Document:

EX-10.5

 Exhibit 10.5 

EXECUTION VERSION 
  

 
  

INTERCREDITOR AGREEMENT 
 dated as
of August 19, 2015 
 among 

PC INTERMEDIATE HOLDINGS, INC., 

PARTY CITY HOLDINGS INC., 
 PARTY
CITY CORPORATION, 
 and 
 the
other GRANTORS from time to time party hereto, 
 JPMORGAN CHASE BANK, N.A., 

as ABL Facility Agent, 
 and 

DEUTSCHE BANK AG NEW YORK BRANCH, 

as Term Loan Agent 
  

 
  

 Table of Contents 

 

							
	 	 	 	  	Page	 
		
	 Section 1. Definitions
	  	 	2	  
	 1.1.
	 	 Defined Terms
	  	 	2	  
	 1.2.
	 	 Terms Generally
	  	 	18	  
		
	 Section 2. Term Loan First Lien Collateral
	  	 	18	  
	 2.1.
	 	 Lien Priorities
	  	 	18	  
	 2.2.
	 	 Exercise of Remedies
	  	 	20	  
	 2.3.
	 	 Payments Over
	  	 	23	  
	 2.4.
	 	 Other Agreements
	  	 	23	  
	 2.5.
	 	 Insolvency or Liquidation Proceedings
	  	 	31	  
	 2.6.
	 	 Reliance; Waivers; Etc.
	  	 	33	  
		
	 Section 3. ABL Facility First Lien Collateral
	  	 	36	  
	 3.1.
	 	 Lien Priorities
	  	 	36	  
	 3.2.
	 	 Exercise of Remedies
	  	 	38	  
	 3.3.
	 	 Payments Over
	  	 	40	  
	 3.4.
	 	 Other Agreements
	  	 	41	  
	 3.5.
	 	 Insolvency or Liquidation Proceedings
	  	 	49	  
	 3.6.
	 	 Reliance; Waivers; Etc.
	  	 	51	  
		
	 Section 4. Cooperation With Respect To ABL Facility First Lien Collateral
	  	 	54	  
	 4.1.
	 	 Consent to License to Use Intellectual Property
	  	 	54	  
	 4.2.
	 	 Access to Information
	  	 	54	  
	 4.3.
	 	 Access to Property to Process and Sell Inventory
	  	 	54	  
	 4.4.
	 	 Grantor Consent
	  	 	57	  
		
	 Section 5. Application Of Proceeds
	  	 	57	  
	 5.1.
	 	 Application of Proceeds in Distributions by the Term Loan Security Agent
	  	 	57	  
	 5.2.
	 	 Application of Proceeds in Distributions by the ABL Facility Security Agent
	  	 	58	  
	 5.3.
	 	 Mixed Collateral Proceeds
	  	 	59	  
		
	 Section 6. Miscellaneous
	  	 	60	  
	 6.1.
	 	 Conflicts
	  	 	60	  
	 6.2.
	 	 Effectiveness; Continuing Nature of this Agreement; Severability
	  	 	60	  
	 6.3.
	 	 Amendments; Waivers
	  	 	60	  
	 6.4.
	 	 Information Concerning Financial Condition of the Company and its Subsidiaries
	  	 	61	  
	 6.5.
	 	 Submission to Jurisdiction; Waivers
	  	 	62	  
	 6.6.
	 	 Notices
	  	 	62	  
	 6.7.
	 	 Further Assurances
	  	 	63	  
	 6.8.
	 	 APPLICABLE LAW
	  	 	63	  
	 6.9.
	 	 Binding on Successors and Assigns
	  	 	63	  
	 6.10.
	 	 Specific Performance
	  	 	63	  
	 6.11.
	 	 Headings
	  	 	63	  
	 6.12.
	 	 Counterparts
	  	 	63	  
	 6.13.
	 	 Authorization; No Conflict
	  	 	63	  

  
 (i) 

 Table of Contents 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 6.14.
	 	 No Third Party Beneficiaries
	  	 	64	  
	 6.15.
	 	 Provisions Solely to Define Relative Rights
	  	 	64	  
	 6.16.
	 	 Additional Grantors
	  	 	64	  
	 6.17.
	 	 Avoidance Issues
	  	 	64	  
	 6.18.
	 	 Subrogation
	  	 	65	  
			
	Exhibit A	 	Form of Intercreditor Agreement Joinder	  			

  
 (ii) 

 This INTERCREDITOR AGREEMENT is dated as of August 19, 2015 and is by and among PC
Intermediate Holdings, Inc. a Delaware corporation (“Holdings”), Party City Holdings Inc., a Delaware corporation and referred to herein as the “Borrower Agent”), Party City Corporation, a Delaware corporation and
referred to herein as the “Subsidiary Borrower”), the other Grantors (as defined in Section 1.1) from time to time party hereto, JPMorgan Chase Bank, N.A. (“JPM”), as ABL Facility Security Agent (as
defined below), and Deutsche Bank AG New York Branch (“DBNY”), as Term Loan Security Agent (as defined below). Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in Section 1
below. 
 RECITALS: 
 WHEREAS,
Holdings, each Borrower and each other Grantor has entered into a ABL Credit Agreement, dated as of August 19, 2015 (as amended, supplemented, restated, amended and restated, modified and/or Refinanced from time to time, the “ABL
Facility Credit Agreement”), among Holdings, each Borrower, each other Grantor from time to time party thereto, the lenders from time to time party thereto (the “ABL Facility Lenders”), JPM, as administrative agent (in such
capacity and together with its successors and assigns in such capacity, the “ABL Facility Administrative Agent”) and as collateral agent (in such capacity and together with its successors and assigns in such capacity, the
“ABL Facility Security Agent”) and the other parties referred to therein; 
 WHEREAS, pursuant to the various ABL Facility
Documents, (i) the Grantors have provided guarantees for the ABL Facility Obligations and (ii) the Grantors have provided security for the ABL Facility Obligations; 

WHEREAS, Holdings, each Borrower and each other Grantor have entered into a Credit Agreement, dated as of August 19, 2015 (as amended,
supplemented, restated, amended and restated, modified and/or Refinanced from time to time, the “Term Loan Credit Agreement” and, together with the ABL Facility Credit Agreement, the “Credit Agreements”), among
Holdings, each Borrower, each other Grantor, the lenders from time to time party thereto (the “Term Loan Lenders” and, together with the ABL Facility Lenders, the “Lenders”), DBNY, as administrative agent (in such
capacity and together with its successors and assigns in such capacity, the “Term Loan Administrative Agent” and together with the ABL Facility Administrative Agent, the “Administrative Agents”), DBNY, as collateral
agent (in such capacity and together with its successors and assigns in such capacity, the “Term Loan Security Agent” and, together with the ABL Facility Security Agent, the “Security Agents” and, together with the
Administrative Agents, the “Agents”) and the other parties referred to therein; 
 WHEREAS, pursuant to the various Term
Loan Documents, (i) the Grantors have provided guarantees for the Term Loan Obligations and (ii) the Grantors have provided security for the Term Loan Obligations; 

WHEREAS, Holdings, each Borrower and the other Grantors intend to secure the ABL Facility Obligations under the ABL Facility Credit Agreement
and any other ABL Facility Documents (including any Permitted Refinancing thereof) with a First Priority Lien on the ABL Facility First Lien Collateral and a Second Priority Lien on the Term Loan First Lien Collateral; and 

WHEREAS, Holdings, each Borrower and the other Grantors intend to secure the Term Loan Obligations under the Term Loan Credit Agreement and
any other Term Loan Documents (including any Permitted Refinancing thereof) with a First Priority Lien on the Term Loan First Lien Collateral and a Second Priority Lien on the ABL Facility First Lien Collateral. 

 NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows: 
  

	Section 1.	Definitions. 

 1.1. Defined Terms. The following terms when used in this
Agreement, including its preamble and recitals, shall have the following meanings: 
 “ABL Facility Administrative Agent”
shall have the meaning set forth in the recitals hereto. 
 “ABL Facility Bank Product Agreements” shall mean each
agreement or other document governing or evidencing ABL Facility Bank Product Obligations. 
 “ABL Facility Bank Product
Creditor” shall mean each provider of “Banking Services” (as that term is defined in the ABL Facility Credit Agreement (as originally in effect)). 

“ABL Facility Bank Product Obligations” means the “Banking Services Obligations,” as that term is defined in the
ABL Facility Credit Agreement (as originally in effect). 
 “ABL Facility Collateral Priority Lien” shall have the meaning
set forth in Section 3.4(a). 
 “ABL Facility Credit Agreement” shall have the meaning set forth in the
recitals hereto. 
 “ABL Facility DIP Financing” shall have the meaning set forth in Section 3.5(a). 

