Document:

Exhibit 10.2

 

Execution
Version

 

PLEDGE AND SECURITY AGREEMENT

 

THIS PLEDGE AND SECURITY
AGREEMENT (as it may be amended, restated, supplemented or otherwise modified from time to time, this "Security Agreement")
is entered into as of November 30, 2017 by and among each of the undersigned, and any additional entities which become
parties to this Security Agreement by executing a Security Agreement Supplement hereto in substantially the form of Annex I
hereto (collectively, each a "Grantor", and collectively, the "Grantors"), and JPMorgan Chase
Bank, N.A., in its capacity as administrative agent (the "Administrative Agent") for the lenders party to the
Credit Agreement referred to below.

 

PRELIMINARY STATEMENT

 

Fiesta Restaurant Group,
Inc. (the "Borrower"), each other Grantor as a Loan Guarantor, the other Loan Parties and the Lenders are entering
into a Credit Agreement dated as of November 30, 2017 (as it may be amended, restated, supplemented or otherwise modified
from time to time, the "Credit Agreement"). The Borrower and each other Grantor is entering into this Security
Agreement in order to induce the Lenders to enter into and extend credit to the Borrower under the Credit Agreement and to secure
the Secured Obligations that the Grantors have agreed to guarantee pursuant to Article X of the Credit Agreement.

 

ACCORDINGLY, the Grantors
and the Administrative Agent, on behalf of the Secured Parties, hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1.            
Terms Defined in Credit Agreement. All capitalized terms used herein and not otherwise defined shall have the meanings
assigned to such terms in the Credit Agreement.

 

1.2.            
Terms Defined in UCC. Terms defined in the UCC which are not otherwise defined in this Security Agreement or the
Credit Agreement are used herein as defined in the UCC.

 

1.3.            
Definitions of Certain Terms Used Herein. As used in this Security Agreement, in addition to the terms defined in
the first paragraph hereof and in the Preliminary Statement, the following terms shall have the following meanings:

 

"Accounts"
shall have the meaning set forth in Article 9 of the UCC.

 

"Account Debtor"
means any Person obligated on an Account.

 

"Applicable
IP Office" means the United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency within or, solely in the case of Section 4.7, outside the United States.

 

"Article"
means a numbered article of this Security Agreement, unless another document is specifically referenced.

 

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"CFC"
means a Subsidiary that is a "controlled foreign corporation" under Section 957 of the Code.

 

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

 

"Closing Date"
means the date of the Credit Agreement.

 

"Collateral"
shall have the meaning set forth in Article II.

 

"Collateral
Access Agreement" means any landlord waiver or other agreement, in form and substance satisfactory to the Administrative
Agent, between the Administrative Agent and any third party (including any bailee, consignee, customs broker, or other similar
Person) in possession of any Collateral or any landlord of any real property where any Collateral is located, as such landlord
waiver or other agreement may be amended, restated, supplemented or otherwise modified from time to time.

 

"Collateral
Report" means any certificate, report or other document delivered by any Grantor to the Administrative Agent or any Lender
with respect to the Collateral pursuant to any Loan Document.

 

"Commercial
Tort Claims" means the commercial tort claims as defined in Article 9 of the UCC, including each commercial tort
claim specifically described on Exhibit I.

 

"Commodity
Account Control Agreement" means an agreement, in form and substance satisfactory to the Administrative Agent, among a
Grantor, a commodity intermediary holding such Grantor's assets in a Commodity Account, including funds, and commodity contracts,
and the Administrative Agent with respect to collection and control of all commodity contracts, other property and balances held
in or credited to a Commodity Account maintained by such Grantor with such commodity intermediary.

 

"Commodity
Accounts" shall have the meaning set forth in Article 9 of the UCC.

 

"Confirmatory
Grant" shall have the meaning set forth in Section 3.10(e).

 

"Control"
shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9
of the UCC.

 

"Copyrights"
means all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating
to copyrights and all mask works, database and design rights, whether or not registered or published, all registrations and recordations
thereof and all applications in connection therewith.

 

"Default"
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

"Deposit Account
Control Agreement" means an agreement, in form and substance satisfactory to the Administrative Agent, among a Grantor,
a banking institution holding such Grantor’s funds in a Deposit Account or pursuant to other arrangement, and the Administrative
Agent with respect to collection and control of all deposits and balances held in or credited to a Deposit Account or other arrangements
maintained by such Grantor with such banking institution.

 

"Deposit Accounts"
shall have the meaning set forth in Article 9 of the UCC.

 

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"Documents"
shall have the meaning set forth in Article 9 of the UCC.

 

"Equipment"
shall have the meaning set forth in Article 9 of the UCC.

 

"Event of Default"
means an event described in Section 5.1.

 

"Excluded Assets"
means

 

(a)               
any rights or interest in any lease, contract, license or license agreement covering personal property or Real Property
of any Grantor, so long as under the terms of such lease, contract, license or license agreement, or Requirement of Law specified
in clause (b) of the definition thereof with respect thereto, for so long as such Requirement of Law specified in clause (b)
of the definition thereof is applicable, the grant of a security interest or Lien therein to the Administrative Agent is prohibited
(or would render such lease, contract, license or license agreement cancelled, invalid or unenforceable) and such prohibition has
not been or is not waived or the consent of the other party to such lease, contract, license or license agreement has not been
or is not otherwise obtained; provided that, (i) this exclusion shall in no way be construed to apply if any such prohibition
is unenforceable under the UCC or any other Requirement of Law specified in clause (b) of the definition thereof (including any
Debtor Relief Law) or so as to limit, impair or otherwise affect the unconditional continuing security interests in and Liens for
the benefit of the Secured Parties upon any rights or interests in or to monies due or to become due under any such lease, contract,
license or license agreement (including any receivables);

 

(b)               
assets owned by any Grantor on the date hereof or hereafter acquired and any proceeds thereof that are subject to a Lien
securing any purchase money Indebtedness or Capital Lease Obligations permitted to be incurred pursuant to the provisions of the
Credit Agreement to the extent and for so long as the contract or other agreement in which such Lien is granted (or the documentation
providing for such purchase money Indebtedness or Capital Lease Obligation) validly prohibits the creation of any other Lien on
such assets and proceeds (other than to the extent that such prohibition would be rendered ineffective pursuant to Section 9-406,
9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction and other than to the
extent all necessary consents to creation, attachment and perfection of the Administrative Agent's Liens thereon have been obtained);

 

(c)               
voting Equity Interests in excess of 66% of the total voting Equity Interests in any Subsidiary of the Borrower that is
also (i) a CFC, (ii) a Domestic Subsidiary whose immediate parent is a CFC or (iii) any Subsidiary where all or substantially all
of the assets of that Subsidiary (directly or through Subsidiaries) consists of Equity Interests of one or more Foreign Subsidiaries
that are CFCs; provided, that the foregoing exclusions shall, with respect to any Foreign Subsidiary (or Domestic Subsidiary
of a CFC) that is a CFC at the time of grant of such pledge or hypothecation, automatically cease to apply at any time such Foreign
Subsidiary is not a CFC;

 

(d)               
any application for registration of a trademark filed in the United States Patent and Trademark Office on an intent to use
basis to the extent that the grant of a security interest in any such trademark application would adversely affect the validity
or enforceability or result in cancellation or voiding of such trademark application, provided, however, that such
trademark applications shall no longer be considered Excluded Assets upon the filing of a Statement of Use or an Amendment to Allege
Use has been filed and accepted in the United States Patent and Trademark Office;

 

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(e)               
any fee owned real property and any leasehold rights and interests in real property (other than interests resulting from
Collateral Access Agreements);

 

provided, that
the term "Excluded Assets" shall not include any proceeds and products of Excluded Assets; it being understood that unless
the proceeds and products of Excluded Assets fall within one of the specific categories of Excluded Assets listed above, such proceeds
and products are specifically included in the definition of "Collateral"; further provided, that the term "Excluded
Assets" shall not include any assets or properties of the Borrower or any of its Subsidiaries if such assets or properties
or any subset of such (but only to the extent of such subset) no longer satisfy the criteria set forth in clauses (a) through (e)
above.

 

"Exhibit"
refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.

 

"Exhibit Effective
Date" means, with respect to any Exhibit, the effective date of such Exhibit or any restatement of such Exhibit, which
effective date shall be the date of delivery of such Exhibit or restatement (which date of delivery shall be deemed the date stated
on such Exhibit or restatement).

 

"Exhibit Restatement"
means a Security Agreement Exhibit Restatement in substantially the form of Annex II.

 

"Farm Products"
shall have the meaning set forth in Article 9 of the UCC.

 

"Financial
Asset" shall have the meaning set forth in Article 8 of the UCC.

 

"Fixtures"
shall have the meaning set forth in Article 9 of the UCC.

 

"General Intangibles"
shall have the meaning set forth in Article 9 of the UCC.

 

"Goods"
shall have the meaning set forth in Article 9 of the UCC.

 

"Industrial
Designs" means all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement
of Law in or relating to registered industrial designs and industrial design applications.

 

"Instruments"
shall have the meaning set forth in Article 9 of the UCC and shall include any and all rights to receive any payment under any
Swap Agreement.

 

"Intellectual
Property" means all rights, title and interests in or relating to intellectual property and industrial property arising
under any Requirement of Law and all IP Ancillary Rights relating thereto, including all Copyrights, Patents, Industrial Designs,
Software, Trademarks, Internet Domain Names, Trade Secrets and IP Licenses.

 

"Internet Domain
Name" means all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of
Law in or relating to internet domain names.

 

"Inventory"
shall have the meaning set forth in Article 9 of the UCC.

 

"Investment
Property" shall have the meaning set forth in Article 9 of the UCC.

 

"IP Ancillary
Rights" means, with respect to any Intellectual Property, as applicable, all foreign counterparts to, and all divisionals,
reversions, continuations, continuations-in-part, reissues, reexaminations, renewals and extensions of, such Intellectual Property
and all income, royalties, proceeds and Liabilities at any time due or payable or asserted under or with respect to any of the
foregoing or otherwise with respect to such Intellectual Property throughout the world, including all rights to sue or recover
at law or in equity for any past, present or future infringement, misappropriation, dilution, violation or other impairment thereof,
and, in each case, all rights to obtain any other IP Ancillary Right throughout the world.

 

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"IP License"
means all contractual obligations (and all related IP Ancillary Rights), whether written or oral, granting any right, title
and interest in or relating to any Intellectual Property.

 

"Lenders"
means the lenders party to the Credit Agreement and their successors and assigns.

 

"Letter-of-Credit
Rights" shall have the meaning set forth in Article 9 of the UCC.

 

"Liabilities"
mean all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions,
costs, fees, Taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in connection
with the preparation for and/or response to any subpoena or request for document production relating thereto), in each case of
any kind or nature (including interest accrued thereon or as a result thereto and fees, charges and disbursements of financial,
legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual,
punitive, treble or otherwise.

 

"Licenses"
means, with respect to any Person, all of such Person’s right, title, and interest in and to (a) any and all licensing
agreements or similar arrangements in and to its Patents, Copyrights, or Trademarks, (b) all income, royalties, damages, claims,
and payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments
for past and future breaches thereof, and (c) all rights to sue for past, present, and future breaches thereof.

 

"Material Intellectual
Property" means Intellectual Property that is owned by or licensed to a Grantor and material to the conduct of such Grantor’s
business.

 

"Patents"
mean all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating
to letters patent and applications therefor.

 

"Pledged Collateral"
means all Instruments, Securities and other Investment Property of the Grantors, whether or not physically delivered to the Administrative
Agent pursuant to this Security Agreement.

 

"Real Property"
means all real property that was, is now or may hereafter be owned, occupied or otherwise controlled by any Grantor pursuant to
any contract of sale, lease or other conveyance of any legal interest in any real property to any Grantor.

 

"Receivables"
means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other rights or claims to receive money
which are General Intangibles or which are otherwise included as Collateral.

 

"Section"
means a numbered section of this Security Agreement, unless another document is specifically referenced.

 

"Secured Parties"
shall have the meaning set forth in the Credit Agreement.

 

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"Securities
Account Control Agreement" means an agreement, in form and substance satisfactory to the Administrative Agent, among a
Grantor, a securities intermediary, and the Administrative Agent with respect to collection and control of Securities, Investment
Property, and other property held in or credited to a Securities Account maintained by such Grantor with such securities institution.

 

"Securities
Accounts" shall have the meaning set forth in Article 8 of the UCC.

 

"Security"
shall have the meaning set forth in Article 8 of the UCC.

 

"Software"
means (a) all computer programs, including source code and object code versions, (b) all data, databases and compilations
of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to
any of the foregoing.

 

"Security Agreement
Supplement" shall mean any Security Agreement Supplement to this Security Agreement in substantially the form of Annex
I hereto executed by an entity that becomes a Grantor under this Security Agreement after the date hereof.

 

"Stock Rights"
means all dividends, instruments or other distributions and any other right or property which the Grantors shall receive or shall
become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest
constituting Collateral, any right to receive an Equity Interest and any right to receive earnings, in which the Grantors now have
or hereafter acquire any right, issued by an issuer of such Equity Interest.

 

"Supporting
Obligations" shall have the meaning set forth in Article 9 of the UCC.

 

"Trade Secrets"
mean all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating
to proprietary, confidential and/or non-public information, however documented, including but not limited to confidential ideas,
know-how, concepts, methods, processes, formulae, reports, data, customer lists, mailing lists, business plans and all other trade
secrets.

 

"Trademarks"
mean all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating
to trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks,
logos and other source or business identifiers and, in each case, all goodwill associated therewith, all registrations and recordations
thereof and all applications in connection therewith.

