guaranteed by the United States
of America, the federal government of Canada or any agency thereof maturing within one year from the date of acquisition thereof,
(ii) certificates of deposit, maturing no more than one year from the date of creation thereof, issued by commercial banks incorporated
under the laws of the United States of America or Canada, each having combined capital, surplus and undivided profits of not less
than $300,000,000 and having a senior secured rating of “A” or better by a nationally recognized rating agency (an
“A Rated Bank”), and (iii) time deposits, maturing no more than 30 days from the date of creation thereof with A Rated
Banks. Notwithstanding the foregoing, so long as no Default or Event of Default shall have occurred or be continuing, Retail shall
be permitted to make: (i) a one-time investment on or about the Third Amendment Effective Date in the form of the Target L/C, and,
(ii) a one-time investment on or about the Fifth Amendment Effective Date in the form of the Jones L/C, in both cases, so long
as such Letter of Credit is fully cash collateralized in such amounts as may be requested by the Lenders.

 

7.4           Indebtedness.
No Borrower shall create, incur, assume or permit to exist any Indebtedness or liabilities, other than (i) the Liquidation Borrowings
and the other Obligations, (ii) deferred Taxes (so long as no Default or Event of Default would occur or occurs as a result thereof);
(iii) obligations arising under or in relation to Liquidation Sales Agreements or Liquidator Joint Venture Agreements; and (iv)
Indebtedness owed to Great American in an amount not to exceed $1,000,000 in the aggregate and incurred solely in connection with
services provided by Great American or one of its Affiliates.

 

7.5           Affiliate
Transactions. Except as otherwise permitted under Section 7.4(iv), no Borrower shall enter into or be a party to any transaction
with any Affiliate; provided that, a Borrower, subject to and with funds received by Borrower in accordance with Section 2.8, may
(a) make payments to Great American so long as such payments are not Restricted Payments (unless otherwise allowed hereunder) and
are limited to the reimbursement of actual out-of-pocket expenses consistent with the Budget for any Liquidation Sale and (b) make
payments to its other Affiliates so long as such payments are limited to the payment or reimbursement of such Affiliates’
actual, out of pocket costs and expenses (without any mark-up or profit) related to providing goods or services which relate to
a Liquidation Sale. Notwithstanding anything to the contrary set forth in this Agreement, in connection with any Liquidation Sale
where Borrower is required to post an Expense L/C, Borrower, at its discretion, shall have the right to satisfy such requirement
either through (a) a Letter of Credit Obligations hereunder, or (b) Great American causing a letter of credit to be issued through
the Parent Capital Working Facility provided that Borrower shall not incur any Indebtedness with respect to such letter of credit.

 

7.6           Capital
Structure and Business. No Borrower shall (a) make any changes in any of its business objectives or purposes, or any material
change in its operations, (b) make any change in its capital structure as described in Section 4.8 or (c) form any Restricted
Subsidiary that does not promptly execute a Borrower Joinder.

 

7.7           Guaranteed
Indebtedness. No Borrower shall create, incur, assume or permit to exist any obligation to guaranty any Indebtedness or other
obligation of any other Person in any manner except by endorsement of instruments or items of payment for deposit to the general
account of Borrowers.

 

    	 	- 72 -	 

     

    

 

7.8           Liens.
No Borrower shall create, incur, assume or permit to exist any Lien on or with respect to the any of its properties or assets (whether
now owned or hereafter acquired) except (i) Liens in favor of (or assigned to) the Lenders pursuant to the Loan Documents, (ii)
Liens for taxes not yet due (iii) potential or actual retention of title claims known to a Borrower, disclosed in writing to the
Lenders and reasonably acceptable to the Lenders, in relation to the assets of a Merchant which are the subject of Liquidation
Sales conducted outside of the US and Canada, (iv) materialmen’s, mechanic’s, workmen’s, repairmen’s
or other like Liens arising in the ordinary course of business securing obligations that are not overdue and (v) to the extent
the UK Credit Agreement is in effect, Liens in favor of Burdale pursuant to the UK Credit Agreement and related documents (which
Liens shall be subordinate to the Liens in favor of the Lenders pursuant to the terms set forth in the Subordination Agreement)
(collectively, “Permitted Encumbrances”). In addition, no Borrower shall become a party to any agreement, note,
indenture or instrument, or take any other action, that would prohibit the creation of a Lien on any of its properties or other
assets in favor of the Lenders as additional collateral for the Obligations.

 

7.9           Sale
of Membership Interests and Assets. No Borrower shall sell, transfer, convey, assign or otherwise dispose of any of its properties
or other assets, including any membership interest (whether in a public or a private offering or otherwise), other than the sale
of Retail Inventory or Other Assets in Liquidation Sales pursuant to the Liquidation Sales Agreements. With respect to any disposition
of assets or other properties in connection with any Liquidation Sale pursuant to the respective Liquidation Sales Agreements,
the Lenders agree to release their Lien on such assets or other properties in order to permit Borrowers to effect such disposition
and shall execute and deliver to Borrowers, at Borrowers’ expense, appropriate UCC-3 termination statements, PPSA termination
statements and other releases as reasonably requested by Borrowers.

 

7.10         ERISA.
No Borrower shall cause or permit any ERISA Affiliate to cause or permit to occur an event which could result in the imposition
of a Lien under Section 412 of the Internal Revenue Code or Section 302 or 4068 of ERISA.

 

7.11         Hazardous
Materials. No Borrower shall cause nor, to the extent its permission or acquiescence is sought or required, permit a Release
of any Hazardous Material on, at, in, under, above, to, from or about any of the real estate upon which any Liquidation Sale is
being held, where such Release would (a) violate in any respect, or form the basis for any Environmental Liabilities under, any
Environmental Laws or Environmental Permits or (b) otherwise adversely impact the value or marketability of any of the Collateral,
Retail Inventory, or Other Assets, other than such violations or impacts which could not reasonably be expected to have a Material
Adverse Effect.

 

7.12         Sale-Leasebacks.
No Borrower shall engage in any sale-leaseback, synthetic lease or similar transaction involving any assets.

 

7.13         Cancellation
of Indebtedness. No Borrower shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on
an arm’s-length basis and in the ordinary course of its business.

 

7.14         Restricted
Payments. No Borrower shall, directly or indirectly, (i) declare, order, pay or make any Restricted Payment or (ii) set aside
any sum or property therefor, except Borrowers may make payments to Great American of Amounts received by Borrowers in connection
with a Liquidation Sale pursuant to Section 2.8(a)(xiv) and the last sentence of Section 2.8.

 

    	 	- 73 -	 

     

    

 

7.15         Change
of Company Name or Location; Change of Fiscal Year. No Borrower shall (a) change its name, or (b) change its chief executive
office, principal place of business, other business offices, warehouses or other locations, or the location of its records concerning
the Collateral, in any case without at least thirty (30) days prior written notice to the Lenders and after completing or taking
any reasonable action requested by the Lenders in connection therewith, including to continue the perfection of any Liens in favor
of the Lenders in any Collateral, and provided that any such new location shall be in the continental United States or Canada.
Without limiting the foregoing, no Borrower shall change its name, identity or structure in any manner which might make any financing
statement, financing change statement or continuation statement filed in connection herewith insufficient or inadequate to comply
with the requirements of Section 9-503 of the Code, the filing requirements of the PPSA or any other then applicable provision
of the Code except upon prior written notice to the Lenders and after completing or taking any reasonable action requested by the
Lenders in connection therewith, including to continue the perfection of any Liens in favor of the Lenders in any Collateral. No
Borrower shall change, nor suffer or permit Great American or GAG Inc. to change, its Fiscal year.