“ABL Facility Documents” shall mean (x) the ABL Facility Credit Agreement and the other Loan Documents (as defined in
the ABL Facility Credit Agreement) and (y) each of the other agreements, documents and instruments providing for or evidencing any ABL Facility Obligations (including any Permitted Refinancing of any ABL Facility Obligations), together with any
amendments, replacements, modifications, extensions, renewals or supplements to, or restatements of, any of the foregoing (but excluding, for the avoidance of doubt, any documents entered into in connection with an ABL Facility DIP Financing or a
Term Loan DIP Financing). 
 “ABL Facility First Lien Collateral” shall mean all interests of each Grantor in the following
Collateral, in each case whether now owned or existing or hereafter acquired or arising and wherever located, including (1) all rights of each Grantor to receive moneys due and to become due under or pursuant to the following, (2) all
rights of each Grantor to receive return of any premiums for or Proceeds of any insurance, indemnity, warranty or guaranty with respect to the following or to receive condemnation Proceeds with respect to the following, (3) all claims of each
Grantor for damages arising out of or for breach of or default under any of the following, and (4) all rights of each Grantor to terminate, amend, supplement, modify or waive performance under any of the following, to perform thereunder and to
compel performance and otherwise exercise all remedies thereunder: 
 (i) all Accounts, but for purposes of this clause (i) excluding
rights to payment for any property which specifically constitutes Term Loan First Lien Collateral which has been or is to be sold, leased, licensed, assigned or otherwise disposed of; 

(ii) all Chattel Paper; 

  
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 (iii) all Deposit Accounts and all other demand, deposit, time, savings, cash
management, passbook and similar accounts maintained with any bank or other financial institution and all monies, securities, Instruments and other investments deposited or required to be deposited in any of the foregoing (in each case, other than
the Term Proceeds Account, all monies, securities, Instruments and other investments held in the Term Proceeds Account or credited to the Term Proceeds Account which constitute Term Loan First Lien Collateral and all identifiable Proceeds of any
Term Loan First Lien Collateral); 
 (iv) all Inventory; 

(v) to the extent evidencing or governing any of the items referred to in the preceding clauses (i) through (iv), all
General Intangibles, letters of credit (whether or not the respective letter of credit is evidenced by a writing), Letter-of-Credit Rights, Instruments and Documents; provided that to the extent any of the foregoing also relates to Term Loan
First Lien Collateral, only that portion related to the items referred to in the preceding clauses (i) through (iv) as being included in the ABL Facility First Lien Collateral shall be included in the ABL Facility First Lien Collateral;

 (vi) to the extent relating to any of the items referred to in the preceding clauses (i) through (v), all Insurance;
provided that to the extent any of the foregoing also relates to Term Loan First Lien Collateral, only that portion related to the items referred to in the preceding clauses (i) through (v) as being included in the ABL Facility
First Lien Collateral shall be included in the ABL Facility First Lien Collateral; 
 (vii) to the extent relating to any of
the items referred to in the preceding clauses (i) through (vi), all Supporting Obligations; provided that to the extent any of the foregoing also relates to Term Loan First Lien Collateral, only that portion related to the items
referred to in the preceding clauses (i) through (vi) as being included in the ABL Facility First Lien Collateral shall be included in the ABL Facility First Lien Collateral; 

(viii) to the extent relating to any of the items referred to in the preceding clauses (i) through (vii), all Commercial
Tort Claims; provided that to the extent any of the foregoing also relates to Term Loan First Lien Collateral, only that portion related to the items referred to in the preceding clauses (i) through (vii) as being included in the
ABL Facility First Lien Collateral shall be included in the ABL Facility First Lien Collateral; 
 (ix) all books and
records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating to any of the foregoing; and 

(x) all Cash Proceeds and, solely to the extent not constituting Term Loan First Lien Collateral, non-cash Proceeds, products,
accessions, rents and profits of or in respect of any of the foregoing (including without limitation, all insurance Proceeds) and all collateral security, guarantees and other Collateral Support given by any Person with respect to any of the
foregoing; 
 provided, however that (i) if Collateral of any type is received in exchange for ABL Facility First Lien Collateral in accordance
with the terms of the ABL Facility Documents, such Collateral will be treated as ABL Facility First Lien Collateral and (ii) if Collateral of any type is received in exchange for Term Loan First Lien Collateral in accordance with the terms of
the Term Loan Documents, such Collateral will be treated as Term Loan First Lien Collateral. 

  
 Page 3 

 “ABL Facility First Lien Collateral Enforcement Actions” shall have the meaning
set forth in Section 4.3(a). 
 “ABL Facility First Lien Collateral Processing and Sale Period” shall have the
meaning set forth in Section 4.3(a). 
 “ABL Facility Hedging Creditor” shall mean each counterparty to any ABL
Facility Secured Hedging Agreement (other than a Grantor). 
 “ABL Facility Lenders” shall have the meaning set forth in
the recitals hereto. 
 “ABL Facility Lien” means any Lien created by any ABL Facility Document. 

“ABL Facility Obligations” shall mean all obligations (including guaranty obligations) of every nature of each Grantor from
time to time owed to the ABL Facility Secured Parties or any of them, under any ABL Facility Document (including any ABL Facility Document in respect of a Permitted Refinancing of any ABL Facility Obligations), including, without limitation, all
“Secured Obligations” as defined in the ABL Facility Credit Agreement (or any similar term in any ABL Facility Document in respect of a Permitted Refinancing of any ABL Facility Documents) and whether for principal, premium, interest
(including interest which, but for the filing of a petition in bankruptcy with respect to Holdings or any of its Subsidiaries, would have accrued on any ABL Facility Obligation (including any Permitted Refinancing of any ABL Facility Obligations),
at the rate provided in the respective documentation, whether or not a claim is allowed against such Person for such interest in the related bankruptcy proceeding), reimbursement of amounts drawn under (and obligations to cash collateralize) letters
of credit, fees, expenses, indemnification or otherwise, and including any obligations in respect of Additional Debt which are designated as “ABL Facility Obligations”. 

“ABL Facility Permitted Liens” shall mean the “Permitted Liens” under, and as defined in, the ABL Facility Credit
Agreement (as originally in effect). 
 “ABL Facility Pledge and Security Agreement” shall mean that certain Pledge and
Security Agreement dated as of the date hereof, among Holdings, each Borrower, each other Grantor and the ABL Facility Security Agent, as amended, supplemented, restated, amended and restated and/or modified from time to time. 

“ABL Facility Secured Hedging Agreement” shall mean any Hedge Agreement with respect to Secured Hedging Obligations (as each
such term is (and the component definitions as used therein are) defined in the ABL Facility Credit Agreement (as originally in effect)). 

“ABL Facility Secured Parties” shall mean (a) the lenders (including, in any event, each letter of credit issuer and
each swingline lender), agents and arrangers under the ABL Facility Credit Agreement and shall include all former lenders, agents and arrangers under the ABL Facility Credit Agreement to the extent that any ABL Facility Obligations owing to such
Persons were incurred while such Persons were lenders, agents or arrangers under the ABL Facility Credit Agreement and such ABL Facility Obligations have not been paid or satisfied in full in cash, (b) the ABL Facility Bank Product Creditors
and the ABL Facility Hedging Creditors, and (c) all new ABL Facility Secured Parties to the extent set forth in Section 3.4(f). 

“ABL Facility Security Agent” shall have the meaning set forth in the recitals hereto and includes any New ABL Facility
Security Agent to the extent set forth in Section 3.4(f). 

  
 Page 4 

 “ABL Facility Security Documents” shall mean the ABL Facility Pledge and
Security Agreement, the other Collateral Documents (as defined in the ABL Facility Credit Agreement) and any other agreement, document or instrument pursuant to which a Lien is granted securing any ABL Facility Obligations (including any Permitted
Refinancing of any ABL Facility Obligations) or under which rights or remedies with respect to such Liens are governed, together with any amendments, replacements, modifications, extensions, renewals or supplements to, or restatements of, any of the
foregoing. 
 “ABL Facility Standstill Period” shall have the meaning set forth in Section 2.2(a). 

“Account” shall have the meaning set forth in Article 9 of the UCC. 

“Administrative Agents” shall have the meaning set forth in the recitals hereto. 

“Additional Debt” shall have the meaning set forth in Section 6.3(b). 

“Affiliate” shall mean, as applied to any Person, any other Person directly or indirectly Controlling, Controlled by, or
under common Control with, that Person. No Person shall be an “Affiliate” solely because it is an unrelated portfolio company of a Sponsor and no Agent, Lender (other than an Affiliated Lender or a Debt Fund Affiliate, in each case as
defined in the Term Loan Credit Agreement, as originally in effect) or any of their respective Affiliates shall be considered an Affiliate of Holdings or any Subsidiary thereof. 

“Agents” shall have the meaning set forth in the recitals hereto. 

“Agreement” shall mean this Intercreditor Agreement as the same may be amended, modified, restated and/or supplemented from
time to time in accordance with its terms. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code entitled
“Bankruptcy,” as now and hereafter in effect, or any successor statute. 
 “Bankruptcy Law” shall mean the
Bankruptcy Code, and any similar federal or state or non-U.S. law or statute for the supervision, administration or relief of debtors, including, without limitation, bankruptcy or insolvency laws. 

“Borrower Agent” shall have the meaning set forth in the introductory paragraph hereof. 

“Borrowers” shall mean the Borrower Agent, the Subsidiary Borrower and each additional Borrower under (and as defined in) the
ABL Facility Credit Agreement from time to time. 
 “Business Day” shall mean any day except Saturday, Sunday and any day
which shall be in New York, New York, a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close. 

“Capital Lease” shall mean, as applied to any Person, any lease of any property (whether real, person or mixed) by that
Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person. 

“Capital Stock” shall mean any and all shares, interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including, without limitation, partnership interests and membership interests, and any and all warrants, rights or options to purchase or
other arrangements or rights to acquire any of the foregoing, but excluding for the avoidance of doubt any Indebtedness convertible into or exchangeable for any of the foregoing. 

  
 Page 5 

 “Cash Proceeds” shall mean all Proceeds of any Collateral received by any
Grantor or Secured Party consisting of cash and checks. 
 “Chattel Paper” shall have the meaning set forth in Article 9 of
the UCC. Without limiting the foregoing, the term “Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic Chattel Paper. 

