EX-10.4



 Exhibit 10.4 
 Execution Version 
  

 
 CANADIAN PLEDGE AND SECURITY
AGREEMENT 
 Dated as of November 30, 2012 
 from 
 ATD ACQUISITION CO. V INC. 

TRIWEST TRADING (CANADA) LTD. 
 to 
 BANK OF AMERICA, N.A., 

as Administrative Agent and Collateral Agent 
  

 







 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
	
	ARTICLE I. DEFINITIONS	  
				
		 	Section 1.1.	  	Terms Defined in Credit Agreement	  	 	- 1 -	  
				
		 	Section 1.2.	  	Terms Defined in the PPSA	  	 	- 2 -	  
				
		 	Section 1.3.	  	Terms Generally	  	 	- 2 -	  
				
		 	Section 1.4.	  	Definitions of Certain Terms Used Herein	  	 	- 2 -	  
	
	ARTICLE II. GRANT OF SECURITY INTEREST	  
	
	ARTICLE III. REPRESENTATIONS AND WARRANTIES	  
				
		 	Section 3.1.	  	Title, Perfection and Priority	  	 	- 7 -	  
				
		 	Section 3.2.	  	Type and Jurisdiction of Organization, Organizational and Identification Numbers	  	 	- 8 -	  
				
		 	Section 3.3.	  	Principal Location	  	 	- 8 -	  
				
		 	Section 3.4.	  	Collateral Locations	  	 	- 8 -	  
				
		 	Section 3.5.	  	Bailees, Warehousemen, Etc	  	 	- 8 -	  
				
		 	Section 3.6.	  	Exact Names	  	 	- 8 -	  
				
		 	Section 3.7.	  	Chattel Paper	  	 	- 9 -	  
				
		 	Section 3.8.	  	Accounts and Chattel Paper	  	 	- 9 -	  
				
		 	Section 3.9.	  	Inventory	  	 	- 9 -	  
				
		 	Section 3.10.	  	Intellectual Property	  	 	- 10 -	  
				
		 	Section 3.11.	  	No Financing Statements or Security Agreements	  	 	- 10 -	  
				
		 	Section 3.12.	  	Pledged Collateral	  	 	- 10 -	  
				
		 	Section 3.13.	  	Perfection Certificate	  	 	- 10 -	  
	
	ARTICLE IV. COVENANTS	  
				
		 	Section 4.1.	  	General	  	 	- 11 -	  


  
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		 	Section 4.2.	  	Delivery of Pledged Collateral	  	 	- 12 -	  
				
		 	Section 4.3.	  	Uncertificated Securities	  	 	- 12 -	  
				
		 	Section 4.4.	  	Securities Entitlements	  	 	- 12 -	  
				
		 	Section 4.5.	  	Partnership of Limited Liability Company	  	 	- 12 -	  
				
		 	Section 4.6.	  	Control	  	 	- 12 -	  
				
		 	Section 4.7.	  	Pledged Collateral	  	 	- 13 -	  
				
		 	Section 4.8.	  	Intellectual Property	  	 	- 13 -	  
				
		 	Section 4.9.	  	Insurance	  	 	- 14 -	  
				
		 	Section 4.10.	  	Collateral Access Agreements	  	 	- 14 -	  
	
	ARTICLE V. REMEDIES	  
				
		 	Section 5.1.	  	Remedies	  	 	- 15 -	  
				
		 	Section 5.2.	  	Grantors’ Obligations Upon Default	  	 	- 16 -	  
				
		 	Section 5.3.	  	Grant of Intellectual Property License	  	 	- 16 -	  
				
		 	Section 5.4.	  	Concerning a Receiver	  	 	- 17 -	  
	
	ARTICLE VI. ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY	  
				
		 	Section 6.1.	  	Account Verification	  	 	- 18 -	  
				
		 	Section 6.2.	  	Authorization for Secured Party to Take Certain Action	  	 	- 18 -	  
				
		 	Section 6.3.	  	PROXY	  	 	- 19 -	  
				
		 	Section 6.4.	  	NATURE OF APPOINTMENT; LIMITATION OF DUTY	  	 	- 19 -	  
	
	ARTICLE VII. GENERAL PROVISIONS	  
				
		 	Section 7.1.	  	Waivers	  	 	- 19 -	  
				
		 	Section 7.2.	  	Limitation on Agent’s and Secured Party’s Duty with Respect to the Collateral	  	 	- 20 -	  
				
		 	Section 7.3.	  	Compromises and Collection of Collateral	  	 	- 21 -	  
				
		 	Section 7.4.	  	Secured Party Performance of Debtor Obligations	  	 	- 21 -	  
				
		 	Section 7.5.	  	No Waiver; Amendments; Cumulative Remedies	  	 	- 21 -	  


  
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		 	Section 7.6.	  	Limitation by Law; Severability of Provisions	  	 	- 21 -	  
				
		 	Section 7.7.	  	Reinstatement	  	 	- 21 -	  
				
		 	Section 7.8.	  	Benefit of Agreement	  	 	- 22 -	  
				
		 	Section 7.9.	  	Survival of Representations	  	 	- 22 -	  
				
		 	Section 7.10.	  	Taxes and Expenses	  	 	- 22 -	  
				
		 	Section 7.11.	  	Additional Subsidiaries	  	 	- 22 -	  
				
		 	Section 7.12.	  	Headings	  	 	- 22 -	  
				
		 	Section 7.13.	  	Termination or Release	  	 	- 22 -	  
				
		 	Section 7.14.	  	Entire Agreement	  	 	- 23 -	  
				
		 	Section 7.15.	  	CHOICE OF LAW	  	 	- 23 -	  
				
		 	Section 7.16.	  	Consent to Jurisdiction	  	 	- 23 -	  
				
		 	Section 7.17.	  	WAIVER OF JURY TRIAL	  	 	- 24 -	  
				
		 	Section 7.18.	  	Indemnity	  	 	- 24 -	  
				
		 	Section 7.19.	  	Counterparts	  	 	- 24 -	  
				
		 	Section 7.20.	  	Gender and Number	  	 	- 24 -	  
				
		 	Section 7.21.	  	Judgment Currency	  	 	- 24 -	  
				
		 	Section 7.22.	  	Mortgages	  	 	- 24 -	  
	
	ARTICLE VIII. NOTICES	  
				
		 	Section 8.1.	  	Sending Notices	  	 	- 24 -	  
				
		 	Section 8.2.	  	Change in Address for Notices	  	 	- 25 -	  
	
	ARTICLE IX. THE AGENT	  


  
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 EXHIBITS: 
  

			
	Schedule 1	  	Excluded Accounts
	Exhibit A	  	Location, Chief Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number
	Exhibit B	  	Bailees, Warehousemen and Third Party Possessors of Collateral
	Exhibit C	  	[Intentionally Deleted]
	Exhibit D	  	Intellectual Property
	Exhibit E	  	[Intentionally Deleted]
	Exhibit F	  	Pledged Collateral
	Exhibit G	  	PPSA Filing Offices
	Exhibit H	  	Form of Joinder
	Exhibit I	  	Form of Collateral Access Agreement


  
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 CANADIAN PLEDGE AND SECURITY AGREEMENT 

This CANADIAN PLEDGE AND SECURITY AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, this
“Security Agreement”) is entered into as of November 30, 2012, by and among ATD ACQUISITION CO. V INC., a corporation incorporated under the laws of Canada (together with its successors and permitted assigns, the
“Initial Canadian Borrower”); TRIWEST TRADING (CANADA) LTD., a corporation incorporated under the laws of Canada (together with its successors and permitted assigns, “Triwest”); the Subsidiary Parties from
time to time party hereto (collectively with the Initial Canadian Borrower and Triwest, the “Grantors” and each a “Grantor”); and BANK OF AMERICA, N.A., a national banking association, in its capacity as
administrative agent for the lenders party to the Credit Agreement referred to below and in its capacity as collateral agent for the Secured Parties (in such capacities, together with its successors in such capacities, the “Agent”).

 PRELIMINARY STATEMENTS 
 WHEREAS, the Grantors are subsidiaries of AMERICAN TIRE DISTRIBUTORS, INC., a Delaware corporation (the “Company”), and the Company, certain of the other Loan Parties, certain of
the Lenders, Bank of America, N.A., as administrative agent, and certain other Persons thereto are parties to that certain Fifth Amended and Restated Credit Agreement, dated as of May 28, 2010 (as amended, restated, modified or supplemented
prior to the date hereto, the “Existing Credit Agreement”); 
 WHEREAS, the Grantors, the Company, the other
Loan Parties, the Agent, the Lenders and certain other parties are entering into that certain Sixth Amended and Restated Credit Agreement, dated as of the date hereof (as amended, restated, modified or supplemented after the date hereof, the
“Credit Agreement”), which amends and restates in its entirety the Existing Credit Agreement; 
 WHEREAS,
pursuant to the Canadian Transaction, it is contemplated that the Initial Canadian Borrower shall amalgamate, after the date hereof, with Triwest, with the continuing entity bearing the name of Triwest and becoming a Canadian Borrower under the
Credit Agreement; and 
 WHEREAS, the Grantors are entering into this Security Agreement for the purpose of inducing the Lenders
to amend and restate, and to extend credit to the Borrowers under, the Credit Agreement and to secure each Grantor’s Secured Obligations, including in the case of each Grantor that is a Loan Guarantor, its obligations under the Loan Guaranty.

 ACCORDINGLY, the parties hereto hereby agree as follows: 

ARTICLE I. 

DEFINITIONS 
 Section 1.1. Terms Defined in Credit Agreement . All capitalized terms used herein (including terms used in the preamble and preliminary statements) and not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement. 







 Section 1.2. Terms Defined in the PPSA. Terms defined in the PPSA that are not
otherwise defined in this Security Agreement or the Credit Agreement are used herein as defined in the PPSA. 
 Section 1.3.
Terms Generally. The rules of construction and other interpretive provisions specified in Section 1.03 of the Credit Agreement shall apply to this Security Agreement, including terms defined in the preamble and preliminary
statements hereto. 
 Section 1.4. Definitions of Certain Terms Used Herein. As used in this Security Agreement, in
addition to the terms defined in the preamble and preliminary statements above, the following terms shall have the following meanings: 
 “Account” shall have the meaning set forth in the PPSA. 

“After-acquired Debt” shall have the meaning set forth in the definition of “Pledged Collateral”. 

“After-acquired Shares” shall have the meaning set forth in the definition of “Pledged Collateral”.

 “Am-Pac” means Am-Pac Tire Dist. Inc., a California corporation. 