 

"UCC"
means the Uniform Commercial Code, as in effect from time to time, of the State of New York or of any other state the laws of which
are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect
to, Administrative Agent’s or any other Secured Party’s Lien on any Collateral.

 

The foregoing definitions
shall be equally applicable to both the singular and plural forms of the defined terms.

 

ARTICLE
II

GRANT OF SECURITY INTEREST

 

Each Grantor hereby
pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Secured Parties, a security
interest in all of its right, title and interest in, to and under all personal property and other assets (including all of its
interests as a lessee), whether now owned by or owing to, or hereafter acquired by or arising in favor of such Grantor (including
under any trade name or derivations thereof), and whether owned or consigned by or to, or leased from or to, such Grantor, and
regardless of where located (all of which will be collectively referred to as the "Collateral"), including:

 

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		(i)	all Accounts;

 

		(ii)	all Chattel Paper;

 

		(iii)	all Commercial Tort Claims;

 

		(iv)	all Commodity Accounts;

 

		(v)	all Copyrights, Patents, Trademarks and Licenses;

 

		(vi)	all Deposit Accounts;

 

		(vii)	all Documents;

 

		(viii)	all Equipment;

 

		(ix)	all Farm Products;

 

		(x)	all Financial Assets;

 

		(xi)	all Fixtures;

 

		(xii)	all General Intangibles;

 

		(xiii)	all Goods;

 

		(xiv)	all Instruments;

 

		(xv)	all Inventory;

 

		(xvi)	all Investment Property;

 

		(xvii)	all cash or cash equivalents;

 

		(xviii)	all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

 

		(xix)	all Securities and Securities Accounts;

 

		(xx)	all insurance policies; and

 

		(xxi)	all accessions to, substitutions for and replacements, proceeds (including Stock Rights), insurance
proceeds and products of the foregoing, together with all books and records, customer lists, credit files, computer files, programs,
printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating
to any of the foregoing

 

to secure the prompt and complete payment
and performance of the Secured Obligations. Notwithstanding anything herein to the contrary, in no event shall the Collateral include,
and no Grantor shall be deemed to have granted a security interest in the Excluded Assets.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

Each Grantor represents
and warrants, and each Grantor that becomes a party to this Security Agreement pursuant to the execution of a Security Agreement
Supplement represents and warrants (after giving effect to supplements, if any, to each of the Exhibits hereto with respect to
such Grantor as attached to such Security Agreement Supplement), to the Administrative Agent and the Secured Parties that:

 

    SECURITY AGREEMENT – Page 7

     

    

 

3.1.            
Title, Authorization, Validity, Enforceability, Perfection and Priority. Such Grantor has good and valid rights in
or the power to transfer the Collateral and title to the Collateral with respect to which it has purported to grant a security
interest hereunder, free and clear of all Liens except for Liens permitted under Section 4.1(e), and has full power and authority
to grant to the Administrative Agent the security interest in the Collateral pursuant hereto. The execution and delivery by such
Grantor of this Security Agreement has been duly authorized by proper corporate, limited liability company, partnership or other
applicable proceedings of such Grantor, and this Security Agreement constitutes a legal valid and binding obligation of such Grantor
and creates a security interest which is enforceable against such Grantor in all Collateral it now owns or hereafter acquires,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. When (a) certificates
evidencing all authorized, issued and outstanding shares of capital stock and other Equity Interests that are a Security and are
included in Collateral are delivered to the Administrative Agent and (b) financing statements have been filed, registered
or recorded (as applicable) in the appropriate offices against such Grantor in the locations listed on Exhibit H, then the
Administrative Agent will have a fully perfected first priority security interest in that Collateral of such Grantor in which a
security interest may be perfected by possession and filing, subject only to Liens permitted under Section 4.1(e).

 

3.2.            
Type and Jurisdiction of Organization, Organizational and Identification Numbers. The type of entity of such Grantor,
its state of organization, the organizational number issued to it by its state of organization and its federal employer identification
number are set forth on Exhibit A.

 

3.3.            
Principal Location. As of each Exhibit Effective Date, such Grantor’s mailing address, which shall be its address
for notices and other communications provided for herein and the location of its place of business (if it has only one) or its
chief executive office (if it has more than one place of business), are disclosed in Exhibit A; as of each Exhibit Effective
Date, such Grantor has no other places of business or maintains any operations or business at any other location except those set
forth in Exhibit A. As of each Exhibit Effective Date, all records related to such Grantor's business and operations,
including all Collateral, are located at the address described in Exhibit A.

 

3.4.            
Collateral Locations. As of each Exhibit Effective Date, all of such Grantor’s locations where Collateral is
located are listed on Exhibit A. As of each Exhibit Effective Date, all of said locations are owned by such Grantor
except for locations (i) which are leased by the Grantor as lessee and designated in Part VI(b) of Exhibit A
and (ii) at which Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment as designated
in Part VI(c) of Exhibit A.

 

3.5.            
Deposit Accounts; Securities Accounts; and Commodity Accounts. As of each Exhibit Effective Date, all of such Grantor’s
Deposit Accounts, Securities Accounts and Commodity Accounts are listed on Exhibit B. When the Administrative Agent obtains
control of such Deposit Accounts, Securities Accounts and Commodities Accounts and the financial institution, securities intermediary
or commodity intermediary, as applicable, at which each such Deposit Account, Securities Account or Commodity Account, as applicable,
is maintained acknowledges such control, the Administrative Agent will have a fully perfected first priority security interest
in such Deposit Account, Securities Account or Commodity Account, as applicable, and all property credited to such Deposit Account,
Securities Account or Commodity Account, as applicable. For the avoidance of doubt, Deposit Account Control Agreements, Securities
Account Control Agreements and Commodity Account Control Agreements shall not be required with respect to any of the Loan Parties’
Deposit Accounts, Securities Accounts and Commodity Accounts.

 

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3.6.            
Exact Names. Such Grantor’s name in which it has executed this Security Agreement is the exact name as it appears
in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization.
As of each Exhibit Effective Date, such Grantor has not, during the past five years, been organized as a type of entity other than
as set forth on Exhibit A, been organized under the laws of any jurisdiction other than as set forth on Exhibit A,
been known by or used any other corporate or fictitious name, or been a party to any (a) merger or consolidation, (b) acquisition,
or acquired any property except in the ordinary course of business or (c) asset securitization or similar transaction.

 

3.7.            
Letter-of-Credit Rights and Chattel Paper. As of each Exhibit Effective Date, Exhibit C lists all Letter-of-Credit
Rights and Chattel Paper of such Grantor. All action by such Grantor necessary or desirable to protect and to perfect the Administrative
Agent’s Lien on each item listed on Exhibit C (including the delivery of all originals and the placement of a
legend on all Chattel Paper as required hereunder) has been duly taken. The Administrative Agent will have a fully perfected first
priority security interest in the Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e).

 

3.8.            
Accounts and Chattel Paper.

 

(a)               
The names of the obligors, amounts owing, due dates and other information with respect to its Accounts and Chattel Paper
are and will be correctly stated in all records of such Grantor relating thereto and in all invoices and Collateral Reports with
respect thereto furnished to the Administrative Agent by such Grantor from time to time. As of the time when each Account or each
item of Chattel Paper arises, such Grantor shall be deemed to have represented and warranted that such Account or Chattel Paper,
as the case may be, and all records relating thereto, are genuine and in all respects what they purport to be.

 

(b)               
With respect to its Accounts, (i)  all Accounts represent bona fide sales of Inventory or rendering of services
to Account Debtors in the ordinary course of such Grantor’s business and are not evidenced by a judgment, Instrument or Chattel
Paper; (ii) there are no setoffs, claims or disputes existing or asserted with respect thereto and such Grantor has not made
any agreement with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less
than the full amount thereof, any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount
or allowance allowed by such Grantor in the ordinary course of its business for prompt payment and disclosed to the Administrative
Agent; (iii) to such Grantor’s knowledge, there are no facts, events or occurrences which in any way impair the validity
or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s
books and records and any invoices, statements with respect thereto; (iv) such Grantor has not received any notice of proceedings
or actions which are threatened or pending against any Account Debtor which might result in any material adverse change in such
Account Debtor’s financial condition; and (v) such Grantor has no knowledge that any Account Debtor has become insolvent
or is generally unable to pay its debts as they become due.

 

(c)               
In addition, with respect to all of its Accounts, (i) the amounts shown on all invoices and statements with respect
thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent, and (ii) to
such Grantor’s knowledge, all Account Debtors have the capacity to contract.

 

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3.9.            
Inventory. With respect to any of its Inventory (other than food and other Inventory that is perishable in the ordinary
course of business) (a) as of each Exhibit Effective Date, such Inventory (other than Inventory in transit) is located at
one of such Grantor’s locations set forth on Exhibit A, (b) no Inventory (other than Inventory in transit)
is now, or shall at any time or times hereafter be stored at any other location except as permitted by Section 4.1(g), (c) such
Grantor has good, indefeasible and merchantable title to such Inventory and such Inventory is not subject to any Lien or security
interest or document whatsoever except for the security interest granted to the Administrative Agent hereunder, for the benefit
of the Administrative Agent and Secured Parties, and Permitted Liens, (d) such Inventory is of good and merchantable quality,
free from any defects, (e) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name or copyright
agreements with any third parties which would require any consent of any third party upon sale or disposition of that Inventory
or the payment of any monies to any third party upon such sale or other disposition, (f) such Inventory has been produced
in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder,
and (g) the completion of manufacture, sale or other disposition of such Inventory by the Administrative Agent following an
Event of Default shall not require the consent of any Person and shall not constitute a breach or default under any contract or
agreement to which such Grantor is a party or to which such property is subject.

 

3.10.         
Intellectual Property.

 

(a)               
As of each Exhibit Effective Date, Exhibit D contains a complete and accurate listing of the following Intellectual
Property such Grantor owns, licenses or otherwise has the right to use: (i) Intellectual Property that is registered or subject
to applications for registration, (ii) Internet Domain Names and (iii) Material Intellectual Property and material Software,
separately identifying that owned and licensed to such Grantor and including for each of the foregoing items (1) the owner,
(2) the title, (3) the jurisdiction in which such item has been registered or otherwise arises or in which an application
for registration has been filed, (4) as applicable, the registration or application number and registration or application
date and (5) any IP Licenses or other rights (including franchises) granted by such Grantor with respect thereto. Such Grantor
owns directly or is entitled to use, by license or otherwise, all Material Intellectual Property necessary for the conduct of such
Grantor’s business as currently conducted. All of the U.S. registrations, applications for registration or applications for
issuance of the Material Intellectual Property are in good standing and are recorded or in the process of being recorded in the
name of such Grantor.

 

(b)               
On the Effective Date, all Material Intellectual Property owned by such Grantor is valid, in full force and effect, subsisting,
unexpired and enforceable, and no Material Intellectual Property has been abandoned. None of the following shall limit or impair
the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual Property: (i) the
consummation of the transactions contemplated by any Loan Documents or (ii) any holding, decision, judgment or order rendered
by any Governmental Authority. There are no pending (or, to the knowledge of such Grantor, threatened) actions, investigations,
suits, proceedings, audits, claims, demands, orders or disputes challenging the ownership, use, validity, enforceability of, or
such Grantor’s rights in, any Material Intellectual Property of such Grantor. To such Grantor’s knowledge, no Person
has been or is infringing, misappropriating, diluting, violating or otherwise impairing any Material Intellectual Property of such
Grantor.

 

(c)               
Such Grantor has taken or caused to be taken steps so that none of its Material Intellectual Property, the value of which
to such Grantor is contingent upon maintenance of the confidentiality thereof, has been disclosed by such Grantor to any Person
other than employees, contractors, customers, representatives and agents of such Grantor who are parties to customary confidentiality
and nondisclosure agreements with such Grantor. Each employee and contractor of such Grantor involved in development or creation
of any Material Intellectual Property has assigned any and all inventions and ideas of such Person in and to such Material Intellectual
Property to such Grantor.

 

    SECURITY AGREEMENT – Page 10

     

    

 

(d)               
No settlement or consents, covenants not to sue, nonassertion assurances, or releases have been entered into by such Grantor
or exist to which such Grantor is bound that adversely affect its rights to own or use any Material Intellectual Property except
as could not be reasonably expected to result in a Material Adverse Effect, in each case individually or in the aggregate.

 

(e)               
This Security Agreement is effective to create a valid and continuing Lien on such Copyrights, IP Licenses, Patents
and Trademarks and, upon filing, registration or recordation with the Applicable IP Office of the Confirmatory Grant of Security
Interest in Copyrights, the Confirmatory Grant of Security Interest in Patents and the Confirmatory Grant of Security Interest
in Trademarks (each, a "Confirmatory Grant"), and the filing of appropriate financing statements in the jurisdictions
listed in Exhibit H hereto, all action necessary or desirable to protect and perfect the security interest in, to and
on such Grantor’s Patents, Trademarks, Copyrights, or IP Licenses have been taken and such perfected security interest
is enforceable as such as against any and all creditors of and purchasers from such Grantor. Such Grantor has no interest in any
Copyright that is necessary in connection with the operation of such Grantor’s business, except for those Copyrights identified
in Exhibit D attached hereto which have been registered with the United States Copyright Office.

 

3.11.         
Filing Requirements. As of each Exhibit Effective Date, none of its Equipment is covered by any certificate of title,
except for the vehicles described in Part I of Exhibit E. As of each Exhibit Effective Date, none of the Collateral
owned by it is of a type for which security interests or liens may be perfected by filing under any federal statute except for
(a) the vehicles described in Part II of Exhibit E and (b) Patents, Trademarks and Copyrights held by
such Grantor and described in Exhibit D.