“Collateral” shall mean all property (whether real, personal, movable or immovable) now or hereafter acquired and wherever
located (and Proceeds thereof) with respect to which any Lien has been granted (or purported to be granted) by any Grantor pursuant to any Security Document, but excluding any Excluded ABL Facility Collateral. 

“Collateral Support” shall mean all property (real or personal) assigned, hypothecated or otherwise securing any Collateral
and shall include any security agreement or other agreement granting a Lien in such real or personal property. 
 “Commercial Tort
Claim” shall have the meaning set forth in Article 9 of the UCC. 
 “Comparable ABL Facility Security Document”
shall mean, in relation to any Collateral subject to any Lien created under any Term Loan Security Document, that ABL Facility Document which creates (or purports to create) a Lien on the same Collateral, granted by the same Grantor, as the same may
be amended, restated, amended and restated, modified, renewed, extended, refunded, replaced, Refinanced or otherwise supplemented, from time to time in accordance with the terms hereof, thereof and the Credit Agreements. 

“Comparable Term Loan Security Document” shall mean, in relation to any Collateral subject to any Lien created under any ABL
Facility Security Document, that Term Loan Document which creates (or purports to create) a Lien on the same Collateral, granted by the same Grantor, as the same may be amended, restated, amended and restated, modified, renewed, extended, refunded,
replaced, Refinanced or otherwise supplemented from time to time in accordance with the terms hereof, thereof and the Credit Agreements. 

“Contract Rights” shall mean all rights of any Grantor under each Contract, including, without limitation, (i) any and
all rights to receive and demand payments under any or all Contracts, (ii) any and all rights to receive and compel performance under any or all Contracts and (iii) any and all other rights, interests and claims now existing or in the
future arising in connection with any or all Contracts. 
 “Contracts” shall mean all contracts between any Grantor and one
or more additional parties (including, without limitation, any Hedge Agreements or contracts for Banking Services (each such term as defined in each Credit Agreement), licensing agreements and any partnership agreements, joint venture agreements and
limited liability company agreements). 
 “Control” shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative
thereto. 
 “Copyrights” shall mean, 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 

  
 Page 6 

 
protectable by copyright whether published or unpublished, 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 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. 

“Credit Agreements” shall have the meaning set forth in the recitals hereto. 

“Credit Bid Rights” means, (a) in respect of any order relating to a sale of assets constituting ABL Facility First Lien
Collateral in any Insolvency or Liquidation Proceeding, that (i) such order grants the Term Loan Security Agent and the Term Loan Secured Parties (individually and in any combination, subject to the terms of the Term Loan Documents) the right
to bid at the sale of such assets and the right to offset its claims secured by Term Loan Liens upon such assets against the purchase price of such assets if (A) the bid of the Term Loan Security Agent or such Term Loan Secured Parties is the
highest bid or otherwise determined by a court to be the best offer at a sale, (B) the Term Loan Security Agent or such Term Loan Secured Parties provide evidence of financing adequate to close the sale and (C) the bid of the Term Loan
Security Agent or such Term Loan Secured Parties includes a cash purchase price component payable at the closing of the sale in an amount that would be sufficient on the date of the closing of the sale, if such amount were applied to such payment on
such date, to effect a Discharge of ABL Facility Obligations and to satisfy all Liens entitled to priority over the ABL Facility Liens that attach to the Proceeds of the sale, and such order requires such amount to be so applied and (ii) such
order allows the claims of the Term Loan Security Agent and the Term Loan Secured Parties in such Insolvency or Liquidation Proceeding to the extent required for the grant of such rights, and (b) in respect of any order relating to a sale of
assets constituting Term Loan First Lien Collateral in any Insolvency or Liquidation Proceeding, that (i) such order grants the ABL Facility Security Agent and the ABL Facility Secured Parties (individually and in any combination, subject to
the terms of the ABL Facility Documents) the right to bid at the sale of such assets and the right to offset its claims secured by ABL Facility Liens upon such assets against the purchase price of such assets if (A) the bid of the ABL Facility
Security Agent or such ABL Facility Secured Parties is the highest bid or otherwise determined by a court to be the best offer at a sale, (B) the ABL Facility Security Agent or such ABL Facility Secured Parties provide evidence of financing
adequate to close the sale and (C) the bid of the ABL Facility Security Agent or such ABL Facility Secured Parties includes a cash purchase price component payable at the closing of the sale in an amount that would be sufficient on the date of
the closing of the sale, if such amount were applied to such payment on such date, to effect a Discharge of Term Loan Obligations and to satisfy all Liens entitled to priority over the Term Loan Liens that attach to the Proceeds of the sale, and
such order requires such amount to be so applied and (ii) such order allows the claims of the ABL Facility Security Agent and the ABL Facility Secured Parties in such Insolvency or Liquidation Proceeding to the extent required for the grant of
such rights. 
 “DBNY” shall have the meaning set forth in the introductory paragraph hereof. 

“Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, general assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally. 
 “Defaulting ABL Facility Secured Party” shall have the meaning set forth in Section 3.4(g). 

“Defaulting Term Loan Secured Party” shall have the meaning set forth in Section 2.4(g). 

  
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 “Deposit Account” shall have the meaning set forth in Article 9 of the UCC. 

“Derivative Transaction” means (a) any interest-rate transaction, including any interest-rate swap, basis swap, forward
rate agreement, interest rate option (including a cap collar and floor), and any other instrument linked to interest rates that gives rise to similar credit risks (including when-issued securities and forward deposits accepted), (b) any
exchange-rate transaction, including any cross-currency interest-rate swap, any forward foreign-exchange contract, any currency option, and any other instrument linked to exchange rates that gives rise to similar credit risks, (c) any equity
derivative transaction, including any equity-linked swap, any equity-linked option, any forward equity-linked contract, and any other instrument linked to equities that gives rise to similar credit risk and (d) any commodity (including precious
metal) derivative transaction, including any commodity-linked swap, any commodity-linked option, any forward commodity-linked contract, and any other instrument linked to commodities that gives rise to similar credit risks; provided that no
phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of Holdings or its subsidiaries shall be a Derivative Transaction. 

“Discharge of ABL Facility Obligations” shall mean, except to the extent otherwise provided in Section 3.4(f),
the occurrence of all of the following: 
 (i) termination or expiration of all commitments to extend credit that would
constitute ABL Facility Obligations; 
 (ii) payment in full in cash of the principal of and interest and premium
(if any) on all ABL Facility Obligations (other than any undrawn letters of credit) and all amounts then due and payable under any ABL Facility Secured Hedging Agreements and ABL Facility Bank Product Obligations; 

(iii) discharge or cash collateralization (at 100% of the aggregate undrawn amount) of all outstanding letters of credit
constituting ABL Facility Obligations; and 
 (iv) payment in full in cash of all other ABL Facility Obligations that are
outstanding and unpaid at the time the termination, expiration, discharge and/or cash collateralization set forth in clauses (i) through (iii) above (other than any obligations for taxes, costs, indemnifications and other contingent
liabilities in respect of which no claim or demand for payment has been made at such time). 
 “Discharge of Term Loan
Obligations” shall mean, except to the extent otherwise provided in Section 2.4(f), the occurrence of all of the following: 

(i) termination or expiration of all commitments to extend credit that would constitute Term Loan Obligations; 

(ii) payment in full in cash of the principal of and interest and premium (if any) on all Term Loan Obligations and all
amounts then due and payable under any Term Loan Secured Hedging Agreements; and 
 (iii) payment in full in cash of all
other Term Loan Obligations that are outstanding and unpaid at the time the termination, expiration and/or discharge set forth in clauses (i) and (ii) above (other than any obligations for taxes, costs, indemnifications and other
contingent liabilities in respect of which no claim or demand for payment has been made at such time). 

  
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 “Domestic Subsidiaries” shall mean all Subsidiaries of any Person incorporated
or organized under the laws of the United States of America, any State thereof or the District of Columbia. 
 “Electronic Chattel
Paper” shall have the meaning set forth in Article 9 of the UCC. 
 “Eligible ABL Facility Purchaser” shall have
the meaning set forth in Section 2.4(g). 
 “Eligible Term Loan Purchaser” shall have the meaning set forth in
Section 3.4(g). 
 “Equipment” shall have the meaning set forth in Article 9 of the UCC. 

“ERISA” shall mean the Employment Retirement Income Security Act of 1974, as amended from time to time, and any successor
thereto. 
 “Excluded ABL Facility Collateral” shall mean the Borrowers’ distribution center located at 47 Elizabeth
Drive, Chester, New York. 
 “Excluded Subsidiary” shall have the meaning provided in the Term Loan Credit Agreement (as
originally in effect). 
 “First Priority” shall mean, (i) with respect to any Lien purported to be created on any ABL
Facility First Lien Collateral pursuant to any ABL Facility Security Document, that such Lien is prior in right to any other Lien thereon, other than any ABL Facility Permitted Liens (excluding ABL Facility Permitted Liens of the type described in
Sections 6.02(o), (t), (u) and (cc) of the ABL Facility Credit Agreement as originally in effect) applicable to such ABL Facility First Lien Collateral which have priority over the respective Liens on such ABL Facility First Lien Collateral
created pursuant to the relevant ABL Facility Security Document and (ii) with respect to any Lien purported to be created on any Term Loan First Lien Collateral pursuant to any Term Loan Security Document, that such Lien is prior in right to
any other Lien thereon, other than any Term Loan Permitted Liens (excluding Term Loan Permitted Liens of the type described in Sections 6.02(o)(ii), (t), (u), and (dd) of the Term Loan Credit Agreement as originally in effect) applicable to such
Term Loan First Lien Collateral which have priority over the respective Liens on such Term Loan First Lien Collateral created pursuant to the relevant Term Loan Security Document. 