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

 “Canadian Transaction” means, collectively, the acquisition by the Initial Canadian Borrower of all of the
issued and outstanding shares of the share capital of Triwest and the subsequent amalgamation of the Initial Canadian Borrower with Triwest, with the continuing entity bearing the name of Triwest and becoming a Canadian Borrower under the Credit
Agreement. 
 “Chattel Paper” shall have the meaning set forth in the PPSA. 

“Collateral” shall have the meaning set forth in Article II. 

“Collateral Access Agreement” means a landlord waiver or other agreement, substantially in the form attached hereto as
Exhibit I or such other form as shall be reasonably satisfactory to the Agent, entered into between the Agent and any third party (including any bailee, consignee, customs broker, or other similar Person) in possession of any Collateral
or any landlord of any premises where any Collateral is located. 
 “Collateral Report” means any certificate
(including any Borrowing Base Certificate), report or other document delivered by any Grantor to the Agent with respect to the Collateral pursuant to any Loan Document. 
 “Control” shall mean “control” as such term is understood under the PPSA, the STA or any other similar law of any other jurisdiction. 

“Copyrights” means, with respect to any Grantor, all of such Grantor’s right, title, and interest in and to the
following: (a) all copyrights, rights and interests in copyrights, works protectable by copyright, copyright registrations, and copyright applications; (b) all renewals of any of the foregoing; (c) all income, royalties, damages, and
payments now or hereafter due and/or payable under any of the 

  
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foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing; (d) the right to sue for past, present, and future infringements of
any of the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world. 
 “Deposit
Account” shall mean any demand, time, savings, checking, passbook, deposit, collection, lock-box, or other similar account maintained with any financial institution but excludes investment property and any account evidenced by an
instrument. 
 “Document” shall have the meaning ascribed to the term “document of title” in the
PPSA. 
 “Equipment” shall have the meaning set forth in the PPSA. 

“Excluded Accounts” means all accounts set forth on Schedule 1 hereto. 

“Excluded Assets” means 
 (a) (i) any interest in leased real property of any Grantor and (ii) any interest in fee-owned real property of a Grantor if the greater of its cost and book value is less than $2,500,000;

 (b) the last day of the term of any lease or sublease or any agreement for a lease or sublease, now held or hereafter
acquired by any Grantor in respect of real property, but the applicable Grantor shall stand possessed of any such last day upon trust to assign and dispose of it as the Agent may direct; 

(c) at any date, any Equipment or other assets or property of a Grantor which is subject to, or secured by, a Capital Lease Obligation or
other debt obligation if and to the extent that (i) such Capital Lease Obligation or debt obligation was incurred pursuant to Section 6.01(e) or (f) of the Credit Agreement or is owed to a Person who is not a Grantor or
a Restricted Subsidiary and the agreements or documents granting or governing such Capital Lease Obligation or debt obligation prohibit, or require any consent or establish any other conditions for, or would or could be terminated, abandoned,
invalidated, rendered unenforceable, or would be breached or defaulted under such agreement or document, because of an assignment thereof, or a grant of a security interest therein, by a Grantor and (ii) such restriction described in
clause (i) above relates only to the asset or assets acquired by such Grantor and attachments and accessions thereto, improvements thereof or substitutions therefor; provided that all proceeds paid or payable to any Grantor from any
sale, transfer or assignment or other voluntary or involuntary disposition of such assets and all rights to receive such proceeds shall be included in the Collateral to the extent not otherwise required to be paid to the holder of any Capital Lease
Obligations or debt obligations secured by such assets; 
 (d) pledges and security interests prohibited by, or requiring any
consent of any Governmental Authority pursuant to, applicable law, rule or regulation; 
 (e) Excluded Equity Interests and
Excluded Accounts; 
 (f) any rights or interest of a Grantor in any property or assets or under any agreement, contract,
License, lease, Instrument, document or other General Intangible or, in the case of any Investment Property (other than with respect to Equity Interests which are not Excluded Equity Interests), under any applicable equity holder or similar
agreement (referred to solely for purposes of this clause (f) as a “Contract”) to the extent such Contract by the terms of a restriction in favor of a Person who is not a Grantor, or any requirement of law, rule or regulation,
prohibits, or requires any consent or 

  
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establishes any other condition for, or could or would be terminated, abandoned, invalidated, rendered unenforceable, or would be breached or defaulted under, because of an assignment thereof or
a grant of a security interest therein by a Grantor; provided that (i) rights to payment under any such Contract otherwise constituting an Excluded Asset shall be included in the Collateral to the extent permitted thereby or by
the PPSA and (ii) all proceeds paid or payable to any Grantor from any sale, transfer or assignment of such Contract and all rights to receive such proceeds shall be included in the Collateral; 

(g) any property as to which the Agent and a Canadian Borrower reasonably agree in writing that the cost or other consequences (including
material adverse tax consequences as reasonably determined by such Canadian Borrower) of obtaining a security interest or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby;

 (h) (x) any Intellectual Property, including any United States intent-to-use trademark applications, in relation to which any
applicable law or regulation, or any agreement with a domain name registrar or any other person entered into by a Grantor in the ordinary course of business and existing on the date hereof, prohibits the creation of a security interest therein, or
constitutes a breach or default under or results in the termination of or gives rise to any right of acceleration, modification or cancellation, or would otherwise invalidate such Grantor’s right, title or interest therein and (y) any of
the Grantors’ rights under the trademarks and service marks known as “ATD ONLINE,” “AUTOEDGE,” “HEAFNET,” “TIREBUYER.COM,” “TIRE PROS,” “XPRESS PERFORMANCE” and “WHEEL
WIZARD”; 
 (i) consumer goods; and 
 (j) any proceeds and products arising from the sale, lease, assignment or disposition of any of the foregoing Excluded Assets unless such proceeds or products would otherwise constitute Collateral.

 “Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is specifically
referenced. 
 “General Intangible” shall have the meaning ascribed to the term “intangible” in the
PPSA. 
 “Goods” shall have the meaning set forth in the PPSA. 

“Grantors” shall have the meaning set forth in the introductory paragraph hereto. 

“Instrument” shall have the meaning set forth in the PPSA. 

“Intellectual Property” means, with respect to any Grantor, all intellectual and similar property of every kind and
nature now owned or hereafter acquired by such Grantor, including Patents, Copyrights, Trademarks and all related documentation and registrations and all additions, improvements or accessions to any of the foregoing. 

“Inventory” shall have the meaning set forth in the PPSA and shall include, without limitation, (a) all goods
intended for sale or lease or for display or demonstration, (b) all work in process, and (c) all 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 goods or services or otherwise used or consumed in the conduct of business. 
 “Investment Property” shall have the meaning set forth in the PPSA. 

  
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 “Licenses” means, with respect to any Grantor, all of such Grantor’s
right, title, and interest in and to (a) any and all written licensing agreements or similar arrangements in and to its owned (1) Patents, (2) Copyrights, or (3) Trademarks, (b) all income, royalties, damages, claims, and
payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future breaches thereof, and (c) all rights to sue for past, present, and future breaches thereof.

 “Patents” means, with respect to any Grantor, all of such Grantor’s right, title, and interest in and
to: (a) any and all patents and patent applications; (b) all inventions and improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals, extensions, and continuations-in-part thereof; (d) all
income, royalties, damages, claims, and payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof; (e) all rights to sue for past,
present, and future infringements thereof; and (f) all rights corresponding to any of the foregoing throughout the world. 

“Perfection Certificate” means the perfection certificate dated as of the date hereof, completed and supplemented with
the schedules and attachments contemplated thereby, and duly executed by a Responsible Officer of Triwest. 
 “Pledged
Collateral” means collectively, (a) all of the Equity Interests described on Exhibit F issued by the entities named therein and all other Equity Interests required to be pledged under Section 5.11 of the Credit
Agreement (the “After-acquired Shares”) and (b) the promissory notes, Chattel Paper and Instruments evidencing Indebtedness in excess of $2,500,000 owed to the Grantors (other than such promissory notes, Chattel Paper and
Instruments that are Excluded Assets) described on Exhibit F and issued by the entities named and all other Indebtedness owed to any Grantor hereafter and required to be pledged pursuant to Section 5.11 of the Credit Agreement
(the “After-acquired Debt”), in each case as such Exhibit may be amended pursuant to Section 5.11 of the Credit Agreement. 
 “PPSA” means the Personal Property Security Act (Ontario) and the regulations promulgated thereunder, as amended from time to time, provided if validity, perfection and
effect of perfection and non-perfection of the Agent’s security interest in or Lien on any Collateral is governed by the personal property security laws of any jurisdiction other than Ontario, PPSA shall mean those personal property security
laws (including the Civil Code of Quebec) in such other jurisdiction for the purposes of the provisions hereof relating to such validity, perfection, and effect of perfection and non-perfection and for the definitions related to such provisions, as
from time to time in effect. 
 “Receivables” means the Accounts, Chattel Paper, Documents, Investment
Property, Instruments and any other rights or claims to receive money that are General Intangibles or that are otherwise included as Collateral. 
 “Section” means a numbered section of this Security Agreement, unless another document is specifically referenced. 

“Secured Parties” means collectively (a) the Lenders, (b) the Agent, (c) each Issuing Bank, (d) each
counterparty to any Swap Agreement with a Loan Party the obligations under which constitute Secured Swap Obligations, (e) each Swingline Lender, (f) the beneficiaries of each indemnification obligation undertaken by any Loan Party under
any Loan Document, (g) each Person providing Banking Services which constitute Banking Services Obligations and (h) the successors and permitted assigns of each of the foregoing. 

“Security” shall have the meaning set forth in the STA. 

  
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 “STA” means the Securities Transfer Act, 2006 (Ontario) or, to the
extent applicable, similar legislation of any other jurisdiction, as amended from time to time. 
 “Stock
Rights” means all dividends, instruments or other distributions and any other right or property which any Grantor shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in
exchange for any Pledged Collateral, any right to receive an Equity Interest constituting Collateral and any right to receive earnings, in which such Grantor now has or hereafter acquires any right, issued by an issuer of such Equity Interest.

 “Subsidiary Parties” means each Canadian Subsidiary that becomes a party to this Security Agreement as a
Subsidiary Party (including as an additional Canadian Borrower) after the date hereof in accordance with Section 7.11 herein and Section 5.11 of the Credit Agreement. 

“Trademarks” means, with respect to any Grantor, all of such Grantor’s right, title, and interest in and to the
following: (a) all trademarks (including service marks), trade names, trade dress, and trade styles and the registrations and applications for registration thereof and the goodwill of the business symbolized by the foregoing; (b) all
Licenses of the foregoing, whether as licensee or licensor; (c) all renewals of the foregoing; (d) all income, royalties, damages, and payments now or hereafter due or payable with respect thereto, including, without limitation, damages,
claims, and payments for past and future infringements thereof; (e) all rights to sue for past, present, and future infringements of the foregoing, including the right to settle suits involving claims and demands for royalties owing; and
(f) all rights corresponding to any of the foregoing throughout the world. 
 ARTICLE II. 

