Document:

Exhibit 10.10

 

Execution Version

 

 

 

 

 

 

PLEDGE AND SECURITY AGREEMENT 

 

dated as of June 2, 2021

 

by and among

 

1847 GOEDEKER INC.,

APPLIANCES CONNECTION INC.,

1 STOP ELECTRONICS CENTER, INC.,

GOLD COAST APPLIANCES INC.,

SUPERIOR DEALS INC.,

JOE’S APPLIANCES LLC, and

YF LOGISTICS LLC

 

and each of the other Grantors party hereto

 

in favor of

 

MANUFACTURERS AND TRADERS TRUST COMPANY

as Collateral Agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	SECTION 1.	Defined Terms.	1
	 	 	 
	SECTION 2.	The Security Interests.	11
	 	 	 
	SECTION 3.	Grantors Remain Obligated.	11
	 	 	 
	SECTION 4.	Representations and Warranties.	12
	(a)	Representations and Warranties of Each Grantor	12
	(b)	Representations and Warranties of Each Grantor	15
	 	 	 
	SECTION 5.	Further Assurances; Covenants.	17
	(a)	General	17
	(b)	Accounts, Etc.	19
	(c)	Equipment, Etc.	20
	(d)	Intellectual Property.	20
	(e)	Deposit Accounts, Chattel Paper, Investment Property and Letters of Credit.	21
	(f)	Commercial Tort Claims	22
	(h)	Material Contracts	22
	(i)	Covenants of Each Grantor	22
	(j)	Other Covenants of Each Grantor	22
	 	 	23
	SECTION 6.	Insurance, Reporting and Recordkeeping.	 
	(a)	Insurance	25
	(b)	Maintenance of Records Generally	25
	(c)	Special Provisions Regarding Maintenance of Records and Reporting Re: Accounts, Inventory and Equipment	25
	(d)	Further Identification of Collateral	25
	(e)	Notices	25

 

     

     

    

 

	SECTION 7.	General Authority.	26
	 	 	 
	SECTION 8.	Remedies Upon an Event of Default.	27
	 	 	 
	SECTION 9.	Limitation on the Collateral Agent’s Duty in Respect of Collateral.	30
	 	 	 
	SECTION 10.	Application of Proceeds.	31
	 	 	 
	SECTION 11.	Appointment of Co-Agents.	31
	 	 	 
	SECTION 12.	Indemnity; Expenses.	31
	 	 	 
	SECTION 13.	Security Interest Absolute.	32
	 	 	 
	SECTION 14.	Additional Grantors.	33
	 	 	 
	SECTION 15.	Termination of Security Interests; Release of Collateral.	33
	 	 	 
	SECTION 16.	Reinstatement.	34
	 	 	 
	SECTION 17.	Notices.	34
	 	 	 
	SECTION 18.	No Waiver; Remedies Cumulative.	34
	 	 	 
	SECTION 19.	Successors and Assigns.	34
	 	 	 
	SECTION 20.	Reserved.	
	 	 	 
	SECTION 21.	Amendments.	35
	 	 	 
	SECTION 22.	Governing Law; Waiver of Jury Trial.	35
	 	 	 
	SECTION 23.	Severability.	36
	 	 	 
	SECTION 24.	Counterparts.	36
	 	 	 
	SECTION 25.	Headings Descriptive; Interpretation.	36

 

	Schedule 1	-	Commercial Tort Claims
	Schedule 2	-	Pledged Debt Instruments
	Schedule 3	-	Pledged Equity Interests
	Schedule 4	-	State of Organization; Organizational Identification Number; Legal Name
	Schedule 5	-	Names; Trade Names; Merger Partners
	Schedule 6	-	Chief Executive Office; Mailing Addresses; Locations of Collateral and Collateral Records
	Schedule 7	-	Deposit / Investment Accounts
	Schedule 8	-	Letters of Credit
	Schedule 9	-	Intellectual Property 
	 	 	 
	Exhibit A	-	Form of Copyright Security Agreement
	Exhibit B	-	Form of Patent and Trademark Security Agreement
	Exhibit C	-	Form of Uncertificated Securities Control Agreement
	Exhibit D	-	Form of Pledge and Security Agreement Supplement

 

     

     

    

 

PLEDGE AND SECURITY AGREEMENT

 

THIS PLEDGE AND SECURITY
AGREEMENT (this “Agreement”) dated as of June 2, 2021 by and among 1847 GOEDEKER INC., a Delaware corporation
(“Goedeker”), APPLIANCES CONNECTION INC., a Delaware corporation (“Appliances” and together
with Goedeker, each a “Borrower” and collectively, the “Borrowers”), 1 STOP ELECTRONICS CENTER,
INC., a New York corporation (“1 Stop”), GOLD COAST APPLIANCES INC., a New York corporation (“Gold
Coast”), SUPERIOR DEALS INC., a New York corporation (“Superior Deals”), JOE’S APPLIANCES
LLC, a New York limited liability company (“Joe’s”), YF LOGISTICS LLC, a New Jersey limited liability
company (“YF Logistics”) and such other Subsidiaries from time to time a party hereto pursuant to Section 14 hereof
(such Subsidiaries, together with the Borrowers, 1 Stop, Gold Coast, Superior Deals, Joe’s and YF Logistics, each a “Grantor”
and collectively the “Grantors”), in favor of MANUFACTURERS AND TRADERS TRUST COMPANY, as Administrative Agent
and Collateral Agent (in such respective capacities, the “Administrative Agent” and “Collateral Agent”)
for the benefit of itself and the other Secured Parties.

 

W I T N E S S E T H:

 

WHEREAS, the Grantors,
certain other Subsidiaries of the Borrowers, the Lenders from time to time party thereto (the “Lenders”), and the Administrative
Agent are all party to that certain Credit and Guaranty Agreement dated as of the date hereof (as amended, restated, modified, extended,
renewed, replaced, supplemented, and/or refinanced, the “Credit Agreement”) pursuant to which the Lenders have established
a secured credit facility in favor of the Borrowers upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrowers
and the other Grantors are members or an affiliated group of companies engaged in related businesses, and each Grantor will derive substantial
direct and indirect benefit from the making of the extensions of credit under the Credit Agreement;

 

WHEREAS, it is a condition
precedent to the obligations of the Secured Parties pursuant to the Credit Agreement that each Grantor enter into this Agreement in favor
of the Collateral Agent for the benefit of the Secured Parties; and

 

WHEREAS, each Grantor
desires to execute this Agreement to satisfy the conditions described immediately above.

 

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

 

SECTION 1. Defined Terms.

 

(a) Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein have the respective meanings given them in the Credit
Agreement.

 

(b) The
following terms, when used in this Agreement, shall have the following meanings:

 

“Account Debtor” shall
have the meaning ascribed to such term in the UCC.

 

     

     

    

 

“Accounts”
shall mean, for any Person, all “accounts” (as defined in the UCC), now or hereafter owned or acquired by such Person or in
which such Person now or hereafter has or acquires any rights and, in any event, shall mean and include, without limitation, (a) any
and all receivables, including, without limitation, all accounts created by, or arising from, all of such Person’s sales, leases,
rentals or other dispositions of Goods or renditions of services to its customers (whether or not they have been earned by performance),
including but not limited to, those accounts arising from sales, leases, rentals or other dispositions of Goods or rendition of services
made under any of the trade names, logos or styles of such Person, or through any division of such Person; (b) Instruments, Documents,
Chattel Paper, Contracts, Contract Rights, acceptances, and tax refunds relating to any of the foregoing or arising therefrom; (c) unpaid
seller’s rights (including rescission, replevin, reclamation, repossession and stoppage in transit) relating to any of the foregoing
or arising therefrom; (d) rights to any Goods relating to any of the foregoing or arising therefrom, including rights to returned, reclaimed
or repossessed Goods; (e) reserves and credit balances relating to any of the foregoing or arising therefrom; (f) Supporting Obligations
and Letter-of-Credit Rights relating to any of the foregoing or arising therefrom; (g) insurance policies or rights relating to any of
the foregoing; (h) General Intangibles relating to any of the foregoing or arising therefrom, including, without limitation, all payment
intangibles and other rights to payment and books and records and any electronic media and software relating thereto; (i) notes, deposits
or property of Account Debtors relating to any of the foregoing or arising therefrom securing the obligations of any such Account Debtors
to such Person; (j) healthcare insurance receivables; and (k) cash and non-cash Proceeds of any and all of the foregoing.

 

“Additional Pledged
Collateral” means any Pledged Collateral acquired by any Grantor after the date hereof and in which a Security Interest is granted
pursuant to Section 2, including, to the extent a Security Interest is granted therein pursuant to such Section 2, (i) all
additional Indebtedness from time to time owed to any Grantor by any obligor on the Pledged Debt Instruments and the Instruments evidencing
such Indebtedness and (ii) all interest, cash, Instruments and other property or Proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any of the foregoing.

 

“Agreement”
means this Pledge and Security Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto.

 

“Chattel Paper”
shall mean all “chattel paper” (as defined in the UCC) now owned or hereafter acquired by any Grantor or in which any Grantor
has or acquires any rights, or other receipts of any Grantor, evidencing or representing rights or interest in such chattel paper.

 

“Collateral”
shall mean, collectively, each Grantor’s right, title and interest in and to each of the following, wherever located and whether
now or hereafter existing or now owned or hereafter acquired or arising:

 

		(i)	all Accounts;

 

		(ii)	all Chattel Paper (whether tangible or electronic);

 

		(iii)	all Contracts;

 

		(iv)	all Contract Rights;

 

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		(v)	all Deposit Accounts;

 

		(vi)	all Documents;

 

		(vii)	all Equipment and other machinery;

 

		(viii)	all Fixtures;

 

		(ix)	all General Intangibles;

 

		(x)	all Instruments;

 

		(xi)	all Intellectual Property;

 

		(xii)	all Inventory;

 

		(xiii)	all Investment Property;

 

		(xiv)	all Real Estate Assets;

 

		(xv)	all Software;

 

		(xvi)	all Commercial Tort Claims set forth on Schedule 1 or otherwise disclosed in writing to the Collateral
Agent;

 

		(xvii)	all money, cash or cash equivalents;

 

		(xviii)	all vehicles;

 

		(xix)	all Supporting Obligations and Letter-of-Credit Rights;

 

		(xx)	all other Goods and personal property, whether tangible or intangible and whether or not delivered;

 

		(xxi)	all substitutes and replacements for, accessories, attachments, and other additions to, any of the above
and all products or masses into which any Goods are physically united such that their identity is lost;

 

		(xxii)	all Collateral Records;

 

		(xxiii)	all policies and certificates of insurance relating to any of the foregoing, now owned or hereafter acquired,
evidencing or pertaining to any and all items of Collateral; and

 

		(xxiv)	all products and Proceeds of all or any of the Collateral described above (including, but not limited
to, any claim to any item referred to in this definition, and any claim against any third party for loss of, damage to or destruction
of any or all of the Collateral or for proceeds payable under, or unearned premiums with respect to, policies of insurance) in whatever
form, including, but not limited to, cash, Instruments, Chattel Paper, security agreements and other documents.

 

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Anything in this Agreement to the contrary notwithstanding,
“Collateral” shall not include any Excluded Property; provided, however, that if and when any property
shall cease to be Excluded Property, such property shall be deemed at all times from and after the date hereof to constitute Collateral.
When the term “Collateral” is used without reference to a Grantor, then it shall be deemed to be a collective reference to
the “Collateral” of all Grantors.

 

“Collateral Records”
shall mean books, records, ledger cards, files, correspondence, customer lists, supplier lists, blueprints, technical specifications,
manuals, computer software and related documentation, computer printouts, tapes, disks and other electronic storage media and related
data processing software and similar items that at any time evidence or contain information relating to any of the Collateral or showing
the amounts thereof or payments thereon or are otherwise necessary or helpful in the collection thereof or realization thereupon.

 

“Commercial Tort Claims”
shall mean, as to any Person, all “commercial tort claims” as such term is used in the UCC in or under which such Person may
now or hereafter have any right, title or interest.

 

“Contract Rights”
means, as to any Person, all of such Person’s then owned or existing and future acquired or arising rights under Contracts not yet
fully performed and not evidenced by an Instrument or Chattel Paper, to the extent that the same may lawfully be assigned.

 

“Contracts”
means, as to any Person, all “contracts” as such term is used in the UCC, and, in any event shall mean and include, without
limitation, all of such Person’s then owned or existing and future acquired or arising contracts, undertakings or agreements (other
than rights evidenced by Chattel Paper, Documents or Instruments) in or under which such Person may now or hereafter have any right, title
or interest, including, without limitation, any agreement relating to Inventory, the terms of payment or the terms of performance of any
Account or any other Collateral.

 

“Copyright License” shall mean,
as to any Person, any and all rights of such Person under any license, contract or other agreement, whether written or oral, granting
any right to use any Copyright, including, without limitation, the grant of any right to copy, publicly perform, create derivative works,
manufacture, distribute, exploit or sell materials derived from any Copyright.

 

“Copyright Security
Agreement” shall mean a Copyright Security Agreement, substantially in the form of Exhibit A hereto, executed and
delivered by any Grantor granting a Security Interest in its Copyrights, as may be amended, modified or supplemented, from time to time,
in accordance with its terms.

 

“Copyrights”
shall mean, as to any Person, all of the following now owned or hereafter acquired by such Person or in which any Grantor now has or hereafter
acquires any rights, priorities and privileges, including, without limitation, all rights to sue at law or in equity for any infringement
or other impairment thereof, including the right to receive all Proceeds and damages therefrom, whether arising under United States, multinational
or foreign laws or otherwise: (a) all copyrights and General Intangibles of like nature (whether registered or unregistered), all registrations
and recordings thereof, and all applications in connection therewith, including all registrations, recordings and applications in the
United States Copyright Office or in any similar office or agency of the United States, any state or territory thereof, or any other country
or any political subdivision thereof, and (b) all reissues, extensions or renewals thereof.

 

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“Credit Agreement”
shall have the meaning given to that term in the recitals hereto.

 

“Deposit Accounts”
shall mean, as to any Person, all “deposit accounts” (as defined in the UCC) now owned or hereafter acquired by such Person,
or in which such Person has or acquires any rights, or other receipts, covering, evidencing or representing rights or interest in such
deposit accounts, and, in any event, shall mean and include, without limitation, all of such Person’s demand, time, savings, passbook,
money market or like depositor accounts and all certificates of deposit, maintained with a bank, savings and loan association, credit
union or like organization (other than an account evidenced by a certificate of deposit that is an Instrument).

 

“Documents”
shall mean, as to any Person, all “documents” (as defined in the UCC) now owned or hereafter acquired by such Person or in
which such Person has or acquires any rights, or other receipts, covering, evidencing or representing Goods, and, in any event shall mean
and include, without limitation, all of such Person’s certificates or documents of origin and of title, warehouse receipts and manufacturers
statements of origin.

 

“Equipment”
shall mean, as to any Person, all “equipment” (as defined in the UCC) now owned or hereafter acquired by such Person and wherever
located, and, in any event, shall mean and include, without limitation, all machinery, apparatus, equipment, furniture, furnishings, processing
equipment, conveyors, machine tools, engineering processing equipment, manufacturing equipment, materials handling equipment, trade fixtures,
trucks, tractors, rolling stock, fittings, trailers, forklifts, vehicles, computers and other electronic data processing, other office
equipment of such Person, and all other tangible personal property (other than Inventory) of every kind and description used in such Person’s
business operations or owned by such Person or in which such Person has an interest and any and all additions, substitutions and replacements
of any of the foregoing, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto,
all fuel therefor and all manuals, drawings, instructions, warranties and rights with respect thereto.

 

“Excluded Property”
means, collectively, (i) any permit, lease, license, contract, instrument or other agreement held by any Grantor that prohibits, or requires
the consent of any Person other than a Grantor or any Affiliate thereof as a condition to the creation by such Grantor of a Lien thereon
and such consent has not been obtained, or any permit, lease, license contract or other agreement held by any Grantor to the extent that
any applicable law prohibits the creation of a Lien thereon, but only, in each case, to the extent, and for so long as, such prohibition
is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other applicable law, (ii) any “intent
to use” Trademark applications for which a statement of use has not been filed (but only until such statement is filed), (iii) any
Deposit Account exclusively used for all or any of payroll, (iv) Equipment owned by any Grantor that is subject to a Lien securing a purchase
money obligation or Capital Lease obligation to the extent permitted under the Credit Agreement if the contract or other agreement in
which such Lien is granted (or in the documentation providing for such Capital Lease) prohibits or requires the consent of any Person
other than a Grantor or any Affiliate thereof as a condition to the creation of any other Lien on such Equipment and such consent has
not been obtained and (v) property financed by Northpoint Commercial Finance LLC and subject to the Lien in favor of Northpoint Commercial
Finance LLC under that certain Loan and Security Agreement, to be dated on or about June 2, 2021, by and between Northpoint Commercial
Finance LLC and Goedeker (the “Northpoint Agreement”) in substantially the same form as that provided to the Collateral
Agent on the date hereof, in each case, solely to the extent the Indebtedness and Lien are permitted by Sections 6.01(j) and 6.02(m) of
the Credit Agreement respectively and only if the grant of a security interest therein would violate or invalidate the Northpoint Agreement
after giving effect to the applicable anti-assignment provisions of the UCC or other applicable Requirements of Law; provided,
however, that Excluded Property shall not include any Proceeds, substitutions or replacements of any Excluded Property referred
to above (unless such Proceeds, substitutions or replacements would constitute “Excluded Property” as defined above) provided,
further, that if and when (1) the granting of such security interest is not so prohibited, or (2) upon the consent of any
holder of a Lien of the type described in clause (i) or (iv) above, the Collateral Agent will be deemed to have, and at all times to have
had, a Security Interest in such Excluded Property.

 

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“General Intangibles”
shall mean, as to any Person, all “general intangibles” (as defined in the UCC) now owned or hereafter acquired by such Person
or in which such Person has or acquires any rights and, in any event, shall mean and include, without limitation, all right, title and
interest in or under all contracts, all customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefor and reissues,
extensions or renewals thereof, rights in Intellectual Property, interests in partnerships, joint ventures and other business associations,
licenses, permits, copyrights, trade secrets, proprietary or confidential information, inventions (whether or not patented or patentable),
technical information, procedures, designs, blueprints, plans, specifications, knowledge, know-how, software, data bases, data, skill,
expertise, experience, processes, models, drawings, materials and records, goodwill (including the goodwill associated with any Trademark
or Trademark License), computer software, all rights and claims in or under insurance policies (including insurance for fire, damage,
loss and casualty, whether covering personal property, real property, tangible rights or intangible rights, all liability, life, key man
and business interruption insurance, and all unearned premiums), reversions and any rights thereto and any other amounts payable to such
Person from any benefit plan, multiemployer plan or other employee benefit plan, uncertificated securities, chooses in action, deposit,
checking and other bank accounts, rights to receive tax refunds and other payments, rights of indemnification, all books and records,
correspondence, credit files, invoices, tapes, cards, computer runs, domain names, prospect lists, customer lists and other papers and
documents.

 

“Goods” shall
mean, as to any Person, all “goods” (as defined in the UCC), now owned or hereafter acquired and, in any event, shall mean
and include, without limitation, all of such Person’s then owned or existing and future acquired or arising movables, Fixtures,
Equipment, Inventory and other tangible personal property.

 

“Grantor”
and “Grantors” shall have the meaning given to each term in the introductory paragraph hereof and shall include their
respective successors and assigns.

 

“Instruments”
shall mean, as to any Person, all “instruments” (as defined in the UCC) now owned or hereafter acquired by such Person or
in which such Person has or acquires any rights and, in any event, shall mean and include, without limitation, all promissory notes, all
certificates of deposit and all letters of credit evidencing, representing, arising from or existing in respect of, relating to, securing
or otherwise supporting the payment of, any of the Accounts or other obligations owed to such Person.

 

“Intellectual Property”
shall mean, as to any Person, all of the following now owned or hereafter acquired by such Person or in which such Person has or acquires
any rights, priorities and privileges, including, without limitation, all rights to sue at law or in equity for any infringement or other
impairment thereof, including the right to receive all Proceeds and damages therefrom, whether arising under United States, multinational
or foreign laws or otherwise: (a) all Patents, patent rights and patent applications, Copyrights and copyright applications, Trademarks,
trademark rights, trade secrets, internet domain names, trade names, trade name rights, service marks, service mark rights, applications
for registration of trademarks, trade names and service marks, fictitious names registrations and trademark, trade name, service mark
registrations and work product, and all derivations thereof; and (b) Patent Licenses, Trademark Licenses, Copyright Licenses and other
licenses to use any of the items described in the preceding clause (a).

 

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“Inventory”
shall mean, as to any Person, all “inventory” (as defined in the UCC) now owned or hereafter acquired by such Person or in
which such Person has or acquires any rights and, in any event, shall mean and include, without limitation, (i) inventory, merchandise,
Goods and other personal property intended for sale or lease or for display or demonstration, (ii) work in process, (iii) raw materials
and other materials and supplies of every nature and description used or which might be used in connection with the manufacture, packing,
shipping, advertising, selling, leasing or furnishing of the foregoing or otherwise used or consumed in the conduct of business and (iv)
Documents evidencing, and General Intangibles relating to, any of the foregoing.

 

“Investment Accounts”
shall mean any and all “securities accounts” (as defined in the UCC), brokerage accounts and commodities accounts now owned
or hereafter acquired by such Person, or in which such Person has or acquires any rights.

 

“Investment Property”
shall mean, as to any Person, all “investment property” (as defined in the UCC) now owned or hereafter acquired by such Person
or in which such Person has or acquires any rights and, in any event, shall mean and include, without limitation, (i) all “certificated
securities”, “uncertificated securities”, “security entitlements”, “securities accounts”, “commodity
contracts” and “commodity accounts” (as all such terms are defined in the UCC) of such Person (ii) any other securities,
whether certificated or uncertificated, including, but not limited to, stocks, bonds, interests in limited liability companies, partnership
interests, treasuries, certificates of deposit, and mutual fund shares; (iii) all securities entitlements of such Person, including, but
not limited to, the rights of such Person to any Investment Accounts and the financial assets held by a financial intermediary in such
accounts and any free credit balance or other money owing by any financial intermediary with respect to such accounts; (iv) all commodity
contracts of such Person; and (v) all Investment Accounts of such Person, and shall in any event, include all Pledged Equity Interests
of such Person.

 

“Issuers”
shall mean the collective reference to each of the Persons identified on Schedule 3 as the issuers of Pledged Equity Interests,
together with any successors to such Persons (including, without limitation, any successor contemplated by the Credit Agreement).

 

“Lenders”
shall have the meaning given to that term in the recitals hereto and shall include their respective successors and assigns.

 

“Letter-of-Credit Rights”
shall mean, as to any Person, “letter-of-credit rights” (as defined in the UCC), now owned or hereafter acquired by such Person,
and, in any event, shall mean and include, without limitation, rights to payment or performance under a letter of credit, whether or not
such Person, as beneficiary, has demanded or is entitled to demand payment or performance.

 

“License”
shall mean, as to any Person, any Copyright License, Patent License, Trademark License or other license of rights or interests of such
Person in Intellectual Property.

 

“Patent License”
shall mean, as to any Person, any and all rights of such Person under any license, contract or other agreement, whether written or oral,
granting any right with respect to any property, process or other invention on which a Patent is in existence.

 

“Patent and Trademark
Security Agreement” shall mean a Patent and Trademark Security Agreement, substantially in the form of the Exhibit B
hereto, executed and delivered by any Grantor granting a Security Interest in any of its Patents and Trademarks, as may be amended, modified
or supplemented, from time to time, in accordance with its terms.

 

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“Patents”
shall mean, as to any Person, all of the following now owned or hereafter acquired by such Person or in which such Person has or acquires
any rights, priorities and privileges, including, without limitation, all rights to sue at law or in equity for any infringement or other
impairment thereof, including the right to receive all Proceeds and damages therefrom, whether arising under United States, multinational
or foreign laws or otherwise: (a) all letters patent of the United States, any other country or any political subdivision thereof, all
registrations, issuances and recordings thereof, and all applications for letters patent of the United States or any other country, including
registrations, issued patents, recordings and applications for letters patent in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any state or territory thereof, or any other country; and (b) all reissues, continuations,
continuations-in-part and extensions thereof.

 

“Pledged Collateral”
shall mean, collectively, Pledged Debt Instruments, Pledged Equity Interests, all chattel paper, certificates or other instruments representing
any of the foregoing, all Security Entitlements of any Grantor in respect of any of the foregoing, and any Proceeds thereof. Pledged Collateral
may be General Intangibles, Instruments or Investment Property.

 

“Pledged Debt Instruments”
shall mean all right, title and interest of any Grantor in Instruments evidencing any Indebtedness owed to such Grantor, including all
Indebtedness described on Schedule 2, issued by the obligors named therein.

