Document:

Exhibit 10.1

 

RESIGNATION AGREEMENT AND GENERAL RELEASE

 

THIS RESIGNATION AGREEMENT
AND GENERAL RELEASE (the “Agreement”) is made and entered into as of this 3rd day of April, 2020 (the “Resignation
Date”) by and among Spirit AeroSystems, Inc. (the “Company”), Spirit AeroSystems Holdings, Inc., the parent
of the Company (the “Parent”), and John Gilson (the “Executive”).

 

FOR VALUABLE
CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                   
Resignation. Effective January 29, 2020, the Executive resigned from his position as Vice President of Finance
- Controller of the Company and from all other positions he holds as an officer or director of the Company or any of its subsidiaries
or as an officer of the Parent. No other action is required for these resignations to be effective.

 

2.                      
Consideration in Settlement. In consideration of (i) the release of all claims described below in Paragraph
3, (ii) the Covenant Not to Sue in Paragraph 4, (iii) the protective agreements described in Paragraphs 5 and 6, (iv) the agreement
of future cooperation in Paragraph 15 and (v) the other terms of this Agreement, the Company agrees to compensate the Executive
as follows (subject in all cases to Paragraph 2(g) of this Agreement):

 

(a)                 
Separation Payments. The Company shall pay the Executive the sum of $295,000 (the “Separation Payment”),
which is equivalent to one year of the Executive’s current annual base salary. The Separation Payment shall be payable in
four substantially equal installments, with the first such installment to be paid to the Executive within thirty (30) days after
the Resignation Date and the remaining three installments to be paid to Executive within thirty (30) days after the next after
each of the three (3), six (6) and nine (9) month anniversaries of the Resignation Date. For purposes of Section 409A of the Code,
each payment made under this Agreement will be treated as a separate payment. The Company and the Executive acknowledge and agree
that all payments constitute “wages” for purposes of FICA, FUTA and income tax withholding and such taxes, as well
as any other withholdings that are typically deducted from wages, shall be withheld as to any payments made under this Agreement.

 

(b)                 
The Company shall pay Executive a lump sum of $20,000 within 30 days of the Resignation Date to assist with the costs
associated with coverage under COBRA for continuation of benefits and medical and dental benefits for a period of twelve (12) months
after the Resignation date.

 

(c)                 
STIP Equivalent Award. The Executive shall be entitled to a payment that is equivalent to the amount that
would be payable based on actual achievement of performance with respect to 2019 under the short-term incentive program (“STIP”)
maintained pursuant to and in accordance with the Spirit AeroSystems Holdings, Inc. 2014 Omnibus Incentive Plan (the “OIP”)
based on an assumed performance at target levels (ie, a STIP score of not less than 1.0 for the Company and the Executive. Such
amount shall be paid to the Executive in cash at the time the annual award for 2019 under the STIP is otherwise paid to the Company’s
executive officers subject to any applicable deferral election procedures under the Company’s Amended and Restated Deferred
Compensation Plan.

 

(d)                  LTIP
Awards. The Company shall waive the requirement for the Executive to be employed by the Company with respect to the
February 2020 vesting of the Executive’s time/service based restricted stock awards (the “Specified Unvested
Award”) under the Spirit AeroSystems Holdings, Inc. Amended and Restated Long-Term Incentive Plan maintained
pursuant to and in accordance with the OIP. For the avoidance of doubt, (i) any other outstanding awards not expressly
identified herein that remain unvested on the Resignation Date shall be forfeited, (ii) the Specified Unvested Award shall
continue vesting in all respects as if Executive’s employment had not terminated, (iii) any restrictions on transfer or
other similar restrictions with respect to the Specified Unvested Award will continue to apply as if Executive’s
employment had not terminated, (iv) all other terms of the Specified Unvested Award will continue to apply, and (v) the
Company may withhold amount required for the payment of federal or state taxes from the Specified Unvested Amount at such
time and on such terms as it determines to be required or appropriate.

 

     

     

    

 

(e)                 
Waiver of Repayment Obligations. The Company agrees to waive any obligation of Executive to reimburse or repay
the Company for the following disbursements made to Executive under the Employment Agreement, entered into on the 8th
day of January, 2018 (the “Employment Agreement”), by and between the Company and Executive or any other agreement:

 

i.                    
Cash sign-on bonus paid pursuant to Section 3(b) of the Employment Agreement; and

ii.                    
 Retention bonus awarded October
2019.

 

(f)                  
Career Transition Services. Pay for reasonable and documented career transition services through July 31,
2020. In order to receive this benefit, you must contact Jay Hohl who will make arrangements for these services from a Spirit approved
vendor.

 

(g)                 
Other Continuing Rights. The Executive agrees that, except for his accrued base salary earned through the
Resignation Date, he has been paid all other compensation due to him, including but not limited to all salary, bonuses, deferred
compensation, incentives and all other compensation of any nature whatsoever. Except as set forth above, no other sums (contingent
or otherwise) shall be paid to the Executive in respect of his employment by the Company or the Parent, and any such sums (whether
or not owed) are hereby expressly waived by the Executive. The foregoing notwithstanding, following the Resignation Date, the Executive
shall be entitled to receive his account balance and accrued benefit, as applicable, under the Parent’s Retirement and Savings
Plan in accordance with the terms of such plan.

 

(h)                 
Contingent Entitlement. The Executive acknowledges that his entitlement to payments and/or vesting under Paragraph
2(a) through (d) shall be conditioned on his continuing compliance with Paragraphs 3, 4, 5, 6, 10(c) and 15 of the Agreement. The
Executive’s violation of any obligation within Paragraphs 3, 4, 5, 6, 10(c) or 15 shall terminate the Company’s obligation
to continue to make payments and to continue vesting of awards in accordance with Paragraph 2(a) through (d). The Executive acknowledges
that amounts paid under this Agreement, the OIP or the other Benefit Plans are subject to any applicable Company policy on the
recovery of compensation (i.e., a so-called “clawback policy”).

 

     

     

    

 