GRANT OF SECURITY INTEREST 
 Each Grantor hereby pledges, assigns and grants to the Agent, on behalf of and for the benefit of the Secured Parties, and to secure the prompt and complete payment and performance of all of such
Grantor’s Secured Obligations, a security interest in all of its right, title and interest in, to and under all of the following personal property and other assets, whether now owned by or owing to, or hereafter acquired by or arising in favor
of, such Grantor (including under any trade name or derivations thereof), and regardless of where located (all of which are collectively referred to as the “Collateral”): 

(i) all Accounts; 
 (ii) all Chattel Paper; 
 (iii) all Intellectual Property;

 (iv) all Documents; 
 (v) all Equipment; 
 (vi) all fixtures; 

(vii) all General Intangibles; 
 (viii) all Goods; 

  
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 (ix) all Instruments; 

(x) all Inventory; 
 (xi) all Investment Property; 
 (xii) all Deposit Accounts;

 (xiii) all cash or other property deposited with the Agent or any Lender or any Affiliate of the Agent or any
Lender or which the Agent, for its benefit and for the benefit of the other Secured Parties, or any Lender or such Affiliate is entitled to retain or otherwise possess as collateral pursuant to the provisions of this Security Agreement or any of the
Loan Documents or any agreement relating to any letter of credit; 
 (xiv) all books, records, files,
correspondence, computer programs, tapes, disks and related data processing software which contain information identifying or pertaining to any of the foregoing or any Account Debtor or showing the amounts thereof or payments thereon or otherwise
necessary or helpful in the realization thereon or the collection thereof; and 
 (xv) any and all accessions to,
substitutions for and replacements, products and cash and non-cash proceeds of the foregoing (including any claims to any items referred to in this definition and any claims against third parties 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 cash, negotiable instruments and other instruments for the payment of money, Chattel Paper, security agreements
and other documents. 
 Notwithstanding the foregoing or anything herein to the contrary, in no event shall the
“Collateral” include, or the security interest attach to, any Excluded Asset. 
 ARTICLE III. 

REPRESENTATIONS AND WARRANTIES 
 The Grantors, jointly and severally, represent and warrant to the Agent, for the benefit of the Secured Parties, that: 
 Section 3.1. Title, Perfection and Priority. (a) Each Grantor has good and valid rights in, or the power to transfer, the Collateral which it has purported to grant a security interest
hereunder, free and clear of all Liens except for Liens permitted under Section 4.1(e), and has full power and authority to grant to the Agent the security interest in such Collateral pursuant hereto. This Security Agreement creates in
favor of the Agent for the benefit of the Secured Parties a valid security interest in the Collateral granted by each Grantor. No consent or approval of, registration or filing with, or any other action by any Governmental Authority is required for
the grant of the security interest pursuant to this Security Agreement, except (i) such as have been obtained or made and are in full force and effect and (ii) for filings necessary to perfect Liens created pursuant to the Loan Documents.

 (b) Subject to the limitations set forth in clause (c) of this Section 3.1, the security interests granted
pursuant to this Security Agreement (i) will constitute valid perfected security interests 

  
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in the Collateral in favor of the Agent, on behalf of and for the benefit of the Secured Parties, to secure the prompt and complete payment and performance of all of the Grantor’s Secured
Obligations, upon (A) in the case of Collateral in which a security interest may be perfected by filing a financing statement under the PPSA (or similar legislation) of any jurisdiction, the filing of financing statements naming each Grantor as
“debtor” and the Agent as “secured party” and describing the Collateral in the applicable filing offices as set forth in Exhibit G hereto, (B) in the case of Instruments, Chattel Paper and certificated Securities, the
earlier of the delivery thereof to the Agent (or its non-fiduciary agent or designee) and the filing of the financing statements referred to in clause (A), (C) in the case of Collateral constituting Intellectual Property, the earlier of the
filing of the financing statements referred to in clause (A) (except in the case of Copyrights) and the completion of the filing, registration and recording of a fully executed intellectual property security agreement in the Canadian
Intellectual Property Office, and/or (D) in the case of Deposit Accounts, upon the entering into of Blocked Account Agreements and (ii) are prior to all other Liens on the Collateral other than Liens permitted under
Section 4.1(e) having priority over the Agent’s Lien either by operation of law or otherwise. 
 (c)
Notwithstanding anything to the contrary herein, no Grantor shall be required to perfect the security interests created hereby by any means other than (i) filings pursuant to the PPSA or similar legislation of any other jurisdiction in which
the Collateral may be located from time to time, (ii) filings with the Canadian Intellectual Property Office with respect to Intellectual Property, (iii) in the case of Collateral that constitutes Chattel Paper, Instruments or certificated
Securities, in each case, to the extent included in the Collateral and required by Sections 4.2 and 4.4 herein, delivery to the Agent to be held in its possession in the United States or Ontario, provided that if delivery is made
to the Agent in the United States, such Grantor is, or shall become, party the U.S. Security Agreement and (iv) in the case of Deposit Accounts, executing Blocked Account Agreements, to the extent required by Section 2.21 of the
Credit Agreement. 
 Section 3.2. Type and Jurisdiction of Organization, Organizational and Identification Numbers. The
type of entity of each Grantor, its jurisdiction of organization, the organizational number issued to it by its jurisdiction of organization and its federal employer identification number, in each case as of the date hereof, are set forth on
Exhibit A. 
 Section 3.3. Principal Location. Each Grantor’s mailing address and the location of its
place of business (if it has only one) or its chief executive office (if it has more than one place of business), in each case as of the date hereof, is disclosed on Exhibit A. 

Section 3.4. Collateral Locations. Each location where Collateral is located as of the date hereof (except for Inventory in
transit) is listed on Exhibit A. All of said locations are owned by a Grantor except for locations (i) that are leased by a Grantor as lessee and designated in Part III(b) of Exhibit A and (ii) at which
Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment as designated in Part III(c) of Exhibit A. 
 Section 3.5. Bailees, Warehousemen, Etc. Exhibit B hereto sets forth a list, as of the date hereof, of each bailee, warehouseman and other third party in possession or control of any
Inventory in excess of $2,500,000 of any Grantor (except for Inventory in transit) and specifies as to each bailee, warehouseman or other third party the value of the Inventory, at cost, possessed or controlled by such bailee, warehouseman or other
third party. 
 Section 3.6. Exact Names. As of the date hereof, the name in which each Grantor has executed this
Security Agreement is the exact name as it appears in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization. No Grantor has, during the past five years prior to the date hereof, been
known by or used any other corporate, trade or fictitious name, or been a party to any merger or consolidation, except as disclosed in the Perfection Certificate. 

  
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 Section 3.7. Chattel Paper. Exhibit C lists all Chattel Paper with a
stated amount in excess of $2,500,000 of each Grantor as of the date hereof. 
 Section 3.8. Accounts and Chattel
Paper. 
 (a) The names of the obligors, amounts owing, due dates and other information with respect to each Grantor’s
Accounts and Chattel Paper that are Collateral have been correctly stated in all material respects, at the time furnished, in the records of such Grantor relating thereto and in all invoices and each Collateral Report with respect thereto furnished
to the Agent by such Grantor from time to time. 
 (b) With respect to Accounts of the Grantors, except as specifically
disclosed on the most recent Collateral Report, (i) all such Accounts represent bona fide sales of Inventory or rendering of services to Account Debtors in the ordinary course of the applicable Grantor’s business and are not evidenced by a
judgment, Instrument or Chattel Paper; (ii) to the best of such Grantor’s knowledge, there are no offset rights, claims or disputes existing or asserted with respect thereto 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 by a
Grantor in the ordinary course of its business for prompt payment and disclosed to the Agent; (iii) to the knowledge of such Grantor, there are no facts, events or occurrences that in any way impair the validity or enforceability thereof or
could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices, statements and the most recent Collateral Report with respect thereto; (iv) no Grantor has received any
notice of proceedings or actions that are threatened or pending against any Account Debtor that might result in any material adverse change in such Account Debtor’s financial condition; and (v) no Grantor has knowledge that any Account
Debtor is unable generally to pay its debts as they become due. 
 (c) In addition, with respect to all Accounts of the
Grantors, except as specifically disclosed on the most recent Collateral Report, the amounts shown on all invoices, statements and the most recent Collateral Report with respect thereto are actually and absolutely owing to a Grantor as indicated
thereon and are not in any way contingent. 
 Section 3.9. Inventory. With respect to any Inventory of the Grantors and
that is scheduled or listed on the most recent Collateral Report, (a) such Inventory (other than Inventory in transit) is located at one of the Grantors’ locations set forth on Exhibit A, (b) the Grantors have good,
indefeasible and merchantable title to such Inventory and such Inventory is not subject to any Lien or security interest or document whatsoever except for the Lien granted to the Agent, for the benefit of the Secured Parties, and except for Liens
permitted under Section 6.02 of the Credit Agreement, (c) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name or copyright agreement with any third party that would, upon sale or other disposition
of such Inventory by the Agent in accordance with the terms hereof, infringe the rights of such third-party, violate any contract with such third party, or cause the Agent to incur any liability with respect to payment of royalties other than
royalties incurred pursuant to sale of such Inventory under the current licensing agreement related thereto, (d) to the best of such Grantor’s knowledge, such Inventory has been produced in accordance with applicable labour and employment
laws and (e) to the best of such Grantor’s knowledge, the completion of manufacture, sale or other disposition of such Inventory by the 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 any Grantor is a party or to which such Inventory is subject. 

  
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 Section 3.10. Intellectual Property. As of the date hereof, no Grantor has any
interest in, or title to, any United States or Canadian federal registered or applied for Patent, Trademark or Copyright except as set forth on Exhibit D. 
 Section 3.11. No Financing Statements or Security Agreements. As of the date hereof, no Grantor has filed or consented to the filing of any financing statement or security agreement naming a
Grantor as debtor and describing all or any portion of the Collateral that has not lapsed or been terminated except (a) for financing statements or security agreements naming the Agent on behalf of the Secured Parties as the secured party and
(b) as permitted by Sections 4.1(e) and 4.1(f). 
 Section 3.12. Pledged Collateral.