 

“Pledged Equity Interests”
shall mean, in each case to the extent constituting Collateral, all Pledged Stock, Pledged LLC Interests and Pledged Partnership Interests.

 

“Pledged LLC Interests”
shall mean, with respect to any Grantor, all interests in any limited liability company including, without limitation, all limited liability
company interests listed on Schedule 3 as held by such Grantor under the heading “Pledged LLC Interests” (as such schedule
may be amended or supplemented from time to time) and the certificates, if any, representing such limited liability company interests
and any interest of such Grantor on the books and records of such limited liability company or on the books and records of any Securities
Intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and
other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of such limited liability company interests.

 

“Pledged Partnership
Interests” shall mean, with respect to any Grantor, all interests in any general partnership, limited partnership, limited liability
partnership or other partnership including, without limitation, all partnership interests listed on Schedule 3 as held by such
Grantor under the heading “Pledged Partnership Interests” (as such schedule may be amended or supplemented from time to time)
and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such
partnership or on the books and records of any Securities Intermediary pertaining to such interest and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such partnership interests.

 

“Pledged Stock”
shall mean, with respect to any Grantor, all shares of Capital Stock of any corporation, including, without limitation, all shares listed
on Schedule 3 as held by such Grantor under the heading “Pledged Stock” (as such schedule may be amended or supplemented
from time to time pursuant to the terms hereof), together with any other shares, stock certificates, options or rights of any nature whatsoever
in respect of the Capital Stock of any corporation that may be issued or granted to, or held by, such Grantor while this Agreement is
in effect.

 

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“Proceeds”
shall mean all proceeds (including proceeds of proceeds) of any of the Collateral including all: (i) rights, benefits, distributions,
premiums, profits, dividends, interest, cash, Instruments, Documents, Accounts, contract rights, Inventory, Equipment, General Intangibles,
Payment Intangibles, Deposit Accounts, Chattel Paper, and other property from time to time received, receivable, or otherwise distributed
in respect of or in exchange for, or as a replacement of or a substitution for, any of the Collateral, or proceeds thereof; (ii) “proceeds,”
as such term is defined in Section 9-102(a)(64) of the UCC; (iii) proceeds of any insurance, indemnity, warranty, or guaranty (including
guaranties of delivery) payable from time to time with respect to any of the Collateral, or proceeds thereof; and (iv) payments (in
any form whatsoever) made or due and payable to a Grantor from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral, or proceeds thereof.

 

“Security Interests”
shall mean the security interests granted to the Collateral Agent for the benefit of the Secured Parties pursuant to Section 2 as well
as all other security interests created or assigned as additional security for the Secured Obligations pursuant to the provisions of this
Agreement.

 

“Secured Obligations”
shall mean all Obligations, and shall in any event include (i) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy
Code, would become due), indebtedness and liabilities and all indemnities, fees and interest thereon (and all interest that accrues after
the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding
of any Grantor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed
in any such case, proceeding or other action) of any Grantor owing to the Secured Parties (or, in the case of any Hedge Agreement or Bank
Products, any Affiliate of any Secured Party), now existing or hereafter incurred under, arising out of or in connection with the Credit
Agreement, any Loan Document, Bank Product or any Hedge Agreement entered into by any Grantor with any Secured Party (or an Affiliate
of any Secured Party) and the due performance and compliance by each Grantor with the terms, conditions and agreements of the Credit Agreement
and each such Loan Document, Bank Product and Hedge Agreement; (ii) any and all sums incurred or advanced by the Collateral Agent in order
to preserve the Collateral or preserve its Security Interest in the Collateral; and (iii) in the event of any proceeding for the collection
or enforcement of any indebtedness, obligations or liabilities of each Grantor referred to in preceding clause (i) after an Event of Default
shall have occurred and be continuing, the expenses of re-taking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys’
fees and court costs. It is acknowledged and agreed that “Secured Obligations” shall include obligations and liabilities of
the types described above, whether outstanding on the date of this Agreement or extended, from time to time, after the date of this Agreement.

 

“Software”
shall mean, as to any Person, all “software” (as defined in the UCC), now owned or hereafter acquired by such Person, including
all computer programs and all supporting information provided in connection with a transaction related to any program.

 

“Supporting Obligations”
shall mean, as to any Person, all “supporting obligations” (as defined in the UCC), now owned or hereafter acquired by such
Person, and, in any event, shall mean and include, without limitation, letters of credit and guaranties issued in support of Accounts,
Chattel Paper, Documents, General Intangibles, Instruments, Investment Property and all of such Person’s mortgages, deeds to secure
debt and deeds of trust on real or personal property, guaranties, leases, security agreements, and other agreements and property which
secure or relate to any collateral, or are acquired for the purpose of securing and enforcing any item thereof.

 

    9

     

    

 

“Trademark License”
shall mean, as to any Person, any and all rights of such Person under any license, contract or other agreement, whether written or oral,
granting any right to use any Trademark.

 

“Trademarks”
shall mean, as to any Person, all of the following, now owned or hereafter acquired by such Person or in which such Person has or acquires
any such rights, priorities and privileges, including, without limitation, all rights to sue at law or in equity for any infringement
or other impairment thereof, including the right to receive all Proceeds and damages therefrom, whether arising under United States, multinational
or foreign laws or otherwise: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names,
trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared
or appear, designs and general intangibles of like nature (whether registered or unregistered), now owned or existing or hereafter adopted
or acquired, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States,
any state or territory thereof or any other country or any political subdivision thereof, (ii) all reissues, extensions or renewals thereof
and (iii) all goodwill associated with or symbolized by any of the foregoing.

 

“UCC” shall
mean the Uniform Commercial Code as in effect, from time to time, in the State of New York; provided, that if by reason of mandatory
provisions of law, the perfection or the effect of perfection or non-perfection of the Security Interests in any Collateral is governed
by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection
or non-perfection.

 

“Uncertificated Securities
Control Agreement” means a letter agreement, substantially in the form of Exhibit C hereto, executed by each Grantor,
the Collateral Agent and each Issuer in which a Grantor owns any Pledged Equity Interests.

 

“United States”
shall mean the United States of America, any of the fifty states thereof, and the District of Columbia.

 

(c) Terms
used herein without definition that are defined in the UCC have the respective meanings given them in the UCC and if defined in more than
one article of the UCC, such terms shall have the meaning defined in Article 9 of the UCC, including the following terms (which are capitalized
herein):

 

“As-Extracted
Collateral”

“Certificated
Security”

“Commodit[ies]
Intermediary”

“Commodity Account”

“Control Account”

“Electronic
Chattel Paper”

“Farm Products”

“Financial Asset”

“Fixtures”

“Manufactured
Homes”

 

    10

     

    

 

“Securities
Account”

“Securities
Intermediary”

“Security”

“Security Entitlement”

“Uncertificated
Security”

 

(d) In
this Agreement, in the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding” and the
word “through” means “to and including.” The terms “herein,” “hereof,” “hereto”
and “hereunder” and similar terms refer to this Agreement as a whole and not to any particular Article, Section, subsection
or clause in this Agreement. Unless otherwise noted, references herein to an Annex, Schedule, Section, subsection or clause refer to the
appropriate Annex or Schedule to, or Section, subsection or clause in this Agreement. The meanings given to terms defined herein shall
be equally applicable to both the singular and plural forms of such terms. Where the context requires, provisions relating to any Collateral,
when used in relation to a Grantor, shall refer to such Grantor’s Collateral or any relevant part thereof. Any reference in this
Agreement to a Loan Document shall include all appendices, exhibits and schedules thereto, and, unless specifically stated otherwise all
amendments, restatements, supplements or other modifications thereto, and as the same may be in effect at any time such reference becomes
operative. The term “including” means “including without limitation” except when used in the computation of time
periods.

 

SECTION 2. The Security
Interests.

 

(a)  As
security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise)
of all of its Secured Obligations, each Grantor does hereby mortgage, pledge, assign, hypothecate, set over and convey unto the Collateral
Agent, for the benefit of the Secured Parties, and does hereby grant to the Collateral Agent, for the benefit of the Secured Parties,
a First Priority continuing Lien on and Security Interest in all of the right, title and interest of such Grantor in, to and under all
of the Collateral (and all rights therein) whether now existing or hereafter, from time to time, acquired.

 

(b) The
Security Interests of the Collateral Agent under this Agreement extend to all Collateral that any Grantor may acquire, at any time, during
the continuation of this Agreement.

 

SECTION 3. Grantors
Remain Obligated. Notwithstanding any other provision of this Agreement to the contrary, (a) each Grantor shall remain liable
to observe and perform all the conditions and obligations to be observed and performed by it under each and every contract or other agreement
included as part of the Collateral, all in accordance with the terms of each such contract and agreement, (b) neither the Collateral
Agent nor any Secured Party shall have any obligation or liability under any contract or other agreement included as part of the Collateral,
by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any Secured Party of any payment relating thereto,
(c) the exercise by the Collateral Agent of any rights under this Agreement or otherwise in respect of the Collateral shall not release
any Grantor from its obligations under any contract or other agreement included as part of the Collateral and (d) neither the Collateral
Agent nor any Secured Party shall be obligated to take any of the following actions with respect to any contract or other agreement included
as part of the Collateral: (i) perform any obligation of any Grantor, (ii) make any payment, (iii) make any inquiry as
to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party, (iv) present
or file any claim or (v) take any action to enforce any performance or to collect the payment of any amounts that may have been assigned
to it or to which it may be entitled at any time or times.

 

    11

     

    

 

SECTION 4. Representations
and Warranties.

 

(a) Representations
and Warranties of Each Grantor. Each Grantor represents and warrants to the Collateral Agent, for the benefit of the Secured Parties,
as follows:

 

(i) Such
Grantor owns and has good and marketable title to all of its Collateral, free and clear of any Liens other than Permitted Liens and has
rights in and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder.

 

(ii) Such
Grantor has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform this Agreement in
accordance with its terms. The execution, delivery and performance of this Agreement in accordance with its terms, including the granting
of the Security Interest hereunder, do not and will not, by the passage of time, the giving of notice, or both: (A) require any consent
or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made
and are in full force and effect, and except for filings required by applicable securities laws and regulations, which filings have been
made or will be made on or prior to the date on which such filings are required to be made; (B) violate any law applicable to any
Grantor, any of the Organizational Documents of any Grantor, or any judgment, order or ruling of any Governmental Authority binding on
any Grantor; (C) violate or result in a default under any indenture, Material Contract or other material instrument binding on any
Grantor or any of its assets or give rise to a right thereunder to require any payment to be made by any Grantor; nor (D) result in or
require the creation or imposition of any Lien upon any of the properties or assets of any Grantor (other than any Liens created under
any of the Loan Documents in favor of Collateral Agent) whether now owned or hereafter acquired.

 

(iii) The
Security Interests shall constitute a legal, valid and perfected security interest in favor of the Collateral Agent, for the benefit of
the Secured Parties, in the Collateral, including the Intellectual Property, required to be perfected in accordance with the terms of
the Loan Documents and for which perfection is governed by the UCC or, to the extent applicable, filing with the United States Patent
and Trademark Office or the United States Copyright Office upon (A) in the case of Collateral in which a security interest may be perfected
by filing a financing statement under the UCC, the completion of the filings and other actions specified in opinions of counsel delivered
to the Collateral Agent on the Closing Date, (B) the delivery to the Collateral Agent of all Collateral consisting of Instruments and
Investment Property in certificated form, in each case properly endorsed for transfer to the Collateral Agent or in blank, and (C) to
the extent not subject to Article 9 of the UCC, upon recordation or other appropriate filings of the Security Interests, to the extent
applicable, in Patents, Trademarks and Copyrights in the applicable intellectual property registries, including, but not limited to, the
United States Copyright Office and the United States Patent and Trademark Office. The Security Interests constitute or will constitute,
upon satisfaction of such filings, registrations and recordings, a First Priority security interest therein superior and prior to the
rights of all other Persons therein (other than as specified in the definition of First Priority as set forth in the Credit Agreement)
and subject to no other Liens (other than Permitted Liens) and are entitled to all the rights, priorities and benefits afforded by the
UCC or other relevant law as enacted in any relevant jurisdiction to perfected security interests.

 

(iv) Other
than financing statements, security agreements, or other similar or equivalent documents or instruments with respect to Permitted Liens,
no financing statement, mortgage, security agreement or similar or equivalent document or instrument evidencing a Lien on all or any part
of the Collateral is on file or of record in any jurisdiction. None of the Collateral is in the possession of a Person asserting any claim
thereto or security interest therein, except that the Collateral Agent or its designee may have possession of Collateral as contemplated
hereby.

 

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(v) All
Inventory and Equipment is insured in accordance with the requirements set forth in the Loan Documents.

 

(vi) Each
Grantor (A) is a corporation, limited liability company, limited partnership or limited liability partnership duly organized, validly
existing and/or in good standing (as applicable) under the laws of the state or jurisdiction of its organization as set forth on Schedule
4 hereto, (B) has all requisite power and authority to conduct its business as now conducted and as presently contemplated and
to execute, deliver and perform this Agreement and, (C) is duly qualified to do business and is in good standing in each jurisdiction
in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary,
other than in such jurisdictions where the failure to be so qualified and in good standing could not reasonably be expected to have a
Material Adverse Effect.

 

(vii) This
Agreement, when executed and delivered, will be, a legal, valid and binding obligation of such Grantor, enforceable against such Grantor
in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

(viii) None
of the Collateral constitutes, or is the Proceeds of Farm Products, As-Extracted Collateral, Manufactured Homes, timber to be cut, or
aircraft, aircraft engines, satellites, ships or railroad rolling stock. No material portion of the Collateral consists of motor vehicles
or other goods subject to certificate of title statutes of any jurisdiction.

 

(ix) Schedule
4 correctly sets forth, as of the date hereof, each Grantor’s state of organization, organizational identification number and
correct legal name as indicated on the public record of such Grantor’s jurisdiction of organization.

 

(x) Schedule 5
correctly sets forth, as of the date hereof, all names that each Grantor has used within the last five (5) years and the names of all
Persons that have merged into or been acquired by such Grantor.

 

(xi) Schedule 6
correctly sets forth, as of the Closing Date, (A) each Grantor’s chief executive office, (B) each location where the Collateral
Records are maintained, (C) all other locations where tangible assets of each Grantor are located, including, without limitation, Inventory
and Equipment, (D) all third parties with possession of any Inventory or Equipment owned by any Grantor, (E) each Grantor’s
mailing address (if different from the chief executive office) and (F) all trade names that each Grantor has used within the last
five (5) years.

 

(xii) Schedule 7
correctly sets forth, as of the date hereof, the name and address of each bank or institution at which any Grantor maintains Deposit Accounts
or Investment Accounts, in addition to the type of account and account number for each Deposit Account and Investment Account.

 

(xiii) Schedule 8
correctly sets forth, as of the date hereof, all letters of credit under which any Grantor is a beneficiary, and Grantor has obtained
the consent of each issuer of any letter of credit to the assignment of the Proceeds of the letter of credit to the Collateral Agent.

 

    13

     

    

 

(xiv) Schedule 4.14
of the Credit Agreement sets forth all of the Material Contracts to which such Grantor has rights. The Material Contracts, true and complete
copies (including any amendments or supplements thereof) of which have been furnished to the Collateral Agent, have been duly authorized,
executed and delivered by each Grantor party thereto, are in full force and effect and are binding upon and enforceable against each Grantor
party thereto in accordance with their respective terms except as may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability. There
exists no default under any Material Contract by any such Grantor, and to such Grantor’s knowledge, no Person party thereto has
any defenses, counterclaims, or right of setoff with respect to any Material Contract. No Material Contract set forth on Schedule 4.14
of the Credit Agreement requires the consent of or notice to any Person in connection with the granting of a Lien in favor of the Collateral
Agent on, or assignment in favor of the Collateral Agent of, the rights any Grantor thereunder.

 

(xv) Schedule
1 correctly sets forth, as of the date hereof, all Commercial Tort Claims owned by any Grantor.

 

(xvi) With
respect to the Accounts granted as Collateral hereunder, except as specifically disclosed to the Collateral Agent in writing, (A) they
represent bona fide sales of Inventory or rendering of services to Account Debtors in the ordinary course of the Grantors’ business
and are not evidenced by a judgment, Instrument or Chattel Paper; (B) there are no setoffs, claims or disputes existing or asserted with
respect thereto to the Grantors’ knowledge and no Grantor has made any agreement with any Account Debtor for any extension of time
for the payment thereof, any compromise or settlement for less than the full amount thereof, any release of any Account Debtor from liability
therefor, or any deduction therefrom, except a discount or allowance allowed in the ordinary course of business for prompt payment, including
the prompt payment of delinquent accounts; (C) to the Grantors’ knowledge, there are no facts, events or occurrences which in any
way impair the validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown in
the books and records and any invoices, statements and other reports delivered to the Collateral Agent with respect thereto; (D) no Grantor
has received any notice of proceedings or actions which are threatened or pending against any Account Debtor, which might result in any
adverse change in such Account Debtor’s financial condition; and (E) no Grantor has knowledge that any Account Debtor is unable
generally to pay its debts as they become due. Further, with respect to the Accounts granted as Collateral hereunder, the amounts shown
on such records and all invoices, statements and collateral reports which may be delivered to the Collateral Agent with respect thereto
are actually absolutely owing to a Grantor as indicated thereon and are not in any way contingent and, to each Grantor’s knowledge,
all Account Debtors have the capacity to contract.

 

(xvii) With
respect to any Inventory granted as Collateral hereunder, (A) no Inventory is now, or shall, at any time or times, hereafter be stored
at any location other than a location set forth on Schedule 6 without the Collateral Agent’s prior written consent,
and if the Collateral Agent gives such consent, such Grantor will concurrently therewith obtain, to the extent required by Section 5.11(c)
of the Credit Agreement or otherwise requested by the Collateral Agent, execute and deliver to the Collateral Agent a Landlord Collateral
Access Agreement, (B) each Grantor has good, indefeasible and merchantable title to its Inventory and such Inventory is not subject to
any Lien or security interest or document whatsoever, except for Permitted Liens, (C) except as specifically disclosed to the Collateral
Agent in writing, such Inventory is of good and merchantable quality, free from any material defects, (D) such Inventory is not subject
to any licensing, patent, royalty, trademark, trade name or copyright agreements with any third parties that would require any consent
of any third party upon sale or disposition of that Inventory or the payment of any monies to any third party upon such sale or other
disposition, and (E) the completion of manufacture, sale or other disposition of such Inventory by the Collateral Agent following an Event
of Default shall not require the consent of any Person and shall not constitute a breach or default under any contract or agreement to
which such Grantor is a party or to which such property is subject.

 

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(xviii) Schedule 9
lists all Intellectual Property of such Grantor as of the date hereof, separately identifying that owned by such Grantor and that licensed
to such Grantor. The Intellectual Property set forth on such Schedule for such Grantor constitutes all of its Intellectual Property on
the date hereof. All Intellectual Property owned by such Grantor is valid, subsisting, enforceable, unexpired and in full force and effect.
The use of Intellectual Property, or of embodiments thereof, in the business of such Grantor does not infringe, misappropriate, dilute
or violate in any material respect the intellectual property rights of any other Person. Each Grantor has taken all steps reasonably required
to protect such Grantor’s rights in trade secrets constituting Intellectual Property developed by or for such Grantor, including
using commercially reasonable efforts to ensure that no trade secrets constituting Intellectual Property owned or licensed by such Grantor
are authorized to be used or disclosed by such Grantor to any third party, other than pursuant to a written non-disclosure agreement that
adequately protects the proprietary interests of such Grantor in and to such trade secrets.

 

(xix) No
authorization, approval or other action by, and no notice to or filing with any Governmental Authority is required for either (A) the
pledge or grant by any Grantor of the Security Interests purported to be created in favor of the Collateral Agent for the benefit of the
Secured Parties hereunder, or (B) the exercise by the Collateral Agent of any rights or remedies in respect of any Collateral, except
for the filings contemplated hereunder and as may be required in connection with the disposition of any Collateral.

 

(xx) There
is no action, suit, proceeding, governmental investigation or arbitration, at law or in equity, or before or by any Governmental Authority,
pending, or to the knowledge of any Grantor, threatened against any Grantor or such Grantor’s property that will materially and
adversely affect the ability of any Grantor to perform its obligations under this Agreement, including, without limitation, the granting
of the Security Interests in any of the Collateral.

 

(xxi) With
respect to any Accounts or Chattel Paper with the government of the United States, or any department, agency, public corporation, or other
instrumentality thereof, each Grantor has complied with all required procedures for the effective collateral assignment of such Accounts
or Chattel Paper to the Collateral Agent under the Federal Assignment of Claims Act of 1940.

 

(xxii) No
Collateral constituting Chattel Paper or Instruments contains any statement therein to the effect that such Collateral has been assigned
to an identified party other than the Collateral Agent, and the grant of a security interest in such Collateral in favor of the Collateral
Agent hereunder does not violate the rights of any other Person as a secured party.

 

(b) Additional
Representations and Warranties of Each Grantor . To induce the Collateral Agent and the other Secured Parties to enter into the Credit
Agreement and to induce the Secured Parties to extend credit in the nature of the Secured Obligations, each Grantor hereby represents
and warrants to the Collateral Agent and each other Secured Party that:

 

(i) Schedule
3 sets forth under the headings “Pledged Stock,” “Pledged LLC Interests” and “Pledged Partnership Interests,”
respectively, all of the Pledged Stock, Pledged LLC Interests and Pledged Partnership Interests owned by any Grantor that constitutes
Collateral and such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of membership
interests or percentage of partnership interests indicated on such Schedule.

 

    15

     

    

 

(ii) All
the Pledged Equity Interests pledged by such Grantor hereunder have been duly authorized and validly issued and are fully paid and nonassessable.

 

(iii) Such
Grantor is the record and beneficial owner of, and has good title to, the Pledged Collateral pledged by it hereunder, free of any and
all Liens or options in favor of, or claims of, any other Person, except the Security Interest created by this Agreement, Liens arising
by operation of law or Permitted Liens; provided, that there are no outstanding warrants, options or other rights to purchase,
or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that requires
the issuance or sale of, any Pledged Equity Interests.

 

(iv) All
Pledged Collateral and, if applicable, any Additional Pledged Collateral, consisting of Certificated Securities or Instruments has been
delivered to the Collateral Agent in accordance with Section 5 hereof.

 

(v) Schedule
2 sets forth under the heading “Pledged Debt Instruments” all of the Pledged Debt Instruments owned by any Grantor and
all of such Pledged Debt Instruments have been duly authorized, authenticated or issued, and delivered and are the legal, valid and binding
obligation of the issuers thereof, and is not in default and constitutes all of the issued and outstanding inter-company Indebtedness.

 

(vi) None
of the Pledged Equity Interests is or represents interests in Issuers that: (A) are registered investment companies, (B) are dealt in
or traded on securities exchanges or markets or (C) have opted to be treated as “securities” under Article 8 of the Uniform
Commercial Code of any jurisdiction.

 

(vii) No
consent of any Person including any other general or limited partner, any other member of a limited liability company or any other shareholder
is necessary in connection with the creation, perfection or first priority status of the Security Interest in any Pledged Equity Interests
or the exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in respect
thereof.

 

(viii) Upon
delivery to the Collateral Agent of the certificates evidencing the Pledged Equity Interests, if any, and the promissory notes evidencing
the Pledged Debt Instruments held by such Grantor together with executed undated transfer powers or other instruments of transfer, the
Security Interest created by this Agreement in such Pledged Collateral constituting certificated securities and Indebtedness owed to such
Grantor, assuming the continuing possession of such Pledged Collateral by the Collateral Agent, will constitute a valid, perfected first
priority security interest in such Pledged Collateral to the extent provided in and governed by the UCC, enforceable in accordance with
its terms against all Parties of such Grantor and any Persons purporting to purchase such Pledged Collateral from such Grantor.

 

(ix) Upon
the filing of financing statements in the appropriate jurisdictions under the UCC, the Security Interest created by this Agreement in
such Pledged Collateral that constitute uncertificated securities, will constitute a valid, perfected first priority security interest
in such Pledged Collateral constituting uncertificated securities, enforceable in accordance with its terms against all Parties of such
Grantor and any persons purporting to purchase such Pledged Collateral from such Grantor, to the extent provided in and governed by the
UCC.

 

    16

     

    

 

SECTION 5. Further Assurances;
Covenants.

 

(a) General.

 

(i) In
the case of each Grantor, such Grantor shall take, or shall refrain from taking, as the case may be, each action that is necessary to
be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take such action or to refrain
from taking such action by such Grantor or any of its Subsidiaries.

 

(ii) [Reserved].

