Document:

Exhibit 10.3

INTERCREDITOR   AGREEMENT THIS INTERCREDITOR AGREEMENT (this "Agreement"), dated as   of October 2, 2019, is by and between Encina Business Credit, LLC, as the ABL   Agent (as defined below) for the ABL Lender Parties (as defined below),   Deerfield Mgmt, L.P., as the Term Loan Agent (as defined below), and the Term   Loan Lenders (as defined below), which such Term Loan Lenders include as of   the date hereof Deerfield Private Design Fund III, L.P. and Deerfield Special   Situations Fund, L.P. R E C I T A L S: A.The ABL Agent, Neos Therapeutics,   Inc., a Delaware corporation (the "Company"), Neos Therapeutics   Brands, LLC, a Delaware limited liability company ("NT Brands"),   Neos Therapeutics, LP, a Texas limited partnership ("NT LP"), and   each of the Subsidiaries of the Company that are or may from time to time   become parties thereto as borrowers in accordance with the terms thereof   (together with the Company, NT Brands and NT LP, collectively the   "Borrowers"), Neos Therapeutics Commercial, LLC, a Delaware limited   liability company, as a “Loan Party Obligor” (as defined in the below-defined   ABL Credit Agreement), PharmaFab Texas, LLC, a Texas limited liability   company (as defined in the below-defined ABL Credit Agreement), the other   Obligors that are or may from time to time become parties thereto as a “Loan   Party Obligor” (as defined in the below-defined ABL Credit Agreement) in   accordance with the terms thereof and the ABL Lenders have entered into that   certain Loan and Security Agreement dated as of the date hereof (such agreement,   as amended, restated, supplemented or otherwise modified from time to time as   permitted hereunder, the "ABL Credit Agreement"), pursuant to which   the ABL Lenders may, subject to the terms and conditions thereof, make loans   and provide other financial accommodations to Borrowers and the other   Obligors secured by liens on and security interests in the Collateral (as   defined herein). B. The Term Loan Lenders, the Company, as a borrower, and   each of the Company’s Subsidiaries that may from time to time become parties   thereto have entered into that certain Facility Agreement dated as of May 11,   2016 (such agreement, as amended, restated, supplemented or otherwise   modified on or prior to the date hereof (and as may be further amended,   restated, supplemented or otherwise modified from time to time as permitted   hereunder), the "Term Credit Agreement"), pursuant to which the   Term Loan Lenders may, subject to the terms and conditions thereof, continue   to make term loans and other financial accommodations to the Company and the   other Obligors secured by liens on and security interests in the Collateral.   C. The ABL Agent, on behalf of the ABL Lender Parties and the Term Loan   Lender Parties desire to enter into this Agreement to, among other things,   confirm the relative priorities of the Liens (as defined herein) of the ABL   Agent, on behalf of the ABL Lender Parties and the Term Loan Agent, on behalf   of the Term Loan Lender Parties, in the assets and properties of the   Obligors. In consideration of the mutual benefits accruing to the ABL Agent,   the other ABL Lender Parties, the Term Loan Agent and the other Term Loan   Lender Parties hereunder, and for other 10587065v23 9/30/2019 3:12 PM 

    

 

good and   valuable consideration, the receipt and sufficiency of which is hereby   acknowledged, the parties hereto do hereby agree as follows: SECTION 1.   DEFINITIONS All terms (whether capitalized or not) defined in the UCC as in   effect in the State of New York, unless otherwise defined herein, shall have   the meanings set forth therein. In addition, as used in this Agreement   (including in the preamble and recitals above), the following terms shall   have the meanings ascribed to them below (all references to any term in the   plural shall include the singular and all references to any term in the   singular shall include the plural): "ABL Agent" shall mean Encina   Business Credit, LLC in its capacity as agent for the ABL Lender Parties, and   its successors and assigns in such capacity (including any New ABL Agent that   is deemed to be the ABL Agent pursuant to Section 2.13(d)). “ABL Cash   Collateral” shall have the meaning assigned to such term in Section 4.2(b).   "ABL Credit Agreement" shall have the meaning assigned to such term   in the Recitals of this Agreement. "ABL Debt" shall mean any and   all obligations, liabilities and indebtedness of every kind, nature and   description owing by any Obligor to the ABL Agent and/or ABL Lenders   evidenced by or arising under the ABL Loan Documents owed to the ABL Lender   Parties or their affiliates, whether direct or indirect, absolute or   contingent, joint or several, due or not due, primary or secondary,   liquidated or unliquidated, including principal, interest, charges, fees,   costs, indemnities and expenses, however evidenced, whether as principal,   surety, endorser, guarantor or otherwise, whether now existing or hereafter   arising, whether arising before, during or after the initial or any renewal   term of the ABL Loan Documents or after the commencement of any Insolvency   Proceeding with respect to any Obligor (and including, without limitation,   the payment of interest, fees, costs and other charges which would accrue and   become due but for the commencement of such Insolvency Proceeding, whether or   not such interest, fees, costs and other charges are allowed or allowable in   whole or in part in any such Insolvency Proceeding), and in each case,   whether or not allowed or allowable in an Insolvency Proceeding. "ABL   Default" shall mean an Event of Default under the ABL Credit Agreement. "ABL   Deficiency Claim" shall mean any portion of the ABL Debt consisting of   an allowed unsecured claim under Section 506(a) of the Bankruptcy Code (or   any similar provision under any other law governing an Insolvency   Proceeding). "ABL Lender Parties" shall mean the ABL Agent and the   ABL Lenders. "ABL Lenders" shall mean the "Lenders" as   defined in the ABL Credit Agreement (including, for the avoidance of doubt,   such Persons (other than, for the avoidance of doubt, any Obligor) now or   hereafter party to the ABL Credit Agreement, and their respective successors   and assigns as contemplated thereunder). -2- 

    

 

"ABL Loan   Documents" shall mean the ABL Credit Agreement and all agreements,   documents and instruments at any time executed and/or delivered by any   Obligor or any other Person with, to or in favor of the ABL Lenders and/or   the ABL Agent in connection therewith or related thereto (including, without   limitation, the "Loan Documents" as defined in the ABL Credit   Agreement), as all of the foregoing now exist or may hereafter be amended,   modified, supplemented, extended, replaced, renewed, Refinanced (to the extent   expressly permitted by this Agreement) or restated, except in violation of   Section 2.13(a). "ABL Loan Maximum Amount" shall mean, as of any   date of determination, the result of the sum of (which amount shall be   increased by the amount of all interest, fees, costs, expenses and   indemnities accrued or charged with respect to any of the ABL Debt in   accordance with the ABL Credit Agreement (other than Excess ABL Debt),   whether or not capitalized, in each case, other than in connection with   amendments, restatements, supplements and other modifications expressly   prohibited by this Agreement, as and when the same accrues or becomes due and   payable, irrespective of whether the same is added to the principal amount of   the ABL Debt (and including the same as would accrue and become due but for   the commencement of an Insolvency Proceeding whether or not such amounts are   allowed or allowable, in whole or in part, in any such Insolvency   Proceeding): (a) the lesser of (i) $27,500,000 minus permanent reductions   with respect to the revolving loan commitments (so long as any repayments   required to be made under the ABL Credit Agreement in connection with such   commitment reductions, if any, have been made, and excluding (A) commitment   reductions in connection with a Refinancing thereof that is expressly   permitted under this Agreement or (B) any termination of commitments upon an   Insolvency Proceeding or the acceleration of the ABL Debt when any ABL Debt   is outstanding at such time), and (ii) the sum of (x) 100% of the Borrowing   Base, plus (y) the Inadvertent Overadvance Amount; plus (b) solely in the   case of a DIP Financing, the lesser of (i) $2,500,000 and (ii) 10% of the   outstanding revolving loan commitments under the ABL Credit Agreement, minus,   with respect to this clause (ii), permanent reductions with respect to the   revolving loan commitments (so long as any repayments required to be made   under the ABL Credit Agreement in connection with such commitment reductions,   if any, have been made, and excluding (A) commitment reductions in connection   with a Refinancing thereof that is expressly permitted under this Agreement   or (B) any termination of commitments upon an Insolvency Proceeding or the   acceleration of the ABL Debt when any ABL Debt is outstanding at such time). "ABL   Loans" shall mean the "Revolving Loans" under (and as defined   in) the ABL Credit Agreement. "ABL Priority Collateral" shall mean   all Collateral of the Obligors consisting of the following (including for the   avoidance of doubt, any such assets that, but for the application of -3- 

    

 

Section 552 of   the Bankruptcy Code (or any similar provision of any foreign Bankruptcy   Laws), would be ABL Priority Collateral): (1) identifiable constituting all   Accounts (other than Accounts constituting Term Loan Priority Collateral or   proceeds of Term Loan Priority Collateral but expressly including Accounts   ABL Priority Inventory A/R Proceeds) and all Returned Goods previously and   directly giving rise to Accounts that are not Term Loan Priority Collateral or   proceeds thereof (which proceeds, shall not include, for the avoidance of   doubt, any ABL Priority Inventory A/R Proceeds); (2) all ABL Priority   Inventory A/R Proceeds; (3) all cash, money and cash equivalents (other than   cash, money and cash equivalents (i) constituting Term Loan Priority   Collateral or identifiable proceeds of Term Loan Priority Collateral (other   than, for the avoidance of doubt, cash solely and directly generated from   sales of Inventory giving rise to Accounts except to the extent expressly set   forth in clause (1) above) or (ii) held in or on deposit in the Term Priority   Deposit Account, except solely to the extent constituting identifiable cash   proceeds of ABL Priority Collateral)); (4) all ABL Priority Deposit Accounts   and all cash held therein except, in each case, (i) identifiable Term Loan   Priority Collateral or identifiable proceeds thereof or (ii) cash held in or   on deposit in the Term Priority Deposit Account (except solely to the extent   constituting identifiable cash proceeds of ABL Priority Collateral); (5)   solely to the extent evidencing or governing any of the items referred to in   the preceding clauses (1) through (3) constituting ABL Priority Collateral   and not otherwise specifically referenced therein, all Documents, General Intangibles   (including all rights under contracts but excluding any Intellectual Property   and any Equity Interests), Instruments (including Promissory Notes), and   Chattel Paper (including Tangible Chattel Paper and Electronic Chattel   Paper); (6)to the extent solely and directly both relating to and supporting   any of the items referred to in the preceding clauses (1) through (4)   constituting ABL Priority Collateral, all Supporting Obligations and   Letter-of-Credit Rights; (7)all Books and Records reasonably relating to,   evidencing or governing the items referred to in the preceding clauses (1)   through (5) constituting ABL Priority Collateral (including all books,   databases, customer lists, engineer drawings, and Records, whether tangible   or electronic, which contain any specific information relating to, evidencing   or governing any of the items referred to in the preceding clauses (1)   through (5) constituting ABL Priority Collateral but, in each case, excluding   any Intellectual Property and any Books and Records with respect to Equity   Interests); provided that to the extent that any of the foregoing also   evidence, govern, secure or otherwise reasonably relate to any Term Loan   Priority Collateral, only that portion that separately evidences, governs,   secures or reasonably relates to the ABL Priority Collateral shall constitute   ABL Priority Collateral; and (8) all cash, money, cash equivalents, insurance   proceeds (including, proceeds or rights to the extent received on account of   losses related to the foregoing, but, for the avoidance -4- 

    

 

of doubt,   excluding any proceeds, payments, other amounts or other items from business   interruption insurance or representation and warranty insurance (which shall   not be ABL Priority Collateral under any circumstance)), Instruments,   Securities and Financial Assets received as proceeds of any of the foregoing;   and all Proceeds of any of the items referred to in the preceding clauses (1)   through (6). Notwithstanding anything to the contrary in this Agreement and   for the avoidance of doubt, except as expressly set forth above, ABL Priority   Collateral shall not include any Inventory, Equipment, Equity Interests,   Intellectual Property, Securities Accounts (and all cash, cash equivalents,   assets and other items located or maintained therein except to the extent   constituting identifiable proceeds of ABL Priority Collateral), Commodity   Accounts (and all cash, cash equivalents, assets and other items located or   maintained therein except to the extent constituting identifiable proceeds of   ABL Priority Collateral), the Term Priority Deposit Accounts (except solely   to the extent constituting identifiable cash proceeds of ABL Priority   Collateral), Goods, Fixtures, leasehold interests, Investment Property,   Chattel Paper, Instruments, General Intangibles, business interruption   insurance proceeds, representation and warranty insurance proceeds, tax   refunds and tax rebates and any proceeds of any of the foregoing; provided   that ABL Priority Collateral shall expressly include Accounts constituting   ABL Priority Inventory A/R Proceeds. "ABL Priority Debt" shall mean   all ABL Debt, excluding any portion of principal which exceeds the ABL Loan   Maximum Amount, and any interest, charges, fees, premiums and expenses on   account, or in respect, of such excess portion. “ABL Priority Deposit   Accounts” shall mean the collection Deposit Accounts, lockbox accounts and   Deposit Accounts of the Obligors into which proceeds of revolving loans under   the ABL Credit Agreement are directly funded, in each case, that are (a)   maintained at First Republic Bank (routing number with account number or and   (b) agreed to in writing between the ABL Agent and the Term Loan Lenders to   be an ABL Priority Deposit Account. “ABL Priority Inventory A/R Proceeds”   shall mean all Accounts that are Proceeds of Inventory from the sales of   Inventory in the ordinary course of business of the Obligors, whether or not   an Insolvency Proceeding has been commenced by any Obligor. “ABL Purchase   Price” shall have the meaning assigned to such term Section 3.2. "ABL   Secured Claim" shall mean any portion of the ABL Debt not constituting   an ABL Deficiency Claim. "Account" shall mean, as to any Obligor,   any "account" as defined in the UCC. "Affiliate" shall   mean, with respect to any Person, any other Person that directly or   indirectly: controls, or is controlled by, or is under common control with,   such (a) Person; or -5- 

    

 

is a general   partner, manager or managing member of such Person. (b) Without limiting the   foregoing, a Person shall be deemed to be “controlled by” any other Person if   such Person possesses, directly or indirectly, power to vote ten percent   (10%) or more of the securities (on a fully diluted basis) having ordinary   voting power for the election of directors or managers or power to direct or   cause the direction of the management and policies of such Person whether by   contract or otherwise. Unless expressly stated otherwise herein, no Term Loan   Lender Party (regardless of whether it owns any Equity Interests in any   Obligor or any of its Subsidiaries) shall be deemed an Affiliate of any   Obligor or any of its Subsidiaries. "Agent" and "Agents"   shall mean, individually or collectively as the context may require, the ABL   Agent and the Term Loan Agent, and their respective successors and assigns.   "Agreement" shall have the meaning assigned to such term in the   Preamble of this Agreement. “Applicable ABL Prepayment Premium Amount” shall   have the meaning assigned to such term Section 3.2. “Assignment Agreement”   shall mean that certain Form of Assignment and Assumption attached hereto as   Exhibit B (or such other assignment agreement agreed to between the ABL Agent   and the Term Loan Lender Parties). "Bankruptcy Code" shall mean the   provisions of title 11 of the United States Code, 11 U.S.C. §§101 et seq.   "Bankruptcy Laws" shall mean the Bankruptcy Code and any other U.S.   federal, state or foreign bankruptcy, insolvency, receivership, assignment   for the benefit of creditors or similar law affecting creditors' rights.   "Books and Records" shall mean all books, records, ledger cards,   files, correspondence, customer lists, invoices, blueprints, technical   specifications, manuals, computer software, computer printouts, tapes, disks   and other electronic storage media and related data processing software and   similar items that at any time evidence or contain information directly   relating to any of the Collateral or are otherwise necessary in the   collection thereof or realization thereupon. "Borrowers" shall have   the meaning assigned to such term in the Recitals of this Agreement.   "Borrowing Base" shall mean the "Borrowing Base" as   defined in the ABL Credit Agreement as in effect on the date hereof and as   determined by the ABL Agent in accordance with the ABL Credit Agreement as in   effect on the date hereof based upon the most recent "Borrowing Base   Certificate" (or similar report in any ABL Credit Agreement delivered in   connection with the ABL Loan Documents or the ABL Debt) received by the ABL   Agent. "Business Day" shall mean any day other than a Saturday,   Sunday or other day on which commercial banks in New York are authorized or   required to close. -6- 

    

 

“Cash   Collateral” shall have the meaning assigned to such term in Section 4.2(b).   "Collateral" shall mean all assets and properties of any kind   whatsoever, real or personal, tangible or intangible and wherever located,   whether now owned or hereafter acquired, of any Obligor on which a Lien is   granted under any of the Documents. “Company” shall have the meaning assigned   to such term in the Recitals of this Agreement. "Debt" shall mean,   individually or collectively as the context requires, the ABL Debt and the   Term Debt. "Default" shall mean an "Event of Default" or   similar term, as such terms are defined in the ABL Credit Agreement, and an   "Event of Default" or similar term, as such terms are defined in   the Term Credit Agreement, in each case of the foregoing, so long as any such   agreement is in effect. “DIP Financing” shall have the meaning assigned to such   term in Section 4.2(b). "Documents" shall mean, collectively, the   ABL Loan Documents and the Term Loan Documents. "Enforcement   Action" shall mean (i) the exercise of any rights and remedies in   respect of the Collateral by (or on behalf of) the applicable Lender or Lenders,   (ii) any action by (or on behalf of) any applicable Lender to foreclose on   the Lien of such Person in any Collateral, (iii) any action by (or on behalf   of) any applicable Lender to take possession of, sell or otherwise realize   (judicially or non-judicially) upon any Collateral (including, without   limitation, by setoff or notification of account debtors), (iv) a sale of ABL   Priority Collateral or Term Loan Priority Collateral to a third party during   the existence of a Default under the ABL Loan Documents or the Term Loan   Documents, as the case may be, at the direction of, or with the consent of,   the applicable Lenders, (v) the commencement by (on behalf of) any applicable   Lender of any legal proceedings against any Obligor or with respect to any Collateral   to facilitate the actions described in clauses (i) through (iv) above, and/or   (vi) the exercise of cash dominion or a cash sweep under any deposit account   control agreement covering any Collateral solely to the extent such action is   coupled with (x) an action to take possession of ABL Priority Collateral, (y)   the commencement of any legal proceedings or actions against or with respect   to any Obligor of ABL Priority Collateral or (z) an application to the ABL   Loans that is accompanied by a corresponding permanent reduction in   commitments under the ABL Credit Agreement. For purposes hereof, the   establishment by the ABL Agent of borrowing base reserves, collateral   ineligibles, or other similar conditions for limiting or restricting   availability or amounts of advances shall not be deemed to be an Enforcement   Action (in each case, other than, for the avoidance of doubt, any condition   or action that concerns the reduction or termination of any commitments under   the ABL Credit Agreement or the acceleration of any ABL Debt).   "Enforcement Notice" shall mean a written notice delivered, at a   time when a Default has occurred and is continuing, either by (i) the ABL   Agent notifying the Term Loan Lender Parties that it intends to commence an   Enforcement Action with respect to the ABL Priority Collateral -7- 

    

 

or (ii) any   Term Loan Lender Party notifying the ABL Agent that it or another Term Loan   Lender Party intends to commence an Enforcement Action with respect to any of   the Collateral. "Equipment" shall mean, as to any Obligor, all   machinery, apparatus, equipment, fittings, furniture, fixtures, motor   vehicles and other tangible personal property (other than, in any event,   Inventory, Accounts, chattel paper, commercial tort claims, deposit accounts,   documents, general intangibles, instruments, investment property, letter of   credit rights, letters of credit, money, documents, contracts, copyrights,   patents, trademarks or other intellectual property) of every kind and   description of such Obligor, including "Equipment" as defined in   the UCC. "Equity Interest" shall mean (a) all shares of capital   stock (whether denominated as common stock or preferred stock), equity   interests, beneficial, partnership or membership interests, joint venture   interests, participations or other ownership or profit interests in or equivalents   (regardless of how designated) of or in a Person (other than an individual),   whether voting or non-voting; and (b) all securities convertible into or   exchangeable for any other equity interests or Stock and all warrants,   options or other rights to purchase, subscribe for or otherwise acquire any   other equity interests or Stock, whether or not presently convertible,   exchangeable or exercisable. "Excess ABL Debt" shall mean any ABL   Debt not constituting ABL Priority Debt. "Excess Term Debt" shall   mean any Term Debt not constituting Term Priority Debt. "Exigent   Circumstances" shall mean an event or circumstance that materially and   imminently threatens the ability of the Term Loan Agent or the ABL Agent, as   applicable, to realize upon all or a material portion of the Term Loan   Priority Collateral or the ABL Priority Collateral, respectively, such as,   without limitation, fraudulent removal, concealment, destruction (other than   to the extent covered by insurance), material waste or abscondment thereof to   all or any material portion of such Term Loan Priority Collateral or ABL   Priority Collateral (as applicable). "Inadvertent Overadvance   Amount" shall mean, as of any date of determination, loans outstanding   under the ABL Credit Agreement that were made or issued, as applicable,   without actual knowledge after reasonably diligent inquiry (which shall   include reviewing and analyzing the Borrowing Base Certificate (as defined in   the ABL Credit Agreement on the date hereof) most recently delivered prior to   such funding or issuance) that such loans would cause the aggregate   outstanding principal amount of all such loans to exceed the amount of the   Borrowing Base at the time such loan was made. "Insolvency   Proceeding" shall mean, as to any Person, any insolvency, bankruptcy,   receivership, custodianship, liquidation, dissolution, reorganization,   assignment for the benefit of creditors or other proceeding for the   liquidation, dissolution or other winding up of any Obligor or any of their   respective properties. “Intellectual Property” shall mean any and all of the   following, whether arising under United States, multinational or foreign laws   or otherwise: (a) all patents, patent applications, patent licenses, patent   disclosures and inventions (whether patentable or unpatentable and whether or   not reduced to practice), (b) all trademarks, trademark licenses, service   marks, -8- 