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

“GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time.

 “General Intangible” shall have the meaning set forth in Article 9 of the UCC. 

“Governmental Authority” means any federal, state, municipal, national or other government, governmental department,
commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any
court, in each case whether associated with a state or locality of the United States, the United States, or a foreign government. 

“Grantors” shall mean Holdings, each Borrower and each of the Borrower Agent’s Domestic Subsidiaries (other than
Excluded Subsidiaries) that have executed and delivered, or may from time to time hereafter execute and deliver, a ABL Facility Security Document or a Term Loan Security Document. 

  
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 “Guarantee” of or by any Person (the “Guarantor”) means any
obligation, contingent or otherwise, of the Guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation of any other Person (the “Primary Obligor”) in any manner, whether
directly or indirectly, and including any obligation of the Guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other monetary obligation of the payment
thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the Primary Obligor so as to enable the Primary Obligor to pay such Indebtedness or other monetary obligation, (d) as an
account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or monetary obligation, (e) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or
other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (f) any Lien on any assets of such Guarantor securing any Indebtedness or other monetary
obligation of any other Person, whether or not such Indebtedness or monetary other obligation is assumed by such Guarantor (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the
term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business, or customary and reasonable indemnity obligations in effect on the date hereof or entered into in connection with any acquisition or
disposition of assets permitted under the ABL Facility Credit Agreement and the Term Loan Credit Agreement (other than such obligations with respect to Indebtedness). The amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. 
 “Hedge Agreement” shall mean any agreement with respect to any Derivative Transaction
between any Borrower or any Subsidiary and any other Person. 
 “Indebtedness” as applied to any Person, shall mean,
without duplication, (a) all indebtedness for borrowed money; (b) that portion of obligations with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP (as in effect on the date
hereof for purposes of this clause (b)); (c) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments to the extent the same would appear as a liability on a balance sheet prepared in accordance with GAAP;
(d) any obligation owed for all or any part of the deferred purchase price of property or services (excluding (w) any earn out obligation or purchase price adjustment until such obligation becomes a liability on the balance sheet in
accordance with GAAP, (x) any such obligations incurred under ERISA, (y) trade accounts payable in the ordinary course of business (including on an inter-company basis) and (z) liabilities associated with customer prepayments and
deposits), which purchase price is (i) due more than six months from the date of incurrence of the obligation in respect thereof or (ii) evidenced by a note or similar written instrument; (e) all Indebtedness of others secured by any
Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is non-recourse to the credit of that Person; (f) the face amount of any letter of
credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (g) the Guarantee by such Person of the Indebtedness of another; (h) all obligations of such Person in respect of
any Disqualified Capital Stock (as such term and any component definitions thereof are defined in the Term Loan Credit Agreement, as originally in effect), and (i) all net obligations of such Person in respect of any Derivative Transaction,
including, without limitation, any Hedge Agreement, whether or not entered into for hedging or speculative purposes. 

  
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 “Insolvency or Liquidation Proceeding” shall mean any of the following:
(i) the filing by any Grantor of a voluntary petition in bankruptcy under any provision of any Bankruptcy Law (including, without limitation, the Bankruptcy Code) or a petition to take advantage of any receivership or insolvency laws,
including, without limitation, any petition seeking the dissolution, winding up, total or partial liquidation, reorganization, composition, arrangement, adjustment or readjustment or other relief of such Grantor, such Grantor’s debts or such
Grantor’s assets or the appointment of a trustee, receiver, liquidator, custodian or similar official for such Grantor or a material part of such Grantor’s property; (ii) the admission in writing by such Grantor of its inability to
pay its debts generally as they become due; (iii) the appointment of a receiver, liquidator, trustee, custodian or other similar official for such Grantor or all or a material part of such Grantor’s assets; (iv) the filing of any
petition against such Grantor under any Bankruptcy Law (including, without limitation, the Bankruptcy Code) or other receivership or insolvency law, including, without limitation, any petition seeking the dissolution, winding up, total or partial
liquidation, reorganization, composition, arrangement, adjustment or readjustment or other relief of such Grantor, such Grantor’s debts or such Grantor’s assets or the appointment of a trustee, receiver, liquidator, custodian or similar
official for such Grantor or a material part of such Grantor’s property; or (v) the general assignment by such Grantor for the benefit of creditors or any other marshalling of the assets and liabilities of such Grantor. 

“Insurance” shall mean (i) all insurance policies covering any or all of the Collateral (regardless of whether the ABL
Facility Security Agent or the Term Loan Security Agent is a loss payee or additional insured thereof) and (ii) any key man life insurance policies. 

“Intellectual Property” shall mean any and all Licenses, Patents, Copyrights, Trademarks and Trade Secrets. 

“Intercreditor Agreement Joinder” shall mean an agreement substantially in the form of Exhibit A hereto. 

“Instrument” shall have the meaning set forth in Article 9 of the UCC. 

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

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

“Investment Related Property” shall mean (i) any and all Investment Property and (ii) any and all Pledged
Collateral (regardless of whether classified as investment property under the UCC). 
 “Lenders” shall have the meaning set
forth in the recitals hereto. 
 “Letter of Credit Rights” shall have the meaning set forth in Article 9 of the UCC. 

“Licenses” shall mean, with respect to any Grantor, all of such Grantor’s right, title, and interest in and to
(a) any and all licensing agreements or similar arrangements in and to its owned (1) Patents, (2) Copyrights, (3) Trademarks, (4) Trade Secrets or (5) Software, (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. 

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or 

  
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other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any capitalized lease having substantially the same economic effect as any of the
foregoing) in each case, in the nature of security; provided that in no event shall an operating lease in and of itself be deemed a Lien. 

“New ABL Facility Security Agent” shall have the meaning set forth in Section 3.4(f). 

“New Term Loan Agent” shall have the meaning set forth in Section 2.4(f). 

“Patents” shall mean, 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. 

“Permitted Refinancing” shall mean, with respect to any Indebtedness under the Term Loan Documents or the ABL Facility
Documents, the Refinancing of such Indebtedness (“Refinancing Indebtedness”) in accordance with the requirements of the Term Loan Credit Agreement and the ABL Facility Credit Agreement. 

“Person” shall mean any individual, partnership, joint venture, firm, corporation, limited liability company, association,
trust or other enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 

“Pledged Collateral” means Pledged Stock, Pledged Notes or other Instruments, Securities and other Investment Property owned
by any Grantor, whether or not physically delivered to an Agent pursuant to a ABL Facility Security Document or a Term Loan Security Document, excluding any items specifically excluded from the definition of Collateral. 

“Pledged Notes” shall mean, with respect to any Grantor, all promissory notes at any time issued by Holdings or any
Subsidiary thereof and held or owned by such Grantor. 
 “Pledged ABL Facility First Lien Collateral” shall have the
meaning set forth in Section 3.4(e). 
 “Pledged Stock” shall mean, with respect to any Grantor, the shares of
Capital Stock pledged by such Grantor pursuant to any ABL Facility Security Document and Term Loan Security Document (as applicable), as well as any other shares, stock certificates, options or rights of any nature whatsoever in respect of the
Capital Stock of any issuer of such Capital Stock that may be issued or granted to, or held by, such Grantor while any ABL Facility Security Document or Term Loan Security Document is in effect. 

“Pledged Term Loan First Lien Collateral” shall have the meaning set forth in Section 2.4(e). 

“Proceeds” shall have the meaning assigned in Article 9 of the UCC and, in any event, shall also include, but not be limited
to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to any Agent or any Grantor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to any Grantor from time to time 

  
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in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any person acting under color of
Governmental Authority), (iii) any and all proceeds of Pledged Collateral including dividends or other income from, and proceeds of, Pledged Collateral, collection thereon or distributions or payments with respect thereto and (iv) any and
all other amounts from time to time paid or payable under or in connection with any of the Collateral. 
 “Recovery” shall
have the meaning set forth in Section 6.17. 
 “Refinance” shall mean, in respect of any Indebtedness, to
refinance, extend, renew, retire, defease, amend, modify, supplement, restructure, replace, refund or repay, or to issue other Indebtedness, in exchange or replacement for, such Indebtedness in whole or in part. “Refinanced” and
“Refinancing” shall have correlative meanings. 
 “Refinancing Indebtedness” shall have the meaning set
forth in the definition of “Permitted Refinancing”. 
 “SEC” shall mean the United States Securities and Exchange
Commission and any successor thereto. 
 “Second Priority” shall mean, (i) with respect to any Lien purported to be
created on any Term Loan First Lien Collateral pursuant to any ABL Facility Security Document, that such Lien is prior in right to any other Lien thereon, other than (x) Liens of the type permitted pursuant to Section 6.02(t) of the ABL
Facility Credit Agreement as originally in effect, (y) Term Loan Permitted Liens of the type permitted to be prior to the Liens on the Term Loan First Lien Collateral in accordance with clause (ii) of the definition “First
Priority” contained herein and (z) any Lien on Term Loan First Lien Collateral that is permitted by each Credit Agreement to be pari passu with the Term Loan Security Agent’s Lien in the Term Loan First Lien Collateral and
(ii) with respect to any Lien purported to be created on any ABL Facility First Lien Collateral pursuant to any Term Loan Security Document, that such Lien is prior in right to any other Lien thereon, other than (x) Liens of the type
permitted pursuant to Section 6.02(t) of the Term Loan Credit Agreement (to the extent relating to Indebtedness incurred pursuant to Section 6.01(w) of the Term Loan Credit Agreement, as originally in effect) as originally in effect,
(y) ABL Facility Permitted Liens of the type permitted to be prior to the Liens on the ABL Facility First Lien Collateral in accordance with clause (i) of the definition “First Priority” contained herein and (z) any Lien on
ABL Facility First Lien Collateral that is permitted by each Credit Agreement to be pari passu with the Term Loan Security Agent’s Lien in the ABL Facility First Lien Collateral. 