 

(iii) Each
Grantor hereby authorizes the Collateral Agent, its counsel or its representatives, at any time and from time to time, to file financing
statements and amendments that describe the collateral covered by such financing statements as “all assets of Grantor”, “all
personal property of Grantor” or words of similar effect, in such jurisdictions as the Collateral Agent may deem necessary or desirable
in order to perfect the Security Interests granted by such Grantor under this Agreement and enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder in respect of the Collateral. Each Grantor will, from time to time, at its expense, execute,
deliver, file and record any statement, assignment, instrument, document, agreement or other paper and take any other action (including,
without limitation, any filings with the United States Patent and Trademark Office or the United States Copyright Office, Copyright or
Patent filings and any filings of financing or continuation statements under the UCC) that, from time to time the Collateral Agent may
reasonably request, in order to create, preserve, upgrade in rank (to the extent required hereby), perfect, confirm or validate the Security
Interests or to enable the Collateral Agent to obtain the full benefits of this Agreement, or to enable the Collateral Agent to exercise
and enforce any of its rights, powers and remedies hereunder with respect to any of its Collateral. Each Grantor hereby authorizes the
Collateral Agent to file financing statements, financing statement amendments or continuation statements on behalf of such Grantor. Each
Grantor shall pay the costs of, or incidental to, any recording or filing of any financing statements, financing statement amendments
or continuation statements concerning the Collateral.

 

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(iv) Except
as set forth on Schedule 6, no Grantor shall permit its tangible assets, including without limitation, such Grantor’s
Inventory and Equipment, to be in the possession of any other Person or to be stored at any business location other than those business
locations set forth on Schedule 6 except as permitted herein, and so long as (a) such Grantor gives the Collateral Agent
written notice of changing the status of the Collateral at least fifteen (15) Business Days prior to enacting the new status of the Collateral,
(b) the Collateral Agent’s security interest in such Inventory is and continues to be a duly perfected, first priority lien thereon,
(c) neither such Grantor’s nor the Collateral Agent’s right of entry upon the premises where such Inventory is stored or its
right to remove the Inventory therefrom, is in any way materially adversely restricted and (d) such Grantor uses commercially reasonable
efforts to cause such Person or any bailee, landlord, or warehouseman to execute a Landlord Collateral Access Agreement in form and substance
reasonably satisfactory to the Collateral Agent prior to enacting the new status of the Collateral.

 

(v) No
Grantor shall (A) sell, transfer, lease, exchange, assign or otherwise dispose of, or grant any option, warrant or other right with respect
to, any of its Collateral other than sales of assets permitted under the Credit Agreement; or (B) create, incur or suffer to exist any
Lien with respect to any Collateral, except for the Permitted Liens.

 

(vi) All
insurance expenses and expenses of protecting, storing, warehousing, insuring, handling, maintaining and shipping the Collateral (including,
without limitation, all rent payable by any Grantor to any landlord of any premises where any of the Collateral may be located), and any
and all excise, property, sales, and use taxes imposed by any state, federal, or local authority on any of the Collateral or in respect
of the sale thereof, shall be borne and paid by the Grantors. Neither the Collateral Agent nor the Lenders shall be liable or responsible
in any way for the safekeeping of any of the Collateral or for any loss or damage thereto (except for reasonable care in the custody thereof
while any Collateral is in the Collateral Agent’s or the Lenders’ actual possession in accordance with the terms hereof) or
for any diminution in the value thereof, or for any act or default of any warehouseman, carrier, forwarding agency, or other person whomsoever,
but the same shall be at the Grantors’ sole risk.

 

(vii) Each
Grantor will, promptly upon request (but in any event, within three (3) Business Days), provide to the Collateral Agent all information
and evidence the Collateral Agent may reasonably request concerning the Collateral, to enable the Collateral Agent to enforce the provisions
of this Agreement.

 

(viii) Each
Grantor shall take all actions necessary or reasonably requested by the Collateral Agent in order to maintain the perfected status of
the Security Interests and to otherwise carry out the purposes of this Agreement.

 

(ix) No
Grantor shall file any amendment to, or termination of, a financing statement naming any Grantor as debtor and the Collateral Agent as
secured party, or any correction statement with respect thereto, in any jurisdiction.

 

(x) Each
Grantor shall take all steps necessary to grant the Collateral Agent “control” of all electronic chattel paper in accordance
with the UCC and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic
Signatures in Global and National Commerce Act.

 

(xi) If
any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument or Chattel Paper in
an individual amount in excess of $50,000 or together with all other Instruments or Chattel Paper in an aggregate amount in excess of
$250,000, each such Instrument or Chattel Paper shall be promptly delivered to the Collateral Agent, duly endorsed in a manner satisfactory
to the Collateral Agent, to be held as Collateral pursuant to this Agreement.

 

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(xii) Each
Grantor shall (A) keep the Collateral in good order and repair and will not use the same in violation of any applicable law or any policy
of insurance thereon, and (B) promptly pay when due all taxes, assessments, governmental charges and levies upon its Collateral or incurred
in connection with the use or operation of the Collateral or incurred in connection with this Agreement; provided, that such tax,
assessment, charge, levy or claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate
proceedings.

 

(x) Except
for the Security Interests and Permitted Liens, the Grantors shall at all times be the sole owners or lessees of each and every item of
Collateral.

 

(xi) Each
Grantor shall defend its title, and use commercially reasonable efforts to defend its interest in and to, and the Security Interests in,
the Collateral against the claims and demands of all Persons.

 

(b) Accounts,
Etc.

(i) Each
Grantor shall use all reasonable efforts consistent with prudent business practice to cause to be collected from the Account Debtors,
as and when due, any and all amounts owing under or on account of each Account granted as Collateral hereunder (including, without limitation,
Accounts which are delinquent, such Accounts to be collected in accordance with lawful collection procedures) and apply forthwith upon
receipt thereof all such amounts as are so collected to the outstanding balance of such Account. The costs and expenses (including, without
limitation, attorneys’ fees) of collection of Accounts incurred by any Grantor or the Collateral Agent shall be borne by such Grantor.

 

(ii) Each
Grantor shall perform and comply in all material respects with all of its obligations in respect of Accounts, Instruments and General
Intangibles.

 

(iii) If
so requested of any Grantor by the Collateral Agent following and during the continuance of an Event of Default, such Grantor shall execute
and deliver to the Collateral Agent, for the benefit of the Lenders, formal written assignments of all of the Accounts daily, which shall
include all Accounts that have been created since the date of the last assignment, together with copies of invoices or invoice registers
related thereto.

 

(iv) The
Collateral Agent retains the right after the occurrence and during the continuance of an Event of Default to notify the Account Debtors
that the Accounts have been assigned to the Collateral Agent, for the benefit of the Lenders, and to collect the Accounts directly in
its own name and to charge the collection costs and expenses, including reasonable attorneys’ fees, to the Grantors. The Collateral
Agent has no duty to protect, insure, collect or realize upon the Accounts or preserve rights in them. Each Grantor irrevocably makes,
constitutes and appoints the Collateral Agent as such Grantor’s true and lawful attorney and agent-in-fact to endorse such Grantor’s
name on any checks, notes, drafts or other payments relating to, the Accounts which come into the Collateral Agent’s possession
or under the Collateral Agent’s control as a result of its taking any of the foregoing actions. Additionally, the Collateral Agent,
for the benefit of the Lenders, shall have the right to collect and settle or adjust all disputes and claims directly with the Account
Debtor and to compromise the amount or extend the time for payment of the Accounts upon such terms and conditions as the Collateral Agent
may deem advisable, and to charge the deficiencies, reasonable costs and expenses thereof, including reasonable out-of-pocket attorneys’
fees, to the Grantors.

 

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(v) With
respect to any Accounts or Chattel Paper with the government of the United States, or any department, agency, public corporation, or other
instrumentality thereof, each Grantor will comply with all required procedures for the effective collateral assignment to the Collateral
Agent of all moneys due or to become due under such Accounts and Chattel Paper under the Federal Assignment of Claims Act of 1940 and
take any other steps necessary to perfect the Collateral Agent’s security interest, for the benefit of the Secured Parties, in such
Accounts and Chattel Paper (the “Assignment Actions”). Each Grantor acknowledges and agrees that, notwithstanding any
other terms of this Agreement and the other Loan Documents, at any time after an Event of Default has occurred and is continuing, Collateral
Agent may obtain injunctive or other equitable relief to compel the Grantor to complete all Assignment Actions.

 

(c) Equipment,
Etc. Each Grantor shall within ten (10) Business Days following the acquisition of any Equipment, the ownership of which is evidenced
by a certificate of title, deliver to the Collateral Agent any and all certificates of title of such Equipment having a value in excess
of $50,000 individually, or $250,000 in the aggregate when combined with all other Equipment subject to a certificate of title, and shall
cause the Collateral Agent to be named as lienholder on any such certificate of title. No Grantor shall permit any Equipment to become
a fixture to real estate or an accession to other personal property unless such real estate or personal property is the subject of a fixture
filing (as defined in the UCC) creating a perfected Lien in favor of the Collateral Agent.

 

(d) Intellectual
Property.

 

(i) In
order to facilitate filings with the United States Patent and Trademark Office and the United States Copyright Office, each Grantor shall
execute and deliver to the Collateral Agent one or more Copyright Security Agreements or Patent and Trademark Security Agreements, as
applicable, and such other documentation as may be necessary, appropriate or reasonably requested by the Collateral Agent to evidence
the Collateral Agent’s Lien on such Grantor’s Patents, Trademarks, Copyrights, Intellectual Property Licenses, and the General
Intangibles of such Grantor relating thereto or represented thereby.

 

(ii) Each
Grantor (either itself or through licensees) will (A) maintain the quality of services offered under each material Trademark and Trademark
Licenses, (B) maintain each material Trademark in full force and effect, free from any claim of abandonment for non-use, (C) employ such
material Trademark with the appropriate notice of registration, (D) not adopt or use any mark which is confusingly similar or a colorable
imitation of such material Trademark unless the Collateral Agent, for the ratable benefit of the Secured Parties, shall obtain a perfected
security interest in such mark pursuant to this Agreement, and (E) not (and not permit any licensee or sublicensee thereof to) do any
act or knowingly omit to do any act whereby any Trademark may become invalidated.

 

 (iii) Each
Grantor will not do any act, or knowingly omit to do any act, whereby any Patent may become abandoned or dedicated.

 

 (iv) Each
Grantor will not do any act, or omit to do any act, whereby any material Copyright may become abandoned or dedicated.

 

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 (v) Each
Grantor will notify the Collateral Agent and the other Secured Parties promptly if it knows that any application or registration relating
to any Copyright, Patent or Trademark may become abandoned or dedicated, or of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark
Office, the United States Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of any Copyright,
Patent or Trademark or its right to register the same or to keep and maintain the same.

 

 (vi) If a
Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any
Copyright, Patent or Trademark with the United States Copyright Office, the United States Patent and Trademark Office or any similar office
or agency in any other country or any political subdivision thereof, such Grantor shall provide written notice to the Collateral Agent
and the other Secured Parties of such filing within 10 Business Days after such filing (which period may be extended by the Administrative
Agent in its sole discretion) and shall promptly execute and deliver one or more Copyright Security Agreement or Patent and Trademark
Security Agreement, as applicable, and any and all other agreements, instruments, documents, and papers as the Collateral Agent may in
addition reasonably request to evidence the Collateral Agent’s and the other Secured Parties’ security interest in any Copyright,
Patent or Trademark and the goodwill and General Intangibles of such Grantor relating thereto or represented thereby, and such Grantor
hereby constitutes the Collateral Agent its attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts
of such attorney being hereby ratified and confirmed; such power being coupled with an interest is irrevocable until the termination of
this Agreement in accordance with the terms hereof.

 

 (vii) Such
Grantor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Copyright
Office, the United States Patent and Trademark Office, or any similar office or agency in any other country or any political subdivision
thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of the Copyrights,
Patents and Trademarks, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability.

 

 (viii) In
the event that any Copyright, Patent or Trademark or Intellectual Property License in favor of such Grantor included in the Collateral
is infringed, misappropriated or diluted by a third party, such Grantor shall promptly notify the Collateral Agent and the other Secured
Parties after it learns thereof and Grantor, in consultation with the Collateral Agent, shall promptly determine the best course of action
in response to such infringement, misappropriation or dilution, which may include to sue for infringement, misappropriation or dilution,
to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, and
take such other actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Copyright, Patent or
Trademark.

 

(e) Deposit
Accounts, Chattel Paper, Investment Property and Letters of Credit.

 

(i) [reserved].

 

(ii) No
Grantor shall become the beneficiary of any letter of credit unless the issuer of the letter of credit has consented to the assignment
of the Proceeds of such letter of credit to the Collateral Agent; provided, that such assignment shall be in form and substance
reasonably satisfactory to the Collateral Agent.

 

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(iii) Each
Grantor, at any time and from time to time, will ensure the continued perfection and priority of the Security Interests in any of the
Collateral and of the preservation of its rights therein.

 

In addition to the
foregoing, if any Issuer of Investment Property is located in a jurisdiction outside of the United States of America, each Grantor shall
take such additional actions, including, without limitation, causing the Issuer to register the pledge on its books and records or making
such filings or recordings, in each case as may be reasonably necessary or advisable, under the laws of such Issuer’s jurisdiction
to insure the validity, perfection and priority of the Security Interest.

 

(f) Commercial
Tort Claims. If any Grantor shall, at any time, acquire a Commercial Tort Claim other than those listed on Schedule 1 attached
hereto, such Grantor shall promptly notify the Collateral Agent thereof in writing, providing a reasonable description and summary thereof,
and, if necessary, shall execute a supplement to this Agreement granting a Security Interest in such Commercial Tort Claim to the Collateral
Agent.

 

(g) [Reserved].

 

(h) Material
Contracts.

 

(i) The
Collateral Agent may at any time notify, or require any Grantor to so notify, the counterparty on any Material Contract of the Security
Interest of the Collateral Agent therein. In addition, after the occurrence and during the continuance of an Event of Default, the Collateral
Agent may notify, or require any Grantor to notify, the counterparty to make all payments under the Material Contracts directly to the
Collateral Agent;

 

(ii) Each
Grantor shall perform in all material respects all of its obligations with respect to the Material Contracts; and

 

(iii) Each
Grantor shall use its commercially reasonable efforts to prohibit anti-assignment provisions in any Material Contracts entered into after
the Closing Date or obtain a consent allowing the assignment of such Material Contract to the Collateral Agent.

 

(i) Covenants
of Each Grantor. Each Grantor covenants and agrees with the Collateral Agent and each of the other Secured Parties that, from and
after the date of this Agreement, until the date upon which the Loans and all other Secured Obligations (except for contingent indemnification
obligations which by their terms survive the termination of the Loan Documents) then due and owing, shall have been paid in full, all
Letters of Credit shall have expired, been cancelled or cash collateralized in accordance with the Credit Agreement and the Commitments
and any other obligation to provide any financial accommodations to the Borrowers shall have terminated, such Grantor shall take each
action that is necessary to be taken to prevent, or shall refrain from taking each action that would lead to the occurrence of, a Default
or Event of Default.

 

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(j) Other
Covenants of Each Grantor . Each Grantor covenants and agrees with the Collateral Agent and the other Secured Parties that, from and
after the date of this Agreement, until the Loans and all other Secured Obligations (except for contingent indemnification obligations
which by their terms survive the termination of the Loan Documents) then due and owing shall have been paid in full, all Letters of Credit
shall have expired, been cancelled or cash collateralized in accordance with the Credit Agreement and the Commitments and any other obligation
to provide any financial accommodations to the Borrowers shall have terminated:

(i) If
such Grantor shall, as a result of its ownership of its Pledged Equity Interests, become entitled to receive or shall receive any Certificated
Security (including, without limitation, any Certificated Security representing a stock dividend or a distribution in connection with
any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), stock option
or similar rights in respect of the Pledged Equity Interests of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any ownership interests of the Pledged Equity Interests, or otherwise in respect thereof, such Grantor shall accept
the same as the agent of the Collateral Agent, hold the same in trust for the Collateral Agent and promptly (but in any event, within
five (5) Business Days) deliver the same forthwith to the Collateral Agent in the exact form received, duly endorsed by such Grantor to
the Collateral Agent, if required, together with an undated transfer power covering such certificate duly executed in blank by such Grantor,
to be held by the Collateral Agent, subject to the terms hereof, as additional collateral security for the Secured Obligations (subject
to Section 2 hereof). Any sums paid upon or in respect of the Pledged Equity Interests upon the liquidation or dissolution of any Issuer
(except any liquidation or dissolution of any Grantor in accordance with the Credit Agreement) shall be paid over to the Collateral Agent
to be held by it hereunder as additional collateral security for the Secured Obligations, and in case any distribution of capital that
shall be made on or in respect of the Pledged Equity Interests or any property shall be distributed upon or with respect to the Pledged
Equity Interests pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof,
the property so distributed shall, unless otherwise subject to a perfected security interest in favor of the Collateral Agent, be delivered
to the Collateral Agent to be held by it hereunder as additional collateral security for the Secured Obligations. If any sums of money
or property so paid or distributed in respect of the Pledged Equity Interests shall be received by such Grantor, such Grantor shall, until
such money or property is paid or delivered to the Collateral Agent, hold such money or property in trust for Collateral Agent for the
benefit of the Secured Parties, segregated from other funds of such Grantor, as additional collateral security for the Secured Obligations.

 

(ii) Without
the prior written consent of the Collateral Agent, such Grantor will not (except as expressly permitted by the Credit Agreement) (A) amend
or terminate any partnership agreement, limited partnership agreement, limited liability company agreement, operating agreement, limited
liability partnership agreement, articles of incorporation, by-laws or other organizational documents in any way that materially changes
the rights of such Grantor with respect to any Investment Property or adversely affects the validity, perfection or priority of the Security
Interests, (B) vote to enable, or take any other action to permit, any Issuer to issue Capital Stock of any nature or to issue any other
securities convertible into, or granting the right to purchase or exchange for, any Capital Stock of any nature of any Issuer, (C) sell,
assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Pledged Collateral or Proceeds thereof,
or (D) create, incur or permit to exist any Lien or option in favor of, or any material adverse claim of any Person with respect to, any
of the Pledged Collateral or Proceeds thereof, or any interest therein, except for the Security Interests and Permitted Liens.

 

(iii) Such
Grantor shall comply in all material respects with all of its obligations under any partnership agreement, limited partnership agreement,
limited liability partnership agreement, limited liability company agreement or operating agreement relating to Pledged Partnership Interests
or Pledged LLC Interests and shall enforce all of its rights with respect to any Investment Property.

 

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(iv) Such
Grantor shall deliver to the Collateral Agent, all certificates and Instruments representing or evidencing any Pledged Collateral (including,
within ten (10) Business Days after receipt thereof, all Additional Pledged Collateral), whether now existing or hereafter acquired, in
suitable form for transfer by delivery or, as applicable, accompanied by such Grantor’s endorsement, where necessary, or duly executed
instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent. Upon the occurrence
of an Event of Default, the Collateral Agent shall have the right, at any time, in its discretion and without notice to any Grantor, (A)
to transfer to or to register in its name or in the name of its nominees any Pledged Collateral and (B) to exchange any certificate or
instrument representing or evidencing any Pledged Collateral for certificates or instruments of smaller or larger denominations. Except
as expressly permitted by the Credit Agreement, such Grantor shall not grant “control” (within the meaning of such term under
Article 9-106 of the UCC) over any Investment Property to any Person other than the Collateral Agent.

 

(v) If
any amount payable under or in connection with any Collateral owned by such Grantor shall be or become evidenced by an Instrument, such
Grantor shall promptly (but in any event, within ten (10) Business Days) deliver such Instrument to the Collateral Agent, duly executed
in a manner reasonably satisfactory to the Collateral Agent, or, if consented to by the Collateral Agent, shall mark all such Instruments
with the following legend: “This writing and the obligations evidenced or secured hereby are subject to the security interest of
Manufacturers and Traders Trust Company, as Collateral Agent, and any purchase or other transfer of this interest is a violation of the
rights of Manufacturers and Traders Trust Company, as Collateral Agent.”

 

(vi) Grantor
shall maintain the Security Interest in such Grantor’s Pledged Collateral as a perfected security interest having at least the priority
described in Section 2 hereof and shall defend such Security Interest against the claims and demands of all Persons whomsoever. At any
time and from time to time, upon the reasonable written request of the Collateral Agent, and at the sole expense of such Grantor, such
Grantor will promptly and duly execute and deliver such further instruments and documents and take such further actions as the Collateral
Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers
herein granted by such Grantor.

 

(vii) Grantor
consents, following and during the continuance of an Event of Default, to the transfer of any Pledged Partnership Interest and any Pledged
LLC Interest to the Collateral Agent or its nominee and to the substitution of the Collateral Agent or its nominee as a partner in any
partnership or as a member in any limited liability company with all the rights and powers related thereto.

 

(viii) Grantor
shall notify the Collateral Agent of any default under any Pledged Debt Instruments that could result in, either individually or in the
aggregate, a Material Adverse Effect.

 

(ix) Grantor
shall cause each Issuer of Pledged Equity Interests constituting uncertificated securities to execute and deliver to the Collateral Agent
an Uncertificated Securities Control Agreement.

 

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SECTION 6.  Insurance,
Reporting and Recordkeeping. Each Grantor covenants and agrees with the Collateral Agent that, from and after the date of this
Agreement and until the termination of this Agreement pursuant to Section 15(a):

 

(a) Insurance.
Each Grantor shall, at its own expense, maintain insurance in accordance with the requirements of Section 5.05 of the Credit Agreement.

 

(b) Maintenance
of Records Generally. Each Grantor shall keep and maintain, at its own cost and expense, its Collateral Records, complete and accurate
in all material respects, including, without limitation, a record of all payments received and all credits granted with respect to the
Collateral and all other dealings with its Collateral. Each Grantor will mark its Collateral Records to evidence this Agreement and the
Security Interests. All the Grantors’ Chattel Paper will be marked with the following legend: “This writing and the obligations
evidenced or secured hereby are subject to the security interest of Manufacturers and Traders Trust Company, as Collateral Agent”
or words of similar effect. For the Collateral Agent’s further security, each Grantor agrees that, upon the occurrence of and during
the continuation of any Event of Default, such Grantor shall deliver and turn over full and complete copies of any such Collateral Records
to the Collateral Agent or to its representatives, at any time, on demand of the Collateral Agent.

 

(c) Special
Provisions Regarding Maintenance of Records and Reporting Re: Accounts, Inventory and Equipment;

 

(i) Each Grantor
shall keep records of its Accounts that are complete and accurate in all material respects. Upon the reasonable request of the Collateral
Agent, such Grantor shall deliver to the Collateral Agent all documents, including, without limitation, repayment histories and present
status reports, relating to its Accounts and such other matters and information relating to the status of its then existing Accounts as
requested;

 

(ii) In the event
a dispute arises between any Account Debtor and Grantor in connection with any amounts due and owing in excess of $250,000 in the aggregate,
such Grantor shall provide the Collateral Agent with written notice thereof, promptly after such Grantor’s learning thereof (but
in any event, within five (5) Business Days), explaining in detail the reason for the dispute, all claims related thereto and the amount
in controversy;

 

(iii) Each Grantor
shall maintain itemized records, accurate in all material respects, itemizing and describing the kind, type, quality, quantity, location
and book value of its Inventory and Equipment and shall, upon reasonable request by the Collateral Agent, furnish the Collateral Agent
with a current schedule containing the foregoing information; and

 

(iv) Each Grantor
shall promptly, but in no event later than five (5) Business Days after such Grantor’s learning thereof, inform the Collateral Agent,
in writing, of any delay in such Grantor’s performance of any of its obligations to any Account Debtor and of any assertion of any
claims, offsets or counterclaims by any Account Debtor and of any allowances, credits and/or other monies granted by such Grantor to any
Account Debtor, in each case involving amounts in excess of $250,000 in the aggregate for all Accounts of such Account Debtor.

 

(d) Further
Identification of Collateral. If so requested by the Collateral Agent, each Grantor shall furnish to the Collateral Agent once per
calendar quarter, statements and schedules further identifying and describing the Collateral and such other reports in connection with
the Collateral, all in reasonable detail; provided, that, during an Event of Default, such statements and schedules shall
be furnished to the Collateral Agent as often as requested by the Collateral Agent.

 

(e) Notices.
In addition to the notices required by Section 6(c) hereof, each Grantor will advise the Collateral Agent promptly, but in no event
later than five (5) Business Days after the occurrence thereof, in reasonable detail, (i) of any Lien or claim made or asserted against
any of the Collateral that is not expressly permitted by the terms of this Agreement, and (ii) of the occurrence of any other event
which would reasonably be expected to have a material adverse effect on the aggregate value of the Collateral or on the validity, perfection
or priority of the Security Interests.