 

3.12.         
No Financing Statements, Security Agreements. No financing statement or security agreement describing all or any
portion of the Collateral which has not lapsed or been terminated (by a filing authorized by the secured party in respect thereof)
naming such Grantor as debtor has been filed or is of record in any jurisdiction except for financing statements or security agreements
(a) naming the Administrative Agent on behalf of the Secured Parties as the secured party and (b) in respect to other
Liens permitted under Section 6.02 of the Credit Agreement.

 

3.13.         
Pledged Collateral.

 

(a)               
As of each Exhibit Effective Date, Exhibit G sets forth a complete and accurate list of all of the Pledged Collateral
owned by such Grantor. As of each Exhibit Effective Date, such Grantor is the direct, sole beneficial owner and sole holder of
record of the Pledged Collateral listed on Exhibit G as being owned by it, free and clear of any Liens, except for
the security interest granted to the Administrative Agent for the benefit of the Secured Parties hereunder and Permitted Liens.
Such Grantor further represents and warrants that (i) all Pledged Collateral owned by it constituting an Equity Interest has
been (to the extent such concepts are relevant with respect to such Pledged Collateral) duly authorized, validly issued, are fully
paid and non-assessable, (ii) with respect to any certificates delivered to the Administrative Agent representing an Equity
Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of actions by the issuer
or otherwise, or, if such certificates are not Securities, such Grantor has so informed the Administrative Agent so that the Administrative
Agent may take steps to perfect its security interest therein as a General Intangible, (iii) all such Pledged Collateral held
by a securities intermediary is covered by a Securities Account Control Agreement among such Grantor, the securities intermediary
and the Administrative Agent pursuant to which the Administrative Agent has Control and (iv) all Pledged Collateral which
represents Indebtedness owed to such Grantor has been duly authorized, authenticated or issued and delivered by the issuer of such
Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder; provided,
however, that it is hereby acknowledged and agreed that no Securities Account Control Agreement will be required to be executed
with respect to any such Securities Account.

 

    SECURITY AGREEMENT – Page 11

     

    

 

(b)               
In addition, (i) none of the Pledged Collateral owned by it has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii) no
options, warrants, calls or commitments of any character whatsoever (A) exist relating to such Pledged Collateral or (B) obligate
the issuer of any Equity Interest included in the Pledged Collateral to issue additional Equity Interests, and (iii) no consent,
approval, authorization, or other action by, and no giving of notice, filing with, any governmental authority or any other Person
is required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security Agreement or for the execution,
delivery and performance of this Security Agreement by such Grantor, or for the exercise by the Administrative Agent of the voting
or other rights provided for in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant to this
Security Agreement, except as may be required in connection with such disposition by laws affecting the offering and sale of securities
generally.

 

(c)               
As of each Exhibit Effective Date, except as set forth in Exhibit G, such Grantor owns 100% of the issued and
outstanding Equity Interests which constitute Pledged Collateral owned by it and none of the Pledged Collateral which represents
Indebtedness owed to such Grantor is subordinated in right of payment to other Indebtedness or subject to the terms of an indenture.

 

ARTICLE
IV

COVENANTS

 

From the date of this
Security Agreement and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each Grantor party
hereto as of the date hereof agrees, and from and after the effective date of any Security Agreement Supplement applicable to any
Grantor (and after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such subsequent Grantor
as attached to such Security Agreement Supplement) and thereafter until this Security Agreement is terminated pursuant to the terms
hereof, each such additional Grantor agrees that:

 

4.1.            
General.

 

(a)               
Collateral Records. Such Grantor will maintain complete and accurate books and records with respect to the Collateral
owned by it, and furnish to the Administrative Agent with sufficient copies for each of the Lenders, such reports relating to such
Collateral as the Administrative Agent shall from time to time request.

 

(b)               
Authorization to File Financing Statements; Ratification. Such Grantor hereby authorizes the Administrative Agent
to file, and if requested will deliver to the Administrative Agent, all financing statements and other documents and take such
other actions as may from time to time be requested by the Administrative Agent in order to maintain a first perfected security
interest in and, if applicable, Control of, the Collateral owned by such Grantor, provided, however, that no Deposit Account
Control Agreement, Securities Account Control Agreement or Commodity Account Control Agreement will be required to be executed
by such Grantor. Any financing statement filed by the Administrative Agent may be filed in any filing office in any UCC jurisdiction
and may (i) indicate such Grantor’s Collateral (1) as all assets of such Grantor or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction,
or (2) by any other description which reasonably approximates the description contained in this Security Agreement, and (ii) contain
any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any
financing statement or amendment, including (A) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor, and (B) in the case of a financing statement filed as a fixture
filing or indicating such Grantor’s Collateral as as-extracted collateral or timber to be cut, a sufficient description of
real property to which the Collateral relates. Such Grantor also agrees to furnish any such information described in the foregoing
sentence to the Administrative Agent promptly upon request. Such Grantor also ratifies its authorization for the Administrative
Agent to have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof.

 

    SECURITY AGREEMENT – Page 12

     

    

 

(c)               
Further Assurances. Such Grantor will, if so requested by the Administrative Agent, furnish to the Administrative
Agent, as often as the Administrative Agent requests, statements and schedules further identifying and describing the Collateral
owned by it and such other reports and information in connection with its Collateral as the Administrative Agent may reasonably
request, all in such detail as the Administrative Agent may reasonably specify. Such Grantor also agrees to take any and all actions
necessary to defend title to the Collateral against all Persons and to defend the security interest of the Administrative Agent
in its Collateral and the priority thereof against any Lien not expressly permitted hereunder.

 

(d)               
Disposition of Collateral. Such Grantor will not sell, lease or otherwise dispose of the Collateral except for dispositions
specifically permitted pursuant to Section 6.04 of the Credit Agreement.

 

(e)               
Liens. Such Grantor will not create, incur, or suffer to exist any Lien on the Collateral except (i) the security
interest created by this Security Agreement, and (ii) other Liens permitted under Section 6.02 of the Credit Agreement.

 

(f)                
Other Financing Statements. Such Grantor will not authorize the filing of any financing statement naming it as debtor
covering all or any portion of the Collateral owned by it, except for financing statements (i) naming the Administrative Agent
or any of its Affiliates on behalf of the Secured Parties as the secured party, and (ii) in respect to other Liens permitted
under Section 6.02 of the Credit Agreement. Such Grantor acknowledges that it is not authorized to file any financing statement
or amendment or termination statement with respect to any financing statement without the prior written consent of the Administrative
Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

 

(g)               
Locations. Such Grantor will not (i) maintain any Collateral owned by it having a fair market value in excess
of $3,000,000 at any location other than those locations listed on Exhibit A or disclosed to Administrative Agent pursuant
to clause (ii) of this Section, (ii) otherwise change, or add to, other than in the ordinary course of business and in
accordance with past practices, such locations without giving the Administrative Agent not less than 30 days' prior written notice
(or such shorter period as agreed to by the Administrative Agent), or (iii) change its principal place of business or chief
executive office from the location identified on Exhibit A, other than as permitted by the Credit Agreement.

 

    SECURITY AGREEMENT – Page 13

     

    

 

(h)               
Compliance with Terms. Such Grantor will perform and comply with all obligations in respect of the Collateral owned
by it and all agreements to which it is a party or by which it is bound relating to such Collateral.

 

4.2.            
Receivables.

 

(a)               
Certain Agreements on Receivables. Such Grantor will not make or agree to make any discount, credit, rebate or other
reduction in the original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount
thereof, except that, prior to the occurrence and continuation of an Event of Default, such Grantor may reduce the amount of Accounts
arising from the sale of Inventory in accordance with its present policies and in the ordinary course of business.

 

(b)               
Collection of Receivables. Except as otherwise provided in this Security Agreement, such Grantor will collect and
enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by
it.

 

(c)               
Delivery of Invoices. Such Grantor will deliver to the Administrative Agent immediately upon its request after the
occurrence and during the continuation of an Event of Default duplicate invoices with respect to each Account owned by it bearing
such language of assignment as the Administrative Agent shall specify.

 

(d)               
Disclosure of Counterclaims on Receivables. If (i) any material discount, credit or agreement to make a rebate
or to otherwise reduce the amount owing on any Receivable owned by such Grantor exists or (ii) if, to the knowledge of such
Grantor, any material dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to
any such Receivable, such Grantor will promptly disclose such fact to the Administrative Agent in writing.

 

(e)               
Electronic Chattel Paper. Such Grantor shall take all steps necessary to grant the Administrative Agent Control of
all electronic chattel paper in accordance with the UCC and all "transferable records" as defined in each of the Uniform
Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. The requirement in the preceding
sentence shall not apply to the extent that such amount, together with all amounts payable evidenced by Electronic Chattel Paper
or any transferable record in which the Administrative Agent has not been vested control within the meaning of the statutes described
in the immediately preceding sentence, does not exceed $3,000,000 in the aggregate for all Grantors.

 

4.3.            
Inventory and Equipment.

 

(a)               
Maintenance of Goods. Such Grantor will do all things necessary to maintain, preserve, protect and keep its Inventory
and the Equipment in good repair and working and saleable condition, except for damaged or defective goods arising in the ordinary
course of such Grantor’s business and except for ordinary wear and tear in respect of the Equipment; provided, however,
that this Section 4.3(a) shall not be applicable to food or other Inventory that perishable in the ordinary course of business.

 

(b)               
Perpetual Inventory System. Such Grantor will maintain a perpetual inventory reporting system at all times.

 

(c)               
Equipment. Such Grantor shall not permit any Equipment to become a fixture with respect to real property or to become
an accession with respect to other personal property with respect to which real or personal property the Administrative Agent does
not have a Lien. Such Grantor will not, without the Administrative Agent’s prior written consent, alter or remove any identifying
symbol or number on any of such Grantor’s Equipment constituting Collateral.

 

    SECURITY AGREEMENT – Page 14

     

    

 

(d)               
Titled Vehicles. Such Grantor will give the Administrative Agent notice of its acquisition of any vehicle covered
by a certificate of title and deliver to the Administrative Agent, upon request, the original of any vehicle title certificate
and provide and/or file all other documents or instruments necessary to have the Lien of the Administrative Agent noted on any
such certificate or with the appropriate state office. Such requirement shall not apply to the extent the aggregate amount of (a) all
motor vehicles (and any such other Equipment covered by certificates of title or ownership) as to which any Grantor has not delivered
a certificate of title or ownership to the Administrative Agent, (b) all Commercial Tort Claims in which the Administrative
Agent does not have a perfected security interest and (c) all Letters of Credit (except to the extent constituting supporting
obligations) in which the Administrative Agent does not have a perfected security, does not exceed $5,000,000 in the aggregate
for all Grantors.

 

4.4.            
Delivery of Instruments, Securities, Chattel Paper and Documents. Such Grantor will (a) deliver to the Administrative
Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper, Securities and Instruments constituting
or evidencing Collateral owned by it (if any then exist) having a face value either individually or in the aggregate in excess
of $3,000,000 (other than Equity Interests of a Subsidiary) for all such Grantors, which shall not bear any legend not acceptable
to the Administrative Agent, together with powers, undated and executed in blank, (b) hold in trust for the Administrative
Agent upon receipt and to the extent that any such Chattel Paper, Securities and Instruments have a face value either individually
or in the aggregate in excess of $3,000,000 (other than Equity Interests of a Subsidiary) for all such Grantors immediately thereafter
deliver to the Administrative Agent any Chattel Paper, Securities and Instruments constituting or evidencing Collateral, and cause
each issuer of Pledged Collateral to execute and deliver a confirmation of pledge in form and substance satisfactory to the Administrative
Agent, (c) upon the Administrative Agent’s request, deliver to the Administrative Agent (and thereafter hold in trust
for the Administrative Agent upon receipt and immediately deliver to the Administrative Agent) any Document evidencing or constituting
Collateral.

 

4.5.            
Uncertificated Pledged Collateral. Such Grantor will permit the Administrative Agent from time to time to cause the
appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or
other types of Pledged Collateral owned by it not represented by certificates to mark their books and records with the numbers
and face amounts of all such uncertificated securities or other types of Pledged Collateral not represented by certificates and
all rollovers and replacements therefor to reflect the Lien of the Administrative Agent granted pursuant to this Security Agreement.
With respect to any Pledged Collateral owned by it, such Grantor will take any actions necessary to cause (a) the issuers
of uncertificated securities which are Pledged Collateral and (b) any securities intermediary which is the holder of any such
Pledged Collateral, to cause the Administrative Agent to have and retain Control over such Pledged Collateral. Without limiting
the foregoing, such Grantor will, with respect to any such Pledged Collateral held with a securities intermediary, cause such securities
intermediary to enter into a Securities Account Control Agreement with the Administrative Agent, in form and substance satisfactory
to the Administrative Agent, giving the Administrative Agent Control; provided, however, that it is hereby acknowledged
and agreed that no Securities Account Control Agreement will be required to be executed with respect to any such Securities Account.

 

    SECURITY AGREEMENT – Page 15

     

    

 

4.6.          Pledged Collateral.

 

(a)            Changes in Capital Structure of Issuers. Except as permitted under Section 6.04 of the Credit Agreement, such Grantor
will not (i) permit or suffer any issuer of an Equity Interest constituting Pledged Collateral owned by it to dissolve, merge,
liquidate, retire any of its Equity Interests or other Instruments or Securities evidencing ownership, reduce its capital, sell
or encumber all or substantially all of its assets (except for Permitted Liens and sales of assets permitted pursuant to Section 4.1(d))
or merge or consolidate with any other entity, or (ii) vote any such Pledged Collateral in favor of any of the foregoing.

 

(b)            Issuance of Additional Securities. Such Grantor will not permit or suffer the issuer of an Equity Interest constituting
Pledged Collateral owned by it to issue additional Equity Interests, any right to receive the same or any right to receive earnings,
except to such Grantor.

