Document:

Exhibit 10.8

 

Execution Copy

GUARANTY

 

THIS GUARANTY AGREEMENT
(“Guaranty”), dated as of February 9, 2015 (the “Effective Date”), is made
by Kable Media Services, Inc., a Delaware corporation (“KMS”), Kable Distribution Services, Inc., a Delaware
corporation (“KDS”), Kable News Company, Inc., an Illinois corporation (“KNC”),
Kable News International, Inc., a Delaware corporation (“KNI”), Kable Distribution Services of Canada,
Ltd., a Canadian corporation incorporated in Ontario, Canada (“KDSC”), Kable Product Services, Inc.,
a Delaware corporation (“KPS” and together with KMS, KDS, KNI, KNC and KDSC, the “Company
Group”), DFI Holdings, LLC, a Pennsylvania limited liability company (“Distribution Buyer”),
and KPS Holdco, LLC, a Pennsylvania limited liability company (“Products Buyer”; together with Distribution
Buyer, the “Buyers”; and collectively with Distribution Buyer and the Company Group, the “Guarantors”),
for the benefit of American Republic Investment Co., a Delaware corporation (“Seller”
and collectively with the Guarantors, the “Parties” and each a “Party”).

 

WITNESSETH:

 

WHEREAS, Seller owns all of the issued and
outstanding shares of capital stock of KMS;

 

WHEREAS, KMS owns all of the issued and
outstanding shares of capital stock of KDS, KNC and KPS;

 

WHEREAS, KDS owns all of the issued and
outstanding shares of capital stock of KNI, and KNC owns all of the issued and outstanding shares of capital stock of KDSC;

 

WHEREAS, Seller and Buyers will enter into
a Stock Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which
Products Buyer is acquiring all of the issued and outstanding shares of KPS and Distribution Buyer is acquiring all of the issued
and outstanding shares of KMS, and will thereby become the direct or indirect owners of the Company Group (the “Transaction”);

 

WHEREAS, all capitalized terms used but
not otherwise defined in this Guaranty have the meanings ascribed to them in the Purchase Agreement;

 

WHEREAS, in connection with the Transaction,
Seller, Buyers, Michael P. Duloc and the Company Group are entering into the Transaction Agreements to which they are a signatory;

 

WHEREAS, as part of the Transaction, among
other things, Seller is assuming material pension liabilities of the Company Group, assigning valuable software and software licenses
held by Affiliates of Seller to the Company Group, and extending a $2.0 million working capital line of credit to the Company Group
pursuant to the Line of Credit Note;

 

WHEREAS, as a material part of and as a
condition to the Transaction, the Guarantors are required to execute and deliver this Guaranty; and

 

WHEREAS, Distribution Buyer, Products Buyer
and the Company Group are required to execute and deliver this Guaranty under section 2.2(b) of the Purchase Agreement.

 

    	 

    	 

    

  

NOW, THEREFORE, in consideration of the
foregoing and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the Guarantors hereby covenant and agree as follows:

 

1.          Guaranty
of Obligations. Each Guarantor hereby irrevocably, absolutely and unconditionally guarantees
the full and prompt payment and performance when due of the Obligations. 

 

(a)          The
term “Notes” as used herein means the Line of Credit Note and the Buyer Promissory Note, together with
all attachments and amendments in effect from time to time.

 

(b)          The
term “Obligations” as used herein means any and all agreements, covenants,
indebtedness, liabilities and obligations of every kind and description of any one or more of the Guarantors (a) under the Purchase
Agreement, any of the other Transaction Agreements (including the Notes), each of the documents, agreements, certificates and instruments
executed in connection with any Transaction Agreement or the Lease Agreement, dated November 7, 2008, between El Dorado Utilities,
Inc. and KPS (as successor-in-interest to Kable Specialty Packaging Services LLC) or (b) owing to the Seller or to any Affiliate
of the Seller, whether or not under the Transaction Agreements, and, in each case of clause (a) or clause (b), whether such agreements,
covenants, indebtedness, liabilities and obligations are primary or secondary, direct or indirect, absolute or contingent, sole,
joint or several, secured or unsecured, due or to become due, contractual or tortious, arising by operation of law, by overdraft
or otherwise, or now or hereafter existing, including advances, principal, interest, fees, late fees, expenses, reasonable attorneys’
fees and costs or allocated fees and costs of Seller’s in-house legal counsel, that have been or may hereafter be contracted
or incurred. Notwithstanding the foregoing, and for the avoidance of doubt, the term Obligations shall include Note Documentation
Costs (as defined in each of the Notes) and no other attorneys’ fees or costs of Seller or any Affiliate of Seller relating
to negotiation and documentation of the Transaction Agreements on or prior to the Closing Date. Notwithstanding the foregoing (or
any other provision hereof), each Guarantor hereby provides in favor of Seller an irrevocable, absolute and unconditional guaranty,
but only with respect to Obligations for which such Guarantor is not a primary obligor. This Guaranty shall be effective as of
the Effective Date and shall remain in full force and effect until the earlier of (A) the date on which all of the Obligations
are indefeasibly paid in full, satisfied and have expired by their terms or (B) an express release and termination is given in
writing by Seller.

 

2.          General
Conditions.

 

(a)          This
Guaranty shall be a continuing and irrevocable guaranty, shall be a guaranty of performance and not of collection, and the liability
of the Guarantors hereunder shall remain in full force and effect and shall in no way be affected, modified, or diminished by reason
of (i) any modification or waiver of, or change in, any of the terms or conditions of the Transaction Agreements in accordance
with the terms and conditions thereof; (ii) any bankruptcy, insolvency, reorganization, liquidation, arrangement, assignment for
the benefit of creditors, receivership, trusteeship or similar proceeding (a “Bankruptcy Event”) affecting
a primary obligor, whether or not notice thereof is given to the Guarantors; or (iii) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Guarantors hereunder. For the avoidance of doubt, nothing contained herein
shall be deemed to limit the rights of, or defenses available to, Seller under any of the Transaction Agreements.

 

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(b)          The
Guarantors hereby unconditionally waive promptness, diligence, notice of acceptance of this Guaranty and any other notice with
respect to this Guaranty.

 

(c)          The
Guarantors agree to pay Seller on demand all reasonable fees and costs, including reasonable attorneys’ fees, incurred by
or on behalf of Seller in enforcing the obligations of the Guarantors under this Guaranty.

 

(d)          This
Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time payment of any amount made by any
Guarantor to Seller is rescinded, avoided or rendered void as a preferential transfer, impermissible set-off, fraudulent conveyance
or must otherwise be returned by Seller upon the occurrence of a Bankruptcy Event affecting any Guarantor or primary obligor, all
as though such payment had not been made.

 

(e)          The
rights of Seller under this Guaranty are not conditional or contingent upon any requirement of, or attempt by, Seller to exercise
any of its rights under the Purchase Agreement or any of the other Transaction Agreements.

 

(f)          Each
Guarantor irrevocably waives any present or future right to which a Guarantor is or becomes entitled to be subrogated to Seller’s
rights against a primary obligor or to seek contribution, reimbursement, indemnification, subrogation or the like from a primary
obligor on account of this Guaranty, or to assert any other claim or right of action against a primary obligor on account of, or
arising under, or relating to this Guaranty.

 

3.          Priority
and Subordination.Each Guarantor
agrees that the Obligations of a Guarantor to Seller, whether now existing or hereafter created, shall be superior to any claim
that any Guarantor may now have or hereafter acquire against any other Guarantor, whether or not such other Guarantor becomes
insolvent. Each Guarantor with a claim against another Guarantor at any time (the Guarantor with such a claim, a “Creditor
Guarantor”, and the Guarantor owing obligations to such Creditor Guarantor, a “Debtor
Guarantor”) hereby expressly subordinates each and every claim it may have against
any Debtor Guarantor, upon any account whatsoever, to any claim that Seller may now or hereafter have against such Debtor Guarantor.
In the event of insolvency and consequent liquidation of the assets of a Debtor Guarantor, through bankruptcy, by an assignment
for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of the Debtor Guarantor applicable to the payment
of claims of both Seller and one or more Creditor Guarantors shall be paid to Seller first until all of the Obligations are indefeasibly
satisfied. Each Guarantor does hereby assign to Seller all claims which it may have or acquire against another Guarantor or against
any assignee or trustee of a Guarantor in the bankruptcy of a Guarantor; provided however, that such assignment shall be effective
only for the purpose of assuring to Seller full payment in legal tender of the Obligations. If Seller so requests, any notes or
credit agreements now or hereafter evidencing any debts or obligations between Guarantors shall be marked with a legend that the
same are subject to this Guaranty and a copy shall be delivered to Seller. Each Guarantor agrees, and Seller is hereby authorized,
in the name of each Guarantor from time to time to execute and file financing statements and continuation statements and to execute
such other documents and to take such other action as Seller deems necessary or appropriate to perfect, preserve and enforce its
rights under this Guaranty.