 

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SECTION 7. General Authority.
Each Grantor hereby irrevocably appoints the Collateral Agent its true and lawful attorney-in-fact, with full power of substitution, in
the name of such Grantor, the Collateral Agent or otherwise, for the sole use and benefit of the Collateral Agent on its behalf and on
behalf of the Secured Parties, but at such Grantor’s expense, to exercise, at any time, all or any of the following powers:

 

(i) to
file the financing statements, financing statement amendments and continuation statements referred to in Section 5 hereof;

 

(ii) in
the name of such Grantor or its own name, or otherwise, to take possession of and indorse and collect any checks, drafts, notes, acceptances
or other instruments for the payment of moneys due under any Account or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Collateral Agent for the purpose of
collecting any and all such moneys due under any Account or with respect to any other Collateral whenever payable;

 

(iii) to
demand, sue for, collect, receive and give acquittance for any and all monies due or to become due with respect to any Collateral or by
virtue thereof;

 

(iv) to
file any claims or take any action or institute any proceedings which the Collateral Agent may reasonably deem necessary or appropriate
to accomplish the purposes of this Agreement;

 

(v) to
settle, compromise, compound, prosecute or defend any action or proceeding with respect to any Collateral;

 

(vi) to
sell, transfer, assign or otherwise deal in or with the Collateral or the Proceeds or avails thereof, as fully and effectually as if the
Collateral Agent were the absolute owner thereof;

 

(vii) to
extend the time of payment with reference to the Collateral and to make any allowance and other adjustments with reference to the Collateral;

 

(viii) in
accordance with the terms of Section 5(b)(v) hereof, in the name of such Grantor or its own name, with respect to any Accounts or Chattel
Paper with the government of the United States, or any department, agency, public corporation, or other instrumentality thereof, take
such actions as are necessary to comply with all required procedures for the effective collateral assignment to the Collateral Agent of
all moneys due or to become due under such Accounts and Chattel Paper under the Federal Assignment of Claims Act of 1940 and take any
other steps necessary to perfect the Collateral Agent’s security interest, for the benefit of the Secured Parties, in such Accounts
and Chattel Paper;

 

(ix) in
the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers
as the Collateral Agent may reasonably request to evidence and/or perfect the Secured Parties’ security interest in such Intellectual
Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

 

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(x) pay
or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or provide any insurance called
for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof; and

 

(xi) (1)  direct
any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly
to the Collateral Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt
for, any and all moneys, claims and other amounts due in respect of or arising out of any Collateral and to extend the time of payment
with reference to the Collateral and to make any allowance and other adjustments with reference to the Collateral; (3) sign and indorse
any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications,
notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right
in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral;
(6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as
the Collateral Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with any applicable goodwill of the business
to which any such Copyright, Patent or Trademark pertains) and any Intellectual Property Licenses, throughout the world for such term
or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine; and (8) generally, sell,
transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though
the Collateral Agent were the absolute owner thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s
expense, at any time, or from time to time, all acts and things which the Collateral Agent deems necessary to protect, preserve or realize
upon the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as
such Grantor might do

 

provided, however, that the powers
described in clauses (ii) through (xi) above may be exercised by the Collateral Agent only if an Event of Default exists and is continuing.
The appointment as attorney-in-fact under this Section 7 is irrevocable and coupled with an interest.

 

SECTION 8. Remedies
Upon an Event of Default.

 

(a) If
any Event of Default has occurred and is continuing, the Collateral Agent may, without further notice to the Grantors, exercise all rights
and remedies under this Agreement or any other Loan Document or that are available to a secured creditor upon default under the UCC, or
that are otherwise available at law or in equity, at any time, in any order and in any combination, including collecting any and all Secured
Obligations from the Grantors, and, in addition, the Collateral Agent or its designee may sell the Collateral or any part thereof at public
or private sale, for cash, upon credit or for future delivery, and at such price or prices as the Collateral Agent may deem satisfactory.
The Collateral Agent shall give the Grantors no less than ten (10) days prior written notice of the time and place of any sale or other
intended disposition of Collateral, except for any Collateral that is perishable or threatens to decline speedily in value or is of a
type customarily sold on a recognized market, in which case the Collateral Agent shall give notice of such sale as early as possible.
Each Grantor agrees that any such notice constitutes “reasonable notification” within the meaning of Section 9-611 of
the UCC (to the extent such Section or any successor provision under the UCC is applicable).

 

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(b) The
Collateral Agent or any Secured Party may be the purchaser of any or all of the Collateral so sold at any public sale (or, if such Collateral
is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations
or if otherwise permitted by applicable law, at any private sale) and thereafter hold the same, absolutely, free from any right or claim
of whatsoever kind. Each Grantor agrees to execute and deliver such documents and take such other action as the Collateral Agent deems
necessary or advisable in order that any such sale may be made in compliance with law. Upon any such sale, the Collateral Agent shall
have the right to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall
hold the Collateral so sold to it absolutely free from any claim or right of any kind, including any equity or statutory right of redemption
of the Grantors. To the extent permitted by law, each Grantor hereby specifically waives all rights of redemption, stay or appraisal which
it has or may have under any law now existing or hereafter adopted. The notice (if any) of such sale shall (i) in case of a public sale,
state the time and place fixed for such sale, and (ii) in the case of a private sale, state the day after which such sale may be consummated.
Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral
Agent may fix in the notice of such sale. At any such sale, Collateral may be sold in one lot as an entirety or in separate parcels, as
the Collateral Agent may determine. The Collateral Agent shall not be obligated to make any such sale pursuant to any such notice. The
Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned, from time to
time, by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be
so adjourned. In case of any sale of all or any part of the Collateral on credit or for future delivery, such Collateral so sold may be
retained by the Collateral Agent until the selling price is paid by the purchaser thereof, but the Collateral Agent shall not incur any
liability in case of the failure of such purchaser to take up and pay for such Collateral so sold and, in case of any such failure, such
Collateral may again be sold upon like notice. The Collateral Agent, instead of exercising the power of sale herein conferred upon it,
may proceed by a suit or suits at law or in equity to foreclose the Security Interests and sell Collateral, or any portion thereof, under
a judgment or decree of a court or courts of competent jurisdiction. The Grantors shall remain liable for any deficiency.

 

(c) For
the purpose of enforcing any and all rights and remedies under this Agreement, the Collateral Agent may upon and during the continuance
of an Event of Default (i) require any Grantor to, and each Grantor agrees that it will, at the joint and several expense of the Grantors,
and upon the Collateral Agent’s request, forthwith assemble all or any part of its Collateral as directed by the Collateral Agent
and make it available at a place designated by the Collateral Agent which is, in the Collateral Agent’s opinion, reasonably convenient
to the Collateral Agent and such Grantor, whether at the premises of such Grantor or otherwise, (ii) to the extent permitted by applicable
law, enter, with or without process of law and without breach of the peace, any premise where any such Collateral is or may be located
and, without charge or liability to the Collateral Agent, seize and remove such Collateral from such premises, (iii) have access to and
use such Grantor’s Collateral Records, and (iv) prior to the disposition of any of the Collateral, store or transfer such Collateral
without charge in or by means of any storage or transportation facility owned or leased by such Grantor, process, repair or recondition
such Collateral or otherwise prepare it for disposition in any manner and, to the extent the Collateral Agent deems appropriate and in
connection with such preparation and disposition, use without charge any Intellectual Property used by such Grantor.

 

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(d) Without
limiting the generality of the foregoing, if any Event of Default has occurred and is continuing:

 

(i) Upon
the Collateral Agent’s request, each Grantor will promptly (but in any event, within two (2) Business Days) notify each Account
Debtor, in respect of any Account or Instrument of such Grantor, that such Collateral has been assigned to the Collateral Agent hereunder
and that any payments due or to become due in respect of such Collateral are to be made directly to the Collateral Agent. Notwithstanding
the foregoing, each Grantor hereby authorizes the Collateral Agent, upon the occurrence and during the continuance of an Event of Default;
(A) to directly contact and notify the Account Debtors or obligors under any Accounts of the assignment of such Collateral to the Collateral
Agent; (B) to direct such Account Debtor or obligors to make payment of all amounts due or to become due thereunder directly to the Collateral
Agent and; (C) upon such notification and at the expense of such Grantor, to enforce collection of any such Accounts and to adjust,
settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. Once any
such notice has been given to any Account Debtor or other Person obligated on the Collateral, such Grantor shall not give any contrary
instructions to such Account Debtor or other Person without the Collateral Agent’s prior written consent. If, notwithstanding the
giving of any notice, any Account Debtor or other Person shall make payments to a Grantor, such Grantor shall hold all such payments it
receives in trust for the Collateral Agent, for the account of the Secured Parties, and shall immediately, upon receipt, deliver the same
to the Collateral Agent.

 

(ii) The
Collateral Agent may establish or cause to be established one or more lockboxes or other arrangements for the deposit of Proceeds of Accounts,
and in such case, each Grantor shall cause to be forwarded to the Collateral Agent, on a daily basis, all checks and other items of payment
and deposit slips related thereto for deposit in such lockboxes.

 

(iii) The
Collateral Agent shall have the right, at any time, in its discretion and without notice to any Grantor, to transfer to or to register
in its name or in the name of its nominees any Pledged Collateral.

 

(iv) The
Collateral Agent (A) shall receive any and all cash dividends, payments or other Proceeds paid in respect of the Pledged Equity Interests
and make application thereof to the Obligations in accordance with the terms of the Credit Agreement and all such dividends, payments
and other proceeds shall be held in trust for the Collateral Agent until such time of receipt by the Collateral Agent and (B) may exchange
any certificate or instrument representing or evidencing any Pledged Equity Interests registered in the name of the Collateral Agent or
its nominee for certificates or instruments of smaller or larger denominations, and the Collateral Agent or its nominee may immediately
exercise (x) all voting, corporate and other rights pertaining to such Pledged Equity Interests including at any meeting of shareholders
of the relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other
rights, privileges or options pertaining to such Pledged Equity Interests as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged Equity Interests upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any Issuer, or upon the exercise by any Grantor or the Collateral
Agent of any right, privilege or option pertaining to such Pledged Equity Interests, and in connection therewith, the right to deposit
and deliver any and all of the Pledged Equity Interests with any committee, depositary, transfer agent, registrar or other designated
agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for property actually
received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not
be responsible for any failure to do so or delay in so doing. Each Grantor hereby authorizes and instructs each Issuer of any Pledged
Equity Interests pledged by such Grantor hereunder to comply with any instruction received by it from the Administrative Agent in writing
that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement,
without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying.

 

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(v) The Collateral
Agent may (without assuming any obligations or liability thereunder), at any time and from time to time, enforce (and shall have the
exclusive right to enforce) against any licensee or sublicensee all rights and remedies of any Grantor in, to and under any Licenses
and take or refrain from taking any action in connection therewith. Each Grantor hereby releases the Collateral Agent from, and agrees
to hold the Collateral Agent free and harmless from and against any claims arising out of, any lawful action so taken or omitted to be
taken with respect hereto, except  for the Collateral Agent’s gross negligence or willful misconduct, as determined
by a final and non-appealable decision of a court of competent jurisdiction.

 

(vi) Upon
request by the Collateral Agent, each Grantor agrees to execute and deliver to the Collateral Agent powers of attorney, in form and substance
satisfactory to the Collateral Agent, for the implementation of any lease, assignment, license, sublicense, grant of option, sale or other
disposition of any Intellectual Property. In the event of any such disposition pursuant to this Section 8, each Grantor shall supply to
the Collateral Agent (A) its know-how and expertise relating to the manufacture and sale of the products bearing Trademarks or the products
or services made or rendered in connection with Patents or Copyrights, and (B) its customer lists and other records relating to such Intellectual
Property and the distribution of said products.

 

(e) The
Collateral Agent, on behalf of the Secured Parties, and, by accepting the benefits of this Agreement, the Secured Parties, expressly acknowledge
and agree that this Agreement may be enforced only by the action of the Collateral Agent and that no other Secured Party shall have any
right individually to seek to enforce or to enforce this Agreement or to realize upon the collateral security to be granted hereby, it
being understood and agreed that such rights and remedies shall be exercised exclusively by the Collateral Agent, for the benefit of the
Secured Parties, upon the terms of this Agreement.

 

SECTION 9. Limitation
on the Collateral Agent’s Duty in Respect of Collateral.

 

(a) Beyond
reasonable care in the custody thereof, the Collateral Agent shall have no duty as to any Collateral in its possession or control or in
the possession or control of any agent or bailee or any income thereon or as to the preservation of rights against prior parties or any
other rights pertaining thereto.

 

(b) The
Collateral Agent shall be deemed to have exercised reasonable care in the custody of the Collateral of any Grantor in its possession if
such Collateral is accorded treatment substantially equal to that which it accords its own property. The Collateral Agent shall not be
liable or responsible for any loss or damage to any of the Grantors’ Collateral, or for any diminution in the value thereof, by
reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by the Collateral
Agent in good faith.

 

(c) Neither
the Collateral Agent nor any Secured Party shall be required to marshal any present or future Collateral for, or other assurance of payment
of, the Secured Obligations or to resort to such Collateral or other assurances of payment in any particular order. All of the rights
of the Collateral Agent hereunder and the Collateral Agent or any other Secured Party in respect of such Collateral and other assurances
of payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that it lawfully may, each
Grantor hereby agrees that it will not invoke any law relating to the marshalling of collateral which might cause delay in or impede the
enforcement of the Collateral Agent’s rights under this Agreement or under any other instrument creating or evidencing any of the
Secured Obligations and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefit of all such laws.

 

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SECTION 10. Application
of Proceeds. All monies collected by the Collateral Agent upon the sale or other disposition of any Collateral pursuant to: (i)
the enforcement of this Agreement; and (ii) the exercise of any of the remedial provisions hereof, together with all other monies received
by the Collateral Agent hereunder (including all monies received in respect of post-petition interest) as a result of the enforcement
or exercise of any remedial rights hereunder or of any distribution of any Collateral upon the bankruptcy, arrangement, receivership,
assignment for the benefit of creditors or any other action or proceeding involving the readjustment of the obligations and indebtedness
of any Grantor, or the application of any Collateral to the payment thereof or any distribution of Collateral upon the liquidation or
dissolution of any Grantor, or the winding up of the assets or business of any Grantor shall be applied in the manner set forth in the
Credit Agreement. It is understood and agreed that each Grantor shall remain liable to the Secured Parties to the extent of any deficiency
between (x) the amount of the Proceeds of the Collateral received by the Collateral Agent hereunder and (y) the aggregate amount of the
Secured Obligations.

 

SECTION 11. Appointment
of Co-Agents. At any time or times, in order to comply with any legal requirement in any jurisdiction, the Collateral Agent may
appoint another bank or trust company or one or more other Persons reasonably acceptable to the Secured Parties and, so long as no Event
of Default has occurred or is continuing, the Grantors, either to act as co-agent or co-agents, jointly with the Collateral Agent, or
to act as separate agent or agents on behalf of the Collateral Agent and the Secured Parties with such power and authority as may be necessary
for the effectual operation of the provisions hereof and specified in the instrument of appointment (which may, in the discretion of the
Collateral Agent, include provisions for the protection of such co-agent or separate agent similar to the provisions of this Section 11).

 

SECTION 12. Indemnity;
Expenses.

 

(a) Each
Grantor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent and each other Secured Party and their respective
successors, assigns, employees, officers, directors, affiliates, agents and servants (hereinafter in this Section 12 referred to individually
as an “Indemnitee,” and, collectively, as “Indemnitees”) harmless from any and all liabilities,
obligations, losses, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements
(including reasonable attorneys’ fees and expenses) of whatsoever kind and nature (collectively, “Losses”) imposed
on, asserted against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Loan Document
or any other document executed in connection herewith or therewith or in any other way connected with the administration of the transactions
contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any
way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession,
operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects,
whether or not discoverable), including the violation by any Grantor of the laws of any country, state or other governmental body or unit,
any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of injury
to or the death of any Person (including any Indemnitee), or property damage), or contract claim; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such Losses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. Each Grantor agrees that
upon written notice by any Indemnitee of the assertion of such a liability, obligation, loss, damage, injury, penalty, claim, demand,
action, suit or judgment, such Grantor shall assume full responsibility for the defense thereof subject to repayment thereof in the event
of a judgment described in the proviso in the immediately preceding sentence.

 

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(b) Without
limiting the application of subsection (a) above, each Grantor agrees, jointly and severally, to pay or reimburse the Collateral Agent
upon demand for any and all fees, costs and expenses of whatever kind or nature incurred in connection with the creation, preservation
or protection of the Security Interests in the Collateral, including, without limitation, all fees and taxes in connection with the recording
or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral,
premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining
or preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or
in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral.

 

(c) Without
limiting the application of subsections (a) or (b) above, each Grantor agrees, jointly and severally, to pay, indemnify and hold each
Indemnitee harmless from and against any loss, costs, damages and expenses that such Indemnitee may suffer, expend or incur in consequence
of or arising out of any misrepresentation by any Grantor in this Agreement, any other Loan Document or in any writing contemplated by
or made or delivered pursuant to or in connection with this Agreement or any other Loan Document.

 

(d) If
and to the extent that the obligations of any Grantor under this Section 12 are unenforceable for any reason, such Grantor hereby agrees
to make the maximum contribution to the payment and satisfaction of such obligations that is permissible under applicable law. This Section
12 shall survive the termination of this Agreement.

 

SECTION 13. Security
Interest Absolute.

 

All rights of the Collateral
Agent, the Security Interests, and all obligations of the Grantors hereunder, shall be absolute and unconditional irrespective of:

 

(a) the
bankruptcy, insolvency or reorganization of any Grantor or any of their Subsidiaries;

 

(b) any
lack of validity or enforceability of any Loan Document;

 

(c) any
change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment
or waiver of or any consent to any departure from the Loan Documents including, without limitation, any increase in the Secured Obligations
resulting from the extension of additional credit to any Grantor or any of their Subsidiaries or otherwise;

 

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

 

(e) any
manner of application of Collateral, or Proceeds thereof, to all or any of the Secured Obligations, or any manner of sale or other disposition
of any Collateral for all or any part of the Secured Obligations or any other assets of any Grantor or any of their Subsidiaries;

 

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(f) any
change, restructuring or termination of the structure or existence of any Grantor or any of their Subsidiaries; or

 

(g) any
other circumstance which might otherwise constitute a defense available to, or a discharge of, any Grantor or a third party grantor.

 

Notwithstanding anything to
the contrary herein, if, at any time on or after the Closing Date, any of the Secured Obligations secured pursuant to any Security Interest
or Lien created by this Agreement include any Special Flood Zone Loan, then the following shall apply: the Secured Obligations in respect
of any such Special Flood Zone Loan shall not be secured pursuant to any Security Interest or Lien created by this Agreement in Collateral
that would constitute “contents” located within Flood Zone Improvements securing such Secured Obligations in respect of such
Special Flood Zone Loan, where, for purposes of the foregoing, (a) “Flood Zone Improvements” means any “improved real
estate” that is located within a Special Flood Hazard Area, (b) a “Special Flood Zone Loan” means a Loan the Secured
Obligations in respect of which are secured by Flood Zone Improvements, and (c) the terms “improved real estate”, “Special
Flood Hazard Area,” and “contents” shall have the meaning ascribed to them by the Flood Disaster Protection Act of 1973,
42 U.S.C. § 4001 et seq., and implementing regulations, 44 C.F.R. Parts 59 et seq., and/or the Federal Emergency Management Agency,
all as may be amended from time to time.

 

SECTION 14. Additional
Grantors. If, pursuant to Section 5.10 of the Credit Agreement, the Grantors shall be required to cause any Person that is
not a Grantor to become a Grantor hereunder, such Person shall execute and deliver to the Collateral Agent a Pledge and Security Agreement
Supplement substantially in the form of Exhibit D hereto and shall thereafter for all purposes be party hereto as a “Grantor”
having the same rights, benefits and obligations as a Grantor initially party hereto.

 

SECTION 15. Termination
of Security Interests; Release of Collateral.

 

(a) Upon
the repayment in full of all Secured Obligations (except for contingent indemnification obligations which by their terms survive the termination
of the Loan Documents) in cash, termination of all commitments to make Loans, extensions of credit or other financial accommodations of
the Secured Parties under the Loan Documents, and the cash collateralization by the Grantors of any obligations with respect to outstanding
letters of credit in accordance with the Credit Agreement, the Security Interests shall terminate and all rights to the Collateral shall
revert to the Grantors.

 

(b) In
the event that any part of the Collateral of any Grantor is sold, dissolved or otherwise disposed of strictly in accordance with the terms
of the Loan Documents and the Proceeds of any such sale, disposition, dissolution or other release are applied strictly in accordance
with the terms of the Loan Documents, to the extent required to be so applied, the Collateral Agent, upon verification of the Grantor’s
compliance with subsection (c) below, shall, upon the written request of such Grantor, notify such Grantor in writing that such Collateral
of such Grantor will be sold, disposed of, released or dissolved free and clear of the Secured Obligations and/or the Security Interests
created by this Agreement and all rights to such Collateral shall revert back to such Grantor and the Collateral Agent, at the request
and expense of the relevant Grantor, will take such actions as set forth in subsection (d) below following such release.

 

(c) At
any time that any Grantor desires that any part of the Collateral of such Grantor to be sold, dissolved or otherwise disposed of strictly
in accordance with the terms of the Loan Documents, such Grantor shall deliver to the Collateral Agent a certificate signed by an Authorized
Officer of such Grantor stating that the release of the respective Collateral is permitted strictly in accordance with the terms of the
Loan Documents and the Proceeds of any such sale, disposition, dissolution or other release are applied strictly in accordance with the
terms of the Loan Documents, to the extent required to be so applied.

 

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(d) Upon
any such termination of the Security Interests or release of such Collateral pursuant to such Grantor’s satisfaction of the condition
set forth in subsection (c) above and the Collateral Agent’s written notification of compliance therewith, the Collateral Agent
will, at the expense of such Grantor, deliver to such Grantor any Collateral held by the Collateral Agent hereunder and execute and deliver
to such Grantor such documents as such Grantor shall reasonably request, but without recourse or warranty to the Collateral Agent, including
but not limited to, written authorization to file termination statements to evidence the termination of the Security Interests in such
Collateral.

 

(e) The
Collateral Agent shall have no liability whatsoever to any other Secured Party as the result of any release of Collateral by it in accordance
with (or which the Collateral Agent in the absence of gross negligence or willful misconduct believes to be in accordance with) this Section 15.

 

SECTION 16. Reinstatement.
This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor
for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors
or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective
or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant
to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations,
whether as a “voidable preference,” “fraudulent conveyance,” “fraudulent transfer” or otherwise, all
as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored
or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

 

SECTION 17. Notices.
All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and
shall be given to: (i) the Collateral Agent at its address for notices provided for in the Credit Agreement and (ii) each Grantor c/o
the Borrowers at its address for notices provided for in the Credit Agreement. All such notices and other communications shall be deemed
delivered as set forth in the Credit Agreement; provided, that no notice to Collateral Agent shall be effective until received
by the Collateral Agent.

 

SECTION 18. No Waiver;
Remedies Cumulative. No failure or delay by the Collateral Agent in exercising any right or remedy hereunder, and no course of
dealing between any Grantor on the one hand and the Collateral Agent or any Secured Party on the other hand shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy hereunder or any other Loan Document preclude any other or further
exercise thereof or the exercise of any other right or remedy hereunder or thereunder. The rights and remedies herein and in the other
Loan Documents are cumulative and not exclusive of any rights or remedies which the Collateral Agent would otherwise have. No notice to
or demand on any Grantor not required hereunder in any case shall entitle any Grantor to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the Collateral Agent’s rights to any other or further action in any circumstances
without notice or demand.

 

SECTION 19. Successors
and Assigns. This Agreement and all obligations of each Grantor hereunder shall be binding upon the successors and assigns of
such Grantor (including any debtor-in-possession on behalf of such Grantor) and shall, together with the rights and remedies of the Collateral
Agent, for the benefit of the Secured Parties, hereunder, inure to the benefit of the Collateral Agent, the Secured Parties, all future
holders of any instrument evidencing any of the Secured Obligations and their respective successors and assigns. No sales of participations,
other sales, assignments, transfers or other dispositions of any agreement governing or instrument evidencing the Secured Obligations
or any portion thereof or interest therein shall in any manner affect the Lien granted to the Collateral Agent for the benefit of the
Secured Parties hereunder. No Grantor may assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Agreement
without the prior written consent of the Secured Parties.

 

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SECTION 20. Amendments.
No amendment or waiver of any provision of this Agreement, nor consent to any departure by any Grantor herefrom, shall in any event be
effective unless the same shall be in writing and signed by the Collateral Agent on behalf of the Secured Parties and then such waiver
or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

SECTION 21. Governing
Law; Waiver of Jury Trial.