    

 

trade dress,   trade names, slogans, logos, and corporate names and Internet domain names,   together with all of the goodwill associated with each of the foregoing, (c)   copyrights, copyrightable works and copyright licenses, (d) registrations and   applications for registration for any of the foregoing, (e) computer software   (including but not limited to source code and object code), data, databases,   and documentation thereof, (f) trade secrets and other confidential   information, (g) all rights to sue at law or in equity for any infringement   or other impairment thereof, including the right to receive all proceeds and   damages therefrom, (h) other intellectual property, (i) all assets,   properties, rights, interests, priorities and privileges with respect to the   foregoing, and (j) copies and tangible embodiments of the foregoing (in   whatever form and medium). "Inventory" shall have the meaning ascribed   to the term "inventory" in the UCC, and in any event shall include   all goods intended for sale or lease, or for display or demonstration, all in   the ordinary course of business; all work in process, all raw materials, and   other materials and supplies of every nature and description used or which   might be used in connection with the manufacture, labeling, packing,   shipping, advertising, selling, leasing, furnishing or production of such   goods or otherwise consumed in any Obligor's business (but excluding   Equipment). “Irrevocable Purchase Exclusion” shall have the meaning assigned   to such term Section 3.1. “Junior 507(b) Claim” shall have the meaning   assigned to such term in Section 4.2(b). "Junior Secured Creditor"   has the meaning assigned to such term in the definition of "Senior   Secured Creditor". "Lender" and "Lenders" shall   mean, individually or collectively as the context may require, the ABL Lender   Parties and the Term Loan Lender Parties, and their respective successors and   assigns. "Lien" shall mean any mortgage or deed of trust, pledge,   hypothecation, assignment, deposit arrangement, lien, charge, claim, security   interest, easement or encumbrance, or preference, priority or other security   agreement or preferential arrangement of any kind or nature whatsoever   (including any lease or title retention agreement, any financing lease having   substantially the same economic effect as any of the foregoing, and the   filing of, or agreement to give, any financing statement perfecting a   security interest under the UCC or comparable law of any jurisdiction).   "New ABL Agent" shall have the meaning assigned to such term in in   Section 2.13(d). "New ABL Debt" shall have the meaning assigned to   such term in in Section 2.13(d). "New ABL Documents" shall have the   meaning assigned to such term in in Section 2.13(d). "New Term   Debt" shall have the meaning assigned to such term in in Section   2.13(c). -9- 

    

 

"New Term   Loan Agent" shall have the meaning assigned to such term in in Section   2.13(c). "New Term Loan Documents" shall have the meaning assigned   to such term in in Section 2.13(c). “NT Brands” shall have the meaning   assigned to such term in the Recitals of this Agreement. “NT LP” shall have   the meaning assigned to such term in the Recitals of this Agreement.   "Obligors" shall mean, individually and collectively, Company and   each of its Subsidiaries liable on or in respect of Term Debt or ABL Debt,   and each of their successors and assigns, including, without limitation, a   receiver, trustee or debtor-in-possession on behalf of such Person or on   behalf of any such successor or assign. "Ordinary Course   Collections" shall mean any receipt or application of the proceeds of   ABL Priority Collateral, or proceeds thereof, received in the ordinary course   of business, and not as a result of any Enforcement Action, which are   promptly applied to outstanding ABL Loans as a reduction of the outstanding   amount thereof. "Payment in Full" or "Paid in Full" shall   mean (i) when used in connection with the ABL Debt (or ABL Priority Debt, as   applicable), (a) the termination or expiration of the revolving loan   commitments (or such lower amount of commitments making up ABL Priority Debt,   as applicable) of the ABL Lenders under the ABL Loan Documents, (b) the   payment in full in cash (or other consideration acceptable to the ABL Lenders   in their sole discretion) of the principal and interest on all outstanding   ABL Debt (or the ABL Priority Debt, as applicable) (including any such   amounts which would accrue and become due but for the commencement of an   Insolvency Proceeding, whether or not such amounts are allowed or allowable   in whole or in part in such case), and (c) the payment or, in the case of   contingent obligations, cash collateralization in full in cash (or other   consideration acceptable to the ABL Lenders in their sole discretion), of all   other ABL Debt (or ABL Priority Debt, as applicable) (including   indemnification obligations in respect of known contingencies and fees, costs   or charges accruing on or after the commencement of an Insolvency Proceeding,   whether or not such fees, costs or charges would be allowed or allowable in   such Insolvency Proceeding) that are due and payable or otherwise accrued and   owing at or prior to the time the amounts referenced in clause (a) above are   paid or are reasonably expected to be incurred by ABL Agent within a   reasonable time thereafter and evidenced by reasonably detailed information   certified as true, correct and complete by an officer of the ABL Agent (other   than expense reimbursement obligations and contingent indemnification   obligations for which no claim or demand for payment, whether oral or   written, has been made at such time); provided that if after receipt of any   payment of, or Proceeds of Collateral applied to the payment of, the ABL Debt   (or the ABL Priority Debt, as applicable), the ABL Agent or any other ABL   Lender Party is required to surrender or return such payment or proceeds to   any person for any reason, -10- 

    

 

then the ABL   Debt (or the ABL Priority Debt, as applicable) intended to be satisfied by   such payment or proceeds shall be reinstated and continue, and this Agreement   shall continue in full force and effect as if such payment or proceeds had   not been received by the ABL Agent or such other ABL Lender Party, as the   case may be, and no Payment in Full of the ABL Debt (or the ABL Priority   Debt, as applicable) shall be deemed to have occurred; and (ii) when used in   connection with the Term Debt (or Term Priority Debt, as applicable), (a) the   payment in full in cash (or other consideration acceptable to the Term Loan   Lenders in their sole discretion) outstanding Term Debt (or Term Priority   Debt, amounts which would accrue and become due of the principal and interest   on all as applicable) (including any such but for the commencement of an   Insolvency Proceeding, whether or not such amounts are allowed or allowable   in whole or in part in such case), (b) the payment or, in the case of   contingent obligations, cash collateralization in full in cash (or other   consideration acceptable to the Term Loan Lenders in their sole discretion),   of all other Term Debt (or Term Priority Debt, as applicable) (including   indemnification obligations in respect of known contingencies and fees, costs   or charges accruing on or after the commencement of an Insolvency Proceeding,   whether or not such fees, costs or charges would be allowed or allowable in   such Insolvency Proceeding) that are due and payable or otherwise accrued and   owing at or prior to the time the amounts referenced in clause (a) above are   paid or are reasonably expected to be incurred by Term Loan Lender Parties   within a reasonable time thereafter and evidenced by reasonably detailed   information certified as true, correct and complete by officer(s) of the   applicable Term Loan Lenders (other than expense reimbursement obligations   and contingent indemnification obligations for which no claim or demand for   payment, whether oral or written, has been made at such time) and (c) the   termination or expiration of all commitments to extend credit that would be   Term Debt (or the Term Priority Debt, as applicable); provided that if after   receipt of any payment of, or Proceeds of Collateral applied to the payment   of, the Term Debt (or the Term Priority Debt, as applicable), the Term Loan   Agent or any other Term Loan Lender Party is required to surrender or return   such payment or proceeds to any person for any reason, then the Term Debt (or   the Term Priority Debt, as applicable) intended to be satisfied by such   payment or proceeds shall be reinstated and continue, and this Agreement   shall continue in full force and effect as if such payment or proceeds had   not been received by the Term Loan Agent or such other Term Loan Lender   Party, as the case may be, and no Payment in Full of the Term Debt (or the   Term Priority Debt, as applicable) shall be deemed to have occurred.   "Payment Waterfall" shall mean: (i) in connection with the   application, payment or distribution of proceeds of any ABL Priority   Collateral (including without limitation in connection with any prepayment of   the ABL Debt received pursuant to the ABL Loan Documents as a result of the   disposition of any ABL Priority Collateral but excluding Ordinary Course   Collections) pursuant to the applicable terms hereof, the following order:   (A) first, to the ABL Agent to be applied pursuant to the ABL Loan Documents   until the ABL Priority Debt has been Paid in Full; (B) second, to the Term   Loan Agent to be applied pursuant to the Term Loan Documents until the Term   Priority Debt has -11- 

    

 

been Paid in   Full; (C) third, to the ABL Agent to be applied to the Excess ABL Debt until   Paid in Full and (D) fourth, to the Term Loan Agent to be applied to the   Excess Term Debt until Paid in Full; and (ii) in connection with the   application, payment or distribution of proceeds of any Term Loan Priority   Collateral (including without limitation in connection with any prepayment of   the Term Debt received pursuant to the Term Loan Documents as a result of the   disposition of any Term Loan Priority Collateral) pursuant to the applicable   terms hereof, the following order: (A) first, to the Term Loan Agent to be   applied pursuant to the Term Loan Documents until the Term Debt has been Paid   in Full; and (B) second, to the ABL Agent to be applied pursuant to the ABL   Loan Documents until the ABL Debt has been Paid in Full. "Person"   or "person" shall mean any individual, sole proprietorship,   partnership, joint venture, trust, unincorporated organization, association,   corporation, limited liability company, institution, public benefit   corporation, other entity or government (whether federal, state, county,   city, municipal, local, foreign, or otherwise, including any instrumentality,   division, agency, body or department thereof). “Prior ABL Agent” shall have   the meaning assigned to such term in Section 3.8. “Purchase Date” shall have   the meaning assigned to such term in Section 3.2. "Purchase   Deadline" shall have the meaning assigned to such term in Section 3.1.   "Purchase Notice" shall have the meaning assigned to such term   Section 3.1. “Purchase Trigger Notice” shall have the meaning assigned to   such term Section 3.1. "Refinance" shall mean, in respect of any   ABL Debt or Term Debt or the commitments related thereto, to refinance,   replace, refund, or repay, or to issue other Debt or commitments in exchange   or replacement for such Debt or commitments relating thereto (whether or not   fully utilized) in whole or in part, whether with the same or different   lenders, agents, or arrangers. “Refinanced” and “Refinancing” have correlative   meanings. “Required ABL Purchase Option Information” shall have the meaning   assigned to such term Section 3.1. “Restricted Accounts” shall mean Deposit   Accounts (a) established and used (and at all times will be used) solely for   the purpose of paying current payroll obligations of the Obligors (and which   do not (and will not at any time) contain any deposits other than those   necessary to fund current payroll), in each case, in the ordinary course of   business, or (b) maintained (and at all times will be maintained) solely in   connection with an employee benefit plan of an Obligor, but solely to the   extent that all funds on deposit therein are solely held for the benefit of,   and owned by, employees of such Obligor (and will continue to be so held and   owned) pursuant to such plan, in each case, in the ordinary course of   business. “Retained Interest” shall have the meaning assigned to such term in   Section 3.5. -12- 

    

 

"Returned   Goods" shall mean all right, title and interest of any Obligor in and to   returned, repossessed, reclaimed, traded-in or foreclosed upon Inventory, the   sale of which previously and directly gave rise to an Account. “SEC” shall   mean the United States Securities and Exchange Commission. "Senior   Secured Creditor" shall mean any Lender in its capacity as a secured   creditor with a Lien on Collateral that is senior to the Liens of any other   Lender with respect to such Collateral (such Lender with a junior Lien, in   such capacity, a “Junior Secured Creditor”) in accordance with the Lien   priorities set forth in this Agreement, including Section 2.1. “Stock” means   (a) all shares of capital stock (whether denominated as common stock or   preferred stock), equity interests, beneficial, partnership or membership   interests, joint venture interests, participations or other ownership or   profit interests in or equivalents (regardless of how designated) of or in a   Person (other than an individual), whether voting or non-voting; and (b) all   securities convertible into or exchangeable for any other Stock and all   warrants, options or other rights to purchase, subscribe for or otherwise   acquire any other Stock, whether or not presently convertible, exchangeable   or exercisable. "Subsidiary" shall mean, as to any Person, any   entity or other Person of which securities or other ownership interests   having ordinary voting power to elect a majority of the board of directors or   other persons performing similar functions are at the time directly or   indirectly owned by such Person. Unless the context otherwise requires, each   reference to Subsidiaries herein shall be a reference to Subsidiaries of the   Company. “Tail Period” shall have the meaning assigned to such term in   Section 3.2. "Term Credit Agreement" shall have the meaning   assigned to such term in the Recitals of this Agreement. "Term   Debt" shall mean all obligations, liabilities and indebtedness of every   kind, nature and description owing by any Obligor to the Term Loan Agent   and/or Term Loan Lenders evidenced by or arising under the Term Loan Documents,   whether direct or indirect, absolute or contingent, joint or several, due or   not due, primary or secondary, liquidated or unliquidated, including   principal, interest, charges, fees, costs, indemnities and expenses, however   evidenced, whether as principal, surety, endorser, guarantor or otherwise,   whether now existing or hereafter arising, whether arising before, during or   after the initial or any renewal term of the Term Loan Documents or after the   commencement of any Insolvency Proceeding with respect to any Obligor (and   including, without limitation, the payment of interest, fees, costs and other   charges which would accrue and become due but for the commencement of such   Insolvency Proceeding, whether or not such interest, fees, costs and other   charges are allowed or allowable in whole or in part in any such Insolvency   Proceeding), and in each case, whether or not allowed or allowable in an   Insolvency Proceeding. "Term Loan Agent" shall mean Deerfield Mgmt,   L.P., in its capacity as collateral agent for the Term Loan Lender Parties,   and its successors and assigns in such capacity (including any New Term Loan   Agent that is deemed to be the Term Loan Agent pursuant to Section 2.13(c)).   -13- 

    

 

“Term Loan Cash   Collateral” shall have the meaning assigned to such term in Section 4.2(c).   "Term Loan Cash Proceeds Notice" shall mean a written notice   delivered by the Term Loan Agent, any other Term Loan Lender Party or any   Obligor to the ABL Agent stating that certain cash proceeds which may be deposited   in any Obligor's ABL Priority Deposit Accounts constitute Proceeds of Term   Loan Priority Collateral, and reasonably identifying the amount of such   Proceeds and the origin thereof. "Term Loan Default" shall mean an   Event of Default under the Term Credit Agreement. "Term Loan Deficiency   Claim" shall mean any portion of the Term Debt consisting of an allowed   unsecured claim under Section 506(a) of the Bankruptcy Code (or any similar   provision under any other law governing an Insolvency Proceeding). "Term   Loan Documents" shall mean the Term Credit Agreement and all agreements,   documents and instruments at any time executed and/or delivered by any   Obligor or any other Person with, to or in favor of Term Loan Lenders and/or   the Term Loan Agent in connection therewith or related thereto (including,   without limitation, the "Loan Documents", as defined in the Term   Credit Agreement), as all of the foregoing now exist or may hereafter be   amended, modified, supplemented, extended, replaced, renewed, Refinanced (to   the extent expressly permitted by this Agreement) or restated, except in   violation of Section 2.13(b). "Term Loan Lender Parties" shall mean   the Term Loan Agent and the Term Loan Lenders. "Term Loan Lenders"   shall mean the "Lenders" as defined in the Term Credit Agreement   (including, for the avoidance of doubt, such Persons (other than, for the   avoidance of doubt, any Obligor) now or hereafter party to the Term Credit   Agreement, and their respective successors and assigns as contemplated   thereunder). "Term Loan Maximum Amount" shall mean, as of any date   of determination, the result of the sum of (which amount shall be increased   by the amount of all interest, fees, costs, expenses and indemnities accrued   or charged with respect to any of the Term Debt in accordance with the Term   Credit Agreement (other than Excess Term Debt), whether or not capitalized,   in each case, other than in connection with amendments, restatements,   supplements or other modifications expressly prohibited by this Agreement as   and when the same accrues or becomes due and payable, irrespective of whether   the same is added to the principal amount of the Term Debt (and including the   same as would accrue and become due but for the commencement of an Insolvency   Proceeding whether or not such amounts are allowed or allowable, in whole or   in part, in any such Insolvency Proceeding): (a) $49,500,000; plus (b) solely   in the case of a DIP Financing, 10% of the outstanding principal amount of   Term Debt (other than Excess Term Debt) outstanding as of the date of the   commencement of such Insolvency Proceeding; minus -14- 

    

 

(c) the   aggregate amount of all principal payments of the Term Debt (other than in   connection with a Refinancing thereof expressly permitted by this Agreement, subject   to Section 2.2(d)). "Term Loan Priority Collateral" shall mean all   assets and properties of any kind whatsoever, real, personal or mixed,   tangible or intangible, and wherever located of any Obligor, including all   Equity Interests of the Obligors (other than the Company), and all proceeds   thereof, other than any of the foregoing that constitutes ABL Priority   Collateral. Term Loan Priority Collateral shall include, in any event, the   following property of the Obligors: goods, fixtures, Equipment, Inventory,   leasehold interests, investment property, intellectual property, Equity   Interests, chattel paper, instruments, general intangibles, tax refunds, tax   rebates, business interruption insurance proceeds, representation and   warranty proceeds, all Term Priority Deposit Accounts, Securities Accounts   (and all cash, cash equivalents, assets and other items therein, except to   the extent constituting identifiable proceeds of ABL Priority Collateral),   Commodity Accounts (and all cash, cash equivalents, assets and other items   therein, except to the extent constituting identifiable proceeds of ABL   Priority Collateral), and all other assets and proceeds and products of the   foregoing, in each case, other than those that are expressly defined as ABL   Priority Collateral. "Term Loan Secured Claim" shall mean any   portion of the Term Debt not constituting a Term Loan Deficiency Claim.   "Term Priority Debt" shall mean all Term Debt, in each case,   excluding any portion of principal which exceeds the Term Loan Maximum   Amount, and any interest, charges, fees, premiums and expenses (in each case,   which may include paid in-kind amounts that may be added to such principal)   on account, or in respect, of such excess portion. “Term Priority Deposit   Accounts” shall mean all Deposit Accounts of the Obligors that are (a)   maintained at First Republic Bank (routing number with account number or (b)   agreed to in writing between the ABL Agent and the Term Loan Lenders to be a   Term Priority Deposit Account. "Term Purchasing Lenders” shall have the   meaning assigned to such term Section 3.1. “Triggering Event” shall have the   meaning assigned to such term Section 3.6. "UCC" shall mean the   Uniform Commercial Code, as amended and in effect in any applicable   jurisdiction. SECTION 2. PAYMENTS; SECURITY INTERESTS; PRIORITIES; REMEDIES   2.1 The ABL Agent, on behalf of the ABL Lender Parties, hereby acknowledges   that the Term Loan Agent, for the benefit of itself and the other Term Loan   Lender Parties, has been granted Liens upon all of the Collateral pursuant to   the Term Loan Documents to secure the Term Debt. The Term Loan Agent and the   other Term Loan Lenders party hereto hereby acknowledges that the ABL Agent,   for the benefit of itself and the other ABL Lender Parties, has been granted   Liens upon all of the Collateral pursuant to the ABL Loan Documents to secure   the ABL Debt. -15- 

    

 

2.2 (a)   Notwithstanding the order or time of attachment, or the order, time or manner   of perfection, or the order or time of filing or recordation of any document   or instrument, or other method of perfecting a Lien in favor of a Lender in   any Collateral, and notwithstanding any conflicting terms or conditions which   may be contained in any of the Documents: (i) the Liens of the ABL Agent upon   the ABL Priority Collateral, to the extent that such Liens secure the ABL   Priority Debt, have and shall have priority over the Liens of the Term Loan   Agent upon the ABL Priority Collateral (and such Liens of the Term Loan Agent   are and shall be junior and subordinate to the Liens of the ABL Agent upon   the ABL Priority Collateral, to the extent that such Liens secure the ABL   Priority Debt); (ii) the Liens of the ABL Agent upon the ABL Priority   Collateral, to the extent that such Liens secure the Excess ABL Debt, are and   shall (x) be junior and subordinate to the Liens of the Term Loan Agent upon   the ABL Priority Collateral to the extent such Liens secure the Term Priority   Debt (and such Liens of the Term Loan Agent, to the extent such Liens secure   the Term Priority Debt, have and shall have priority over the Liens of the   ABL Agent upon the ABL Priority Collateral, to the extent that such Liens   secure the Excess ABL Debt) and (y) have priority over the Liens of the Term   Loan Agent upon the ABL Priority Collateral to the extent such Liens secure   the Excess Term Debt (and such Liens of the Term Loan Agent, to the extent   such Liens secure the Excess Term Debt, are and shall be junior and   subordinate to the Liens of the ABL Agent upon the ABL Priority Collateral);   and (iii) the Liens of the Term Loan Agent upon the Term Loan Priority   Collateral, to the extent that such Liens secure the Term Debt, have and   shall have priority over the Liens of the ABL Agent upon the Term Loan   Priority Collateral (and such Liens of the ABL Agent are and shall be junior   and subordinate to the Liens of the Term Loan Agent upon the Term Loan   Priority Collateral, to the extent that such Liens secure the Term Debt). (b)   Nothing contained in this Agreement will waive any Term Loan Default   resulting from the incurrence of Excess ABL Debt. Nothing contained in this   Agreement will waive any ABL Default resulting from the incurrence of Excess   Term Debt. (c) The parties hereto acknowledge and agree that (1) the Obligors   are and shall remain the same in respect of the ABL Debt and the Term Debt,   (2) each of the ABL Debt and the Term Debt are secured solely by the Collateral,   and (3) it is their intention that, the Collateral securing the ABL Debt and   the Collateral securing the Term Debt be identical in all material respects   and, in furtherance of such intent, the parties hereto agree: (a) to   cooperate in good faith in order to determine, upon any written request by   the ABL Agent or any Term Loan Lender Party, the specific assets included in   the Collateral securing their respective Debts, the steps taken to perfect   the Liens thereon and the identity of the Obligors under any Document, and   (b) any Lien upon the Collateral obtained by any Lender in respect of any   judgment obtained in respect of any Debt shall be subject in all respects to   the terms of this Agreement. -16- 