 

7.16         No
Speculative Transactions. No Borrower shall engage in any transaction involving commodity options, futures contracts or similar
transactions.

 

7.17         Leases.
No Borrower shall enter into any lease for real or personal property.

 

7.18         Change
of Control. No Borrower shall cause, permit, or suffer, directly or indirectly, any Change of Control with respect to any Borrower.

  

7.19         Accounting
Methods. No Borrower shall modify or change its method of accounting (other than as may be required to conform to GAAP) or
enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting
firm or service bureau for the preparation or storage of any Borrower’s accounting records without said accounting firm or
service bureau agreeing to provide the Lenders information regarding the Collateral and each Borrower’s financial condition.

 

7.20         Suspension.
No Borrower shall suspend or go out of a substantial portion of any of its business.

 

7.21         Benefit
Plans. No Borrower nor any ERISA Affiliate shall maintain or contribute to any Benefit Plan.

 

7.22         Preferred
Stock. GAG Inc. agrees not to issue any Capital Stock to any Person that would constitute “Preferred Stock” as
defined and described in GAG Inc.’s Certificate of Incorporation filed with the State of Delaware on May 7, 2009, without
providing the Lenders with at least 30 days advance written notice thereof, together with copies of all documents, certificates,
and agreements to be issued by GAG Inc. or any other Person in connection with such issuance.

 

7.23         Canadian
Pension Plans. No Borrower shall contribute to or assume an obligation to contribute to any Canadian Pension Plan that has
a “defined benefit” provisions as such term is defined in the Income Tax Act (Canada).

 

7.24         Use
of Proceeds. No part of the proceeds of the Revolving Credit Advances will be used to purchase or carry any Margin Stock or to
extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates the provisions
of Regulation T, U or X of the Federal Reserve Board, (y) no part of the proceeds of any Revolving Credit Advance or Letter of
Credit will be used, directly or indirectly, to make any payments to a Sanctioned Entity or a Sanctioned Person, to fund any investments,
loans or contributions in, or otherwise make such proceeds available to, a Sanctioned Entity or a Sanctioned Person, to fund any
operations, activities or business of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would result in a
violation of Sanctions by any Person, and (z) that no part of the proceeds of any Revolving Credit Advance or Letter of Credit
will be used, directly or indirectly, in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving
of money, or anything else of value, to any Person in violation of any Sanctions, Anti-Corruption Laws or Anti-Money Laundering
Laws. 

 

    	 	- 74 -	 

     

    

 

8.          TERM

 

8.1          Termination.
The financing arrangements contemplated hereby shall be in effect until the Revolving Credit Termination Date, and any then outstanding
Obligations shall be automatically due and payable in full on such date.

 

8.2          Survival
of Obligations Upon Termination of Financing Arrangements. Except as otherwise expressly provided for in the Loan Documents,
no termination or cancellation (regardless of cause or procedure) of any financing arrangement under this Agreement shall in any
way affect or impair the obligations, duties and liabilities of any Borrower or the rights of the Lenders relating to any unpaid
portion of the Obligations, due or not due, liquidated, contingent or unliquidated or any transaction or event occurring prior
to such termination, or any transaction or event, the performance of which is required after the Revolving Credit Termination Date.
Except as otherwise expressly provided herein or in any other Loan Document, all undertakings, agreements, covenants, warranties
and representations of or binding upon any Borrower, and all rights of the Lenders, all as contained in the Loan Documents, shall
not terminate or expire, but rather shall survive any such termination or cancellation and shall continue in full force and effect
until the Termination Date; provided, however that in all events the provisions of Section 11, the payment of obligations
under Sections 2.11 and 2.13, and the indemnities contained in the Loan Documents shall survive the Termination Date.

 

9.          EVENTS
OF DEFAULT; RIGHTS AND REMEDIES

 

9.1          Events
of Default. The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute
an “Event of Default” hereunder:

 

(a)         Any
Borrower (i) shall fail to make any payment of principal of any Revolving Credit Advance or any of the other Obligations when due
and payable, (ii) shall fail to make any payment of interest or any Fee when due and payable and the same remains unremedied for
more than one (1) Business Day, or (iii) fails to pay or reimburse the Applicable Lender for any expense reimbursable hereunder
or under any other Loan Document within ten (10) Business Days following such Borrower’s receipt of the Applicable Lender’s
written demand for such reimbursement or payment of expenses.

 

(b)         Any
Borrower shall fail or neglect to perform, keep or observe any of the provisions of Sections 2.2, 2.6, 6.4
or 7.

 

(c)         Any
Borrower shall fail or neglect to perform, keep or observe any of the provisions of Section 5, and the same shall remain
unremedied for more than five (5) Business Days.

 

(d)         Any
Borrower shall fail or neglect to perform, keep or observe any other provision of this Agreement or of any of the other Loan Documents
(other than any provision embodied in or covered by any other clause of this Section 9) and such failure continues after
the earlier of (i) three (3) Business Days after such Borrower shall receive written notice of any such failure from the Applicable
Lender or (ii) five (5) Business Days after such Borrower shall become aware thereof.

 

    	 	- 75 -	 

     

    

 

(e)         Any
representation or warranty herein or in any Loan Document or in any written statement, report, financial statement or certificate
made or delivered to the Applicable Lender by any Borrower shall be untrue or incorrect in any material respect as of the date
when made or deemed made.

 

(f)          Any
assets of any Borrower shall be attached, seized, levied upon or subjected to a writ or distress warrant, or come within the possession
of any receiver, trustee, custodian or assignee for the benefit of creditors of any Borrower.

  

(g)         An
Insolvency Proceeding shall be commenced by GAG Inc., Great American or any Borrower.

 

(h)         An
Insolvency Proceeding shall be commenced against GAG Inc., Great American or any Borrower and any of the following events occur:
(i) such Person consents to the institution of the Insolvency Proceeding against it, (ii) the petition commencing the Insolvency
Proceeding is not timely controverted, (iii) the petition commencing the Insolvency Proceeding is not dismissed within forty-five
(45) days of the date of the filing thereof, (iv) an interim trustee or received is appointed to take possession of all or any
substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of such Person,
or (v) an order for relief shall have been entered therein.

 

(i)          A notice of Lien,
levy, or assessment shall be filed of record with respect to the assets of GAG Inc. or Great American valued in the aggregate in
excess of $100200,000 or any asset of
a Borrower valued in the aggregate in excess of $50,000 by the United States, Canada or
any department, agency, or instrumentality thereof, or by any state, province, territory, county, municipal, or governmental agency,
or any other Governmental Authority and with respect to GAG Inc. and Great American the same is not discharged within ten (10)
Business Days of the date of such filing and with respect to a Borrower, the same is not
discharged within two (2five (5) Business
Days of the date of such filing, or if any taxes or debts owing at any time hereafter to any one or more of such entities becomes
a Lien, whether choate or otherwise, upon such entities’ assets and the same is not paid on the payment date thereof.