 (a) Exhibit F sets forth a complete and accurate list, as of the date hereof, of all of the Pledged Collateral
and, with respect to any Pledged Collateral constituting any Equity Interest, the percentage of the total issued and outstanding Equity Interests of the issuer represented thereby. As of the date hereof, each Grantor is the legal and beneficial
owner of the Pledged Collateral listed on Exhibit F as being owned by it, free and clear of any Liens, except for the security interest granted to the Agent for the benefit of the Secured Parties hereunder and Liens permitted under
Section 6.02 of the Credit Agreement. Each Grantor further represents and warrants that, as of the date hereof, (i) all Pledged Collateral constituting an Equity Interest has been (to the extent such concepts are relevant with
respect to such Pledged Collateral) duly authorized and validly issued by the issuer thereof and are fully paid and non-assessable, (ii) with respect to any certificates delivered to the Agent (or its non-fiduciary agent or designee)
representing an Equity Interest, such certificates are Securities as defined in the STA as a result of actions by the issuer or otherwise, and (iii) to the best of its knowledge, any Pledged Collateral that represents Indebtedness owed to any
Grantor has been duly authorized, authenticated or issued and delivered by the issuer of such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder. 

(b) As of the date hereof, (i) none of the Pledged Collateral has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject and (ii) none of the Pledged Collateral is subject to any option, right of first refusal, shareholders agreement, charter
or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Agent of
rights and remedies hereunder. 
 (c) Except as set forth on Exhibit F, as of the date hereof, and except for any
Indebtedness represented by the Intercompany Note, none of the Pledged Collateral which represents Indebtedness owed to a Grantor is subordinated in right of payment to other Indebtedness or subject to the terms of an indenture. 

Section 3.13. Perfection Certificate. The Perfection Certificate has been duly prepared, completed and executed and the
information set forth therein is correct and complete in all material respects as of the date thereof. 

  
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 ARTICLE IV. 
 COVENANTS 
 From the date hereof, and thereafter until the Termination
Date, each Grantor agrees that: 
 Section 4.1. General. 

(a) Collateral Records. Each Grantor will maintain complete and accurate books and records in accordance with the requirements of
Section 5.06(a) of the Credit Agreement. 
 (b) Authorization to File Financing Statements; Ratification.
Each Grantor hereby authorizes the Agent to file, and if requested will deliver to the Agent, all financing statements, financing change statements, discharges and other documents and take such other actions as may from time to time be requested by
the Agent in order to maintain a perfected security interest in and, if applicable, Control of, the Collateral to the extent required by Section 3.1. Any financing statement or financing change statement filed by the Agent may be filed
in any filing office in any applicable Canadian jurisdiction and may (i) describe the Collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner
such as “all assets” or “all personal property, whether now owned or hereafter acquired” of such Grantor or words of similar effect as being of an equal or lesser scope or with greater detail, and (ii) contain any other
information required by the applicable PPSA for the sufficiency or filing office acceptance of any financing statement or financing change statement, including (A) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor and (B) in the case of a financing statement filed as a fixture filing, a sufficient description of real property to which the Collateral relates. Each Grantor also agrees to furnish any
such information to the Agent promptly upon request. Each Grantor also ratifies its authorization for the Agent to have filed in any Canadian jurisdiction any initial financing statements, financing changes statements, discharges or amendments
thereto if filed prior to the date hereof. 
 (c) Further Assurances. Each Grantor will, if reasonably requested by the
Agent, (i) take or cause to be taken such further actions in accordance with Section 5.11 of the Credit Agreement, (ii) take such other actions as the Agent reasonably deems appropriate under applicable law or to evidence or
perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Security Agreement and (iii) defend the security interests created hereby and priority thereof against the claims and demands not expressly permitted by the
Loan Documents of all Persons whomsoever. 
 (d) Disposition of Collateral. No Grantor will sell, lease, transfer or
otherwise dispose of the Collateral except for sales, leases, transfers and other dispositions specifically permitted under Section 6.05 of the Credit Agreement. 
 (e) Liens. No Grantor will create, incur, or suffer to exist any Lien on the Collateral except (i) the security interest created by this Security Agreement, and (ii) Liens permitted by
Section 6.02 of the Credit Agreement. 
 (f) Other Financing Statements. No Grantor will authorize the filing
of any financing statement naming it as debtor covering all or any portion of the Collateral, except to cover security interests as permitted by Section 4.1(e). 
 (g) Change of Name, Etc. Each Grantor agrees to furnish to the Agent prompt written notice of any change in: (i) such Grantor’s legal name; (ii) the location of such Grantor’s
chief executive office, registered office and its principal place of business; (iii) such Grantor’s organizational legal entity designation or jurisdiction of incorporation or formation; or (iv) such Grantor’s organizational
identification number assigned to it by its jurisdiction of incorporation or formation. 
 (h) Exercise of Duties.
Anything herein to the contrary notwithstanding, (a) the exercise by the Agent of any of the rights hereunder shall not release any Grantor from any of its duties or 

  
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obligations under the contracts and agreements included in the Collateral and (b) no Secured Party shall have any obligation or liability under the contracts and agreements included in the
Collateral by reason of this Security Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder. 
 Section 4.2. Delivery of Pledged Collateral. 

(a) Each Grantor will promptly deliver to the Agent (or its non-fiduciary agent or designee) upon execution of this Security Agreement,
or immediately upon acquiring future Pledged Collateral, all certificates or instruments, if any, representing or evidencing the Pledged Collateral, together with duly executed instruments of transfer or assignments in blank. Each delivery of
Pledged Collateral (including any After-acquired Shares and After-acquired Debt) after the date hereof shall be accompanied by a schedule describing the securities theretofore and then being pledged hereunder, which shall be attached hereto as part
of Exhibit F hereto and made a part hereof; provided, that the failure to attach any such schedule hereto shall not affect the validity of such pledge of such securities. Each schedule so delivered shall supplement any prior schedules so
delivered. 
 (b) Without limiting the foregoing, if any of the Collateral consists of certificated securities, the Grantors
shall immediately deliver to the Agent any and all such documents, agreements (including securities pledge agreements) and any and all certificates representing such and other materials (including effective endorsements) as may be required from time
to time in the opinion of the Agent, to provide the Agent with control over all certificated securities in the manner provided under section 23 of the STA, and at the request of the Agent, will cause all certificated securities to be registered in
the name of the Agent or as the Agent may direct. 
 Section 4.3. Uncertificated Securities. If any Grantor has or
hereafter acquires Collateral consisting of uncertificated securities, it shall deliver to the Agent any and all such documents, agreements and other materials as may be required from time to time in the opinion of the Agent, to provide the Agent
with control over all such Collateral in the manner provided under section 24 of the STA. 
 Section 4.4. Securities
Entitlements. If any Grantor has or hereafter acquires Collateral consisting of security entitlements or creates Collateral consisting of one or more securities accounts, it shall deliver to the Agent any and all such documents, agreements and
other materials as may be required from time to time, in the opinion of the Agent, to provide the Agent with control over all such Collateral in the manner provided under sections 25 and 26 of the STA and section 1(2)(e) of the PPSA. 

Section 4.5. Partnership of Limited Liability Company. If any Grantor has or hereafter acquires Collateral consisting of an
interest in a partnership or limited liability company, it shall take all steps necessary, in the opinion of the Agent to ensure that such property is and remains a security for the purposes of the STA. 

Section 4.6. Control. The Grantors shall not cause or permit any Person other than the Agent to have control of any Investment
Property constituting part of the Collateral, other than control in favour of a depositary bank or securities intermediary which has subordinated its Lien to the Lien of the Agent pursuant to documentation in form and substance satisfactory to the
Agent. 

  
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 Section 4.7. Pledged Collateral. 

(a) Registration in Nominee Name; Denominations. The Agent (or its non-fiduciary agent or designee), on behalf of the Secured
Parties, shall hold certificated Pledged Collateral in the name of the applicable Grantor, endorsed or assigned in blank or in favor of the Agent. Following the occurrence and during the continuance of an Event of Default, each Grantor will promptly
give to the Agent (or its non-fiduciary agent or designee) copies of any notices or other communications received by it with respect to Pledged Collateral registered in the name of such Grantor. Following the occurrence and during the continuance of
an Event of Default, the Agent (or its non-fiduciary agent or designee) shall at all times have the right to exchange the certificates representing Pledged Collateral for certificates of smaller or larger denominations for any purpose consistent
with this Security Agreement. 
 (b) Exercise of Rights in Pledged Collateral. 

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

(ii) Each Grantor will permit the Agent (or its non-fiduciary agent or designee) at any time after the occurrence and
during the continuance of an Event of Default, without written notice, to exercise all voting rights or other rights relating to Pledged Collateral, including, without limitation, exchange, subscription or any other rights, privileges, or options
pertaining to any Equity Interest or Investment Property constituting Pledged Collateral as if it were the absolute owner thereof. 
 (iii) Each Grantor shall be entitled to receive and retain any and all Stock Rights to the extent and only to the extent that such Stock Rights are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement, the other Loan Documents and applicable law; provided, however, that any non-cash Stock Rights that would constitute Pledged Collateral, whether resulting from a
subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Collateral or received in exchange for Pledged Collateral or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Pledged Collateral, and, if received by any Grantor, shall not be commingled by such Grantor with any of its
other funds or property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Secured Parties and shall be forthwith delivered to the Agent (or its non-fiduciary agent or designee) in the same form as so
received (with any necessary endorsement or instrument of assignment). The proviso to the first sentence of this clause (iii) shall not apply to dividends between or among the Company and the other Loan Parties only of property subject to a
perfected security interest under this Security Agreement; provided that the Company notifies the Agent in writing, specifically referring to this Section 4.7, at the time of such dividend and takes any actions the Agent
reasonably specifies to ensure the continuance of its perfected security interest in such property under this Security Agreement 
 Section 4.8. Intellectual Property. (a) Upon the occurrence and during the continuance of an Event of Default, each Grantor will use commercially reasonable efforts to obtain all consents and
approvals necessary or appropriate for the assignment to or for the benefit of the Agent of any License held by such Grantor in order to enforce the security interests granted hereunder. 