 

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4.          No
Impairment. No Guarantor’s
obligations to make payment in accordance with the terms of this Guaranty shall be impaired, modified, changed, released or limited
in any manner whatsoever by: (a) any impairment, modification, change, release or limitation of the Obligations or any primary
obligor’s estate in bankruptcy or reorganization resulting from the operation of any present or future provision of the
Federal Bankruptcy Act or other statute or from the decision of any court; (b) any insolvency, reorganization, arrangement, readjustment,
composition, liquidation or similar proceeding relating to a primary obligor’s or its properties or creditors; (c) any presently
existing or hereinafter enacted or made law, ordinance, regulation, judicial decision or administrative decision of any type or
nature, including any law, ordinance, regulation, judicial decision or administrative decision which or otherwise impairs a primary
obligor’s ability to perform its Obligations pursuant to the Purchase Agreement and any other Transaction Agreements; (d)
the fact that any of the Obligations may become due or payable in or, in connection with, or by reason of, any agreement or transaction
which may be invalid, irregular or unenforceable for any reason, or if a primary obligor is a partnership, by the addition, withdrawal
or death of any partner or any other change therein; or (e) by reason of any action whatsoever taken by Seller (including a sale,
lease, disposition, liquidation or other realization), which may be negligent, willful or otherwise in respect to any security
in which Seller may at any time have any interest or against any other party liable for all or any part of the Obligations of
a primary obligor.

 

5.          Representations
and Warranties.

 

(a)          Each
Guarantor is a corporation or limited liability company, duly incorporated or organized, validly existing and in good standing
under the laws of its jurisdiction of organization and has all requisite corporate or limited liability company power and authority
to own and operate its properties and assets and to carry on its business as presently conducted and is qualified to do business
and is in good standing as a corporation in each jurisdiction where the ownership or operation of its properties or conduct of
its business requires such qualification, except where the failure to be so qualified or in good standing, when taken together
with all other such failures, will not prevent, materially delay or materially impair Guarantor’s ability to consummate
the transactions contemplated by this Guaranty.

 

(b)          Each
Guarantor has all requisite corporate or limited liability company power and authority to enter into this Guaranty, to perform
its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by each
Guarantor and the consummation by each Guarantor of this Guaranty, have been duly and validly adopted and approved by such Guarantor’s
board of directors or managers and no other corporate proceedings on the part of Guarantor or its stockholders are necessary with
respect to any such matter. This Guaranty has been duly executed and delivered by each Guarantor and constitutes the valid, binding
and enforceable obligations of each such Guarantor, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights generally and general principles of equity.

 

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(c)          Each
Guarantor hereby represents and warrants to Seller, which representations and warranties shall survive the execution and delivery
of this Guaranty, that (a) this Guaranty has been duly authorized, executed and delivered by the Guarantor and such execution and
delivery and the performance by the Guarantor of the Guarantor’s obligations hereunder will not violate, in any material
respects, any applicable provision of law or judgment, order or regulation of any court or of any public or governmental agency
or authority nor conflict with or constitute a breach of or a default under the organizational documents of the Guarantor or any
agreement or instrument to which Guarantor is a party or by which Guarantor or any of its property is bound, and (b) this Guaranty
is a legal, valid and binding obligation of Guarantor enforceable in accordance with its terms.

 

EXCEPT FOR THE EXPRESS REPRESENTATIONS AND
WARRANTIES OF THE PARTIES IN THE TRANSACTION AGREEMENTS, (A) NEITHER PARTY HERETO NOR ANY PERSON ON SUCH PARTY’S BEHALF HAS
MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, EITHER ORAL OR WRITTEN, WHETHER ARISING BY LAW, COURSE
OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) EACH PARTY HERETO
ACKNOWLEDGES THAT, IN ENTERING INTO THIS GUARANTY, IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY THE OTHER PARTY,
OR ANY OTHER PERSON ON SUCH OTHER PARTY’S BEHALF.

 

6.          Miscellaneous.

 

(a)          Waiver.
The failure of any Guarantor to comply with any of its obligations or agreements herein contained may be waived only in writing
by Seller. No waiver granted hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.
No failure or delay by any Party in exercising any right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege.

 

(b)          Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile (with confirmation of transmission)
if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the
recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Such communications must be sent to the respective Parties at the addresses set forth below (or to such other address that may
be designated by a party from time to time in accordance with this Section):

 

	Guarantors: 	
        c/o DFI Holdings, LLC

        3179 Deer Creek Road,

        Collegeville, PA 19426

        Attention: Michael P. Duloc

        Fax: 815-734-5233

         
	
        with a required copy to (which shall not constitute notice):

        Fox Rothschild LLP

        2700 Kelly Road, Suite 300

        Warrington, PA 18976

        Attention: Jeffrey H. Nicholas

        Fax: 215-345-7507

        

 

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	Seller: 	
        c/o AMREP Corporation

        300 Alexander Park, Suite 204

        Princeton, New Jersey 08540

        Attention: General Counsel

        Fax: 609-716-8255

         
	
        with a required copy to (which shall not constitute notice):

        Duane Morris LLP

        222 Delaware Avenue

        Suite 1600

        Wilmington, DE 19801

        Attention: Christopher Winter

        Fax: 302-397-2455

 

(c)          Governing
Law; Consent to Jurisdiction and Waiver of Jury Trial.

 

(i)          This
Guaranty shall be governed by and construed in accordance with the internal substantive Laws of the State of New York, without
giving effect to any choice of Law or conflict of Laws rules or provisions (whether of the State of New York or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of New York.

 

(ii)         Each
Party irrevocably submits to the exclusive jurisdiction of the federal courts of the Southern District of New York or the courts
of the State of New York located in the City of New York for the purposes of any suit, action or other proceeding arising out of
this Guaranty or any transaction contemplated hereby. Each Party further agrees that service of any process, summons, notice or
document by U.S. registered mail to such Party’s respective address set forth in the “Notices” section hereof
shall be effective service of process for any action, suit or proceeding with respect to any matters to which it has submitted
to jurisdiction in this Section. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any
action, suit or proceeding arising out of this Guaranty or the transactions contemplated hereby in federal courts of the Southern
District of New York or the courts of the State of New York located in the City of New York, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any
such court has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE ACTIONS
OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

 

(d)          Counterparts.
This Guaranty may be executed in two or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. Execution and delivery of this Guaranty by delivery of a facsimile or electronically
recorded copy in .pdf file format bearing a copy of the signature of a Party shall constitute a valid and binding execution and
delivery of this Guaranty by such Party. Such copies shall constitute enforceable original documents.

 

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(e)          Headings.
   The section headings contained in this Guaranty are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Guaranty. 

 

(f)          Entire
Agreement.
   The Guaranty embodies the entire agreement and understanding of the Parties hereto in respect of the subject matter
herein. The Guaranty supersedes all prior agreements and understandings between the Parties with respect to the subject matter
thereof.

 

(g)          Amendment.

   Any provision of this Guaranty may be amended if, and only if, such amendment is in writing and is signed by each Party to this
Guaranty.

 

(h)          Binding
Effect; Benefits.
   This Guaranty shall inure to the benefit of and be binding upon the Parties hereto and their respective
successors and permitted assigns; nothing in this Guaranty, express or implied, is intended to confer on any Person, other
than the Parties and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities
under or by reason of this Guaranty.

 

(i)          Joint
Drafting.
   The Parties have participated jointly in the negotiation and drafting of this Guaranty. In the event an ambiguity
or question of intent or interpretation arises, this Guaranty shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this
Guaranty.

 

(j)          Severability.

   Whenever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable
Law. If any provision of this Guaranty is held to be prohibited by or invalid under applicable Law, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Guaranty. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the Parties hereto shall negotiate in good faith to modify this Guaranty so as to effect the original intent of the Parties as
closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.