 

(j)          A
final judgment or judgments for the payment of money involving an aggregate amount of (i) $100,000 or more shall be rendered
against any Borrower or (ii) $2,000,000 or more shall be rendered against GAG Inc. or Great American and in each case the
same shall not, within thirty (30) days after the entry thereof, have been discharged or execution thereof stayed or bonded pending
appeal, or shall not have been discharged prior to the expiration of any such stay.

 

(k)         Any
material provision of any Loan Document shall for any reason cease to be valid, binding and enforceable in accordance with its
terms (or any Borrower, GAG Inc., or Great American, as the case may be, shall challenge the enforceability of any Loan Document
or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision of any of the Loan
Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms), or any security interest
created under any Loan Document shall cease to be a valid and perfected first priority security interest or Lien (except as otherwise
permitted herein or therein) in any of the Collateral purported to be covered thereby, unless such security interests cease to
be a valid and perfected first priority security interest or Lien in the Collateral solely by reason of any Lender’s act
or failure to act.

 

    	 	- 76 -	 

     

    

 

(l)          GAG
Inc., Great American or any Borrower shall be enjoined, restrained, or in any way prevented by court order or otherwise from continuing
to conduct all or any material part of its business affairs.

 

(m)        There
shall be a default in any other agreement material to the operations of the business of any Borrower or Great American and such
default (i) shall occur at the final maturity of the obligations thereunder or (ii) shall result in a right by the other party
thereto, irrespective of whether exercised, to accelerate the maturity of such Borrower’s or Great American’s obligations
thereunder, to terminate such agreement, or to refuse to renew such agreement pursuant to an automatic renewal right therein.

  

(n)         Any
material misstatement or misrepresentation shall exist in any warranty, representation, statement, or Record made to the Lenders
by any Borrower, Great American, or any officer, employee, agent, director (or comparable manager) of any Borrower or Great American
on behalf of any Borrower or Great American.

 

(o)         There
shall occur an event of default or any other material breach under the Great American Guaranty or, if the GA Asset Advisors Guaranty
is in effect, the GA Asset Advisors Guaranty (after taking into account any applicable notice and cure provisions related thereto),
provided that, with respect to the GA Asset Advisors Guaranty (if it is then in effect), the Applicable Lender has given Borrower
written notice of such event of default or other material breach.

 

(p)         There
shall occur a Change of Control.

 

(q)         There
shall occur an indictment of, or institution of any legal process or proceeding against, GAG Inc., Great American or any Borrower,
or any member, officer, director, or senior manager of GAG Inc., Great American or any Borrower, where the relief, penalties or
remedies sought or available include the forfeiture of any property of GAG Inc., Great American or any Borrower and/or the imposition
of any stay or other order, the effect of which could be to restrain in any material way the conduct by GAG Inc., Great American
or any Borrower of its business in the ordinary course or would otherwise result in a Material Adverse Effect.

 

(r)          There
shall occur an event of default or any other material breach by any Person party to any Liquidator Joint Venture Agreement, Liquidation
Sales Agreement, Agency Agreement or Purchase Agreement (after taking into account any applicable notice and cure provisions related
thereto). Any Expense L/C required under any Liquidation Sales Agreement shall not be issued when and as required by such Liquidation
Sales Agreement, or shall be cancelled, terminated, or shall be permitted to expire except in accordance with the terms of any
Liquidation Sales Agreement.

 

(s)          If
the UK Credit Agreement is in effect, there shall occur an event of default or any other material breach under the UK Credit Agreement
or any related documents (after taking into account any applicable notice and cure provisions related thereto), provided that the
Applicable Lender has given Borrower written notice of such event of default or other material breach.

 

(t)          There
shall occur any other event that has a Material Adverse Effect.

 

9.2          Remedies.
Upon the occurrence, and during the continuation, of an Event of Default, the Lenders may exercise any of the rights and remedies
of a secured party under the Code and any other rights and remedies provided for in this Agreement or any other Loan Document or
otherwise available to it at Law or in equity, such rights and remedies to include, without limitation, the following, all of which
are authorized by each Borrower:

 

    	 	- 77 -	 

     

    

 

(a)          If
any Default or Event of Default shall have occurred and be continuing, the Lenders may without notice suspend this facility with
respect to further Revolving Credit Advances and the incurrence of further Letter of Credit Obligations whereupon any further Revolving
Credit Advances and Letter of Credit Obligations shall be made or extended in the Lenders’ sole discretion so long as such
Default or Event of Default is continuing.

 

(b)          If
any Event of Default shall have occurred and be continuing, the Lenders may, without notice, (i) terminate this facility with respect
to further Revolving Credit Advances and the incurrence of further Letter of Credit Obligations; (ii) except as otherwise expressly
provided herein, increase the rate of interest and Letter of Credit Fees applicable to the Obligations to the Default Rate; (iii)
declare all or any portion of the Obligations, including all or any portion of any Liquidation Borrowing to be forthwith due and
payable, and require that the Letter of Credit Obligations be cash collateralized as provided in Annex B, all without presentment,
demand, protest or further notice of any kind, all of which are expressly waived by Borrowers; and (iv) exercise any rights and
remedies provided to the Lenders under the Loan Documents and/or at Law or equity, including all remedies provided under the Code;
provided, that upon the occurrence of an Event of Default specified in Sections 9.1 (f), (g) or (h), all of
the Obligations, including all portions of the Revolving Loan, shall become immediately due and payable without declaration, notice
or demand by any Person.

 

(c)          If
any Event of Default shall have occurred and be continuing and if the Lenders determine that any Borrower is unwilling or unable
to conduct any Liquidation Sale as required under a Liquidation Sales Agreement, then the Lenders may assume control of, and conduct
and complete, or appoint an agent to assume control of, conduct, and complete, such Liquidation Sale pursuant to the terms of such
Liquidation Sales Agreement.

 

(d)          If
any Event of Default shall have occurred and be continuing, the Lenders may, without notice to any Borrower (such notice being
expressly waived), and without constituting a retention of any collateral in satisfaction of an obligation (within the meaning
of the Code), set off and apply to the Obligations any and all (i) balances and deposits of any Borrower held by the Lenders or
any Affiliate thereof (including any amounts received in the Cash Management Accounts), or (ii) Indebtedness at any time owing
to or for the credit or the account of any Borrower held by the Lenders or any Affiliate thereof.

 

(e)          If
any Event of Default shall have occurred and be continuing, the Lenders may: (i) hold, as cash collateral, any and all balances
and deposits of any Borrower held by the Lenders, and any amounts received in the Cash Management Accounts, to secure the full
and final repayment of all of the Obligations; (ii) instruct each Cash Management Bank and any other depositary with whom a DDA
subject to a Control Agreement is maintained, to pay any and all balances and deposits in the applicable Cash Management Account
or other DDA to Lender’s Account.

 

9.3           Remedies
Cumulative. The rights and remedies of the Lenders under this Agreement, the other Loan Documents, and all other agreements
shall be cumulative and may be exercised simultaneously. Each Lender shall have all other rights and remedies not inconsistent
herewith as provided under the Code, by Law, or in equity. No exercise by the Lenders of one right or remedy shall be deemed an
election, and no waiver by the Lenders of any Event of Default shall be deemed a continuing waiver. No delay by the Lenders shall
constitute a waiver, election, or acquiescence by it.