  
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 (b) Each Grantor shall in its reasonable business judgment notify the Agent promptly if it
knows or reasonably expects that any application or registration relating to any Patent, Trademark or Copyright (now or hereafter existing) included in the Collateral and material to the conduct of such Grantor’s business may become abandoned
or dedicated, or of any material adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the Canadian Intellectual Property Office or any court) regarding such Grantor’s
ownership of any such material registered or applied for Patent, Trademark or Copyright, its right to register the same, or to keep and maintain the same. 
 (c) In the event that any Grantor, either directly or through any agent, employee, licensee or designee, files an application for the registration of any material Patent, Trademark or Copyright with the
Canadian Intellectual Property Office, such Grantor will, concurrently with any delivery of financial statements pursuant to Sections 5.01(a) and 5.01(b) of the Credit Agreement, provide the Agent written notice thereof, and, upon request of
the Agent, such Grantor shall promptly execute and deliver any and all security agreements or other instruments as the Agent may reasonably request to evidence the Agent’s security interest in such Patent, Trademark or Copyright, and the
General Intangibles of such Grantor relating thereto or represented thereby. 
 (d) Each Grantor shall take all actions
necessary or reasonably requested by the Agent to maintain and pursue each material application, to obtain the relevant registration and to maintain the registration of each of the Patents, Trademarks and Copyrights (now or hereafter existing)
material to the conduct of such Grantor’s business, except in cases where, in the ordinary course of business consistent with past practice, such Grantor reasonably decides to abandon, allow to lapse or expire any Patent, Trademark or
Copyright, including the filing of applications for renewal, affidavits of use, affidavits of non-contestability and, if consistent with good business judgment, to initiate opposition and interference and cancellation proceedings against third
parties. 
 (e) Each Grantor shall, unless it shall reasonably determine that a Patent, Trademark or Copyright is not material
to the conduct of its business, promptly notify the Agent and shall, if consistent with good business judgment, promptly sue for infringement, misappropriation or dilution of such material Patent, Trademark or Copyright and to recover any and all
damages for such infringement, misappropriation or dilution, or shall take such other actions as are appropriate under the circumstances in its reasonable business judgment to protect such Patent, Trademark or Copyright. 

(f) Nothing in this Security Agreement shall prevent any Grantor from disposing of, discontinuing the use or maintenance of, failing to
pursue, or otherwise allowing to lapse, terminate or put into the public domain, any of its Collateral constituting Intellectual Property to the extent permitted by the Credit Agreement if such Grantor determines in its reasonable business judgment
that such discontinuance is desirable in the conduct of its business. 
 Section 4.9. Insurance. All insurance policies
required under Section 5.10 of the Credit Agreement shall name the Agent (for the benefit of the Agent and the other Secured Parties) as lender’s loss payee or, upon request by Agent, as additional insured, as applicable, and shall contain
lender’s loss payable clauses or mortgagee clauses, through endorsements in form and substance satisfactory to the Agent. 

Section 4.10. Collateral Access Agreements. To the extent required by the Credit Agreement, each Grantor shall use commercially
reasonable efforts to obtain a Collateral Access Agreement, from the lessor of each of its leased warehouse and distribution facilities, and the bailee, warehouseman or other third party with respect to any warehouse or other location, in each case
where Collateral is stored or located. 

  
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 ARTICLE V. 
 REMEDIES 
 Section 5.1. Remedies. Upon the occurrence and during the
continuance of an Event of Default: 
 (a) the Agent may (and at the direction of the Required Lenders, shall) exercise any or
all of the following rights and remedies: 
 (i) those rights and remedies provided in this Security Agreement,
the Credit Agreement or any other Loan Document; provided that this Section 5.1(a) shall not be understood to limit any rights available to the Agent and the Secured Parties prior to an Event of Default; 

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

(iii) give notice of sole control or any other instruction under any Blocked Account Agreement, Collateral Access
Agreement or any other control or similar agreement and take any action provided therein with respect to the applicable Collateral; 
 (iv) without notice (except as specifically provided in Section 7.1 or elsewhere herein), demand or advertisement of any kind to any Grantor or any other Person, enter the premises of any
Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options to purchase or otherwise dispose of, deliver, or realize
upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without notice and may take place at such Grantor’s premises or elsewhere),
for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Agent may deem commercially reasonable; 
 (v) appoint by instrument in writing a receiver (which term as used in this Security Agreement includes an interim receiver, and a receiver and manager) or agent of all or any part of the Collateral and
removing or replacing from time to time any receiver or agent; 
 (vi) institute proceedings in any court of
competent jurisdiction for the appointment of a receiver of all or any part of the Collateral; and 
 (vii)
concurrently with written notice to the Grantors, transfer and register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, to exchange certificates or instruments representing or evidencing Pledged Collateral
for certificates or instruments of smaller or larger denominations, to exercise the voting and all other rights as a holder with respect thereto, to collect and receive all Stock Rights that any Grantor may be entitled to receive in connection
therewith and to otherwise act with respect to the Pledged Collateral as though the Agent was the outright owner thereof. 

  
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 (b) Each Grantor acknowledges and agrees that the compliance by the Agent, on behalf of the
Secured Parties with any applicable state, provincial, territorial or federal law requirements in connection with a disposition of the Collateral will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.

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

(d) Until the Agent is able to effect a sale, lease, transfer or other disposition of Collateral, the Agent shall have the right to hold
or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or the value of the Collateral, or for any other purpose deemed appropriate by the Agent. 

(e) Notwithstanding the foregoing, neither the Agent nor the Secured Parties shall be required to (i) make any demand upon, or
pursue or exhaust any of their rights or remedies against, the Grantors, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Grantor’s Secured Obligations or to pursue or exhaust any of their rights or
remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Grantor’s Secured Obligations or to resort to the Collateral or any such guarantee in any
particular order, or (iii) effect a public sale of any Collateral. 
 (f) Each Grantor recognizes that the Agent may be
unable to effect a public sale of any or all the Pledged Collateral and may be compelled to resort to one or more private sales thereof. Each Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the
seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private. The Agent
shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral to register such securities for public sale under applicable state,
provincial, territorial or federal securities laws, even if any Grantor and the issuer would agree to do so (it being acknowledged and agreed that no Grantor shall have any obligation hereunder to do so). 

Section 5.2. Grantors’ Obligations Upon Default. Upon the written request of the Agent after the occurrence and during the
continuance of an Event of Default, each Grantor will: 
 (a) assemble and make available to the Agent the
Collateral and all books and records relating thereto at any place or places reasonably specified by the Agent, whether at such Grantor’s premises or elsewhere; and 

(b) permit the Agent, by the Agent’s representatives and agents, to enter, occupy and use any premises where all or
any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or
the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay any Grantor for such use and occupancy. 
 Section 5.3. Grant of Intellectual Property License. For the purpose of enabling the Agent to exercise the rights and remedies under this Article V upon the occurrence and during the
continuance of an Event of Default, at such time as the Agent shall be lawfully entitled to exercise such 

  
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rights and remedies, each Grantor hereby (a) grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable nonexclusive license (exercisable without payment of
royalty or other compensation to such Grantor) to use, license or sublicense any intellectual property rights now owned or hereafter acquired by such Grantor, wherever the same may be located, and including in such license access to all media in
which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof; provided, however that such licenses to be granted hereunder with respect to Trademarks shall be
subject to the maintenance of quality standards with respect to the goods and services on which such Trademarks are used sufficient to preserve the validity of such Trademarks; and provided further that the Agent shall have no greater
rights than those of any such Grantor under such license or sublicense; and (b) irrevocably agrees that, at any time and from time to time following the occurrence and during the continuance of an Event of Default, the Agent may sell any
Grantor’s Inventory directly to any Person, including without limitation Persons who have previously purchased any Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Agent’s rights
under this Security Agreement, may (subject to any restrictions contained in applicable third party licenses entered into by a Grantor) sell Inventory which bears any Trademark owned by or licensed to any Grantor and any Inventory that is covered by
any Copyright owned by or licensed to such Grantor and the Agent may finish any work in process and affix any relevant Trademark owned by or licensed to any Grantor and sell such Inventory as provided herein. The use of the license granted pursuant
to clause (a) of the preceding sentence by the Agent may be exercised, at the option of the Agent, only upon the occurrence and during the continuance of an Event of Default; provided, however, that any permitted license, sublicense or other
transaction entered into by the Agent in accordance herewith shall be binding upon each Grantor notwithstanding any subsequent cure of an Event of Default. 
 Section 5.4. Concerning a Receiver. 
 (a) Any receiver appointed by the
Agent shall be vested with all rights and remedies which could have been exercised by the Agent in respect of the Grantors or the Collateral and such other powers and discretions as are granted in the instrument of appointment and any supplemental
instruments. The choice of receiver and its remuneration are within the sole and unfettered discretion of the Agent. 
 (b) Any
receiver appointed by the Agent shall act as agent for the Agent for the purposes of taking possession of the Collateral, but otherwise and for all other purposes (except as provided below), as agent for the Grantors. The receiver may sell, lease,
or otherwise dispose of Collateral as agent for the Grantors or as agent for the Agent as the Agent may determine in its discretion, to the extent consistent with the rights of the Agent set out in this Security Agreement. The Grantors agree to
ratify and confirm all actions of the receiver acting as agent for such Grantor, and to release and indemnify the receiver in respect of all such actions. 
 (c) The Agent, in appointing or refraining from appointing any receiver, shall not incur any liability to the receiver, the Grantors or otherwise and is not responsible for any misconduct or negligence of
such receiver. 
 (d) All expenses, costs and charges incurred by or on behalf of the Agent in connection with the appointment
of a receiver under this Security Agreement shall be borne by the Grantors, are payable on demand and shall be added to and form part of the Secured Obligations. 

  
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 ARTICLE VI. 
 ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY 
 Section 6.1. Account
Verification. The Grantors acknowledge that (i) prior to an Event of Default, at the reasonable request of the Agent, the Grantors shall (either accompanied by the Agent or at the Agent’s direction), and (ii) after the occurrence
and during the continuance of an Event of Default, the Agent may in its own name, or in the name of such Grantor, communicate with the Account Debtors of such Grantor to verify with such Persons the existence, amount, terms of, and any other matter
reasonably relating to the Accounts owing by such Account Debtor to such Grantor (including any Instruments, Chattel Paper, payment intangibles and/or other Receivables that are Collateral relating to such Accounts). 

Section 6.2. Authorization for Secured Party to Take Certain Action. 