    

 

(d) The   priorities given to the Liens upon the ABL Priority Collateral and Term Loan   Priority Collateral pursuant to this Section 2.2 and the terms of this   Agreement shall continue to govern the relative rights and priorities of the   ABL Lender Parties, on the one hand, and the Term Loan Lender Parties, on the   other hand, even if all or any part of the Liens in favor of a Lender are   subordinated, avoided, disallowed, unperfected, set aside or otherwise   invalidated, whether pursuant to an Insolvency Proceeding, any other judicial   proceeding or otherwise, and this Agreement shall be reinstated if at any   time any payment of any of the ABL Priority Debt or Term Priority Debt (or   Term Debt, as applicable) (including by way of application of proceeds of   Collateral) is rescinded or must be returned by any holder thereof or any   representative of such holder (and to the extent that the ABL Loan Maximum   Amount or Term Loan Maximum Amount (as applicable) was decreased in   connection with any such payment, the ABL Loan Maximum Amount or Term Loan   Maximum Amount, as applicable, will be increased to such extent). The Term   Loan Lender Parties shall not bring any claim or counterclaim for equitable   subordination with respect to the ABL Priority Debt or the Liens securing the   ABL Priority Debt, and the ABL Lender Parties shall not bring any claim or   counterclaim for equitable subordination with respect to the Term Debt or the   Liens securing the Term Debt. (e) The ABL Agent hereby represents and   warrants to and for the benefit of the Term Loan Lender Parties that the ABL   Agent does not have any Liens on any of the Term Loan Priority Collateral   unless and to the extent that the Term Loan Agent has Liens on such Term Loan   Priority Collateral. The Term Loan Agent hereby represents and warrants to   and for the benefit of the ABL Lender Parties that the Term Loan Agent does   not have any Liens on any of the ABL Priority Collateral unless and to the   extent that the ABL Agent has Liens on such ABL Priority Collateral. The ABL   Agent agrees and covenants that the ABL Agent shall not obtain, receive or   accept any Liens on or in any of the Term Loan Priority Collateral unless,   and solely to the extent, that the Term Loan Agent has Liens on such Term   Loan Priority Collateral. The Term Loan Agent agrees and covenants that the   Term Loan Agent shall not obtain, receive or accept any Liens on or in any of   the ABL Priority Collateral unless, and solely to the extent, that the ABL   Agent has Liens on such ABL Priority Collateral. The ABL Agent and each   Obligor agrees and covenants that no Person other than an Obligor in respect   of the Term Debt (y) is or shall become liable, as primary obligor,   guarantor, surety or otherwise, in respect of all or any portion of the ABL   Debt or (z) shall grant any Lien on any of their respective assets and   properties to secure the ABL Debt. The Term Loan Agent and each Obligor   agrees and covenants that no Person other than an Obligor in respect of the   ABL Debt (y) is or shall become liable, as primary obligor, guarantor, surety   or otherwise, in respect of all or any portion of the Term Debt or (z) shall   grant any Lien on any of their respective assets and properties to secure the   Term Debt. 2.3 The priorities of the Liens provided in Section 2.2 shall not   be altered or otherwise affected by (a) any amendment, modification,   supplement, extension, renewal, restatement, replacement or Refinancing (to   the extent any such Refinancing is expressly permitted by this Agreement) of   the ABL Debt or the Term Debt, nor (b) any action or inaction which any of the   Lenders may take or fail to take in respect of the Collateral. Except in an   Insolvency Proceeding or with respect to capital leases or purchase money   financing provided by any third party creditor, the ABL Agent agrees not to   voluntarily subordinate its Lien in any ABL Priority Collateral to the Lien,   indebtedness or claim of any other creditor of any Obligor without the prior   written consent of the Term Loan Lender Parties. -17- 

    

 

2.4 (a) Prior   to the Payment in Full of the ABL Priority Debt, all ABL Priority Collateral   and all proceeds of the ABL Priority Collateral received by the Term Loan   Lenders or the Term Loan Agent in connection with an Enforcement Action shall   be forthwith paid over, in the funds and currency received, to the ABL Agent   for application to the ABL Priority Debt in accordance with the terms of the   ABL Loan Documents or to be held as collateral security for the ABL Priority   Debt. Prior to the Payment in Full of the Term Priority Debt, all proceeds of   the ABL Priority Collateral received by the ABL Agent after the ABL Priority   Debt has been Paid in Full shall be forthwith paid over, in the funds and   currency received, to the Term Loan Lender Parties (as directed by either the   Term Loan Agent or the Term Loan Lender Parties in writing) for application   to the Term Priority Debt in accordance with the terms of the Term Loan   Documents or to be held as collateral security for the Term Priority Debt.   (b) Prior to the Payment in Full of the Term Debt, all Term Loan Priority Collateral   and all proceeds of the Term Loan Priority Collateral received by the ABL   Agent in connection with an Enforcement Action shall be forthwith paid over,   in the funds and currency received, to the Term Loan Lender Parties (as   directed by either the Term Loan Agent or the Term Loan Lender Parties in   writing) for application to the Term Debt in accordance with the terms of the   Term Loan Documents or to be held as collateral security for the Term Debt.   Prior to the Payment in Full of the ABL Debt, all proceeds of the Term Loan   Priority Collateral received by the Term Loan Agent after the Term Debt has   been Paid in Full shall be forthwith paid over, in the funds and currency   received, to the ABL Agent for application to the ABL Debt in accordance with   the terms of the ABL Loan Documents or to be held as collateral security for   the ABL Debt. In addition, except as a court of competent jurisdiction may   otherwise direct, to the extent that the ABL Agent has received a Term Loan   Cash Proceeds Notice (which shall be effective with respect to the cash   proceeds and other Term Loan Priority Collateral identified therein) prior to   the application of the Proceeds of Term Loan Priority Collateral referenced   therein by the ABL Agent to the ABL Debt in accordance with the ABL Credit   Agreement, such Proceeds shall be segregated and held in trust by the ABL   Agent and promptly transferred or paid over to the Term Loan Lender Parties   (as directed by either the Term Loan Agent or the Term Loan Lender Parties in   writing) to be applied by the Term Loan Lender Parties in accordance with the   Term Loan Documents in the same form as received, with any necessary   endorsements or assignments with respect thereto. (c) Prior to an issuance of   any Enforcement Notice by a Lender (unless a bankruptcy or insolvency ABL   Default or Term Loan Default then exists), any proceeds of Collateral   obtained in accordance with the terms of the ABL Loan Documents and the Term   Loan Documents, whether or not deposited under control agreements, which are used   by any Obligor to acquire other property which is Collateral shall not   (solely as between the Lenders) be treated as Proceeds of Collateral for   purposes of determining the relative priorities in the Collateral which was   so acquired, but shall be subject to Section 2.2. In addition, (A) unless and   until the Payment in Full of ABL Priority Debt occurs, Term Loan Agent hereby   consents to the application, prior to the receipt by ABL Agent of an   Enforcement Notice or a Term Loan Cash Proceeds Notice issued by any of the   Term Loan Lender Parties, of cash or other proceeds of Collateral, properly   deposited in an ABL Priority Deposit Account to the repayment of ABL Debt   pursuant to the ABL Loan Documents, and (B) unless and until the Payment in   Full of Term Debt occurs, the ABL Lender Parties hereby each consents to the   application of cash or other proceeds of Collateral properly deposited in a   Term Priority Deposit Account to the -18- 

    

 

repayment of   Term Debt pursuant to the Term Loan Documents. All proceeds of Collateral   received by any Lender (i) pursuant to an Insolvency Proceeding (other than   in connection with Cash Collateral usage or DIP Financing in accordance with   Sections 4.2(b) or (c) below), (ii) in connection with or as a result of an   Enforcement Action, (iii) in connection with any insurance policy claim or   any condemnation award (except to the extent the applicable Documents permit   the use or reinvestment of such proceeds by any Obligor), or (iv) due to the   exercise of any right or remedy under any subordination agreement in respect   of subordinated indebtedness or any management fee subordination agreement,   and all proceeds of business interruption insurance received by any Lender,   shall, in each case, be paid over and applied in accordance with the   applicable Payment Waterfall. 2.5 The ABL Lender Parties and the Term Loan   Lender Parties shall each be solely responsible for perfecting and   maintaining the perfection of their respective Lien in and on each item   constituting the Collateral in which such Lender or group of Lenders has been   granted a Lien. It being understood that (a) the Lien in favor of the Term   Loan Lender Parties has been granted to and in favor of the Term Loan Agent   for the benefit and on behalf of the Term Loan Lender Parties and (b) the   Lien in favor of the ABL Lender Parties has been granted to and in favor of   the ABL Agent for the benefit and on behalf of the ABL Lender Parties. The   foregoing provisions of this Agreement are intended solely to govern the   respective Lien priorities as between the Lenders and shall not impose on any   Lender any obligations in respect of the disposition of proceeds of any   Collateral which would conflict with prior perfected claims therein in favor   of any other Person or any order or decree of any court or governmental   authority or any applicable law. The Term Loan Agent, on behalf of the Term   Loan Lender Parties, agrees that they will not object to or contest, in any   proceeding (including, without limitation, an Insolvency Proceeding) or   otherwise, the validity, extent, perfection, priority or enforceability of   the Liens of the ABL Agent and the ABL Lenders upon the Collateral (or the   extent, validity, allowability or enforceability of any ABL Debt secured   thereby or purported to be secured thereby); provided, that, the foregoing is   not intended and shall not be deemed or construed to limit the ability of the   Term Loan Agent or any of the Term Loan Lenders to enforce the terms and   provisions of this Agreement. The ABL Agent, on behalf of the ABL Lender   Parties, agrees that they will not object to or contest, in any proceeding   (including, without limitation, an Insolvency Proceeding) or otherwise, the   validity, extent, perfection, priority or enforceability of the Liens of the   Term Loan Agent and the Term Loan Lenders upon the Collateral (or the extent,   validity, allowability or enforceability of any Term Debt secured thereby or   purported to be secured thereby); provided, that, the foregoing is not   intended and shall not be deemed or construed to limit the ability of the ABL   Agent or any of the ABL Lenders to enforce the terms and provisions of this   Agreement. 2.6 In the event that the ABL Agent, the ABL Lenders, the Term   Loan Agent or the Term Loan Lenders shall, in the exercise of their rights   under their Documents or otherwise, receive possession or control of any   Books and Records of any applicable Obligor which contain information   identifying or pertaining to any Collateral in which the ABL Agent, the ABL   Lenders, the Term Loan Agent or the Term Loan Lenders (as the case may be)   has been granted a Lien in accordance herewith, such Person shall notify such   other Person that they have received such Books and Records and shall, as   promptly as practicable after demand therefor, make available to such other   Person (at such other Person's expense) such Books and Records for inspection   and duplication. -19- 

    

 

2.7(a) Payment   in Full of Subject to the terms and conditions set forth in this Agreement,   prior to the the ABL Priority Debt, the ABL Agent shall have the exclusive   right to manage, perform and enforce the terms of the ABL Loan Documents with   respect to the ABL Priority Collateral, to exercise and enforce all   privileges and rights thereunder according to their discretion and the   exercise of their business judgment, including, without limitation, the   exclusive right to take or retake control or possession of the ABL Priority   Collateral and to hold, prepare for sale, process, sell, lease, dispose of,   or liquidate the ABL Priority Collateral, and to incur expenses in connection   with such sale, lease or other disposition and to exercise all of the rights   and remedies of a secured lender under the UCC of any applicable   jurisdiction. In conducting any public or private sale under the UCC or other   applicable law, including any foreclosure sale, the ABL Agent shall give the   Term Loan Lender Parties such notice of such sale as may be required under   the applicable UCC; provided, however, that 10 days' notice shall be deemed   in all respects to be commercially reasonable notice. (b) Subject to the   terms and conditions set forth in this Agreement, prior to the Payment in Full   of the Term Debt, the Term Loan Agent and the Term Loan Lenders shall have   the exclusive right to manage, perform and enforce the terms of the Term Loan   Documents with respect to the Term Loan Priority Collateral, to exercise and   enforce all privileges and rights thereunder according to their discretion   and the exercise of their business judgment, including, without limitation,   the exclusive right to take or retake control or possession of the Term Loan   Priority Collateral and to hold, prepare for sale, process, sell, lease,   dispose of, or liquidate the Term Loan Priority Collateral, and to incur   expenses in connection with such sale, lease or other disposition and to   exercise all of the rights and remedies of a secured lender under the UCC of   any applicable jurisdiction. In conducting any public or private sale under   the UCC or other applicable law, including any foreclosure sale, the Term   Loan Agent shall give the ABL Agent and/or the ABL Lenders such notice of   such sale as may be required under the applicable UCC; provided, however,   that 10 days' notice shall be deemed in all respects to be commercially   reasonable notice. 2.8 (a) Notwithstanding anything to the contrary contained   in any of the Documents, but subject to the next sentence below, prior to the   Payment in Full of the ABL Priority Debt, whether or not an Insolvency   Proceeding has been commenced by or against any Obligor, only the ABL Lender   Parties shall have the right to restrict or permit, or approve or disapprove,   the sale, transfer or other disposition of, or otherwise deal with, the ABL   Priority Collateral or to take and continue any Enforcement Action with   respect to the ABL Priority Collateral. Notwithstanding any rights or   remedies available to the ABL Lender Parties under any of the ABL Loan   Documents, applicable law or otherwise, prior to the time that the Term Loan   Agent and the Term Loan Lenders shall have received the Payment in Full of   all Term Priority Debt, the ABL Lender Parties shall not, directly or   indirectly, take any Enforcement Action with respect to any of the ABL   Priority Collateral unless it shall have first delivered an Enforcement   Notice to the Term Loan Lender Parties; provided, however, solely in the   event of Exigent Circumstances, the ABL Lender Parties shall be permitted to   provide such an Enforcement Notice to the Term Loan Lender Parties within one   Business Day after taking such Enforcement Action. (b) Notwithstanding   anything to the contrary contained in any of the Documents, but subject to   the next sentence below, prior to the Payment in Full of the Term Debt,   whether or not -20- 

    

 

an Insolvency   Proceeding has been commenced by or against any Obligor, only the Term Loan   Lender Parties shall have the right to restrict or permit, or approve or   disapprove, the sale, transfer or other disposition of, or otherwise deal   with, the Term Loan Priority Collateral or to take and continue any   Enforcement Action with respect to the Term Loan Priority Collateral. 2.9 (a)   Except as specifically provided in Section 2.11 below, notwithstanding any   rights or remedies available to the ABL Agent or ABL Lender Parties under any   of the ABL Loan Documents, applicable law or otherwise, prior to the time   that the Term Loan Lender Parties shall have received the Payment in Full of   all Term Debt, neither the ABL Agent nor any of the ABL Lender Parties shall,   directly or indirectly, take any Enforcement Action with respect to any of   the Term Loan Priority Collateral. (b) Except as specifically provided in   Section 2.11 below, notwithstanding any rights or remedies available to the   Term Loan Agent or Term Loan Lenders under any of the Term Loan Documents,   applicable law or otherwise, prior to the time that the ABL Lender Parties   shall have received the Payment in Full of all ABL Priority Debt, neither the   Term Loan Agent nor any of the Term Loan Lenders shall, directly or   indirectly, take any Enforcement Action with respect to any of the ABL   Priority Collateral; provided, that, upon the occurrence of any Term Loan   Default and for so long as such Term Loan Default is continuing, so long as   no Insolvency Proceeding is pending with respect to any Obligor which stays   the ability of ABL Lender Parties to take Enforcement Actions against the ABL   Priority Collateral, subject at all times to the provisions of Section 2.2   and Section 2.4 of this Agreement, commencing on the 90th day after delivery   by any Term Loan Lender Party to the ABL Agent of an Enforcement Notice, the   Term Loan Agent or Term Loan Lenders may take action to enforce their Liens   on the ABL Priority Collateral, but only so long as the ABL Agent is not   diligently pursuing in good faith the exercise of an Enforcement Action   against, or diligently attempting to vacate any stay of enforcement of their   Liens on, all or substantially all of the ABL Priority Collateral (including,   without limitation, commencement of any action to foreclose its Liens on all   or substantially all of the ABL Priority Collateral, notification to all or   substantially all account debtors with respect to all or substantially all   Accounts that are ABL Priority Collateral to make payments to ABL Agent, any   action to take possession of all or substantially all of the ABL Priority   Collateral or commencement of any legal proceedings or actions against or with   respect to all or substantially all of the ABL Priority Collateral). In any   sale or other disposition of any of the ABL Priority Collateral by the Term   Loan Agent and/or the Term Loan Lenders, the applicable Term Loan Lender   Parties shall conduct such sale or other disposition of such ABL Priority   Collateral in a commercially reasonable manner and the proceeds of such sale   or other disposition of such ABL Priority Collateral shall be applied in   accordance with the applicable Payment Waterfall. 2.10 (a)Upon any release,   sale or disposition of any ABL Priority Collateral (x) permitted pursuant to   the terms of both the ABL Loan Documents and the Term Loan Documents that   results in the release of the Lien of the ABL Agent in any ABL Priority   Collateral or (y) in connection with an Enforcement Action by ABL Agent or   the ABL Lender Parties, in each case, so long as the ABL Lender Parties   release their Liens on such ABL Priority Collateral prior thereto, at the   same time or substantially concurrently therewith, the Liens of the Term Loan   Agent and the Term Loan Lenders shall be automatically and unconditionally   released with no further consent or action of any Person so long as (i) the   Term Loan Agent's Lien attaches to the proceeds of such ABL Priority   Collateral with the same priority as they had -21- 

    

 

on such ABL   Priority Collateral being released, sold or disposed of upon such release,   sale or disposition thereof and (ii) the proceeds thereof are distributed   pursuant to the Payment Waterfall. The Term Loan Agent and the Term Loan   Lenders shall promptly execute and deliver such release documents as the ABL   Agent may reasonably require in connection with any such release, sale or   disposition of ABL Priority Collateral expressly permitted and required   pursuant to the immediately preceding sentence. (b) The Term Loan Agent   shall, prior to the Payment in Full of the ABL Priority Debt: (i)upon the   request of the ABL Agent with respect to the ABL Priority Collateral   identified in such request as set forth above (which request shall specify   the proposed terms of the sale and the type and amount of consideration to be   received in connection therewith), release or otherwise terminate its Liens   on such ABL Priority Collateral, to the extent such ABL Priority Collateral   is to be sold or otherwise disposed of as contemplated by this Section 2.10   (subject to the carve outs and caveats set forth above in this Section 2.10);   and (ii) deliver to the ABL Agent such release documents as the ABL Agent may   reasonably require in connection therewith; provided, that, (A) the ABL Agent   shall promptly (but, in any event, within 2 Business Days of the receipt   thereof, except as otherwise may be required by applicable law or court   order) apply such proceeds as specified in the applicable Payment Waterfall,   and (B) if the closing of the sale or disposition of such ABL Priority   Collateral is not consummated within 3 Business Days of the date of delivery   of such release documents (or such later date the Term Loan Lender Parties   agrees to in writing in their sole discretion), the ABL Agent shall promptly   (and shall use commercially reasonable efforts to do so within 2 Business   Days thereof) return all release documents to the Term Loan Lender Parties.   (c) Upon any release, sale or disposition of any Term Loan Priority   Collateral, so long as the Term Loan Lender Parties release their Liens on   such Term Loan Priority Collateral prior thereto, at the same time or   substantially concurrently therewith, the Liens of the ABL Agent and the ABL   Lenders shall be automatically and unconditionally released with no further   consent or action of any Person. The ABL Agent and the ABL Lenders shall   promptly execute and deliver such release documents as any of the Term Loan   Lender Parties may reasonably require in connection with any such release,   sale or disposition of Term Loan Priority Collateral. (d) The ABL Agent   shall, prior to the Payment in Full of the Term Debt: (i) upon the request of   any Term Loan Lender Party with respect to the Term Loan Priority Collateral   identified in such request as set forth above (which request shall specify   the proposed terms of the sale and the type and amount of consideration to be   received in connection therewith), release or otherwise terminate its Liens   on such Term Loan Priority Collateral, to the extent such Term Loan Priority   Collateral is to be sold or otherwise disposed of as contemplated by this   Section 2.10; and -22- 

    

 

(ii) deliver to   the Term Loan Lender Parties such release documents as any of the Term Loan   Lender Parties may reasonably require in connection therewith; provided,   that, (A) such proceeds shall be promptly applied as specified in the   applicable Payment Waterfall, and (B) if the closing of the sale or   disposition of such Term Loan Priority Collateral is not consummated within 3   Business Days of the date of delivery of such release documents (or such   later date the ABL Agent agrees to in writing), the applicable Term Loan   Lender Party shall promptly return all release documents to the ABL Agent.   2.11Section 2.9 and Section 2.10 shall not be construed to in any way limit   or impair the right of: (a) any Lender to bid for or purchase Collateral at   any public sale or judicial foreclosure upon such Collateral initiated by any   other Lender in accordance with this Agreement, (b) any Lender to join (but   not control) any foreclosure or other judicial Lien enforcement proceeding   with respect to the ABL Priority Collateral initiated by any other Lender   permitted to initiate such enforcement proceeding hereunder at such time, so   long as it does not delay or interfere in any material respect with the   exercise by ABL Agent or ABL Lenders, or of Term Loan Agent or Term Loan   Lenders, as the case may be, of their respective rights as provided in this   Agreement, and (c) any Lender's right to receive in accordance with the terms   and provisions of this Agreement any proceeds of Collateral; provided, that:   (x) with respect to ABL Priority Collateral, no Term Loan Lender Parties may   make a credit bid for such Collateral and offset Term Debt against the purchase   price therefor until (or unless resulting in) the Payment in Full of ABL   Priority Debt; and (y) with respect to the Term Loan Priority Collateral, no   ABL Lender Parties may make a credit bid for such Collateral and offset ABL   Debt against the purchase price therefor until (or unless resulting in) the   Payment in Full of Term Debt. 2.12 Reserved. 2.13 (a)The ABL Agent may at any   time and from time to time without the consent of or notice to the Term Loan   Agent or any Term Loan Lender, without incurring liability to the Term Loan   Agent or any Term Loan Lender and without impairing or releasing the   obligations of the Term Loan Agent or any Term Loan Lender under this   Agreement, change the manner or place of payment or extend the time of   payment of or renew or alter any ABL Debt, or amend, supplement, restate or   otherwise modify in any manner any ABL Loan Document; provided, that, the ABL   Lender Parties shall not, without the prior written consent of the Term Loan   Agent and the Term Loan Lenders holding greater than 50% of the outstanding   principal balance of the Term Debt, agree to any modification, amendment,   restatement, waiver, consent or supplement to the ABL Debt or any ABL Loan   Documents, the effect of which is to: (i) (A)increasetheaggregatecombinedamountofunused   commitments, outstanding loans and/or other credit extensions (and/or other   amounts covered under the definition of "ABL Loan Maximum Amount")   under the ABL Loan Documents to an amount greater than the ABL Loan Maximum   Amount or (B) provide or issue any letters of credit, banker's acceptances,   hedging arrangements or similar obligations; (ii)increase any applicable   interest rate margin with respect to the ABL Debt by more than 200 basis   points (per annum) in excess of the interest rate -23- 