 

    	 	- 78 -	 

     

    

 

9.4           Waivers
by Borrower. Except as otherwise provided for in this Agreement or by applicable Law, each Borrower waives: (a) presentment,
demand and protest and notice of presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default,
nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract
rights, documents, instruments, chattel paper and guaranties at any time held by the Lenders on which such Borrower may in any
way be liable, and hereby ratifies and confirms whatever the Lenders may do in this regard, (b) all rights to notice and a hearing
prior to any Lender’s taking possession or control of, or to such Lender’s replevy, attachment or levy upon, the Collateral
or any bond or security which might be required by any court prior to allowing the such Lender to exercise any of its remedies,
and (c) the benefit of all valuation, appraisal and exemption laws.

  

10.         SUCCESSORS
AND ASSIGNS

 

10.1         This
Agreement and the other Loan Documents shall be binding on and shall inure to the benefit of each Borrower, the Lenders and their
respective successors and assigns (including a debtor-in-possession on behalf of any Borrower), except as otherwise provided herein
or therein.

 

10.2         No
Borrower shall assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder or under
any of the other Loan Documents without the prior express written consent of the Lenders. Any such purported assignment, transfer,
hypothecation or other conveyance by any Borrower without the prior express written consent of the Lenders shall be void.

 

10.3         Each
Lender (“Assignor”) may assign and delegate to one or more assignees (each, an “Assignee”)
all, or any ratable part of all, of the Obligations and the other rights and obligations of the Assignor hereunder and under the
other Loan Documents (except that any documents or agreements concerning Bank Products may only be assigned in accordance with
their terms); provided, however, that Borrowers may continue to deal solely and directly with such Assignor in connection
with the interest so assigned to an Assignee until (a) written notice of such assignment, together with payment instructions, addresses,
and related information with respect to the Assignee, have been given to Borrowers and (b) the Assignor and its Assignee have delivered
to Borrowers an Assignment and Acceptance substantially in the form of Exhibit 10.3 hereto.

 

10.4         The
terms and provisions of this Agreement are for the purpose of defining the relative rights and obligations of Borrowers and the
Lenders with respect to the transactions contemplated hereby and no Person shall be a third party beneficiary of any of the terms
and provisions of this Agreement or any of the other Loan Documents.

 

11.         MISCELLANEOUS

 

11.1         Complete
Agreement; Modification of Agreement. This Agreement, together with the other Loan Documents constitute the complete agreement
between the parties with respect to the subject matter thereof and shall not be contradicted or qualified by any other agreement,
oral or written, before the date hereof. This Agreement may not be modified, altered or amended except as set forth in Section
11.2 below.

 

11.2         Amendments.
No amendment, modification, or termination of any provision of this Agreement or any other Loan Document, or any consent to any
departure by any Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lenders
and the Credit Party who is a party to this Agreement or such Loan Document (as applicable).

 

    	 	- 79 -	 

     

    

 

11.3        Releases.
Upon indefeasible payment in full in cash and performance of all of the Obligations (other than indemnification
Obligations under Section 2.11), termination of the this Agreement
and a release of all claims against the Lenders, and so long as no suits, actions proceedings, or claims are pending or
threatened against any Indemnified Person asserting any damages, losses or liabilities that are Indemnified Liabilities, the
Lenders shall deliver to Borrowers termination statements, mortgage releases and other documents necessary or appropriate to
evidence the termination of the Liens securing payment of the Obligations.

  

11.4        Fees
and Expenses.

 

(a)          Borrowers
jointly and severally agree to pay from time to time on demand all costs of collection, Lender Expenses and all reasonable costs,
expenses, and disbursements (including reasonable attorneys’ fees and expenses) which are incurred by the Lenders in connection
with the preparation, negotiation, execution, administration and delivery of this Agreement and of any other Loan Documents, and
all other reasonable costs, expenses, and disbursements which may be incurred in connection with or in respect to the credit facility
contemplated hereby or which otherwise are incurred with respect to the Obligations.

 

(b)          Borrowers
jointly and severally agree to pay from time to time on demand all Lender Expenses (including reasonable attorneys’ fees
and reasonable attorneys’ expenses) incurred by the Lenders, following the occurrence of any Event of Default.

 

(c)          Each
Borrower authorizes the Lenders to pay all such fees and expenses, and in the Lenders’ discretion, to add such fees and expenses
to the Loan Account.

 

(d)          The
undertaking on the part of Borrowers in this Section 11.4 shall survive payment of the Obligations and/or any termination,
release, or discharge executed by the Lenders in favor of any Borrower, other than a termination, release, or discharge which makes
specific reference to this Section 11.4.

 

11.5        Tax
and Expenses. If any Borrower fails to pay any monies (whether taxes, assessments, insurance premiums, or, in the case of leased
properties or assets, rents or other amounts payable under such leases) due to third Persons, or fails to make any deposits or
furnish any required proof of payment or deposit, all as required under the terms of this Agreement, then, the Applicable Lender,
in its sole discretion and without prior notice to any Borrower, may do any or all of the following: (a) make payment of the same
or any part thereof, or (b) in the case of the failure to comply with Section 6.4 hereof, obtain and maintain insurance
policies of the type described in Section 6.4 and take any action with respect to such policies as the Applicable Lender
deems prudent. Any such amounts paid by the Applicable Lender shall constitute Lender Expenses and any such payments shall not
constitute an agreement by the Applicable Lender to make similar payments in the future or a waiver by the Applicable Lender of
any Event of Default under this Agreement. Each Lender need not inquire as to, or contest the validity of, any such expense, tax,
or Lien and the receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly
due and owing.

 

11.6        No
Waiver. The Applicable Lender’s failure, at any time or times, to require strict performance by any Borrower of any provision
of this Agreement and any of the other Loan Documents shall not waive, affect or diminish any right of the Applicable Lender thereafter
to demand strict compliance and performance therewith. Any suspension or waiver of an Event of Default shall not suspend, waive
or affect any other Event of Default whether the same is prior or subsequent thereto and whether the same or of a different type.
None of the undertakings, agreements, warranties, covenants and representations of any Borrower contained in this Agreement or
any of the other Loan Documents and no Default or Event of Default by any Borrower shall be deemed to have been suspended or waived
by the Applicable Lender, unless such waiver or suspension is by an instrument in writing signed by an officer of or other authorized
employee of the Applicable Lender and directed to Borrowers specifying such suspension or waiver.

 

    	 	- 80 -	 

     

    

 

11.7         Remedies.
Each Lender’s and the Credit Parties’ respective rights and remedies under this Agreement shall be cumulative and nonexclusive
of any other rights and remedies which the Applicable Lender or any Credit Party may have under any other agreement, including
the other Loan Documents, by operation of Law or otherwise. Recourse to the Collateral shall not be required.

 

11.8         Severability.
Wherever possible, each provision of this Agreement and the other Loan Documents shall be interpreted in such a manner as to be
effective and valid under applicable Law, but if any provision of this Agreement shall be prohibited by or invalid under applicable
Law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

 

11.9         Conflict
of Terms. Except as otherwise provided in this Agreement or any of the other Loan Documents by specific reference to the applicable
provisions of this Agreement, if any provision contained in this Agreement is in conflict with, or inconsistent with, any provision
in any of the other Loan Documents, the provision contained in this Agreement shall govern and control.