 

(a) THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW AND RULE 327(b) OF THE NEW YORK CIVIL PRACTICE LAW AND RULES.

 

(b) EACH
GRANTOR HEREBY irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the courts of the
State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition
or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law,
in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in
any other Loan Document shall affect any right that any Agent, any Lender or any Issuing Bank may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against any Borrowers, ANY GRANTOR, or any other Loan Party or its properties
in the courts of any jurisdiction.

 

(c) each
grantor irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter
have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any
court referred to in paragraph (b) of this Section 21. Each OF THE PARTIES HERETO hereby irrevocably waives, to the fullest extent permitted
by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d) EACH
OF THE PARTIES HERETO irrevocably consents to the service of process in the manner provided for notices in SECTION 17 HEREOF. Nothing
in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

 

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(e) EACH
OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH OF THE PARTIES HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 21.

 

SECTION 22. Severability.
In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable, in whole or in part, in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

SECTION 23. Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts (including by
telecopy), but all of which shall together constitute one and the same instruments. Delivery of an executed counterpart of this Agreement
in electronic (i.e., “pdf” or “tif”) format or by facsimile shall be equally effective as delivery of an original
executed counterpart.

 

SECTION 24. Headings
Descriptive; Interpretation. The headings of the several Sections and subsections of this Agreement are inserted for convenience
only and shall not in any way affect the meaning or construction of any provision of this Agreement. As used herein, the words “include”,
“includes” and “including” are not limiting and shall be deemed to be followed by the phrase “without limitation”.

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Pledge and Security Agreement to be duly executed and delivered by their duly authorized officers
as of the day and year first above written.

 

	 	GRANTORS:
	 	 
	 	1847 GOEDEKER INC.
	 	 
	 	By: 	/s/ Douglas T. Moore
	 	Name:  	Douglas T. Moore
	 	Title: 	Chief Executive Officer
	 	 
	 	APPLIANCES CONNECTION INC.
	 	 
	 	By: 	/s/ Douglas T. Moore
	 	Name: 	Douglas T. Moore
	 	Title: 	Chief Executive Officer
	 	 
	 	1 Stop Electronics Center, Inc.
	 	 
	 	By:  	/s/ Albert Fouerti
	 	Name: 	Albert Fouerti
	 	Title: 	President
	 	 
	 	GOLD COAST APPLIANCES Inc.
	 	 
	 	By:  	/s/ Albert Fouerti
	 	Name: 	Albert Fouerti
	 	Title: 	President
	 	 
	 	SUPERIOR DEALS Inc.
	 	 
	 	By: 	/s/ Albert Fouerti
	 	Name: 	Albert Fouerti
	 	Title: 	President
	 	 
	 	JOE’S APPLIANCES LLC
	 	 
	 	By: 	/s/ Albert Fouerti
	 	Name: 	Albert Fouerti
	 	Title: 	President
	 	 	 
	 	YF LOGISTICS LLC
	 	 
	 	By:  	/s/ Albert Fouerti
	 	Name: 	Albert Fouerti
	 	Title:	 President

 

[Signature Page to Pledge
and Security Agreement]

     

     

    

 

	 	COLLATERAL AGENT:
	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, 

as Collateral Agent
	 	 
	 	By: 	/s/ Brian Diffendale
	 	Name:	Brian Diffendale
	 	Title:	Vice President

 

[Signature Page to Pledge and Security Agreement]

 

     

     

    

 

Exhibit A

 

Form of Copyright Security Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

GRANT OF SECURITY INTEREST

COPYRIGHTS

 

 

FOR GOOD AND VALUABLE CONSIDERATION,
receipt and sufficiency of which are hereby acknowledged, [GRANTOR], a ________ [limited
liability company/limited liability partnership/corporation] (the “Grantor”), with principal offices at [____________]
on this ___ day of [____], 20[_], assigns and grants to MANUFACTURERS AND TRADERS TRUST COMPANY, as Collateral Agent (together with its
successors and assigns, the “Grantee”) with principal offices at One Light Street, 13th Floor, Baltimore, Maryland 21202,
a security interest in (i) all of the Grantor’s right, title and interest in and to the copyrights, copyright registrations, copyright
applications and copyright licenses (the “Copyrights”) set forth on Schedule A attached hereto and all reissues,
extensions or renewals thereof; (ii) all Proceeds (as such term is defined in the Pledge and Security Agreement referred to below) of
the Copyrights, (iii) the goodwill of the businesses with which the Copyrights are associated, and (iv) all causes of action arising prior
to or after the date hereof for infringement of any of the Copyrights or unfair competition regarding the same.

 

THIS GRANT OF SECURITY INTEREST
(this “Grant”), is made to secure the satisfactory performance and payment of all the “Secured Obligations”
of the Grantor, as such term is defined in that certain Pledge and Security Agreement among Grantor, the other grantors from time to time
party thereto and the Grantee, dated as of June 2, 2021 (as the same may be amended, restated, supplemented or otherwise modified from
time to time, the “Pledge and Security Agreement”).

 

This Grant has been granted
in conjunction with the security interest granted to the Grantee under the Pledge and Security Agreement. The rights and remedies of the
Grantee with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the Pledge
and Security Agreement, all terms and provisions of which are incorporated herein by reference. In the event that any provisions of this
Grant are deemed to conflict with the Pledge and Security Agreement, the provisions of the Pledge and Security Agreement shall govern.
This Grant may be executed in counterparts.

 

[SIGNATURES ON THE FOLLOWING
PAGE]

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Grant as of the date referenced above.

 

	 	[GRANTOR], as Grantor 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

	STATE OF _______________	)
	 	)  ss.:
	COUNTY OF  _____________	)

 

On this ____ day of [____],
20[_], before me personally came ________________ who, being by me duly sworn, did state as follows: that he is the ________________ of
[GRANTOR], that he is authorized to execute the foregoing Grant on behalf of said corporation and that he did so by authority of the Board
of Directors of said corporation.

 

	 	 	 
	 	Notary Public 	 

 

     

     

    

Schedule A

 

COPYRIGHTS

 

	Copyright	 	Copyright Registration Number	 	Issue Date
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

COPYRIGHT APPLICATIONS

 

 

 

 

COPYRIGHT LICENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Exhibit B

 

Form of Patent and Trademark Security Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

GRANT OF SECURITY INTEREST

PATENTS AND TRADEMARKS

 

 

FOR GOOD AND VALUABLE CONSIDERATION,
receipt and sufficiency of which are hereby acknowledged, [GRANTOR], a ________ [limited
liability company/limited liability partnership/corporation] (the “Grantor”), with principal offices at [____________]
on this ___ day of [____], 20[_], assigns and grants to MANUFACTURERS AND TRADERS TRUST COMPANY, as Collateral Agent (together with its
successors and assigns, the “Grantee”) with principal offices at One Light Street, 13th Floor, Baltimore, Maryland 21202,
a security interest in (i) all of the Grantor’s right, title and interest in and to the trademarks, trademark registrations, and
trademark applications (the “Trademarks”) set forth on Schedule A attached hereto and all reissues, extensions
or renewals thereof; (ii) all of the Grantor’s right, title and interest in and to the patents, and patent applications (the “Patents”)
set forth on Schedule B attached hereto and all reissues, continuations, continuations-in-part and extensions thereof, in each
case together with (iii) all Proceeds (as such term is defined in the Pledge and Security Agreement referred to below) of the Trademarks
and Patents, (iv) the goodwill of the businesses with which the Trademarks are associated, and (v) all causes of action arising prior
to or after the date hereof for infringement of any of the Trademarks and Patents or unfair competition regarding the same.

 

THIS GRANT OF SECURITY INTEREST
(this “Grant”), is made to secure the satisfactory performance and payment of all the “Secured Obligations”
of the Grantor, as such term is defined in that certain Pledge and Security Agreement among Grantor, the other grantors from time to time
party thereto and the Grantee, dated as of June 2, 2021 (as the same may be amended, restated, supplemented or otherwise modified from
time to time, the “Pledge and Security Agreement”).

 

This Grant has been granted
in conjunction with the security interest granted to the Grantee under the Pledge and Security Agreement. The rights and remedies of the
Grantee with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the Pledge
and Security Agreement, all terms and provisions of which are incorporated herein by reference. In the event that any provisions of this
Grant are deemed to conflict with the Pledge and Security Agreement, the provisions of the Pledge and Security Agreement shall govern.
This Grant may be executed in counterparts.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

 

 

 

 

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
has executed this Grant as of the date referenced above.

 

	 	[GRANTOR], as Grantor 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

SCHEDULE A

 

TRADEMARKS

 

 

 

TRADEMARK APPLICATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

SCHEDULE B

 

REGISTERED PATENTS

 

	Patent	 	Patent Number	 	Issue Date
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

PATENT APPLICATIONS

 

 

 

 

 

     

     

    

 

Exhibit C

 

Form of Uncertificated Securities Control Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

FORM OF UNCERTIFICATED SECURITIES CONTROL AGREEMENT

 

This Uncertificated Securities
Control Agreement (this “Agreement”) dated as of [_____] among _______________ (the “Grantor”), MANUFACTURERS
AND TRADERS TRUST COMPANY, as Collateral Agent for the Secured Parties, (together with its successors and assigns, the “Collateral
Agent”) and _____________, a _______ [limited liability company/limited liability partnership/corporation] (the “Issuer”).
Capitalized terms used but not defined herein shall have the meaning assigned in that certain Pledge and Security Agreement dated as of
June 2, 2021 among the Grantor, the other grantors party thereto and the Collateral Agent (the “Pledge and Security Agreement”).
All references herein to the “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York.

 

Section 1. Registered Ownership
of Shares. The Issuer hereby confirms and agrees that as of the date hereof the Grantor is the registered owner of __________ units
of the Issuer (the “Pledged Shares”) and the Issuer shall not change the registered owner of the Pledged Shares without
the prior written consent of the Collateral Agent.

 

Section 2. Instructions.
If at any time the Issuer shall receive instructions originated by the Collateral Agent relating to the Pledged Shares, the Issuer shall
comply with such instructions without further consent by the Grantor or any other person.

 

Section 3. Additional Representations
and Warranties of the Issuer. The Issuer hereby represents and warrants to the Collateral Agent and the Secured Parties:

 

(a) It has not entered into,
and until the termination of this Agreement will not enter into, any agreement with any other person relating to the Pledged Shares pursuant
to which it has agreed to comply with instructions issued by such other person.

 

(b) It has not entered into,
and until the termination of this Agreement will not enter into, any agreement with the Grantor or the Collateral Agent purporting to
limit or condition the obligation of the Issuer to comply with Instructions as set forth in Section 2 hereof.

 

(c) Except for the claims and
interest of the Collateral Agent and of the Grantor in the Pledged Shares, the Issuer does not know of any claim to, or interest in, the
Pledged Shares. If any person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment,
execution or similar process) against the Pledged Shares, the Issuer will promptly (but in any event, within five (5) Business Days) notify
the Collateral Agent and the Grantor thereof.

 

(d) This Uncertificated Securities
Control Agreement is the valid and legally binding obligation of the Issuer.

 

Section 4. Choice of Law.
This Agreement shall be governed by the laws of the State of New York.

 

Section 5. Conflict with
Other Agreements. In the event of any conflict between this Agreement (or any portion thereof) and any other agreement now existing
or hereafter entered into, the terms of this Agreement shall prevail. No amendment or modification of this Agreement or waiver of any
right hereunder shall be binding on any party hereto unless it is in writing and is signed by all of the parties hereto.

 

     

     

    

 

Section 6. Voting Rights.
Until such time as the Collateral Agent shall otherwise instruct the Issuer in writing, the Grantor shall have the right to vote the Pledged
Shares.

 

Section 7. Successors; Assignment.
The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective corporate
successors or heirs and personal representatives who obtain such rights solely by operation of law. The Collateral Agent may assign its
rights hereunder only with the express written consent of the Issuer and by sending written notice of such assignment to the Grantor.

 

Section 8. Indemnification
of Issuer. The Grantor and the Collateral Agent hereby agree that (a) the Issuer is released from any and all liabilities to the Grantor
and the Collateral Agent arising from the terms of this Agreement and the compliance of the Issuer with the terms hereof, except to the
extent that such liabilities arise from the Issuer’s negligence and (b) the Grantor, its successors and assigns shall at all times
indemnify and save harmless the Issuer from and against any and all claims, actions and suits of others arising out of the terms of this
Agreement or the compliance of the Issuer with the terms hereof, except to the extent that such arises from the Issuer’s negligence,
and from and against any and all liabilities, losses, damages, costs, charges, counsel fees and other expenses of every nature and character
arising by reason of the same, until the termination of this Agreement.

 

Section 9. Notices. All
notices, requests and other communications hereunder shall be given pursuant to the Pledge and Security Agreement.

 

Section 10. Termination.
The obligations of the Issuer to the Collateral Agent pursuant to this Agreement shall continue in effect until the security interests
of the Collateral Agent in the Pledged Shares have been terminated pursuant to the terms of the Pledge and Security Agreement and the
Collateral Agent has notified the Issuer of such termination in writing. The Collateral Agent agrees to provide Notice of Termination
in substantially the form of Exhibit A hereto to the Issuer upon the request of the Grantor on or after the termination of the
Collateral Agent’s security interest in the Pledged Shares pursuant to the terms of the Pledge and Security Agreement. The termination
of this Agreement shall not terminate the Pledged Shares or alter the obligations of the Issuer to the Grantor pursuant to any other agreement
with respect to the Pledged Shares.

 

Section 11. Counterparts.
This Agreement may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party
hereto may execute this Agreement by signing and delivering one or more counterparts.

 

[Signatures on Next Page]

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Uncertificated Securities Control Agreement to be duly executed and delivered by their duly authorized
officers as of the day and year first above written.

 

	 	[NAME OF GRANTOR]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as Collateral Agent
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	[NAME OF ISSUER]
	 	 	 
	 	By:	                  
	 	Name:	 
	 	Title:	 

 

     

     

    

 

Exhibit A

 

 

 

[Letterhead of Collateral Agent]

 

 

 

 

[Date]

 

 

 

[Name and Address of Issuer]

 

 

Attention:  _________________

 

 

Re: Termination
of Uncertificated Securities Control Agreement

 

You are hereby notified that
the Uncertificated Securities Control Agreement between you, [Grantor] and the undersigned (a copy of which is attached) is terminated
and you have no further obligations to the undersigned pursuant to such Agreement. Notwithstanding any previous instructions to you, you
are hereby instructed to accept all future directions with respect to Pledged Shares (as defined in the Uncertificated Control Agreement)
from [Grantor]. This notice terminates any obligations you may have to the undersigned with respect to the Pledged Shares, however nothing
contained in this notice shall alter any obligations which you may otherwise owe to [Grantor] pursuant to any other agreement.

 

You are instructed to deliver
a copy of this notice by facsimile transmission to [Grantor].

 

	 	Very truly yours,
	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as Collateral Agent
	 	 	 
	 	By:	                           
	 	Name:	 
	 	Title:	 

 

     

     

    

 

Exhibit D

 

Form of Pledge and Security Agreement Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

FORM OF PLEDGE AND SECURITY AGREEMENT SUPPLEMENT

 

THIS PLEDGE AND SECURITY AGREEMENT
SUPPLEMENT dated as of ___________ ___, 20__ (this “Supplement”) executed and delivered by ______________________,
a _____________ (the “New Grantor”) in favor of MANUFACTURERS AND TRADERS TRUST COMPANY,
as Collateral Agent (the “Secured Party”).

 

WHEREAS, pursuant to that
certain Credit and Guaranty Agreement dated as of June 2, 2021 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among 1847 GOEDEKER INC., a Delaware corporation (“Goedeker”)
and APPLIANCES CONNECTION INC., a Delaware corporation (“Appliances” and together with Goedeker, each a “Borrower”
and collectively, the “Borrowers”), certain subsidiaries of the Borrowers, the financial institutions from time to
time party thereto as “Lenders”, and the Secured Parties, the Secured Parties and the Lenders have agreed to make available
to the Borrowers certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, to secure obligations
owing by the Grantors under the Credit Agreement and the other Loan Documents, the Borrowers, and certain Subsidiaries of the Borrowers
party thereto (together with the Company, each a “Grantor”, and collectively, the “Grantors”) have
executed and delivered that certain Pledge and Security Agreement dated as of June 2, 2021 (as amended, restated, supplemented or otherwise
modified from time to time, the “Pledge and Security Agreement”) in favor of the Secured Party;

 

WHEREAS, it is a condition
precedent to the continued extension by the Lenders of such financial accommodations that the New Grantor execute this Supplement to become
a party to the Pledge and Security Agreement.

 

NOW, THEREFORE, in consideration
of the above premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the
New Grantor, the New Grantor hereby agrees as follows:

 

Section 1. Accession
to Pledge and Security Agreement; Grant of Security Interest. The New Grantor agrees that it is a “Grantor” under the
Pledge and Security Agreement and assumes all obligations of a “Grantor” thereunder, all as if the New Grantor had been an
original signatory to the Pledge and Security Agreement. Without limiting the generality of the foregoing, the New Grantor hereby:

 

(a) mortgages,
pledges and hypothecates to the Secured Party for the benefit of the Secured Parties, and grants to the Secured Party for the benefit
of the Secured Parties a lien on and security interest in, all of such Grantor’s right, title and interest in, to and under the
Collateral of such Grantor, all as collateral security for the full, prompt and complete payment and performance when due (whether at
stated maturity, by acceleration or otherwise) of the Secured Obligations;

 

(b) makes
to the Secured Parties as of the date hereof each of the representations and warranties contained in Section 4 of the Pledge and
Security Agreement (as modified hereby) and agrees to be bound by each of the covenants contained in the Pledge and Security Agreement,
including without limitation, those contained in Section 5 thereof; and

 

     

     

    

 

(c) consents
and agrees to each other provision set forth in the Pledge and Security Agreement.

 

Section 2. Supplement
to Schedules. The information set forth in Exhibit 1 attached hereto is hereby added to the information set forth in Schedules 1
through 9 of the Pledge and Security Agreement.

 

SECTION 3. GOVERNING
LAW. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 4. Definitions.
Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Pledge and
Security Agreement.

 

[Signatures on Next Page]

 

     

     

    

 

IN WITNESS WHEREOF, the New
Grantor has caused this Pledge and Security Agreement Supplement to be duly executed and delivered under seal by its duly authorized officers
as of the date first written above.

 

	 	[NEW GRANTOR]
	 	 	 	 
	 	By:	        
	 	 	Name:	 
	 	 	Title:	 

 

	 	Address for Notices:
	 	 	 
	 	 	 
	 		 
	 	Attention: __________	 
	 	Telecopy Number:	(___) __________
	 	Telephone Number:	(___) __________

 

Accepted:

 

MANUFACTURERS AND
TRADERS TRUST 

COMPANY, as Collateral Agent

 

	By:	 	 
	 	Name:	 	 
	 	Title:Exhibit 10.14

 

LEASE

 

Agreement of Lease,
made as of this 2nd day of June, 2021, between 1870 Bath Ave. LLC, whose address is 1870 Bath Avenue, Brooklyn, NY 11214, (“Landlord”),
and 1 Stop Electronics Center, Inc., whose address is 1870 Bath Avenue, Brooklyn, NY 11214, (“Tenant”),

 

WITNESSETH:

 

WHEREAS, Landlord is
willing to lease to Tenant and Tenant is willing to hire from Landlord on the terms hereinafter set forth, the entire real property with
all improvements thereon known as 1870 Bath Avenue, Brooklyn, NY 11214, consisting of approximately 21,000 rentable square feet (the “Demised
Premises”).

 

NOW THEREFORE, the
parties hereto, for themselves, their heirs, distributees, executors, administrators, legal representatives, successors and assigns, hereby
covenant as follows:

 

ARTICLE 1

 

Demised Premises; Term; Use

 

1.01 Demise.
Landlord hereby leases to Tenant and Tenant hereby hires from Landlord, subject to the terms and conditions of this lease, the Demised
Premises.

 

1.02 Term.
The term of this Lease (the “Term”) shall commence on June 2, 2021, (the “Commencement Date”), and
shall end, unless sooner terminated as herein provided, on June 1, 2031 (such date is called the “Expiration Date”).

 

1.03 Intentionally
Omitted.

 

1.04 Intentionally
Omitted.

 

1.05 Use.
The Demised Premises shall be used and occupied by Tenant solely as a store for the sale of electronics and appliances (“Permitted
Use”), and for no other purpose. All use of the Demised Premises must be in compliance with rules and regulations promulgated for
the Demised Premises by Landlord which may now or hereafter be in effect and of which Tenant has notice.

 

ARTICLE 2

 

Rent

 

2.01 Rent.
“Rent” shall consist of Fixed Rent (as hereinafter defined) and Additional Rent (as hereinafter defined).

 

2.02 Fixed
Rent. Tenant covenants to pay to Landlord as a net minimum rent (“Fixed Rent”), as follows:

 

	Lease Period	 	Rate PSF	 	 	Monthly Fixed Rent	 	 	Annual Fixed Rent	 
	 	 	 	 	 	 	 	 	 	 
	06/02/2021 – 06/01/2022	 	$	42.436	 	 	$	74,263.00	 	 	$	891,156.00	 
	06/02/2022 – 06/01/2023	 	$	43.709	 	 	$	76,490.89	 	 	$	917,890.68	 
	06/02/2023 – 06/01/2024	 	$	45.020	 	 	$	78,785.62	 	 	$	945,427.44	 
	06/02/2024 – 06/01/2025 	 	$	46.371	 	 	$	81,149.19	 	 	$	973,790.28	 
	06/02/2025 – 06/01/2026	 	$	47.762	 	 	$	83,583.66	 	 	$	1,003,003.93	 
	06/02/2026 – 06/01/2027	 	$	49.195	 	 	$	86,091.17	 	 	$	1,033,094.04	 
	06/02/2027 – 06/01/2028	 	$	50.671	 	 	$	88,673.91	 	 	$	1,064,086.92	 
	06/02/2028 – 06/01/2029	 	$	52.191	 	 	$	91,334.12	 	 	$	1,096,009.44	 
	06/02/2029 – 06/01/2030	 	$	53.757	 	 	$	94,074.15	 	 	$	1,128,889.76	 
	06/02/2030 – 06/01/2031	 	$	55.369	 	 	$	96,896.37	 	 	$	1,162,756.45	 

 

Tenant shall pay the Annual Fixed Rent in advance
in equal monthly installments of the monthly Fixed Rent on the 1st day of each calendar month.

 

    1

     

    

 

2.03 Additional
Rent. Tenant also covenants to pay to Landlord, all amounts and obligations, other than Fixed Rent, which Tenant assumes or agrees
to pay under this lease, (“Additional Rent”), all of which Additional Rent shall be deemed to be rent.

 

In the event of any failure
on the part of Tenant to pay any Additional Rent, Landlord shall have all the rights, powers and remedies provided for in this lease,
at law, in equity or otherwise, in the case of nonpayment of Fixed Rent.

 

2.04 Manner
of Payment. Tenant shall pay all Fixed Rent and Additional Rent as the same shall become due and payable under this lease by wire
transfer or by check (subject to collection) drawn on a New York Clearing House Association member bank, in each case at the times provided
herein without notice or demand and without setoff or counterclaim. All Rent shall be paid in lawful money of the United States to Landlord
at the following address:

 

1870 Bath Ave. LLC

1870 Bath Avenue

Brooklyn, NY 11214

 

or such other place as Landlord may from time
to time designate.

 

Any Additional Rent for which
no due date is specified in this lease shall be due and payable on the 30th day after receipt of invoice for same from Landlord.
All bills, invoices and statements rendered to Tenant with respect to this lease shall be binding and conclusive on Tenant unless, within
sixty (60) days after receipt of same, Tenant notifies Landlord that it is disputing same.

 

Nothing herein shall be construed
to extend the due dates of Tenant’s payments under this lease, or to waive any rights or remedies of Landlord in the event of Tenant’s
late payment. Tenant’s obligations to pay Fixed Rent and Additional Rent shall survive the expiration of the lease term or earlier termination
of this lease.

 

2.05 Intentionally
Omitted.

 

2.06 Application.
If Landlord receives from Tenant any payment less than the sum of the Fixed Rent and Additional Rent due and owing pursuant to this Lease,
Tenant hereby waives its right, if any, to designate the items to which such payment shall be applied and agrees that Landlord in its
sole discretion may apply such payment in whole or in part to any Fixed Rent, any Additional Rent or to any combination thereof then due
and payable hereunder.