 

(k)          Interpretation.

   When a reference is made in this Guaranty to an Article, Section or Exhibit, such reference will be to an Article or Section of,
or an Exhibit to, this Guaranty unless otherwise indicated. Whenever the words “include,” “includes” or
“including” are used in this Guaranty, they will be deemed to be followed by the words “without limitation.”
The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Guaranty will refer to this Guaranty as a whole and not to any particular provision of this Guaranty. Unless the context expressly
provides otherwise, any approval, determination, election or authorization required to be obtained from a Party shall be at such
Party’s sole discretion. The word “or” is not exclusive. All capitalized terms used and defined in this Guaranty
shall have the meanings ascribed to them herein. All capitalized terms used but not otherwise defined in this Guaranty shall have
the meanings ascribed to them in the Purchase Agreement. All terms defined in this Guaranty will have such defined meanings when
used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Guaranty are applicable to the singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such term. Unless otherwise indicated, any agreement, instrument or statute defined or
referred to herein, or in any agreement or instrument that is referred to herein, means such agreement, instrument or statute
as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. References to a Person are also to its permitted successors and assigns.

 

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(l)          Assignability.
   This
Guaranty shall not be assignable by any Party hereto without the prior written consent of the other Party.

 

(m)          Specific
Performance.
   Each Party agrees that irreparable damage would occur in the event that any of the provisions of this
Guaranty were not performed by them in accordance with the terms hereof and that each Party shall be entitled to specific
performance of the terms hereof (without the need to post bond or any other security), in addition to any other remedy at law
or equity.

 

(n)          Expenses.

   Each Party shall bear its own costs and expenses in connection with this Guaranty and the transactions contemplated hereby,
including all legal, accounting, financial advisory, consulting and all other fees and expenses of third parties, except
where specifically provided to the contrary.

 

(o)          Disclosure.

   Each Guarantor consents to Seller or its Affiliates publicly disclosing this Guaranty, including by filing such documents with
the Securities and Exchange Commission or the New York Stock Exchange.

 

(p)          Independent
Counsel .
    Each Party certifies that it has read the terms of this Guaranty, that it understands the terms of this Guaranty,
and that it is entering into this Guaranty of its own volition. Each Party warrants and represents that it has (a) been represented
by an attorney of its choice in connection with the Transaction and received independent legal advice from its attorney regarding
its decision with respect to the advisability of making and entering into this Guaranty, or (b) had sufficient time, opportunity
and means to engage an attorney of its choice in order to be represented by such attorney in connection with the Transaction and
to receive independent legal advice from its attorney regarding its decision with respect to the advisability of making and entering
into this Guaranty, and has made a knowing and voluntary decision not to do so.

 

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BLANK]

 

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 IN WITNESS WHEREOF, the
Parties have caused this Guaranty to be duly executed and delivered as of the date first written above.

 

	DFI HOLDINGS, LLC	 	KPS HOLDCO, LLC
	 	 	 
	By:	/s/ Michael P. Duloc 	 	 	By:	/s/ Michael P. Duloc 	 
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: Manager   	 	 	Title: Manager
	 	 	 
	KABLE MEDIA SERVICES, INC.	 	KABLE NEWS INTERNATIONAL, INC.
	 	 	 
	By:	/s/ Michael P. Duloc 	 	 	By:	/s/ Michael P. Duloc 	 
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer   	 	 	Title: President & Chief Executive Officer   
	 	 	 
	KABLE DISTRIBUTION SERVICES, INC.	 	KABLE DISTRIBUTION SERVICES OF CANADA, LTD.
	 	 	 
	By: 	/s/ Michael P. Duloc	 	 	By: 	/s/ Michael P. Duloc	 
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer   	 	 	Title: President & Chief Executive Officer   
	 	 	 
	KABLE NEWS COMPANY, INC.	 	KABLE PRODUCT SERVICES, INC.
	 	 	 
	By: 	/s/ Michael P. Duloc	 	 	By: 	/s/ Michael P. Duloc	 
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer   	 	 	Title: President & Chief Executive Officer   
	 	 	 
	American republic investment co.	 	 
	 	 	 
	By: 	/s/ Peter M. Pizza	 	 	 
	 	Name: Peter M. Pizza	 	 
	 	Title: Vice President   	 	 

 

Signature Page to Guaranty

(1/1)Exhibit 10.9

 

Execution Copy

 

Security
Agreement

 

This SECURITY AGREEMENT (this “Security
Agreement”), dated as of February 9, 2015, is made by DFI Holdings, LLC, a Pennsylvania limited liability company
(“Distribution Buyer”), KPS Holdco, LLC, a Pennsylvania limited liability company (“Products
Buyer” and together with Distribution Buyer, the “Buyers”), Kable Media Services, Inc.,
a Delaware corporation (“KMS”), Kable Distribution Services, Inc., a Delaware corporation (“KDS”),
Kable News Company, Inc., an Illinois corporation (“KNC”), Kable News International, Inc., a Delaware
corporation (“KNI”), Kable Distribution Services of Canada, Ltd., a Canadian corporation incorporated
in Ontario, Canada (“KDSC”), and Kable Product Services, Inc., a Delaware corporation (“KPS”
and together with KMS, KDS, KNI, KNC and KDSC, the “Company Group”, and the Company Group collectively
with Distribution Buyer and Products Buyer, the “Debtors”), in favor of American Republic Investment
Co., a Delaware corporation (“Secured Party” and together with the Debtors, the “Parties”).

 

WITNESSETH:

 

WHEREAS, the Secured Party owns all of the issued
and outstanding shares of capital stock of KMS;

 

WHEREAS, KMS owns all of the issued and outstanding
shares of capital stock of KDS, KNC and KPS;

 

WHEREAS, KDS owns all of the issued and outstanding
shares of capital stock of KNI, and KNC owns all of the issued and outstanding shares of capital stock of KDSC;

 

WHEREAS, the Secured Party and the Buyers
will enter into a Stock Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant
to which Products Buyer is acquiring all of the issued and outstanding shares of KPS and Distribution Buyer is acquiring all of
the issued and outstanding shares of KMS, and will thereby become the direct or indirect owners of the Company Group (the “Transaction”);

 

WHEREAS, all capitalized terms used but
not otherwise defined in this Security Agreement shall have the meanings ascribed to them in the Purchase Agreement unless otherwise
noted, and unless otherwise defined herein, terms used herein that are defined in the UCC shall have the meanings assigned to them
in the UCC. The terms “Receivables” and “Inventory” have the respective meanings set forth in the Line
of Credit Note;

 

WHEREAS, in connection with the Transaction,
the Secured Party, Buyers, Michael P. Duloc and the Company Group are entering into the Transaction Agreements to which they are
a signatory;

 

WHEREAS, as a material part of and as
a condition to the Transaction, Buyers and the Company Group are entering into that certain Guaranty Agreement, dated as of the
date hereof (the “Guaranty”), pursuant to which Buyers and the Company Group irrevocably, absolutely
and unconditionally guarantee the full and prompt payment and performance when due of the obligations under the Purchase Agreement
and the other Transaction Agreements (as more fully set forth in the Guaranty);

 

    	 

    	 

    

 

WHEREAS, as part of the Transaction,
among other things, the Secured Party is assuming material pension liabilities of the Company Group, assigning valuable software
and software licenses held by Affiliates of the Secured Party to the Company Group, and extending a $2.0 million working capital
line of credit to the Company Group pursuant to the Line of Credit Note; and

 

WHEREAS, Buyers and Company Group are
required to execute and deliver this Security Agreement under section 2.2(b) of the Purchase Agreement in order to secure their
obligations under the Guaranty and the other Transaction Agreements.