“Secured Parties” shall mean, collectively, the ABL Facility Secured Parties and the Term Loan Secured Parties. 

“Securities” shall have the meaning set forth in Article 8 of the UCC. 

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

“Securities Entitlements” shall have the meaning set forth in Article 8 of the UCC. 

“Security Agents” shall have the meaning set forth in the recitals hereto. 

“Security Document” shall mean any ABL Facility Security Document or any Term Loan Security Document. 

  
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 “Software” shall mean computer programs, source code, object code and supporting
documentation including “software” as such term is defined in Article 9 of the UCC, as well as computer programs that may be construed as included in the definition of Goods. 

“Sponsors” shall have the meaning set forth in the ABL Facility Credit Agreement and the Term Loan Credit Agreement (each as
originally in effect). 
 “Subsidiary” shall mean, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which more than 50.0% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the
election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided, that in determining the percentage of ownership interests of any Person controlled by another Person, no
ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding. 

“Subsidiary Borrower” shall have the meaning set forth in the introductory paragraph hereof. 

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

“Tangible Chattel Paper” shall mean “tangible chattel paper” as such term is defined in Article 9 of the UCC. 

“Term Loan Administrative Agent” shall have the meaning set forth in the recitals hereto. 

“Term Loan Collateral Priority Lien” shall have the meaning set forth in Section 2.4(a). 

“Term Loan Credit Agreement” shall have the meaning set forth in the recitals hereto. 

“Term Loan DIP Financing” shall have the meaning set forth in Section 2.5(a). 

“Term Loan Documents” shall mean (x) the Term Loan Credit Agreement and the other Loan Documents (as defined in the Term
Loan Credit Agreement), (y) each Term Loan Secured Hedging Agreement and (z) each of the other agreements, documents and instruments providing for or evidencing any Term Loan Obligation (including any Permitted Refinancing of any Term Loan
Obligation), together with any amendments, replacements, modifications, extensions, renewals or supplements to, or restatements of, any of the foregoing (but excluding, for the avoidance of doubt, any documents agreement entered into in connection
with an ABL Facility DIP Financing or a Term Loan DIP Financing). 
 “Term Loan First Lien Collateral” shall mean all
interests of each Grantor in the following Collateral, in each case whether now owned or existing or hereafter acquired or arising and wherever located, including (1) all rights of each Grantor to receive moneys due and to become due under or
pursuant to the following, (2) all rights of each Grantor to receive return of any premiums for or Proceeds of any insurance, indemnity, warranty or guaranty with respect to the following or to receive condemnation Proceeds with respect to the
following, (3) all claims of each Grantor for damages arising out of or for breach of or default under any of the following, and (4) all rights of each Grantor to terminate, amend, supplement, modify or waive performance under any of the
following, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder: 
 (i) any Term
Proceeds Account, and all cash, money, securities and other investments deposited therein; 

  
 Page 14 

 (ii) all Equipment; 

(iii) all Fixtures; 

(iv) all General Intangibles, including, without limitation, Contracts, together with all Contract Rights arising thereunder
(in each case other than General Intangibles constituting ABL Facility First Lien Collateral); 
 (v) all letters of credit
(whether or not the respective letter of credit is evidenced by a writing), Letter-of-Credit Rights, Instruments and Documents (except to the extent constituting ABL Facility First Lien Collateral); 

(vi) without duplication, all Investment Related Property, all Securities, all Security Entitlements and all Securities
Accounts (in each case, except to the extent constituting ABL Facility First Lien Collateral); 
 (vii) all Intellectual
Property; 
 (viii) except to the extent constituting ABL Facility First Lien Collateral, all Commercial Tort Claims; 

(ix) all real property (including, if any, leasehold interests) on which the Grantors are required to provide a Lien to the
Term Loan Secured Parties pursuant to the Term Loan Credit Agreement and any title insurance with respect to such real property (other than title insurance actually obtained by the ABL Facility Security Agent in respect of such real property) and
the Proceeds thereof; 
 (x) except to the extent constituting ABL Facility First Lien Collateral, all other personal
property (whether tangible or intangible) of such Grantor; 
 (xi) to the extent constituting, or relating to, any of the
items referred to in the preceding clauses (i) through (x), all Insurance; provided that to the extent any of the foregoing also relates to ABL Facility First Lien Collateral only that portion related to the items referred to in the
preceding clauses (i) through (x) as being included in the Term Loan First Lien Collateral shall be included in the Term Loan First Lien Collateral; 

(xii) to the extent relating to any of the items referred to in the preceding clauses (i) through (xi), all Supporting
Obligations; provided that to the extent any of the foregoing also relates to ABL Facility First Lien Collateral only that portion related to the items referred to in the preceding clauses (i) through (xi) as being included in the
Term Loan First Lien Collateral shall be included in the Term Loan First Lien Collateral; 
 (xiii) all books and records,
customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating to any of the foregoing; provided that to the extent

  
 Page 15 

 
any of such material also relates to ABL Facility First Lien Collateral only that portion related to the items referred to in the preceding clauses (i) through (xii) as being included
in the Term Loan First Lien Collateral shall be included in the Term Loan First Lien Collateral; and 
 (xiv) all Cash
Proceeds and, solely to the extent not constituting ABL Facility First Lien Collateral, non-cash Proceeds, products, accessions, rents and profits of or in respect of any of the foregoing and all collateral security, guarantees and other Collateral
Support given by any Person with respect to any of the foregoing; 
 provided, however that (i) if Collateral of any type is received in
exchange for ABL Facility First Lien Collateral in accordance with the terms of the ABL Facility Documents, such Collateral will be treated as ABL Facility First Lien Collateral and (ii) if Collateral of any type is received in exchange for
Term Loan First Lien Collateral in accordance with the terms of the Term Loan Documents, such Collateral will be treated as Term Loan First Lien Collateral. 

“Term Loan First Lien Collateral Enforcement Action Notice” shall have the meaning set forth in Section 4.3(a).

 “Term Loan First Lien Collateral Enforcement Actions” shall have the meaning set forth in Section 4.3(a).

 “Term Loan Hedging Creditor” shall mean each counterparty to any Term Loan Secured Hedging Agreement (other than a
Grantor). 
 “Term Loan Lenders” shall have the meaning set forth in the recitals to this Agreement. 

“Term Loan Lien” shall mean any Lien created by any Term Loan Security Documents. 

“Term Loan Obligations” shall mean all obligations (including guaranty obligations) of every nature of each Grantor, from
time to time owed to the Term Loan Secured Parties or any of them, under any Term Loan Document (including any Term Loan Document in respect of a Permitted Refinancing of any Term Loan Obligations), including, without limitation, all “Secured
Obligations” as defined in the Term Loan Credit Agreement (or any similar term in any Term Loan Document in respect of a Permitted Refinancing of any Term Loan Document) and whether for principal, premium, interest (including interest which,
but for the filing of a petition in bankruptcy with respect to such Person, would have accrued on any Term Loan Obligation (including any Permitted Refinancing of any Term Loan Obligations) at the rate provided in the respective documentation,
whether or not a claim is allowed against Holdings or any of its Subsidiaries for such interest in the related bankruptcy proceeding), reimbursement of amounts drawn under (and obligations to cash collateralize) letters of credit, fees, expenses,
indemnification or otherwise, and including any obligations in respect of Additional Debt which are designated as “Term Loan Obligations”. 

“Term Loan Permitted Liens” shall mean the “Permitted Liens” under, and as defined in, the Term Loan Credit
Agreement as originally in effect. 
 “Term Loan Pledge and Security Agreement” shall mean that certain Pledge and Security
Agreement dated as of the date hereof, among Holdings, each Borrower, each other Grantor and the Term Loan Security Agent, as amended, supplemented, restated, amended and restated and/or modified from time to time. 

  
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 “Term Loan Secured Hedging Agreement” shall mean any Hedge Agreement with
respect to Secured Hedging Obligations (as each such term is (and the component definitions as used therein are) defined in the Term Loan Credit Agreement (as originally in effect)). 

“Term Loan Secured Parties” shall mean (a) the lenders, agents and arrangers under the Term Loan Credit Agreement and
shall include all former lenders, agents and arrangers under the Term Loan Credit Agreement to the extent that any Term Loan Obligations owing to such Persons were incurred while such Persons were lenders, agents or arrangers under the Term Loan
Credit Agreement and such Term Loan Obligations have not been paid or satisfied in full in cash, (b) the Term Loan Hedging Creditors and (c) all new Term Loan Secured Parties to the extent set forth in Section 2.4(f). 

“Term Loan Security Agent” shall have the meaning set forth in the recitals hereto and includes any New Term Loan Agent to
the extent set forth in Section 2.4(f). 
 “Term Loan Security Documents” shall mean the Term Loan Pledge and
Security Agreement, the other Collateral Documents (as defined in the Term Loan Credit Agreement) and any other agreement, document or instrument pursuant to which a Lien is granted securing any Term Loan Obligations (including any Permitted
Refinancing of any Term Loan Obligation) or under which rights or remedies with respect to such Liens are governed, together with any amendments, replacements, modifications, extensions, renewals or supplements to, or restatements of, any of the
foregoing. 
 “Term Loan Standstill Period” shall have the meaning set forth in Section 3.2(a). 