 

(c)            Registration of Pledged Collateral. Upon the occurrence and during the continuance of an Event of Default, such Grantor
will permit any registerable Pledged Collateral to be registered in the name of the Administrative Agent or its nominee at any
time at the option of the Required Lenders.

 

(d)            Exercise of Rights in Pledged Collateral.

 

(i)                
Without in any way limiting the foregoing and subject to clause (ii) below, such Grantor shall have the right to exercise
all voting rights or other rights relating to the Pledged Collateral owned by it for all purposes not inconsistent with this Security
Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right shall be
exercised or action taken which would have the effect of impairing the rights of the Administrative Agent in respect of such Pledged
Collateral.

 

(ii)              
Such Grantor will permit the Administrative Agent or its nominee at any time after the occurrence and during the continuance
of an Event of Default, without notice, to exercise all voting rights or other rights relating to the Pledged Collateral owned
by it, including, without limitation, exchange, subscription or any other rights, privileges, or options pertaining to any Equity
Interest or Investment Property constituting Pledged Collateral as if it were the absolute owner thereof.

 

(iii)            
Such Grantor shall be entitled to collect and receive for its own use all cash dividends and interest paid in respect of
the Pledged Collateral owned by it to the extent not in violation of the Credit Agreement other than any of the following
distributions and payments (collectively referred to as the "Excluded Payments"): (A) dividends and interest
paid or payable other than in cash in respect of such Pledged Collateral, and instruments and other property received, receivable
or otherwise distributed in respect of, or in exchange for, any Pledged Collateral; (B) dividends and other distributions
paid or payable in cash in respect of such Pledged Collateral in connection with a partial or total liquidation or dissolution
or in connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash paid, payable
or otherwise distributed, in respect of principal of, or in redemption of, or in exchange for, such Pledged Collateral; provided
however, that until actually paid, all rights to such distributions shall remain subject to the Lien created by this
Security Agreement; and

 

    SECURITY AGREEMENT – Page 16

     

    

 

(iv)             
All Excluded Payments and all other distributions in respect of any of the Pledged Collateral owned by such Grantor, whenever
paid or made, shall be delivered to the Administrative Agent to hold as Pledged Collateral and shall, if received by such Grantor,
be received in trust for the benefit of the Administrative Agent, be segregated from the other property or funds of such Grantor,
and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary
endorsement).

 

(e)               
Interests in Limited Liability Companies and Limited Partnerships. Each Grantor agrees that no ownership interests
in a limited liability company or a limited partnership which are included within the Collateral owned by such Grantor shall at
any time constitute a Security under Article 8 of the UCC of the applicable jurisdiction.

 

4.7.            
Intellectual Property.

 

(a)               
After any change to Exhibit D (or the information required to be disclosed thereon), the applicable Grantor
shall provide the Administrative Agent notification thereof in the next compliance certificate required to be delivered under the
Credit Agreement and the respective Confirmatory Grant as described in this Section 4.7 and any other documents that
Administrative Agent reasonably requests with respect thereto.

 

(b)               
Such Grantor shall (and shall cause all its licensees to) (i) (1) continue to use each Trademark included in the
Material Intellectual Property owned by it in order to maintain such Trademark in full force and effect with respect to each class
of goods for which such Trademark is currently used, free from any claim of abandonment for non-use, (2) maintain at least
the same standards of quality of products and services offered under such Trademark as are currently maintained, (3) use such
Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of
Law and (4) not adopt or use any other Trademark that is confusingly similar or a colorable imitation of such Trademark unless
Administrative Agent shall obtain a perfected security interest in such other Trademark pursuant to this Security Agreement and
(ii) not do any act or omit to do any act whereby (w) such Trademark (or any goodwill associated therewith) may become
destroyed, invalidated, impaired or harmed in any way, (x) any Patent included in the Material Intellectual Property may become
forfeited, misused, unenforceable, abandoned or dedicated to the public, (y) any portion of the Copyrights included in the
Material Intellectual Property may become invalidated, otherwise impaired or fall into the public domain or (z) any Trade Secret
that is Material Intellectual Property may become publicly available or otherwise unprotectable.

 

(c)               
Such Grantor shall notify the Administrative Agent immediately if it knows, or has reason to know, that any application
or registration relating to any Patent, Trademark or Copyright that constitutes or would constitute Material Intellectual Property,
or other Material Intellectual Property owned by it may become forfeited, misused, unenforceable, abandoned or dedicated to the
public, or of any adverse determination or development regarding the validity or enforceability or Such Grantor’s ownership
of, interest in, right to use, register, own or maintain any Patent, Trademark or Copyright that is Material Intellectual Property
or other Material Intellectual Property (including the institution of, or any such determination or development in, any proceeding
relating to the foregoing in any Applicable IP Office). Such Grantor shall take all actions that are necessary or reasonably
requested by the Administrative Agent to maintain and pursue each application (and to obtain the relevant registration or recordation)
and to maintain each registration and recordation included in the Material Intellectual Property owned by it.

 

    SECURITY AGREEMENT – Page 17

     

    

 

(d)               
Such Grantor shall not knowingly do any act or omit to do any act to infringe, misappropriate, dilute, violate or otherwise
impair the Intellectual Property of any other Person. In the event that any Material Intellectual Property of Such Grantor is or
has been infringed, misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor shall take all actions
as it deems appropriate to protect such Material Intellectual Property, which may include, if necessary, promptly suing for infringement,
misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall
take such other actions as the Administrative Agent shall reasonably deem appropriate under the circumstances to protect such Material
Intellectual Property.

 

(e)               
Such Grantor shall execute and deliver to the Administrative Agent in form and substance reasonably acceptable to the Administrative
Agent and suitable for (i) filing in the Applicable IP Office the respective Confirmatory Grant in form and substance
acceptable to the Administrative Agent for all Copyrights, Trademarks and Patents of such Grantor.

 

(f)                
Such Grantor shall take all actions commercially reasonably necessary or reasonably requested by the Administrative Agent
to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of all Material Intellectual
Property owned by it (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits
of noncontestability and opposition and interference and cancellation proceedings.

 

4.8.            
Commercial Tort Claims. Such Grantor shall promptly, and in any event within two Business Days after the same is
acquired by it, notify the Administrative Agent of any Commercial Tort Claim acquired by it and, unless the Administrative Agent
otherwise consents, such Grantor shall enter into an amendment to this Security Agreement, in the form of Exhibit J
hereto, granting to Administrative Agent a first priority security interest in such commercial tort claim. The requirement in the
preceding sentence shall not apply to the extent that the amount of such Commercial Tort Claim, together with the amount of (a)
all other Commercial Tort Claims held by any Grantor in which the Administrative Agent does not have a perfected security interest,
(b) all Letters of Credit (except to the extent constituting supporting obligations) in which the Administrative Agent does not
have a perfected security interest and (c) all motor vehicles (and any such other Equipment covered by certificates of title or
ownership) as to which any Grantor has not delivered a certificate of title of ownership to the Administrative Agent, does not
exceed $5,000,000 in the aggregate for all Grantors.

 

4.9.            
Letter-of-Credit Rights. If such Grantor is or becomes the beneficiary of a letter of credit, it shall promptly,
and in any event within two (2) Business Days after becoming a beneficiary, notify the Administrative Agent thereof and cause
the issuer and/or confirmation bank to (i) consent to the assignment of any Letter-of-Credit Rights to the Administrative
Agent and (ii) agree to direct all payments thereunder to a Deposit Account at the Administrative Agent or subject to a Deposit
Account Control Agreement for application to the Secured Obligations, in accordance with the Credit Agreement, all in form and
substance reasonably satisfactory to the Administrative Agent. The actions in the proceeding sentence shall not be required to
the extent that the amount of any such Letter of Credit, together with the aggregate amount of (a) all other Letters of Credit
for which the actions described above have not been taken and (b) all Commercial Tort Claims in which the Administrative Agent
does not have a perfected security interest and (c) all motor vehicles (and any such other Equipment covered by certificates of
title or ownership) as to which any Grantor has not delivered a certificate of title or ownership to the Administrative Agent,
does not exceed $5,000,000 in the aggregate for all Grantors.

 

4.10.         
Federal, State or Municipal Claims. Such Grantor will promptly notify the Administrative Agent of any Collateral
which constitutes a claim against the United States government or any state or local government or any instrumentality or agency
thereof, the assignment of which claim is restricted by federal, state or municipal law.

 

    SECURITY AGREEMENT – Page 18

     

    

 

4.11.         
No Interference. Such Grantor agrees that it will not interfere with any right, power and remedy of the Administrative
Agent provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by the Administrative Agent of any one or more of such rights, powers or remedies.

 

4.12.         
Insurance. (a) In the event any Collateral is located in any area that has been designated by the Federal Emergency
Management Agency as a "Special Flood Hazard Area", such Grantor shall purchase and maintain flood insurance on such
Collateral (including any personal property which is located on any real property leased by such Loan Party within a "Special
Flood Hazard Area"). The amount of flood insurance required by this Section shall at a minimum comply with applicable law,
including the Flood Disaster Protection Act of 1973, as amended.

 

(b)               
All insurance policies required hereunder and under Section 5.10 of the Credit Agreement shall name the Administrative
Agent (for the benefit of the Administrative Agent and the Secured Parties) as an additional insured or as lender’s loss
payee, as applicable, and shall contain lender loss payable clauses or mortgagee clauses, through endorsements in form and substance
satisfactory to the Administrative Agent, which provide that: (i) all proceeds thereunder with respect to any Collateral shall
be payable to the Administrative Agent; (ii) no such insurance shall be affected by any act or neglect of the insured or owner
of the property described in such policy; and (iii) such policy and lender loss payable or mortgagee clauses may be canceled,
amended, or terminated only upon at least thirty (30) days prior written notice given to the Administrative Agent.

 

(c)               
All premiums on any such insurance shall be paid when due by such Grantor, and copies of the policies delivered to the Administrative
Agent. If such Grantor fails to obtain or maintain any insurance as required by this Section, the Administrative Agent may obtain
such insurance at the Borrower’s expense. By purchasing such insurance, the Administrative Agent shall not be deemed to have
waived any Default arising from a Grantor’s failure to maintain such insurance or pay any premiums therefor.

 

4.13.         
Collateral Access Agreements. Such Grantor shall use commercially reasonable efforts to obtain a Collateral Access
Agreement from the lessor of each leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse,
processor or converter facility or other location where Collateral is stored or located, which agreement or letter shall provide
access rights, contain a waiver or subordination of all Liens or claims that the landlord, mortgagee, bailee or consignee may assert
against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to the Administrative
Agent; provided, that, notwithstanding anything herein to the contrary, the Grantors shall only be required to obtain a
Collateral Access Agreement for the headquarters property located in Dallas, Texas (or any other property treated as the headquarters
of the Borrower.

 

4.14.         
Deposit Account Control Agreements; Securities Account Control Agreements and Commodity Account Control Agreement.
Such Grantor will provide to the Administrative Agent upon the Administrative Agent’s request, (a) a Deposit Account
Control Agreement duly executed on behalf of each financial institution holding a Deposit Account, (b) a Securities Account
Control Agreement duly executed on behalf of each securities intermediary holding a Securities Account, Financial Asset or other
Investment Property and (c) a Commodity Account Control Agreement duly executed on behalf of each commodity intermediary holding
a Commodity Account; provided, however, that notwithstanding anything herein to the contrary, it is hereby acknowledged
and agreed that no Deposit Account Control Agreement, Securities Account Control Agreement or Commodity Account Control Agreement
will be required to be executed.

 

    SECURITY AGREEMENT – Page 19

     

    

 

4.15.         
Change of Name or Location; Change of Fiscal Year. Such Grantor shall not (a) change its name as it appears
in official filings in the state of its incorporation or organization, (b) change its chief executive office, principal place
of business, mailing address, corporate offices or warehouses or locations at which Collateral is held or stored, or the location
of its records concerning the Collateral as set forth in this Security Agreement, (c) change the type of entity that it is,
or (d) change its state of incorporation or organization, in each case, unless the Administrative Agent shall have received
at least thirty (30) days prior written notice of such change and the Administrative Agent shall have acknowledged in writing
that either (1) such change will not adversely affect the validity, perfection or priority of the Administrative Agent’s
security interest in the Collateral, or (2) any reasonable action requested by the Administrative Agent in connection therewith
has been completed or taken (including any action to continue the perfection of any Liens in favor of the Administrative Agent,
on behalf of the Secured Parties, in any Collateral), provided that, any new location shall be in the continental U.S. Such
Grantor shall not change its fiscal year which currently ends on the Sunday closest to December 31.

 

4.16.         
Changes to Representations, Exhibits. Concurrently with the delivery of any annual financial statements delivered
pursuant to Section 5.01(a) of the Credit Agreement and at any time and from time to time at the Administrative Agent's
request during the existence and during the continuance of an Event of Default, to the extent that any information disclosed on
any Exhibit to this Security Agreement changed during the Borrower’s most recent fiscal year covered by such financial
statements, each such Grantor shall deliver to the Administrative Agent an Exhibit Restatement with respect to the affected Exhibits
(which Exhibit Restatement shall restate (and not supplement) each such Exhibit in its entirety); provided, the delivery
of any updated Exhibit shall (a) not be deemed a waiver or termination of any (i) obligation of any Grantor under
any Loan Document, or (ii) representation or warranty of any Grantor with respect to an Exhibit during the period such
Exhibit was effective, and (b) be effective on the Exhibit Effective Date of such updated Exhibit. Each Grantor
shall promptly notify the Administrative Agent of any change in any representation herein and any information on any Exhibit
hereto if such change could reasonably be expected to have a Material Adverse Effect. Each representation and warranty made as
of a particular Exhibit Effective Date, or as of any date thereafter until the next Exhibit Effective Date, shall be deemed made
as of such Exhibit Effective Date until the Exhibit Effective Date of the next effective succeeding restated Exhibit. Notwithstanding
the restatement of an Exhibit pursuant to this Section 4.16, each restated Exhibit shall remain a part
of this Security Agreement and effective as to the period provided in this Section 4.16. Each Grantor hereby (a) irrevocably
authorizes the Borrower to restate any Exhibit to this Security Agreement (including any Exhibit that may contain
information as to such authorizing Grantor) without the joinder or consent of or notice to such authorizing Grantor, (b) irrevocably
authorizes the Administrative Agent to attach each restated Exhibit to this Security Agreement, and (c) ratifies and
affirms each of its obligations pursuant to this Agreement, as it may be amended from time to time by the restatement of any Exhibit
(notwithstanding if such authorizing Grantor’s copy of this Security Agreement does not have attached to it all Exhibits).
Each Grantor shall, if requested by the Administrative Agent, join as a party to any Exhibit Restatement.