 

NOW, THEREFORE, in consideration of the
foregoing and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the Debtors hereby covenant and agree as follows:

 

1.          Grant
of Security Interest. As security for the prompt and complete payment and performance when due by each Debtor of all of its
Obligations (as defined herein), each Debtor hereby pledges, assigns, collaterally assigns, mortgages, hypothecates, conveys, transfers
and grants to the Secured Party a first-priority security interest in and to the following properties, assets and rights of such
Debtor, if any, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof (all
of the same being hereinafter collectively referred to as the “Collateral”): all personal and fixture
property of every kind and nature including all goods (including Inventory, equipment and any accessions thereto), instruments
(including promissory notes), documents, Receivables, accounts, chattel paper (whether tangible or electronic), deposit accounts,
letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims, securities and
all other investment property, supporting obligations, any other contract rights or rights to the payment of money, insurance claims
and proceeds, tort claims, and all general intangibles, including to the extent a security interest may be granted by the Debtor
therein, all payment intangibles, patents, patent applications, trademarks, trademark applications, trade names, copyrights, copyright
applications, software, engineering drawings, service marks, customer lists, goodwill, and, to the extent a security interest may
be granted by the Debtor therein, all licenses, permits, agreements of any kind or nature pursuant to which the Debtor possesses,
uses, or has authority to possess or use property (whether tangible or intangible) of others or pursuant to which others possess,
use or have authority to possess or use property (whether tangible or intangible) of the Debtor, and all recorded data of any kind
or nature, regardless of the medium of recording including all software, writings, plans, specifications and schematics.

 

The Collateral shall
further include the following:

 

(a)          Substitutions.
All substitutions, accessions, additions and replacements to any of the foregoing; and

 

(b)          Products
and Proceeds. All products and proceeds of any of the foregoing, including each Debtor’s rights, title and interests,
if any, in and to insurance proceeds, proceeds of any voluntary or involuntary disposition or diminution in value of any of the
foregoing, and any claim respecting any thereof (pursuant to judgment or otherwise) and all goods (including Inventory), Receivables,
accounts, general intangibles, chattel paper, instruments, documents, consumer goods, equipment and inventory, wherever located,
acquired with the proceeds of any of the foregoing or proceeds thereof. The term “proceeds” shall have the meaning
assigned and ascribed to such term as set forth in the UCC.

 

    	2

    	 

    

  

The term “Notes”
as used herein means the Line of Credit Note and the Buyer Promissory Note, together with all attachments and amendments in effect
from time to time.

 

The term “Obligations”
as used herein means any and all agreements, covenants, indebtedness, liabilities and obligations of every kind and description
of any one or more of the Debtors (a) under the Purchase Agreement, the Guaranty, any of the other Transaction Agreements (including
the Notes), each of the documents, agreements, certificates and instruments executed in connection with any Transaction Agreement
or the Lease Agreement, dated November 7, 2008, between El Dorado Utilities, Inc. and KPS (as successor-in-interest to Kable Specialty
Packaging Services LLC) or (b) owing to the Secured Party or to any Affiliate of the Secured Party, whether or not under the Transaction
Agreements, and, in each case of clause (a) or clause (b), whether such agreements, covenants, indebtedness, liabilities and obligations
are primary or secondary, direct or indirect, absolute or contingent, sole, joint or several, secured or unsecured, due or to become
due, contractual or tortious, arising by operation of law, by overdraft or otherwise, or now or hereafter existing, including advances,
principal, interest, fees, late fees, expenses, reasonable attorneys’ fees and costs or allocated fees and costs of Secured
Party’s in-house legal counsel, that have been or may hereafter be contracted or incurred. Notwithstanding the foregoing,
and for the avoidance of doubt, the term Obligations shall include Note Documentation Costs (as defined in each of the Notes) and
no other attorneys’ fees or costs of Secured Party or any Affiliate of Secured Party relating to negotiation and documentation
of the Transaction Agreements on or prior to the Closing Date.

 

2.           Priority.
The security interest granted herein shall be a first-priority security interest in all of the Collateral.

 

3.           Representations
and Warranties. Each Debtor hereby represents and warrants to the Secured Party, which representations and warranties shall
survive the execution and delivery of this Security Agreement, that:

 

(a)          The
Debtor owns, or with respect to property hereafter acquired will own, all of the Collateral free and clear of all liens, charges,
encumbrances, financing statements and adverse claims of any kind or nature whatsoever with respect to the Debtor’s interest
therein, in favor of any entity other than the Secured Party.

 

(b)          The
Debtor owns, or with respect to property hereafter acquired will own, and is, or will be, entitled to collect, without right of
counterclaim or set-off, all of its respective portion of the accounts presently held and those arising in the future, free and
clear of all liens, charges, encumbrances, financing statements and adverse claims of any nature whatsoever, other than those in
favor of the Secured Party.

 

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(c)          All
financing statements, agreements, instruments and other documents necessary to perfect the security interest granted by it to the
Secured Party in respect of the Collateral have been delivered to the Secured Party in completed and, to the extent necessary or
appropriate, duly executed form for filing in each governmental, municipal or other office. Each Debtor agrees that at its sole
cost and expense, such Debtor will maintain the security interest created by this Security Agreement in the Collateral as a perfected
first priority security interest.

 

(d)         As of the date
hereof, (i) the Debtor has not opened and does not maintain any deposit accounts other than the accounts listed in Schedule 3 hereto
(collectively, the “Deposit Accounts”) and (ii) the Secured Party has a perfected first priority security
interest in each Deposit Account held in the United States of America which security interest is perfected by control pursuant
to those certain deposit account control agreement(s) entered into by the Debtor, the applicable depository bank(s) and the Secured
Party contemporaneously herewith.

 

(e)          The
Collateral of the Debtor is not used or bought primarily for personal, family or household purposes of the Debtor.

 

(f)          The
grant of Collateral in this Security Agreement covers, and is intended to cover, all assets of the Debtor.

 

(g)          Debtor
is a corporation or limited liability company, duly incorporated or formed, validly existing and in good standing under the Laws
of its jurisdiction of organization and has all requisite corporate or limited liability company power and authority to own and
operate its properties and assets and to carry on its business as presently conducted and is qualified to do business and is in
good standing as a corporation or limited liability company in each jurisdiction where the ownership or operation of its properties
or conduct of its business requires such qualification, except where the failure to be so qualified or in good standing, when taken
together with all other such failures, will not prevent, materially delay or materially impair Debtor’s ability to consummate
the transactions contemplated by this Security Agreement.

 

(h)          Each
Debtor has all requisite corporate or limited liability company power and authority to enter into this Security Agreement, to perform
its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by each
Debtor and the consummation by each Debtor of this Security Agreement, have been duly and validly adopted and approved by the board
of directors or managers of each Debtor and no other corporate proceedings on the part of each Debtor or its stockholders are necessary
with respect to any such matter. This Agreement has been duly authorized, executed and delivered by the Debtor and such execution
and delivery and the performance by the Debtor of the Debtor’s obligations hereunder will not violate any applicable provision
of law or judgment, order or regulation of any court or of any public or governmental agency or authority nor conflict with or
constitute a breach of or a default under the organizational documents of the Debtor or any agreement or instrument to which Debtor
is a party or by which Debtor or any of its property is bound. This Agreement is a legal, valid and binding obligation of Debtor
enforceable in accordance with its terms.

 

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EXCEPT FOR THE EXPRESS REPRESENTATIONS
AND WARRANTIES OF THE PARTIES IN THE TRANSACTION AGREEMENTS, (A) NEITHER PARTY HERETO NOR ANY PERSON ON SUCH PARTY’S BEHALF
HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, EITHER ORAL OR WRITTEN, WHETHER ARISING BY LAW,
COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) EACH PARTY
HERETO ACKNOWLEDGES THAT, IN ENTERING INTO THIS SECURITY AGREEMENT, IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE
BY THE OTHER PARTY, OR ANY OTHER PERSON ON SUCH OTHER PARTY’S BEHALF.

 

4.           Change
of Name, Jurisdiction or Residence. No Debtor shall change its name, jurisdiction of incorporation, or the state of its principal
place of business unless it has given the Secured Party at least thirty (30) days prior written notice thereof and has authorized,
at the request of the Secured Party, such additional financing statements with respect to the Collateral to be filed in such jurisdictions
as the Secured Party may deem necessary or desirable in its sole discretion.

 

5.           Covenants.
Each Debtor hereby covenants and agrees that:

 

(a)          The
Debtor shall pay immediately upon demand all expenses, including reasonable attorneys’ fees, legal expenses and costs, together
with interest from the date of such expenditure (at a rate per annum equal to six percent (6%)), incurred by the Secured Party
in enforcing the Obligations and this Security Agreement. Payment of such expenses and interest shall be secured by this Security
Agreement.