“Term Proceeds Account” shall mean one or more Deposit Accounts or Securities Accounts established by the Term Loan Security
Agent into which there may be deposited Proceeds of sales or dispositions of Term Loan First Lien Collateral (to the extent such Proceeds constitute Term Loan First Lien Collateral). 

“Trade Secrets” shall mean any (a) trade secrets or other confidential and proprietary information, including unpatented
inventions, invention disclosures, engineering or other data, information, production procedures, know-how, financial data, customer lists, supplier lists, business and marketing plans, processes, schematics, algorithms, techniques, analyses,
proposals, source code, and data collections; (b) 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; (c) 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 (d) all rights corresponding to any of the foregoing
throughout the world. 
 “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 logos, slogans and other indicia of origin 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. 

“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the
laws of which are required to be applied in connection with the creation or perfection of security interests in any Collateral. 

  
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 1.2. Terms Generally. The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed
to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented, renewed, extended, refunded,
replaced or Refinanced or otherwise modified to the extent not prohibited hereby, (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision of this Agreement, (d) all references herein to Exhibits or Sections
shall be construed to refer to Exhibits or Sections of this Agreement, (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights, (f) terms defined in the UCC but not otherwise defined herein shall have the same meanings herein as are assigned thereto in the UCC, (g) reference to any law means
such law as amended, modified, codified, replaced or re-enacted, in whole or in part, and in effect on the date hereof, including rules, regulations, enforcement procedures and any interpretations promulgated thereunder, and (h) references to
Sections or clauses shall refer to those portions of this Agreement, and any references to a clause shall, unless otherwise identified, refer to the appropriate clause within the same Section in which such reference occurs. 

 

	Section 2.	Term Loan First Lien Collateral. 

 2.1. Lien Priorities. 

(a) Relative Priorities. Notwithstanding (i) the time, manner, order or method of grant, creation, attachment or perfection of any
Liens securing the ABL Facility Obligations granted on the Term Loan First Lien Collateral or of any Liens securing the Term Loan Obligations granted on the Term Loan First Lien Collateral, (ii) the validity or enforceability of the security
interests and Liens granted in favor of any Security Agent or any Secured Party on the Term Loan First Lien Collateral, (iii) the date on which any ABL Facility Obligations or Term Loan Obligations are made or extended, (iv) any provision
of the UCC or any other applicable law, including any rule for determining priority thereunder or under any other law or rule governing the relative priorities of secured creditors, including with respect to real property or fixtures, (v) any
provision set forth in any ABL Facility Document or any Term Loan Document (other than this Agreement), (vi) the possession or control by any Security Agent or any Secured Party or any bailee of all or any part of any Term Loan First Lien
Collateral as of the date hereof or otherwise, (vii) any failure by any Term Loan Secured Party to perfect its security interests in the Term Loan First Lien Collateral or (viii) any other circumstance whatsoever, the ABL Facility Security
Agent, on behalf of itself and the ABL Facility Secured Parties, hereby agrees that: 
 (i) any Lien on the Term Loan First
Lien Collateral securing any Term Loan Obligations now or hereafter held by or on behalf of the Term Loan Security Agent or any Term Loan Secured Party or any agent or trustee therefor, regardless of how acquired, whether by grant, possession,
statute, operation of law, subrogation or otherwise, shall be senior in all respects and prior to any Lien on the Term Loan First Lien Collateral securing any of the ABL Facility Obligations; and 

(ii) any Lien on the Term Loan First Lien Collateral now or hereafter held by or on behalf of the ABL Facility Security Agent
or any ABL Facility Secured Party or any agent or trustee therefor regardless of how acquired, whether by grant, possession, statute, operation of law or court order, subrogation or otherwise, shall be junior and subordinate in all respects to all
Liens on the Term Loan First Lien Collateral securing any Term Loan Obligations. 

  
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 All Liens on the Term Loan First Lien Collateral securing any Term Loan Obligations shall be and remain senior in
all respects and prior to all Liens on the Term Loan First Lien Collateral securing any ABL Facility Obligations for all purposes, whether or not such Liens securing any Term Loan Obligations are subordinated to any Lien securing any other
obligation of any Borrower, any other Grantor or any other Person (but only to the extent that such subordination is permitted pursuant to the terms of the ABL Facility Credit Agreement and the Term Loan Credit Agreement, or as contemplated in
Section 2.5). The parties hereto acknowledge and agree that it is their intent that the ABL Facility Obligations (and the security therefor) constitute a separate and distinct class (and separate and distinct claims) from the Term Loan
Obligations (and the security therefor). 
 (b) Prohibition on Contesting Liens. Each of the ABL Facility Security Agent, for itself
and on behalf of each ABL Facility Secured Party, and the Term Loan Security Agent, for itself and on behalf of each Term Loan Secured Party, agrees that it shall not (and hereby waives any right to) contest or support any other Person in
contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), (i) the priority, validity, extent, perfection or enforceability of a Lien held by or on behalf of any of the Term Loan Secured Parties in the Term Loan First
Lien Collateral or by or on behalf of any of the ABL Facility Secured Parties in the Term Loan First Lien Collateral, as the case may be, (ii) the validity or enforceability of any ABL Facility Security Document (or any ABL Facility Obligations
thereunder) or any Term Loan Security Document (or any Term Loan Obligations thereunder) or (iii) the relative rights and duties of the holders of the ABL Facility Obligations and the Term Loan Obligations granted and/or established in this
Agreement; provided that nothing in this Agreement shall be construed to prevent or impair the rights of either of the Security Agents or any Secured Party to enforce this Agreement, including the priority of the Liens on the Term Loan First
Lien Collateral securing the Term Loan Obligations and the ABL Facility Obligations as provided in Sections 2.1(a) and 2.2(a). 

(c) No New Liens. So long as the Discharge of Term Loan Obligations has not occurred, except as contemplated by
Section 2.1(f) or Section 2.5(c), the parties hereto agree that no Borrower nor any other Grantor shall grant or permit any additional Liens on any asset or property of any Grantor to secure any ABL Facility Obligation unless it
has granted or contemporaneously grants (i) a First Priority Lien on such asset or property to secure the Term Loan Obligations if such asset or property constitutes Term Loan First Lien Collateral or (ii) a Second Priority Lien on such
asset or property to secure the Term Loan Obligations if such asset or property constitutes ABL Facility First Lien Collateral. To the extent that the provisions of clause (i) in the immediately preceding sentence are not complied with for any
reason, without limiting any other rights and remedies available to the Term Loan Security Agent and/or the Term Loan Secured Parties, the ABL Facility Security Agent, on behalf of ABL Facility Secured Parties, agrees that any amounts received by or
distributed to any of them pursuant to or as a result of Liens on the Term Loan First Lien Collateral granted in contravention of such clause (i) of this Section 2.1(c) shall be subject to Section 2.3. 

(d) Effectiveness of Lien Priorities. Each of the parties hereto acknowledges that the Lien priorities provided for in this Agreement
shall not be affected or impaired in any manner whatsoever, including, without limitation, on account of: (i) the invalidity, irregularity or unenforceability of all or any part of the ABL Facility Documents or the Term Loan Documents;
(ii) any amendment, change or modification of any ABL Facility Documents or Term Loan Documents not in contravention of the terms of this Agreement; or (iii) any impairment, modification, change, exchange, release or subordination of or
limitation on, any liability of, or stay of actions or lien enforcement proceedings against, Holdings or any of its Subsidiaries party to any of the ABL Facility Documents or 

  
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Term Loan Documents, its property, or its estate in bankruptcy resulting from any bankruptcy, arrangement, readjustment, composition, liquidation, rehabilitation, similar proceeding or otherwise
involving or affecting any Secured Party. 
 (e) Similar Liens and Agreements. The parties hereto agree that, subject to
Section 2.1(f), it is their intention that the Collateral securing each of the ABL Facility Obligations and the Term Loan Obligations be the same. In furtherance of the foregoing and of Section 6.7, each Security Agent and
each Secured Party agrees, subject to the other provisions of this Agreement: 
 (i) upon request by any Security Agent, to
cooperate in good faith (and to direct their counsel to cooperate in good faith) from time to time in order to determine the specific items included in the Collateral securing the ABL Facility Obligations or the Term Loan Obligations, as the case
may be, and the steps taken to perfect the Liens thereon and the identity of the respective parties obligated under the ABL Facility Documents or the Term Loan Documents, as the case may be; 