    

 

margins set   forth in the ABL Credit Agreement as in effect on the date hereof, except (x)   in connection with the imposition of a default rate of interest (not to   exceed an additional 200 basis points per annum) and (y) increases in the   underlying reference rate not caused by an amendment, restatement,   supplement, waiver, consent or modification of the ABL Credit Agreement;   (iii) extend the final scheduled maturity date of the ABL Debt (or the   termination date of the commitments to lend under the ABL Credit Agreement)   to a date beyond the final scheduled maturity date (and termination date) in   effect in the ABL Credit Agreement as of the date hereof; (iv) amend or   modify the (w) definition of "Borrowing Base" in the ABL Credit   Agreement as in effect on the date hereof so as to increase, supplement,   stretch, loosen or expand the amount of credit available to the Borrowers or   any other Obligor under the ABL Loan Documents, (x) the components thereof or   definitions used therein (in each case as in effect on the date hereof) so as   to increase, supplement, stretch, loosen or expand the amount of credit   available to the Borrowers or any other Obligor under the ABL Loan Documents,   (y) the advance rates set forth in the definition of Borrowing Base in the   ABL Credit Agreement to a rate higher than the advance rates set forth in the   definition of Borrowing Base in the ABL Credit Agreement as in effect on the   date hereof (which, for the avoidance of doubt, the advance rate shall never   be higher (or exceed) 85% of the outstanding face amount of “Eligible   Accounts” (as defined in the ABL Credit Agreement as of the date of this   Agreement) and the Borrowing Base shall only be composed of no more than 85%   of such Eligible Accounts minus any reserves being implemented therefor), or   (z) modify the definition of "Eligible Accounts" in the ABL Credit   Agreement as in effect on the date hereof (or increase or expand the   components and assets making up the Borrowing Base in the ABL Credit   Agreement as in effect on the date hereof so as to provide for additional   capacity to borrow or to be eligible for borrowing); provided that the   foregoing shall not limit or affect in any manner the ABL Agent's discretion   to establish additional blocks or reserves, to release blocks or reserves,   and to determine eligibility, in each case of this proviso, in accordance   with the terms and conditions of the ABL Credit Agreement (as in effect on   the date hereof); (v) shorten the final scheduled maturity date of, or the   scheduled commitment termination date with respect to the ABL Debt, (vi) add   any amortization payments or required prepayments in the event that any   revolving loans or related commitments are converted to term loans or other   term debt, except after the occurrence and during the continuation of an ABL   Default; (vii) (A) directly make more restrictive those provisions set forth   in the ABL Credit Agreement which restrict the ability of Obligors to prepay   the Term Debt or otherwise directly restrict or prohibit any Obligor from   paying or prepaying all or any portion of the Term Debt that would otherwise   be permitted under the ABL Loan Documents as in effect on the date hereof or   (B) restrict the ability of any Obligor to pay (or make distributions to pay)   any of the Term Debt as scheduled or required to be paid -24- 

    

 

pursuant to the   Term Loan Documents; provided that, for the avoidance of doubt, the only   conditions or restrictions on any prepayment or payment of any Term Debt that   may exist in the ABL Loan Documents on the date hereof are set forth in the   definition of “Payment Conditions” in the ABL Credit Agreement as in effect   on the date hereof (including all components, levels, terms and definitions   thereof or related thereto as in effect on the date hereof) and such Payment   Conditions shall only apply with respect to voluntary prepayments of any   principal amount (but not any other amount) of Term Debt; (viii)restrict the   ability of any Obligor to incur Term Debt or grant Liens securing the Term   Debt in accordance with this Agreement; (ix) without limiting, and at all   times subject to, the other restrictions set forth in this Section 2.13(a),   change in a manner materially adverse to any Obligor or any Term Loan Lender   Party, or add or make materially more restrictive, any event of default or   add or make more restrictive any representation, warranty, agreement,   financial covenant or other covenant with respect to the ABL Debt (except to   the extent such change, amendment or addition to any ABL Loan Document merely   mirrors a change, amendment or addition made to the Term Loan Documents and   except for changes, amendments and additions effectuated after the occurrence   and during the continuation of an ABL Default); (x) restrict the amendment,   restatement, supplement, modification, Refinancing or extension of (or the   waiver of (or consent with respect to) any provisions in) the Term Loan   Documents except as expressly set forth in Section 2.13(b) below or the   payment or prepayment (or distributions to make any payment or prepayment) of   any amounts under the Term Loan Documents; (xi) add cash dominion related   provisions to the ABL Loan Documents that are more stringent or onerous on   the Obligors than those in the ABL Loan Documents in effect on the date of   this Agreement; or (xii) change, amend, restate, supplement, modify,   Refinance, extend or waive (or consent to a departure from) any material   provision (or any other provision in any material manner) in any of the ABL   Loan Documents after a Purchase Notice has been delivered pursuant to Section   3.1; provided, however, that (A) the ABL Agent shall promptly (and, in any   event, by the date that is the earlier of (I) within two (2) Business Days   thereof and (II) the Purchase Date) provide the Term Loan Lender Parties with   a true, correct and complete copy of any such change, amendment, restatement,   supplement, modification, Refinancing, extension, waiver or consent, and (B)   the foregoing shall not (1) apply after the Purchase Deadline for a   particular Triggering Event (but not for any other Triggering Event for which   the Purchase Deadline has not passed) and (2) restrict or otherwise prohibit   any such change, amendment, restatement, modification, waiver or consent that   occurs at least five (5) Business Days prior to the date that is the earlier   of the Purchase Deadline and the Purchase Date so long as ABL Agent promptly   provides (which, in any event, shall be provided by the date that is the   earlier of (y) within one (1) Business Day thereof and (z) the Purchase Date)   the Term Purchasing Lenders with a copy of any amendment, waiver, consent or   other document -25- 

    

 

evidencing the   foregoing, in each case, it being acknowledged and agreed that (1) the Term   Purchasing Lenders shall have the right to revoke such Purchase Notice upon   receipt of such copy or documentation (or otherwise upon any such change,   amendment, restatement, supplement, modification, Refinancing, extension,   waiver or consent, regardless of whether such copy or documentation has been   received or delivered) for an additional 20 day period from the date such   copy or documentation is received by the Term Purchasing Lenders. (b) The   Term Loan Agent and the Term Loan Lenders may at any time and from time to   time without the consent of or notice to the ABL Agent or any ABL Lender,   without incurring liability to the ABL Agent or any ABL Lender and without   impairing or releasing the obligations of the ABL Agent or any ABL Lender   under this Agreement, change the manner or place of payment or extend the   time of payment of or renew or alter any Term Debt, or amend, supplement,   restate or otherwise modify in any manner any Term Loan Document, including,   without limitation, at any time and from time to time, increasing the   aggregate outstanding principal amount of the Term Debt; provided, that, Term   Loan Lender Parties shall not, without the prior written consent of the ABL   Agent, agree to any modification, amendment, restatement or supplement to the   Term Loan Documents, the effect of which is to: (i) [reserved]; (ii) [reserved];   (iii) shorten the final scheduled maturity date of the Term Debt, (iv)   increase the percentage amount or the frequency of scheduled amortization   payments of the Term Debt, except, in each case of the foregoing in this   clause (iv), after the occurrence and during the continuation of a Term Loan   Default; (v) directly make more restrictive those provisions set forth in the   Term Credit Agreement which restrict the ability of Obligors to pay or prepay   the ABL Debt or otherwise directly restrict or prohibit any Obligor from   paying or prepaying all or any portion of the ABL Debt that would otherwise   be permitted under the Term Loan Documents as in effect on the date hereof or   to reduce or terminate the revolving commitments under the ABL Credit   Agreement; (vi) restrict the ability of the Obligors to incur ABL Debt or   grant Liens securing the ABL Debt in accordance with this Agreement; (vii)   change the mandatory prepayment provisions thereof in a manner materially   adverse to the Obligors, except, in each case, after the occurrence and   during the continuation of a Term Loan Default; (viii)without limiting, and   at all times subject to, the other restrictions set forth in this Section   2.13(b), change in a manner materially adverse to any Obligor, or add, any   event of default or add or make materially more restrictive any   representation, warranty, financial covenant or other covenant with respect   to the Term Debt (except to the extent such change, amendment or addition to   any Term Loan Document merely -26- 

    

 

mirrors a   change, amendment or addition made to the ABL Loan Documents and except for   changes, amendments and additions effectuated after the occurrence and during   the continuation of a Term Loan Default); or (ix) restrict the amendment,   restatement, supplement, modification, Refinancing or extension of (or the   waiver of (or consent with respect to) any provisions in) the ABL Loan   Documents except as expressly set forth in Section 2.13(a); provided that   nothing in this Section 2.13(b) shall restrict or prohibit any changes,   additions, supplements, amendments, restatements, waivers, consents or   modifications with respect to (I) debt to equity conversion provisions, (II)   warrant, equity or registration or rights provisions, (III) public company   provisions and (IV) material nonpublic information related provisions.   Notwithstanding any provision contained in the ABL Loan Documents to the   contrary, the Obligors, the Term Loan Agent and the other Term Loan Lender   Parties may at any time and from time to time without the consent of or   notice to any ABL Lender Party and without violating any ABL Loan Document or   creating any Default under any ABL Loan Document, amend the payment waterfall   provisions contained in the Term Loan Documents, create or add new tranches   of Term Debt, and/or reallocate all or a portion of the Term Debt to the   principal amount of one or more newly created loan tranches or facilities   (which new tranches or facilities shall constitute “Term Debt” hereunder,   subject to the proviso below), each of which may be contractually senior,   junior or pari passu to the then existing or thereafter arising Term Debt and   contain such terms and provisions to be determined and agreed among the   Obligors (or any one or more of them) and the relevant Term Loan Lender   Parties; provided that (x) any such amendments, creations, additions,   reallocations and modifications shall be subject to the limitations set forth   in Section 2.13(b) and (y) in no event shall the conversion of any Term Debt   into any type of equity or equity interests be restricted by the terms of   this Agreement or any ABL Loan Document and any such conversion is expressly   permitted by this Agreement and the ABL Loan Documents. (c) If the Payment in   Full of Term Priority Debt or any portion thereof, or Payment in Full of Term   Debt or any portion thereof, as applicable, is being effected through a   Refinancing; provided that (1) at least one Term Loan Lender Party gives a   notice of such Refinancing to the ABL Agent at least 10 Business Days prior   to such Refinancing (except as otherwise provided in Section 4.2) and (2) the   credit agreement and the other documents evidencing such new Term Debt (the   “New Term Loan Documents”) do not effect an amendment, restatement,   supplement or other modification of the terms of the Term Debt in a manner   that is prohibited by Section 2.13(b), then (A) such Payment in Full of Term   Priority Debt or Payment in Full of Term Debt, as applicable, shall be deemed   not to have occurred for all purposes of this Agreement, (B) the indebtedness   under such Refinancing and all other obligations under the documents   evidencing such indebtedness (the “New Term Debt”) shall be treated as Term   Debt for all purposes of this Agreement, (C) the New Term Loan Documents   shall be treated as the Term Loan Documents and (D) the agent under the New   Term Loan Documents (the “New Term Loan Agent”) shall be deemed to be the   Term Loan Agent for all purposes of this Agreement. Upon receipt of a notice   of Refinancing under the preceding sentence, which notice shall include the   identity of the New Term Loan Agent, the ABL Agent shall promptly enter into   such documents, -27- 

    

 

instruments and   agreements (including amendments, restatements, supplements or other   modifications to this Agreement) as the New Term Loan Agent or any of the   holders of the New Term Debt may reasonably request in order to provide to   the New Term Loan Agent and the holders of the New Term Debt the rights and   powers set forth herein; provided that the failure of the ABL Agent to enter   into such documents, instruments and agreements shall not affect the rights   of the party that consummates the Refinancing to rely on and enforce the   terms of this Agreement. (d) If the Payment in Full of ABL Priority Debt or   any portion thereof, or Payment in Full of ABL Debt or any portion thereof,   as applicable, is being effected through a Refinancing; provided that (1) the   ABL Agent gives a notice of such Refinancing to the Term Loan Lender Parties   at least 10 Business Days prior to such Refinancing (except as otherwise   provided in Section 4.2) and (2) the credit agreement and the other documents   evidencing such new ABL Debt (the “New ABL Documents”) do not effect an   amendment, restatement, supplement, joinder or other modification of the   terms of the ABL Debt in a manner that is prohibited by Section 2.13(a), then   (A) such Payment in Full of ABL Priority Debt or Payment in Full of ABL Debt,   as applicable, shall be deemed not to have occurred for all purposes of this   Agreement, (B) the indebtedness under such Refinancing and all other   obligations under the documents evidencing such indebtedness (the “New ABL   Debt”) shall be treated as ABL Debt for all purposes of this Agreement, (C)   the New ABL Documents shall be treated as the ABL Loan Documents and (D) the   agent under the New ABL Documents (the “New ABL Agent”) shall be deemed to be   the ABL Agent for all purposes of this Agreement. Upon receipt of a notice of   Refinancing under the preceding sentence, which notice shall include the   identity of the New ABL Agent, the Term Loan Agent shall promptly enter into   such documents, instruments and agreements (including amendments,   restatements, supplements or other modifications to this Agreement) as the   New ABL Agent may reasonably request in order to provide to the New ABL Agent   and the holders of the New ABL Debt the rights and powers set forth herein;   provided, that the failure of the Term Loan Agent to enter into such   documents, instruments and agreements shall not affect the rights of the   party that consummates the Refinancing to rely on and enforce the terms of   this Agreement. (e) By their acknowledgement hereto, Obligors agree to cause   the agreement, instrument or document pursuant to which any New ABL Agent or   any New Term Loan Agent is appointed to provide that the New ABL Agent (for   itself and the creditors and lenders for which such New ABL Agent was   appointed) or New Term Loan Agent (for itself and the creditors and lenders   for which such New Term Loan Agent was appointed), as applicable, agrees to   be bound by the terms of this Agreement. (f) Obligors or Notwithstanding   anything to the contrary contained in the Documents, none of the any of their   Affiliates shall be permitted to acquire any right, title or interest   (including by way of participation) in and to the Term Debt or the ABL Debt   or any commitments in respect thereof, and, in each case, except as provided   in Section 3 with respect to the purchase of the ABL Debt by any of the Term   Loan Lender Parties, the Term Loan Lender Parties and the ABL Lender Parties   as the case may be, agree not to assign or participate any of their right,   title or interest in and to the Term Debt or ABL Debt or any commitments in   respect thereof to any such Persons; provided that nothing herein shall   prevent or prohibit the conversion of any of the Term Debt to Equity   Interests or other equity by the Term Loan Lender Parties. -28- 

    

 

2.14 The Term   Loan Agent shall give the ABL Agent, and the ABL Agent shall give to the Term   Loan Lender Parties concurrently with the giving thereof to any Obligor, as   applicable, (i) a copy of any written notice by such Agent of a Default under   its respective Documents with such Obligor, or written notice of demand of   payment from such Obligor, and (ii) a copy of any written notice sent by such   Agent to such Obligor at any time a Default under such Agent's Documents with   such Obligor exists stating such Agent's intention to exercise any of its   enforcement rights or remedies, including written notice pertaining to any   foreclosure on any of the ABL Priority Collateral or other judicial or   non-judicial remedy in respect thereof to the extent permitted hereunder, and   any legal process served or filed in connection therewith; provided, that,   the failure of any party to give notice as required hereby shall not affect   the relative priorities of any Lender's respective Liens as provided herein   or the validity or effectiveness of any such notice as against any Obligor.   2.15 The Lien priorities set forth herein relating to the Collateral shall   apply with respect to all insurance covering the Collateral and, in respect   thereof, (i) so long as the Term Priority Debt has not been Paid in Full, the   Term Loan Lender Parties shall have the exclusive right to settle and adjust   claims in respect of Term Loan Priority Collateral under policies of   insurance and to approve any award granted in any condemnation or similar   proceeding, or any deed in lieu of condemnation, in respect of the Term Loan   Priority Collateral (and, for the avoidance of doubt, all business   interruption insurance and representation and warranty insurance) and (ii) so   long as the ABL Priority Debt has not been Paid in Full, the ABL Agent shall   have the exclusive right to settle and adjust claims in respect of ABL   Priority Collateral under policies of insurance and to approve any award   granted in any condemnation or similar proceeding, or any deed in lieu of condemnation,   in respect of the ABL Priority Collateral (but, with respect to this clause   (ii), specifically excluding those with respect to all business interruption   insurance and representation and warranty insurance). 2.16 Each Lender, to   the fullest extent permitted by applicable law, waives as to each other   Lender any requirement regarding, and agrees not to demand, request, plead or   otherwise claim the benefit of, any marshalling, appraisement, valuation or   other similar right that may otherwise be available under applicable law.   SECTION 3. TERM LOAN LENDER PURCHASE OPTION 3.1Upon the occurrence and during   the continuance of a Triggering Event, the ABL Agent will provide the Term   Loan Lenders written notice thereof (the “Purchase Trigger Notice”), which such   Purchase Trigger Notice shall also include the amount of the (a) ABL Debt,   (b) the ABL Priority Debt, (c) the ABL Purchase Price (including, without   limitation, reasonable details with respect to any ABL Purchase Price Cash   Collateral), (d) the prepayment premium in existence under the ABL Loan   Documents, and (e) the other the information, agreements, instruments and   documents set forth in the form attached hereto as Exhibit A (the items,   amounts, information, agreements, instruments and documents in clauses (a)   through (e), individually and collectively, the “Required ABL Purchase Option   Information”), and the Term Loan Lenders shall have the option, for a period   of thirty (30) days after such occurrence or, if later, the receipt of such   Purchase Trigger Notice by such Term Loan Lenders or the first date on which   such Term Loan Lenders have obtained actual knowledge of the occurrence of   any Triggering Event (so long as such Triggering Event is continuing) with   respect to a Triggering -29- 

    

 

Event (or, at   the sole option of such Term Loan Lenders such earlier date upon such   occurrence of such Triggering Event) (which, upon actual knowledge of the   occurrence of any Triggering Event by such Term Loan Lenders, such Term Loan Lenders,   may request such Required ABL Purchase Option Information from the ABL Agent,   and such period for exercising any such purchase option shall be extended by   the number of days it takes the ABL Agent to deliver such Required ABL   Purchase Option Information from the date of the request therefor by such   applicable Term Loan Lenders), exercisable by written notice delivered to the   ABL Agent by the applicable Term Loan Lenders seeking to purchase such ABL   Priority Debt (or, at the sole option of such Term Loan Lenders, the ABL   Debt) (the "Term Purchasing Lenders"), to purchase all, but not   less than all, of the ABL Priority Debt (or, at the sole option of such Term   Loan Lenders, the ABL Debt) from the ABL Lender Parties (such notice, a   "Purchase Notice"). A Purchase Notice shall be irrevocable and the   issuance of a Purchase Notice shall obligate the Term Loan Lenders to   purchase all of the ABL Priority Debt from the ABL Lender Parties on the   terms set forth herein on or before the twentieth (20th) day following the   date the ABL Agent receives the Purchase Notice (such date, after giving   effect to any such additional time period provided after (I) any Required ABL   Purchase Option Information becomes incorrect, inaccurate or incomplete or   (II) any copy or documentation with respect to any change, amendment,   restatement, supplement, modification, Refinancing, extension or waiver (or   consent to a departure from) of any provision in any ABL Loan Document has   been delivered pursuant to Section 2.13(a)(xii), the "Purchase   Deadline"); provided that, in each case, such Purchase Notice may be   revoked by the Term Purchasing Lenders for a period of twenty (20) days after   the occurrence of such event or occurrence, and the Term Purchasing Lenders   not be obligated thereunder, at their sole option, if (x) any of the Required   ABL Purchase Option Information is incorrect, inaccurate or incomplete in any   material respect, and the ABL Agent agrees to provide the Term Purchasing   Lenders with prompt written notice (which, in any event, such written notice   shall be provided by the earlier of (I) within two (2) Business Days of   knowledge thereof and (II) the day prior to the Purchase Date) of any such   material incorrectness, inaccurateness or incompleteness of any such Required   ABL Purchase Option Information or (y) a change, amendment, restatement,   supplement, modification, Refinance, extension or waiver (or consent to a   departure from) any provision in any of the ABL Loan Documents has been made   after a Purchase Notice has been delivered in accordance with Section   2.13(a)(xii) (each of (x) or (y), an “Irrevocable Purchase Exclusion”). The   failure of the Term Loan Lenders to consummate such purchase as provided   herein prior to the expiration of the closing date specified in the Purchase   Notice shall result in the forfeiture of the Term Loan Lenders' rights under   this Section 3. On the date specified by the applicable Term Loan Lender   Parties in the Purchase Notice (which shall be a Business Day within the time   period set forth above), except in the case of an Irrevocable Purchase   Exclusion, the ABL Lender Parties shall sell to the Term Loan Lenders, and   the Term Loan Lenders shall purchase from the ABL Lender Parties all of the   ABL Priority Debt (or, at the sole option of the Term Purchasing Lenders, the   ABL Debt), subject to Section 3.5, pursuant to an Assignment Agreement. The   ABL Agent agrees on behalf of the ABL Lender Parties that they shall not   institute, or agree with any other Person to institute, an Insolvency   Proceeding against any Obligor or any of its Subsidiaries after the ABL   Agent's receipt of a Purchase Notice unless the Term Loan Lenders have failed   to purchase the ABL Priority Debt in accordance with this Section 3 on the   closing date specified in the Purchase Notice (subject to any Irrevocable   Purchase Exclusion). -30- 