(a) Each Grantor hereby (i) authorizes the Agent, at any time and from time to time in the sole discretion of the Agent (1) to
execute on behalf of such Grantor as debtor and to file financing statements or financing change statements necessary or desirable in the Agent’s reasonable discretion to perfect and to maintain the perfection and priority of the Agent’s
security interest in the Collateral, including, without limitation, to file financing statements or financing change statements permitted under Section 4.1(b) and (2) to file a carbon, photographic or other reproduction of this
Security Agreement or any financing statement or financing change statement with respect to the Collateral as a financing statement or financing change statement and to file any other financing statement, or financing change statement (which would
not add new collateral or add a debtor) in such offices as the Agent in its reasonable discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Agent’s security interest in the Collateral, including,
without limitation, to file financing statements or financing change statements permitted under Section 4.1(b) and (ii) appoints, effective upon the occurrence and during the continuance of an Event of Default, the Agent as its
attorney in fact (1) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens as are specifically permitted by Section 6.02 of the Credit Agreement), (2) to endorse and collect
any cash proceeds of the Collateral and to apply the proceeds of any Collateral received by the Agent to the Secured Obligations as provided herein or in the Credit Agreement or any other Loan Document, (3) to demand payment or enforce payment
of the Receivables in the name of the Agent or any Grantor and to endorse any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (4) to sign any Grantor’s name on any invoice or bill of
lading relating to the Receivables, drafts against any Account Debtor of such Grantor, assignments and verifications of Receivables, (5) to exercise all of any Grantor’s rights and remedies with respect to the collection of the Receivables
and any other Collateral, (6) to settle, adjust, compromise, extend or renew the Receivables, (7) to settle, adjust or compromise any legal proceedings brought to collect Receivables, (8) to prepare, file and sign any Grantor’s
name on a proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (9) to prepare, file and sign any Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in
connection with the Receivables, (10) to change the address for delivery of mail addressed to any Grantor to such address as the Agent may designate and to receive, open and dispose of all mail addressed to such Grantor, and (11) to use
information contained in any data processing, electronic or information systems relating to Collateral; and each Grantor agrees to reimburse the Agent for any reasonable payment made or any reasonable documented expense incurred by the Agent in
connection with any of the foregoing, in accordance with the provisions Section 9.03 of the Credit Agreement; provided that, this authorization shall not relieve any Grantor of any of its obligations under this Security Agreement
or under the Credit Agreement. 

  
 - 18 -









 (b) All acts of said attorney or designee are hereby ratified and approved by the Grantors.
The powers conferred on the Agent, for the benefit of the Agent and Secured Parties, under this Section 6.2 are solely to protect the Agent’s interests in the Collateral and shall not impose any duty upon the Agent or any Secured
Party to exercise any such powers. 
 Section 6.3. PROXY. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS,
EFFECTIVE UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, THE AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.2 ABOVE) WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH
PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS,
PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE
EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT
THEREOF), UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT. 
 Section 6.4. NATURE OF APPOINTMENT;
LIMITATION OF DUTY. THE APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH
SECTION 7.13. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE AGENT, NOR ANY SECURED PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY
RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES. 

ARTICLE VII. 
 GENERAL PROVISIONS 
 Section 7.1. Waivers. Each Grantor hereby
waives notice of the time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable law, any notice made
shall be deemed reasonable, unless applicable law requires otherwise, if sent to the Grantors, addressed as set forth in Article VIII, at least ten days prior to (i) the date of any such public sale or (ii) the time after which any
such private sale or other disposition may be made. To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and demands against the Agent or any Secured Party arising out of the repossession, retention or sale of
the Collateral (after the occurrence 

  
 - 19 -









 
of and during the continuance of an Event of Default), except such as arise solely out of the gross negligence or willful misconduct of the Agent or such Secured Party as finally determined by a
court of competent jurisdiction. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against the Agent or any Secured Party, any valuation,
stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable to the sale of any Collateral (after the
occurrence of and during the continuance of an Event of Default), made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise. Except as otherwise specifically
provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 

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

  
 - 20 -









 Section 7.3. Compromises and Collection of Collateral. Each Grantor and the Agent
recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and
probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each Grantor agrees that the Agent may at any time and from time
to time, if an Event of Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Agent in its sole discretion shall determine or abandon any Receivable, and
any such action by the Agent shall be commercially reasonable so long as the Agent acts in good faith based on information known to it at the time it takes any such action. 
 Section 7.4. Secured Party Performance of Debtor Obligations. Without having any obligation to do so, following the occurrence and during the continuance of an Event of Default, the Agent may
perform or pay any obligation which any Grantor has agreed to perform or pay under this Security Agreement and such Grantor shall reimburse the Agent for any amounts paid by the Agent pursuant to this Section 7.4. Each Grantor’s
obligation to reimburse the Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand. 
 Section
7.5. No Waiver; Amendments; Cumulative Remedies. No failure or delay by the Agent or any Secured Party in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Agent and the Secured Parties hereunder
are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Security Agreement or consent to any departure by any Secured Party therefrom shall in any event be effective unless in
writing signed by the Agent with the concurrence or at the direction of the Lenders required under Section 9.02 of the Credit Agreement, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. 
 Section 7.6. Limitation by Law; Severability of Provisions. All rights, remedies and powers provided
in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory
provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part. Any provision in this
Security Agreement that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable. 
 Section 7.7. Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or
reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of such 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,” 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. 

  
 - 21 -









 Section 7.8. Benefit of Agreement. The terms and provisions of this Security
Agreement shall be binding upon and inure to the benefit of each Grantor, the Agent and the Secured Parties and their respective successors and permitted assigns (including all Persons who become bound as a debtor to this Security Agreement), except
that no Grantor shall have the right to assign its rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Agent. No sales of participations, assignments, transfers, or other
dispositions of any agreement governing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Agent, for the benefit of the Agent and the Secured Parties, hereunder. 

Section 7.9. Survival of Representations. All representations and warranties of each Grantor contained in this Security Agreement
shall survive the execution and delivery of this Security Agreement. 
 Section 7.10. Taxes and Expenses. To the extent
required by Section 9.03 of the Credit Agreement, each Grantor jointly and severally agrees to (i) pay any taxes payable or ruled payable by any provincial, territorial, state or federal authority in respect of this Security
Agreement, together with interest and penalties, if any, and (ii) reimburse the Agent for any and all reasonable documented out-of-pocket expenses paid or incurred by the Agent in connection with the preparation, execution, delivery,
administration, collection and enforcement of this Security Agreement and in the audit, analysis, administration, collection, preservation or sale of the Collateral (including the expenses and charges associated with any periodic or special audit of
the Collateral). Any and all costs and expenses incurred by any Grantor in the performance of actions required pursuant to the terms hereof shall be borne solely by such Grantor. 

Section 7.11. Additional Subsidiaries. Pursuant to and in accordance with Section 5.11 of the Credit Agreement, each
Grantor shall cause (i) each Canadian Subsidiary (other than any Excluded Subsidiary) formed or acquired after the date of this Security Agreement in accordance with the terms of the Credit Agreement and (ii) any Canadian Subsidiary that
was an Excluded Subsidiary but has ceased to be an Excluded Subsidiary, to enter into this Security Agreement as a Subsidiary Party as promptly thereafter as reasonably practicable (but in no event to exceed ninety (90) days after such
formation or acquisition or such longer period as may be agreed to by the Agent in writing. Upon execution and delivery by the Agent and such Subsidiary of an instrument in the form of Exhibit H hereto, such Subsidiary shall become a
Subsidiary Party hereunder with the same force and effect as if originally named as a Subsidiary Party herein. The execution and delivery of any such instrument shall not require the consent of any other Loan Party hereunder. The rights and
obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Security Agreement. 
 Section 7.12. Headings. The title of and section headings in this Security Agreement are for convenience of reference only, and shall not govern the interpretation of any of the terms and
provisions of this Security Agreement. 
 Section 7.13. Termination or Release. 

(a) This Security Agreement shall continue in effect until the Termination Date. 

(b) A Subsidiary Party shall automatically be released from its obligations hereunder and the security interests created hereunder in the
Collateral of such Subsidiary Party shall be automatically released upon the consummation of any transaction permitted pursuant to the Credit Agreement, as a result of which such Subsidiary Party ceases to be a Subsidiary. 

  
 - 22 -









 (c) Upon any sale, lease, transfer or other disposition by any Grantor of any Collateral
that is permitted under Section 4.1(d) to any Person that is not another Grantor or, upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to
Section 9.02 of the Credit Agreement, the security interest in such Collateral shall be automatically released. 

(d) The security interests granted hereunder on any Collateral, to the extent such Collateral is comprised of property leased to a Loan
Party, shall be automatically released upon termination or expiration of such lease, pursuant to Section 9.02 of the Credit Agreement. 
 (e) The Agent may, in its discretion, release the Lien on Collateral as provided in Section 9.02 of the Credit Agreement. 

(f) In connection with any termination or release pursuant to paragraph (a), (b), (c), (d), or (e) above, the Agent shall
promptly execute and deliver to any Grantor, at such Grantor’s expense, all financing change statements and similar documents that such Grantor shall reasonably request to evidence such termination or release. Any execution and delivery of
documents pursuant to this Section 7.13 shall be without recourse to or representation or warranty by the Agent or any Secured Party. Without limiting the provisions of Section 7.18, the Company shall reimburse the Agent upon
demand for all reasonable and documented costs and out of pocket expenses, including the fees, charges and expenses of counsel, incurred by it in connection with any action contemplated by this Section 7.13. 

Section 7.14. Entire Agreement. This Security Agreement, together with the other Loan Documents, embodies the entire agreement and
understanding between each Grantor and the Agent relating to the Collateral and supersedes all prior agreements and understandings, oral or written, between any Grantor and the Agent relating to the Collateral. 

Section 7.15. CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE PROVINCE OF ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN. 
 Section 7.16. Consent to Jurisdiction.

 (a) Each Grantor hereby irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of the
province of Ontario, in any action or proceeding arising out of or relating to this Security Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding shall be heard and determined in such province. Each Grantor 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. 
 (b) Each Grantor hereto hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Security Agreement in any court referred to in
clause (a) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

  
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 (c) Each Grantor irrevocably consents to service of process in the manner provided for
notices in Section 8.1 herein. Nothing in this Security Agreement or in any other Loan Document will affect the right of the Agent or any Secured Party to serve process in any other manner permitted by law. 

Section 7.17. WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH GRANTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 7.18. Indemnity. Each Grantor hereby agrees to indemnify and hold the Agent, the other Secured Parties, and their
respective Related Parties harmless from, any and all losses, claims, damages, penalties, liabilities, and related expenses (including, without limitation, all expenses of litigation or preparation therefor whether or not the Agent or any Secured
Party is a party thereto) imposed on, incurred by or asserted against the Agent or the Secured Parties, or their respective Related Parties, in any way relating to or arising out of this Security Agreement, to the extent the Grantor would be
required to do so pursuant to Section 9.03 of the Credit Agreement. 
 Section 7.19. Counterparts. This
Security Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page of this Security Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Security Agreement. 

Section 7.20. Gender and Number. Any reference in this Security Agreement to gender includes all genders and words importing the
singular include the plural and vice versa. 
 Section 7.21. Judgment Currency. If, for the purposes of obtaining or
enforcing judgment in any court or for any other purpose hereunder or in connection herewith, it is necessary to convert a sum due hereunder in any currency into another currency, such conversion shall be carried out to the extent and in the manner
provided in Section 9.21of the Credit Agreement. 
 Section 7.22. Mortgages. In the case of a conflict between this
Security Agreement and the Mortgages with respect to Collateral that is real property (including fixtures), the Mortgages shall govern. In all other conflicts between this Security Agreement and the Mortgages, this Security Agreement shall govern.