 

ARTICLE
V

EVENTS OF DEFAULT AND REMEDIES

 

5.1.            
Events of Default. The occurrence of any one or more of the following events shall constitute an Event of Default
hereunder:

 

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(a)               
Any representation or warranty made by or on behalf of any Grantor under or in connection with this Security Agreement shall
be materially false as of the date on which made.

 

(b)               
Any Grantor shall fail to observe or perform any of the terms or provisions of Article IV.

 

(c)               
Any Grantor shall fail to observe or perform any of the terms or provisions of this Security Agreement (other than a breach
which constitutes an Event of Default under any other Section of this Article V), and such failure shall continue unremedied
for a period of ten (10) days after the earlier of knowledge of such breach or notice thereof from the Administrative Agent.

 

(d)               
The occurrence of any "Event of Default" under, and as defined in, the Credit Agreement.

 

(e)               
Any Equity Interest which is included within the Collateral shall at any time constitute a Security or the issuer of any
such Equity Interest shall take any action to have such interests treated as a Security unless (i) all certificates or other
documents constituting such Security have been delivered to the Administrative Agent and such Security is properly defined as such
under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise,
or (ii) the Administrative Agent has entered into a Securities Account Control Agreement with the issuer of such Security
or with a securities intermediary relating to such Security and such Security is defined as such under Article 8 of the UCC
of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise; provided, however, that
it is hereby acknowledged and agreed that no Securities Account Control Agreement will be required to be executed with respect
to any such Securities Account.

 

5.2.            
Remedies.

 

(a)               
Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may exercise any or all
of the following rights and remedies:

 

(i)                
those rights and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided
that, this Section 5.2(a) shall not be understood to limit any rights or remedies available to the Administrative Agent
and the other Secured Parties prior to an Event of Default;

 

(ii)              
those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected Collateral)
or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff
or bankers’ lien) when a debtor is in default under a security agreement;

 

(iii)            
give notice of sole control or any other instruction under any Deposit Account Control Agreement, Securities Account Control
Agreement, Commodity Account Control Agreement or and other control agreement with any securities intermediary and take any action
therein with respect to such Collateral; it being acknowledged that no Deposit Account Control Agreement, Securities Account Control
Agreement or Commodity Account Control Agreement is or has been required to be executed and delivered hereunder or under the Credit
Agreement;

 

    SECURITY AGREEMENT – Page 21

     

    

 

(iv)             
without notice (except as specifically provided in Section 8.1 or elsewhere herein and except as may be required under
the UCC or other applicable law), demand or advertisement of any kind to any Grantor or any other Person, enter the premises of
any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process,
appropriate, sell, lease, assign, grant an option or options to purchase or otherwise dispose of, deliver, or realize upon, the
Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued
from time to time with or without notice and may take place at any Grantor’s premises or elsewhere), for cash, on credit
or for future delivery without assumption of any credit risk, and upon such other terms as the Administrative Agent may deem commercially
reasonable; and

 

(v)               
concurrently with written notice to the applicable Grantor, transfer and register in its name or in the name of its nominee
the whole or any part of the Pledged Collateral, exchange certificates or instruments representing or evidencing Pledged Collateral
for certificates or instruments of smaller or larger denominations, exercise the voting and all other rights as a holder with respect
thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise act
with respect to the Pledged Collateral as though the Administrative Agent was the outright owner thereof.

 

(b)               
The Administrative Agent, on behalf of the Secured Parties, may comply with any applicable state or federal law requirements
in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

 

(c)               
The Administrative Agent shall have the right upon any such public sale or sales and, to the extent permitted by law, upon
any such private sale or sales, to purchase for the benefit of the Administrative Agent and the other Secured Parties, the whole
or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption each Grantor hereby expressly
releases.

 

(d)               
Until the Administrative Agent is able to effect a sale, lease, or other disposition of Collateral, the Administrative Agent
shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of
preserving Collateral or its value or for any other purpose deemed appropriate by the Administrative Agent. The Administrative
Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of
the Administrative Agent’s remedies (for the benefit of the Administrative Agent and the other Secured Parties), with respect
to such appointment without prior notice or hearing as to such appointment.

 

(e)               
If, after the Credit Agreement has terminated by its terms and all of the Obligations have been Paid in Full, there remain
Swap Agreement Obligations outstanding, the Required Lenders may exercise the remedies provided in this Section 5.2 upon the
occurrence of any event which would allow or require the termination or acceleration of any Swap Agreement Obligations pursuant
to the terms of the Swap Agreement.

 

(f)                
Notwithstanding the foregoing, neither the Administrative Agent nor any other Secured Party shall be required to (i) make
any demand upon, or pursue or exhaust any of its rights or remedies against, any Grantor, any other obligor, guarantor, pledgor
or any other Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of its rights or remedies
with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee
of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii) effect a
public sale of any Collateral.

 

    SECURITY AGREEMENT – Page 22

     

    

 

(g)               
Each Grantor recognizes that the Administrative Agent may be unable to effect a public sale of any or all the Pledged Collateral
and may be compelled to resort to one or more private sales thereof in accordance with clause (a) above. Each Grantor
also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale were
a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made
in a commercially unreasonable manner solely by virtue of such sale being private. The Administrative Agent shall be under no obligation
to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged
Collateral to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state
securities laws, even if the applicable Grantor and the issuer would agree to do so.

 

(h)               
To the extent not prohibited by applicable law, each Grantor hereby agrees that any provision of any of the certificate
or articles of incorporation, certificate of formation or organization, or certificate of limited partnership of any issuer of
Pledged Collateral, the bylaws, limited liability company agreement or partnership agreement of such issuer, any designation of
rights or similar agreement with respect to any Equity Interest of such issuer, any voting or similar equityholder agreement with
respect to such issuer or any other organization or governance document with respect to such issuer, or any applicable law that
in any manner restricts, prohibits or provides conditions to (i) the grant of a Lien on any Security or Equity Interest of or any
other interest in such issuer, (ii) any transfer of any Security or Equity Interest of or any other interest in such issuer, (iii)
any change in management or control of such issuer, or (iv) any other exercise of any rights of the Administrative Agent pursuant
to this Security Agreement, any other Loan Document or law shall not apply to (A) the grant of any Lien hereunder, (B) the execution,
delivery and performance of this Security Agreement by such Grantor, (C) the foreclosure or other realization upon any interest
in any Collateral, or (D) the admission of the Administrative Agent or its assignee or any other holder of any Collateral as an
equityholder of such issuer and the exercise of all rights of an equityholder of such issuer. Furthermore, each Grantor agrees
that it will not permit any amendment to or restatement of any of the certificate or articles of incorporation, certificate of
formation or organization, or certificate of limited partnership of any issuer of Collateral, the bylaws, limited liability company
agreement or partnership agreement of such issuer, any designation of rights or similar agreement with respect to any Equity Interest
of such issuer, any voting or similar equityholder agreement with respect to such issuer, any other organization or governance
document with respect to such issuer in any manner to adversely affect the Administrative Agent’s ability to foreclose or
otherwise realize on any Collateral or which conflicts with the provisions of this Section without the prior written consent of
the Administrative Agent.

 

5.3.            
Grantor’s Obligations Upon Default. Upon the request of the Administrative Agent after the occurrence and during
the continuance of a Default, each Grantor will:

 

(a)               
assemble and make available to the Administrative Agent the Collateral and all books and records relating thereto at any
place or places specified by the Administrative Agent, whether at a Grantor’s premises or elsewhere;

 

    SECURITY AGREEMENT – Page 23

     

    

 

(b)               
permit the Administrative Agent, by the Administrative Agent’s representatives and agents, to enter, occupy and use
any premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located, to take
possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of
the Collateral or the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation
to pay the Grantor for such use and occupancy;

 

(c)               
prepare and file, or cause an issuer of Pledged Collateral to prepare and file, with the Securities and Exchange Commission
or any other applicable government agency, registration statements, a prospectus and such other documentation in connection with
the Pledged Collateral as the Administrative Agent may request, all in form and substance satisfactory to the Administrative Agent,
and furnish to the Administrative Agent, or cause an issuer of Pledged Collateral to furnish to the Administrative Agent, any information
regarding the Pledged Collateral in such detail as the Administrative Agent may specify;

 

(d)               
take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to register or qualify the Pledged
Collateral to enable the Administrative Agent to consummate a public sale or other disposition of the Pledged Collateral; and

 

(e)               
at its own expense, cause the independent certified public accountants then engaged by each Grantor to prepare and deliver
to the Administrative Agent and each Lender, at any time, and from time to time, promptly upon the Administrative Agent’s
request, the following reports with respect to the applicable Grantor: (i) a reconciliation of all Accounts; (ii) an
aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts.

 

5.4.            
Grant of Intellectual Property License. For the purpose of enabling the Administrative Agent to exercise the rights
and remedies under this Article V at such time as the Administrative Agent shall be lawfully entitled to exercise such
rights and remedies (including in order to take possession of, collect, receive, assemble, process, appropriate, remove, realize
upon, sell, assign, convey, transfer or grant options to purchase any Collateral), each Grantor hereby (a) grants to the Administrative
Agent, for the benefit of the Administrative Agent and the other Secured Parties, an irrevocable, nonexclusive worldwide license
(exercisable without payment of royalty or other compensation to any Grantor), including in such license the right to use, license,
sublicense or practice any Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to
all computer Software and programs used for the compilation or printout thereof and (b) irrevocably agrees that the Administrative
Agent may sell any of such Grantor’s Inventory directly to any person, including without limitation persons who have previously
purchased the Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Administrative
Agent’s rights under this Security Agreement, may sell Inventory which bears any Trademark owned by or licensed to such Grantor
and any Inventory that is covered by any Copyright owned by or licensed to such Grantor and the Administrative Agent may (but shall
have no obligation to) finish any work in process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory
as provided herein. Each licenses, sub-license, or other transaction entered into by the Administrative Agent in accordance herewith
shall be binding upon each Grantor notwithstanding any subsequent cure or waiver of an Event of Default.

 

    SECURITY AGREEMENT – Page 24

     

    

 

ARTICLE
VI

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

 

6.1.            
Account Verification. The Administrative Agent may at any time after the occurrence and during the continuance of
an Event of Default, in the Administrative Agent’s own name, in the name of a nominee of the Administrative Agent, or in
the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of any such Grantor,
parties to contracts with any such Grantor and obligors in respect of Instruments of any such Grantor to verify with such Persons,
to the Administrative Agent’s satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts,
Instruments, Chattel Paper, payment intangibles and/or other Receivables.

 

6.2.            
Authorization for Administrative Agent to Take Certain Action.

 

(a)               
Each Grantor irrevocably authorizes the Administrative Agent at any time and from time to time in the sole discretion of
the Administrative Agent and appoints the Administrative Agent as its attorney-in-fact (i) to endorse and collect any cash
constituting Collateral or proceeds of the Collateral, (ii) to file any financing statement with respect to the Collateral
and to file any other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor)
in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to perfect and to maintain the
perfection and priority of the Administrative Agent’s security interest in the Collateral, (iii) in the case of any
Intellectual Property owned by or licensed to a Grantor, execute, deliver and have recorded any document that the Administrative
Agent may request to evidence, effect, publicize or record the Administrative Agent’s security interest in such Intellectual
Property and the goodwill and General Intangibles of such Grantor relating thereto or represented thereby, (iv) to contact
and enter into one or more agreements with the issuers of uncertificated securities which are Pledged Collateral or with securities
intermediaries holding Pledged Collateral as may be necessary or advisable to give the Administrative Agent Control over such Pledged
Collateral, (v) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens
that are permitted under Section 6.02 of the Credit Agreement), (vi) to contact Account Debtors for any reason, (vii) to
demand payment or enforce payment of the Receivables in the name of the Administrative Agent or such Grantor and to endorse any
and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (viii) to sign such Grantor’s
name on any invoice or bill of lading relating to the Receivables, drafts against any Account Debtor of the Grantor, assignments
and verifications of Receivables, (ix) to exercise all of such Grantor’s rights and remedies with respect to the collection
of the Receivables and any other Collateral, (x) to settle, adjust, compromise, extend or renew the Receivables, (xi) to
settle, adjust or compromise any legal proceedings brought to collect Receivables, (xii) to prepare, file and sign such Grantor’s
name on a proof of claim in bankruptcy or similar document against any Account Debtor or any issuer of Pledged Collateral of such
Grantor, (xiii) to prepare, file and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien
or similar document in connection with the Receivables, (xiv) to change the address for delivery of mail addressed to such
Grantor to such address as the Administrative Agent may designate and to receive, open and dispose of all mail addressed to such
Grantor, and (xv) to do all other acts and things necessary to carry out this Security Agreement; and such Grantor agrees
to reimburse the Administrative Agent on demand for any payment made or any expense incurred by the Administrative Agent in connection
with any of the foregoing; provided that, this authorization shall not relieve such Grantor of any of its obligations under
this Security Agreement or under the Credit Agreement.