    

 

3.2 Upon the   date of such purchase and sale (the "Purchase Date"), the Term Loan   Lenders shall pay to the ABL Lender Parties as the purchase price therefor   the amount to cause the Payment in Full of the ABL Priority Debt (but, for   the avoidance of doubt, (a) excluding any interest, fees or other amounts   that have not yet been earned or due and (b) no cash collateral shall be   required to be provided) (the "ABL Purchase Price"). Such purchase   price shall be remitted by wire transfer in federal funds to such bank   account of the ABL Agent as set forth in the Required ABL Purchase Option   Information. Interest shall be calculated to but excluding the Business Day   on which such purchase and sale shall occur if the amounts so paid by Term   Loan Lenders to the bank account designated by the ABL Agent are received in   such bank account set forth in the Required ABL Purchase Option Information   prior to 4:00 p.m., Chicago time, and interest shall be calculated to and   including such Business Day if the amounts so paid by Term Loan Lenders to   the bank account set forth in the Required ABL Purchase Option Information   are received in such bank account later than 4:00 p.m., Chicago time. In   addition, solely to the extent that, on or before the date that is 180 days   after the Purchase Date (the “Tail Period”), the Term Purchasing Lenders are   paid any prepayment premium that is in existence under the ABL Loan Documents   as of the date the Purchase Trigger Notice (or such lesser prepayment premium   amount that is in existence under the ABL Loan Documents as of the Purchase   Date) as a result of a voluntary prepayment of all or any portion of the ABL   Priority Debt (or the ABL Debt, as applicable) that was purchased by the Term   Purchasing Lenders, but excluding a prepayment resulting from an Enforcement   Action (or any other rights or remedies under the Documents or under law or   in equity) taken by the Term Purchasing Lenders or any other Person (such   type of voluntary prepayment for which such applicable prepayment premium   amount is required to be paid to such ABL Lender Parties (but not any other   type of prepayment) being the "Prepay Fee Event", and the   applicable prepayment premium amount, the “Applicable ABL Prepayment Premium   Amount”), then the Term Purchasing Lenders will hold such payment in trust   for the benefit of the ABL Lender Parties from which such Term Purchasing   Lenders purchased such ABL Priority Debt (or ABL Debt, as applicable) and   promptly pay it over to ABL Agent (for ABL Agent to distribute to such ABL   Lender Parties); provided that, to the extent the Applicable ABL Prepayment   Premium Amount is decreased pursuant to an amendment or other modification of   the ABL Loan Document during the Tail Period, the Applicable ABL Prepayment   Premium Amount shall continue to be the amount that applies during the Tail   Period for purposes of this sentence and shall be paid to the ABL Lender   Parties by the Term Loan Lenders after the occurrence of a Prepay Fee Event (regardless   of whether the Term Purchasing Lenders are paid any such prepayment premium)   unless, in each case of the foregoing in this sentence, either (i) any   payment of any of the ABL Debt is rescinded or must be returned by any holder   thereof or (ii) otherwise agreed to by any of the ABL Lender Parties. 3.3   Such purchase shall be expressly made without representation or warranty of   any kind by ABL Lender Parties as to the ABL Priority Debt (or the ABL Debt,   as applicable) or otherwise and without recourse to the ABL Lender Parties,   except for the representations and warranties of the ABL Lender Parties set   forth in the Assignment Agreement. 3.4 Purchasing Documents Upon the   consummation of any purchase and sale provided for herein, the Term Lenders   shall thereafter be obligated pursuant to the terms of the ABL Loan with   respect to the ABL Priority Debt (or the ABL Debt, as applicable) and   responsible for the discharge and performance of all of the duties,   responsibilities and obligations of the ABL Lender Parties under the ABL Loan   Documents that are to occur after the date of -31- 

    

 

 

such purchase   and sale, with the ABL Lender Parties being released from and discharged of   any duties, responsibilities and obligations under or in connection with the   ABL Loan Documents that occur after the date of such purchase and sale (but,   for the avoidance of doubt, not any duties, responsibilities or obligations   occurring on or prior to the date of such purchase and sale). 3.5 Any sale   and assignment by the ABL Lender Parties of the ABL Priority Debt as provided   herein shall not operate to terminate or impair the Obligors' obligations (a)   to pay, solely to the extent the ABL Debt is not fully purchased by the Term   Purchasing Lenders (and instead just the Term Priority Debt is purchased),   the Excess ABL Debt, or (b) to indemnify the ABL Lender Parties (or any other   Person) in accordance with the ABL Loan Documents and this Agreement, all of   which shall survive any such sale and assignment (all such outstanding and   owing obligations expressly set forth in clauses (a) and (b), together with   ABL Lender Parties' rights under the ABL Loan Documents solely to the extent   necessary to collect such obligations, the "Retained Interest").   Notwithstanding anything herein to the contrary, after consummation of any   purchase of ABL Priority Debt in accordance with this Section 3, the Retained   Interest shall be secured by the Collateral solely on a junior basis, but the   ABL Lender Parties (and any other holder of the Retained Interest) shall not   have any right to vote or consent to any amendment, restatement, supplement,   consent, Refinancing, extension, waiver or modification except that no such   amendment or termination shall without the consent of the ABL Lender Parties   holding such Retained Interest provide for the termination or forgiveness, in   whole or in part, of any rights of any Person with respect to the Retained   Interest (and, as between each ABL Lender Party holding the Retained   Interest), on one hand, and the Obligors, on the other hand). 3.6 For   purposes hereof, "Triggering Event" shall mean (i) the acceleration   of all or any portion of the ABL Debt, (ii) termination of the commitments to   lend under the ABL Credit Agreement after the occurrence and during the   continuance of an ABL Default, (iii) the commencement by any ABL Lender Party   of any Enforcement Action, (iv) the commencement of an Insolvency Proceeding   with respect to any Obligor, any of its Subsidiaries or any of its properties   or Equity Interests, (v) the ABL Lenders cease providing ABL Loans following   the Borrower's written request therefor for a period of three (3) consecutive   Business Days (other than in a case where Borrowers have insufficient   borrowing availability under the ABL Credit Agreement to support such request,   as determined by the ABL Agent in good faith, and the refusal to fund ABL   Loans due to the failure of any condition precedent to the funding thereof   contained in the ABL Credit Agreement not being satisfied), (vi) the   occurrence of an ABL Default under Section 11.1(a) of the ABL Credit   Agreement as a result of the failure of any Obligor to pay principal,   interest or other amounts when due thereunder; (vii) the occurrence of an ABL   Default under Section 11.1(c) of the ABL Credit Agreement as a result of any Obligor’s   (or any of its Subsidiaries’) violation of Section 8, 9.1 or 9.2 of the ABL   Credit Agreement; (viii) the occurrence of any ABL Default under Section   11.1(d), (e), (f), (g), (h), (i), (k), (l), (n), (o), (p), (q), (r), (s) or   (t) of the ABL Credit Agreement, (ix) the occurrence of any other ABL Default   that has occurred and is continuing and remains unwaived during the thirty   (30) day period following the occurrence of such ABL Default; (x) the   occurrence of a Term Loan Default under Section 5.4(a) of the Term Credit   Agreement as a result of the failure of any Obligor to pay principal,   interest or other amounts when due thereunder; (xi) the occurrence of any   Term Loan Default under Section 5.4 of the Term Credit Agreement as a result   of any Obligor’s (or any of its Subsidiaries’) violation of Section 5.2 of   the Term Credit Agreement; -32- 

    

 

(xii) the   occurrence of any Term Loan Default under Section 5.4(b) through Section   5.4(t) (other than Section 5.4(j)(i) only) of the Term Credit Agreement; or   (xiii) the occurrence of any other Term Loan Default (other than a Term Loan   Default under only Section 5.4(j)(i) of the Term Credit Agreement) that has   occurred and is continuing and remains unwaived during the thirty (30) day   period following the occurrence of such Term Loan Default. 3.7 In the event   that the Term Loan Lenders elect to exercise their rights under this Section   3, the Term Loan Lenders shall have the sole option (but no obligation) to   elect to purchase, together with the ABL Priority Debt, all, but not less   than all, of the Excess ABL Debt from the ABL Lender Parties, in which case   such purchase shall be subject to all of the foregoing terms and conditions   of this Section 3. 3.8In connection with any purchase of the ABL Priority   Debt (or, at the sole option of the Term Purchasing Lenders, the ABL Debt),   on or after the Purchase Date, the Term Purchasing Lenders may   unconditionally and irrevocably remove the Person acting at such time as the   ABL Agent (the “Prior ABL Agent”) by delivering notice thereof to the Prior   ABL Agent, and at or after such time, appoint any Person such Term Purchasing   Lenders in their sole discretion may desire to be the ABL Agent, and the   Prior ABL Agent, the ABL Lender Parties and the Obligors hereby unconditionally   and irrevocably consent to any such replacement or appointment of the Prior   ABL Agent without any further action. In connection with the immediately   preceding sentence, the Prior ABL Agent, the ABL Lender Parties and the   Obligors hereby agree to promptly take such actions and duly, execute,   acknowledge and deliver such documents, agreements and instruments (in each   case at Obligors' reasonable expense and not the reasonable expense of ABL   Agent), reasonably requested by such Term Purchasing Lenders to effectuate   the foregoing. In addition, in connection with any purchase of the ABL   Priority Debt (or, at the sole option of the Term Purchasing Lenders, the ABL   Debt), so long as the ABL Agent has provided written notice to the Term   Purchasing Lenders within two (2) Business Days of receipt of the Purchase   Notice that the ABL Agent will resign effective as of the Purchase Date   (which such written notice from the ABL Agent shall be irrevocable unless   otherwise agreed to in writing by the Term Purchasing Lenders), on the   Purchase Date, the ABL Agent shall resign as agent (including the agent   capacity described in the definition of “ABL Agent” in this Agreement) under   the ABL Loan Documents; provided, that, notwithstanding such resignation, ABL   Agent shall retain all rights of indemnification under the ABL Loan Documents   (as in effect at the time of effectiveness of such resignation, and no   amendment or modification entered into after the date of such resignation   shall materially adversely affect ABL Agent's rights of indemnification as in   effect at the time of such resignation). ABL Agent shall (at the Obligors'   expense and not at the expense of ABL Agent) promptly and duly, execute,   acknowledge and deliver all such further, documents, agreements and instruments   as the Term Purchasing Lenders may from time to time reasonably request in   order to preserve, maintain or protect the creation, perfection and/or   priority of any Lien on Collateral affected by such resignation. 3.9 The ABL   Agent hereby unconditionally and irrevocably waives the $3,500 processing fee   set forth in Section 15.9(a) of the ABL Credit Agreement (and any other   purchase or assignment related fee set forth in any of the ABL Loan   Documents) in connection with any purchase or assignment of the ABL Priority   Debt (or the ABL Debt, as applicable) in accordance with this Section 3. -33-   

    

 

SECTION 4.   BANKRUPTCY 4.1 This Agreement shall be applicable both before and after the   filing of any petition by or against any Obligor under the Bankruptcy Code or   in any other Insolvency Proceeding and all converted or succeeding cases in   respect thereof, and all references herein to any Obligor shall be deemed to   apply to the trustee (or similar Person) for such Obligor and such Obligor as   debtor-in-possession (or any other similar designation). The relative rights   of Lenders in or to any distributions from or in respect of any Collateral or   proceeds of Collateral, shall continue after the filing thereof on the same   basis as prior to the date of the petition, subject to any court order   approving the financing of, or use of cash collateral by, any Obligor as   debtor-in-possession (or any other similar designation). 4.2 DIP Financing.   (a) None of the Term Loan Agent or any Term Loan Lender may, directly or   indirectly, seek to provide financing to the Obligors as debtor-in-possession   (or any other similar designation), or consent to or support the use of cash   collateral by such Person, in exchange for Liens on the ABL Priority   Collateral equal or senior in priority to the Liens on the ABL Priority   Collateral securing the ABL Priority Debt. None of the ABL Agent or any ABL   Lender may, directly or indirectly, seek to provide financing to any Obligor   as debtor-in-possession (or any other similar designation), or consent to or   support the use of cash collateral by such Person, in exchange for Liens on   the Term Loan Priority Collateral equal or senior in priority to the Liens on   the Term Loan Priority Collateral securing the Term Debt. (b) If the ABL   Lender Parties propose to offer financing (or consents to any other Person   providing financing) to Obligors under Section 364 of the Bankruptcy Code or   similar Bankruptcy Law ("DIP Financing") during an Insolvency   Proceeding secured by a Lien on ABL Priority Collateral or if ABL Agent   consents to use of cash collateral (as such term is defined in Section 363(a)   of the Bankruptcy Code or similar Bankruptcy Law ("Cash   Collateral") constituting ABL Priority Collateral ("ABL Cash   Collateral"), the Term Loan Agent (on behalf of itself and the other   Term Loan Lender Parties) agrees to consent to (and will be deemed to have   consented to) and will raise no objection to such DIP Financing or Cash   Collateral use, and, Term Loan Agent will subordinate and will be deemed to have   subordinated its Liens in the ABL Priority Collateral securing such DIP   Financing to the Liens securing such DIP Financing on the same terms (but on   a basis junior to the Liens of the ABL Agent) as the Liens of the Term Loan   Agent are subordinated thereto (and such subordination will not alter in any   manner the terms of this Agreement) and to any customary and reasonable   carveout for professional fees and/or fees of the Office of the United States   Trustee authorized in connection with such ABL Cash Collateral usage or DIP   Financing so long as each of the following conditions are satisfied: (i) the   maximum amount of such DIP Financing (inclusive of unused commitments)   provided by the ABL Lender Parties in accordance with the terms hereof, plus   the aggregate combined principal amount of outstanding loans under the ABL   Loan Documents, shall not exceed at any time the ABL Loan Maximum Amount;   (ii) the Term Loan Agent's Liens with respect to the Term Loan Priority   Collateral shall remain senior and prior to the Liens of ABL Agent with   respect to such Term Loan Priority Collateral and the priority Liens of the   Term Loan Lender Parties in the Term Loan Priority Collateral shall not be   subject to any surcharges under 11 U.S.C. §§506(c), 726 or laws of similar   import and shall not be subject to any carveout provided in any such DIP -34-   

    

 

Financing,   including any carveout provided to an official or unofficial committee of   creditors or Office of the United States Trustee; (iii) the Term Loan Lender   Parties shall otherwise have the right to object to such DIP Financing and   the terms thereof, including to any ancillary agreements (without limiting   the foregoing, the Term Loan Lender Parties shall be permitted to object to   any specific plan of reorganization) so long as such objections are solely   limited to those objections that could be made by an unsecured creditor and   not a secured creditor; and (iv) such DIP Financing shall not, in any event,   expressly require the liquidation of all or any portion of the Term Loan   Priority Collateral prior to a default (it being agreed that the inclusion of   milestones with respect to a going concern sale of all or substantially all   of the Collateral under such DIP Financing shall not be deemed to constitute   such a condition). The ABL Agent, on behalf of the ABL Lender Parties, agrees   that the ABL Lender Parties shall not seek adequate protection in the form of   an additional Lien or "replacement Lien" with respect to the Term   Loan Priority Collateral, unless the Term Loan Lender Parties is granted   adequate protection in the form of an additional Lien or "replacement   Lien" on such Collateral, which additional or "replacement   Lien" of ABL Agent with respect to such Term Loan Priority Collateral   (if obtained) shall be subordinate to all Liens, including adequate   protection Liens or "replacement Liens" of Term Loan Agent in such   Collateral and subject to the Payment Waterfall. Any adequate protection   granted in favor of any ABL Lender Party in respect of the ABL Priority   Collateral in the form of a superpriority or other administrative expense   claim and any claim in favor of any ABL Lender Party arising under Section   507(b) of the Bankruptcy Code shall be pari passu with the grant of adequate   protection in favor of any Term Loan Lender Party in respect of the Term Loan   Priority Collateral in the form of a superpriority or other administrative   expense claim under Section 507(b) of the Bankruptcy Code. Any claim arising   under Section 507(b) of the Bankruptcy Code in favor of any ABL Lender Party   in respect of the Term Loan Priority Collateral shall be pari passu with the claims   arising under Section 507(b) of the Bankruptcy Code in favor of any Term Loan   Lender Party in respect of the ABL Priority Collateral (each a "Junior   507(b) Claim"), and in connection with any plan of reorganization,   consent and agree that notwithstanding any rights under Section 1129(a)(9) of   the Bankruptcy Code, any Junior 507(b) Claim may be paid in any combination   of cash, securities or other property having a present value equal to the   amount of such claims as of the effective date of confirmation of such plan   (subject to the Payment Waterfall). The ABL Agent on behalf of the ABL Lender   Parties agrees that no ABL Lender Party may seek adequate protection in the   form of periodic cash payments from any Proceeds of Term Loan Priority   Collateral. Subject to Section 4.2(c), the ABL Agent, on behalf of the ABL   Lender Parties, agrees that the ABL Lender Parties shall not oppose or seek   to challenge any claim by the Term Loan Lender Parties for allowance in any   Insolvency Proceeding of Term Debt consisting of post-petition interest, fees   or expenses to the extent of the value of the Lien securing the Term Debt in   the Term Loan Priority Collateral. (c) If the Term Loan Lender Parties   propose to offer DIP Financing (or consents to any other Person providing DIP   Financing) during an Insolvency Proceeding secured by a Lien on Term Loan   Priority Collateral or if any of the Term Loan Lender Parties consents to use   of Cash Collateral constituting Term Loan Priority Collateral (the "Term   Loan Cash Collateral"), the ABL Agent (on behalf of itself and the other   ABL Lender Parties) agrees to consent to (and will be deemed to have   consented to) and will raise no objection to such DIP Financing or Cash   Collateral use, and, ABL Agent will subordinate and will be deemed to have   subordinated its Liens in the Term Loan Priority Collateral securing such DIP   Financing to the Liens securing -35- 

    

 

such DIP   Financing on the same terms (but on a basis junior to the Liens of the Term   Loan Agent) as the Liens of the ABL Agent are subordinated thereto (and such   subordination will not alter in any manner the terms of this Agreement) and   to any customary and reasonable carveout for professional fees and/or fees of   the Office of the United States Trustee authorized in connection with such   Term Loan Cash Collateral usage or DIP Financing so long as each of the   following conditions are satisfied: (i) the ABL Agent's Liens with respect to   the ABL Priority Collateral shall remain senior and prior to the Liens of   Term Loan Agent with respect to such ABL Priority Collateral and the priority   Liens of the ABL Lender Parties in the ABL Priority Collateral shall not be   subject to any surcharges under 11 U.S.C. §§506(c), 726 or laws of similar   import and shall not be subject to any carveout provided in any such DIP   Financing, including any carveout provided to an official or unofficial   committee of creditors or Office of the United States Trustee; and (ii) such   DIP Financing shall not, in any event, expressly require the liquidation of   all or any portion of the ABL Priority Collateral prior to a default (it   being agreed that the inclusion of milestones with respect to a going concern   sale of all or substantially all of the Collateral under such DIP Financing   shall not be deemed to constitute such a condition). The Term Loan Agent, on   behalf of the Term Loan Lender Parties, agrees that the Term Loan Lender   Parties shall not seek adequate protection in the form of an additional Lien   or "replacement Lien" with respect to the ABL Priority Collateral,   unless ABL Agent is granted adequate protection in the form of an additional   Lien or "replacement Lien" on such Collateral, which additional or   "replacement Lien" of Term Loan Agent with respect to such Term   Loan Priority Collateral (if obtained) shall be subordinate to all Liens,   including adequate protection Liens or "replacement Liens" of ABL   Agent in such Collateral (subject to the Payment Waterfall). Any adequate   protection granted in favor of any Term Loan Lender Party in respect of the   Term Loan Priority Collateral in the form of a superpriority or other   administrative expense claim and any claim in favor of any Term Loan Lender   Party arising under Section 507(b) of the Bankruptcy Code shall be pari passu   with the grant of adequate protection in favor of any ABL Lender Party in   respect of the ABL Priority Collateral in the form of a superpriority or   other administrative expense claim and any claim in favor of any ABL Lender   Party under Section 507(b) of the Bankruptcy Code. Any Junior 507(b) Claim of   any Term Loan Lender Party shall be pari passu with the Junior 507(b) Claims   of any ABL Lender Party, and in connection with any plan of reorganization,   consent and agree that notwithstanding any rights under Section 1129(a)(9) of   the Bankruptcy Code, any Junior 507(b) Claim may be paid in any combination   of cash, securities or other property having a present value equal to the   amount of such claims as of the effective date of confirmation of such plan   (subject to the Payment Waterfall). The Term Loan Agent, on behalf of the   Term Loan Lender Parties, agrees that no Term Loan Lender Party may seek   adequate protection payments in the form of periodic cash payments from any   ABL Priority Collateral. Subject to 4.2(b), the Term Loan Agent, on behalf of   the Term Loan Lender Parties, agrees that the Term Loan Lender Parties shall   not oppose or seek to challenge any claim by the Term Loan Lender Parties for   allowance in any Insolvency Proceeding of ABL Debt consisting of   post-petition interest, fees or expenses to the extent of the value of the   Lien securing the ABL Debt in the ABL Priority Collateral. 4.3 If any Obligor   shall be subject to any Insolvency Proceeding and the Term Loan Lender   Parties shall agree to permit a sale, liquidation or other disposition of the   Term Loan Priority Collateral free and clear of Liens or other claims, under   Section 363, 365 or 1129 of the Bankruptcy Code or otherwise, then the ABL   Agent, on behalf of the ABL Lender Parties, agrees that the ABL Lender   Parties will not (i) raise any objection to or contest such sale, -36- 