 

2.07 Unconditional
Obligations. THIS LEASE IS A NET LEASE AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, THE LANDLORD SHALL HAVE NO RESPONSIBILITY
(OPERATIONALLY OR FINANCIALLY) IN RESPECT OF THE USE OR OPERATION OF THE DEMISED PREMISES. THE TENANT’S OBLIGATION TO PAY ALL RENT AND
ALL OTHER AMOUNTS DUE HEREUNDER AND TO PERFORM ALL THE TERMS HEREOF SHALL BE ABSOLUTE AND UNCONDITIONAL AND SHALL NOT BE AFFECTED OR REDUCED
BY ANY CIRCUMSTANCES, INCLUDING ANY SETOFF, COUNTERCLAIM, RECOUPMENT, DEFENSE, OR OTHER RIGHT WHICH THE TENANT MAY HAVE AGAINST THE LANDLORD
OR ANY OTHER PERSON.

 

2.08 Interest.
If Tenant shall fail to pay (1) any installment of Fixed Rent or any amount of Additional Rent or (2) any other sum of money which
shall become due and payable by Tenant to Landlord pursuant to the terms of this Lease or by reason of Tenant’s occupancy of the
Demised Premises within ten (10) days after the date on which such installment or payment is due, Tenant shall pay (i) a late payment
charge of Five Hundred and 00/100 ($500.00) Dollars and (ii) interest on the amount overdue at a rate of fifteen percent (15%) per annum
(or, if less, the maximum rate permitted by applicable law), from the date on which such installment or payment is due to the date of
payment thereof (but in no event shall such interest be calculated and payable for less than a full calendar month), and such late payment
charge and interest shall be deemed to be Additional Rent.

 

    2

     

    

 

ARTICLE 3

 

Utility Services; Waste Removal; Real Estate
Taxes and Water and Sewer Charges

 

3.01 Utility
Services. Tenant shall pay all charges for gas and electric services serving the Demised Premises.

 

Landlord shall not be liable
or responsible for charges for electricity at the Demised Premises, or any loss, damage or expense which Tenant may sustain or incur if
either the quantity or character of electric service is changed or is no longer available or suitable for Tenant’s requirements. Tenant
covenants and agrees that its use of electric current shall never exceed the capacity of the existing conductors, feeders, risers, wiring
installations or other equipment servicing the Demised Premises. Tenant shall not alter or make any addition to the electrical equipment
without the prior written consent of Landlord. If Landlord grants such consent, all additional risers and other equipment shall be provided
by Landlord, and the reasonable costs and expenses thereof shall be paid by Tenant to Landlord on demand, as Additional Rent, without
setoff or deduction. Tenant will not use or cause to be used equipment which will overload the existing service and installations or interfere
with other tenants’ electrical service. Any change in the character or nature of electrical service to the Demised Premises which
does not result from acts or omissions of Landlord, shall not impose liability on the Landlord for any loss or damage sustained by Tenant
as a result thereof.

 

3.02 Waste
Removal. Tenant shall pay all charges for the garbage removal and collection imposed against the Demised Premises. Landlord shall
not be responsible for any cleaning, waste removal, janitorial or similar services for the Demised Premises.

 

3.03 Real
Estate Taxes and Water and Sewer Charges. As used herein, the following terms shall have the meanings set forth below:

 

“Real Estate Taxes” shall
mean all real estate taxes, assessments, water charges and sewer rents, and other taxes and charges of every nature and kind whatsoever,
whether general or special, ordinary or extraordinary, foreseen or unforeseen, of every character, which at any time may be assessed,
levied, charged, confirmed or imposed on or in respect of or be a lien upon the Demised Premises. “Real Estate Taxes” shall
exclude income, franchise, inheritance or similar taxes; provided, however, that if the method of taxation or assessment shall be changed
so that the whole or any part of the Real Estate Taxes theretofore payable with respect to the building instead shall be levied, charged,
assessed or imposed in whole or in part on the income or rents received by Landlord from the Building or shall otherwise be imposed against
Landlord in the form of a franchise tax or otherwise, then the same shall be deemed Real Estate Taxes for purposes of this Article 3.

 

Tenant shall pay to Landlord,
as additional rent, an amount equal to all Real Estate Taxes, irrespective of whether such excess is due to higher tax rates, increases
in assessed valuation or other cause. Such additional rent may be billed by Landlord at or about the dates on which installments of Real
Estate Taxes are due and payable by Landlord, or at any time thereafter, and such additional rent shall be payable by Tenant to Landlord
within ten days after being billed therefor. An ordinary tax bill shall be conclusive evidence of the amount of Real Estate Taxes for
purposes of computing the amount to be paid by Tenant.

 

The Real Estate Taxes actually
payable by Landlord shall be used in computing the additional rent hereunder. If the amount of Real Estate Taxes is reduced by final determination
of legal proceedings, settlement or otherwise, the additional rent theretofore paid or payable hereunder shall be recomputed on the basis
of such reduced amount, and Tenant shall pay to Landlord as additional rent, within thirty days after being billed therefor, any deficiency
between the additional rent theretofore paid and the amount due as the result of such re-computation. If Landlord receives a refund of
any Real Estate Taxes on which additional rent shall have been based, as a result of a reduction of Real Estate Taxes by final determination
of legal proceedings, settlement or otherwise, the additional rent shall be recomputed based on the net refund, after deducting Landlord’s
expenses, and Tenant shall receive a credit for or refund of any overpayment of additional rent.

 

Landlord shall not be obligated
to contest the levy or assessment of any Real Estate Taxes, and it shall be at Landlord’s sole discretion whether any such contest shall
be undertaken. Landlord hereby reserves the exclusive right to take and prosecute all such proceedings, and if so taken, Landlord may
proceed without notice to Tenant and may prosecute the proceeding, including settlement and discontinuance, in such manner as Landlord
may determine in its sole discretion.

 

    3

     

    

 

In no event shall the annual
Fixed Rent under this lease be reduced by virtue of this Article 3.

 

3.04. Apportionment.
The Additional Rent provided herein shall be apportioned as of the expiration of the lease term or earlier termination of this lease.
The obligations of Tenant to pay Additional Rent as provided for herein shall survive the expiration of the lease term or earlier termination
of this lease. If Tenant continues in possession of the Demised Premises after the expiration of the lease term or earlier termination
of this lease, as a month to month tenant or otherwise, the provisions of this Article 3 shall continue in full force and effect for so
long as Tenant remains in possession of the Demised Premises.

 

The Additional Rent provided
for herein shall be collectible by Landlord in the same manner as the regular installments of fixed rent due under this lease. No delay
or failure by Landlord in preparing or delivering any statement or demand for any additional rent shall constitute a waiver of, or impair
Landlord’s rights to collect, such additional rent.

 

ARTICLE 4

 

Leasehold Improvements; Tenant Covenants

 

4.01 Condition
of Premises. Tenant represents that it has thoroughly inspected the Demised Premises and is fully familiar with the condition
thereof. The Tenant agrees to accept the Demised Premises in its “as is” condition.

 

4.02 Alterations.

 

(a) Tenant
shall make no material structural additions, changes or alterations in or to the Demised Premises (“Material Alterations”)
without Landlord’s prior approval, which approval may be granted or withheld in Landlord’s sole discretion. Landlord shall not need
to approve an Alteration that is not a Material Alteration.

 

“Material Alteration”
means an Alteration that: (i) is not limited to the interior of the Demised Premises or which affects the exterior (including the appearance)
of the Building; (ii) is structural or affects the strength of the Building; (iii) affects the usage or the proper functioning of any
of the Building systems; (iv) has a cost of more than $100,000.00; (v) intentionally omitted or (vi) requires a change to the Building’s
certificate of occupancy.

 

(b) Tenant,
in connection with any Alteration, shall comply with any and all rules and regulations as may be required by the New York City Department
of Buildings, (“DOB”), and any other agency having jurisdiction thereof. Tenant shall not proceed with any Alteration
unless and until Landlord approves Tenant’s plans and specifications therefor which shall not be unreasonably withheld, conditioned or
delayed. If Landlord does not object to Tenant’s plans within fifteen (15) business days, then these plans are deemed to be approved
by Landlord. Any review or approval by Landlord of plans and specifications with respect to any Alteration is solely for Landlord’s benefit,
and without any representation or warranty to Tenant with respect to the adequacy, correctness or efficiency thereof, its compliance with
Laws or otherwise.

 

(c) Tenant
shall pay to Landlord upon demand Landlord’s reasonable costs and expenses (including, without limitation, the fees of any architect or
engineer employed by Landlord or any Superior Lessor or Superior Mortgagee for such purpose) for reviewing plans and specifications and
inspecting Material Alterations. Notwithstanding the foregoing, Landlord agrees that Tenant shall not be responsible to reimburse Landlord
for or to pay for any costs incurred by Landlord for the review of Tenant’s plans relative to the initial alteration made by Tenant
at the Premises. Tenant or any of its contractors or subcontractors shall be required to post a bond or other security in connection with
the performance of any alterations.

 

(d) Upon
the completion of the Alteration in accordance with the terms of this Section 4.02; Tenant shall provide landlord with:

 

		(i)	proof evidencing the payment in full for said Alteration; and
	 	 	 

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		(ii)	written unconditional lien waivers of mechanics’ liens and other liens on the Building from all contractors
performing said Alteration; and

		(iii)	all other submissions as may be, from time to time reasonably required by Landlord.

 

(e) Tenant
shall obtain (and furnish copies to Landlord of) all necessary governmental permits and certificates for the commencement and prosecution
of Alterations and for final approval thereof upon completion, and shall cause Alterations to be performed in compliance therewith, and
in compliance with all Laws and, with the plans and specifications approved by Landlord. Alterations shall be diligently performed in
a good and workmanlike manner, using new or high-quality materials and equipment at least equal in quality and class to the then standards
for the Building established by the DOB and any other agency having jurisdiction thereof. Alterations shall be performed by architects,
engineers and contractors first approved by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed). The
performance of any Alteration shall not be done in a manner which would violate Landlord’s union contracts affecting the Building, or
create any work stoppage, picketing, labor disruption, disharmony or dispute or any interference with the business of Landlord or any
tenant or occupant of the Building. Tenant shall immediately stop the performance of any Alteration if Landlord notifies Tenant that continuing
such Alteration would violate Landlord’s union contracts affecting the Building, or create any work stoppage, picketing, labor disruption,
disharmony or dispute or any interference with the business of Landlord or any tenant or occupant of the Building. Notwithstanding the
foregoing, Landlord agrees that Tenant shall not be obligated to use union labor in the performance of its alterations or in the daily
operation of its business. Tenant shall not resume the performance of such Alteration until such time as such Alteration may be performed
in a manner which shall not violate such union contracts or create such work stoppage, picketing, labor disruption, disharmony or dispute
or interference. Landlord hereby consents to Tenant obtaining, at Tenant’s sole cost and expense, any required permits and approvals
for any alterations based upon Tenant’s architect’s and engineer’s self-certification of the approved plans.

 

(f) Throughout
the performance of Alterations, Tenant or its contractor(s) shall carry worker’s compensation insurance in statutory limits, Builder’s
Risk Completed Value Non-Reporting Form coverage and a policy of commercial general liability providing coverage of the latest version
of ISO form CG0001 or its equivalent, covering Tenant’s indemnity obligations under this Lease, subject to the terms and conditions
of the policy, against claims for bodily injury and property damage, with completed operation endorsement, for any occurrence in or about
the Building, under which Landlord and its agent and any Superior Mortgagee whose name and address have been furnished to Tenant shall
be named as additional insured, with minimum limits of liability under such policy, including products liability and completed operations,
shall be a combined single limit with respect to each occurrence in an amount of not less than Three Million ($3,000,000.00), per occurrence
and aggregate, it being agreed and understood that such limit of coverage may be provided by Tenant’s commercial general liability
policy in conjunction with an umbrella liability or excess liability policy; such policy is to be written by an authorized insurance company
by the State of New York rated A-/XII or better by AM Best Company. Tenant shall furnish Landlord with evidence that such insurance is
in effect at or before the commencement of Alterations and, on request, at reasonable intervals thereafter during the continuance of Alterations.

 

(g) Tenant
shall indemnify and hold Landlord harmless from and against any and all bills for labor performed or equipment, fixtures and materials
furnished to or for Tenant, and from and against any and all violations, liens or claims therefor or against the Demised Premises or the
Building of which it forms a part, and from and against any and all liability, claim, loss, damage or expense, including reasonable attorneys’
fees, in connection with any work performed by or for Tenant. The Demised Premises and the Building shall at all times be free of violations
and liens for labor and materials supplied or claimed to have been supplied to or on behalf of Tenant, and no financing statements or
other security instruments shall be filed against the Demised Premises or the building or the contents thereof.

 

Tenant shall not directly
or indirectly create or permit to be created any mortgage, lien, security interest, pledge, conditional sale, or other encumbrance on
the Demised Premises or any part thereof, any fixtures or materials therein, Tenant’s interest under this Lease, or any Rent hereunder.
The foregoing shall not apply to liens for impositions not yet due, or liens of mechanics, materialmen, suppliers or vendors, incurred
in the ordinary course of business for sums which are not yet due, provided that adequate provision for the payment thereof shall have
been made and the following paragraph is complied with.

 

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If, in connection with any
work being performed by or for Tenant or any subtenant, or in connection with any materials being furnished to Tenant or any subtenant,
any mechanic’s lien or other lien or charge or violation shall be filed or made against the Demised Premises or any part thereof, or if
any such lien or charge or violation shall be filed or made against Landlord as owner, then Tenant, at Tenant’s expense, within forty-five
(45) days after written notice to Tenant of such lien or charge or violation shall have been filed or made, shall cause the same to be
canceled and discharged of record by payment thereof or filing a bond or otherwise. Tenant promptly and diligently shall defend any suit,
action or proceeding which may be brought for the enforcement of such lien or charge or violation; shall satisfy and discharge any judgment
entered therein within thirty (30) days after the entry of such judgment by payment thereof or filing a bond or otherwise; and on demand
shall pay any and all liability, claim, loss, damage or expense, including reasonable attorneys’ fees, suffered or incurred by Landlord
in connection therewith.

 

Nothing in this Lease shall
constitute any consent or request by Landlord, express or implied, for the performance of any labor or services or the furnishing of any
materials or other property in respect of the Demised Premises or any part thereof, nor as giving Tenant any right, power or authority
to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in any fashion
that would permit the filing or making of any lien or claim against Landlord, the Demised Premises or the Building.

 

(h) Tenant
shall deliver to Landlord, within thirty (30) days after the completion of an Alteration, “as-built” drawings thereof. During
the Term, Tenant shall keep records of Alterations costing in excess of $25,000.00 including plans and specifications, copies of contracts,
invoices, evidence of payment and all other records customarily maintained in the real estate business relating to Alterations and the
cost thereof and shall, within thirty (30) days after demand by Landlord, furnish to Landlord copies of such records.

 

(i) All
Alterations to and Fixtures installed by Tenant in the Demised Premises shall be fully paid for by Tenant in cash and shall not be subject
to conditional bills of sale, chattel mortgages, or other title retention agreements.

 

4.03 Landlord’s
and Tenant’s Property.

 

(a) All
fixtures, improvements and appurtenances attached to or built into the Demised Premises as permitted by the terms hereof, whether or not
at the expense of Tenant (collectively, “Fixtures”), shall be and remain a part of the Demised Premises and shall not
be removed by Tenant and Tenant has no accountability for same. All Fixtures constituting Improvements and Betterments (as hereinafter
defined) shall be the property of Tenant during the Term and, upon expiration or earlier termination of this Lease, shall become the property
of Landlord. All Fixtures other than Improvements and Betterments shall, upon installation, be the property of Landlord.

 

“Improvements and
Betterments” means: (i) all Fixtures, if any, installed at the expense of Tenant, whether installed by Tenant or by Landlord
(i.e., excluding any Fixtures paid for by Landlord directly or by way of an allowance); and (ii) all carpeting in the Demised Premises.

 

(b) Notwithstanding
anything to the contrary in Section 4.03(a), all movable partitions, business and trade fixtures, machinery and equipment, and
all furniture, furnishings and other articles of movable personal property owned by Tenant and located in the Demised Premises (collectively,
“Tenant’s Property”) shall be and shall remain the property of Tenant and may be removed by Tenant at any time during
the Term; provided, that if any of Tenant’s Property is removed, Tenant shall repair any damage to the Demised Premises or to the Building
resulting from the installation and/or removal thereof. Notwithstanding the foregoing, any equipment or other property identified in this
Lease or in any leasehold improvement agreement as having been paid for with any allowance or credit granted by Landlord to Tenant shall
not be considered Tenant’s Property and shall be and remain a part of the Demised Premises, shall, upon the expiration or earlier termination
of this Lease, be the property of Landlord and shall not be removed by Tenant.

 

(c) At
or before the Expiration Date, or within ten (10) business days after any earlier termination of this Lease, Tenant, at Tenant’s expense,
shall remove all of Tenant’s Property from the Demised Premises. Tenant shall repair any damage to the Demised Premises or the Building
resulting from any installation and/or removal of Tenant’s Property. Any items of Tenant’s Property which remain in the Demised Premises
after the Expiration Date, or more than ten (10) business days after an earlier termination of this Lease shall be deemed to have been
abandoned, and may be retained by Landlord as Landlord’s property or disposed of by Landlord, without accountability, in such manner as
Landlord shall determine, at Tenant’s expense.

 

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4.04 Access
and Changes to Building.

 

(a)  Landlord
reserves the right, at any time, to make such changes in or to the Building as Landlord may deem necessary or desirable, and Landlord
shall have no liability to Tenant therefor, provided any such change does not unreasonably deprive Tenant and/or Tenant’s customers,
vendors, suppliers, employees, directors, officers, agents, invitees and licensees of easy access to the Demised Premises or any loss
of signage or visibility. Landlord may install and maintain concealed pipes, fans, ducts, wires and conduits within or through the walls,
floors or ceilings of the Demised Premises. In exercising its rights under this Section 4.04, Landlord shall use reasonable efforts
to minimize interference with Tenant’s use of the Demised Premises for the ordinary conduct of Tenant’s business. Landlord agrees that
except in the event of an emergency, it will not perform any work in the Demised Premises which adversely affects Tenant’s business
during its ordinary business hours. Landlord will, at its sole cost and expense, promptly repair any damages to the Demised Premises existing
as of the date hereof. Tenant shall not have any easement for light, views or air, or any other easement or right in or to the use of
any door or any passage or any concourse or any plaza connecting the Building with any other building or to any public conveniences, and
the use of such doors, passages, concourses, plazas and conveniences may, without notice to Tenant, be regulated or discontinued at any
time by Landlord.

 

(b) Except
for the space within the inside surfaces of all walls, hung ceilings, floors, windows and doors bounding the Demised Premises, all of
the Building, including, without limitation, the Building walls, core corridor walls and doors and any core corridor entrance, any terraces
or roofs adjacent to the Demised Premises, and any space in or adjacent to the Demised Premises used for shafts, stacks, pipes, conduits,
fan rooms, ducts, electric or other utilities, sinks or other Building facilities, and the use thereof, as well as access thereto through
the Demised Premises, are reserved to Landlord and are not part of the Demised Premises provided same does not unreasonably interview
with Tenant’s use of the Premises. Landlord reserves the right to name the Building and to change the name or address of the Building
at any time and from time to time.

 

(c) Landlord
shall have no liability to Tenant if at any time any windows of the Demised Premises are either temporarily darkened or obstructed by
reason of any repairs, improvements, maintenance and/or cleaning in or about the Building (or permanently darkened or obstructed if required
by law) or covered by any translucent material for the purpose of energy conservation, or if any part of the Building, other than the
Demised Premises, is temporarily or permanently closed or inoperable.

 

(d) Landlord
and persons authorized by Landlord shall have the right, outside of Tenant’s normal business
hours upon reasonable prior written or telephonic notice to Tenant (except in an emergency), to enter the Demised Premises (together
with any necessary materials and/or equipment), to inspect, clean or perform such work or repairs as Landlord may reasonably deem necessary
or to exhibit the Demised Premises to prospective lenders or purchasers. Landlord shall have no liability to Tenant by reason of any such
entry. Landlord shall not be required to make any improvements or repairs of any kind or character to the Demised Premises during the
Term. Landlord shall operate, maintain and make all necessary repairs (both structural and nonstructural) to the Premises and Building
(including the without limitation, the foundation, the exterior walls and any load-bearing interior walls, the roof, roof membrane, roof),
the Building Systems which provide service to the Demised Premises (but not to the distribution portions of such Building Systems located
within the Demised Premises), the public portions of the Building, both exterior and interior (but excluding storefront and doors of the
Demised Premises). Landlord agrees to use commercially reasonable to minimize interference with any such access/work.

 

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4.05 Maintenance
of Demised Premises.

 

(a)  Tenant,
at Tenant’s expense, shall repair and maintain the interior of the Demised Premises, HVAC serving the Demised Premises and fixtures
of the Demised Premises (but not common areas), all plumbing, electrical, and heating lines, conduits, and risers serving the Demised
Premises from the point where they enter the interior of the Demised Premises; shall repair and maintain all water, sewer, electric, gas,
and other utility lines that service the Demised Premises from the point where they enter the interior of the Demised Premises and, upon
expiration or earlier termination of the Term, Tenant shall surrender the same to Landlord in the working condition as when first occupied,
reasonable wear and tear excepted. Without limiting the foregoing, Tenant shall keep the Demised Premises clean in a manner commensurate
with the standards of first-class office buildings located in the neighborhood of the Building. Tenant’s obligation shall include, without
limitation: the obligation to repair all damage caused by Tenant, its agents, employees, invitees and licensees to the equipment and other
installations in the Demised Premises or anywhere in the Building.

 

(b) Tenant
shall not commit or allow to be committed any waste or damage to any portion of the Demised Premises or the Building.

 

(c) Tenant,
at Tenant’s sole cost and expense, shall maintain (but not be obligated to repair) the sidewalk adjacent to the Demised Premises and keep
it free from obstruction, garbage, refuse, rubbish, trash, snow and ice. However, Tenant, at Tenant’s sole cost and expense, shall
repair the sidewalk if it is damaged by Tenant’s activities or negligence.

 

4.06 Compliance
with Laws. Tenant shall comply with all laws, ordinances, rules, orders and regulations (present, future, ordinary, extraordinary,
foreseen or unforeseen) of any governmental, public or quasi-public authority and of the New York Board of Underwriters, the New York
Fire Insurance Rating Organization and any other entity performing similar functions, at any time in force (collectively “Laws”),
attributable to any work, installation, occupancy, use or manner of use by Tenant of the Demised Premises or any part thereof. Nothing
contained in this Section 4.06 shall require Tenant to make any structural changes unless the same are necessitated by reason of
Tenant’s performance of any Alterations, Tenant’s manner of use of the Demised Premises or the use by Tenant of the Demised Premises for
purposes other than normal and customary ordinary for the Permitted Use. Tenant shall procure and maintain all licenses and permits required
for its business. Tenant shall be permitted to contest all municipal, governmental or other regulatory violations, where permitted by
law.

 

4.07 Tenant
Advertising and Signage. Tenant shall have the right to use the name or likeness of the Building in any advertising (by whatever
medium) without Landlord’s consent.

 

Subject to Landlord’s
prior written approval, which shall not be unreasonably withheld, conditioned or delayed, Tenant, at its sole cost and expense, may install
identification signage on the façade of the Building (collectively, “Tenant’s Signage”). All such signage
shall be subject to Tenant’s obtaining all required governmental approvals. All permitted signs shall be maintained by Tenant at
its expense in a first-class and safe condition and appearance. Upon the expiration or earlier termination of this Lease, Tenant shall
remove all of its signs at Tenant’s sole cost and expense and repair any damage caused by such removal. The graphics, materials,
color, design, lettering, lighting, size, illumination, specifications and exact location and size of Tenant’s Signage (collectively,
the “Sign Specifications”) shall be subject to the prior written approval of Landlord, which approval shall not be
unreasonably withheld, conditioned or delayed. Tenant hereby acknowledges that, notwithstanding Landlord’s approval of Tenant’s
Signage, Landlord has made no representation or warranty to Tenant with respect to the probability of obtaining all necessary governmental
approvals and permits for Tenant’s Signage. In the event Tenant does not receive the necessary governmental approvals and permits
for Tenant’s Signage, Tenant’s and Landlord’s rights and obligations under the remaining terms of this Lease shall be
unaffected. If Landlord elects to install a multi-tenant identification sign at the entrance to the Building, Tenant shall be entitled
to install its name on such sign (subject to availability on a pro-rata basis based on the relative square footages leased by the tenants
of the Building), at Tenant’s sole cost and expense. Where the erection of scaffolding and/or protective barriers are required for
work performed by the Landlord or Landlord’s agents, Landlord shall provide signage for Tenant’s business, at Landlord’s
sole cost and expense and any scaffold shall be double height and erected only for shortest period necessary to perform any work. Landlord
represents that all local law work has been completed and no anticipated scaffolding is to be erected in the next 12 months. Landlord’s
consent is not required for interior or window signage.