 

(b)          The
Debtor shall maintain complete and accurate financial information concerning the Collateral. The Secured Party (a) shall have complete
access to all of Debtor’s premises during normal business hours and after notice to Debtor, or at any time and without notice
to Debtor if an Event of Default exists or has occurred and is continuing, for the purposes of inspecting, verifying and auditing
the Receivables and other Collateral and all of Debtor’s books and records, and (b) Debtor shall promptly furnish to Secured
Party such copies of such books and records, including invoices and all documentation relating to Receivables and other Collateral,
or extracts therefrom as Secured Party may reasonably request, and (c) Secured Party or its designee may use during normal business
hours such of Debtor’s personnel, equipment, supplies and premises as may be reasonably necessary for the foregoing and if
an Event of Default exists or has occurred and is continuing for the collection of Receivables and realization of other Collateral;
provided that Secured Party does not unreasonably interfere with Debtor’s ability to conduct its business in the ordinary
course.

 

(c)          The
Debtor shall promptly notify the Secured Party of all claims and demands made against any portion of the Collateral of which the
Debtor becomes aware and any information received by the Debtor that may materially adversely affect the value of any Collateral
or the rights and remedies of the Secured Party relating thereto (including any liens, encumbrances or security interests purporting
to affect the title to the Collateral). In the event of any such claim or demand, the Debtor shall promptly take such action as
may be reasonably necessary to protect the value of the Collateral.

 

(d)          The
Debtor shall pay or cause to be paid, prior to the assessment of any penalty for delinquency, all taxes, assessments or similar
obligations affecting the Collateral.

 

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(e)          The
Debtor shall keep the Collateral free from any lien, charge, encumbrance, financing statement or adverse claim in favor of any
entity other than the Secured Party, without the prior written consent of the Secured Party. The Debtor shall protect and defend
the Collateral against all claims thereto (other than claims arising from the Secured Party’s gross negligence or willful
misconduct) and hereby indemnifies and agrees to defend and save the Secured Party harmless against and with respect to any liability
or claim in connection therewith. Except for the replacement of Collateral in the ordinary course of business or the removal of
obsolete Collateral not required for the operation of the Debtor’s business, the Debtor shall not sell, dispose of, or grant
a security interest or other encumbrance in any portion of the Collateral or execute any financing statement covering any portion
of the Collateral in favor of any person other than the Secured Party, without the prior written consent of the Secured Party.
The Debtor may, however, sell or otherwise dispose of Collateral in the ordinary course of business if the Debtor promptly replaces
such Collateral sold with substitute Collateral of substantially similar quality and utility and of equal or greater value to the
extent same is necessary for the operation of the Debtor’s business.

 

(f)          The
Debtor shall do all acts reasonably necessary to maintain, preserve, protect and keep the Collateral in good condition and repair,
ordinary wear and tear excepted, shall not permit any waste or unusual or unreasonable depreciation of Collateral to occur and
shall not commit any act for which any portion of the Collateral might be confiscated by any governmental or private entity.

 

(g)         The Debtor shall
not hereafter establish and maintain any deposit account other than the accounts listed on Schedule 3 hereto unless (a) the applicable
Debtor shall have given the Secured Party thirty (30) days prior written notice of its intention to establish such new deposit
account with a depository bank, (2) the depository bank shall be acceptable to the Secured Party and (3) the Debtor shall otherwise
be in full compliance with Sections 6, 7 and 8 hereof at all times with respect to all of its deposit accounts.

 

(h)          The
Debtor shall keep and maintain, and require its subsidiaries to keep and maintain, all of its and their property and assets in
good order and repair, maintain extended coverage, general liability, business interruption, hazard, property and other insurance
in amounts deemed sufficient by the Secured Party and as is customary for businesses similar to the Debtor’s business, and
deliver to the Secured Party certificates of all such insurance in effect; and cause all such policies covering any Collateral
for the Obligations and business interruption to contain loss payee endorsements in favor of the Secured Party and to be subject
to cancellation or reduction in coverage only upon thirty (30) days prior written notice thereof to the Secured Party at its address
set forth in the Notice section hereof.

 

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6.          Lockbox
Covenants. Each of KDS and KPS (each, a “Lockbox Debtor”) hereby covenants and agrees that it shall
establish and maintain at all times a lockbox account (“Lockbox Account”) with PNC Bank, or such other
depository bank as is acceptable to Secured Party in its sole discretion (the “Bank”), for the deposit
of all cash, revenue and amounts received, including remittances from its account debtors and any other proceeds of Receivables
or proceeds of other Collateral; and shall sign all agreements with Bank (and, as applicable, the Secured Party) reasonably necessary
to establish the Lockbox Account and pay all fees and charges of the Bank associated therewith. No Lockbox Debtor shall have any
right of access to, or withdrawal from a Lockbox Account. Any and all cash, revenue and amounts received, including remittances
from account debtors and any other proceeds of Receivables or proceeds of other Collateral, received at any time by (or for) a
Lockbox Debtor shall be received in trust for the Secured Party and such Lockbox Debtor (or Person receiving any such amounts on
behalf of a Lockbox Debtor) shall promptly deposit all such amounts into the Lockbox Account. Notwithstanding any other provision
of this Security Agreement or any Transaction Agreement, the requirements of the foregoing sentence and each other requirement
of this Section 6 shall have no cure period and failure to comply with the requirements hereof shall result in an immediate Event
of Default. On a daily basis, the available balance in the Lockbox Accounts shall be transferred to a designated account of the
Secured Party (the “Designated Account”). On a weekly basis, the Secured Party shall make a determination
of (a) the amount of outstanding Obligations due and payable and (b) amounts reasonably anticipated to become Obligations due and
payable (collectively, the “Determined Amount”) and shall retain such Determined Amount in the Designated
Account for application to the outstanding and anticipated Obligations in such order and at such time as the Secured Party shall
determine in its sole discretion. The Determined Amount shall be determined in the sole discretion of the Secured Party. The Secured
Party may remove the Determined Amount from the Designated Account at any time. Any amounts in the Designated Account (that were
transferred into the Designated Account from the Lockbox Account during the week preceding the Secured Party’s determination
of the Determined Amount) in excess of the Determined Amount shall be transferred to the designated account of the Lockbox Debtors
(the “Debtor Funding Account”) for use by such Lockbox Debtors in their discretion in the ordinary course
of their business, subject to Section 8 below. Each Lockbox Debtor shall enter into a Deposit Account Control Agreement with the
Secured Party and Bank, in form and substance satisfactory to Secured Party, that provides, among other things, that the Lockbox
Debtor shall not have any right of access to, or withdrawal from the Lockbox Account, that the Bank shall only comply with instructions
of the Secured Party, and that funds in the Lockbox Account shall be transferred only in accordance with the Secured Party’s
instructions. Each Lockbox Debtor shall be required to strictly comply with the requirements of this Section 6 at all times that
any Obligations under the Notes remain outstanding or the Secured Party retains any obligation to make loans or advance credit
under the Line of Credit Note.

 

7.          Deposit
Account Control Covenants. Each Debtor hereby covenants and agrees that, to the extent that the Debtor maintains cash (other
than cash required to be maintained in a Lockbox Account under Section 6 above) it shall be deposited into a lockbox, deposit,
disbursement or similar account (“Controlled Accounts” and together with the Lockbox Accounts, the “Blocked
Accounts”) established at a bank or banks (each such bank, a “Controlled Account Bank”),
which Controlled Accounts shall be subject to a “springing” or “with activation” cash dominion control
agreement in form and substance satisfactory to Secured Party (each such control agreement, a “Control Agreement”).
For the avoidance of doubt, each Debtor Funding Account shall be subject to a Control Agreement. Upon the occurrence of an Event
of Default, Secured Party shall have the right to immediately give notice to each Controlled Account Bank that it is exercising
its right of control over the Controlled Accounts under the applicable Control Agreement, and after the date of such notice, (y)
no Debtor shall be permitted to withdraw or direct the withdrawal of proceeds from such Controlled Accounts or give any instructions
whatsoever concerning disposition of the proceeds in the Controlled Accounts and (z) any funds in Controlled Accounts shall be
transferred to Secured Party for application to the Obligations. Secured Party does not assume any responsibility for such Controlled
Account arrangement, including any claim of accord and satisfaction or release with respect to deposits accepted by any Controlled
Account Bank thereunder.