 ARTICLE VIII. 
 NOTICES 
 Section 8.1. Sending Notices. All notices, requests and
demands pursuant hereto shall be made in accordance with Section 9.01 of the Credit Agreement. All communications and notices hereunder to any Grantor shall be given to it in care of the Borrower Agent at the Borrower Agent’s
address set forth in Section 9.01 of the Credit Agreement. 

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

ARTICLE IX. 
 THE AGENT 
 Bank of America, N.A. has been appointed Agent for the Lenders
hereunder pursuant to Article VIII of the Credit Agreement. It is expressly understood and agreed by the parties to this Security Agreement that any authority conferred upon the Agent hereunder is subject to the terms of the delegation of
authority made by the Lenders to the Agent pursuant to the Credit Agreement, and that the Agent has agreed to act (and any successor Agent shall act) as such hereunder only on the express conditions contained in such Article VIII. Any successor
Agent appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the rights, interests and benefits of the Agent hereunder. 
 [Remainder of page intentionally left blank; signatures begin on following page.] 

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

			
	GRANTORS:
	
	ATD ACQUISITION CO. V INC.
		
	By:	 	 /s/ William E. Berry

	Name:	 	 William E. Berry

	Title:	 	 President & CEO



  

			
	TRIWEST TRADING (CANADA) LTD.
		
	By:	 	 /s/ William E. Berry

	Name:	 	 William E. Berry

	Title:	 	 President & CEO



  

			
	AGENT:
	
	BANK OF AMERICA, N.A., as Agent
		
	By:	 	 /s/ Seth Benefield

	Name:	 	Seth Benefield
	Title:	 	Senior Vice President


 Canadian Pledge and Security Agreement 







 SCHEDULE 1 
 Excluded Accounts 
 Nil. 







 EXHIBIT A 
 Type of Organization, Jurisdiction of Organization, Organizational Identification 
 Number, Federal Employer Identification Number, Chief Executive Office, Locations 
 I. The
corporate name, jurisdiction of organization, organizational identification number and federal employer identification number of each Grantor is as follows: 
  

					
	 Grantor
	  	 Jurisdiction of Organization
	  	 Organizational Identification Number

	 ATD Acquisition Co. V Inc.
	  	Canada	  	Corporation No. 8351562 (Canada)
	 Triwest Trading (Canada) Ltd.
	  	Canada	  	Corporation No. 0705861-1-R (Canada)

 II. Each Grantor’s mailing address and the location of its place of business (if it has only one) or its chief
executive office (if it has more than one place of business), is as follows: 
  

			
	 ATD Acquisition Co. V Inc.
	  	 c/o CSC North America, Inc.

45 O’Connor Street
 Suite 1600

Ottawa, ON
 K1P 1A4

		
	 Triwest Trading (Canada) Ltd.
	  	 16408 - 121A Avenue

Edmonton, AB
 T5V 1J9


 III. (a) Each location that is owned by a Grantor where Collateral is located as of the date hereof (except for
Inventory in transit) is as follows: 
 Nil. 
 (b) Each location that is leased by a Grantor where Collateral is located as of the date hereof (except for Inventory in transit) is as follows: 

 

							
	 Address
	  	 City
	  	 Province/ State
	  	 Zip/ Postal Code

	 Building A – Unit 109

26868 56th Avenue
	  	Langley	  	BC	  	V4W 1N9
	 #102 5498 – 267 St.
	  	Langley	  	BC	  	V4W 3S8









							
	 Address
	  	 City
	  	 Province/State
	  	 Zip/ Postal Code

	 256
2nd Avenue
	  	Prince George	  	BC	  	V2L 4V7
	 1644 1st Avenue
	  	Prince George	  	BC	  	V2L 2Y9
	 1021 Waddington Drive
	  	Vernon	  	BC	  	V1T 9E2
	 921 Waddington Drive
	  	Vernon	  	BC	  	V1T 9E2
	 16408 – 121A Avenue N.W.
	  	Edmonton	  	AB	  	T5V 1J9
	 11749 – 180 Street
	  	Edmonton	  	AB	  	T5S 2J2
	 5018 – 68th Avenue S.E.
 (Alternatively described as 4770, 5150, and 5160 – 68th Avenue S.E. or 4990, 5160 68th Avenue S.E.)
	  	Calgary	  	AB	  	T2C 4N8
	 5366 – 55th Street S.E.
	  	Calgary	  	AB	  	T2C 3G9
	 226 Edson Street
	  	Saskatoon	  	SK	  	S7J 0P9
	 310
6th Avenue
	  	Regina	  	SK	  	S4N 5A4
	 1450 Wall Street
	  	Winnipeg	  	MB	  	R3E 2S3
	 1425 Whyte Avenue
	  	Winnipeg	  	MB	  	R3E 1V7
	 1695 Meyerside Drive
	  	Mississauga	  	ON	  	L5T 1B9
	 1705 Meyerside Drive |
	  	Mississauga	  	ON	  	L5T 1B9
	 400 – 1100 Polytek Street
	  	Ottawa	  	ON	  	K1J 0B3
	 90 rue de Rotterdam
	  	Saint-Augustin-de-Desmaures	  	QC	  	G3A 1S9
	 150 rue Brossard
	  	Delson	  	QC	  	J5B 1X1
	 Unit #1 – 755 Foley Avenue
	  	Bathurst	  	NB	  	E2A 4W7
	 Unit 5 – 1940 Hall Court Bathurst Industrial Park
	  	Bathurst	  	NB	  	E2A 4W7
	 500 Main Street
	  	Bathurst	  	NB	  	E2A 1B4
	 175 Beaverbrook Street
	  	Moncton	  	NB	  	E1C 9S4
	 175b Beaverbrook Street
	  	Moncton	  	NB	  	E1C 9S4
	 21 McCurdy Avenue
	  	Dartmouth	  	NS	  	B3B 1C4
	 191 Joseph Zatzman Drive
	  	Dartmouth	  	NS	  	B3B 1M5

 (c) Each location where Collateral is held in a public warehouse or is otherwise held by a bailee or on consignment as of
the date hereof (except for Inventory in transit) is as follows: 
 Nil. 
 Canadian Pledge and Security Agreement 







 EXHIBIT B 
 Bailees, Warehousemen and Third Party Possessors of Collateral 
 The following bailees,
warehouseman and other third parties are in possession or control of Inventory of a Grantor (except for Inventory in transit): 
  

							
	 Name and Address of Party
	  	 Nature of Relationship
	  	 Value of Inventory
	  	 Owner of Inventory

	 Nil.
	  		  		  	
		  		  		  	
		  		  		  	








 EXHIBIT C 
 [Intentionally Deleted] 







 EXHIBIT D 
 Intellectual Property Registrations and Applications 
  

	I.	Patents and Patent Applications 

  

					
	 Patent
	  	 Owner
	  	 Federal

Registration No.

	 Nil.
	  		  	
		  		  	
		  		  	

  

	II.	Trademark Registrations and Applications 

  

					
	 Trademark
	  	 Owner
	  	 Federal

Registration No.

	 Nil.
	  		  	
		  		  	
		  		  	

  

	III.	Copyright Registrations 

  

					
	 Copyright
	  	 Owner
	  	 Federal

Registration No.

	 Nil.
	  		  	
		  		  	
		  		  	








 EXHIBIT E 
 [Intentionally Deleted] 







 EXHIBIT F 
 Pledged Collateral 
 Equity Interests: 

 

					
	 Name of Issuer
	  	 Record Owner
	  	 Percentage of Total Issued and

Outstanding Equity Interests

	 Nil.
	  		  	

 Indebtedness Owing to Grantors: 
 ATD Acquisition Co. V Inc. loan to Triwest Trading (Canada) Ltd., bearing interest at 12% per annum, with no fixed terms of repayment, and unsecured. The shareholder has agreed to provide twelve
months’ written notice prior to calling the loan balance. Principal balance (2011) of $19,448,580. 







 EXHIBIT G 
 PPSA Filing Offices 
 Alberta 
 British Columbia 
 Manitoba 
 New Brunswick 
 Nova Scotia 
 Ontario 
 Quebec 
 Saskatchewan 







 EXHIBIT H 
 Form of Joinder 
 FORM OF 

JOINDER AGREEMENT 

THIS JOINDER AGREEMENT (this “Supplement”), to the Canadian Pledge and Security Agreement dated as of
                , 2012 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), among ATD
ACQUISITION CO. V INC., a corporation incorporated under the laws of Canada (together with its successors and permitted assigns, the “Initial Canadian Borrower”); TRIWEST TRADING (CANADA) LTD., a corporation incorporated
under the laws of Canada (together with its successors and permitted assigns, “Triwest”); the Subsidiary Parties from time to time party thereto (collectively with the Initial Canadian Borrower and Triwest, the
“Grantors” and each a “Grantor”); and BANK OF AMERICA, N.A., a national banking association, in its capacity as administrative agent for the lenders party to the Credit Agreement referred to below and in its
capacity as collateral agent for the Secured Parties (in such capacities, together with its successors in such capacities, the “Agent”). 
 Reference is made to the Sixth Amended and Restated Credit Agreement dated as                 , 2012 (as further amended,
amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Grantors, AMERICAN TIRE DISTRIBUTORS, INC., a Delaware corporation (the “Company”), the
other Loan Parties, each subsidiary of the Company from time to time party thereto, the Lenders from time to time parties thereto, and Bank of America, N.A., as Agent. 
 Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the Security Agreement, as applicable, as referred to therein.