(3)                General
Release. As a material inducement to the Company and the Parent to enter into this Agreement and in consideration of the
payments to be made by the Company and the Parent to the Executive in accordance with Paragraph 2 above, the Executive, on
behalf of himself, his representatives, agents, estate, heirs, successors and assigns, and with full understanding of the
contents and legal effect of this Agreement and having the right and opportunity to consult with his counsel, releases and
discharges the Company, the Parent, and their respective shareholders, officers, directors, supervisors, members, managers,
employees, agents, representatives, attorneys, insurers, parent companies, divisions, subsidiaries, affiliates and all
employee benefit plans sponsored or contributed to by the Company or the Parent (including any fiduciaries thereof), and all
related entities of any kind or nature, and its and their predecessors, successors, heirs, executors, administrators, and
assigns (collectively, the “Released Parties”) from any and all claims, actions, causes of action,
grievances, suits, charges, or complaints of any kind or nature whatsoever, that he ever had or now has (through the
Resignation Date), whether fixed or contingent, liquidated or unliquidated, known or unknown, suspected or unsuspected, and
whether arising in tort, contract, statute, or equity, before any federal, state, local, or private court, agency,
arbitrator, mediator, or other entity, regardless of the relief or remedy; provided, however, and subject to Paragraph 4
below, the Agreement is not intended to and does not limit the Executive’s right to file a charge or participate in an
investigative proceeding of the EEOC or another governmental agency. Without limiting the generality of the foregoing, it
being the intention of the parties to make this release as broad and as general as the law permits, this release specifically
includes, but is not limited to, and is intended to explicitly release, any claims under the Employment Agreement; any and
all subject matter and claims arising from any alleged violation by the Released Parties under the Fair Labor Standards Act;
Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as amended by the Civil Rights Act of
1991 (42 U.S.C. § 1981); the Rehabilitation Act of 1973, as amended; the Employee Retirement Income Security Act of
1974, as amended (whether such subject matter or claims are brought on an individual basis, a class representative basis, or
otherwise on behalf of an employee benefit plan or trust); the Kansas Act Against Discrimination, the Kansas Age
Discrimination in Employment Act, the Kansas wage payment statutes, and other similar state or local laws; the Americans with
Disabilities Act; the Family and Medical Leave Act; the Genetic Information Nondiscrimination Act of 2008; the Worker
Adjustment and Retraining Notification Act; the Equal Pay Act; Executive Order 11246; Executive Order 11141; and any other
statutory claim, tort claim, employment or other contract or implied contract claim, or common law claim for wrongful
discharge, breach of an implied covenant of good faith and fair dealing, defamation, invasion of privacy, or any other claim,
arising out of or involving his employment with the Company, the termination of his employment with the Company, or involving
any other matter, including but not limited to the continuing effects of his employment with the Company or termination of
employment with the Company.

 

The Executive further acknowledges that he is aware that statutes
exist that render null and void releases and discharges of any claims, rights, demands, liabilities, action and causes of action
which are unknown to the releasing or discharging party at the time of execution of the release and discharge. The Executive hereby
expressly waives, surrenders and agrees to forego any protection to which he would otherwise be entitled by virtue of the existence
of any such statute in any jurisdiction including, but not limited to, the State of Kansas. The foregoing notwithstanding, the
Company and the Parent hereby acknowledge and agree
that the foregoing release shall not apply with respect to the Executive’s right (i) to enforce the terms of this Agreement
and (ii) to the maximum extent permitted by law, to indemnification as an officer and director of the Company and the Parent in
accordance with the Company’s and the Parent’s certificate of incorporation and bylaws and the terms of any indemnification
agreement with the Parent and/or the Company to which the Executive is a party as of the date hereof, and to continued coverage
under the Company’s and its Parent’s Directors and Officers liability insurance policies as in effect from time to
time and (iii) to benefits under the terms of any employment benefit plan in which he participated while employed by the Company
and to continuation of benefits under COBRA.

 

(4)               
Covenant Not to Sue. The Executive, for himself, his heirs, executors, administrators, successors and assigns agrees
not to bring, file, claim, sue or cause, assist, or permit to be brought, filed, or claimed any action, cause of action, or proceeding
regarding or in any way related to any of the claims described in Paragraph 3 above, and further agrees that this Agreement will
constitute and may be pleaded as, a bar to any such claim, action, cause of action or proceeding. If the Executive files a charge
or participates in an investigative proceeding of the EEOC or another governmental agency, or is otherwise made a party to any
proceedings described in Paragraph 4 above, the Executive will not seek and will not accept any personal equitable or monetary
relief in connection with such charge or investigative or other proceeding.

 

     

     

    

 

(5)               
No Disparaging, Untrue Or Misleading Statements. Executive represents that he has not made, and agrees that he will
not make, to any third party any disparaging, untrue, or misleading written or oral statements about or relating to the Company,
or its products or services (or about or relating to any officer, director, agent, employee, or other person acting on the Company’s
behalf). The Company agrees to use reasonable efforts to ensure that its “named executive officers”, as such term
is defined under Item 402 of Regulation S-K promulgated by the Securities and Exchange Commission will not make, to any third
party any disparaging, untrue, or misleading written or oral statements about or relating to you. The foregoing provision shall
not be effective with respect to any information required to be disclosed by the Executive, Company or named executive officers
by the order of a court or administrative agency, subpoena or other legal or administrative demand.

 

(6)               Protective
Agreement. The Executive acknowledges and agrees that he shall continue to be bound by the terms and conditions of Paragraph
4 of the Employment Agreement, the terms of which are incorporated herein by reference; provided, that the parties agree that
the noncompetition and non- solicitation periods as set forth under Paragraphs 4(c) and (d) of the Employment Agreement shall
be applicable.

 

(7)               
Permitted Activities. Notwithstanding any other provision of this Agreement or the Employment Agreement, nothing
in this Agreement is intended to, or does, preclude you from (i) contacting, reporting to, responding to an inquiry from, filing
a charge or complaint with, communicating with, or otherwise participating in an investigation conducted by, the Equal Employment
Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission, or any other federal, state, or local governmental agency, commission, or regulatory body;
(ii) giving truthful testimony or making statements under oath in response to a subpoena or other valid legal process or in any
legal proceeding; (iii) otherwise making truthful statements as required by law or valid legal process; (iv) engaging in any concerted
or other legally protected activities; or (v) disclosing a trade secret in confidence to a governmental official, directly or indirectly,
or to an attorney, if the disclosure is made solely for the purpose of reporting or investigating a suspected violation of law.

 

Furthermore,
notwithstanding the provisions herein, you understand that you will not be held criminally or civilly liable under any
federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal,
state, or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of
reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal. You likewise understand that, if you file a lawsuit for retaliation
by the Company for reporting a suspected violation of law, you may disclose the Company’s trade secret(s) to your
attorney and use the trade secret information in the court proceeding, if you (i) file any document containing the trade
secret under seal; and (ii) do not disclose the trade secret, except pursuant to court order.

 

(8)               
Severability. If any provision of this Agreement shall be found by a court of competent jurisdiction to be invalid
or unenforceable, in whole or in part, then such provision shall be construed and/or modified or restricted to the extent and in
the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may
require, and this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision had been
originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein,
as the case may be. The parties further agree to seek a lawful substitute for any provision found to be unlawful; provided, that,
if the parties are unable to agree upon a lawful substitute, the parties desire and request that a court or other authority called
upon to decide the enforceability of this Agreement modify the Agreement so that, once modified, the Agreement will be enforceable
to the maximum extent permitted by the law in existence at the time of the requested enforcement.

 

     

     

    

 

(9)               
Waiver. A waiver by either party of a breach of any provision of this Agreement shall not operate or be construed
as a waiver or estoppel of any subsequent breach by any other party. No waiver shall be valid unless in writing and signed by an
authorized officer of the Company or the Executive.

 

 (10)               
 Miscellaneous Provisions.

 

a.                  
The parties explicitly acknowledge their obligation of good faith and fair dealing in the execution of the terms of this
Agreement.

 

b.                  
Representation. The Executive represents and certifies that he has carefully read and fully understands all of the
provisions and effects of this Agreement, has knowingly and voluntarily entered into this Agreement freely and without coercion,
and acknowledges that the Company advised him to consult with an attorney prior to executing this Agreement. The Executive is voluntarily
entering into this Agreement and neither the Company nor its employees, officers, directors, representatives, attorneys or other
agents made any representations concerning the terms or effects of this Agreement other than those contained in the Agreement itself
and the Executive is not relying on any statement or representation by the Company or any other Released Parties in executing this
Agreement. The Executive is relying on his own judgment and that of his attorney to the extent so retained. The Executive also
specifically affirms that this Agreement clearly expresses his intent to waive fraudulent inducement claims, and that he disclaims
any reliance on representations about any of the specific matters in dispute.