 

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(b)               
All acts of said attorney or designee are hereby ratified and approved. The powers conferred on the Administrative Agent,
for the benefit of the Administrative Agent and Secured Parties, under this Section 6.2 are solely to protect the Administrative
Agent’s interests in the Collateral and shall not impose any duty upon the Administrative Agent or any other Secured Party
to exercise any such powers. The Administrative Agent agrees that, except for the powers granted in Section 6.2(a)(i)-(v)
and Section 6.2(a)(xv), it shall not exercise any power or authority granted to it unless an Event of Default has occurred
and is continuing.

 

6.3.            
Proxy. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT AS ITS PROXY AND ATTORNEY-IN-FACT
(AS SET FORTH IN SECTION 6.2 ABOVE) OF SUCH GRANTOR WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED
COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT
OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES
AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF
SHAREHOLDERS AND OTHER HOLDERS OF EQUITY INTERESTS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND OTHER HOLDERS OR EQUITY INTERESTS
AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY
TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH
PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT.

 

6.4.            
Nature of Appointment; Limitation of Duty. EACH APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY (INCLUDING EACH
SEPARATE POWER) AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE
ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.14. NOTWITHSTANDING ANYTHING CONTAINED HEREIN,
NONE OF THE ADMINISTRATIVE AGENT, ANY LENDER, ANY OTHER SECURED PARTY, ANY OF THEIR RESPECTIVE AFFILIATES, OR ANY OF THEIR OR THEIR
AFFILIATES’ RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT
OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY
IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO SUCH PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT
AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY,
INDIRECT OR CONSEQUENTIAL DAMAGES.

 

ARTICLE
VII

GENERAL PROVISIONS

 

7.1.            
Waivers. Except as may be required under the UCC or other applicable law, each Grantor hereby waives notice of the
time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral
may be made. To the extent such notice may not be waived under the UCC or other applicable law, any notice made shall be deemed
reasonable if sent to Grantors, addressed as set forth in Article IX, at least ten days prior to (i) the date of any
such public sale or (ii) the time after which any such private sale or other disposition may be made. To the maximum extent
permitted by applicable law, each Grantor waives all claims, damages, and demands against the Administrative Agent or any Secured
Party arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence
or willful misconduct of the Administrative Agent or such Secured Party as finally determined by a court of competent jurisdiction.
To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage
of, and covenants not to assert against the Administrative Agent or any other Secured Party, any valuation, stay, appraisal, extension,
moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which,
but for this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court,
or privately under the power of sale conferred by this Security Agreement, or otherwise. Except as otherwise specifically provided
herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law)
of any kind in connection with this Security Agreement or any Collateral.

 

    SECURITY AGREEMENT – Page 26

     

    

 

7.2.            
Limitation on Administrative Agent’s and Secured Parties’ Duty with Respect to the Collateral. The Administrative
Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. The Administrative Agent and each other
Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Neither the Administrative
Agent nor any other Secured Party shall have any other duty as to any Collateral in its possession or control or in the possession
or control of any agent or nominee of the Administrative Agent or such other Secured Party, or any income thereon or as to the
preservation of rights against prior parties or any other rights pertaining thereto except as may be required under the UCC or
other applicable law. To the extent that applicable law imposes duties on the Administrative Agent to exercise remedies in a commercially
reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Administrative Agent (i) to
fail to incur expenses deemed significant by the Administrative Agent to prepare Collateral for disposition or otherwise to transform
raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third
party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental
or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise
collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims
against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral
directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral
through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact
other Persons, whether or not in the same business as such Grantor, for expressions of interest in acquiring all or any portion
of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether
or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide
for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match
buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition
warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the
Administrative Agent against risks of loss, collection or disposition of Collateral or to provide to the Administrative Agent a
guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Administrative
Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Administrative
Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this Section 7.2
is to provide non-exhaustive indications of what actions or omissions by the Administrative Agent would be commercially reasonable
in the Administrative Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Administrative
Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 7.2. Without
limitation upon the foregoing, nothing contained in this Section 7.2 shall be construed to grant any rights to the Grantor
or to impose any duties on the Administrative Agent that would not have been granted or imposed by this Security Agreement or by
applicable law in the absence of this Section 7.2.

 

    SECURITY AGREEMENT – Page 27

     

    

 

7.3.            
Compromises and Collection of Collateral. The Grantors and the Administrative Agent recognize that setoffs, counterclaims,
defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables
may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable
may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each
Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default has occurred and is
continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative
Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the Administrative Agent shall be
commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it
takes any such action.

 

7.4.            
Secured Party Performance of Grantor Obligations. Without having any obligation to do so, the Administrative Agent
may perform or pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and the Grantors shall
reimburse the Administrative Agent for any amounts paid by the Administrative Agent pursuant to this Section 7.4. The Grantors’
obligation to reimburse the Administrative Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand.

 

7.5.            
Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees that a breach of any of the covenants
contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 4.13, 4.14, 4.15, 5.3, or 7.7 will cause irreparable
injury to the Administrative Agent and the other Secured Parties, that the Administrative Agent and the other Secured Parties have
no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Administrative Agent
or the other Secured Parties to seek and obtain specific performance of other obligations of the Grantors contained in this Security
Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 7.5 shall be specifically
enforceable against the Grantors.

 

7.6.            
Dispositions Not Authorized. No Grantor is authorized to sell or otherwise dispose of the Collateral except as set
forth in Section 4.1(d) and notwithstanding any course of dealing between any Grantor and the Administrative Agent or other
conduct of the Administrative Agent, no authorization to sell or otherwise dispose of the Collateral (except as set forth in Section 4.1(d))
shall be binding upon the Administrative Agent or the other Secured Parties unless such authorization is in writing signed by the
Administrative Agent with the consent or at the direction of the Required Lenders.

 

7.7.            
No Waiver; Amendments; Cumulative Remedies. No failure or delay by the Administrative Agent or any other Secured
Party in exercising any right or power under this Security Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude
any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent and the other Secured Parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise
have. No waiver of any provision of this Security Agreement or consent to any departure by the Grantor therefrom shall in any event
be effective unless in writing signed by the Administrative Agent with the concurrence or at the direction of the Lenders required
under Section 9.02 of the Credit Agreement and then only to the extent in such writing specifically set forth.

 

    SECURITY AGREEMENT – Page 28

     

    

 

7.8.            
Limitation by Law; Severability of Provisions. All rights, remedies and powers provided in this Security Agreement
may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions
of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and
to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled
to be recorded or registered, in whole or in part. Any provision in this Security Agreement held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction, and to this end the provisions
of this Security Agreement are declared to be severable.

 

7.9.            
Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make
an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant
part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment
and performance of the Secured Obligations, or any part thereof (including a payment effected through exercise of a right of setoff),
is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Secured Obligations, whether as a "voidable preference," "fraudulent conveyance," or otherwise (including pursuant
to any settlement entered into by a Secured Party in its discretion), all as though such payment or performance had not been made.
In the event that any payment, or any part thereof (including a payment effected through exercise of a right of setoff), is rescinded,
reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not
so rescinded, reduced, restored or returned.

 

7.10.         
Benefit of Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the
benefit of the Grantors, the Administrative Agent and the other Secured Parties and their respective successors and assigns (including
all persons who become bound as a debtor to this Security Agreement), except that no Grantor shall have the right to assign its
rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the
Administrative Agent. No sales of participations, assignments, transfers, or other dispositions of any agreement governing the
Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Administrative
Agent, for the benefit of the Administrative Agent and the other Secured Parties, hereunder.

 

7.11.         
Survival of Representations. All representations and warranties of the Grantors contained in this Security Agreement
shall survive the execution and delivery of this Security Agreement.

 

7.12.         
Taxes and Expenses. Any taxes (including income taxes) payable or ruled payable by Federal or State authority in
respect of this Security Agreement shall be paid by the Grantors, together with interest and penalties, if any. The Grantors shall
reimburse the Administrative Agent for any and all out-of-pocket expenses and internal charges (including reasonable attorneys’,
auditors’ and accountants’ fees) paid or incurred by the Administrative Agent in connection with the preparation, execution,
delivery, administration, collection and enforcement of this Security Agreement and, to the extent provided in the Credit Agreement
in the audit, analysis, administration, collection, preservation or sale of the Collateral (including the expenses and charges
associated with any periodic or special audit of the Collateral). Any and all costs and expenses incurred by the Grantors in the
performance of actions required pursuant to the terms hereof shall be borne solely by the Grantors.

 

    SECURITY AGREEMENT – Page 29

     

    

 

7.13.         
Headings. The title of and section headings in this Security Agreement are for convenience of reference only, and
shall not govern the interpretation of any of the terms and provisions of this Security Agreement.

 

7.14.         
Termination. This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there
may be no Secured Obligations outstanding) until all of the Secured Obligations have been Paid in Full.

 

7.15.         
Entire Agreement. This Security Agreement and the other Loan Documents embody the entire agreement and understanding
between the Grantors and the Administrative Agent relating to the Collateral and supersedes all prior agreements and understandings
between the Grantors and the Administrative Agent relating to the Collateral.

 

7.16.         
CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS
OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

 

7.17.         
CONSENT TO JURISDICTION. EACH GRANTOR HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE
JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND
EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY
DO SO, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT
OR THAT SUCH COURT IS AN INCONVENIENT FORUM. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE
COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY
AFFILIATE OF THE ADMINISTRATIVE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED
TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

 

7.18.         
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    SECURITY AGREEMENT – Page 30

     

    

 

7.19.         
Indemnity. Each Grantor hereby agrees to indemnify the Administrative Agent and the other Secured Parties, and their
respective successors, assigns, agents and employees, from and against any and all liabilities, damages, penalties, suits, fees,
costs, and expenses of any kind and nature (including, without limitation, all expenses of litigation or preparation therefor whether
or not the Administrative Agent or any Secured Party is a party thereto) imposed on, incurred by or asserted against the Administrative
Agent or the other Secured Parties, or their respective successors, assigns, agents and employees, in any way relating to or arising
out of this Security Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, use,
operation, condition, sale, return or other disposition of any Collateral (including, without limitation, latent and other defects,
whether or not discoverable by the Administrative Agent or the other Secured Parties or any Grantor, and any claim for Patent,
Trademark or Copyright infringement).

 

7.20.         
Counterparts. This Security Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Security Agreement by signing any such counterpart.
Delivery of an executed counterpart of a signature page of this Security Agreement by facsimile or other electronic transmission
shall be effective as delivery of a manually executed counterpart of this Security Agreement.

 

7.21.         
Lien Absolute. All rights of the Administrative Agent hereunder, and all obligations of the Grantors hereunder, shall
be absolute and unconditional irrespective of:

 

(a)               
any lack of validity or enforceability of the Credit Agreement, any other Loan Document or any other agreement or instrument
governing or evidencing any Secured Obligations;

 

(b)               
any change in the time, manner or place of payment of, or in any other term of, all or any part of the Secured Obligations,
or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument governing or evidencing any Secured Obligations;

 

(c)               
any exchange, release or non-perfection of any Collateral, or any release or amendment or waiver of or consent to departure
from any guaranty, for all or any of the Secured Obligations;

 

(d)               
the insolvency of any Person; or

 

(e)               
any other circumstance which might otherwise constitute a defense available to, or a discharge of, any Grantor.

 

7.22.         
Release. Each Grantor consents and agrees that the Administrative Agent may at any time, or from time to time, in
its discretion:

 

(a)               
renew, extend or change the time of payment, and/or the manner, place or terms of payment of all or any part of the Secured
Obligations; and

 

    SECURITY AGREEMENT – Page 31

     

    

 

(b)               
exchange, release and/or surrender all or any of the Collateral (including the Pledged Collateral), or any part thereof,
by whomsoever deposited, which is now or may hereafter be held by the Administrative Agent in connection with all or any of the
Secured Obligations; all in such manner and upon such terms as the Administrative Agent may deem proper, and without notice to
or further assent from any Grantor, it being hereby agreed that each Grantor shall be and remain bound upon this Security Agreement,
irrespective of the value or condition of any of the Collateral, and notwithstanding any such change, exchange, settlement, compromise,
surrender, release, renewal or extension, and notwithstanding also that the Secured Obligations may, at any time, exceed the aggregate
principal amount thereof set forth in the Credit Agreement, or any other agreement governing any Secured Obligations.

 

ARTICLE
VIII

NOTICES

 

8.1.            
Sending Notices. Any notice required or permitted to be given under this Security Agreement shall be sent in accordance
with Section 9.01 of the Credit Agreement, provided that notices to the Grantor shall be sent to the Grantor at its mailing
address set forth in Exhibit A hereto.

 

8.2.            
Change in Address for Notices. Each of the Grantors, the Administrative Agent and the Lenders may change the address
for service of notice upon it by a notice in writing to the other parties.

 

ARTICLE
IX

THE ADMINISTRATIVE AGENT

 

JPMorgan Chase Bank,
N.A. has been appointed Administrative Agent for the Lenders hereunder pursuant to Article VIII of the Credit Agreement. It
is expressly understood and agreed by the parties to this Security Agreement that any authority conferred upon the Administrative
Agent hereunder is subject to the terms of the delegation of authority made by the Lenders to the Administrative Agent pursuant
to Article VIII of the Credit Agreement, and that the Administrative Agent has agreed to act (and any successor Administrative
Agent shall act) as such hereunder only on the express conditions contained in such Article VIII. Any successor Administrative
Agent appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the rights, interests and benefits
of the Administrative Agent hereunder.