 

11.10         Confidentiality.
Each Lender agrees to use reasonable efforts (equivalent to the efforts such Lender applies to maintain as confidential its own
confidential information) to maintain as confidential all information provided to it by Borrowers and/or any other Credit Party
and/or their Affiliates and designated as confidential; provided, that each Lender may disclose such information (a) to
Persons employed or engaged by such Lender in evaluating, approving, structuring or administering the Liquidation Borrowings and
the credit facility evidenced by the Loan Documents; (b) to any bona fide participant or potential participant that has agreed
to comply with the covenant contained in this Section 11.10 (and any such bona fide participant or potential participant
may disclose such information to Persons employed or engaged by them as described in clause (a) above); (c) as required
or requested by any Governmental Authority or reasonably believed by such Lender to be compelled by any court decree, subpoena
or legal or administrative order or process; (d) as, in the opinion of such Lender’s counsel, required by Law; (e) in connection
with the exercise of any right or remedy under the Loan Documents or in connection with any litigation to which such Lender is
a party, or (f) which ceases to be confidential through no fault of such Lender. Each Lender may at any time destroy any documents
containing such confidential information.

 

11.11         CHOICE
OF LAW AND VENUE.

 

  (a)          THE
VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN
RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE
PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED
UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

 

    	 	- 81 -	 

     

    

 

  (b)          THE
PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED
AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF SUFFOLK, COMMONWEALTH OF MASSACHUSETTS, PROVIDED,
HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDER’S OPTION,
IN THE COURTS OF ANY JURISDICTION WHERE LENDER ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
BORROWERS WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS
OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 11.11(b). 

 

11.12         Notices.
Unless otherwise provided in this Agreement, all notices or demands by any Borrower or the Lenders to the other relating to this
Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents
which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage
prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as Borrowers or the Lenders, as
applicable, may designate to each other in accordance herewith), or telefacsimile (with a confirming receipt from the sending machine)
to Borrowers or to the Lenders, as the case may be, at its address set forth below:

 

	If to any	 
	Credit Party:	Great American Group WF, LLC
	 	2186021255
    Burbank,
     Boulevard 
	 	

Suite
300 South400

	 	Woodland Hills, CA 91367
	 	Attn:  Phillip Ahn, Chief Financial Officer
	 	Fax No.: (818) 746-9921
	 	Email:  pahn@greatamerican.com
	 	 
	With copies 	 
	in all cases to:	B. Riley Financial, Inc.
	 	590 Madison Ave., 29th Floor
	 	New York, NY 10022
	 	Attn: Alan Forman, Executive Vice President & General Counsel
	 	Email: aforman@brileyfin.com
	 	 
	And:	 
	 	Greenberg & Bass LLP
	 	16000 Ventura Boulevard
	 	Suite 1000
	 	Encino, CA 91436
	 	Attn:  David Adelman, Esquire
	 	Fax No.: (818) 986-6534
	 	Email:  dadelman@greenbass.com

 

    	 	- 82 -	 

     

    

 

	If to the Lenders:  	Wells Fargo Bank, National Association
	 	One Boston Place, 18th Floor
	 	Boston, MA 02108
	 	Attn: Joseph Burt
	 	Fax No. (617) 523-4032
	 	Email: Joseph.Burt@wellsfargo.com
	 	 
	With copies 	 
	in all cases to:	Choate, Hall & Stewart LLP
	 	Two International Place
	 	Boston, MA  02110
	 	Attn: Kevin J. Simard, Esquire
	 	Fax No. (617) 248-4000
	 	Email:  ksimard@choate.com

 

the Lenders and Borrowers may change the address
at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices
or demands sent in accordance with this Section 11.12, other than notices by the Lenders in connection with enforcement
rights against the Collateral under the provisions of the Code, shall be deemed received on the earlier of the date of actual receipt
or three (3) Business Days after the deposit thereof in the mail. Borrowers acknowledge and agree that notices sent by the Lenders
in connection with the exercise of enforcement rights against Collateral under the provisions of the Code shall be deemed sent
when deposited in the mail or personally delivered, or, where permitted by Law, transmitted by telefacsimile or any other method
set forth above.

 

11.13         Section
Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context,
everything contained in each Section applies equally to this entire Agreement.

 

11.14         Counterparts;
Telefacsimile Execution. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together,
shall constitute but one and the same agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be
equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart
of this Agreement by telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver
an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing
shall apply to each other Loan Document mutatis mutandis, except as otherwise specifically provided therein or therefor.

 

11.15         WAIVER
OF JURY TRIAL. BORROWERS AND LENDERLENDERS
EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWERS AND LENDERLENDERS REPRESENT
THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED
AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

 

    	 	- 83 -	 

     

    

 

11.16         Press
Releases. Each Borrower agrees that neither it nor its Affiliates will in the future issue any press releases or other public
disclosure using the name of the Lenders or their Affiliates or referring to this Agreement or the other Loan Documents without
at least two (2) Business Days’ prior notice to the Lenders and without the prior written consent of the Lenders unless (and
only to the extent that) such Borrower or Affiliate is required to do so under applicable Law and then, in any event, such Borrower
or Affiliate will consult with the Lenders before issuing such press release or other public disclosure. Each Borrower, on its
own behalf and on behalf of its Affiliates, consents to the publication by the Lenders of advertising material relating to the
financing transactions contemplated by this Agreement using any Borrower’s or Affiliate’s name, product photographs,
logo or trademark. The Lenders shall provide a draft reasonably in advance of any advertising material to Borrowers for review
and comment prior to the publication thereof. Each Lender reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

 

11.17         Reinstatement.
This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any
Borrower for liquidation or reorganization, should any Borrower become insolvent or make an assignment for the benefit of any creditor
or creditors or should a receiver or trustee be appointed for all or any significant part of any Borrower’s assets, and shall
continue to be effective or to be reinstated, as the case may be, if at any time payment and performance of the Obligations, or
any part thereof, is, pursuant to applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by
any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise,
all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

 

11.18         Advice
of Counsel. Each of the parties represents to each other party hereto that it has discussed this Agreement and, specifically,
the provisions of Sections 11.11 and 11.15, with its counsel.

 

11.19         No
Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

11.20         Effectiveness.
This Agreement shall be binding and deemed effective when executed by Borrowers and the Lenders.

 

11.21         Intentionally
Deleted.

 

11.22         Right
of Set-Off. Any and all deposits or other sums at any time credited by or due to a Borrower from the Applicable Lender or from
any Affiliate of the Applicable Lender, and any cash, securities, instruments or other property of a Borrower in the possession
of any of the foregoing, whether for safekeeping or otherwise (regardless of the reason such Person had received the same) shall
at all times constitute security for any and all Obligations of Borrowers to the Applicable Lender or such Affiliate and may be
applied or set off against the Obligations at any time, whether or not such are then due and whether or not other collateral is
then available to the Applicable Lender or such Affiliate.

 

11.23         Pledges
To Federal Reserve Banks. Nothing included in this Agreement shall prevent or limit the Applicable Lender, to the extent that
the Applicable Lender is subject to any of the twelve Federal Reserve Banks organized under §4 of the Federal Reserve Act
(12 U.S.C. §341) from pledging all or any portion of the Applicable Lender’s interest and rights under this Agreement,
provided, however, neither such pledge nor the enforcement thereof shall release the Applicable Lender from any of its obligations
hereunder or under any of the Loan Documents.