 

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8.           Reporting.
The Debtors hereby covenant and agree that they shall:

 

(a)          Annual
Financial Statements. Furnish Secured Party within sixty (60) days after the end of each fiscal year of Debtor, including (a)
statements of income on a consolidating basis (on a business segment basis) and consolidated basis and (b) stockholders’
equity and cash flow from the beginning of the current fiscal year to the end of such fiscal year and the balance sheet as at the
end of such fiscal year in each case on a consolidating basis (on a business segment basis) and consolidated basis, all prepared
in accordance with U.S. generally accepted account principles (“GAAP”) and complete and correct in all
material respects, and in reasonable detail and reported upon on a consolidated basis without qualification by an independent certified
public accounting firm selected by Debtors and reasonably satisfactory to Secured Party.

 

(b)          Quarterly
Financial Statements. Furnish Secured Party within thirty (30) days after the end of each fiscal quarter, an unaudited balance
sheet, stockholder’s equity and cash flow of Debtors on a consolidating basis (on a business segment basis) and consolidated
basis and an unaudited statements of operations on a consolidating basis (on a business segment basis) and consolidated basis reflecting
results of operations from the beginning of the fiscal year to the end of such quarter and for such quarter, prepared in accordance
with GAAP and complete and correct in all material respects, subject to the absence of footnotes and normal and recurring year-end
adjustments that individually and in the aggregate are not material to Debtors’ business.

 

(c)          Monthly
Financial Statements and 13-Week Cash Budget. Furnish Secured Party within twenty (20) days after the end of each month: (a)
(other than for the months of April, July, October and January, which shall be delivered in accordance with the foregoing paragraph),
an unaudited balance sheet, stockholder’s equity and cash flow of Debtors on a consolidating basis (on a business segment
basis) and consolidated basis and an unaudited statements of operations on a consolidating basis (on a business segment basis)
and consolidated basis reflecting results of operations from the beginning of the fiscal year to the end of such month and for
such month, prepared in accordance with GAAP and complete and correct in all material respects, subject to the absence of footnotes
and normal and recurring year-end adjustments that individually and in the aggregate are not material to Debtors’ business,
and (b) a 13-week rolling cash flow projection, which shall include all forecast cash receipts, operating expenses, payroll and
any other cash disbursements.

 

(d)          Other
Reports. Furnish Secured Party as soon as available, but in any event within ten (10) days after the issuance thereof, with
copies of such financial statements, reports and returns as each Debtor shall send to its stockholders.

 

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(e)          Additional
Information. Furnish Secured Party with such additional information as Secured Party shall reasonably request in order to enable
Secured Party to determine whether the terms, covenants, provisions and conditions of this Agreement, the Notes and the other Transaction
Agreements have been complied with by Debtors including, without the necessity of any request by Secured Party, (a) copies of all
environmental audits and reviews, (b) at least thirty (30) days prior thereto, notice of any Debtor’s opening of any new
office or place of business or any Debtor’s closing of any existing office or place of business, and (c) promptly upon any
Debtor’s learning thereof, notice of any labor dispute to which any Debtor may become a party, any strikes or walkouts relating
to any of its plants or other facilities, and the expiration of any labor contract to which any Debtor is a party or by which any
Debtor is bound.

 

(f)          Projected
Operating Budget. Furnish Secured Party, no earlier than thirty (30) days prior to and not later than twenty (20) days after
the beginning of each fiscal year of Debtors commencing with the fiscal year beginning May 1, 2015, a month by month projected
operating budget and cash flow of Debtors on a consolidated basis for such fiscal year (including an income statement for each
month and a balance sheet as at the end of the last month in each fiscal quarter), such projections to be accompanied by a certificate
signed by the President or Chief Financial Officer of each Debtor to the effect that such budget and projections are based on good
faith estimates and assumptions believed by the Debtors to be reasonable as of the date of the applicable projections or assumptions.

 

(g)          Variances
From Operating Budget. Furnish Secured Party, concurrently with the delivery of the financial statements and reports referred
to in Sections 8(a), (b) and (c), a written report summarizing all material variances from budgets submitted by Debtors pursuant
to Section 8(f) and the 13-week rolling cash flow projection submitted by Debtors pursuant to Section 8(c), in each case with a
discussion and analysis by management with respect to such variances.

 

9.           Further
Assurances. At the request of Secured Party at any time and from time to time, each Debtor shall, at its expense, duly execute
and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or cause to
be done such further acts as may be necessary or proper, to create, evidence, perfect, maintain, maintain the priority of, and
enforce the security interests and the priority thereof in the Collateral and to otherwise effectuate the provisions or purposes
of this Agreement.

 

10.          Secured
Party’s Actions. Upon the occurrence of a failure to perform any of the Obligations (including the failure to perform
any covenant under this Agreement) when due and if such failure is not cured within any applicable cure period (such an occurrence,
an “Event of Default”), the Secured Party shall have the right, but shall not be obligated, to discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral, pay for insurance on the
Collateral, pay for the maintenance and preservation of the Collateral, sign and endorse any checks, notes, drafts, money orders,
acceptances or other forms of remittance payable to one or more Debtors and any invoice, freight or express bill, bill of lading,
or other documents relating to the Collateral, demand, bring suit, collect or give acquittance for any monies due on accounts or
compromise, prosecute or defend any action, claim or proceeding arising from the Collateral. The Secured Party shall have the right
to do any or all of the foregoing in the name of any one or more of the Debtors or otherwise. Should a Debtor fail or refuse to
perform any Obligation, the Secured Party shall have the right to, at the Secured Party’s sole discretion, without further
notice to or demand upon the Debtor with respect to such Event of Default and without releasing the Debtor from any obligation,
covenant or condition hereof, make, perform, observe, take or do the same in such manner and to such extent as the Secured Party
may, during any period of time that the Debtor is in default hereunder, deem necessary to protect the Collateral and the security
provided by this Security Agreement. The Debtors agree to reimburse the Secured Party on demand for any reasonable payment made,
or any reasonable expense incurred, including reasonable attorneys’ fees, by the Secured Party in connection with the foregoing,
together with interest thereon from the date incurred (at a rate per annum equal to six percent (6%)).

 

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11.         Default;
Remedies. Upon the occurrence of an Event of Default, the Secured Party shall have the right at its option and without notice
or demand, to declare all Obligations secured hereby immediately due and payable, and to do one or more of the following:

 

(a)          Foreclose
or otherwise enforce the Secured Party’s security interest in any manner permitted by the UCC or other applicable Laws, or
any other applicable agreement.

 

(b)          With
respect to accounts, at any time (including prior to an Event of Default) give notice of assignment to any and all obligors or
account debtors under the accounts. Each Debtor hereby covenants and agrees that the Debtor will cooperate fully with the Secured
Party, and its employees and agents, and will provide any and all documents deemed by the Secured Party to be necessary or desirable
to collect the accounts.

 

(c) Collect the accounts,
take possession of the Collateral, or both. Secured Party shall have the sole and exclusive right to collect the accounts following
an Event of Default. The Secured Party’s actual reasonable collection expenses, including stationery and postage, telephone
and telegraph, secretarial and clerical expenses, may be charged to Debtors and added to the Obligations.

 

(d)          Receive,
endorse, assign or deliver in the name of the Secured Party or any Debtor any and all checks, drafts and other instruments for
the payment of money relating to the accounts, and each Borrower hereby waives notice of presentment, protest and non-payment of
any instrument so endorsed. Each Debtor hereby irrevocably appoints and designates the Secured Party or its designee as such Debtor’s
attorney with power (i) at any time: (A) to endorse such Debtor’s name upon any notes, acceptances, checks, drafts, money
orders or other evidences of payment or Collateral; (B) to sign such Debtor’s name on any invoice or bill of lading relating
to any of the accounts, drafts against account debtors, assignments and verifications of accounts; (C) to send verifications of
accounts to any account debtor; (D) to sign such Debtor’s name on all financing statements or any other documents or instruments
deemed necessary or appropriate by the Secured Party to preserve, protect, or perfect the Secured Party’s interest in the
Collateral and to file same; and (E) to receive, open and dispose of all mail addressed to any Debtor; and (ii) at any time following
the occurrence and during the continuance of an Event of Default: (A) to demand payment of the accounts; (B) to enforce payment
of the accounts by legal proceedings or otherwise; (C) to exercise all of such Debtor’s rights and remedies with respect
to the collection of the accounts and any other Collateral; (D) to settle, adjust, compromise, extend or renew the accounts; (E)
to settle, adjust or compromise any legal proceedings brought to collect accounts; (F) to prepare, file and sign such Debtor’s
name on a proof of claim in bankruptcy or similar document against any account debtor; (G) to prepare, file and sign such Debtor’s
name on any notice of lien, assignment or satisfaction of lien or similar document in connection with the accounts; and (H) to
do all other acts and things necessary to carry out this Security Agreement and any and all rights of the Secured Party. All acts
of said attorney or designee are hereby ratified and approved, and said attorney or designee shall not be liable for any acts of
omission or commission nor for any error of judgment or mistake of fact or of law, unless done maliciously or with gross (not mere)
negligence (as determined by a court of competent jurisdiction in a final non-appealable judgment); this power being coupled with
an interest is irrevocable while any of the Obligations remain unpaid. The Secured Party shall have the right at any time to change
the address for delivery of mail addressed to any Debtor.