 

c.                  
Return of Property. On or before the signing of this Agreement, the Executive shall return to the Company all of
the Company’s and the Parent’s and their respective subsidiaries property that is in the Executive’s possession,
custody or control, including, without limitation, (a) all keys, access cards, badges, credit cards, mobile devices, computer hardware,
computer software, data, materials, documents, records, policies, client and customer information, marketing information, design
information, specifications and plans, data base information and lists, and any other property or information of the Company, the
Parent and their subsidiaries (whether those materials are in paper or computer-stored form), and (b) all documents and other property
containing, summarizing, or describing any Confidential Information (as defined in the Employment Agreement), including all originals
and copies, except for property which the Company may otherwise agree in writing that the Executive may retain in order to perform
the transition services hereunder or otherwise. The Executive affirms that he will not retain any such property or information
in any form (except as permitted in accordance with the preceding sentence), and will not give copies of such property or information
or disclose their contents to any other person.

 

(11)             Complete
Agreement. This Agreement sets forth the entire agreement between the parties, and fully supersedes any and all prior
agreements or understandings, whether oral or written, between the parties pertaining to actual or potential claims arising
from the Executive’s employment with the Company and the Parent or the termination of the Employment Agreement and the
Parent, provided, however, that the parties acknowledge and agree that the Employment Agreement shall continue in effect
until the Resignation Date; and provided, further, that all obligations and rights arising under Paragraph 4 of the
Employment Agreement, which are incorporated by reference herein, shall not be superseded and shall remain in full force and
effect. The Company’s payment obligations under this Agreement shall become effective on the Resignation Date,
contingent upon the Executive’s compliance with his obligations hereunder. Effective as of the end of the day on the
Resignation Date, the Employment Agreement shall terminate. The Executive expressly warrants and represents that no promise
or agreement which is not herein expressed has been made to him in executing this Agreement. The Executive further expressly
represents and warrants that he will not hereafter seek reinstatement, recall or re- employment with the Company, the Parent
or any of their respective subsidiaries or affiliates.

 

     

     

    

 

(12)            
No Pending or Future Lawsuits. The Executive represents that he has no lawsuits, claims or actions pending in his
name, or on behalf of any other person or entity, against the Company or any of the Released Parties. The Executive also represents
that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or
any of the Released Parties.

 

(13)            
No Admission of Liability. The Executive understands and acknowledges that this Agreement constitutes a compromise
and settlement of any and all actual or potential disputed claims by the Executive. No action taken by the Company hereto, nor
by the Executive, either previously or in connection with this Agreement, shall be deemed or construed to be (a) an admission of
the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company or the Executive of
any fault or liability whatsoever to the other party or any third party.

 

(14)            
Reimbursement. If the Executive or his heirs, executors, administrators, successors or assigns (a) is in breach of
or breaches Paragraphs 3, 4, 5, 6, 10(c) or 15 of this Agreement, (b) attempts to challenge the enforceability of this Agreement,
or (c) files a charge of discrimination, a lawsuit of any kind or nature against one or more of the Released Parties, or a claim
of any kind or nature against one or more of the Released Parties, the Executive or his heirs, executors, administrators, successors
or assigns shall be obligated to tender back to the Company, as a contractual remedy hereunder, all payments made to him or them
under Paragraph 2 of this Agreement, including, for avoidance of doubt, any payments resulting from the vesting of Specified Unvested
Awards following the Resignation Date, or any amount of actual damages proven by the Company, if greater. Further, the Executive
shall indemnify and hold harmless the Company, its shareholders, employees, officers, directors and other agents from and against
all claims, damages, demands, judgments, losses, costs and expenses, including attorneys’ fees, or other liabilities of any
kind or nature arising out of said breach, challenge or action by the Executive, his heirs, executors, administrators, successors
or assigns. The Company and the Executive acknowledge that the remedy set forth hereunder is not to be considered a form of liquidated
damages and the tender back shall not be the exclusive remedy hereunder.

 

(15)            
Future Cooperation. Upon request, Executive agrees to provide assistance and cooperation, without the necessity of
subpoena, in any matter or matters (including but not limited to any regulatory, law enforcement or judicial investigations or
proceedings, mediations, arbitrations or lawsuits, any claim negotiations with customers or suppliers, or otherwise) of which the
Company identifies Executive as potentially having knowledge (or otherwise relating to Executive’s expertise or experience),
where deemed appropriate by the Company, including providing information, consulting, training, preparing for, and/or attending
any hearing or proceeding (whether relating to the Company’s defense or prosecution of any existing or future actions, arbitrations,
claims or litigations or otherwise). The Company will reimburse Executive for the reasonable costs and expenses in connection therewith,
provided however that such payments (i) are not intended to influence in any way the testimony Executive gives under oath, and
Executive agrees to testify truthfully and (ii) do not encompass attorney’s fees incurred by Executive. The Company’s
agreement to reimburse Executive through this Agreement is not based, conditioned or contingent in any way on the substance, content
or efficacy of Executive’s testimony, or the outcome of any particular matter.

 

(16)            
Amendment. This Agreement may not be altered, amended, or modified except in writing signed by both the Executive
and the Company.

 

(17)             Joint
Participation. The parties hereto participated jointly in the negotiation and preparation of this Agreement, and each
party has had the opportunity to obtain the advice of legal counsel and to review and comment upon the Agreement.
Accordingly, it is agreed that no rule of construction shall apply against any party or in favor of any party. This Agreement
shall be construed as if the parties jointly prepared this Agreement, and any uncertainty or ambiguity shall not be
interpreted against one party and in favor of the other.

 

     

     

    

 

(18)            
Applicable Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Kansas,
and any court action commenced to enforce this Agreement shall have as its sole and exclusive venue the County of Sedgwick, Kansas.
In addition, the Executive and the Company waive any right he or it may otherwise have to a trial by jury in any action to enforce
the terms of this Agreement.

 

(19)            
Execution of Agreement. This Agreement may be executed in counterparts, each of which shall be considered an original,
but which when taken together, shall constitute one Agreement. This Agreement, to the extent signed and delivered by means of a
facsimile machine or by PDF file (portable document format file), shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as if it were the originally signed version delivered
in person. At the request of any party hereto, each other party shall re-execute original forms hereof and deliver them to all
other parties.

 

PLEASE READ THIS AGREEMENT
AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS,
INCLUDING THOSE UNDER THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT, AND OTHER FEDERAL, STATE AND LOCAL LAWS PROHIBITING DISCRIMINATION
IN EMPLOYMENT.

 

IN WITNESS WHEREOF, the Executive,
the Company and the Parent have voluntarily signed this Resignation Agreement and General Release consisting of eight (8) pages
effective as of the first date set forth above.

 

	SPIRIT
    AEROSYSTEMS, INC.	 	JOHN
    GILSON
	 	 	 
	/s/
    Samantha J. Marnick	 	/s/
    John Gilson
	 	 	 
	By: 	Samantha J. Marnick	 	 
	 	 	 
	Its: 	EVP, CAO & Strategy	 	 
	 	 	 
	SPIRIT
    AEROSYSTEMS HOLDINGS, INC.	 	 
	 	 	 