 

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4.08 Right
to Perform Tenant Covenants. If Tenant fails to perform any of its obligations under this Lease beyond the expiration of any grace
period or applicable notice and cure period, Landlord, any Superior Lessor or any Superior Mortgagee (each, a “Curing Party”)
may perform the same at the expense of Tenant: (a) immediately and without notice in the case of emergency or in case such failure interferes
with the use of space by any other tenant in the Building or with the efficient operation of the Building or may result in a violation
of any Law or in a cancellation of any insurance policy maintained by Landlord; and (b) in any other case if such failure continues beyond
any applicable grace period. If a Curing Party performs any of Tenant’s obligations under this Lease, Tenant shall pay to Landlord (as
Additional Rent) the costs thereof, together with interest at the Interest Rate from the date incurred by the Curing Party until paid
by Tenant, within fifteen (15) days after receipt by Tenant of a statement as to the amounts of such costs. If the Curing Party effects
such cure by bonding any lien which Tenant is required to bond or otherwise discharge, Tenant shall obtain and substitute a bond for the
Curing Party’s bond and shall reimburse the Curing Party for the cost of the Curing Party’s bond.

 

ARTICLE 5

 

Assignment and Subletting

 

5.01 Assignment;
Etc. Subject to the further provisions of this Article 5, neither this lease nor the term and estate hereby granted, nor
any part hereof or thereof, shall be assigned, mortgaged, pledged, encumbered or otherwise transferred voluntarily, involuntarily, by
operation of law or otherwise, and neither the Demised Premises, nor any part thereof, shall be subleased, licensed, used or occupied
by any person or entity other than Tenant or encumbered in any manner by reason of any act or omission on the part of Tenant, and no rents
or other sums receivable by Tenant under any sublease of all or any part of the Demised Premises shall be assigned or otherwise encumbered,
without the prior consent of Landlord, which consent shall not be unreasonably withheld. The dissolution or direct or indirect transfer
of a majority of the interest in, or control of, Tenant (however accomplished including, by way of example, the addition of new partners
or members or withdrawal of existing partners or members, or transfers of interests in distributions of profits or losses of Tenant, issuance
of additional stock, redemption of stock, stock voting agreement, or change in classes of stock) shall be deemed an assignment of this
lease regardless of whether the transfer is made in or by one or more transactions, or whether one or more persons or entities hold the
controlling interest prior to the transfer or afterwards. An agreement under which another person or entity becomes responsible for all
or a portion of Tenant’s obligations under this lease shall be deemed an assignment of this lease. No assignment or other transfer of
this lease and the term and estate hereby granted, and no subletting of all or any portion of the Demised Premises shall relieve Tenant
of its liability under this lease or of the obligation to obtain Landlord’s prior consent to any further assignment, other transfer or
subletting. Any attempt to assign this lease or sublet all or any portion of the Demised Premises in violation of this Article 5
shall be null and void.

 

5.02 Intentionally
Omitted.

 

5.03 Assignment
and Subletting Procedures.

 

(a)  If
Tenant desires to assign this lease or sublet the Demised Premises, Tenant shall notify Landlord (a “Transfer Notice”)
of such desire, which notice shall be accompanied by: (i) a copy of the proposed assignment or sublease and all related agreements, the
effective date of which shall be at least 30 days after the giving of the Transfer Notice; (ii) a statement setting forth in reasonable
detail the identity of the proposed assignee or subtenant, the nature of its business and its proposed use of the Demised Premises; (iii)
current financial information with respect to the proposed assignee or subtenant, including without limitation, its most recent financial
statements; and (iv) such other information as Landlord may reasonably request. Landlord’s consent to the proposed assignment or sublease
shall not be unreasonably withheld or delayed, provided that:

 

		(i)	in Landlord’s judgment the proposed assignee or subtenant will use the Demised Premises in a manner that:
(A) is in keeping with the then standards of the Demised Premises; and (B) is limited to the use expressly permitted under this lease;
	 	 	 

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		(ii)	the proposed assignee or subtenant is, in Landlord’s judgment, a reputable person or entity of good character
and with sufficient financial worth considering the responsibility involved;

		(iii)	intentionally omitted;

		(iv)	intentionally omitted;

		(v)	the form of the proposed sublease shall be reasonably satisfactory to Landlord and shall comply with the
applicable provisions of this Article 5;

		(vi)	the aggregate rent to be paid by the proposed subtenant is not less than the greater of: (A) the fair
rental value of the sublet space as sublet space; or (B) 90% of the fair rental value of the sublet space if such space were being leased
directly by Landlord (in each case as reasonably determined by Landlord);

		(vii)	Tenant shall reimburse Landlord on demand for any costs incurred by Landlord in connection with said assignment
or sublease, including, without limitation, the costs of making investigations as to the acceptability of the proposed assignee or subtenant,
and legal costs incurred in connection with the granting of any requested consent.

 

(b) If
Landlord consents to a proposed assignment or sublease and Tenant fails to execute and deliver the assignment or sublease to which Landlord
consented within days after the giving of such consent, then Tenant shall again comply with this Article 5 before assigning this lease
or subletting all or part of the Demised Premises.

 

5.04 General
Provisions.

 

(a)  If
this lease is assigned, whether or not in violation of this lease, Landlord may collect rent from the assignee. If the Demised Premises
or any part thereof are sublet or occupied by anybody other than Tenant, whether or not in violation of this lease, Landlord may, after
default by Tenant, and expiration of Tenant’s time to cure such default, collect rent from the subtenant or occupant. In either event,
Landlord may apply the net amount collected against Rent, but no such assignment, subletting, occupancy or collection shall be deemed
a waiver of any of the provisions of Section 5.01(a), or the acceptance of the assignee, subtenant or occupant as tenant, or a
release of Tenant from the performance of Tenant’s obligations under this lease.

 

(b) No
assignment or transfer shall be effective until the assignee delivers to Landlord: (i) evidence that the assignee, as Tenant hereunder,
has complied with the requirements of Sections 7.02 and 7.03; and (ii) an agreement in form and substance satisfactory to Landlord
whereby the assignee assumes Tenant’s obligations under this lease.

 

(c) Notwithstanding
any assignment or transfer, whether or not in violation of this lease, and notwithstanding the acceptance of any Rent by Landlord from
an assignee, transferee, or any other party, the original named Tenant and each successor Tenant shall remain fully liable for the payment
of the Rent and the performance of all of Tenant’s other obligations under this lease. The joint and several liability of Tenant and any
immediate or remote successor in interest of Tenant shall not be discharged, released or impaired in any respect by any agreement made
by Landlord extending the time to perform, or otherwise modifying, any of the obligations of Tenant under this lease, or by any waiver
or failure of Landlord to enforce any of the obligations of Tenant under this lease.

 

(d) Each
subletting by Tenant shall be subject to the following:

 

		(i)	No subletting shall be for a term (including any renewal or extension options contained in the sublease) ending later than one day
prior to the Expiration Date.

		(ii)	No sublease shall be valid, and no subtenant shall take possession of the Demised Premises or any part
thereof, until there has been delivered to Landlord, both: (A) an executed counterpart of such sublease; and (B) a certificate of insurance
evidencing that: (x) Landlord is an additional insured under the insurance policies required to be maintained by occupants of the Demised
Premises pursuant to Section 7.02; and (y) there is in full force and effect, the insurance otherwise required by Section 7.02.
	 	 	 

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		(iii)	Each sublease shall provide that it is subject and subordinate to this lease, and that in the event of
termination, reentry or dispossess by Landlord under this lease Landlord may, at its option, take over all of the right, title and interest
of Tenant, as sublessor, under such sublease, and such subtenant shall, at Landlord’s option, attorn to Landlord pursuant to the then
executory provisions of such sublease, except that Landlord shall not be liable for, subject to or bound by any item of the type that
a Successor Landlord is not so liable for, subject to or bound by in the case of an attornment by Tenant to a Successor Landlord under
Section 6.01(a).

 

(e) Each
sublease shall provide that the subtenant may not assign its rights thereunder or further sublet the space demised under the sublease,
in whole or in part, without Landlord’s consent and without complying with all of the terms and conditions of this Article 5, including,
without limitation, Section 5.04, which for purposes of this Section 5.04(e) shall be deemed to be appropriately modified
to take into account that the transaction in question is an assignment of the sublease or a further subletting of the space demised under
the sublease, as the case may be.

 

(f) Tenant
shall not publicly advertise the availability of the Demised Premises or any portion thereof as sublet space or by way of an assignment
of this lease, without first obtaining Landlord’s written consent, which consent shall not be unreasonably withheld or delayed provided
that Tenant shall in no event advertise the rental rate or any description thereof.

 

ARTICLE 6

 

Subordination; Default; Indemnity

 

6.01 Subordination.

 

(a)  This
lease is subject and subordinate to each mortgage (a “Superior Mortgage”) and each underlying lease (a “Superior
lease”) which may now or hereafter affect all or any portion of the Demised Premises or any interest therein. The lessor under
a Superior lease is called a “Superior Lessor” and the mortgagee under a Superior Mortgage is called a “Superior
Mortgagee.” Tenant shall execute, acknowledge and deliver any instrument reasonably requested by Landlord, a Superior Lessor
or Superior Mortgagee to evidence such subordination, but no such instrument shall be necessary to make such subordination effective.
Tenant shall execute any amendment of this lease requested by a Superior Mortgagee or a Superior Lessor, provided such amendment shall
not result in a material increase in Tenant’s obligations under this lease or a material reduction in the benefits available to Tenant.
In the event of the enforcement by a Superior Mortgagee of the remedies provided for by law or by such Superior Mortgage, or in the event
of the termination or expiration of a Superior lease, Tenant, upon request of such Superior Mortgagee, Superior Lessor or any person succeeding
to the interest of such mortgagee or lessor (each, a “Successor Landlord”), shall automatically become the tenant of
such Successor Landlord without change in the terms or provisions of this lease (it being understood that Tenant shall, if requested,
enter into a new lease on terms materially the same as the terms of this Lease); provided that Successor Landlord shall not be:

 

		(i)	liable for any act, omission or default of any prior landlord (including, without limitation, Landlord);

		(ii)	liable for the return of any moneys paid to or on deposit with any prior landlord (including, without
limitation, Landlord), except to the extent such moneys or deposits are delivered to such Successor Landlord;

		(iii)	subject to any offset, claims or defense that Tenant might have against any prior landlord (including,
without limitation, Landlord);

		(iv)	bound by any Rent which Tenant might have paid for more than the current month to any prior landlord (including,
without limitation, Landlord) unless actually received by such Successor Landlord;

		(v)	bound by any covenant to perform or complete any construction in connection with the Demised Premises
or to pay any sums to Tenant in connection therewith; or

		(vi)	bound by any waiver or forbearance under, or any amendment, modification, abridgment, cancellation or
surrender of, this lease made without the consent of such Successor Landlord.

 

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Upon request by such Successor
Landlord, Tenant shall execute and deliver an instrument or instruments, reasonably requested by such Successor Landlord, confirming the
attornment provided for herein, but no such instrument shall be necessary to make such attornment effective.

 

(b) Tenant
shall give each Superior Mortgagee and each Superior Lessor a copy of any notice of default served upon Landlord, provided that Tenant
has been notified of the address of such mortgagee or lessor. If Landlord fails to cure any default as to which Tenant is obligated to
give notice pursuant to the preceding sentence within the time provided for in this lease, then each such mortgagee or lessor shall have
an additional 30 days after receipt of such notice within which to cure such default or if such default cannot be cured within that time,
then such additional time as may be necessary if, within such 30 days, any such mortgagee or lessor has commenced and is diligently pursuing
the remedies necessary to cure such default (including, without limitation, commencement of foreclosure proceedings or eviction proceedings,
if necessary to effect such cure), in which event this lease shall not be terminated and Tenant shall not exercise any other rights or
remedies under this lease or otherwise while such remedies are being so diligently pursued. Nothing herein shall be deemed to imply that
Tenant has any right to terminate this lease or any other right or remedy, except as may be otherwise expressly provided for in this lease.

 

(c) Without
limiting Tenant’s obligations under Section 6.01(a), Tenant covenants and agrees that if by reason of a default under any underlying
lease through which Landlord derives its leasehold estate in the Demised Premises (an “Underlying lease”), the Underlying
lease and the leasehold estate of the Landlord in the Demised Premises is terminated, Tenant will attorn to the then holder of the reversionary
interest in the Demised Premises (the “Underlying Landlord”) and will recognize the Underlying Landlord as Tenant’s
landlord under this lease, at the election of such Underlying Landlord. Tenant agrees to execute and deliver, at any time and from time
to time, upon the request of the Landlord or of the Underlying Landlord any instrument which may be necessary or appropriate to evidence
such attornment and Tenant hereby irrevocably appoints the Landlord or the Underlying Landlord under such Underlying lease the attorney-in-fact
of Tenant to execute and deliver for and on behalf of Tenant any such instrument. Tenant further waives the provisions of any statute
or rule or law now or hereafter in effect which may give or purport to give Tenant any right of election to terminate this lease or to
surrender possession of the Demised Premises in the event any proceeding is brought by the Underlying Landlord to terminate the Underlying
lease, and agrees that unless and until the Underlying Landlord, in connection with any such proceeding, shall elect to terminate this
lease and the rights of the Tenant hereunder, this lease shall not be affected in any way whatsoever by any such proceeding.

 

6.02 Estoppel
Certificate. Tenant shall, at any time and from time to time, within 10 days after request by Landlord, execute and deliver to
Landlord (or to such person or entity as Landlord may designate) a statement certifying that this lease is unmodified and in full force
and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications),
certifying the Commencement Date, Expiration Date and the dates to which the Fixed Rent and Additional Rent have been paid and stating
whether or not, to the best knowledge of Tenant, Landlord is in default in performance of any of its obligations under this lease, and,
if so, specifying each such default of which Tenant has knowledge, it being intended that any such statement shall be deemed a representation
and warranty to be relied upon by Landlord. Tenant also shall include or confirm in any such statement such other information concerning
this lease as Landlord may reasonably request.

 

6.03 Default.
This lease and the term and estate hereby granted are subject to the limitation that:

 

		(a)	if Tenant defaults in the payment of any Rent, Fixed or Additional, and such default continues for 5 days
after Landlord gives to Tenant a notice specifying such default;

		(b)	if Tenant defaults in the keeping, observance or performance of any covenant or agreement, (other than
a default of the character referred to in Sections 6.03(a), (c), (d), (e), (f) or (g)) and if such
default continues and is not cured within 15 days after Landlord gives to Tenant a written notice specifying the same, or, in the case
of a default which for causes beyond Tenant’s reasonable control cannot with due diligence be cured within such period of 15 days, if
Tenant shall not immediately upon the receipt of such notice: (i) notify Landlord of Tenant’s intention duly to institute all steps necessary
to cure such default; and (ii) institute and thereafter diligently prosecute to completion all steps necessary to cure the same;
	 	 	 

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		(c)	if this lease or the estate hereby granted would, by operation of law or otherwise, devolve upon or pass
to any person or entity other than Tenant, except as permitted by Article 5;

		(d)	if Tenant shall abandon the Demised Premises (and the fact that any of Tenant’s Property remains in the
Demised Premises shall not be evidence that Tenant has not abandoned the Demised Premises);

		(e)	if Tenant or any Affiliate of Tenant defaults under any other lease with Landlord or any Affiliate of
Landlord, which default shall continue beyond any applicable grace period provided under such other lease;

		(f)	if a default of the kind set forth in Section 6.03(a) or (b) shall occur and have been cured,
and if a similar default shall occur more than once within the next 365 days, whether or not such similar defaults are cured within the
applicable grace period; or

		(g)	if Tenant fails to deliver to Landlord any Security Deposit within the time period required.

 

then, in any of such cases,
in addition to any other remedies available to Landlord at law or in equity, Landlord shall be entitled to give to Tenant a written notice
of intention to end the Term or a renewal thereof at the expiration of 5 days from the date of the giving of such notice, and, in the
event such notice is given, this lease and the term and estate hereby granted shall terminate upon the expiration of such 5 days with
the same effect as if the last of such 5 days were the Expiration Date, but Tenant shall remain liable for damages as provided herein
or pursuant to law.

 

6.04 Re-entry
by Landlord. If Tenant defaults in the payment of any Rent and such default continues for 5 days, or if this lease shall terminate
as in Section 6.03 provided, Landlord or Landlord’s agents and servants may immediately or at any time thereafter re-enter into
or upon the Demised Premises, or any part thereof, either by summary dispossess proceedings or by any suitable action or proceeding at
law, without being liable to indictment, prosecution or damages therefor, and may repossess the same, and may remove any persons therefrom,
to the end that Landlord may have, hold and enjoy the Demised Premises. The words “re-enter” and “re-entering” as
used in this lease are not restricted to their technical legal meanings. Upon such termination or re-entry, Tenant shall pay to Landlord
any Rent then due and owing (in addition to any damages payable under Section 6.05).

 

6.05 Damages.
If this lease is terminated under Section 6.03, or if Landlord re-enters the Demised Premises under Section 6.04, Tenant
shall pay to Landlord as damages, at the election of Landlord, either:

 

		(a)	a sum which, at the time of such termination, represents the then value of the excess, if any, of: (1)
the aggregate of the Rent which, had this lease not terminated, would have been payable hereunder by Tenant for the period commencing
on the day following the date of such termination or re-entry to and including the Expiration Date; over (2) the aggregate fair rental
value of the Demised Premises for the same period (for the purposes of this clause (a) the amount of Additional Rent which would
have been payable by Tenant under Sections 2.02 and 2.03 shall, for each calendar year ending after such termination or
re-entry, be deemed to be an amount equal to 105% of the amount of such Additional Rent payable by Tenant for the calendar year immediately
preceding the calendar year in which such termination or re-entry shall occur in the case of the first such calendar year and the immediately
prior calendar year in the case of each succeeding calendar year); or

		(b)	sums equal to the Rent that would have been payable by Tenant through and including the Expiration Date
had this lease not terminated or had Landlord not re-entered the Demised Premises, payable upon the due dates therefor specified in this
lease; provided, that if Landlord shall relet all or any part of the Demised Premises for all or any part of the period commencing
on the day following the date of such termination or re-entry to and including the Expiration Date, Landlord shall credit Tenant with
the net rents received by Landlord from such reletting, such net rents to be determined by first deducting from the gross rents as and
when received by Landlord from such reletting the expenses incurred or paid by Landlord in terminating this lease and of re-entering the
Demised Premises and of securing possession thereof, as well as the expenses of reletting, including, without limitation, altering and
preparing the Demised Premises for new tenants, brokers’ commissions, and all other expenses properly chargeable against the Demised Premises
and the rental therefrom in connection with such reletting, it being understood that any such reletting may be for a period equal to or
shorter or longer than said period; provided, further, that: (i) in no event shall Tenant be entitled to receive any excess of
such net rents over the sums payable by Tenant to Landlord under this lease; (ii) in no event shall Tenant be entitled, in any suit for
the collection of damages pursuant to this Section 6.05(b), to a credit in respect of any net rents from a reletting except to
the extent that such net rents are actually received by Landlord prior to the commencement of such suit; (iii) if the Demised Premises
or any part thereof should be relet in combination with other space, then proper apportionment on a square foot rentable area basis shall
be made of the rent received from such reletting and of the expenses of reletting; and (iv) Landlord shall have no obligation to so relet
the Demised Premises and Tenant hereby waives any right Tenant may have, at law or in equity, to require Landlord to so relet the Demised
Premises.

 

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Suit or suits for the recovery
of any damages payable hereunder by Tenant, or any installments thereof, may be brought by Landlord from time to time at its election,
and nothing contained herein shall require Landlord to postpone suit until the date when the Term or a renewal thereof would have expired
but for such termination or re-entry.

 

6.06 Other
Remedies. Nothing contained in this lease shall be construed as limiting or precluding the recovery by Landlord against Tenant
of any sums or damages to which, in addition to the damages particularly provided above, Landlord may lawfully be entitled by reason of
any default hereunder on the part of Tenant. Anything in this lease to the contrary notwithstanding, during the continuation of any default
by Tenant, Tenant shall not be entitled to exercise any rights or options, or to receive any funds or proceeds being held, under or pursuant
to this lease.

 

6.07 Right
to Injunction. In the event of a breach or threatened breach by Tenant of any of its obligations under this lease, Landlord shall
also have the right of injunction. The specified remedies to which Landlord may resort hereunder are cumulative and are not intended to
be exclusive of any other remedies or means of redress to which Landlord may lawfully be entitled and Landlord may invoke any remedy allowed
at law or in equity as if specific remedies were not herein provided for.

 

6.08 Certain
Waivers. Tenant waives and surrenders all right and privilege that Tenant might have under or by reason of any present or future
law to redeem the Demised Premises or to have a continuance of this lease after Tenant is dispossessed or ejected therefrom by process
of law or under the terms of this lease or after any termination of this lease. Tenant also waives the provisions of any law relating
to notice and/or delay in levy of execution in case of any eviction or dispossession for nonpayment of rent, and the provisions of any
successor or other law of like import. Landlord and Tenant each waive trial by jury in any action in connection with this lease.

 

6.09 No
Waiver. Failure by Landlord to declare any default immediately upon its occurrence or delay in taking any action in connection
with such default shall not waive such default but Landlord shall have the right to declare any such default at any time thereafter. Any
amounts paid by Tenant to Landlord may be applied by Landlord, in Landlord’s discretion, to any items then owing by Tenant to Landlord
under this lease. Receipt by Landlord of a partial payment shall not be deemed to be an accord and satisfaction (notwithstanding any endorsement
or statement on any check or any letter accompanying any check or payment) nor shall such receipt constitute a waiver by Landlord of Tenant’s
obligation to make full payment. No act or thing done by Landlord or its agents shall be deemed an acceptance of a surrender of the Demised
Premises, and no agreement to accept such surrender shall be valid unless in writing and signed by Landlord and by each Superior Lessor
and Superior Mortgagee whose lease or mortgage provides that any such surrender may not be accepted without its consent. Landlord’s
receipt of Fixed Rent and Additional Rent at a time when Landlord has knowledge or should have knowledge of any default or violation shall
not be deemed a waiver thereof.

 

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6.10 Holding
Over. If Tenant holds over without the consent of Landlord after expiration or termination of this lease, Tenant shall:

 

		(a)	pay as a use and occupancy charge for each month of the holdover tenancy an amount equal to 200% multiplied
by the greater of: (i) the fair market rental value of the Demised Premises for such month (as reasonably determined by Landlord); or
(ii) the Rent which Tenant was obligated to pay for the month immediately preceding the end of the Term or a renewal thereof; and

		(b)	be liable to Landlord for and indemnify Landlord against: (i) any payment or rent concession which Landlord
may be required to make to any tenant obtained by Landlord for all or any part of the Demised Premises (a “New Tenant”)
by reason of the late delivery of space to the New Tenant as a result of Tenant’s holding over or in order to induce such New Tenant not
to terminate its lease by reason of the holding over by Tenant; (ii) the loss of the benefit of the bargain if any New Tenant shall terminate
its lease by reason of the holding over by Tenant; and (iii) any claim for damages by any New Tenant.

 

No holding over by Tenant
after the Term or a renewal thereof shall operate to extend the Term or a renewal thereof. Notwithstanding the foregoing, the acceptance
of any use and occupancy charges paid by Tenant pursuant to this Section 6.10 shall not preclude Landlord from commencing and prosecuting
a holdover or summary eviction proceeding.

 

6.11 Attorneys’
Fees. If Landlord places the enforcement of this lease or any part thereof, or the collection of any Rent due or to become due
hereunder, or recovery of the possession of the Demised Premises, in the hands of an attorney, or files suit upon the same, or in the
event any bankruptcy, insolvency or other similar proceeding is commenced involving Tenant, Tenant shall, upon demand, pay Landlord for
any attorneys’ fees and disbursements and court costs incurred by Landlord.

 

6.12 Nonliability
and Indemnification.

 

(a)  None
of Landlord, any Superior Lessor, any Superior Mortgagee or any direct or indirect member, partner, director, officer, shareholder, principal,
agent, servant or employee of Landlord, any Superior Lessor or any Superior Mortgagee (whether disclosed or undisclosed), shall be liable
to Tenant for:

 

		(i)	any loss, injury or damage to Tenant or to any other person, or to its or their property, irrespective
of the cause of such injury, damage or loss, nor shall the aforesaid parties be liable for any loss of or damage to property of Tenant
or of others entrusted to employees of Landlord; provided, that, except to the extent of the release of liability and waiver of
subrogation provided in Section 7.03, the foregoing shall not be deemed to relieve Landlord of any liability to the extent resulting
from the gross negligence or willful misconduct of Landlord, its agents, servants or employees in the operation or maintenance of the
Demised Premises;

		(ii)	any loss, injury or damage described in clause (i) above caused by other tenants or persons in, upon or
about the Demised Premises, or caused by operations in construction of any private, public or quasi-public work; or

		(iii)	even if negligent, consequential damages arising out of any loss of use of the Demised Premises or any
equipment, facilities or other Tenant’s Property therein or otherwise.