(ii) that the Term Loan Security Documents and the ABL Facility Security Documents creating Liens on the Term Loan First Lien
Collateral and the ABL Facility First Lien Collateral shall be in all material respects the same forms of documents other than with respect to (A) the First Priority and the Second Priority nature of the Liens created thereunder in such
Collateral and (B) the Excluded ABL Facility Collateral; and 
 (iii) the guarantees for the ABL Facility Obligations
and the Term Loan Obligations shall be substantially in the same form. 
 (f) Excluded ABL Facility Collateral. Notwithstanding
any other provision to the contrary contained in this Agreement, it is understood and agreed that this Agreement shall not restrict the rights of the Term Loan Security Agent or any other Term Loan Secured Party to pursue enforcement proceedings,
exercise remedies or make determinations with respect to the Excluded ABL Facility Collateral or otherwise take actions with respect to the Excluded ABL Facility Collateral in accordance with the applicable Term Loan Documents, and such Excluded ABL
Facility Collateral shall be applied as specified in the applicable Term Loan Documents and will not constitute Collateral. 
 2.2.
Exercise of Remedies. 
 (a) So long as the Discharge of Term Loan Obligations has not occurred, whether or not any Insolvency or
Liquidation Proceeding has been commenced by or against any Borrower or any other Grantor: 
 (i) neither the ABL Facility
Security Agent nor any of the ABL Facility Secured Parties (x) will exercise or seek to exercise any rights or remedies (including, without limitation, setoff) with respect to any Term Loan First Lien Collateral (including, without limitation,
the exercise of any right under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter or similar agreement or arrangement in respect of Term Loan First Lien Collateral to which the ABL Facility Security Agent or
any ABL Facility Secured Party is a party) or institute or commence, or join with any Person (other than the Term Loan Security Agent and the Term Loan Secured Parties) in commencing any action or proceeding with respect to such rights or remedies
(including any action of foreclosure), enforcement, collection or execution; provided, however, that the ABL Facility Security Agent may exercise any or all such rights in accordance with the ABL Facility Documents after the passage of
a period of 180 days from the date of delivery of a notice in writing to the Term Loan Security Agent of the ABL 

  
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Facility Security Agent’s intention to exercise its right to take such actions (the “ABL Facility Standstill Period”); provided, further, however,
notwithstanding anything herein to the contrary, neither the ABL Facility Security Agent nor any ABL Facility Secured Party will exercise any rights or remedies with respect to any Term Loan First Lien Collateral if, notwithstanding the expiration
of the ABL Facility Standstill Period, the Term Loan Security Agent or Term Loan Secured Parties shall have commenced and be diligently pursuing in good faith the exercise of any of their rights or remedies with respect to a material portion of the
Term Loan First Lien Collateral (prompt notice of such exercise to be given to the ABL Facility Security Agent, it being understood and agreed that any failure to provide such notice shall not impair any of the Term Loan Security Agent’s or the
Term Loan Secured Parties’ rights hereunder), (y) will contest, protest or object to any foreclosure proceeding or action brought by the Term Loan Security Agent or any Term Loan Secured Party with respect to, or any other exercise by the
Term Loan Security Agent or any Term Loan Secured Party of any rights and remedies relating to, the Term Loan First Lien Collateral under the Term Loan Documents or otherwise, and (z) subject to its rights under clause (i)(x) above, will object
to the forbearance by the Term Loan Security Agent or the Term Loan Secured Parties from bringing or pursuing any foreclosure proceeding or action or any other exercise of any rights or remedies relating to the Term Loan First Lien Collateral, in
each case so long as the respective interests of the ABL Facility Secured Parties attach to the Proceeds thereof subject to the relative priorities described in Section 2.1; provided, however, that nothing in this
Section 2.2(a) shall be construed to authorize the ABL Facility Security Agent or any ABL Facility Secured Party to sell any Term Loan First Lien Collateral free of the Lien of the Term Loan Security Agent or any Term Loan Secured Party;
and 
 (ii) subject to Section 4 and clause (i)(x) above, the Term Loan Security Agent and the Term Loan
Secured Parties shall have the exclusive right to enforce rights, exercise remedies (including set off and the right to credit bid their debt) and make determinations regarding the disposition of, or restrictions with respect to, the Term Loan First
Lien Collateral without any consultation with or the consent of the ABL Facility Security Agent or any ABL Facility Secured Party; provided, that: 

(1) in any Insolvency or Liquidation Proceeding commenced by or against Holdings, any Borrower or any other Grantor, the ABL
Facility Security Agent and any ABL Facility Secured Party may file a claim or statement of interest with respect to the Term Loan Obligations; 

(2) the ABL Facility Security Agent and any ABL Facility Secured Party may take any action (not adverse to the priority status
of the Liens on the Term Loan First Lien Collateral securing the Term Loan Obligations, or the rights of any Term Loan Security Agent or the Term Loan Secured Parties to exercise remedies in respect thereof) in accordance with the ABL Facility
Documents in order to preserve or protect its Lien on the Term Loan First Lien Collateral; 
 (3) the ABL Facility Secured
Parties shall be entitled to file any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the
ABL Facility Secured Parties, including without limitation any claims secured by the Term Loan First Lien Collateral, if any, in each case in accordance with the terms of this Agreement; 

  
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 (4) the ABL Facility Secured Parties shall be entitled to file any pleadings,
objections, motions or agreements which assert rights or interests available to unsecured creditors of the Grantors arising under either the Bankruptcy Law or applicable non-bankruptcy law, in each case in accordance with the terms of this Agreement
and to the extent not prohibited by any other provision of this Agreement; 
 (5) the ABL Facility Secured Parties shall be
entitled to vote on any plan of reorganization and file any proof of claim in an Insolvency or Liquidation Proceeding or otherwise and other filings and make any arguments and motions that are, in each case, in accordance with the terms of this
Agreement, with respect to the Term Loan First Lien Collateral; and 
 (6) the ABL Facility Security Agent or any ABL
Facility Secured Party may exercise any of its rights or remedies with respect to the Term Loan First Lien Collateral in accordance with the ABL Facility Documents after the termination of the ABL Facility Standstill Period to the extent permitted
by clause (i)(x) above. 
 Subject to Section 4 and clause (i)(x) above, in exercising rights and remedies with respect to the Term Loan
First Lien Collateral, the Term Loan Security Agent and the Term Loan Secured Parties may enforce the provisions of the Term Loan Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in the exercise
of their sole discretion. Such exercise and enforcement shall include the rights of an agent appointed by them to sell or otherwise dispose of Term Loan First Lien Collateral upon foreclosure, to incur expenses in connection with such sale or
disposition, and to exercise all the rights and remedies of a secured creditor under the UCC and of a secured creditor under any other applicable law. 

(b) The ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, agrees that it will not take or receive any
Term Loan First Lien Collateral or any Proceeds of Term Loan First Lien Collateral in connection with the exercise of any right or remedy (including setoff) with respect to any Term Loan First Lien Collateral unless and until the Discharge of Term
Loan Obligations has occurred, except as expressly provided in the first proviso in clause (i)(x) of Section 2.2(a) or in the proviso in clause (ii) of Section 2.2(a) or in Section 4. Without limiting the
generality of the foregoing, unless and until the Discharge of Term Loan Obligations has occurred, except as expressly provided in the first proviso in clause (i)(x) of Section 2.2(a) or in the proviso in clause (ii) of
Section 2.2(a) or in Section 4, the sole right of the ABL Facility Security Agent and the ABL Facility Secured Parties with respect to the Term Loan First Lien Collateral is to hold a Lien on the Term Loan First Lien
Collateral pursuant to the ABL Facility Documents for the period and to the extent granted therein and to receive a share of the Proceeds thereof, if any, after the Discharge of Term Loan Obligations has occurred in accordance with the terms hereof,
the Term Loan Documents and applicable law. 
 (c) Subject to the first proviso in clause (i)(x) of Section 2.2(a), the proviso
in clause (ii) of Section 2.2(a) and Section 4: 
 (i) the ABL Facility Security Agent, for
itself and on behalf of the ABL Facility Secured Parties, agrees that the ABL Facility Security Agent and the ABL Facility Secured Parties will not take any action that would hinder, delay, limit or prohibit any exercise of remedies under the Term
Loan Documents with respect to the Term Loan First Lien Collateral, including any collection, sale, lease, exchange, transfer or other disposition of the Term Loan First Lien Collateral, whether by foreclosure or otherwise, or that would limit,
invalidate, avoid or set aside any Lien or Term Loan Security Document with respect to the Term Loan First Lien 

  
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Collateral or subordinate the priority of the Term Loan Obligations to the ABL Facility Obligations with respect to the Term Loan First Lien Collateral or grant the Liens with respect to the Term
Loan First Lien Collateral securing the ABL Facility Obligations equal ranking to the Liens with respect to the Term Loan First Lien Collateral securing the Term Loan Obligations, and 

(ii) the ABL Facility Security Agent, for itself and on behalf of the ABL Facility Secured Parties, hereby waives any and all
rights it or the ABL Facility Secured Parties may have as a junior lien creditor with respect to the Term Loan First Lien Collateral or otherwise to object to the manner in which the Term Loan Security Agent or the Term Loan Secured Parties seek to
enforce or collect the Term Loan Obligations or the Liens granted in any of the Term Loan First Lien Collateral, in any such case except to the extent such enforcement or collection is in violation of the terms of this Agreement, regardless of
whether any action or failure to act by or on behalf of the Term Loan Security Agent or Term Loan Secured Parties is adverse to the interest of the ABL Facility Secured Parties. 

(d) The ABL Facility Security Agent hereby acknowledges and agrees that no covenant, agreement or restriction contained in any ABL Facility
Document (other than this Agreement) shall be deemed to restrict in any way the rights and remedies of the Term Loan Security Agent or the Term Loan Secured Parties with respect to the Term Loan First Lien Collateral as set forth in this Agreement
and the Term Loan Documents. 
 2.3. Payments Over. 

So long as the Discharge of Term Loan Obligations has not occurred, any Term Loan First Lien Collateral, Cash Proceeds thereof or non-cash Proceeds
constituting Term Loan First Lien Collateral (or any distribution in respect of the Term Loan First Lien Collateral, whether or not expressly characterized as such) received by the ABL Facility Security Agent or any ABL Facility Secured Party in
connection with the exercise of any right or remedy (including set off) relating to the Term Loan First Lien Collateral or otherwise that is inconsistent with this Agreement shall be segregated and held in trust and forthwith paid over to the Term
Loan Security Agent, for the benefit of the Term Loan Secured Parties, for application in accordance with Section 5.1 below, in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may
otherwise direct. The Term Loan Security Agent is hereby authorized to make any such endorsements as agent for the ABL Facility Security Agent or any such ABL Facility Secured Parties. This authorization is coupled with an interest and is
irrevocable until the Discharge of Term Loan Obligations. 
 2.4. Other Agreements. 