 

    	 	- 84 -	 

     

    

 

11.24         USA Patriot
Act Notice. Each Lender hereby notifies Borrowers that pursuant to the requirements of the USA Patriot Act (Title III
of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies each Borrower, Great American, and their respective Subsidiaries, which information includes the name
and address of each Borrower, Great American, and their respective Subsidiaries, and other information that will allow such Lender
to identify each Borrower, Great American, and their respective Subsidiaries in accordance with the Act. Each Borrower, Great American,
and their respective Subsidiaries are in compliance, in all materials respects, with the Patriot Act. No part of the proceeds of
any Liquidation Borrowing will be used by any Borrower, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for political office, or anyone else acting in official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amendedFCPA.

 

11.25         Canadian
Anti-Money Laundering Legislation. Each Borrower acknowledges that, pursuant to the Canadian Anti-Money Laundering Legislation,
the Lenders may be required to obtain, verify and record information regarding the Borrowers and their respective directors, authorized
signing officers, direct or indirect shareholders or other Persons in control of the Borrowers, and the transactions contemplated
hereby. Each Borrower shall promptly provide all such information, including supporting documentation and other evidence, as may
be reasonably requested by the Lenders or any assignee thereof, in order to comply with any applicable Canadian Anti-Money Laundering
Legislation, whether now or hereafter in existence.

 

11.26         No
Joint Venture. Nothing contained herein shall be deemed or construed to create a partnership or joint venture between any Borrower
and the Lenders.

 

11.27         Judgment
Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other
Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal
banking procedures the Applicable Lender could purchase the first currency with such other currency on the Business Day preceding
that on which final judgment is given. The obligation of each Borrower in respect of any such sum due from it to the Applicable
Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the "Judgment Currency")
other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the "Agreement
Currency"), be discharged only to the extent that on the Business Day following receipt by such the Applicable Lender
of any sum adjudged to be so due in the Judgment Currency, such the Applicable Lender may in accordance with normal banking procedures
purchase the Agreement Currency with the Judgment Currency. If the amount of this Agreement Currency so purchased is less than
the sum originally due to the Applicable Lender from any Borrower in the Agreement Currency, such Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify such the Applicable Lender against such loss. If the amount of the
Agreement Currency so purchased is greater than the sum originally due to such the Applicable Lender in such currency, such the
Applicable Lender may be, agrees to return the amount of any excess to such Borrower (or to any other Person who may be entitled
thereto under applicable Law).

 

    	 	- 85 -	 

     

    

 

11.28         Appointment
for Perfection. The Canadian Lender hereby appoints the U.S. Lender as its agent for the purpose of perfecting Liens, including,
without limitation, for assets which, in accordance with Article 9 of the UCC, the PPSA, the Securities Transfer Act (Ontario)
or any other applicable law can be perfected only by possession or control. Should the Canadian Lender obtain possession or control
of any such Collateral, Canadian Lender shall notify the U.S. Lender thereof, and, promptly upon the U.S. Lender’s request
therefor shall deliver such Collateral to the U.S. Lender or otherwise deal with such Collateral in accordance with the U.S. Lender’s
instructions.

 

11.29         Loss
Sharing. If following the occurrence of an Event of Default and realization upon the Collateral and the Guarantee Agreements,
the U.S. Lender on the one hand and the Canadian Lender on the other hand has suffered or incurred a loss not recovered from available
Collateral, each Lender shall make such payments to the other of them so that the loss is shared by all the Lenders.

 

11.30         Amendment
& Restatement. Upon satisfaction of the conditions precedent to the effectiveness of this Agreement, (a) this Agreement
shall amend and restate the Existing Credit Agreement in its entirety (except to the extent that definitions from the Existing
Credit Agreement are incorporated herein by reference) and (b) the rights and obligations of the parties under the Existing Credit
Agreement shall be subsumed within, and be governed by, this Agreement; provided, however, that Borrowers, GAG Inc.,
and Great American each hereby agree that (y) the Letters of Credit issued pursuant to the Existing Credit Agreement and outstanding
on the Restatement Date (and any outstanding Obligations with respect thereto), shall be hereafter deemed to be Letters of Credit
issued hereunder, and (z) all Obligations under, and as defined in, the Existing Credit Agreement shall remain outstanding, shall
constitute continuing Obligations secured by the Collateral, and this Agreement shall not be deemed to evidence or result in a
novation or repayment and reborrowing of such Obligations and other liabilities.

 

11.31         Appointment
of Hypothecary Representative. Without limiting the powers of the U.S. Lender, for the purposes of holding any hypothec granted
to the Attorney (as defined below) pursuant to the laws of the Province of Québec to secure the prompt payment and performance
of any and all Obligations by any Credit Party, each of the Lenders hereby irrevocably appoints and authorizes the U.S. Lender
and, to the extent necessary, ratifies the appointment and authorization of the U.S. Lender, to act as the hypothecary representative
of the creditors as contemplated under Article 2692 of the Civil Code of Québec (in such capacity, the “Attorney”),
and to enter into, to take and to hold on their behalf, and for their benefit, any hypothec, and to exercise such powers and duties
that are conferred upon the Attorney under any related deed of hypothec.  The Attorney shall:  (a) have the sole and
exclusive right and authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all rights and
remedies given to the Attorney pursuant to any such deed of hypothec and applicable law, and (b) benefit from and be subject to
all provisions hereof with respect to the U.S. Lender mutatis mutandis, including, without limitation, all such provisions
with respect to the liability or responsibility to and indemnification by the Lenders and Credit Parties.  Any person who
becomes a Lender shall be deemed to have consented to and confirmed the Attorney as the person acting as hypothecary representative
holding the aforesaid hypothecs as aforesaid and to have ratified, as of the date it becomes a Lender, all actions taken by the
Attorney in such capacity.

 

11.32         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 Credit Party to honor all of its obligations under any
guaranty in respect of Hedging Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this
Section 11.32 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this
Section 11.32, or otherwise under a guaranty, 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 payment in full of the Obligations. Each Qualified ECP Guarantor intends that this Section 11.32 constitute, and
this Section 11.32 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each
other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

 

    	 	- 86 -	 

     

    

 

11.33         Acknowledgment
and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary
in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion
powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application
of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable
to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-In Action on any such liability,
including, if applicable: (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or
a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity,
or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership
will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document;
or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of
any EEA Resolution Authority.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	- 87 -	 

     

    

 

IN WITNESS WHEREOF, this
Agreement has been duly executed as of the date first written above.