    

 

liquidation or   other disposition or request adequate protection or any other relief in   connection therewith, or (ii) directly or indirectly oppose or impede entry   of any order in connection with such sale, liquidation or other disposition,   including orders to retain professionals or set bid procedures in connection   with such sale, liquidation or disposition, and the ABL Lender Parties will   be deemed to have consented thereto (including pursuant to Section 363(f) of   the Bankruptcy Code); provided, however, the foregoing agreements by ABL   Agent shall not apply with respect to a sale, liquidation or other   disposition of ABL Priority Collateral, which is subject to the provisions   set forth in Section 4.4. Notwithstanding the foregoing, the ABL Lender   Parties shall be permitted to raise any objections to any such disposition   that could be raised by any creditor of the Obligors whose claims were   unsecured. 4.4 If any Obligor shall be subject to any Insolvency Proceeding   and the ABL Lender Parties shall agree to permit a sale, liquidation or other   disposition of the ABL Priority Collateral free and clear of Liens or other   claims, under Section 363, 365 or 1129 of the Bankruptcy Code or otherwise,   then the Term Loan Agent, on behalf of the Term Loan Lender Parties, agrees   that the Term Loan Lender Parties will not (i) raise any objection to or   contest such sale, liquidation or other disposition or request adequate   protection or any other relief in connection therewith, or (ii) directly or   indirectly oppose or impede entry of any order in connection with such sale,   liquidation or other disposition, including orders to retain professionals or   set bid procedures in connection with such sale, liquidation or disposition,   and the Term Loan Lender Parties will be deemed to have consented thereto   (including pursuant to Section 363(f) of the Bankruptcy Code); provided,   however, the foregoing agreements by Term Loan Agent (or any other Term Loan   Lender Party) shall not apply with respect to a sale, liquidation or other   disposition of Term Loan Priority Collateral, which is subject to the   provisions set forth in Section 4.3. Notwithstanding the foregoing, the Term   Loan Lender Parties shall be permitted to raise any objections to any such   disposition that could be raised by any creditor of the Obligors whose claims   were unsecured. 4.5 If, in any Insolvency Proceeding involving an Obligor,   debt obligations of the reorganized debtor secured by Liens upon any property   of the reorganized debtor are distributed pursuant to a confirmed plan of   reorganization or similar dispositive restructuring plan, both on account of   ABL Debt and on account of Term Debt, then, to the extent the debt   obligations distributed on account of the ABL Debt and on account of the Term   Debt are secured by Liens upon the same property, the provisions of this   Agreement will survive the distribution of such debt obligations pursuant to   such plan and will apply with like effect to the Liens securing such debt   obligations. The provisions of Section 1129(b)(1) of the Bankruptcy Code   notwithstanding, the Lenders agree that they will not propose, support, or   vote in favor of any plan of reorganization of an Obligor that is   inconsistent with the priorities or other provisions of this Agreement. If,   in connection with an Insolvency Proceeding involving an Obligor, the Term   Loan Lender Parties receive any cash, debt, or equity securities on account   of their Term Loan Secured Claims in respect of their interest in the ABL   Priority Collateral (excluding, for the avoidance of doubt, debt obligations   referenced in the first sentence of this Section 4.5), the Term Loan Agent or   the other Term Loan Lender Parties, as applicable, shall turn over such cash,   claims, or securities to ABL Agent for application in accordance with the   Payment Waterfall, unless the distribution of such cash, claims, or   securities is made pursuant to a confirmed plan of reorganization of such   Obligor that is accepted by the requisite affirmative vote of all classes   composed of the secured claims of the ABL Lender Parties in the ABL -37- 

    

 

Priority   Collateral pursuant to Section 1126 of the Bankruptcy Code. If, in connection   with an Insolvency Proceeding involving an Obligor, the ABL Lender Parties   receive any cash, debt, or equity securities on account of their ABL Secured   Claims in respect of their interest in the Term Loan Priority Collateral   (excluding, for the avoidance of doubt, debt obligations referenced in the   first sentence of this Section 4.5), the ABL Agent or the other ABL Lender   Parties, as applicable, shall turnover such cash, claims, or securities to   the Term Loan Lender Parties (as directed by either the Term Loan Agent or   the Term Loan Lender Parties in writing) for application in accordance with   the Payment Waterfall, unless the distribution of such cash, claims, or   securities is made pursuant to a confirmed plan of reorganization of such   Obligor that is accepted by the requisite affirmative vote of all classes   composed of the secured claims of the Term Loan Lender Parties in the Term   Loan Priority Collateral pursuant to Section 1126 of the Bankruptcy Code. 4.6   Each of the Term Loan Agent, for itself and on behalf of each other Term Loan   Lender Party, and the ABL Agent, for itself and on behalf of each other ABL   Lender Party, acknowledges and agrees that (a) the claims and interests of   the ABL Lender Parties and the Term Loan Lender Parties are not   "substantially similar" within the meaning of Section 1122 of the   Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, (b)   the grants of the Liens pursuant to the ABL Loan Documents and the Term Loan   Documents constitute two separate and distinct grants of Liens, (c) because   of, among other things, their differing rights in the Collateral, the ABL   Debt is fundamentally different from the Term Debt, and vice versa, and the   ABL Debt and the Term Debt must be separately classified in any plan of   reorganization proposed or adopted in any Insolvency Proceeding. To further   effectuate the intent of the parties as provided in the immediately preceding   sentence, if it is held that the claims of the ABL Lender Parties and the   Term Loan Lender Parties in respect of the Collateral constitute only one   secured claim (rather than separate classes of secured claims), then each of   the parties hereto hereby acknowledges and agrees that, subject to Section   2.2 and Section 2.4, all distributions shall be made as if there were   separate classes of secured claims against the Obligors in respect of the   Collateral. SECTION 5. MISCELLANEOUS 5.1 The Term Loan Agent and the Term   Loan Lenders, on the one hand, and the ABL Agent and the ABL Lenders, on the   other hand, each hereby represents and warrants to the other Lenders that:   (i) the execution, delivery and performance of this Agreement by such Lender   is within the powers of such Lender, have been duly authorized by such   Lender, and do not contravene any law, any provision of any of the Documents   to which such Lender is a party or any other agreement to which such Lender   is a party or by which it is bound, and (ii) this Agreement constitutes the   legal, valid and binding obligations of such Lender, enforceable in   accordance with its terms and shall be binding on it (except as such enforceability   may be limited by applicable bankruptcy, insolvency, or similar laws   affecting the enforcement of creditors' rights generally and by equitable   principles). The ABL Agent represents and warrants to the Term Loan Lender   Parties that it has been authorized by the ABL Lender Parties under the ABL   Credit Agreement to enter into this Agreement on behalf of each of the ABL   Lender Parties and that each ABL Lender Party is bound by the terms and   provisions of this Agreement. -38- 

    

 

5.2 Any   amendment, restatement, supplement, modification, waiver, permit, consent or   approval by any Lender of or under any provision, condition or covenant to   this Agreement must be in writing and shall be effective only to the extent   it is set forth in writing and as to the specific facts or circumstances   covered thereby. Any amendment, restatement, supplement, or other   modification of this Agreement must be in writing and signed by the ABL Agent   and the Term Loan Lender Parties, and Obligors shall have no right to consent   to any amendment, restatement, supplement or other modification of this   Agreement (and any such amendment, restatement, supplement or other   modification of this Agreement shall be effective without any signature of   any Obligor). 5.3This Agreement shall be binding upon each Lender and its   respective successors and assigns and shall inure to the benefit of each   Lender and its respective successors, participants and assigns. In connection   with any participation or other transfer or assignment of the ABL Debt or the   Term Debt, a Lender shall disclose to such participant or other transferee or   assignee the existence and terms and conditions of this Agreement. In the   case of any participation or other transfer or assignment the participant, assignee   or transferee acquiring any interest in the Term Debt or the ABL Debt, as the   case may be, shall execute and deliver to the ABL Agent or the Term Loan   Lender Parties, respectively, a written acknowledgment of receipt of a copy   of this Agreement and the written agreement by such Person to be bound by the   terms of this Agreement. The ABL Credit Agreement shall provide that at all   times the ABL Agent has the power and authority to bind the ABL Lender   Parties for which it acts as agent to the terms of this Agreement and to act   as agent for the ABL Lender Parties in respect of receiving all notices to be   delivered to an ABL Lender Party hereunder. 5.4 In connection with any   assignment or transfer of any or all of the indebtedness of the ABL Lender   Parties or any or all rights of ABL Lender Parties in the property of the   Obligors (other than pursuant to a participation) that is permitted by this   Agreement (other than, for the avoidance of doubt, in connection with the   exercise of the purchase option in Section 3), the Term Loan Lender Parties   agree to execute and deliver an agreement identical to this Agreement   (subject to changing names of parties, documents and addresses, as   appropriate) in favor of any such permitted assignee or transferee and, in   addition, will execute and deliver an agreement identical to this Agreement   (subject to changing names of parties, documents and addresses, as   appropriate) in favor of any permitted third person who succeeds to or   Refinances, replaces or substitutes for any or all of the ABL Lender Parties'   financing of the Borrowers in a manner that is expressly permitted by this   Agreement, whether such successor or replacement financing occurs by   transfer, assignment, "takeout" or any other means or vehicle, so   long as, in each case, it is permitted by this Agreement. In connection with   any assignment or transfer of any or all of the indebtedness of the Term Loan   Agent and the Term Loan Lenders or any or all rights of the Term Loan Agent   and the Term Loan Lenders in the property of any Obligor (other than pursuant   to a participation) that is permitted by this Agreement, the ABL Lender   Parties agree to execute and deliver an agreement identical to this Agreement   (subject to changing names of parties, documents and addresses, as appropriate)   in favor of any such permitted assignee or transferee and, in addition, will   execute and deliver an agreement identical to this Agreement (subject to   changing names of parties, documents and addresses, as appropriate) in favor   of any permitted third person who succeeds to or Refinances, replaces or   substitutes for any or all of the Term Loan Agent's and the Term Loan   Lenders' financing of any Obligor in a manner that is expressly permitted by   this Agreement, whether such successor or replacement financing occurs -39- 

    

 

by transfer,   assignment, "takeout" or any other means or vehicle, so long as, in   each case, it is permitted by this Agreement. Notwithstanding anything to the   contrary in this Agreement, no Lender shall assign its rights or obligations   under this Agreement to any of the Obligors or any of their Subsidiaries.   5.5(a)The ABL Agent hereby acknowledges and agrees that it holds Liens in and   on any of the Collateral in its possession or under its control (or, in each   case, in the possession or under the control of its representatives), in its   capacity as collateral agent on behalf of each of itself and the Term Loan   Agent for the benefit of the Term Loan Lender Parties, respectively,   including, without limitation, Liens on deposit accounts, securities   accounts, commodity accounts, lockboxes or other similar accounts and the   Term Loan Agent hereby acknowledges and agrees that it holds Liens in and on   any of the Collateral in its possession or under its control (or in the   possession or under the control of its representatives), in its capacity as   collateral agent on behalf of each of itself and the ABL Agent for the   benefit of the ABL Lenders, respectively, including, without limitation,   Liens on deposit accounts deposit accounts, securities accounts, commodity   accounts, lockboxes or other similar accounts; provided, that, the Lender in   the possession or control of any Collateral shall not have any duty or   liability to protect or preserve any rights pertaining to such Collateral, or   any obligation to the non-possessing or non-controlling Lenders with respect   to such Collateral other than as expressly set forth in this Section 5.5,   and, except for gross negligence or willful misconduct as determined pursuant   to a final non-appealable order of a court of competent jurisdiction, each   non-possessing or non-controlling Lender hereby waives and releases each of   the other Lenders from, all claims and liabilities arising pursuant to the   possessing or controlling Lender's role as collateral agent with respect to   the Collateral. (b) Prior to the Payment in Full of the ABL Priority Debt,   any ABL Priority Collateral in the possession or under the control of the   Term Loan Agent or any Term Loan Lender shall be forthwith delivered to the   ABL Agent, except as otherwise may be required by applicable law or court   order. After Payment in Full of the ABL Priority Debt, the ABL Lender Parties   shall deliver (i) the remainder of the ABL Priority Collateral, if any, in   its possession to the Term Loan Agent (for the benefit of the Term Loan   Lender Parties), except as may otherwise be required by applicable law or   court order, (ii) a written notice prepared by any of the Term Loan Lender   Parties (at Borrowers' and the other Obligors’ sole expense) to each landlord   that has executed a landlord's waiver and each bailee that has executed a   bailee waiver stating that the Term Loan Lender Parties are entitled to   exercise the rights and take the actions set forth in such landlord's waiver   or bailee waiver and (iii) a written notice prepared by any of the Term Loan   Lender Parties (at Borrowers' and the other Obligors’ sole expense) to each   institution or intermediary maintaining a bank account, securities account,   commodity account, lockbox or other similar account of any Obligor stating   that the Term Loan Lender Parties are entitled to exercise the rights and   actions set forth in such institution's deposit account control agreement,   securities account control agreement, commodity account control agreement or   other similar agreement. (c) Prior to the Payment in Full of all of the Term   Debt, any Term Loan Priority Collateral in the possession or under the   control of the ABL Agent shall be forthwith delivered to the Term Loan Agent   (for the benefit of the Term Loan Lender Parties), except as otherwise may be   required by applicable law or court order. After Payment in Full of the Term   Debt, the Term -40- 

    

 

Loan Lender   Parties shall deliver (i) the remainder of the Term Loan Priority Collateral,   if any, in its possession to the ABL Agent, except as may otherwise be   required by applicable law or court order, (ii) a written notice prepared by   the ABL Agent (at Borrowers' and the other Obligors’ sole expense) to each   landlord that has executed a landlord's waiver and each bailee that has   executed a bailee waiver stating that the ABL Agent is entitled to exercise   the rights and take the actions set forth in such landlord's waiver or bailee   waiver and (iii) a written notice prepared by the ABL Agent (at Borrowers' and   the other Obligors’ sole expense) to each institution or intermediary   maintaining a bank account, securities account, commodity account, lockbox or   other similar account of any Obligor stating that the ABL Agent is entitled   to exercise the rights and actions set forth in such institution's deposit   account control agreement, securities account control agreement, commodity   account control agreement or other similar agreement. (d) The ABL Agent   agrees that, with respect to any Collateral under its control consisting of   deposit accounts, securities accounts, commodity accounts, lockboxes or other   similar accounts, at the written request of any of the Term Loan Lender   Parties at any time when the Term Loan Agent and the Term Loan Lenders would   be permitted to take Enforcement Actions against ABL Priority Collateral   pursuant to the terms of this Agreement, the ABL Agent shall deliver a   written notice prepared by any of the Term Loan Lender Parties (at Borrowers'   and the other Obligors’ sole expense) to the applicable financial institution   or other institution or intermediary directing that all proceeds of ABL   Priority Collateral shall be remitted to the ABL Agent or the Term Loan   Lender Parties, as applicable, for application in accordance with the   applicable Payment Waterfall. 5.6 All notices, requests and demands to or   upon the respective parties hereto shall be in writing and shall be deemed   duly given, made or received: if delivered in person, immediately upon   delivery; if by nationally recognized overnight courier service with   instructions to deliver the next Business Day, one (1) Business Day after   sending; if mailed by certified mail, return receipt requested three (3) days   after mailing to the parties; and if delivered by facsimile or electronic   mail when sent, provided that if not given during normal business hours for   the recipient, shall be deemed to have been given at the opening of business   on the next Business Day for the recipient, in each case of the foregoing, at   the applicable parties' applicable addresses set forth below (or to such   other addresses as the parties may designate in accordance with the   provisions of this Section 5.6): If to the ABL Agent or any ABL Lender:   Encina Business Credit, LLC 123 N Wacker Suite 2400 Chicago, IL 60606   Attention: Thomas Sullivan Email: -41- 

    

 

with a copy to   (which shall not constitute notice): Goldberg Kohn Ltd. 55 East Monroe   Street, Suite 3300 Chicago, Illinois 60603 Telephone: Facsimile: Email:   Attention: Danielle Wildern Juhle If to the Term Loan Agent or any Term Loan   Lender: c/o Deerfield Management Company, L.P. 780 Third Avenue, 37th Floor   New York, NY 10017 Facsimile: E-mail: Attention: David J. Clark, Esq. and a   copy to (which shall not constitute notice): Katten Muchin Rosenman LLP 2029 Century   Park East, Suite 2600 Los Angeles, CA 90067 Attention: Kristopher Ring and   Mark Wood Facsimile: Either of the above Lenders may change the address(es)   to which all notices, requests and other communications are to be sent by   giving written notice of such address change to the other Lender in   conformity with this Section 5.6, but such change shall not be effective   until notice of such change has been received by the other Lender. 5.7 EACH   PARTY HERETO HEREBY CONSENTS AND AGREES THAT ANY U.S. FEDERAL OR NEW YORK   STATE COURT SITTING IN NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION   TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE PARTIES HERETO   PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO   THIS AGREEMENT, PROVIDED, THAT, THE PARTIES HERETO ACKNOWLEDGE THAT ANY   APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF   NEW YORK, NEW YORK AND PROVIDED, FURTHER, NOTHING IN THIS AGREEMENT SHALL BE   DEEMED OR OPERATE TO PRECLUDE ANY LENDER FROM BRINGING SUIT OR TAKING OTHER   LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY   OTHER SECURITY FOR THE ABL DEBT OR TERM DEBT, OR TO ENFORCE A JUDGMENT OR   OTHER COURT ORDER IN FAVOR OF SUCH LENDER. EACH PARTY HERETO EXPRESSLY   SUBMITS AND -42-Email: 

    

 

CONSENTS IN   ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH   COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION WHICH SUCH PARTY MAY   HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON   CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE   RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH PARTY HERETO HEREBY   WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN   ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS   AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO   SUCH PARTY AT THE ADDRESS FOR NOTICES PURSUANT TO SECTION 5.6 AND THAT   SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY'S   ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS,   PROPER POSTAGE PREPAID. 5.8IN ALL RESPECTS, INCLUDING ALL MATTERS OF   CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY,   AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW   YORK (BUT NOT THE LAW OF CONFLICTS) APPLICABLE TO CONTRACTS MADE AND   PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF   AMERICA. 5.9 FINANCIAL RESOLVED BECAUSE DISPUTES ARISING IN CONNECTION WITH   COMPLEX TRANSACTIONS AREMOST QUICKLY AND ECONOMICALLY BY AN EXPERIENCED AND   EXPERT PERSON AND THE PARTIES HERETO WISH APPLICABLE STATE AND FEDERAL LAWS   TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES HERETO DESIRE THAT   THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.   THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL   SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY   JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER   SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE PARTIES HERETO ARISING OUT   OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED   AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE TRANSACTIONS   RELATED HERETO. 5.10 This Agreement is intended by the parties as a final   expression of their agreement and is intended as a complete statement of the   terms and conditions of their agreement with respect to the subject matter   hereof. This Agreement may be executed in any number of counterparts, each of   which shall be an original with the same force and effect as if the   signatures thereto and hereto were upon the same instrument. Signatures   delivered by facsimile or email transmission shall have the same force and   effect as original signatures. 5.11 Except as expressly provided in Section   5.3 and Section 5.4 and except for consents which are deemed to have been   given under Section 2.10 hereof, this Agreement is solely for the benefit of   the Lenders and their respective successors, participants and assigns, and   -43- 

    

 

no other Person   shall have any right, benefit, priority or interest under, or because of the   existence of, this Agreement. 5.12 This Agreement is a continuing agreement   and shall remain in full force and effect until the earlier of (i) the   Payment in Full of the ABL Debt or (ii) the Payment in Full of the Term Debt.   5.13 The Lenders shall each be responsible for keeping themselves informed of   (a) the financial condition of the Obligors and all other all endorsers,   obligors and/or guarantors of the ABL Debt and/or Term Debt and (b) all other   circumstances bearing upon the risk of nonpayment of the ABL Debt and Term   Debt. No Lender shall have any duty to advise any other Lender of information   known to it regarding such condition or any such other circumstances. No   Lender assumes any liability to any other Lender or to any other Person with   respect to: (i) the financial or other condition of Obligors, (ii) the   enforceability, validity, value or collectability of the ABL Debt, the Term   Debt, any Collateral therefor or any guarantee or security which may have   been granted in connection with any of the foregoing or (iii) any Obligor's   title or right to transfer any Collateral or security. 5.14 For purposes of   this Agreement, the words "including" and "include" shall   mean "including, without limitation" and "include, without   limitation". 5.15 Should any Lender in any way take, attempt to, or   threaten to take any action contrary to terms of this Agreement with respect   to the Collateral, or fail to take any action required by this Agreement, the   ABL Agent or any of the Term Loan Lender Parties, as the case may be, may   obtain relief against such Lender by injunction, specific performance, or   other appropriate equitable relief, it being understood and agreed that (a)   damages from such actions may at that time be difficult to ascertain and may   be irreparable, and (b) each Lender waives any defense that the ABL Agent or   any of the Term Loan Lender Parties, as the case may be, cannot demonstrate   damage and/or be made whole by the awarding of damages. The parties hereto   hereby irrevocably waive any defense based on the adequacy of a remedy at law   and any other defense which might be asserted to bar the remedy of specific   performance in any action which may be brought by the ABL Agent or any of the   Term Loan Lender Parties, as the case may be. 5.16 Each party hereto agrees   to cooperate fully with each other party hereto to effectuate the intent and   provisions of this Agreement and, from time to time, to take such further   action and to execute and deliver such additional agreements, instruments and   documents (in recordable form, if requested) as the applicable party may   reasonably request to effectuate the terms of and the Lien priorities   contemplated by this Agreement. 5.17 If, in accordance with the terms of this   Agreement, a Junior Secured Creditor pays or distributes cash, property, or   other assets to a Senior Secured Creditor, the Junior Secured Creditor will   be subrogated to the rights of the Senior Secured Creditor with respect to   the value of the payment or distribution; provided that the Junior Secured   Creditor postpones all rights of subrogation arising hereunder or otherwise   in respect of any such payment or distribution until the discharge of the   Debt secured by the applicable senior Lien in accordance with the terms of   this Agreement. Such payment or distribution will not reduce the applicable   Debt with respect to the Obligors. -44- 