	/s/
    Samantha J. Marnick	 	 
	 	 	 
	By: 	Samantha J. Marnick	 	 
	 	 	 
	Its: 	EVP, CAO & StrategyEXHIBIT 10.1

EXHIBIT 10.1

SEVENTH AMENDMENT TO LOAN AGREEMENT AND
FORBEARANCE AGREEMENT

 

This SEVENTH AMENDMENT TO LOAN AGREEMENT AND FORBEARANCE AGREEMENT this "Agreement"), with an effective date as of March 13, 2020, is entered into on April 6, 2020 by and among SCHOOL SPECIALTY, INC., a Delaware corporation ("Borrower"), each Guarantor (as defined in the Loan Agreement) party hereto, the Lenders identified on the signature pages hereof and TCW ASSET MANAGEMENT COMPANY LLC, as agent for the Lenders ("Agent").

R E C I T A L S:

WHEREAS, Borrower, the Guarantors from time to time party thereto, Agent, and the Lenders from time to time party thereto are parties to that certain Loan Agreement dated as of April 7, 2017 (as amended, restated, modified or supplemented from time to time, including as amended by that certain Fifth Amendment to Loan Agreement and Forbearance Agreement and that certain Sixth Amendment to Loan Agreement and Forbearance Agreement, the "Loan Agreement");

WHEREAS, as of the date hereof, multiple Events of Default under the Loan Agreement and the other Loan Documents have occurred and are continuing;

WHEREAS, Obligors have requested that, subject to the terms and conditions of this Agreement, Agent and Lenders agree to amend the Loan Agreement in certain respects and continue forbearing from exercising their rights as a result of such Events of Default, which are continuing; and

WHEREAS, Agent and Lenders are willing to agree to amend the Loan Agreement in certain respects and continue forbearing from exercising certain of their rights and remedies, solely for the period and on the terms and conditions specified herein.

NOW, THEREFORE, in consideration of the foregoing, and the respective agreements, warranties and covenants contained herein, the parties hereto agree as follows:

Section 1.DEFINITIONS 

1.1.Interpretation.  All capitalized terms used herein (including the recitals hereto) will have the respective meanings ascribed thereto in the Loan Agreement (as amended hereby) unless otherwise defined herein.  The foregoing recitals, together with all exhibits attached hereto, are incorporated by this reference and made a part of this Agreement.  Unless otherwise provided herein, all section and exhibit references herein are to the corresponding sections and exhibits of this Agreement. 

1.2.Additional Definitions.  As used herein, the following terms will have the respective meanings given to them below: 

 

(a)"Existing Defaults" means, collectively, the Events of Default identified as Existing Defaults on Exhibit A. 

(b)"Forbearance Period" means the period commencing on the date hereof and ending on the date which is the earliest of (i) the Outside Date; (ii) at the election of Agent and upon written notice, the occurrence or existence of any Event of Default, other than the Existing Defaults; (iii) the expiration or termination of the "Forbearance Period" under and as defined in the Revolving Loan Forbearance Agreement (defined below) or (iv) the occurrence of any Termination Event.   

(c)"Termination Event" means (i) the initiation of any action by Borrower, any Guarantor, any Obligor or any Releasing Party (as defined herein) to invalidate or limit the enforceability of any of the acknowledgments set forth in Section 2, the release set forth in Section 7.6 or the covenant not to sue set forth in Section 7.7 or (ii) the occurrence of an Event of Default under Section 11.1(j) of the Loan Agreement  

Section 2.ACKNOWLEDGMENTS 

2.1.Acknowledgment of Obligations.  Each Obligor hereby acknowledges, confirms and agrees that, as of the close of business on April 3, 2020, after giving effect to the payment in kind of the Third Amendment Fee (as defined in the Fee Letter), the payment in kind of the Fifth Amendment Restructuring Fee (as defined in the Fifth Amendment Fee Letter) and the payment in kind of any Prepetition Debt Accommodation Fee (as defined in the Fifth Amendment Fee Letter) made on or prior to April 3, 2020 pursuant to the terms of the Fifth Amendment Fee Letter, Borrower will be indebted to Lenders in respect of the Loans in an aggregate principal amount of $111,528,707.96.  Each Obligor hereby acknowledges, confirms and agrees that all such Loans, together with interest accrued and accruing thereon, and all fees, costs, expenses, charges and other Obligations now or hereafter payable by any Obligor to the Secured Parties, are unconditionally owing by Obligors to the Secured Parties, without offset, defense or counterclaim of any kind, nature or description whatsoever.  

2.2.Acknowledgment of Security Interests.  Each Obligor hereby acknowledges, confirms and agrees that Agent has, and will continue to have, valid, enforceable and perfected first-priority continuing liens upon and security interests in the Collateral heretofore granted to Agent, for the benefit of the Secured Parties, pursuant to the Loan Agreement and the Loan Documents or otherwise granted to or held by Agent, for the benefit of Secured Parties, subject only to the Intercreditor Agreement and Permitted Liens that are expressly allowed to have priority over Agent's Liens. 

2.3.Binding Effect of Documents.  Each Obligor hereby acknowledges, confirms and agrees that: (a) this Agreement constitutes a Loan Document, (b) each of the Loan Agreement and the other Loan Documents to which it is a party has been duly executed and delivered to Agent by such Obligor, and each is and will remain in full force and effect as of the date hereof except as modified pursuant hereto, (c) the agreements and obligations of such Obligor contained in such documents and in this Agreement constitute the legal, valid and binding Obligations of such Obligor, enforceable against it in accordance with their respective terms, and such Obligor has no valid defense to the enforcement of such Obligations, (d) Agent and Lenders are and will be entitled to the rights, remedies and benefits provided for under the Loan Agreement and the other Loan Documents  

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and applicable law and (e) each Obligor shall comply with all limitations, restrictions or prohibitions that would otherwise be effective or applicable under the Loan Agreement or any of the other Loan Documents during the continuance of any Event of Default, and except to the extent expressly provided otherwise in this Agreement, any right or action of any Obligor set forth in the Loan Agreement or the other Loan Documents that is conditioned on the absence of any Event of Default may not be exercised or taken as a result of the Existing Defaults.