 

	 	GREAT AMERICAN GROUP WF, LLC,
	 	a California limited liability company
	 	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Its.	Authorized Signer
	 	 	 
	 	gA RETAIL, Inc., a California corporation1
	 	 	 
	 	By:  	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title:  	Authorized Signer
	 	 	 
	 	GA RETAIL CANADA, ULC, an unlimited liability company formed under the laws of the Province of British Columbia 2
	 	 	 
	 	By:  	/s/ Phillip J. Ahn
	 	Name: 	Phillip J. Ahn
	 	Title:  	Authorized Signer
	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ Joseph Burt
	 	Name:	Joseph Burt
	 	 	Duly Authorized Signatory

 

 

1 NTD: Added by joinder

2 NTD: Added by joinder

 

    	 	 	 

     

    

 

[ADDITIONAL SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	 	 

     

    

 

ACKNOWLEDGMENT AND AGREEMENT

 

Each of the undersigned hereby
acknowledges and agrees to the provisions of the foregoing Credit Agreement applicable to it, including but not limited to the
first offer provisions set forth in Section 2.1(f)(i); the indemnity provisions set forth in Section 2.11; the
access provisions in Section 2.12, the currency indemnity set forth in Section 2.19(a); the covenants contained
in Sections 6.13 and 6.15; and the provisions of Section 7.22; and agrees to cause Borrowers to, and
take all action necessary to permit Borrowers to, comply with all reporting requirements set forth in Article 5 of the foregoing
Credit Agreement.

 

	 	GREAT AMERICAN GROUP, INC., a Delaware corporation3
	 	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Name:	Phillip J. Ahn
	 	Title:	Chief Financial Officer & Chief  Operating Officer
	 	 	 
	 	GREAT AMERICAN GROUP, LLC, a California limited liability company
	 	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Name:	Phillip J. Ahn
	 	Title:	Chief Financial Officer & Chief  Operating Officer

 

 

3 NTD: Now referred to as, “B.
RILEY FINANCIAL, INC., a Delaware corporation (f/k/a Great American Group, Inc.)”

 

    	 	1	 

     

    

 

Annex II

 

Updated Exhibits

 

(See attached)

 

     

     

    

 

EXHIBIT 2.1(a)(i)

to

CREDIT AGREEMENT

 

(FORM OF) LIQUIDATION LOAN PROPOSAL

 

Reference is made to
that certain Second Amended and Restated Credit Agreement, dated as of July 15, 2013 (including all annexes, exhibits, and schedules
thereto, and as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)
by and between GREAT AMERICAN GROUP WF, LLC, a California limited liability company (the “Original Borrower”),
each other affiliate or subsidiary of Original Borrower that becomes party hereto from time to time (such affiliates, together
with Original Borrower, a “Borrower” and collectively, the “ Borrowers”), WELLS FARGO BANK,
NATIONAL ASSOCIATION (“U.S. Lender”) and WELLS FARGO CAPITAL FINANCE CORPORATION CANADA (“Canadian
Lender” and together with the U.S. Lender, the “Lenders” and each a “Lender”).
Capitalized terms used herein without definition are so used as defined in the Credit Agreement.

 

The undersigned, being
the [________________] of [APPLICABLE BORROWER], hereby certifies that the information provided herein is
true and correct in all material respects based on the information provided by the Merchant or Affiliate of the Merchant
to [APPLICABLE BORROWER].

 

	1.	GENERAL INFORMATION REGARDING MERCHANT AND INVENTORY 

 

	 	(a)	Name of Merchant	 	________________
	 	 	 	 	 
	 	(b)	Anticipated Gross Inventory Amount at Retail	 	$_______________
	 	 	 	 	 
	 	(c)	Anticipated Gross Inventory Amount at Cost	 	$_______________
	 	 	 	 	 
	 	(d)	Anticipated Guaranteed Amount (___% of Gross Inventory Amount at Retail)	 	$_______________

 

	2.	AMOUNT
REQUESTED FOR INVENTORY ADVANCE OR OTHER ASSETS ADVANCE

 

	 	(a)	Proposed Borrower Equity Percentage (aggregate of both Inventory Advances and Other Asset Advances, as applicable)	 	_______________%

 

     

     

    

 

	 	(b)	Proposed Inventory or Other Assets Advance Rate	 	_______________%
	 	 	 	 	 
	 	 	2(a) +	 	 
	 	 	2(b) =	 	 
	 	 	100%	 	 

 

	 	(c)	Choose One of the Following Amounts To Be Used For Calculation: 	 	 

 

	 	(i)	Guaranteed Amount	 	$_______________
	 	 	 	 	 
	 	(ii)	Purchase Price (inclusive of Inventory Advances and Other Asset Advances)	 	$_______________
	 	 	 	 	 
	 	(iii)	Other Agreed Amount to Be Delivered by Borrower to Merchant	 	$_______________
	 	 	 	 	 
	 	(iv)	Letter of Credit Amount	 	$_______________
	 	 	 	 	 
	 	 	Or	 	 
	 	 	 	 	 
	 	(v)	Backend L/C Amount	 	$_______________

 

     

     

    

 

	 	(d)	Borrower Equity Amount (2(a) x the applicable provision of 2(c))	 	$_______________
	 	 	 	 	 
	 	(e)	If 2(c)(i), (ii), (iii) or (iv) applies, then Inventory Advance/Other Assets Advance (2(b) x the applicable provision of 2(c))	 	$_______________

 

	3.	AMOUNT REQUESTED FOR INITIAL EXPENSE ADVANCE

 

	 	(a)	Initial Expenses	 	$_______________
	 	 	 	 	 
	 	(b)	Proposed Inventory or Other Assets Advance Rate (see 2(b) above)	 	_______________%
	 	 	 	 	 
	 	(c)	Initial Expense Advance (3(a) x 3(b))	 	$_______________

 

	4.	TOTAL REVOLVING CREDIT ADVANCE REQUESTED

 

	 	Total Revolving Credit Advance Request	 	$_______________
	 	 	 	 
	 	(Inventory Advance or Other Asset Advance + Initial Expense Advance; (2(e) + 3(c))	 	 

 

IN WITNESS WHEREOF, the
undersigned has executed and delivered this Liquidation Loan Proposal as of the date first set forth above.

 

	 	[APPLICABLE BORROWER]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

Exhibit 2.1(i)

 

THIRD AMENDED AND RESTATED SECURED
PROMISSORY NOTE

 

	Up to $200,000,000	Boston, Massachusetts
	 	April 21, 2017

 

FOR VALUE RECEIVED, the undersigned, together
with any other Person who may be joined from time to time as a Borrower under the Credit Agreement (collectively, the “Borrowers”
and each, a “Borrower”), hereby jointly and severally promise to pay to the order of WELLS FARGO BANK, NATIONAL
ASSOCIATION, successor by merger to WELLS FARGO RETAIL FINANCE, LLC (the “U.S . Lender”) and WELLS FARGO CAPITAL
FINANCE CORPORATION CANADA (the “Canadian Lender”, and together with the U.S. Lender, collectively, the “Lenders”
and each, a “Lender”), as applicable, or their respective assigns, at such places as each Applicable Lender
may designate from time to time in writing, in lawful money of the United States of America and in immediately available funds,
the principal amount of TWO HUNDRED MILLION DOLLARS ($200,000,000), or if less, the aggregate unpaid principal amount of any Liquidation
Borrowing (as defined in the Credit Agreement).