 

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(e)          Sell,
lease or otherwise dispose of any Collateral at one or more public or private sales, whether or not such Collateral is present
at the place of sale, for cash or credit or future delivery, on such terms and in such manner as the Secured Party may determine.
In the event of a sale, lease or other disposition of the Collateral or of collection of the accounts:

 

(1)         Any
person, including any Debtor and the Secured Party, may purchase at the sale.

 

(2)         (A)         In
connection with any sale or other dispositions of the Collateral, the Parties agree that without limiting any other commercially
reasonable conduct as may be followed by the Secured Party, the following procedures shall be deemed to comprise and constitute
a commercially reasonable sale (hereinafter referred to as the “sale”):

 

(i)  
The Secured Party shall mail to the applicable Debtors written notice of the sale not less than ten (10) days prior to such sale.

 

(ii)  
In the event of a public sale, as often as (but no more than) required under the UCC immediately preceding the sale, the Secured
Party will publish notice of the sale in an appropriate publication that the Secured Party selects. The notice will advise prospective
purchasers as to where they may obtain information with respect to the Collateral.

 

(iii) Upon
receipt of any written request to do so, the Secured Party will make available to any bona fide prospective purchaser for inspection,
within five (5) Business Days following receipt of such request and during reasonable business hours, such information (including
records and documents with respect to the accounts) as shall be necessary to enable a prospective purchaser to prepare a bid.

 

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(B)         Notwithstanding
paragraph (A) hereof to the contrary, in the event the Secured Party offers to sell all or any part of the Collateral, the
Secured Party will be under no obligation to consummate a sale if, in its reasonable business judgment, none of the offers received
by them reasonably approximates the fair value of such Collateral.

 

(3)         The
Secured Party shall apply the proceeds of any sale, collection, or disposition hereunder to payment of the following: (A) the expenses
of such sale or disposition, including the costs of publishing, recording, mailing and posting notice; (B) the cost of any search
and other evidence of title procured in connection therewith and any transfer tax on any deed or conveyance or bill of sale; (C)
all sums expended under the terms hereof, not then repaid, with accrued interest at the “prime rate” (as determined
by reference to the Wall Street Journal for applicable periods) plus 800 basis points; (D) all sums required to satisfy the Obligations;
and (E) the remainder, if any, to the person or persons legally entitled thereto.

 

(4)         The
Secured Party may require a Debtor to make the Collateral available to the Secured Party at the Debtor’s place of business.

 

(f)          Recover
from the Debtors all reasonable costs and expenses, including reasonable attorneys’ fees, incurred or paid by the Secured
Party in exercising any right, power or remedy provided by this Security Agreement or by Law.

 

12.         Power
of Attorney. Each Debtor hereby irrevocably designates and appoints Secured Party (and all persons designated by Secured Party)
as Debtor’s true and lawful attorney-in-fact, and authorizes Secured Party, in Debtor’s or Secured Party’s name,
to: (a) at any time an Event of Default exists or has occurred and is continuing (i) demand payment on Receivables or other Collateral,
(ii) enforce payment of Receivables by legal proceedings or otherwise, (iii) exercise all of Debtor’s rights and remedies
to collect any Receivable or other Collateral, (iv) sell or assign any Receivable upon such terms, for such amount and at such
time or times as the Secured Party deems advisable, (v) settle, adjust, compromise, extend or renew an Account, (vi) discharge
and release any Receivable, (vii) prepare, file and sign Debtor’s name on any proof of claim in bankruptcy or other similar
document against an account debtor or other obligor in respect of any Receivables or other Collateral, (viii) notify the post office
authorities to change the address for delivery of remittances from account debtors or other obligors in respect of Receivables
or other proceeds of Collateral to an address designated by Secured Party, and open and dispose of all mail addressed to Debtor
and handle and store all mail relating to the Collateral; and (ix) do all acts and things which are necessary, in Secured Party’s
determination, to fulfill Debtor’s obligations under this Agreement and the other Transaction Agreements and (b) at any time
to (i) take control in any manner of any item of payment in respect of Receivables or constituting Collateral or otherwise received
in or for deposit in the Blocked Accounts or otherwise received by Secured Party, (ii) have access to any lockbox or postal box
into which remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral are sent
or received, (iii) endorse Debtor’s name upon any items of payment in respect of Receivables or constituting Collateral or
otherwise received by Secured Party and deposit the same in Secured Party’s account for application to the Obligations, (iv)
endorse Debtor’s name upon any chattel paper, document, instrument, invoice, or similar document or agreement relating to
any Receivable or any goods pertaining thereto or any other Collateral, including any warehouse or other receipts, or bills of
lading and other negotiable or non-negotiable documents, and (v) sign Debtor’s name on any verification of Receivables and
notices thereof to account debtors or any secondary obligors or other obligors in respect thereof. Debtor hereby releases Secured
Party, its Affiliates (other than the Company Group) and the members, managers, directors, officers, employees, agents, designees
and representatives of Secured Party or its Affiliates from any liabilities arising from any act or acts under this power of attorney
and in furtherance thereof, whether of omission or commission, except as a result of Secured Party’s own gross negligence
or wilful misconduct as determined pursuant to a final non-appealable order of a court of competent jurisdiction.

 

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13.         Exercise
of Remedies; No Waiver. All remedies conferred upon the Secured Party shall be deemed cumulative with, and not exclusive of,
any other remedy conferred by any Transaction Agreement or by law or equity. The exercise of any one remedy shall not preclude
the exercise of any other. Failure of the Secured Party to exercise any rights it may have upon any Debtor’s default shall
not be deemed to be a waiver of the Secured Party’s rights thereupon or to be a release of any Debtor from its Obligations.
The acceptance by the Secured Party of any sum or performance after the same is due shall not constitute a waiver of the right
either to require prompt payment or performance, when due, of all other sums and obligations hereby secured or to declare a default
as herein provided. The acceptance by the Secured Party of any sum in an amount less than the sum then due shall not constitute
a waiver of the obligation of any Debtor to pay the entire sum then due. The waiver by the Secured Party of any default hereunder
shall not be deemed to constitute a waiver of any succeeding default. Each Debtor waives any right to require the Secured Party
to proceed against any person or to exhaust any Collateral or to pursue any remedy in the Secured Party’s power.

 

14.         Authorization
to File Financing Statements. Each Debtor hereby specifically and irrevocably authorizes the Secured Party, at any time and
from time to time, to file in any UCC jurisdiction any initial financing statements and amendments thereto that (i) indicate that
the Collateral consists of all assets of the Debtor 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, or is of an equal or lesser scope or with greater detail 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 the Debtor is an organization, the type of organization of the Debtor,
and any organizational identification number issued to the Debtor, and (b) in the case of a financing statement filed as a fixture
filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which
the Collateral relates. Each Debtor hereby covenants and agrees to furnish any such information to the Secured Party promptly upon
request.

 

15.         Term.
This Security Agreement shall remain in full force and effect until the Obligations shall have been indefeasibly paid in full and
satisfied or until an express release and termination is given in writing by the Secured Party. No party to this Security Agreement
or otherwise liable for the Obligations shall be discharged by any extension of time, additional advances, renewals and extensions
of the underlying agreements and Obligations, the taking of further security, releases of a part or all of the Collateral, or any
other acts.