2.4.Acknowledgment of Interest and Fees.  Each Obligor hereby acknowledges, confirms and agrees that, (a) as a result of the existence of the Existing Defaults, pursuant to Section 3.1.3 of the Loan Agreement, as of the Fifth Amendment Effective Date, Required Lenders elected to implement the Default Rate with respect to the Loans and other Obligations, (b) notwithstanding the Forbearance Period, from and after the Fifth Amendment Effective Date, the Loans and other Obligations have borne, and shall continue to bear, interest at the Default Rate, (c) as a result of the existence of the Existing Defaults, pursuant to Section 3.1.3 of the Loan Agreement, Required Lenders elected, and continue to elect, that the LIBOR Rate Loans be converted into Prime Rate Loans and that the LIBOR election will not be available to Borrower, (d) notwithstanding the Forbearance Period, from and after the Fifth Amendment Effective Date, (x) as the Interest Periods for LIBOR Loans in effect as of the Fifth Amendment Effective Date expire, such Loans will be converted into Prime Rate Loans and (y) the LIBOR election will not be available to Borrower, (e) the Third Amendment Fee (as defined in the Fee Letter) in the amount of $2,218,998.38 was fully earned on the Third Amendment Effective Date and notwithstanding anything to the contrary set forth in the Fee Letter or any other Loan Document, was due and payable in kind on the Fifth Amendment Effective Date, (f) such Third Amendment Fee was paid in kind and added to the outstanding principal balance of the Term Loan on the Fifth Amendment Effective Date and, from and after such payment in kind, was and will continue to be treated as the principal amount of the Term Loan for all purposes of the Loan Agreement and the other Loan Documents, (g) the Fifth Amendment Restructuring Fee (as defined in the Fifth Amendment Fee Letter) in the amount of $1,250,000 was fully earned on the Fifth Amendment Effective Date and was due and payable in kind on the Fifth Amendment Effective Date, (h) such Fifth Amendment Restructuring Fee was paid in kind and added to the outstanding principal balance of the Term Loan on the Fifth Amendment Effective Date and, from and after such payment in kind, was and will continue to be treated as the principal amount of the Term A Loan for all purposes of the Loan Agreement and the other Loan Documents, (i) the Fifth Amendment Closing Fee (as defined in the Fifth Amendment Fee Letter) in the amount of $6,000,000 was fully earned on the Fifth Amendment Effective Date, and (j) all fees and other consideration payable to Agent and Lenders pursuant to Section 7.2 of this Agreement, the Loan Agreement, the Fee Letter, the Fifth Amendment Fee Letter and the other Loan Documents are fair and reasonable under the circumstances and have been agreed to by Borrower in exchange for reasonably equivalent value in the form of the amendments and forbearance agreed to by Agent and Lenders pursuant to the terms of this Agreement.    

Section 3.FORBEARANCE IN RESPECT OF EXISTING DEFAULTs 

3.1.Acknowledgment of Default.  Each Obligor hereby acknowledges and agrees that the Existing Defaults have occurred and are continuing, each of which constitutes an Event of Default and entitles Agent and Lenders to exercise their rights and remedies under the Loan Agreement and the other Loan Documents, applicable law or otherwise.  Each Obligor represents and warrants that as of the date hereof, no Events of Default exist other than the Existing Defaults.   

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Each Obligor hereby acknowledges and agrees that Agent and Lenders have the exercisable right to declare the Obligations to be immediately due and payable under the terms of the Loan Agreement and the other Loan Documents.  Each Obligor hereby acknowledges and agrees that the Existing Defaults shall be deemed to exist at all times during the period commencing on the date that such Existing Default first occurred (or occurs) to the date on which such Existing Default is expressly waived in writing pursuant to the Loan Agreement; and an Existing Default shall "continue" or be "continuing" until such Existing Default has been expressly waived in writing by the requisite Lenders under and in accordance with the terms of the Loan Agreement.

3.2.Forbearance. 

(a)In reliance upon the representations, warranties and covenants of Obligors contained in this Agreement, and subject to the terms and conditions of this Agreement and any documents or instruments executed in connection herewith, Agent and Lenders agree to forbear during the Forbearance Period from exercising their rights and remedies described in Section 11.2 of the Loan Agreement or Section 13 of the Guarantee and Collateral Agreement in respect of the Existing Defaults; provided, however, notwithstanding the foregoing, any limitations, restrictions or prohibitions on the rights of Agent or Lenders set forth in any other section of the Loan Agreement that are conditioned on the absence of an Event of Default will continue to not be applicable to Agent and the Lenders as a result of the Existing Defaults. 

(b)Upon the expiration or termination of the Forbearance Period, the agreement of Agent and Lenders to forbear will automatically and without further action terminate and be of no force and effect, it being expressly agreed that the effect of such termination will be to permit Agent and Lenders to exercise immediately all rights and remedies under the Loan Agreement and the other Loan Documents and applicable law, including, but not limited to, accelerating all of the Obligations under the Loan Agreement and the other Loan Documents, in all events, without any further notice to any Obligor, passage of time or forbearance of any kind. 

3.3.No Waivers; Reservation of Rights. 

(a)Agent and Lenders have not waived, are not by this Agreement waiving, and have no intention of waiving, any Events of Default which may be continuing on the date hereof or any Events of Default which may occur after the date hereof (whether the same or similar to the Existing Defaults or otherwise), and Agent and Lenders have not agreed to forbear with respect to any of their rights or remedies concerning any Events of Default (other than, during the Forbearance Period, the Existing Defaults to the extent expressly set forth herein) occurring at any time. 

(b)Subject to Section 3.2 above (solely with respect to the Existing Defaults), Agent and Lenders reserve the right, in their discretion, to exercise any or all of their rights and remedies under the Loan Agreement and the other Loan Documents as a result of any other Events of Default occurring at any time.  Agent and Lenders have not waived any of such rights or remedies, and nothing in this Agreement, and no delay on their part in exercising any such rights or remedies, may or will be construed as a waiver of any such rights or remedies. 

3.4.Additional Events of Default.  The parties hereto acknowledge, confirm and agree that any misrepresentation by any Obligor, or any failure of any Obligor to comply with the  

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covenants, conditions and agreements contained in this Agreement, the Loan Agreement or any other Loan Document or in any other agreement, document or instrument at any time executed or delivered by any Obligor with, to or in favor of Agent or any Lenders will constitute an immediate Event of Default under this Agreement, the Loan Agreement and the other Loan Documents.  In the event that any Person, other than Agent or Lenders, will at any time exercises for any reason (including, without limitation, by reason of any Existing Default, any other present or future Event of Default, or otherwise) any of its rights or remedies against any Obligor or any obligor providing credit support for any Obligor's obligations to such other Person, or against any Obligor's or such obligor's properties or assets, such event will constitute an immediate Event of Default hereunder and an Event of Default under the Loan Agreement and the other Loan Documents (without any notice or grace or cure period).

Section 4.AMENDMENTS TO LOAN AGREEMENT 

In reliance upon the representations and warranties of Obligors set forth in Section 5 below and subject to the conditions to effectiveness set forth in Section 6 below, the Loan Agreement is hereby amended as follows: 

4.1.The defined term "Default Rate" set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows: 

Default Rate:  for any Obligation (including, to the extent permitted by law, interest not paid when due), 2.00% plus the interest rate otherwise applicable thereto.  Notwithstanding the foregoing, (x) during the period commencing on the Fifth Amendment Effective Date and ending immediately prior to the Seventh Amendment Effective Date, the Default Rate shall be increased by an amount equal to 1.00% per annum and (y) at all times on and after the Seventh Amendment Effective Date, the Default Rate shall be increased by an amount equal to 3.00% per annum, with 100% of such applicable increase being paid in kind by adding such interest to the outstanding principal amount of the Term Loan ("Default PIK Interest").

4.2.The defined term "Forbearance Period" set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows: 

Forbearance Period:  shall have the meaning set forth in the Seventh Amendment.

4.3.The defined term "Outside Date" set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows: 

Outside Date:  April 30, 2020, or such other date as may be extended pursuant to the Restructuring Support Agreement.

4.4.The defined term "Third Lien Effective Date" set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows: 

Third Lien Effective Date:  January 6, 2020.