 

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(b) Tenant
shall indemnify and hold harmless Landlord, all Superior Lessors and all Superior Mortgagees and each of their respective direct and indirect
members, partners, directors, officers, shareholders, principals, agents and employees (each, an “Indemnified Party”),
from and against any and all claims arising from or in connection with:

 

		(i)	the conduct or management of the Demised Premises or of any business therein, or any work or thing done,
or any condition created, in or about the Demised Premises;

		(ii)	any act, omission or negligence of Tenant or any person claiming through or under Tenant or any of their
respective direct or indirect members, partners, shareholders, directors, officers, agents, employees or contractors;

		(iii)	any accident, injury or damage occurring in, at or upon the Demised Premises;

		(iv)	any default by Tenant in the performance of Tenant’s obligations under this lease; and

		(v)	any brokerage commission or similar compensation claimed to be due by reason of any proposed subletting
or assignment by Tenant;

 

together with all costs, expenses and liabilities
incurred in connection with each such claim or action or proceeding brought thereon, including, without limitation, all attorneys’ fees
and disbursements; provided, that the foregoing indemnity shall not apply to the extent such claim results from the gross negligence
(other than negligence to which the release of liability and waiver of subrogation provided in Section 7.03 applies) or willful
misconduct of the Indemnified Party. If any action or proceeding is brought against any Indemnified Party by reason of any such claim,
Tenant, upon notice from such Indemnified Party shall resist and defend such action or proceeding (by counsel reasonably satisfactory
to such Indemnified Party).

 

ARTICLE 7

 

Insurance; Casualty; Condemnation

 

7.01 Compliance
with Insurance Standards.

 

(a)  Tenant
shall not violate, or permit the violation of, any condition imposed by any insurance policy then issued in respect of the Demised Premises
and shall not do, or permit anything to be done, or keep or permit anything to be kept in the Demised Premises, which would subject Landlord
or any Superior Mortgagee to any liability or responsibility for personal injury or death or property damage, or which would increase
any insurance rate in respect of the Demised Premises over the rate which would otherwise then be in effect or which would result in insurance
companies of good standing refusing to insure the Demised Premises in amounts reasonably satisfactory to Landlord, or which would result
in the cancellation of, or the assertion of any defense by the insurer in whole or in part to claims under, any policy of insurance in
respect of the Demised Premises.

 

(b) If,
by reason of any failure of Tenant to comply with this lease, the premiums on Landlord’s insurance on the Demised Premises shall be higher
than they otherwise would be, Tenant shall reimburse Landlord, on demand, for that part of such premiums attributable to such failure
on the part of Tenant. A schedule or “make up” of rates for the Demised Premises issued by the New York Fire Insurance Rating
Organization or other similar body making rates for insurance for the Demised Premises shall be conclusive evidence of the facts therein
stated and of the several items and charges in the insurance rate then applicable to the Demised Premises.

 

7.02 Tenant’s
Insurance. Tenant shall maintain at all times during the Term or a renewal thereof:

 

		(a)	general liability providing coverage of the latest version of ISO form CG0001 or its equivalent, covering
Tenant’s indemnity obligations under this Lease, subject to the terms and conditions of the policy, against claims for bodily injury
and property damage, with completed operation endorsement, for any occurrence in or about the Building, including any sidewalk contiguous
to or abutting the Demised Premises, under which Landlord and its agent and any Superior Mortgagee whose name and address have been furnished
to Tenant shall be named as additional insured, with minimum limits of liability under such policy, including products liability and completed
operations, shall be a combined single limit with respect to each occurrence in an amount of not less than Five Million ($5,000,000.00),
per occurrence and aggregate, it being agreed and understood that such limit of coverage may be provided by Tenant’s commercial
general liability policy in conjunction with an umbrella liability or excess liability policy;
	 	 	 

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		(b)	insurance against loss or damage by fire and such other risks and hazards (including, burglary, theft
and breakage of glass within the premises) as are insurable under a Special Cause of Loss form or its equivalent, to Tenant’s property
and Alterations, for the full replacement cost value thereof (including an “agreed amount” endorsement);

		(c)	business Interruption covering base Rent and Additional Rent for a period of at least one (1) year;

		(d)	worker’s compensation insurance and disability benefits insurance in statutory limits;

		(e)	when Alterations are in process, the insurance specified in Section 4.02(f).

 

The limits of such insurance
shall not limit the liability of Tenant. Tenant shall deliver to Landlord and any additional insureds, at least 10 days prior to the Commencement
Date, such fully paid-for policies or certificates of insurance, in form reasonably satisfactory to Landlord issued by the insurance company
or its authorized agent. Tenant shall procure and pay for renewals of such insurance from time to time before the expiration thereof,
and Tenant shall deliver to Landlord and any additional insureds such renewal policy or a certificate thereof at least 30 days before
the expiration of any existing policy. All such policies shall be issued by companies of recognized responsibility licensed to do business
in New York State and rated by Best’s Insurance Reports or any successor publication of comparable standing as A/XII or better or the
then equivalent of such rating, and all such policies shall contain a provision whereby the same cannot be canceled, allowed to lapse
or modified unless Landlord and any additional insureds are given at least 30 days prior written notice of such cancellation, lapse or
modification. Tenant shall cooperate with Landlord in connection with the collection of any insurance moneys that may be due in the event
of loss and Tenant shall execute and deliver to Landlord such proofs of loss and other instruments which may be required to recover any
such insurance moneys. Landlord may from time to time require that the amount of the insurance to be maintained by Tenant under this Section
7.02 be increased, so that the amount thereof adequately protects Landlord’s interest.

 

7.03 Subrogation
Waiver. Landlord and Tenant shall each include in each of its insurance policies (insuring the Demised Premises in case of Landlord,
and insuring Tenant’s Property, Fixtures and Improvements and Betterments in the case of Tenant, against loss, damage or destruction by
fire or other casualty) a waiver of the insurer’s right of subrogation against the other party during the Term or a renewal thereof or,
if such waiver should be unobtainable or unenforceable:

 

		(a)	an express agreement that such policy shall not be invalidated if the assured waives the right of recovery
against any party responsible for a casualty covered by the policy before the casualty; or

		(b)	any other form of permission for the release of the other party.

 

Each party hereby releases
the other party with respect to any claim (including a claim for negligence) which it might otherwise have against the other party for
loss, damage or destruction with respect to its property occurring during the Term or a renewal thereof to the extent to which it is insured
under a policy or policies containing a waiver of subrogation or permission to release liability. Nothing contained in this Section
7.03 shall be deemed to relieve either party of any duty imposed elsewhere in this lease to repair, restore or rebuild or to nullify
any abatement of rents provided for elsewhere in this lease.

 

7.04 Condemnation.

 

(a)  If
there shall be a total taking of the Demised Premises in condemnation proceedings or by any right of eminent domain, this lease and the
term and estate hereby granted shall terminate as of the date of taking of possession by the condemning authority and all Rent shall be
prorated and paid as of such termination date. If there shall be a taking of any material (in Landlord’s reasonable judgment) portion
of the Land or the Demised Premises, then Landlord may terminate this lease and the term and estate granted hereby by giving notice to
Tenant within 60 days after the date of taking of possession by the condemning authority. If there shall be a taking of the Demised Premises
of such scope (but in no event less than 20% thereof) that the untaken part of the Demised Premises would in Tenant’s reasonable judgment
be uneconomic to operate, then Tenant may terminate this lease and the term and estate granted hereby by giving notice to Landlord within
60 days after the date of taking of possession by the condemning authority. If either Landlord or Tenant shall give a termination notice
as aforesaid, then this lease and the term and estate granted hereby shall terminate as of the date of such notice and all Rent shall
be prorated and paid as of such termination date. In the event of a taking of the Demised Premises which does not result in the termination
of this lease:

 

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		(i)	the term and estate hereby granted with respect to the taken part of the Demised Premises shall terminate
as of the date of taking of possession by the condemning authority and all Rent shall be appropriately abated for the period from such
date to the Expiration Date; and

		(ii)	Landlord shall with reasonable diligence restore the remaining portion of the Demised Premises (exclusive
of Tenant’s Property) as nearly as practicable to its condition prior to such taking.

 

(b) In
the event of any taking of all or a part of the Demised Premises, Landlord shall be entitled to receive the entire award in the condemnation
proceeding, including, without limitation, any award made for the value of the estate vested by this lease in Tenant or any value attributable
to the unexpired portion of the Term or a renewal thereof, and Tenant hereby assigns to Landlord any and all right, title and interest
of Tenant now or hereafter arising in or to any such award or any part thereof, and Tenant shall be entitled to receive no part of such
award; provided, that nothing shall preclude Tenant from intervening in any such condemnation proceeding to claim or receive from
the condemning authority any compensation to which Tenant may otherwise lawfully be entitled in such case in respect of Tenant’s Property
or moving expenses, provided the same do not include any value of the estate vested by this lease in Tenant or of the unexpired portion
of the Term or a renewal thereof and do not reduce the amount available to Landlord or delay the payment thereof.

 

(c) If
all or any part of the Demised Premises shall be taken for a limited period, Tenant shall be entitled, except as hereinafter set forth,
to that portion of the award for such taking which represents compensation for the use and occupancy of the Demised Premises, for the
taking of Tenant’s Property and for moving expenses, and Landlord shall be entitled to that portion which represents reimbursement for
the cost of restoration of the Demised Premises. This lease shall remain unaffected by such taking and Tenant shall continue responsible
for all of its obligations under this lease to the extent such obligations are not affected by such taking and shall continue to pay in
full all Rent when due. If the period of temporary use or occupancy shall extend beyond the Expiration Date, that part of the award which
represents compensation for the use and occupancy of the Demised Premises shall be apportioned between Landlord and Tenant as of the Expiration
Date. Any award for temporary use and occupancy for a period beyond the date to which the Rent has been paid shall be paid to, held and
applied by Landlord as a trust fund for payment of the Rent thereafter becoming due.

 

(d) In
the event of any taking which does not result in termination of this lease:

 

		(i)	Landlord, whether or not any award shall be sufficient therefor, shall proceed with reasonable diligence
to repair the remaining parts of the Demised Premises (other than those parts of the Demised Premises which constitute Tenant’s Property,
Fixtures and Improvements and Betterments) to substantially their former condition to the extent that the same may be feasible (subject
to reasonable changes which Landlord deems desirable) and so as to constitute a complete and rentable building; and

		(ii)	Tenant, whether or not any award shall be sufficient therefor, shall proceed with reasonable diligence
to repair the remaining parts of the Demised Premises which constitute Tenant’s Property, Fixtures and Improvements and Betterments, to
substantially their former condition to the extent that the same may be feasible, subject to reasonable changes which shall be deemed
Alterations.

 

7.05 Casualty.

 

(a)  If
the Demised Premises shall be partially or totally damaged or destroyed by fire or other casualty (each, a “Casualty”),
then Tenant, at Tenant’s sole cost and expense, shall promptly repair and restore the Demised Premises, including Landlords’ Work, Tenant’s
Improvements and Betterments, Tenant’s Property and Fixtures with or without the collection of the insurance proceeds attributable to
such Casualty.

 

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(b) If
all or part of the Demised Premises shall be rendered untenantable by reason of a Casualty, the Fixed Rent and the Additional Rent under
Sections 2.02 and 2.03 shall be abated in the proportion that the untenantable area of the Demised Premises bears to the
total area of the Demised Premises, for the period from the date of the Casualty to the earlier of:

 

		(i)	the date the Demised Premises is made tenantable (provided, that if the Demised Premises would
have been tenantable at an earlier date but for Tenant having failed diligently to prosecute repairs or restoration, then the Demised
Premises shall be deemed to have been made tenantable on such earlier date and the abatement shall cease); or

		(ii)	the date Tenant or any subtenant reoccupies a portion of the Demised Premises for the ordinary conduct
of business (in which case the Fixed Rent and the Additional Rent allocable to such reoccupied portion shall be payable by Tenant from
the date of such occupancy).

 

Landlord’s determination of
the date the Demised Premises is tenantable shall be controlling unless Tenant disputes same by written notice to Landlord within 10 days
after such determination by Landlord and pending resolution of such dispute, Tenant shall pay Rent in accordance with Landlord’s determination.
Notwithstanding the foregoing, if by reason of any act or omission by Tenant, any subtenant or any of their respective partners, directors,
officers, servants, employees, agents or contractors, Landlord, any Superior Lessor or any Superior Mortgagee shall be unable to collect
all of the insurance proceeds (including, without limitation, rent insurance proceeds) applicable to the Casualty, then, without prejudice
to any other remedies which may be available to Landlord, there shall be no abatement of Rent. Nothing contained in this Section 7.05
shall relieve Tenant from any liability that may exist as a result of any Casualty.

 

(c) Intentionally
Omitted.

 

(d) Landlord
shall not carry any insurance on Tenant’s Property, Tenant’s Improvements and Betterments or Fixtures and shall not be obligated to repair
or replace the Demised Premises, Tenant’s Property, Tenant’s Improvements and Betterments or Fixtures. Tenant shall look solely to its
insurance for recovery of any damage to or loss of Tenant’s Property, Tenant’s Improvements and Betterments or Fixtures. Tenant shall
notify Landlord promptly of any Casualty in or affecting the Demised Premises.

 

(e) This
Section 7.05 shall be deemed an express agreement governing any damage or destruction of the Demised Premises by fire or other
casualty, and Real Property Law §227 providing for such a contingency in the absence of an express agreement, and any other law of
like import now or hereafter in force, shall have no application.

 

7.06 Risk
of Loss. Tenant and all those claiming by, through or under Tenant shall store their property in and shall occupy and use the
Demised Premises and any improvements therein and appurtenances thereto solely at their risk and Tenant and all those claiming by, through
or under Tenant hereby release Landlord and any fee owner or ground or underlying lessors of the Demised Premises, to the full extent
permitted by law, from all claims, of every kind, including loss of life, bodily or personal injury, damage to merchandise, furniture,
fixtures, equipment or other property, or damage to business or for business interruption, arising directly or indirectly out of or from
or on account of such occupancy and use or resulting from any present or future condition or state of repair of the Demised Premises.

 

7.07 Indemnity.
Tenant shall not do or permit any act or thing to be done upon the Demised Premises which may subject Landlord to any liability or
responsibility for injury, damages to persons or property or to any liability by reason of any violation of law or of any legal requirement
of public authority, but shall exercise such control over the Demised Premises as to fully protect Landlord against any such liability.
Tenant agrees to indemnify, defend and save harmless Landlord from and against (1) all claims of whatever nature against Landlord arising
from any act, omission or negligence of Tenant, its subtenants, contractors, licensees, agents, servants, employees, invitees or visitors,
including any claims arising from any act, omission or negligence of Landlord or Landlord and Tenant, (2) all claims against Landlord
arising from any accident, injury or damage whatsoever caused to any person or to the property of any person and occurring during the
Term or a renewal thereof in or about the Demised Premises, (3) all claims against Landlord arising from any accident, injury or damage
to any person, entity or property, occurring outside of the Demised Premises but anywhere within or about the Real Property, where such
accident, injury or damage resulted or is claimed to have resulted from an act or omission of Tenant or Tenant’s subtenants, agents,
employees, invitees or visitors, including any claims arising from any act, omission or negligence of Landlord or Landlord and Tenant,
(4) any breach, violation or nonperformance of any covenant, condition or agreement in this Lease set forth and contained on the part
of Tenant to be fulfilled, kept, observed and performed and (5) any claim, loss or liability arising or claimed to arise from Tenant,
or any of Tenant’s subtenants, contractors, licensees, agents, servants, employees, invitees or visitors causing or permitting any
Hazardous Substance to be brought upon, kept or used in or about the Demised Premises or the Real Property or any seepage, escape or release
of such Hazardous Substances (including, without limitation, the costs and expenses of any remediation required as a result thereof).
As used herein, the term “Hazardous Substances” shall mean, collectively, (a) asbestos and polychlorinated biphenyls
and (b) hazardous or toxic materials, wastes and substances which are defined, determined and identified as such pursuant to any law.
As used herein and in all other provisions in this Lease containing indemnities made for the benefit of Landlord, the term “Landlord”
shall mean Landlord and Landlord’s managing agent and their respective parent companies and/or corporations, their respective controlled,
associated, affiliated and subsidiary companies and/or corporations and their respective members, officers, partners, agents, consultants,
servants, employees, sub-lessees and assigns. This indemnity and hold harmless agreement shall include indemnity from and against any
and all liability, fines, suits, demands, costs and expenses of any kind or nature incurred in or in connection with any such claim or
proceeding brought thereon, and the defense thereof. The indemnity contained in this Section 7.07 shall survive the expiration
or earlier termination of this lease.

 

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ARTICLE 8

 

Miscellaneous Provisions

 

8.01 Notice.
All notices, demands, consents, approvals, advices, waivers or other communications which may or are required to be given by either party
to the other under this lease (each, “Notice”) shall be in writing and shall be delivered by:

 

		(a)	personal delivery;

		(b)	the United States Postal Service, certified or registered, postage prepaid, return receipt requested;
or

		(c)	a nationally recognized overnight courier,

 

in each case addressed to
the party to be notified at the address for such party specified in the first paragraph of this lease.

 

Notices from Landlord may
be given by Landlord’s managing agent, if any, or attorney. Each Notice shall be deemed to have been given on the date such Notice is
actually received as evidenced by a written receipt therefor, and in the event of failure to deliver by reason of changed address of which
no Notice was given or refusal to accept delivery, as of the date of such failure.

 

8.02 Intentionally
Omitted.

 

8.03 Severability.
If any term or provision of this lease, or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable,
the remainder of this lease, or the application of such provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected, and each provision of this lease shall be valid and shall be enforceable to the extent permitted
by law.

 

8.04 Certain
Definitions.

 

(a)  “Landlord”
means only the owner, at the time in question, of the Demised Premises or of a lease of the Demised Premises, so that in the event of
any transfer or transfers of title to the Demised Premises or of Landlord’s interest in a lease of the Demised Premises, the transferor
shall be and hereby is relieved and freed of all obligations of Landlord under this lease accruing after such transfer, and it shall be
deemed, without further agreement, that such transferee has assumed all obligations of Landlord during the period it is the holder of
Landlord’s interest under this lease.

 

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(b) “Landlord
shall have no liability to Tenant” or words of similar import mean that Tenant is not entitled to terminate this lease, or to
claim actual or constructive eviction, partial, or total, or to receive any abatement or diminution of Rent, or to be relieved in any
manner or any of its other obligations under this lease, or to be compensated for loss or injury suffered or to enforce any other right
or kind of liability whatsoever against Landlord under or with respect to this lease or with respect to Tenant’s use or occupancy of the
Demised Premises.

 

8.05 Quiet
Enjoyment. Tenant shall and may peaceably and quietly have, hold and enjoy the Demised Premises, subject to the other terms of
this lease and to the Superior Leases and Superior Mortgages, provided that Tenant pays the Fixed Rent and Additional Rent to be paid
by Tenant and performs all of Tenant’s covenants and agreements contained in this lease.

 

8.06 Limitation
of Landlord’s Personal Liability. Tenant shall look solely to Landlord’s interest in the Demised Premises, for the recovery of
any judgment against Landlord, and no other property or assets of Landlord or Landlord’s partners, members, officers, directors, shareholders
or principals, direct or indirect, disclosed or undisclosed, shall be subject to levy, execution or other enforcement procedure for the
satisfaction of Tenant’s remedies under or with respect to this lease.

 

8.07 Counterclaims.
If Landlord commences any summary proceeding or action for nonpayment of Rent or to recover possession of the Demised Premises, Tenant
shall not interpose any counterclaim of any nature or description in any such proceeding or action, unless Tenant’s failure to interpose
such counterclaim in such proceeding or action would result in the waiver of Tenant’s right to bring such claim in a separate proceeding
under applicable law.

 

8.08 Survival.
All obligations and liabilities of Landlord or Tenant to the other which accrued before the expiration or other termination of this lease
and all such obligations and liabilities which by their nature or under the circumstances can only be, or by the provisions of this lease
may be, performed after such expiration or other termination, shall survive the expiration or other termination of this lease. Without
limiting the generality of the foregoing, the rights and obligations of the parties with respect to any indemnity under this lease, and
with respect to Real Estate Tax Escalations and any other amounts payable under this lease, shall survive the expiration or other termination
of this lease.

 

8.09 Certain
Remedies. If Tenant requests Landlord’s consent and Landlord fails or refuses to give such consent, Tenant shall not be entitled
to any damages for any withholding by Landlord of its consent, it being intended that Tenant’s sole remedy shall be an action for specific
performance or injunction, and that such remedy shall be available only in those cases where this lease provides that Landlord shall not
unreasonably withhold its consent. No dispute relating to this lease or the relationship of Landlord and Tenant under this lease shall
be resolved by arbitration unless this lease expressly provides for such dispute to be resolved by arbitration.

 

8.10 No
Offer. The submission by Landlord of this lease in draft form shall be solely for Tenant’s consideration and not for acceptance
and execution. Such submission shall have no binding force or effect and shall confer no rights nor impose any obligations, including
brokerage obligations, on either party unless and until both Landlord and Tenant shall have executed a lease and duplicate originals thereof
shall have been delivered to the respective parties.

 

8.11 Captions;
Construction. The table of contents, captions, headings and titles in this lease are solely for convenience of reference and shall
not affect its interpretation. This lease shall be construed without regard to any presumption or other rule requiring construction against
the party causing this lease to be drafted. Each covenant, agreement, obligation or other provision of this lease on Tenant’s part to
be performed, shall be deemed and construed as a separate and independent covenant of Tenant, not dependent on any other provision of
this lease.

 

8.12 Amendments.
This lease may not be altered, changed or amended, except by an instrument in writing signed by the party to be charged.

 

    21

     

    

 

8.13 Broker.
Each party represents to the other that such party has dealt with no broker other than None, (“Broker”) in connection
with this lease, and each party shall indemnify and hold the other harmless from and against all loss, cost, liability and expense (including,
without limitation, reasonable attorneys’ fees and disbursements) arising out of any claim for a commission or other compensation by any
broker (other than Broker) who has dealt with the indemnifying party in connection with this lease. Landlord and Tenant shall enter into
a separate agreement with Broker which provides that, if this lease is executed and delivered by both Landlord and Tenant, Landlord and
Tenant shall equally pay to Broker a commission to be agreed upon between Landlord, Tenant and Broker, subject to, and in accordance with,
the terms and conditions of such agreement.

 

8.14 Merger.
Tenant acknowledges that Landlord has not made and is not making, and Tenant, in executing and delivering this lease, is not relying upon,
any warranties, representations, promises or statements, except to the extent that the same are expressly set forth in this lease. This
lease embodies the entire understanding between the parties with respect to the subject matter hereof, and all prior agreements, understanding
and statements, oral or written, with respect thereto are merged in this lease.

 

Tenant has made investigation
into the Demised Premises and acknowledges that the Demised Premises are fit for their intended use under this lease.

 

Landlord has not made and
does not make any representations that Demised Premises are fit for their intended use under this lease. Landlord has not made and does
not make any representations as to the rents, leases, expenses, operation or any other matter or thing affecting or related to the Demised
Premises, except as herein specifically set forth, and Tenant hereby expressly acknowledges that no such representations have been made.

 

8.15 Successors.
This lease shall be binding upon and inure to the benefit of Landlord, its successors and assigns, and shall be binding upon and inure
to the benefit of Tenant, its successors, and to the extent that an assignment may be approved by Landlord, Tenant’s assigns.

 

8.16 Applicable
Law. This lease shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect
to any principles of conflicts of laws.

 

8.17 No
Development Rights. Tenant acknowledges that it has no rights to any development rights, air rights or comparable rights appurtenant
to the Demised Premises, and consents, without further consideration, to any utilization of such rights by Landlord. Tenant shall promptly
execute and deliver any instruments, which may be requested by Landlord, including instruments merging zoning lots, evidencing such acknowledgment
and consent. The provisions of this Section 8.17 shall be construed as an express waiver by Tenant of any interest Tenant may have
as a party in interest in the Demised Premises.

 

[Signature page follows]

 

    22

     

    

 

IN WITNESS WHEREOF,
Landlord and Tenant have executed this lease as of the day and year first written above.

 

		1870 Bath Ave. LLC
	 	 
	 	/s/ Elie Fouerti
	 	By:	 Elie Fouerti, Managing Member
	 	 
	 	1 Stop Electronics Center, Inc.
	 	 
	 	/s/ Albert Fouerti
	 	By:	 Albert Fouerti, President

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