 

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16.         Waiver.
The failure of any Debtor to comply with any of its obligations or agreements herein contained may be waived only in writing by
the Secured Party. No waiver granted hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar
nature. No failure or delay by any Party in exercising any right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
power or privilege.

 

17.         Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile (with confirmation of transmission)
if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the
recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Such communications must be sent to the respective Parties at the addresses set forth below (or to such other address that may
be designated by a party from time to time in accordance with this Section).

 

	Debtors:	c/o DFI Holdings, LLC	with a required copy to (which shall not constitute notice):
	 	3179 Deer Creek Road, 	Fox Rothschild LLP
	 	Collegeville, PA 19426	2700 Kelly Road, Suite 300
	 	Attention: Michael P. Duloc	Warrington, PA 18976
	 	Fax: 815-734-5233	Attention: Jeffrey H. Nicholas
	 	 	Fax: 215-345-7507
	 	 	 
	Secured 	c/o AMREP Corporation 	with a required copy to (which shall not constitute notice):
	Party: 	300 Alexander Park, Suite 204	Duane Morris LLP
	 	Princeton, New Jersey 08540	222 Delaware Avenue
	 	Attention: General Counsel	Suite 1600
	 	Fax: 609-716-8255	Wilmington, DE 19801
	 	 	Attention: Christopher Winter
	 	 	Fax: 302-397-2455

 

18.         Governing
Law; Consent to Jurisdiction and Waiver of Jury Trial.

 

(i)          This
Security Agreement shall be governed by and construed in accordance with the internal substantive Laws of the State of New York,
without giving effect to any choice of Law or conflict of Laws rules or provisions (whether of the State of New York or any other
jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York. The term “UCC”
as used herein means the Uniform Commercial Code as currently in effect in the State of New York.

 

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(ii)         Each
Party irrevocably submits to the exclusive jurisdiction of the federal courts of the Southern District of New York or the courts
of the State of New York located in the City of New York for the purposes of any suit, action or other proceeding arising out of
this Security Agreement or any transaction contemplated hereby. Each Party further agrees that service of any process, summons,
notice or document by U.S. registered mail to such Party’s respective address set forth in the “Notices” section
hereof shall be effective service of process for any action, suit or proceeding with respect to any matters to which it has submitted
to jurisdiction in this Section. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any
action, suit or proceeding arising out of this Security Agreement or the transactions contemplated hereby in federal courts of
the Southern District of New York or the courts of the State of New York located in the City of New York, and hereby further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought
in any such court has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

 

19.         Counterparts.
This Security Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. Execution and delivery of this Security Agreement by delivery of a facsimile
or electronically recorded copy in .pdf file format bearing a copy of the signature of a Party shall constitute a valid and binding
execution and delivery of this Security Agreement by such Party. Such copies shall constitute enforceable original documents.

 

20.         Headings.
The section headings contained in this Security Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Security Agreement. 

 

21.         Entire
Agreement. This Security Agreement embodies the entire agreement and understanding of the Parties hereto in respect of the
subject matter herein. This Security Agreement supersedes all prior agreements and understandings between the Parties with respect
to the subject matter thereof.

 

22.         Amendment.
Any provision of this Security Agreement may be amended if, and only if, such amendment is in writing and is signed by each Party
to this Security Agreement.

 

23.         Binding
Effect; Benefits. This Security Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective
successors and permitted assigns; nothing in this Security Agreement, express or implied, is intended to confer on any Person other
than the Parties and their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or
by reason of this Security Agreement.

 

24.         Joint
Drafting. The Parties have participated jointly in the negotiation and drafting of this Security Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Security Agreement shall be construed as if drafted jointly by the
Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Security Agreement.

 

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25.         Severability.
Whenever possible, each provision of this Security Agreement shall be interpreted in such manner as to be effective and valid under
applicable Law. If any provision of this Security Agreement is held to be prohibited by or invalid under applicable Law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Security Agreement. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Security Agreement so as to effect
the original intent of the Parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner
to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

26.         Interpretation.
When a reference is made in this Security Agreement to an Article, Section or Exhibit, such reference will be to an Article or
Section of, or an Exhibit to, this Security Agreement unless otherwise indicated. Whenever the words “include,” “includes”
or “including” are used in this Security Agreement, they will be deemed to be followed by the words “without
limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Security Agreement will refer to this Security Agreement as a whole and not to any particular provision of this
Security Agreement. Unless the context expressly provides otherwise, any approval, determination, election or authorization required
to be obtained from a Party shall be at such Party’s sole discretion. The word “or” is not exclusive. All capitalized
terms used and defined in this Security Agreement shall have the meanings ascribed to them herein. All capitalized terms used but
not otherwise defined in this Security Agreement shall have the meanings ascribed to them in the Purchase Agreement. All terms
defined in this Security Agreement will have such defined meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein. The definitions contained in this Security Agreement are applicable to the singular
as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Unless
otherwise indicated, any agreement, instrument or statute defined or referred to herein, or in any agreement or instrument that
is referred to herein, means such agreement, instrument or statute as from time to time amended, modified or supplemented, including
(in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor
statutes and references to all attachments thereto and instruments incorporated therein. References to a Person are also to its
permitted successors and assigns.

 

27.         Assignability.
This Security Agreement shall not be assignable by any Party hereto without the prior written consent of the other Party.

 

28.         Specific
Performance. Each Party agrees that irreparable damage would occur in the event that any of the provisions of this Security
Agreement were not performed by them in accordance with the terms hereof and that each Party shall be entitled to specific performance
of the terms hereof (without the need to post bond or any other security), in addition to any other remedy at law or equity.

 

29.         Expenses.
Each Party shall bear its own costs and expenses in connection with this Security Agreement and the transactions contemplated hereby,
including all legal, accounting, financial advisory, consulting and all other fees and expenses of third parties, except where
specifically provided to the contrary.

 

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30.         Disclosure.
Each Debtor consents to the Secured Party or its Affiliates publicly disclosing this Security Agreement, including by filing such
documents with the Securities and Exchange Commission or the New York Stock Exchange.

 

31.         Independent
Counsel. Each Party certifies that it has read the terms of this Security Agreement, that it understands the terms of this
Security Agreement, and that it is entering into this Security Agreement of its own volition. Each Party warrants and represents
that it has (a) been represented by an attorney of its choice in connection with the Transaction and received independent legal
advice from its attorney regarding its decision with respect to the advisability of making and entering into this Security Agreement,
or (b) had sufficient time, opportunity and means to engage an attorney of its choice in order to be represented by such attorney
in connection with the Transaction and to receive independent legal advice from its attorney regarding its decision with respect
to the advisability of making and entering into this Security Agreement, and has made a knowing and voluntary decision not to do
so.

 

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IN WITNESS WHEREOF,
the Parties have caused this Security Agreement to be duly executed and delivered as of the date first written above.

 

	DFI HOLDINGS, LLC	 	KPS HOLDCO, LLC
	 	 	 
	By:	/s/ Michael P. Duloc	 	By:	/s/ Michael P. Duloc
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: Manager	 	 	Title: Manager
	 	 	 
	KABLE MEDIA SERVICES, INC.	 	KABLE NEWS INTERNATIONAL, INC.
	 	 	 
	By:	/s/ Michael P. Duloc	 	By:	/s/ Michael P. Duloc
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer	 	 	Title: President & Chief Executive Officer
	 	 	 
	KABLE DISTRIBUTION SERVICES, INC.	 	KABLE DISTRIBUTION SERVICES OF CANADA, LTD.
	 	 	 
	By:	/s/ Michael P. Duloc	 	By:	/s/ Michael P. Duloc
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer	 	 	Title: President & Chief Executive Officer
	 	 	 
	KABLE NEWS COMPANY, INC.	 	KABLE PRODUCT SERVICES, INC.
	 	 	 
	By:	/s/ Michael P. Duloc	 	By:	/s/ Michael P. Duloc
	 	Name: Michael P. Duloc	 	 	Name: Michael P. Duloc
	 	Title: President & Chief Executive Officer	 	 	Title: President & Chief Executive Officer
	 	 	 
	American republic investment
    co.	 	 
	 	 	 
	By:	/s/ Peter M. Pizza	 	 
	 	Name: Peter M. Pizza	 	 
	 	Title: Vice President	 	 

 

Signature Page to Security Agreement

(1/1)

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