 

[Signature Page Follows]

 

    SECURITY AGREEMENT – Page 32

     

    

 

IN WITNESS WHEREOF,
the Grantors and the Administrative Agent have executed this Security Agreement as of the date first above written.

 

	 	
        GRANTORS:

         

        FIESTA RESTAURANT GROUP, INC.,

        a Delaware corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

	 	
        CABANA BEVERAGES, INC.,

        a Texas corporation

        

        By:/s/ Caleb Wood

        Name:Caleb Wood

        Title:Vice President, Associate Counsel & Secretary

         

         

	 	
        CABANA BEVCO LLC,

        a Texas limited liability company

        

        By:/s/ Caleb Wood

        Name:Caleb Wood

        Title:Manager

         

         

	 	
        CABANA GRILL, INC.,

        a Delaware corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

 

    
SECURITY AGREEMENT–
Signature Page

     

    

 

 

	 	
        POLLO TROPICAL MANAGEMENT, LLC,

        a Texas limited liability company

        

        By:/s/ Caleb Wood

        Name:Caleb Wood

        Title:Manager

         

         

	 	
        POLLO TROPICAL BEVERAGES, LLC,

        a Texas limited liability company

        

        By:/s/ Caleb Wood

        Name:Caleb Wood

        Title:Manager

         

         

	 	
        POLLO FRANCHISE, INC.,

        a Florida corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

	 	
        POLLO OPERATIONS, INC.,

        a Florida corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

	 	
        TACO CABANA, INC.,

        a Delaware corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

 

    
SECURITY AGREEMENT – Signature Page 

     

    

 

 

	 	
        TP ACQUISITION CORP.,

        a Texas corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

	 	
        TC BEVCO LLC,

        a Texas limited liability company

        

        By:/s/ Caleb Wood

        Name:Caleb Wood

        Title:Manager

         

         

	 	
        T.C. MANAGEMENT, INC.,

        a Delaware corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasuer

         

         

	 	
        TPAQ HOLDING CORPORATION,

        a Delaware corporation

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial Officer and Treasurer

         

         

 

    
SECURITY AGREEMENT – Signature Page 

     

    

 

	 	
        TEXAS TACO CABANA, L.P.,

        a Texas limited partnership

        

        By:T.C. Management, Inc.,

        its general partner

        

        By:/s/ Lynn Schweinfurth

        Name:Lynn Schweinfurth

        Title:Senior Vice President, Chief Financial

        Officer and Treasurer

         

         

 

    
SECURITY AGREEMENT – Signature Page 

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

By: /s/ Heather E. Aguilar

Name: Heather E. Aguilar

Title: Vice President

 

 

SECURITY AGREEMENT – Signature PageExhibit 4.2

 

THIS FOURTH SUPPLEMENTAL INDENTURE is dated as of December 4, 2017, among Johnson Controls International plc, a public limited company organized under the laws of Ireland (the “Company”), U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”), and Elavon Financial Services DAC, UK Branch, as paying agent (the “Paying Agent”).

 

RECITALS

 

A.            The Company and the Trustee executed and delivered an Indenture, dated as of December 28, 2016 (the “Base Indenture”), to provide for the issuance by the Company from time to time of debt securities evidencing its indebtedness.

 

B.            Pursuant to resolutions of the Board of Directors, the Company has authorized the issuance of the Offered Securities (as defined herein).

 

C.            The entry into this Fourth Supplemental Indenture by the parties hereto is in all respects authorized by the provisions of the Base Indenture.

 

D.            The Company desires to enter into this Fourth Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in accordance with Section 2.02 of the Base Indenture.

 

E.            All things necessary to make this Fourth Supplemental Indenture a valid indenture and agreement according to its terms have been done.

 

NOW, THEREFORE, for and in consideration of the foregoing premises, the Company, the Trustee and the Paying Agent mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Offered Securities as follows:

 

ARTICLE I.

 

Section 1.01         Definitions of Terms.

 

(a)           Capitalized terms used but not defined in this Fourth Supplemental Indenture shall have the meanings ascribed thereto in the Base Indenture.

 

(b)           As used herein, the following terms shall have the following meanings with respect to the Offered Securities only:

 

“Offered Securities” means the 0.000% Senior Notes due 2020 issued pursuant to this Fourth Supplemental Indenture, in an initial aggregate principal amount of €750,000,000, together with any additional Securities of such series issued pursuant to Section 2.01(b) of the Base Indenture.

 

 

“Reference Bond” means, in relation to any Treasury Rate calculation, a German government bond whose maturity is closest to the maturity of the Offered Securities, or if the Company or an independent investment bank appointed by the Company considers that such similar bond is not in issue, such other German government bond as the Company or an independent investment bank appointed by the Company, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company or an independent investment bank appointed by the Company, determine to be appropriate for determining the Treasury Rate.

 

“Remaining Scheduled Payments” means, with respect to each Offered Security to be redeemed, the remaining scheduled payments of principal of and interest on the relevant Offered Security that would be due after the related redemption date but for the redemption. If that redemption date is not an Interest Payment Date with respect to an Offered Security, the amount of the next succeeding scheduled interest payment on the relevant Offered Security will be reduced by the amount of interest accrued on the Offered Security to the redemption date.

 

“Treasury Rate” means the rate per annum (which, if less than zero, shall be deemed to be zero) equal to the annual equivalent yield to maturity of the Reference Bond, assuming a price for the Reference Bond (expressed as a percentage of its principal amount) equal to the middle market price of the Reference Bond prevailing at 11:00 a.m. (London time) on the third Business Day preceding such redemption date as determined by the Company or an independent investment bank appointed by the Company.

 

Section 1.02         Terms of Offered Securities.  The following terms relate to the Offered Securities:

 

(1)           The Offered Securities constitute a single series of securities having the title “0.000% Senior Notes due 2020”.

 

(2)           The initial aggregate principal amount of the Offered Securities that may be authenticated and delivered under the Base Indenture (except for Offered Securities authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11 or 3.03 of the Base Indenture) is €750,000,000.

 

(3)           The entire Outstanding principal of the Offered Securities shall be payable on December 4, 2020.

 

(4)           The Offered Securities will bear interest at a rate of 0.000% per annum.  The basis upon which interest shall be calculated will be the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Offered Securities (or December 4, 2017, if no interest has been paid on the Offered Securities), to but excluding the next scheduled Interest Payment Date. This payment convention is referred to as “ACTUAL/ACTUAL (ICMA),” as defined in the statutes, by-laws, rules and recommendations published by the International Capital Markets Association (the “ICMA Rulebook”).

 

2

 

(5)           Interest on the Offered Securities shall accrue from December 4, 2017, or, if later, the most recent Interest Payment Date to which interest in respect of the Offered Securities has been paid or provided for.  The Interest Payment Date for the Offered Securities shall be December 4 of each year, beginning on December 4, 2018.  Interest in respect of the Offered Securities shall be payable annually in arrears on each applicable Interest Payment Date to the applicable Holders of record at the close of business on the November 19 next preceding such Interest Payment Date (the “regular record date”).

 

(6)           The Company initially appoints Elavon Financial Services DAC, UK Branch (“Elavon, UK Branch”) as Paying Agent with respect to the Offered Securities pursuant to Section 4.03 of the Base Indenture until such time as Elavon, UK Branch has resigned or a successor has been appointed. Elavon, UK Branch hereby accepts such initial appointment, and the Company confirms that such initial appointment is acceptable to it. Elavon, UK Branch shall have all of the rights, privileges, protections and immunities granted to the Trustee in the Indenture mutatis mutandis. Principal of, premium, if any, interest on and additional amounts, if any, on the Offered Securities will be payable at the office or agency of the Paying Agent at Elavon Financial Services DAC, 2nd Floor, Block E, Cherrywood Science & Technology Park, Loughlinstown, Co. Dublin, Ireland acting through its UK Branch (registered number BR009373) from its offices at Fifth Floor, 125 Old Broad Street, London EC2N 1AR, United Kingdom, until such time as the Company designates an alternate place of payment.

 

(7)           [Reserved].

 

(8)           Prior to September 4, 2020 (three months prior to the maturity date), the Company may, at its option, redeem the Offered Securities, in whole at any time or in part from time to time (in €1,000 increments, provided that any remaining principal amount thereof shall be at least the minimum authorized denomination of €100,000), at a redemption price equal to the greater of (i) 100% of the principal amount of the Offered Securities to be redeemed and (ii) the sum of the present values of the Remaining Scheduled Payments discounted to the redemption date, on an annual basis (ACTUAL/ACTUAL (ICMA)), at a rate equal to the Treasury Rate plus 15 basis points plus, in either case, accrued and unpaid interest, if any, thereon to, but excluding, the redemption date (subject to the right of Holders of record on the relevant regular record date to receive interest due on the relevant Interest Payment Date).

 

On or after September 4, 2020 (three months prior to their maturity date), the Company may, at its option, redeem the Offered Securities, in whole at any time or in part from time to time (in €1,000 increments, provided that any remaining principal amount thereof shall be at least the minimum authorized denomination of €100,000), at a redemption price equal to 100% of the principal amount of the Offered Securities to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the redemption date (subject to the right of Holders of record on the relevant regular record date to receive interest due on the relevant Interest Payment Date).

 

In addition, the Offered Securities may be redeemed pursuant to Article XIV of the Base Indenture.

 

3

 

(9)           Except as provided in Section 4.08 of the Base Indenture, the Offered Securities shall not be subject to redemption, repurchase or repayment at the option of any Holder thereof, upon the occurrence of any particular circumstance or otherwise.  The Offered Securities will not have the benefit of any sinking fund.

 

(10)         The Offered Securities shall be substantially in the form attached hereto as Exhibit A, the terms of which are herein incorporated by reference.

 

(11)         The Offered Securities will be issued in registered form without interest coupons and only in denominations of €100,000 and whole multiples of €1,000 in excess thereof.

 

(12)         All payments of interest and principal, including payments made upon any redemption or repurchase of the Offered Securities, will be payable in Euros.  If, on or after November 28, 2017, the Euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the control of the Company or if the Euro is no longer being used by the then member states of the European Monetary Union that have adopted the Euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Offered Securities will be made in Dollars until the Euro is again available to the Company or so used. In such circumstances, the amount payable on any date in Euros will be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent Dollar/Euro exchange rate available on or prior to the second Business Day prior to the relevant payment date as determined by the Company in its sole discretion. Any payment in respect of the Offered Securities so made in Dollars will not constitute an Event of Default under the Offered Securities or the Indenture.  Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

(13)         [Reserved].

 

(14)         [Reserved].

 

(15)         The Offered Securities shall be issuable in whole in the registered form of one or more Global Securities, and the common depositary on behalf of Euroclear and Clearstream shall be the initial Depositary.

 

(16)         The Offered Securities will not be convertible into or exchangeable for other Securities, common shares or other securities of the Company.

 

(17)         [Reserved].

 

(18)         [Reserved].

 

(19)         [Reserved].

 

(20)         Upon the Company’s request, each Holder and beneficial owner shall provide a properly completed and executed IRS Form W-9 or IRS Form W-8, as applicable, as

 

4

 

would have been applicable if the Company were incorporated in the United States of America, any State thereof or the District of Columbia.

 

(21)         The Offered Securities may be defeased in accordance with the provisions of Section 11.03 of the Base Indenture and the Indenture shall cease to be of further effect with respect to the Offered Securities in accordance with the provisions of Section 11.02 of the Base Indenture; provided, however, that (a) for purposes of defeasance of the Offered Securities and satisfaction and discharge of the Indenture with respect to the Offered Securities and (b) as otherwise used in Article XI of the Base Indenture with respect to the Offered Securities, the term “Governmental Obligations” shall have the meaning set forth in Section 1.03 (a) of this Fourth Supplemental Indenture.

 

(22)         [Reserved].

 

(23)         The Offered Securities will be issued as Unrestricted Securities.

 

(24)         No Offered Securities shall be issued with guarantees.

 

(25)         The additional provisions set forth in Section 1.03 shall be applicable to the Offered Securities.

 

Section 1.03         Additional Terms of Offered Securities.

 

(a)           For purposes of the Base Indenture and this Fourth Supplemental Indenture, with respect to the Offered Securities the term “Governmental Obligations” means (x) any security which is (i) a direct obligation of the German government or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the German government the payment of which is fully and unconditionally guaranteed by the German government, the central bank of the German government or a governmental agency of the German government, which, in either case (x)(i) or (ii), is not callable or redeemable at the option of the issuer thereof, and (y) certificates, depositary receipts or other instruments which evidence a direct ownership interest in obligations described in clause (x)(i) or (x)(ii) above or in any specific principal or interest payments due in respect thereof.

 

(b)           Claims against the Company for the payment of principal or Additional Amounts, if any, of the Offered Securities will be prescribed ten years after the applicable due date for payment thereof. Claims against the Company for the payment of interest, if any, of the Offered Securities will be prescribed five years after the applicable due date for payment of interest.

 

(c)           The third and fourth sentences of Section 2.05(c) of the Base Indenture shall not apply to the Offered Securities, and instead the following shall apply:

 

Each Global Security is exchangeable for Definitive Securities only if (1) the Depositary for such Global Security notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security and a successor Depositary is not appointed by the Company within 90 days after receiving that notice; (2) upon request of a Holder of any Offered Securities upon the occurrence and continuance of an Event of Default with respect to the Offered Securities;

 

5

 

or (3) the Company determines that such Global Security will be exchangeable for Definitive Securities and notifies the Trustee of its decision. Upon the occurrence of any of the foregoing clauses (1), (2) and (3), the provisions of Section 2.11 of the Base Indenture shall no longer apply to the Offered Securities.