 

All capitalized terms, unless otherwise
defined herein, shall have the meanings assigned to them in that certain Second Amended & Restated Credit Agreement, dated
as of July 15, 2013 (as amended by that certain First Amendment to Credit Agreement and Limited Consent and Waiver, dated May 28,
2014, as further amended by that certain Second Amendment to Credit Agreement, dated as of August 28, 2014, as further amended
by that certain Third Amendment to Credit Agreement and that certain Joinder to Loan Documents each dated as of February 5, 2015,
as further amended by that certain Fourth Amendment to Credit Agreement, dated as of February 19, 2015, as further amended by that
certain Fifth Amendment to Credit Agreement, dated as of June 10, 2016, as further amended by that certain Sixth Amendment and
Joinder to Credit Agreement, dated as of October 5, 2016, as further amended by that certain Seventh Amendment to Credit Agreement,
dated as of April 21, 2017, and as may be further amended, restated, supplemented or otherwise modified, renewed or replaced from
time to time, the “Credit Agreement”) by and between Borrowers and Lenders. This Third Amended and Restated Secured Promissory Note (this “Note”) is issued pursuant to the Credit Agreement and is entitled to the
benefit and security of the Loan Documents provided for therein, to which reference is hereby made for a statement of all of the
terms and conditions under which each Liquidation Borrowing evidenced hereby is made and to be repaid. All of the terms, covenants
and conditions of the Credit Agreement and all other instruments evidencing or securing the indebtedness hereunder, including the
Loan Documents, are hereby made a part of this Note and are deemed incorporated herein, in full. The date and amount of each Liquidation
Borrowing made by any Applicable Lender to any Borrower, the rates of interest applicable thereto and each payment made on account
of the principal thereof, shall be recorded by such Applicable Lender on its books; provided, that the failure of such Applicable
Lender to make any such recordation shall not affect the obligations of any Borrower to make a payment when due of any amount owing
under the Credit Agreement or this Note with respect to the Liquidation Borrowings made by the Lenders to any Borrower.

 

     

     

    

 

Each Applicable Lender’s
books and records concerning Liquidation Borrowings, the accrual of interest thereon, and the repayment of such Liquidation Borrowings,
shall be prima facie evidence of such indebtedness to such Applicable Lender hereunder.

 

The principal amount of the indebtedness
from time to time evidenced hereby shall be payable in the amounts and on the dates specified in the Credit Agreement and, if not
sooner paid in full, on the Revolving Credit Termination Date. Interest on the outstanding principal amount of this Note shall
be paid until such principal amount is paid in full at such rates of interest, including the Default Rate, if applicable, and at
such times as are specified in the Credit Agreement.

 

If any payment or prepayment
on this Note becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such
extension.

 

Upon the occurrence and during the continuance
of any Event of Default, this Note may, as provided in the Credit Agreement, without demand, notice or legal process of any kind,
be declared, and upon such declaration immediately shall become, or upon certain circumstances set forth in the Credit Agreement
may become without declaration, due and payable.

 

No delay or omission
by any Lender in exercising or enforcing any of its powers, rights, privileges, remedies, or discretions hereunder shall operate
as a waiver thereof on that occasion nor on any other occasion. No waiver of any default hereunder shall operate as a waiver of
any other default hereunder, nor as a continuing waiver.

 

In no contingency or event whatsoever, whether
by reason of advancement of the proceeds hereof or otherwise, shall the amount paid or agreed to be paid to the Applicable Lender
for the use, forbearance or detention of money advanced hereunder exceed the Maximum Lawful Rate. If a court of competent jurisdiction
determines in a final order that the rate of interest payable hereunder exceeds the Maximum Lawful Rate, then so long as the Maximum
Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided,
however, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, Borrowers
shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Applicable
Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation
of this paragraph) the interest rate payable since the Closing Date as otherwise provided in this Note. Thereafter, interest hereunder
shall be paid at the rate(s) of interest and in the manner provided in Section 2.4 of the Credit Agreement, unless
and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no
event shall the total interest received by the Applicable Lender pursuant to the terms hereof exceed the amount that the Applicable
Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful
Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal
to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the
provisions of Section 2.4(i) of the Credit Agreement, a court of competent jurisdiction shall finally determine that
the Applicable Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Applicable Lender shall, to the
extent permitted by applicable law, promptly apply such excess in the order specified in Section 2.8 of the Credit
Agreement and thereafter shall refund any excess to Borrowers or as a court of competent jurisdiction may otherwise order.

 

    	 	- 2 -	 

     

    

 

Each Borrower assents to any extension or
other indulgence (including, without limitation, the release or substitution of Collateral) permitted by any Lender with respect
to this Note and/or any Collateral given to secure this Note or any extension or other indulgence with respect to any other liability
or any Collateral given to secure any other liability of the Borrowers or any other person obligated on account of this Note.

 

This Note shall be
binding upon the Borrowers, and upon their respective successors, assigns, and representatives, and shall inure to the benefit
of the Lenders and their respective successors, endorsees, and assigns.

 

Wherever possible each provision of this
Note shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Note
shall be prohibited or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or remaining provisions of this Note.

 

Time is of the essence for this Note. To
the fullest extent permitted by applicable law, each Borrower waives: (a) presentment, demand and protest, and notice of presentment,
dishonor, intent to accelerate, acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension
or renewal of any or all Loan Documents, notes, commercial paper, accounts, contract rights, documents, instruments, chattel paper
and guaranties at any time held by Lenders on which any Borrower may in any way be liable, and hereby ratifies and confirms whatever
Lenders may do in this regard; (b) all rights to notice and a hearing prior to any Lender’s taking possession or control
of, or to any Lender’s replevy, attachment or levy upon, the Collateral or any bond or security that might be required by
any court prior to allowing such Lender to exercise any of its remedies; and (c) the benefit of all valuation, appraisal and exemption
laws.

 

Each Borrower authorizes each Lender to
complete this Note if delivered incomplete in any respect.

 

This Note is delivered to the U.S. Lender,
at the principal offices of the U.S. Lender in Boston, Massachusetts, and shall be governed by the laws of the Commonwealth of
Massachusetts.

 

Each Borrower makes the following waiver
knowingly, voluntarily, and intentionally, and understands that the Lenders, in the establishment and maintenance of their relationship
with the Borrowers contemplated by this Note, is relying thereon. EACH BORROWER, TO THE EXTENT ENTITLED THERETO, WAIVES ANY PRESENT
OR FUTURE RIGHT OF THE BORROWERS OR OF ANY OTHER PERSON LIABLE TO THE LENDERS ON ACCOUNT OF OR IN RESPECT TO THIS NOTE, TO A TRIAL
BY JURY IN ANY CASE OR CONTROVERSY RELATING TO THIS NOTE IN WHICH THE ANY LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY
IS INITIATED BY OR AGAINST ANY LENDER AS PARTY LITIGANTS), WHICH CASE OR CONTROVERSY ARISES OUT OF, OR IS IN RESPECT TO, THIS NOTE.

 

    	 	- 3 -	 

     

    

 

This Note amends, restates, and replaces
in its entirety (but does not repay) the Second Amended and Restated Secured Promissory Note in the principal amount of $100,000,000
dated as July 15, 2013 issued by Great American Group WF, LLC, a California limited liability company, and each of the other Borrowers
that joined as party thereto (the “Prior Note”). This Note is issued not as a payment toward, but as a continuation
of, the obligations of the Borrowers to the Lenders pursuant to the Prior Note. Accordingly, this Note shall not be construed as
a novation or extinguishment of the obligations arising under the Prior Note, and its issuance shall not affect the priority of
any security interest granted in connection with the Prior Note.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

    	 	- 4 -	 

     

    

 

	 	GREAT AMERICAN GROUP WF, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	GA RETAIL, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	GA RETAIL CANADA, ULC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Third Amended and Restated
Note]

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