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4.5.Section 1.1 of the Loan Agreement is hereby amended by deleting the defined terms "Acceptable IOI", "Acceptable Term Sheet", "Acceptable Transaction", "Purchase Documentation Mark-up", "Revised Bid" and "Signed Purchase Documentation" in their entirety. 

4.6.Section 1.1 of the Loan Agreement is hereby amended by adding the following defined terms in their proper alphabetical order: 

Restructuring Support Agreement:  shall have the meaning set forth in Section 10.1.19(b).

Seventh Amendment: that certain Seventh Amendment to Loan Agreement and Forbearance Agreement, with an effective date as of the Seventh Amendment Effective Date, among Borrower, the Guarantors party thereto, Agent and the Lenders party thereto.

Seventh Amendment Effective Date:  March 13, 2020.

4.7.Section 2.1.2 of the Loan Agreement is hereby amended and restated in its entirety as follows: 

2.1.2.Scheduled Term Loan Payments.  The principal amount of the Term Loan shall be paid in installments (all such installment payments, collectively, the "Scheduled Term Loan Installment Payments") on (x) on June 30, 2020, in an amount equal to $3,100,000 and (y) on September 30, 2020, in an amount equal to $1,550,000.  Notwithstanding the foregoing, the outstanding principal amount of the Term Loan, together with all accrued and unpaid interest thereon and all other Obligations accrued and unpaid, shall be due and payable on the Maturity Date.  Notwithstanding the foregoing, the Loans shall be subject to earlier repayment upon (x) acceleration upon the occurrence of an Event of Default under this Agreement or (y) termination of this Agreement. 

4.8.Section 3.1.2 of the Loan Agreement is hereby amended by inserting the following sentence at end thereof: 

Notwithstanding anything contained in this Section 3.1.2 to the contrary, any interest due and payable in cash on March 31, 2020 shall instead be payable in cash on June 30, 2020, with the amount due and owing on June 30, 2020 calculated on the basis of a 360-day year for the actual number of days elapsed since the last date of payment.

4.9.Section 10.1.17 of the Loan Agreement is hereby amended and restated in its entirety as follows: 

10.1.17[Intentionally Reserved]. 

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4.10.Section 10.1.19(a) of the Loan Agreement is hereby amended and restated in its entirety as follows: 

(a)From and after the Seventh Amendment Effective Date, diligently pursue delivery of the Restructuring Support Agreement, and at all times after delivery thereof, diligently pursue consummation of the transactions set forth therein in accordance with for the terms thereof (collectively, the "Specified Transactions"). 

4.11.Section 10.1.19(b) of the Loan Agreement is hereby amended and restated in its entirety as follows: 

(b)Satisfy each of following covenants on or before the applicable dates specified below, each of which may be extended by Agent in writing in its sole direction unless otherwise expressly set forth below: 

(i)  On or before April 30, 2020, Obligors shall deliver to Agent a fully executed restructuring support agreement in form and substance satisfactory to Agent and the Required Lenders, which shall include, among other things, milestones in connection with a potential restructuring or sale transaction of the Borrower and an agreement among Agent, the Lenders and the Borrower regarding the terms, scope, and fees to be incurred in connection with the consummation of the transactions contemplated thereunder (the "Restructuring Support Agreement"); and

(ii)  [Reserved].

4.12.Clause (ii) of Section 10.1.19(e) of the Loan Agreement is hereby amended and restated in its entirety as follows: 

(ii)promptly (and in any event within two (2) Business Days) provide Agent and its attorneys, representatives, consultants (including Agent Consultant), agents and advisors with notice of (A) any material notice of any kind, whether oral or written, relating to a Specified Transaction or a Specified Unsecured Prepetition Debt Satisfaction Event, and (B) any knowledge of (x) any material change or development relating to the Specified Covenants, a Specified Transaction or a Specified Unsecured Prepetition Debt Satisfaction Event, or (y) any material changes in the financial, collateral or operational condition, businesses, assets, liabilities or prospects of any Obligors or any of its Subsidiaries; 

4.13.Clause (iv) of Section 10.1.19(e) of the Loan Agreement is hereby amended and restated in its entirety as follows: 

(iv)continue to actively negotiate in good faith with all viable and active potential purchasers in connection with a Specified Transaction or a Specified Unsecured Prepetition Debt Satisfaction Event or any of their attorneys, advisors, consultants, directors, officers, executives or agents, and will promptly notify  

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Agent if any such negotiations cease or are suspended by Obligors or any such prospective purchaser;

4.14.Section 10.3.3 of the Loan Agreement is hereby amended by replacing the reference to "March 31, 2020" set forth therein with a reference to "March 28, 2020". 

4.15.Section 11.1 of the Loan Agreement is hereby amended by (i) replacing the reference to "; or" set forth in clause (k) therein with a reference to ";", (ii) replacing the reference to "." set forth in clause (l) therein with a reference to "; or", and (iii) adding a new clause (m) as follows: 

(m) the termination of the Restructuring Support Agreement or the occurrence of a "Termination Event" (or similarly defined term) under the Restructuring Support Agreement.

Section 5.REPRESENTATIONS AND WARRANTIES 

Each Obligor hereby represents, warrants and covenants as follows:

5.1.Representations in the Loan Agreement and the Other Loan Documents.  Each of the representations and warranties made by or on behalf of each Obligor to Agent or any Lender in the Loan Agreement or any of the other Loan Documents was true and correct when made, and is, except for the Existing Defaults, true and correct on and as of the date of this Agreement with the same full force and effect as if each of such representations and warranties had been made by each Obligor on the date hereof and in this Agreement.   

5.2.Binding Effect of Documents.  This Agreement has been duly authorized, executed and delivered to Agent and Lenders by each Obligor, is enforceable in accordance with its terms and is in full force and effect. 

5.3.No Conflict.  The execution, delivery and performance of this Agreement by each Obligor will not violate any requirement of law or contractual obligation of any Obligor and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues. 

Section 6.CONDITIONS TO EFFECTIVENESS OF CERTAIN PROVISIONS OF THIS AGREEMENT 

The effectiveness of the terms and provisions of this Agreement (other than the terms and provisions of Sections 2 and 7, which will be effective immediately upon the execution of this Agreement) is subject to the following conditions precedent:

(a)Agent shall have received this Agreement, duly authorized, executed and delivered by each Obligor and each Lender; 

(b)Agent shall have received a certificate in form and substance satisfactory to Agent, dated even with this Agreement, effective as of the Seventh Amendment Effective Date and executed by a duly authorized officer of Borrower, (i) attaching a true and correct copy of an amendment to the Revolving Loan Agreement and forbearance agreement conforming to this  

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Agreement, in form and substance satisfactory to Agent (the "Revolving Loan Forbearance Agreement") and (ii) certifying that such Revolving Loan Forbearance Agreement is effective as of the Seventh Amendment Effective Date;

(c)Agent shall have received a fully executed copy, in form and substance satisfactory to Agent, of that certain Consent and Amendment No. 3 to Intercreditor Agreement by and between Agent and the Revolving Loan Agent; 

(d)Agent shall have received a fully executed copy, in form and substance satisfactory to Agent, of that certain Second Expense Reimbursement Letter dated as of or around the date hereof between LCP SSI, LLC and Borrower; 

(e)Agent shall have received an updated Budget for the upcoming 13-week period commencing as of April 6, 2020, in form an substance satisfactory to Agent; 

(f)Agent shall have received payment of all fees payable to Agent and Lenders pursuant to Section 7.2 of this Agreement and the Fifth Amendment Fee Letter, and all other fees, charges and disbursements of Agent and its counsel required to be paid pursuant to the Loan Agreement in connection with the preparation, execution and delivery of this Agreement and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith;  

(g)All proceedings taken in connection with the transactions contemplated by this Agreement and all documents, instruments and other legal matters incident thereto shall be satisfactory to Agent and its legal counsel; and 

(h)Except the Existing Defaults, no Default or Event of Default shall have occurred and be continuing.  