 The Grantors have entered into the Security Agreement for the purpose of inducing the Lenders to amend and restate, and to
extend credit to the Borrowers under, the Credit Agreement and to secure each Grantor’s Secured Obligations, including in the case of each Grantor that is a Loan Guarantor, its obligations under the Loan Guaranty. Section 7.11 of
the Security Agreement and Section 5.11 of the Credit Agreement provide that (i) additional Canadian Subsidiaries (other than Excluded Subsidiaries) and (ii) any Canadian Subsidiary that was an Excluded Subsidiary but has
ceased to be an Excluded Subsidiary may become Subsidiary Parties under the Security Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing
this Supplement in accordance with the requirements of the Credit Agreement or at the request of the Company to become a Subsidiary Party under the Security Agreement. 
 Accordingly, the Agent and the New Subsidiary hereby agree as follows: 
 SECTION
1. In accordance with Section 7.11 of the Security Agreement, the New Subsidiary by its signature below becomes a Subsidiary Party and Grantor under the Security Agreement with the same force and effect as if originally named therein as a
Subsidiary 

  
 2 








 
Party and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Security Agreement applicable to it as a Subsidiary Party and Grantor thereunder and (b) represents
and warrants that the representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of
such New Subsidiary’s Secured Obligations, does hereby create and grant to the Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and Lien on all of the New
Subsidiary’s right, title and interest in all of the following Collateral: 
 (i) all Accounts; 

(ii) all Chattel Paper; 
 (iii) all Intellectual Property; 
 (iv) all Documents; 

(v) all Equipment; 
 (vi) all fixtures; 
 (vii) all General Intangibles; 

(viii) all Goods; 

(ix) all Instruments; 
 (x) all Inventory; 
 (xi) all Investment Property; 

(xii) all Deposit Accounts; 
 (xiii) all cash or other property deposited with the Agent or any Lender or any Affiliate of the Agent or any Lender or which the Agent, for its benefit and for the benefit of the other Secured Parties,
or any Lender or such Affiliate is entitled to retain or otherwise possess as collateral pursuant to the provisions of this Security Agreement or any of the Loan Documents or any agreement relating to any letter of credit; 

(xiv) all books, records, files, correspondence, computer programs, tapes, disks and related data processing software which contain
information identifying or pertaining to any of the foregoing or any Account Debtor or showing the amounts thereof or payments thereon or otherwise necessary or helpful in the realization thereon or the collection thereof; and 

(xv) any and all accessions to, substitutions for and replacements, products and cash and non-cash proceeds of the foregoing (including
any claims to any items 

  
 3 








 
referred to in this definition and any claims against third parties 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 cash, negotiable instruments and other instruments for the payment of money, Chattel Paper, security agreements and other documents. 

Notwithstanding the foregoing or anything herein to the contrary, in no event shall the “Collateral” include, or the security
interest attach to, any Excluded Asset. 
 Each reference to a “Grantor” in the Security Agreement shall be deemed to
include and be a reference to the New Subsidiary. 
 SECTION 2. The New Subsidiary represents and warrants to the Agent and the
other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Supplement by facsimile or other electronic transmission shall be as effective as
delivery of a manually executed counterpart of this Supplement. 
 SECTION 4. The New Subsidiary hereby represents and warrants
that (a) set forth on Schedule I attached hereto is a true and correct schedule of the location of any and all Collateral of the New Subsidiary, (b) set forth on Schedule II attached hereto is a true and correct schedule
of all the Pledged Collateral of the New Subsidiary, (c) set forth on Schedule III attached hereto is a true and correct schedule of all Patents, Trademarks and Copyrights of the New Subsidiary and (d) set forth under its
signature hereto, is the true and correct legal name of the New Subsidiary, its jurisdiction of formation and the location of its chief executive office. 
 SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect. 
 SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE PROVINCE OF ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN. 

SECTION 7. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Security Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in
a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

  
 4 








 SECTION 8. All communications and notices hereunder shall be in writing and given as
provided in Section 8.1 of the Security Agreement. 
 SECTION 9. The New Subsidiary agrees to reimburse the Agent
for its reasonable documented out-of-pocket expenses in connection with this Supplement, including, without limitation, the reasonable fees, other charges and disbursements of counsel for the Agent. 

IN WITNESS WHEREOF, the New Subsidiary and the Agent have duly executed this Supplement to the Security Agreement as of the day and year
first above written. 
  

			
	[NAME OF NEW SUBSIDIARY]
		
	By	 	  

		 	Name:
		 	Title:
	
	Legal Name:
	
	Jurisdiction of Formation:
	
	Location of Chief Executive office:
	
	BANK OF AMERICA, N.A., as Agent
		
	By	 	  

		 	Name:
		 	Title:



  
 5 








 Schedule I 
 to the Joinder Agreement to the 
 Canadian Pledge and Security Agreement 

LOCATION OF COLLATERAL 
  

			
	 Description
	  	 Location









 Schedule II 
 to the Joinder Agreement to the 
 Canadian Pledge and Security Agreement 

PLEDGED COLLATERAL 







 Schedule III 
 to the Joinder Agreement to the 
 Canadian Pledge and Security Agreement 

INTELLECTUAL PROPERTY RIGHTS 
 PATENT AND PATENT APPLICATIONS 
  

					
	 Patent
	  	 Owner
	  	 Federal Registration No.

	  	  	  	  	  
	  	  	  	  	  

 TRADEMARK REGISTRATIONS AND APPLICATIONS 

 

					
	 Trademark
	  	 Owner
	  	 Federal Registration No.

	  	  	  	  	  
	  	  	  	  	  

 COPYRIGHT REGISTRATIONS 

 

					
	 Copyright
	  	 Owner
	  	 Federal Registration No.

	  	  	  	  	  
	  	  	  	  	  








 EXHIBIT I 
 Form of Collateral Access Agreement 
 FORM OF 

COLLATERAL ACCESS AGREEMENT 
 THIS COLLATERAL ACCESS AGREEMENT (this “Access Agreement”) is made and entered into between Bank of America, N.A., together with any successor agent (the “Agent”), as
agent for the lenders (collectively, the “Lenders”), and                     , a
                     (hereinafter referred to as “Landlord”) and affects that real (immovable) property described on
Exhibit A attached hereto and incorporated herein by this reference commonly known as                      (the
“Premises”). 
 Landlord is the lessor of the Premises pursuant to the provisions of that certain Lease (the
“Lease”), dated                 , between Landlord and
                    , a                     
corporation (the “Tenant”), as tenant. 
 The Agent, as agent for the Lenders, has, together with the Lenders,
entered into that certain Sixth Amended and Restated Credit Agreement dated as of                 , 2012 (the same as it may be further amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) with, among others, the Tenant pursuant to which the Lenders have made or propose to make certain loans, extensions of credit or other financial
accommodations to or for the benefit of the Tenant and under which the Tenant may incur obligations to the Lenders (all such loans and obligations now existing or hereafter arising together with interest thereon and other fees and charges in
connection therewith being herein referred to as the “Secured Obligations”). The Secured Obligations are to be secured by, among other things, all inventory, accounts, general intangibles (incorporeals) and other personal (movable)
property of the Tenant and the proceeds thereof (collectively, the “Collateral”). 
 The parties hereto agree
as follows: 
 1. As between Agent and Landlord, neither Agent nor any Lender shall have any right, title or interest in or to
(a) the security deposit, if any, and any rent which shall have been or which shall be paid by the Tenant to Landlord under and in accordance with the Lease (other than any portions thereof which shall be returned to Tenant in accordance with
the Lease), or (b) the fixtures which are not readily removable trade fixtures (e.g., overhead doors and building systems, including HVAC, plumbing, electrical or sprinkler systems or related fixtures), and such items shall not constitute
Collateral. 
 2. Landlord acknowledges and agrees that certain items constituting Collateral are or are to be located at, and
may be affixed to, the Premises or improvements thereon. 
 3. The Collateral shall be and remain personal (movable) property
notwithstanding the manner of their annexation to the Premises, their adaptability to the uses and purposes for which the Premises are used, or the intentions of the party making the annexation. 

  
 2 








 4. Any rights which Landlord may claim to have in and to the Collateral, no matter how
arising, shall be subject and subordinate to the rights, interests, hypothecs, and liens of Agent therein and Landlord hereby grants to Agent priority and preference and rank with respect thereto. 

5. Landlord consents to the storage and installation of the Collateral on the Premises and grants to Agent a license, as set forth below,
to enter on to the Premises to do any or all of the following with respect to the Collateral: assemble, have appraised, display, sever, remove, maintain, prepare for sale or lease, repair, lease, remove, transfer and/or sell (via one or more public
auctions or private sales). 
 6. Upon the occurrence of any default, event of default, breach of any covenant or agreement in
the Lease or other event or condition which would entitle Landlord and as a result of which Landlord intends to exercise any right, power or remedy thereunder (collectively, a “Lease Default”), and prior to the exercise of any right
to terminate the Lease, or the exercise of any other remedies under the Lease, the Landlord will notify the Agent of such Lease Default pursuant to this notice provision at the address set forth below. The notice agreed to be given herein by the
Landlord to the Agent will be in writing and sent by registered or certified mail, return receipt requested, to the address set forth below or at such other address as the Agent may specify by written notice to the Landlord at the address set forth
below: 
  

							
	If to Agent:	 	 Bank of America, N.A.
	  	 
		 	 300 Galleria Parkway, Suite 800
	  	
		 	 Atlanta, Georgia 30339
	  	
		 	 Attn: Portfolio Manager
	  	
			
	If to Landlord:	 	  
	  	
		 	  
	  	
		 	  
	  	
				
		 	Attn:	  	  
	  	

 7. Agent shall have the right and license to occupy the Premises for the purposes described above, for a
period not to exceed ninety (90) days (the length of such period being at Agent’s discretion), following Landlord’s placing Agent in possession of the Premises. Agent shall pay to Landlord, periodically, a daily license fee equivalent
to one-thirtieth (1/30th) of the monthly rental provided for in the Lease between Landlord and Tenant without the Agent or any Lender incurring any other obligations as lessee under the Lease; provided, however, that the Agent shall pay the
cost of utilities and its pro rata share of taxes during its occupation of the Premises. Any extensions of the foregoing 90-day period shall be with the written consent of Landlord and at the same rate. 

8. All structural and cosmetic damage to the Premises caused by the removal of the Collateral shall be repaired to the reasonable
satisfaction of Landlord by Agent at its expense. Agent shall indemnify and hold harmless Landlord for personal injury or property damage claims arising out of the Agent’s entry or its removal of Collateral arising from such entry. 

  
 3 








 9. This Access Agreement shall continue until such time as all of Tenant’s obligations
to Agent and the Lenders, and expenses (including, without limitation, reasonable attorneys fees) incurred in connection therewith, have been paid and all covenants and conditions as more specifically enumerated in the Credit Agreement have been
fully performed. 
 10. This Access Agreement shall be governed and controlled by and interpreted under the laws of the Province
of              and shall inure to the benefit of and be binding upon the successors, heirs and assigns of the parties hereto, including, without limitation, any successor Agent.

 Dated:                 , 20    

  

					
	 LANDLORD:
	 		 	                    , a
                    
			
		 	By	 	  

		 	Title:	 	  


  

					
	 AGENT:
	 	 
		
		 	 Bank of America, N.A., as Agent for the Lenders

			
		 	By	 	  

		 	Title:	 	  



  
 4 








 EXHIBIT A 
 to the Form of Collateral Access Agreement 
 to the Canadian Pledge and Security
Agreement 
 DESCRIPTION OF PROPERTY