    

 

5.18   Notwithstanding anything to the contrary in this Agreement and for the   avoidance of doubt, none of the Conversion Shares, the Principal Payment   Shares, the Interest Payment Shares, the Registration Rights Agreement or the   Second Amendment Registration Rights Agreement (in each case, as defined in   the Term Credit Agreement as in effect on the date hereof) or any obligations   or payments thereunder or in respect thereof (including in respect of the   issuance of any Conversion Shares, Principal Payment Shares or Interest Payment   Shares) or in respect of the conversion of the Notes (as defined in the Term   Credit Agreement), shall be subject to any restrictions, caps, prohibitions   or limitations under this Agreement. 5.19 The parties hereto acknowledge that   (a) neither any such party nor any Obligor has any obligation of   confidentiality (or other duty of trust or confidence) in respect of this   Agreement, the ABL Loan Documents (other than any fee letter constituting an   ABL Loan Document) or the terms hereof or thereof, and (b) the Company may   describe the terms of this Agreement and the ABL Loan Documents (other than   any fees reasonably identified as confidential by ABL Agent to any Obligor)   in a filing (or filings) with the SEC, and may file each of this Agreement   and the ABL Loan Documents (other than any fee letter constituting an ABL   Loan Document) (in its entirety and without redaction) with the SEC, and   thereby make publicly available such terms and agreements. 5.20 The parties   hereto (a) acknowledge that all Deposit Accounts of the Obligors in existence   on the date hereof and that are not Restricted Accounts have been designated   between the Term Loan Agent and the ABL Agent, in a manner acceptable to   both, as either Term Priority Deposit Accounts or ABL Priority Deposit Accounts   and (b) agree to work in good faith to so designate any new Deposit Accounts   opened in the future and acknowledge and agree that any such Deposit Accounts   shall not constitute ABL Priority Deposit Accounts or Term Priority Deposit   Parties. Accounts until so agreed in writing by the ABL Agent and the Term   Loan Lender [remainder of page intentionally left blank; signature pages   follow] -45- 

    

 

IN WITNESS   WHEREOF, the parties have caused this Intercreditor Agreement to be duly   executed as of the day and year first above written. ABL AGENT, on behalf of   ABL Lender Parties: ENCINA BUSINESS CREDIT, LLC By: /s/ Jean R. Elis Name:   Jean R. Elis Title: Authorized Signatory Signature Page to Intercreditor   Agreement

    

 

TERM LOAN   AGENT: DEERFIELD MGMT, L.P. By: J.E. Flynn Capital III, LLC, General Partner   By: /s/ David J. ClarkName: David J. Clark Title: Authorized Signatory TERM   LOAN LENDERS: DEERFIELD PRIVATE DESIGN FUND III, L.P. By: Deerfield Mgmt III,   L.P., General Partner By: J.E. Flynn Capital III, LLC, General Partner By:   /s/ David J. ClarkName: David J. Clark Title: Authorized Signatory DEERFIELD   SPECIAL SITUATIONS FUND, L.P. By: Deerfield Mgmt III, L.P., General Partner   By: J.E. Flynn Capital III, LLC, General Partner By: /s/ David J. Clark Name:   David J. Clark Title: Authorized Signatory Signature Page to Intercreditor   Agreement

    

 

Each of the   undersigned hereby acknowledges and agrees to the foregoing Intercreditor   Agreement. By its signature below, each of the undersigned agrees that it   will, together with its successors and assigns, be bound by the provisions of   the foregoing Intercreditor Agreement. In addition, each of the undersigned   agrees that (x) any Lender holding or otherwise controlling ABL Priority Collateral   (the "ABL Controlling Creditor") does so as bailee (under the UCC)   for and on behalf of the other Lenders which have a Lien on such ABL Priority   Collateral, and each ABL Controlling Creditor is hereby authorized to and may   turn over to any of the Term Loan Lender Parties upon request therefor any   such ABL Priority Collateral, after all obligations and indebtedness of the   undersigned to such ABL Controlling Creditor shall have been Paid in Full and   (y) any Lender holding or otherwise controlling Term Loan Priority Collateral   (the "Term Controlling Creditor") does so as bailee (under the UCC)   for and on behalf of the other Lenders which have a Lien on such Term Loan   Priority Collateral, and each Term Controlling Creditor is hereby authorized   to and may turn over to the ABL Agent upon request therefor any such Term   Loan Priority Collateral, after all obligations and indebtedness of the   undersigned to such Term Controlling Creditor shall have been Paid in Full.   Each of the undersigned hereby acknowledges and agrees that (a) it will not   (i) open after the date hereof any new Deposit Accounts that are not   Restricted Accounts unless the Term Loan Lender Parties and ABL Agent have   agreed in writing on the designation of such new Deposit Accounts as being   either Term Priority Deposit Accounts or ABL Priority Deposit Accounts, (ii)   deposit (or otherwise hold, maintain or keep) in any ABL Priority Deposit   Account or any other Deposit Account (other than a Term Priority Deposit   Account) (A) any Term Loan Priority Collateral, (B) any amounts held,   maintained or kept in any Term Priority Deposit Account, (C) any proceeds of   any Term Loan Priority Collateral, (D) any proceeds of the sale or other   disposition of any Equity Interests in the Company or any of its Affiliates   (including, without limitation and for the avoidance of doubt cash and other   amounts which are held in any Term Priority Deposit Account as of the date   hereof or at any time after the date hereof), (E) any proceeds from third   party sources that are outside the ordinary course of business of the   Company, any other Obligor and/or their Subsidiaries and (F) any proceeds or   amounts of loans, credit extensions or other advances under the Term Loan   Documents, or (iii) deposit (or otherwise hold, maintain or keep) in any Term   Priority Deposit Account or any other Deposit Account (other than an ABL   Priority Deposit Account or a Restricted Account) (A) any ABL Priority   Collateral, (B) any proceeds of any ABL Priority Collateral or (C) any   proceeds of revolving loans under the ABL Credit Agreement; (b) any breach or   violation of any clause or provision in this paragraph shall be an immediate   “Event of Default” (as defined in the Term Credit Agreement) and an immediate   “Event of Default” (as defined in the ABL Credit Agreement); and (c) the   foregoing Intercreditor Agreement is a “Loan Document” (as defined in the   Term Credit Agreement) and a “Loan Document” (as defined in the ABL Credit   Agreement). Each of the undersigned acknowledges and agrees that: (i)   although it may sign this Intercreditor Agreement it is not a party hereto   and does not and will not receive any right, benefit, priority or interest   under or because of the existence of the foregoing Intercreditor Agreement,   and (ii) it will execute and deliver such additional agreements, instruments   and documents and take such additional action as may be necessary or   desirable in the reasonable opinion of any of the Lenders to effectuate the   provisions and purposes of the foregoing Intercreditor Agreement. 

    

 

[remainder of   page intentionally left blank; signature page follows] -49- 

    

 

NEOS   THERAPEUTICS, INC., a Delaware corporation, as an Obligor By: /s/ Gerald   McLaughlin Name: Gerald McLaughlin Title: Chief Executive Officer and   PresidentNEOS THERAPEUTICS COMMERCIAL, LLC, a Delaware limited liability   company, as an Obligor By: /s/ Gerald McLaughlin Name: Gerald McLaughlin   Title: Chief Executive Officer and PresidentNEOS THERAPEUTICS BRANDS, LLC, a   Delaware limited liability company, as an Obligor By: /s/ Gerald McLaughlin   Name: Gerald McLaughlinTitle: Chief Executive Officer and PresidentNEOS   THERAPEUTICS, LP, a Texas limited partnership, as an Obligor By: PharmaFab   Texas, LLC, its general partner By: /s/ Gerald McLaughlin Name: /s/ Gerald   McLaughlinTitle: Sole ManagerPHARMAFAB TEXAS, LLC, a Texas limited liability   company, as an Obligor By: /s/ Gerald McLaughlin Name: Gerald McLaughlin   Title: Sole Manager Signature Page to Intercreditor Agreement

    

 

EXHIBIT A FORM   OF ABL REQUIRED PURCHASE OPTION INFORMATION [See Attached] 

    

 

APPROVED FORMAT   OF REQUIRED ABL PURCHASE OPTION INFORMATION1 The amount of the ABL Debt, the   ABL Priority Debt and the ABL Purchase Price2: 1. a. ABL Debt as of the close   of the Business Day [insert date]: $ . b. ABL Priority Debt as of the close   of the Business Day [insert date]: $ . c. ABL Purchase Price: as of the close   of the Business Day [insert date]: $ . 2. (i) Definitions of the collateral   pledged thereunder, (ii) reasonable description (including, without   limitation, the legal names thereof as set forth in the most recent charter   documents (certified by the applicable governmental office of the state of   organization of such Person) delivered by the Obligors or their   representatives or ordered by any of the ABL Lender Parties or their   representatives, after giving effect to any notices of changes to such legal   names provided by any of the Obligors or their representatives in accordance   with the ABL Loan Documents) of all borrowers, guarantors, endorsers and   obligors under the ABL Loan Documents and (iii) reasonable description and   definition of the Obligations under the ABL Loan Documents: a. [Insert   current definition of Collateral and Excluded Property from ABL Credit   Agreement and the other ABL Loan Documents and provide granting clause]:   Collateral definition from ABL Credit Agreement: ["Collateral"   means all property and interests in property in or upon which a security   interest, mortgage, pledge or other Lien is granted pursuant to this   Agreement or the other Loan Documents, including all of the property of each   Loan Party Obligor described in Section 5.1 of the ABL Credit Agreement, but   excluding any Excluded Property.] Excluded Property definition from ABL   Credit Agreement: [Notwithstanding anything to the contrary contained herein,   the security interests granted under this Agreement or any other Loan   Document shall not extend to (a) any permit or license issued by a   Governmental Authority to any Loan Party or any agreement to which any Loan   Party is a party, in each case, only to the extent and for so long as the   terms of such permit, license or agreement or any requirement of applicable   law, validly prohibit the creation by such Loan Party of a security interest   in such permit, license or agreement in favor of the Lender (after giving   effect to Sections 9-406(d), 9-407(a), 9-408(a) or 9-409 of the UCC (or any   successor provision or 1 Capitalized terms used herein without definition   shall have the meaning set forth in the Intercreditor Agreement (the   “Intercreditor Agreement”) to which this Exhibit A is attached. 2 Amounts as   provided as of the date set forth herein and are subject to change given the   revolving nature of the ABL Debt and will be updated upon request so long as   the exact amounts thereof are provided in writing within a reasonable time   prior to the Purchase Date that allows the Term Purchasing Lenders to   determine whether to revoke the purchase of the ABL Priority Debt (or, as   applicable, the ABL Debt). 

    

 

provisions) or   any other applicable law (including the Code) or principles of equity); (b)   any intent-to-use trademark application, to the extent and for so long as   creation by a pledgor of a security interest therein would result in the   loss, termination, invalidity, cancellation, unenforceability or abandonment   by such pledgor of any material rights therein; and (c) the Restricted   Accounts (the forgoing, collectively, the "Excluded Property";   provided, however, that Excluded Property shall not include any Proceeds,   substitutions or replacements of any Excluded Property referred to in clauses   (a), (b) or (c) (unless such Proceeds, substitutions or replacements would   constitute Excluded Property referred to in clauses (a), (b) or (c))).]   Granting clause - (Section 5.1 of the ABL Credit Agreement): [“(a) all   Accounts (whether or not Eligible Accounts) and all Goods whose sale, lease   or other disposition by any Loan Party Obligor has given rise to Accounts and   have been returned to, or repossessed or stopped in transit by, any Loan   Party Obligor; (b) all Chattel Paper (including Electronic Chattel Paper),   Instruments, Documents, and General Intangibles (including all patents,   patent applications, trademarks, trademark applications, trade names, trade   secrets, goodwill, copyrights, copyright applications, registrations,   licenses, software, franchises, customer lists, tax refund claims, claims   against carriers and shippers, guaranty claims, contracts rights, payment   intangibles, security interests, security deposits and rights to   indemnification); (c) all Inventory; (d) all Goods (other than Inventory),   including Equipment, Health-Care-Insurance Receivables, vehicles, and   Fixtures; (e) all Investment Property, including all rights, privileges,   authority, and powers of each Loan Party Obligor as an owner or as a holder   of Pledged Equity, including all economic rights, all control rights,   authority and powers, and all status rights of each Loan Party Obligor as a   member, equity holder or shareholder, as applicable, of each Issuer and any   rights related to any Loan Party Obligors' capital account within the Issuer   in respect of Investment Property; (f) all Deposit Accounts, bank accounts,   deposits, money and cash; (g) all Letter-of-Credit Rights; (h) all Commercial   Tort Claims listed in Section 2 of the Perfection Certificate; (i) all   Supporting Obligations; (j) all life insurance policies; (k) all leases; (l)   [Reserved]; (m) any other property of any Loan Party Obligor now or hereafter   in the possession, custody or control of Agent or any agent or any parent,   Affiliate or Subsidiary of Agent, any Lender or any Participant with Lender   in the Loans, for any purpose (whether for safekeeping, deposit, collection,   custody, pledge, transmission or otherwise); and (n) all additions and   accessions to, substitutions for, and replacements, products and Proceeds of   the foregoing property, including proceeds of all insurance policies insuring   the foregoing property (including hazard, flood and credit insurance), and   all of each Loan Party Obligor's books and records relating to any of the   foregoing and to any Loan Party's business.”] b. All borrowers, guarantors,   endorsers and obligors under the ABL Loan Documents (and whether any such   Persons are only obligated for certain (but not all) Obligations (and/or have   provided only certain assets (instead of all or substantially all assets) as   collateral), such as limited guarantors): [NEOS THERAPEUTICS, INC., a   Delaware corporation ("Company"), NEOS THERAPEUTICS, LP, a Texas   limited partnership (“NT LP”), NEOS 

    

 

THERAPEUTICS   BRANDS, LLC, a Delaware limited liability company ("NT Brands");   together with Company, [and] NT LP [and ], each a "Borrower" and   collectively the "Borrowers")[, NEOS THERAPEUTICS COMMERCIAL, LLC,   a Delaware limited liability company ("NT Commercial"), [and]   PHARMAFAB TEXAS, LLC, a Texas limited liability company [and [ (“ ”)]]   ("NT PharmaFab"; together with NT Commercial [and ], each an   “Obligor” and collectively the “Obligors”), each of the foregoing in this   paragraph a “Loan Party Obligor” and collectively the “Loan Party   Obligors”).] c. [Obligations (and any “Secured Obligations” or “Guaranteed   Obligations” definitions (or terms or words of similar context or meaning)):   See amounts set forth in 1 above. The ABL Credit Agreement defines “Obligations”   as: "Obligations" means all present and future Loans, advances,   debts, liabilities, fees, expenses, obligations, guaranties, covenants,   duties and indebtedness at any time owing by any Borrower or any Loan Party   Obligor to Agent and Lenders, whether evidenced by this Agreement, any other   Loan Document or otherwise, whether arising from an extension of credit,   guaranty, indemnification or otherwise, whether direct or indirect (including   those acquired by assignment and any participation by any Lender in any   Borrower's or any Loan Party Obligor’s indebtedness owing to others), whether   absolute or contingent, whether due or to become due and whether arising   before or after the commencement of a proceeding under the Bankruptcy Code or   any similar statute.] 3. Copies of ABL Loan Documents: [Dropbox link to   folder which shall contain all agreements, instruments and documents listed   on the Closing Checklist set forth on Exhibit B to the ABL Credit Agreement   (and all Perfection Certificates and other agreements, instruments and   documents that are “Loan Documents” under the ABL Credit Agreement or “ABL   Loan Documents” under the Intercreditor Agreement (but excluding (i) any   Borrowing Base Certificates that were dated and delivered more than one year   prior to the date of the Purchase Trigger Notice and (ii) other immaterial   notices and certificates delivered by any Loan Party to ABL Agent after the   date of the ABL Credit Agreement), and any and all amendments, restatements,   supplements, extensions, renewals, Refinancings, waivers, consents or other   modifications to such agreements, instruments and documents entered into   since the date of the ABL Credit Agreement] 4. To the extent not covered by   #3 directly above, copies of all Lien perfection and control documents   related to the Liens granted under the ABL Loan Documents (including filed   and recorded copies thereof to the extent applicable and any amendments,   continuations, releases and terminations thereof). [Dropbox link to folder   which shall contain all such documents] 

    

 

5. The deposit   account of ABL Agent in which any ABL Purchase Price shall be paid by any   Term Purchasing Lenders, any other wire information necessary or advisable   for any Term Loan Lender to make such purchase and an executed W-9 from ABL   Agent: a. Deposit account and wire transfer instructions for ABL Purchase   Price: [To be completed at the time of delivery] b. W-9 from ABL Agent [to   be] attached hereto. 

    

 

EXHIBIT B FORM   OF ASSIGNMENT AND ASSUMPTION 3 This Assignment and Assumption (the   “Assignment and Assumption”) is dated as of the Effective Date set forth   below and is entered into by and between [the][each]4 Assignor identified in   item 1 below ([the][each, an] “Assignor”) and [the][each]5 Assignee   identified in item 2 below ([the][each, an] “Assignee”). [It is understood   and agreed that the rights and obligations of [the Assignors][the Assignees]6   hereunder are several and not joint.]7 Capitalized terms used but not defined   herein (including, for the avoidance of doubt, Annex 1 hereto) shall have the   meanings given to them in the Credit Agreement identified below (as amended,   restated, supplemented or otherwise modified prior to the date hereof in   accordance with the terms and provisions of the Intercreditor Agreement   identified below, the “Credit Agreement”) or in the Intercreditor Agreement,   as applicable. The Standard Terms and Conditions set forth in Annex 1   attached hereto are hereby agreed to and incorporated herein by reference and   made a part of this Assignment and Assumption as if set forth herein in full.   For an agreed consideration, the receipt and sufficiency of which are hereby   acknowledged, [the][each] Assignor hereby irrevocably sells and assigns to   [the Assignee][the respective Assignees], and [the][each] Assignee hereby   irrevocably purchases and assumes from [the Assignor][the respective   Assignors], subject to and in accordance with the Standard Terms and   Conditions and the Credit Agreement, as of the Effective Date inserted by the   Assignor and Assignee in accordance with the Intercreditor Agreement as   contemplated below (i) all of [the Assignor’s][the respective Assignors’]   rights and obligations in [its capacity as a Lender][their respective capacities   as Lenders] under the Credit Agreement, the Loan Documents and any other   agreements, documents or instruments delivered pursuant thereto to the extent   related to the amount and percentage interest identified below of all of such   outstanding rights and obligations of [the Assignor][the respective   Assignors] under the respective facilities identified below (including   without limitation any letters of credit, guarantees, and swingline loans   included in such facilities), and (ii) to the extent permitted to be assigned   under applicable law, all claims, suits, causes of action and any other right   of [the Assignor (in its capacity as a Lender)][the respective Assignors (in   their respective capacities as Lenders)] against any Person, whether known or   unknown, arising under or in connection with the Credit Agreement, the other   Loan Documents any other agreements, documents or instruments delivered   pursuant thereto or the loan transactions governed thereby or in any way   based on or related to any of the foregoing, including, but not limited to,   contract claims, tort claims, malpractice claims, statutory claims and all   other claims at law or in equity related to the rights and obligations sold   and assigned pursuant to clause (i) above (the rights and obligations sold   and assigned by [the][any] Assignor to [the][any] Assignee pursuant to   clauses (i) and (ii) above being referred to herein collectively as [the][an]   3 Additional provisions to be included herein (or in a separate agreement) if   the Person in the capacity of the ABL Agent is being removed or is resigning.   4 For bracketed language here and elsewhere in this form relating to the   Assignor(s), if the assignment is from a single Assignor, choose the first   bracketed language. If the assignment is from multiple Assignors, choose the   second bracketed language. 5 For bracketed language here and elsewhere in   this form relating to the Assignee(s), if the assignment is to a single   Assignee, choose the first bracketed language. If the assignment is to   multiple Assignees, choose the second bracketed language. 6 Select as   appropriate. 7 Include bracketed language if there are either multiple   Assignors or multiple Assignees. 