Section 7.MISCELLANEOUS 

7.1.Continuing Effect of Loan Agreement.  Except as modified pursuant hereto, no other changes or modifications to the Loan Agreement or any other Loan Document are intended or implied by this Agreement and in all other respects the Loan Agreement and the other Loan Documents hereby are ratified and reaffirmed by all parties hereto as of the date hereof.  To the extent of any conflict between the terms of this Agreement, the Loan Agreement and the other Loan Documents, the terms of this Agreement will govern and control.  The Loan Agreement and this Agreement will be read and construed as one agreement. 

7.2.Costs and Expenses.  In addition to, and without in any way limiting, the obligations of Borrower set forth in Section 3.11 of the Loan Agreement, each Obligor absolutely and unconditionally agrees to pay to Agent, promptly (and in any event within 2 Business Days) upon request by Agent at any time, whether or not all or any of the transactions contemplated by this Agreement are consummated:  all fees, costs and expenses incurred by Agent and any of its directors, officers, employees or agents (including, without limitation, fees, costs and expenses incurred of any counsel, advisor or consultant to Agent), regardless of whether Agent or any such other Person is a prevailing party, in connection with (a) the preparation, negotiation, execution, delivery or enforcement of this Agreement, the Loan Agreement, the other Loan Documents and any  

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agreements, documents or instruments contemplated hereby and thereby, and (b) any investigation, litigation or proceeding related to this Agreement, the Loan Agreement or any other Loan Document or any act, omission, event or circumstance in any matter related to any of the foregoing.

7.3.Further Assurances.  At Borrower's expense, the parties hereto will execute and deliver such additional documents and take such further action as may be necessary or desirable to effectuate the provisions and purposes of this Agreement. 

7.4.Successors and Assigns; No Third-Party Beneficiaries.  This Agreement will be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.  No Person other than the parties hereto and, in the case of Sections 7.6 and 7.7 hereof, the Releasees, shall have any rights hereunder or be entitled to rely on this Agreement and all third-party beneficiary rights (other than the rights of the Releasees under Sections 7.6 and 7.7 hereof) are hereby expressly disclaimed. 

7.5.Survival of Representations, Warranties and Covenants.  All representations, warranties, covenants and releases of each Obligor made in this Agreement or any other document furnished in connection with this Agreement will survive the execution and delivery of this Agreement and the Forbearance Period, and no investigation by Agent or any Lender, or any closing, will affect the representations and warranties or the right of Agent and Lenders to rely upon them. 

7.6.Release. 

(a)In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and each Obligor, on behalf of itself and its successors and assigns, and its present and former members, managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives and other representatives (Borrower, each Obligor  and all such other Persons being hereinafter referred to collectively as the "Releasing Parties" and individually as a "Releasing Party"), hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent, each Lender, and each of their respective successors and assigns, and their respective present and former shareholders, members, managers, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives and other representatives (Agent, Lenders and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from any and all demands, actions, causes of action, suits, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every kind and nature, known or unknown, suspected or unsuspected, at law or in equity, which any Releasing Party or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the date of this Agreement, including, without limitation, for or on account of, or in relation to, or in any way in connection with this Agreement, the Loan Agreement,  any of the other Loan Documents or any of the transactions hereunder or thereunder.  Releasing Parties hereby represent to the Releasees that they have not assigned or transferred any interest in any Claims against any Releasee prior to the date hereof. 

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(b)Borrower and each Obligor understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense to any Claim and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 

(c)Borrower and each Obligor agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered will affect in any manner the final, absolute and unconditional nature of the release set forth above. 

7.7.Covenant Not to Sue.  Each Releasing Party hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by any Releasing Party pursuant to Section 7.6 above.  If any Releasing Party violates the foregoing covenant, each Borrower, for itself and its successors and assigns, and its present and former members, managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives and other representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs incurred by any Releasee as a result of such violation. 

7.8.Severability.  Any provision of this Agreement held by a court of competent jurisdiction to be invalid or unenforceable will not impair or invalidate the remainder of this Agreement. 

7.9.Reviewed by Attorneys.  Each Obligor represents and warrants to Agent and Lenders that it (a) understands fully the terms of this Agreement and the consequences of the execution and delivery of this Agreement, (b) has been afforded an opportunity to discuss this Agreement with, and have this Agreement reviewed by, such attorneys and other persons as such Obligor may wish, and (c) has entered into this Agreement and executed and delivered all documents in connection herewith of its own free will and accord and without threat, duress or other coercion of any kind by any Person.  The parties hereto acknowledge and agree that neither this Agreement nor the other documents executed pursuant hereto will be construed more favorably in favor of one than the other based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation and preparation of this Agreement and the other documents executed pursuant hereto or in connection herewith. 

7.10.Disgorgement.  If Agent or any Lender is, for any reason, compelled by a court or other tribunal of competent jurisdiction to surrender or disgorge any payment, interest or other consideration described hereunder to any person because the same is determined to be void or voidable as a preference, fraudulent conveyance, impermissible set-off or for any other reason, such indebtedness or part thereof intended to be satisfied by virtue of such payment, interest or other consideration will be revived and continue as if such payment, interest or other consideration had not been received by Agent or such Lender, and Obligors will be liable to, and will indemnify, defend and hold Agent or such Lender harmless for, the amount of such payment or interest surrendered or disgorged.  The provisions of this Section will survive repayment of the Obligations or any termination of the Loan Agreement or any other Loan Document. 

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7.11.Tolling of Statute of Limitations.  Each and every statute of limitations or other applicable law, rule or regulation governing the time by which Agent must commence legal proceedings or otherwise take any action against Borrower or any Obligor with respect to any breach or default that exists on or prior to the expiration or termination of the Forbearance Period and arises under or in respect of the Loan Agreement or any other Loan Document shall be tolled during the Forbearance Period.  Borrower and each Obligor agrees, to the fullest extent permitted by law, not to include such period of time as a defense (whether equitable or legal) to any legal proceeding or other action by Agent in the exercise of its rights or remedies referred to in the immediately preceding sentence. 

7.12.Relationship.  Each Obligor agrees that the relationship between Agent and such Obligor and between each Lender and Obligor is that of creditor and debtor and not that of partners or joint venturers.  This Agreement does not constitute a partnership agreement, or any other association between Agent and any Obligor or between any Lender and any Obligor.  Each Obligor acknowledges that Agent and each Lender has acted at all times only as a creditor to such Obligor within the normal and usual scope of the activities normally undertaken by a creditor and in no event has Agent or any Lender attempted to exercise any control over such Obligor or its business or affairs.  Each Obligor further acknowledges that Agent and each Lender has not taken or failed to take any action under or in connection with its respective rights under the Loan Agreement or any of the other Loan Documents that in any way or to any extent has interfered with or adversely affected such Obligor's ownership of Collateral. 