 

(d)           The second and third sentences of Section 2.11(a) of the Base Indenture shall not apply to the Offered Securities, and instead the following shall apply:

 

The Holder of a Global Security representing an Offered Security shall be the only Person entitled to receive payments in respect of Offered Securities represented by such Global Security, and the Company will be discharged by payment to, or to the order of, the Holder of such Global Security in respect of each amount so paid. After payment to the Depositary (or its nominee) of interest, principal or other amounts in respect of the Offered Securities represented by a Global Security, the Company will not have responsibility or liability for the payment of such amounts to Euroclear or Clearstream or to Holders or beneficial owners of book-entry interests in the Offered Securities. Each Person owning a beneficial interest in an Offered Security must rely on the procedures of the Depositary and, if such Person is not a Participant, on the procedures of the Participant through which such Person owns its interest, in order to exercise any rights of a Holder of Offered Securities.

 

(e)           Any notice or communication by the Company or the Trustee to the Paying Agent is duly given if in writing and delivered electronically or in person or mailed by first-class mail (registered or certified, return receipt requested), telex, telecopier or overnight air courier guaranteeing next day delivery, to the following address:

 

Elavon Financial Services DAC, UK Branch

Fifth Floor

125 Old Broad Street

London

EC2N-1AR

United Kingdom

Facsimile: +44 (0)207 365 2577

Attention: Structured Finance Relationship Management

 

ARTICLE II.

 

MISCELLANEOUS

 

Section 2.01         Confirmation of Indenture.  The Base Indenture, as supplemented and amended by this Fourth Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture, this Fourth Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

 

Section 2.02         Concerning the Trustee.  In carrying out the Trustee’s responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which it possesses under the Indenture.  The recitals contained herein and in the Offered Securities, except the certificate of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity

 

6

 

or sufficiency of this Fourth Supplemental Indenture or of the Offered Securities.  The Trustee shall not be accountable for the use or application by the Company of the Offered Securities or the proceeds thereof.  The Company hereby reaffirms its obligations under the Base Indenture to indemnify and hold harmless the Trustee as required under Article 7 of the Base Indenture, including under Section 7.06 of the Base Indenture. This indemnity shall survive the final payment in full of the Offered Securities and the resignation or removal of the Trustee solely to the extent expressly provided in Article 7 of the Base Indenture.

 

Section 2.03         Governing Law.  This Fourth Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York without regard to conflicts of laws principles that would require the application of any other law.

 

Section 2.04         Separability.  In case any provision in this Fourth Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 2.05         Counterparts.  This Fourth Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

 

Section 2.06         No Benefit.  Nothing in this Fourth Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors or assigns, and the Holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim under this Fourth Supplemental Indenture or the Base Indenture.

 

7

 

IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly executed all as of the day and year first above written.

 

 

	
 
    	
JOHNSON   CONTROLS INTERNATIONAL PLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Frank A. Voltolina
    
	
 
    	
Name:
    	
Frank   A. Voltolina
    
	
 
    	
Title:
    	
Vice   President and Corporate Treasurer
    

 

[Signature Page to Fourth Supplemental Indenture]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yvonne Siira
    
	
 
    	
Name:
    	
Yvonne   Siira
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Fourth Supplemental Indenture]

 

 

	
 
    	
ELAVON   FINANCIAL SERVICES DAC, UK BRANCH,
    
	
 
    	
as   Paying Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Leong
    
	
 
    	
Name:
    	
Michael   Leong
    
	
 
    	
Title:
    	
Authorised   Signatory
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chris Hobbs
    
	
 
    	
Name:
    	
Chris   Hobbs
    
	
 
    	
Title:
    	
Authorised   Signatory
    

 

[Signature Page to Fourth Supplemental Indenture]

 

 

EXHIBIT A
 FORM OF 0.000% SENIOR NOTES DUE 2020

 

THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE (AS DEFINED HEREIN) GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.05(C) OF THE BASE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.

 

 

0.000% SENIOR NOTES DUE 2020

 

	
No. [   ]
    	
€[      ]
    

Common Code 173161719

ISIN No. XS1731617194

CUSIP. 478375 AW8

 

JOHNSON CONTROLS INTERNATIONAL PLC

 

promises to pay to [USB Nominees (UK Limited)][   ] or registered assigns, the principal sum of [    ] Euros[, or such other sum as is set forth in the Schedule of Increases or Decreases of the Global Security attached hereto,] on December 4, 2020.

 

Interest Payment Date:  December 4 of each year

 

Regular Record Date:  November 19 of each year

 

Each Holder of this Note (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the Indenture described herein, and authorizes and directs the Trustee described herein on such Holder’s behalf to be bound by such provisions.  Each Holder of this Note hereby waives all notice of the acceptance of the provisions contained herein and in the Indenture and waives reliance by such Holder upon said provisions.

 

This Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose unless the Certificate of Authentication hereon shall have been duly executed by the Trustee or Authenticating Agent by manual or facsimile signature of an authorized signatory.  The provisions of this Note are continued on the reverse side hereof, and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of the Indenture.

 

Date:  [   ] [   ], 20[   ]

 

	
 
    	
JOHNSON   CONTROLS INTERNATIONAL PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities referred to in the within-mentioned Indenture.

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
[By:________________,
    
	
 
    	
as   Authenticating Agent]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dated:
    

 

 

JOHNSON CONTROLS INTERNATIONAL PLC

 

0.000% Senior Notes due 2020

 

This security is one of a duly authorized series of debt securities of Johnson Controls International plc, a public limited company organized under the laws of Ireland (the “Company”), issued or to be issued in one or more series under and pursuant to an Indenture for the Company’s debt securities, dated as of December 28, 2016 (the “Base Indenture”), duly executed and delivered by and among the Company and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by the Fourth Supplemental Indenture, dated as of December 4, 2017 (the “Fourth Supplemental Indenture” and, the Base Indenture as so supplemented, the “Indenture”), by and among the Company, the Trustee and Elavon Financial Services DAC, UK Branch, as paying agent (the “Paying Agent”).  By the terms of the Base Indenture, the Securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture.  This Security is one of the series designated on the face hereof (individually, a “Note,” and collectively, the “Notes”), and reference is hereby made to the Indenture for a description of the rights, limitations of rights, obligations, duties and immunities of the Trustee, the Company and the Holders of the Notes (the “Noteholders”).  Capitalized terms used herein and not otherwise defined shall have the meanings given them in the Base Indenture or the Fourth Supplemental Indenture, as applicable.

 

1.         Interest.  The Company promises to pay interest on the principal amount of this Note at an annual rate of 0.000%.  The Company will pay interest annually in arrears on December 4 of each year (each such day, an “Interest Payment Date”).  If any Interest Payment Date, redemption date or maturity date of this Note is not a Business Day, then payment of principal, premium, if any, or interest shall be made on the next Business Day with the same force and effect as if made on the nominal date such payment was due, and no interest shall accrue for the period after such nominal date to the date of such payment on the next Business Day.  Interest on the Notes will accrue from the most recent date to which interest has been paid or duly provided for (or December 4, 2017, if no interest has been paid).  Interest on the Notes will be calculated based on the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid (or December 4, 2017, if no interest has been paid), to but excluding the next scheduled Interest Payment Date (ACTUAL/ACTUAL (ICMA)).

 

2.             Method of Payment.  The Company will pay the interest installment on this Note that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for the Notes to the Person in whose name this Note (or one or more Predecessor Securities hereto) is registered at the close of business on the regular record date referred to on the facing page of this Note for such interest installment.  In the event that this Note or a portion thereof is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on this Note will be paid upon presentation and surrender of this Note as provided in the Indenture.  All payments of interest and principal, including payments made upon any redemption or repurchase of this Note, will be payable in Euros. If, on or after November 28, 2017, the Euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the control of the Company or if the Euro is no longer being used by the then member states of the European Monetary 

 

 

Union that have adopted the Euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in Dollars until the Euro is again available to the Company or so used. In such circumstances, the amount payable on any date in Euros will be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent Dollar/Euro exchange rate available on or prior to the second Business Day prior to the relevant payment date as determined by the Company in its sole discretion. Any payment in respect of the Notes so made in Dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

3.         Paying Agent, Transfer Agent and Security Registrar.  Initially, Elavon Financial Services DAC, UK Branch will act as paying agent, and the Trustee will act as transfer agent and Security Registrar.  The Company may change or appoint any paying agent, Security Registrar or transfer agent without prior notice to any Noteholder.  The Company or any of its subsidiaries may act as paying agent, transfer agent or Security Registrar in respect of any Notes.

 

4.         Indenture.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§77aaa-77bbbb), as in effect from time to time (the “Trust Indenture Act”).  The Notes are subject to all such terms, and Noteholders are referred to the Indenture and Trust Indenture Act for a statement of such terms.  The Notes are unsecured general obligations of the Company and constitute the series designated on the face hereof as the “0.000% Senior Notes due 2020”, initially limited to €750,000,000 in aggregate principal amount.

 

The Company will furnish to any Noteholder upon written request and without charge a copy of the Base Indenture and the Fourth Supplemental Indenture.  Requests may be made to: Johnson Controls International plc, One Albert Quay, Cork, Ireland.

 

5.         Optional Redemption.  The Notes will be subject to redemption in accordance with the terms of Section 1.02(8) of the Fourth Supplemental Indenture and Articles III and XIV of the Base Indenture.  If the giving of notice of redemption shall have been completed as provided in the Indenture, interest on such Notes or portions of Notes will cease to accrue on and after the date fixed for redemption, unless the Company defaults in the payment of the applicable redemption price and accrued interest (if any) with respect to any such Note or portion thereof.  The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

6.         Change of Control Triggering Event.  Upon the occurrence of a Change of Control Triggering Event with respect to the Notes, unless the Company has exercised its right to redeem the Notes by giving irrevocable notice on or prior to the 30th day after the Change of Control Triggering Event in accordance with the Indenture, each Holder of Notes will have the right to require the Company to purchase all or a portion of such Holder’s Notes pursuant to a Change of Control Offer in accordance with Section 4.08 of the Base Indenture.

 

 

7.         Denominations, Transfer, Exchange.  The Notes are in registered form without interest coupons in the denominations of €100,000 or any integral multiple of €1,000 in excess thereof.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  Subject to and in accordance with Section 2.05 of the Base Indenture, the Notes may be presented for exchange or for registration of transfer at the office of the Security Registrar or at the office of any transfer agent designated by the Company for such purpose.

 

8.         Persons Deemed Owners.  Prior to the due presentment for the registration of a transfer of any Note, the Company, the Trustee, any applicable paying agent, any transfer agent and any Security Registrar may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and neither the Company nor the Trustee nor any applicable paying agent, transfer agent or Security Registrar shall be affected by any notice to the contrary.

 

9.         [Reserved].

 

10.      [Reserved].

 

11.      Defaults and Remedies.  If an Event of Default shall have occurred and be continuing in respect of the Notes, in each and every such case, unless the principal of all the Notes shall have already become due and payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount of the Notes then Outstanding, by notice in writing to the Company, and to the Trustee if given by such Noteholders, may declare the Notes to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, notwithstanding anything contained in the Indenture or in the Notes to the contrary.

 

12.      Trustee, Paying Agent, Transfer Agent and Security Registrar May Hold Notes.  The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting interest, it must either eliminate such conflict within 90 days, apply to the Commission for permission to continue as Trustee or resign.  Any Authenticating Agent, paying agent, transfer agent or Security Registrar may do the same with like rights and duties.  The Trustee must also comply with Section 7.08 of the Base Indenture.

 

13.      No Recourse Against Others.  No recourse under or upon any obligation, covenant or agreement of the Indenture, or of any Note, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, shareholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor Person, either directly or through the Company or any such predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that the Indenture, the Notes and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or directors as such, of the Company or of any predecessor or successor Person, or any of them, because of the creation of the indebtedness authorized by the Indenture, or under or by reason of

 

 

the obligations, covenants or agreements contained in the Indenture or in any of the Notes or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, shareholder, officer or director as such, because of the creation of the indebtedness authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in any of the Notes or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of the Indenture and the issuance of the Notes.

 

14.      Discharge of Indenture.  The Indenture contains certain provisions pertaining to discharge and defeasance, which provisions shall for all purposes have the same effect as if set forth herein.

 

15.      Authentication.  This Note shall not be valid until the Trustee or Authenticating Agent signs the certificate of authentication attached to the other side of this Note.

 

16.      [Reserved].

 

17.      Additional Amounts.  The Company is obligated to pay Additional Amounts on this Note to the extent provided in Article XIV of the Indenture.

 

18.      Abbreviations.  Customary abbreviations may be used in the name of a Noteholder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

19.      Governing Law.  The Indenture and this Note shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York without regard to conflicts of laws principles that would require the application of any other law.

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

	
 
    
	
(Insert assignee’s soc. sec. or tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type assignee’s name, address and zip code)
    

 

and irrevocably appoint _________________________________________________________________
 agent to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Your   Signature:
    	
 
    
	
 
    	
 
    	
(Sign   exactly as your name appears on the face of this Note)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature   Guarantee:
    	
 
    	
 
    

 

 

SCHEDULE OF INCREASES OR DECREASES OF THE GLOBAL SECURITY

 

The initial outstanding principal amount of this Global Security is €[        ]. The following increases and decreases in this Global Security have been made:

 

	
Date of Exchange
    	
 
    	
Amount of decrease in
   Principal Amount of
   this Global Security
    	
 
    	
Amount of increase in
   Principal Amount of
   this Global Security
    	
 
    	
Principal Amount of
   this Global Security
   following such
   decrease
   (or increase)
    	
 
    	
Signature of authorized
   officer of Security
   Registrar or
   Trustee

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