    

 

“Assigned   Interest”). Except as provided in this Assignment and Assumption, each such   sale and assignment is without recourse to [the][any] Assignor and, except as   expressly provided in this Assignment and Assumption, without representation   or warranty by [the][any] Assignor. 1. Assignor[s]: 2. Assignee[s]: [Assignee   is an [Affiliate][Approved Fund] of [identify Lender] 3. Borrowers: [Neos   Therapeutics, Inc., a Delaware corporation, Neos Therapeutics Brands, LLC, a   Delaware limited liability company, and Neos Therapeutics, LP, a Texas   limited partnership] Other Loan Party Obligors: [Neos Therapeutics   Commercial, LLC, a Delaware limited liability company, and PharmaFab Texas,   LLC, a Texas limited liability company] 4. Agent: [Encina Business Credit,   LLC], as the agent for the Lenders under the Credit Agreement 5. Credit   Agreement: The Loan and Security Agreement dated as of October 2, 2019, by   and among [Neos Therapeutics, Inc., a Delaware corporation (the   "Company"), Neos Therapeutics Brands, LLC, a Delaware limited   liability company ("NT Brands"), and Neos Therapeutics, LP, a Texas   limited partnership ("NT LP"; together with the Company, NT Brands   and NT LP, collectively the "Borrowers"), Neos Therapeutics   Commercial, LLC, a Delaware limited liability company, as a “Loan Party   Obligor” (as defined therein), PharmaFab Texas, LLC, a Texas limited   liability company, as a “Loan Party Obligor” (as defined therein), the   “Lenders” (as defined therein) parties thereto, Encina Business Credit, LLC,   as “Agent” (as defined therein)], in the form included in the Required ABL   Purchase Option Information (as defined in the Intercreditor Agreement dated   as of October 2, 2019, by and between [Encina Business Credit, LLC, as the   “ABL Agent” (as defined therein) for the “ABL Lender Parties” (as defined   therein), Deerfield Mgmt, L.P., as the “Term Loan Agent” (as defined   therein), DeerfieldPrivate Design Fund III, L.P., as a “Term Loan Lender” (as   defined therein), and Deerfield Special Situations Fund, L.P., as a “Term   Loan Lender” (as defined therein)] 6. Assigned Interest[s]: Assignor[   Assignee Facility Aggregate Amount of Percentage CUSIP 

    

 

(if e) ]13 [7.   Trade Date: [Page break] 8 List each Assignor, as appropriate. 9 List each   Assignee, as appropriate. 10 Fill in the appropriate terminology for the   types of facilities under the Credit Agreement that are being assigned under   this Assignment and Assumption (e.g., “Revolving Credit Commitment,” “Term   Loan Commitment,” etc.) 11 Amount to be adjusted by the counterparties to   take into account any payments or prepayments made between the Trade Date and   the Effective Date. 12 Set forth, to at least 9 decimals, as a percentage of   the Commitment/Loans of all Lenders thereunder. 13 To be completed if the   Assignor(s) and the Assignee(s) intend that the minimum assignment amount is   to be determined as of the Trade Date. s]8 [s]9 Assigne d10 Amount of   Commitment/L oans for all Lenders11 Commitment/ Loans Assigned8 Assigned of   Commitment / Loans12 Number applicabl $ $ % $ $ % $ $ % 

    

 

Effective Date:   , 20 The terms set forth in this Assignment and Assumption are hereby agreed   to: ASSIGNOR[S]14 [NAME OF ASSIGNOR] By:_ Title: [NAME OF ASSIGNOR] By:_   Title: ASSIGNEE[S]15 [NAME OF ASSIGNEE] By:_ Title: [NAME OF ASSIGNEE] By:_   Title: [Consented to and]16 Accepted: [NAME OF ADMINISTRATIVE AGENT], as   Administrative Agent By: _ Title: 14 Add additional signature blocks as   needed. 15 Add additional signature blocks as needed. 16 To be added only if   the consent of the Agent is required by the terms of the Intercreditor   Agreement. 

    

 

ANNEX 1   STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT AND ASSUMPTION 1.   Representations and Warranties. 1.1 Assignor[s]. [The][Each] Assignor (a)   represents and warrants that (i) it is the legal and beneficial owner of   [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is   free and clear of any lien, security interest, encumbrance or other adverse   claim, (iii) it has full power and authority, and has taken all action   necessary, to execute and deliver this Assignment and Assumption and to   consummate the transactions contemplated hereby, (iv) it is not a Defaulting   Lender, (v) the Lien perfection filings and documents set forth in Section 3   (f applicable) and Section 4 of the Required ABL Purchase Option Information   (i.e., the document in the form of Exhibit A of the Intercreditor Agreement)   have not been terminated by the ABL Agent, ABL Lender Parties, their   Affiliates or related funds, their counsel, agents or representatives or   Persons acting under their direction or control and no other actions have   been taken by any of the foregoing Persons to (A) terminate or release the   Liens that have ever been granted under the ABL Loan Documents or (B)   subordinate in writing (or in another method enforceable by law or court or   arbitration proceeding) the (or otherwise agree in writing (or in another   method enforceable by law or court or arbitration proceeding) with any Person   to provide for a lower) priority of any such Liens, (vi) its Commitment and   its outstanding Loans are set forth in the table in Section 6 above of this   Assignment and Assumption, (vii) it has not assigned, delegated or   transferred (or provided participation sales or interests in) [the][the   relevant] Assigned Interest (or any of its voting, consent or similar rights   under the Loan Documents) to any Person, (viii) it has not on or prior to the   date hereof entered into any amendments, restatements, supplements,   modifications, Refinancings, extensions, waivers, terminations, releases or   forbearance agreements (or consents to any departures) with respect to any of   the Loan Documents or any of the other Required ABL Purchase Option   Information except as disclosed prior to the date hereof in the information   provided in writing pursuant to the Required ABL Purchase Option Information   in accordance with the Intercreditor Agreement, (ix) the Required ABL   Purchase Option Information provided in connection with the Purchase Notice   dated [ ] (including, for the avoidance of doubt, any updates, supplements or   changes to any Required ABL Purchase Option Information provided on or after   such date) is true, correct, accurate and complete in all material respects   (without giving effect to any double materiality otherwise provided for), (x)   the amounts making up the ABL Purchase Price are the true, correct, accurate   and complete amounts provided in accordance with the terms and provisions of   the Intercreditor Agreement, (xi) it has been accorded the opportunity to   receive such agreements, instruments, documents and information as it deems   appropriate to make its own credit analysis and decision to enter into this   Assignment and Assumption and to sell, assign and transfer the Assigned   Interest, and (xii) it has, independently and without reliance upon the   Assignee or any of the Assignee’s Affiliates and based on such agreements,   instruments, documents and information as it has deemed appropriate, made its   own credit analysis and decision to enter into this Assignment and Assumption   and to sell, assign and transfer the Assigned Interest; (b) acknowledges that   (i) it is a sophisticated investor engaged in the business of assessing and   assuming investment risks with respect to securities, including securities   such as 

    

 

the Assigned   Interest, and further acknowledges that Assignee is entering into this   Assignment and Assumption with Assignor in reliance on this acknowledgment,   (ii)(A) none of it, the Assignee, any Loan Party, any Term Loan Lender Party,   any ABL Lender Party or any of their Affiliates (or any of their related or   managed funds) has any obligation of confidentiality (or other duty of trust   or confidence) in respect of this Assignment and Assumption, the   Intercreditor Agreement, any Loan Document or the terms hereof or thereof,   and (B) each Loan Party and each of its Affiliates may describe the terms of   this Assignment and Assumption, the Intercreditor Agreement and the Loan   Documents in a filing (or filings) with the SEC, and may file each of this   Assignment and Assumption, the Intercreditor Agreement and any Loan Document   (in its entirety and without redaction) with the SEC, and thereby make   publicly available such terms and agreements; and (c) assumes no   responsibility with respect to (i) any statements, warranties or   representations made in or in connection with the Credit Agreement or any   other Loan Document (in each case of this clause (c)(i), other than those   statements, warranties and/or representations by ABL Agent or any other ABL   Lender Party expressly set forth in the Intercreditor Agreement or in this   Assignment and Assumption), (ii) the execution, legality, validity,   enforceability, genuineness, sufficiency or value of the Loan Documents or   any collateral thereunder (in each case of this clause (c)(ii), other than   with respect to the due authorization, execution, delivery thereof by (and   the legality, validity, enforceability and genuineness thereof with respect   to) Assignor, managed) funds), (iii) the financial condition Affiliates or   any other Obligor obligated in its Affiliates and its and their related   (and/or of the Borrower, any of its Subsidiaries or respect of any Loan   Document, or (iv) the performance or observance by the Borrower, any of its   Subsidiaries or Affiliates or any other Obligor of any of their respective   obligations under any Loan Document. 1.2. Assignee[s]. [The][Each] Assignee   represents and warrants that (i) it has full power and authority, and has   taken all action necessary, to execute and deliver this Assignment and   Assumption and to consummate the transactions contemplated hereby and to   become a Lender under the Credit Agreement, (ii) from and after the Effective   Date, it shall be bound by the provisions of the Credit Agreement as a Lender   thereunder and, to the extent of [the][the relevant] Assigned Interest, shall   have the obligations of a Lender thereunder, (iv) it is sophisticated with   respect to decisions to acquire assets of the type represented by the   Assigned Interest and either it, or the Person exercising discretion in   making its decision to acquire the Assigned Interest, is experienced in   acquiring assets of such type, (v)(A) it has received a copy of the Credit   Agreement in the form provided in the Required ABL Purchase Option   Information, and (B) to the extent the Required ABL Purchase Option   Information (and the statements, representations and warranties by the ABL   Agent or any other ABL Lender Party expressly set forth in this Assignment   and Assumption or the Intercreditor Agreement) are true, correct, accurate   and complete in all material respects (without giving effect to any double materiality   otherwise provided for), it has received such information as it deems   appropriate to make its own credit analysis and decision to enter into this   Assignment and Assumption and to purchase [the][such] Assigned Interest, and   (vi) other than with respect to the Required ABL Purchase Option Information   (and the statements, representations and warranties by the ABL Agent or any   other ABL Lender Party expressly set forth in this Assignment and Assumption   or the Intercreditor Agreement), it has, independently and without reliance   upon the Agent or any other Lender and based on such documents and   information as it has deemed appropriate, made 

    

 

its own credit   analysis and decision to enter into this Assignment and Assumption and to   purchase [the][such] Assigned Interest. 2. Payments. From and after the   Effective Date, the Agent shall make all payments in respect of [the][each]   Assigned Interest (including payments of principal, interest, fees and other   amounts) to [the][the relevant] Assignee for amounts which have accrued prior   to, on or after the Effective Date. Notwithstanding the foregoing, the Agent   shall make all payments of interest, fees or other amounts paid or payable in   kind prior to, on or after the Effective Date to [the][the relevant]   Assignee. 3. General Provisions. This Assignment and Assumption shall be   binding upon, and inure to the benefit of, the parties hereto and their   respective successors and assigns. This Assignment and Assumption may be   executed in any number of counterparts, which together shall constitute one   instrument and agreement. Delivery of an executed counterpart of a signature   page of this Assignment and Assumption by telecopy, electronic mail or other   electronic method of transmission shall be effective as delivery of a   manually executed counterpart of this Assignment and Assumption. IN ALL   RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,   THIS ASSIGNMENT AND ASSUMPTION SHALL BE GOVERNED BY, AND CONSTRUED AND   ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (BUT NOT THE   LAW OF CONFLICTS) APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE   AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. [remainder of page   intentionally left blank]stockcertificate

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                                                                            *000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****                                                                                                                                                                                                                                                                                                                                                                                   000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****0                                                                                                        THIS CERTIFICATE IS TRANSFERABLE IN                                                                                                                                                                                                                                                                                                                                                                                   00000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****00                                                                                                                                                                                                                                                                                                                                                                                   0000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000***ZERO HUNDRED THOUSAND                                                                                 CITIES DESIGNATED BY THE TRANSFER                                                                                                                                                                                                                                                                                                                                                                                   000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****0000                                                                                                                                                                                                                                                                                                                                                                                   00**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****00000                                                                                                                       AGENT, AVAILABLE ONLINE AT                                                                                                                                                                                                                                                                                                                                                                                   0**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000ZERO HUNDRED AND ZERO***                                                                                                         www.computershare.com                                                                                                                                                                                                                                                                                                                                                                                   **Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000*                                                                                                                                                                                                                                                                                                                                                                                   *Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**                                                                                                                                                                                                                                                                                                                                                                                   Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**S                                                                                                                                                                                                                                                                                                 FULLY-PAID AND NON-ASSESSABLE SHARES OF THE SERIES E CUMULATIVE REDEEMABLE PFD OF                                                                                        DTC       Number  of Shares Insurance  Value  Holder  ID CUSIP                                                                                                               AGNC Investment Corp.  Total  Transaction 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 1234567890/1234567890 Certificate  Numbers                                                                                                                                                                                                   transferable on the books of the Corporation in person or by duly authorized Attorney                                                                                                                                                                                                                                                                   upon surrender of this certificate properly endorsed. This certificate shall not be valid until countersigned and                                                                                                                                                                                                                                                                   registered by the Transfer Agent and Registrar.                                                                                                                                                                                                                                                                    Witness                               the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers.                                                                                      12345678  123456789012345                                                                         Num/No.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         DATED                                     DD-MMM-YYYY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ESTME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      V                        NT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 IN               O             6         5         4         3         2         1                                                                                                                                                                                                                                                                                                                                                                                                                                        R                C                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            RP           AT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         O                     E          O                                                            COUNTERSIGNED AND REGISTERED:                                                                                                                                                                                                                                                                                                    Chief Executive Officer                                                                                                                                                  C        C                                                                                                                                                                                                                                                                                                                                                                                                                                                                           N                                                R                                                          COMPUTERSHARE TRUST COMPANY, N.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         G                                                   P                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                .                                                                                                                                                                                                                                                                                                                                                                                                                                                                          A                                                                        Denom.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          TRANSFER AGENT AND REGISTRAR,                                                                                                                    XXXXXXXXXX                                                                                                                              XXXXXX  XX X                                                                                                          1,000,000.00           6         5         4         3         2         1                                                                                                                                                                                                                                                                                                                                                                                                                                2008                                                                                                  123456                                                                                                                                                                                                                                                                                                                                                                              D                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ELAWAR                  E                                                                       Total 7         6         5         4         3         2         1                                                                                                                                                                                                                                                                                   Senior Vice President & Secretary                                                                                                                                                                                                                                                                   By                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           AUTHORIZED SIGNATURE

 

. AGNC INVESTMENT CORP. THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE ARTICLES OF INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGAL REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE.  THE SHARES OF THE CORPORATION'S 6.50% SERIES E FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK (THE "PREFERRED STOCK") REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON BENEFICIAL OWNERSHIP, CONSTRUCTIVE OWNERSHIP AND TRANSFER (AS EACH SUCH CAPITALIZED TERM IS DEFINED IN THE CORPORATION'S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME (THE "CERTIFICATE OF INCORPORATION")) FOR PURPOSES OF THE CORPORATION'S MAINTENANCE OF ITS STATUS AS A REAL ESTATE INVESTMENT TRUST (A "REIT") UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").  SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN THE CERTIFICATE OF INCORPORATION, (I) NO PERSON (AS DEFINED IN THE CERTIFICATE OF INCORPORATION) MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF THE CORPORATION'S COMMON STOCK (THE "COMMON STOCK") IN EXCESS OF 9.8% (IN VALUE OR NUMBER OF SHARES, WHICHEVER IS MORE RESTRICTIVE) OF THE TOTAL OUTSTANDING SHARES OF COMMON STOCK, UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (AS DEFINED IN THE CERTIFICATE OF INCORPORATION), IN WHICH CASE THE EXCEPTED HOLDER LIMIT (AS DEFINED IN THE CERTIFICATE OF INCORPORATION) SHALL BE APPLICABLE; (II) NO PERSON MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF ANY CLASS OR SERIES OF THE CORPORATION'S STOCK (THE "CAPITAL STOCK") IN EXCESS OF 9.8% (IN VALUE OR NUMBER OF SHARES, WHICHEVER IS MORE RESTRICTIVE) OF THE TOTAL OUTSTANDING SHARES OF CAPITAL STOCK, UNLESS SUCH PERSON IS AN EXCEPTED HOLDER, IN WHICH CASE THE EXCEPTED HOLDER LIMIT SHALL BE APPLICABLE; (III) NO PERSON MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK THAT WOULD RESULT IN THE CORPORATION BEING CLOSELY HELD UNDER SECTION 856(H) OF THE CODE OR OTHERWISE CAUSE THE CORPORATION TO FAIL TO QUALIFY AS A REIT; AND (IV) NO PERSON MAY TRANSFER SHARES OF CAPITAL STOCK IF SUCH TRANSFER WOULD RESULT IN THE CAPITAL STOCK OF THE CORPORATION BEING OWNED BY FEWER THAN 100 PERSONS. OWNERSHIP OF THE PREFERRED STOCK WILL BE COUNTED AS COMMON STOCK (ON AN AS-CONVERTED BASIS), IN ADDITION TO BEING COUNTED AS CAPITAL STOCK, FOR PURPOSES OF SUCH LIMITATIONS.  ANY PERSON WHO BENEFICIALLY OWNS OR CONSTRUCTIVELY OWNS, OR ATTEMPTS TO BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK WHICH CAUSES OR WILL CAUSE A PERSON TO BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK IN EXCESS OR VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE CORPORATION.  IF ANY OF THE ABOVE RESTRICTIONS ON BENEFICIAL OWNERSHIP, CONSTRUCTIVE OWNERSHIP OR TRANSFER ARE VIOLATED, THE SHARES OF PREFERRED STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO A TRUST (AS DEFINED IN THE CERTIFICATE OF INCORPORATION) FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES (AS DEFINED IN THE CERTIFICATE OF INCORPORATION).  IN ADDITION, THE BOARD OF DIRECTORS SHALL TAKE SUCH ACTION AS IT DEEMS ADVISABLE TO REFUSE TO GIVE EFFECT TO OR PREVENT SUCH TRANSFER OR OTHER EVENT, INCLUDING, WITHOUT LIMITATION, CAUSING THE CORPORATION TO REDEEM SHARES OF CAPITAL STOCK; PROVIDED, HOWEVER, THAT ANY TRANSFER OR ATTEMPTED TRANSFER OR OTHER EVENT IN VIOLATION OF THE ABOVE RESTRICTIONS ON BENEFICIAL OWNERSHIP, CONSTRUCTIVE OWNERSHIP AND TRANSFER SHALL AUTOMATICALLY RESULT IN THE ABOVE TRANSFER TO THE TRUST AND, WHERE APPLICABLE, SUCH TRANSFER (OR OTHER EVENT) SHALL BE VOID AB INITIO AS PROVIDED ABOVE IRRESPECTIVE OF ANY ACTION (OR NON-ACTION) BY THE BOARD OF DIRECTORS.  THE BOARD OF DIRECTORS MAY, PURSUANT TO SECTION 8.2.8 OF THE CERTIFICATE OF INCORPORATION, INCREASE OR DECREASE THE PERCENTAGE OF PREFERRED STOCK OR CAPITAL STOCK THAT A PERSON MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN.  A COPY OF THE CERTIFICATE OF INCORPORATION, INCLUDING THE ABOVE RESTRICTIONS ON BENEFICIAL OWNERSHIP, CONSTRUCTIVE OWNERSHIP AND TRANSFER, WILL BE FURNISHED TO EACH HOLDER OF CAPITAL STOCK ON REQUEST AND WITHOUT CHARGE.  REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE SECRETARY OF THE CORPORATION AT ITS PRINCIPAL OFFICE.          The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full        according to applicable laws or regulations:          TEN COM - as tenants in common                                         UNIF GIFT MIN ACT  -............................................Custodian................................................                                                                                                                                                                                           (Cust)                        (Minor)          TEN ENT   - as tenants by the entireties                                                                     under Uniform Gifts to Minors Act........................................................                                                                                                                                                                                                                                                        (State)          JT TEN      - as joint tenants with right of survivorship             UNIF TRF MIN ACT   -............................................Custodian (until age................................ )                                    and not as tenants in common                                                                                        (Cust)                                                                                                                                               .............................under Uniform Transfers to Minors Act...................                                                                                                                                               (Minor)                                                                        (State)          Additional abbreviations may also be used though not in the above list.                                                                                                                                             PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE For value received,____________________________ hereby sell, assign and transfer unto  ________________________________________________________________________________________________________________________________ (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE) ________________________________________________________________________________________________________________________________  ________________________________________________________________________________________________________________________________  _______________________________________________________________________________________________________________________                                                                                                             Shares of the Series E Cumulative Redeemable PFD represented by the within Certificate, and do hereby irrevocably constitute and appoint _______________________________________________________________________________________________________________________                                                                                                           Attorney to transfer the said stock on the books of the within-named Corporation with full power of substitution in the premises.  Dated: __________________________________________ 20__________________                                                                                 Signature(s) Guaranteed: Medallion Guarantee Stamp                                                                                                                                      THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks,                                                                                                                                      Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED                                                                                                                                      SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. Signature:____________________________________________________________  Signature:____________________________________________________________                   Notice: The signature to this assignment must correspond with the name                             as written upon the face of the certificate, in every particular,                             without alteration or enlargement, or any change whatever.                                                                                                                                      The IRS requires that the named transfer agent (“we”) report the cost                                                                                                                                    basis of certain shares or units acquired after January 1, 2011. If your                                                                                                                                    shares or units are covered by the legislation, and you requested to sell                                                                                                                                    or transfer the shares or units using a specific cost basis calculation                                                                                                                                    method, then we have processed as you requested.  If you did not                                                                                                                                    specify a cost basis calculation method, then we have defaulted to the                                                                                                                                    first in, first out (FIFO) method. Please consult your tax advisor if you                                                                                                                                    need additional information about cost basis.                                                                                                                                     If you do not keep in contact with the issuer or do not have any                                                                                                                                    activity in your account for the time period specified by state law,                                                                                                                                    your property may become subject to state unclaimed property                                                                                                                                    laws and transferred to the appropriate state.

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