7.13.Governing Law: Consent to Jurisdiction and Venue. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE LOAN AGREEMENT AND ANY OF THE OTHER LOAN DOCUMENTS, THIS AGREEMENT, THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER WILL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).  EACH OBLIGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE STATE, COUNTY AND CITY OF NEW YORK WILL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OBLIGOR AND AGENT OR ANY LENDER PERTAINING TO THIS AGREEMENT OR THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE LOAN AGREEMENT OR ANY OF THE LOAN DOCUMENTS; AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT WILL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.  EACH OBLIGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH OBLIGOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH OBLIGOR  

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HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH PROCESS MAY BE MADE IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.3.1 OF THE LOAN AGREEMENT.

7.14.Waivers. 

(a)Mutual Waiver of Jury Trial.  THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN AGENT OR ANY LENDER AND ANY OBLIGOR ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO. 

(b)Waivers by Obligors.  Obligors hereby waive any rights any Obligor may have upon payment in full of the Obligations to require Agent to terminate its security interest in the Collateral, other collateral or in any other property of any Obligor until termination of the Loan Agreement in accordance with its terms and the execution by each Obligor of an agreement releasing and indemnifying, in the same manner as described in Section 7.6 of this Agreement, the Releasees from all claims arising on or before the date of such termination.  Obligors each acknowledge that the foregoing waiver is a material inducement to Agent in entering this Agreement and that Agent is relying upon the foregoing waiver in its future dealings with Obligors. 

7.15.Counterparts.  This Agreement may be executed and delivered via facsimile or email (in .pdf format) transmission with the same force and effect as if an original were executed and may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. 

[signatures on following page]

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IN WITNESS WHEREOF, this Agreement is executed and delivered as of the day and year first above written.

 

	BORROWER:

SCHOOL SPECIALTY, INC.

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                       

Title:  EVP & Chief Financial Officer   

 

	GUARANTORS:

CLASSROOMDIRECT.COM, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	SPORTIME, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	DELTA EDUCATION, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	PREMIER AGENDAS, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	CHILDCRAFT EDUCATION, LLC, a Delaware limited liability company 

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	BIRD-IN-HAND WOODWORKS, LLC, a Delaware limited liability company 

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	CALIFONE INTERNATIONAL, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary            

 

	SSI GUARDIAN, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	FREY SCIENTIFIC, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

 

	SAX ARTS & CRAFTS, LLC, a Delaware limited liability company

 

By: /s/ Kevin Baehler                       

Name: Kevin Baehler                        

Title:  Assistant Secretary           

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	AGENT:

TCW ASSET MANAGEMENT COMPANY LLC,

as Agent 

 

By:  /s/ Suzanne Grasso                   

Name:  Suzanne Grasso          

Title:  Managing Director           

 

 

	LENDERS:

TCW DIRECT LENDING LLC, 

as a Lender

By TCW Asset Management Company LLC

Its Investment Advisor

 

 

By:  /s/ Suzanne Grasso                   

Name:  Suzanne Grasso          

Title:  Managing Director           

 

	TCW DIRECT LENDING STRATEGIC VENTURES LLC,

as a Lender

 

 

By:    /s/ Suzanne Grasso                   

Name:  Suzanne Grasso          

Title:  Managing Director           

 

	WEST VIRGINIA DIRECT LENDING LLC,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

 

 

By:  /s/ Suzanne Grasso                   

Name:  Suzanne Grasso          

Title:  Managing Director           

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	TCW BRAZOS FUND LLC,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

 

 

By:  /s/ Suzanne Grasso                   

Name:  Suzanne Grasso          

Title:  Managing Director           

 

	TCW SKYLINE LENDING, L.P.,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

 

 

By:  Suzanne Grasso                   

Name:  /s/ Suzanne Grasso          

Title:  Managing Director           

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	CERBERUS AUS LEVERED HOLDINGS III LLC, as a Lender

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Vice President

 

	CERBERUS AUS LEVERED II LP, as a Lender

By:  CAL I GP Holdings LLC

Its:   General Partner

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

 

	CERBERUS ICQ OFFSHORE LEVERED LP, as a Lender

By:  Cerberus ICQ Offshore GP LLC

Its:   General Partner

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

 

	CERBERUS LOAN FUNDING XXI, L.P., as a Lender

By:  Cerberus LFGP XXI, LLC

Its:   General Partner

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

 

	CERBERUS LOAN FUNDING XXVI, L.P., as a Lender

By:  Cerberus LFGP XXVI, LLC

Its:   General Partner

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	CERBERUS OFFSHORE LEVERED LOAN OPPORTUNITIES MASTER FUND III, L.P., as a Lender

By:  Cerberus Offshore Levered Opportunities III GP, LLC

Its:   General Partner

 

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

 

	CERBERUS REDWOOD LEVERED A LLC, as a Lender

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Vice President

 

	CERBERUS SWC LEVERED II LLC, as a Lender 

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Vice President

 

	CERBERUS SWC LEVERED LOAN OPPORTUNITIES MASTER FUND, L.P., as a Lender

By:  Cerberus SWC Levered Opportunities GP, LLC

Its:   General Partner

 

By:  /s/ Daniel E. Wolf         

Name:  Daniel E. Wolf

Title:  Senior Managing Director

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

	LCP SSI LLC, as a Lender

 

By:  /s/ L. Andy Mitchell         

Name:  L. Andy Mitchell

Title: Authorized Signatory

Signature Page to Seventh Amendment to Loan Agreement and Forbearance Agreement

EXHIBIT A

to

SEVENTH AMENDMENT TO LOAN AGREEMENT AND

FORBEARANCE AGREEMENT

 

Existing Defaults

 

1.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain a Net Senior Leverage Ratio not greater than the ratio set forth in Section 10.3.2 of the Loan Agreement for the four (4) consecutive Fiscal Quarter period ending September 28, 2019;  

2.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain EBITDA in an amount not less than the applicable amount set forth in Section 10.3.3 of the Loan Agreement for the four (4) consecutive Fiscal Quarter period ending September 28, 2019; 

3.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain a Fixed Charge Coverage Ratio not less than the ratio set forth in Section 10.3.1 of the Loan Agreement for the four (4) consecutive Fiscal Quarter period ending December 28, 2019;  

4.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain a Net Senior Leverage Ratio not greater than the ratio set forth in Section 10.3.2 of the Loan Agreement for the four (4) consecutive Fiscal Quarter period ending December 28, 2019; and 

5.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain Unadjusted EBITDA in an amount not less than the amount set forth in Section 10.3.3 of the Loan Agreement for the twelve (12) consecutive month period ending January 31, 2020. 

6.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to maintain Unadjusted EBITDA in an amount not less than the amount set forth in Section 10.3.3 of the Loan Agreement for the twelve (12) consecutive month period ending March 28, 2020. 

7.An Event of Default under Section 11.1(c) of the Loan Agreement as a result of Obligors' failure to consummate an Acceptable Transaction pursuant to Signed Purchase Documentation and cause the Full Payment of all Obligations to the extent required by that certain Fifth Amendment to Loan Agreement and Forbearance Agreement or that certain Sixth Amendment to Loan Agreement and Forbearance Agreement.

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