(a) Releases. 

(i) If, in connection with: 

(1) the exercise of any Term Loan Security Agent’s remedies in respect of the Term Loan First Lien Collateral provided for
in any Term Loan Document (with the Proceeds thereof being applied to the Term Loan Obligations), including any sale, lease, exchange, transfer or other disposition of any such Term Loan First Lien Collateral; or 

(2) any sale, lease, exchange, transfer or other disposition of any Term Loan First Lien Collateral permitted under the terms
of the Term Loan Documents and the ABL Facility Documents (other than in connection with the Discharge of Term Loan Obligations), 

  
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 the Term Loan Security Agent, for itself or on behalf of any of the Term Loan Secured Parties, releases any of
its Liens on any part of the Term Loan First Lien Collateral, then the Liens, if any, of the ABL Facility Security Agent, for itself or for the benefit of the ABL Facility Secured Parties, on such Term Loan First Lien Collateral (but not the
Proceeds thereof, which shall be subject to the priorities set forth in this Agreement) shall be automatically, unconditionally and simultaneously released and the ABL Facility Security Agent, for itself or on behalf of any such ABL Facility Secured
Parties, promptly shall execute and deliver to the Term Loan Security Agent or such Grantor such termination statements, releases and other documents as the Term Loan Security Agent or such Grantor may request to effectively confirm such release.

 (ii) Until the Discharge of Term Loan Obligations occurs, the ABL Facility Security Agent, for itself and on behalf of the
ABL Facility Secured Parties, hereby irrevocably constitutes and appoints the Term Loan Security Agent and any officer or agent of the Term Loan Security Agent, with full power of substitution, as its true and lawful attorney in fact with full
irrevocable power and authority in the place and stead of the ABL Facility Security Agent or such holder or in the Term Loan Security Agent’s own name, from time to time in the Term Loan Security Agent’s discretion, for the purpose of
carrying out the terms of this Section 2.4(a) with respect to Term Loan First Lien Collateral, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary to accomplish the purposes
of this Section 2.4(a) with respect to Term Loan First Lien Collateral, including any endorsements or other instruments of transfer or release. 

(iii) Until the Discharge of Term Loan Obligations occurs, to the extent that the Term Loan Secured Parties (a) have
released any Lien on Term Loan First Lien Collateral and any such Lien is later reinstated or (b) obtain any new First Priority Liens on assets constituting Term Loan First Lien Collateral from Grantors, then the ABL Facility Secured Parties
shall be granted a Second Priority Lien on any such Term Loan First Lien Collateral. 
 (iv) If, prior to the Discharge of
Term Loan Obligations, a subordination of the Term Loan Security Agent’s Lien on any Term Loan First Lien Collateral is permitted under the Term Loan Credit Agreement and the ABL Facility Credit Agreement to another Lien permitted under the
Term Loan Credit Agreement and the ABL Facility Credit Agreement (a “Term Loan Collateral Priority Lien”), then the Term Loan Security Agent is authorized to execute and deliver a subordination agreement with respect thereto in form
and substance satisfactory to it, and the ABL Facility Security Agent, for itself and on behalf of the ABL Facility Secured Parties, shall promptly execute and deliver to the Term Loan Security Agent an identical subordination agreement
subordinating the Liens of the ABL Facility Security Agent for the benefit of (and behalf of) the ABL Facility Secured Parties to such Term Loan Collateral Priority Lien. 

(b) Insurance. Unless and until the Discharge of Term Loan Obligations has occurred, the Term Loan Security Agent and the Term Loan
Secured Parties shall have the sole and exclusive right, subject to the rights of the Grantors under the Term Loan Documents, to adjust settlement for any Insurance policy covering the Term Loan First Lien Collateral in the event of any loss
thereunder and to approve any award granted in any condemnation or similar proceeding (or any deed in lieu of condemnation) in respect of the Term Loan First Lien Collateral; provided that, if any Insurance claim includes both ABL Facility
First Lien Collateral and Term Loan First Lien Collateral, the insurer will not settle such claim separately with respect to ABL Facility First Lien Collateral and Term Loan First Lien 

  
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Collateral, and if the Security Agents are unable after negotiating in good faith to agree on the settlement for such claim, either Security Agent may apply to a court of competent jurisdiction
to make a determination as to the settlement of such claim, and the court’s determination shall be binding upon the parties. If the ABL Facility Security Agent or any ABL Facility Secured Party shall, at any time, receive any Proceeds of any
such Insurance policy or any such award or payment in contravention of this Section 2.4(b), it shall pay such Proceeds over to the Term Loan Security Agent in accordance with the terms of Section 5.2(c). 

(c) Amendments to, and Refinancing of, ABL Facility Documents. 

(i) Subject to the Term Loan Credit Agreement (as in effect on the date hereof), the ABL Facility Documents may be amended,
restated, amended and restated, replaced, supplemented or otherwise modified in accordance with their terms and the ABL Facility Documents may be Refinanced, in each case, without notice to, or the consent of, the Term Loan Security Agent or the
other Term Loan Secured Parties (but subject to the requirements of the last sentence of this paragraph and of Section 3.4(f) below), all without affecting the lien subordination or other provisions of this Agreement. The Term Loan
Security Agent on behalf of itself and the other Term Loan Secured Parties acknowledges that a portion of the ABL Facility Obligations represents debt that is revolving in nature and that the amount thereof that may be outstanding at any time or
from time to time may be increased or reduced and subsequently reborrowed, without affecting the provisions hereof. The ABL Facility Documents may be Refinanced to the extent the terms and conditions of such Refinancing Indebtedness meet the
requirements of each Credit Agreement and the holders of such Refinancing Indebtedness bind themselves in a writing addressed to the Term Loan Security Agent and the Term Loan Secured Parties to the terms of this Agreement; provided that if
such Refinancing Indebtedness is secured by a Lien on any Collateral the holders of such Refinancing Indebtedness shall be deemed bound by the terms hereof regardless of whether or not any such writing is provided. 

(ii) The Grantors agree that each ABL Facility Security Document shall include the following language (with any necessary
modifications to give effect to applicable definitions) (or language to similar effect approved by the Term Loan Security Agent): 

“Notwithstanding anything herein to the contrary, the liens and security interests granted to the ABL Facility Security Agent pursuant to
this Agreement in any Term Loan First Lien Collateral and the exercise of any right or remedy by the ABL Facility Security Agent with respect to any Term Loan First Lien Collateral hereunder are subject to the provisions of the Intercreditor
Agreement, dated as of August 19, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among PC Intermediate Holdings, Inc., a Delaware corporation, Party City
Holdings Inc., a Delaware corporation, Party City Corporation, a Delaware corporation, the other Grantors from time to time party thereto, JPMorgan Chase Bank, N.A. (“JPM”), as ABL Facility Security Agent, Deutsche Bank AG New York
Branch (“DBNY”), as Term Loan Security Agent, and certain other Persons party or that may become party thereto from time to time. In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the
terms of the Intercreditor Agreement shall govern and control.” 
 In addition, the Grantors agree that each mortgage in favor of the
ABL Facility Secured Parties covering any Term Loan First Lien Collateral shall also contain such other language as the Term Loan Security Agent may reasonably request to reflect the subordination of such mortgage to the mortgage in favor of the
Term Loan Secured Parties covering such Term Loan First Lien Collateral. 

  
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 (iii) In the event the Term Loan Security Agent or any Term Loan Secured Party
and the relevant Grantor enter into any amendment, waiver or consent in respect of any of the Term Loan Security Documents for the purpose of adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any Term
Loan Security Document or changing in any manner the rights of the Term Loan Security Agent, such Term Loan Secured Parties, any Borrower or any other Grantor thereunder, in each case with respect to or relating to the Term Loan First Lien
Collateral, then such amendment, waiver or consent shall apply automatically to any comparable provision of the Comparable ABL Facility Security Document without the consent of the ABL Facility Security Agent or the ABL Facility Secured Parties and
without any action by the ABL Facility Security Agent, any Borrower or any other Grantor, provided, that (A) no such amendment, waiver or consent shall have the effect of (i) removing assets that constitute Term Loan First Lien
Collateral subject to the Lien of the ABL Facility Security Documents, except to the extent that a release of such Lien is permitted or required by Section 2.4(a) and provided that there is a corresponding release of such Lien
securing the Term Loan Obligations, (ii) imposing duties on the ABL Facility Security Agent without its consent or (iii) permitting other liens on the Term Loan First Lien Collateral not permitted under the terms of the ABL Facility
Documents or Section 2.5 and (B) notice of such amendment, waiver or consent shall have been given to the ABL Facility Security Agent within ten (10) Business Days after the effective date of such amendment, waiver or consent
(although the failure to give any such notice shall in no way affect the effectiveness of any such amendment, waiver or consent). 

(iv) The Term Loan Security Agent shall endeavor to give prompt notice of any amendment, waiver or consent of a Term Loan
Document to the ABL Facility Security Agent after the effective date of such amendment, waiver or consent; provided, that the failure of the Term Loan Security Agent to give any such notice shall not affect the priority of the Term Loan
Security Agent’s Liens as provided herein or the validity or effectiveness of any such notice as against the Grantors or any of their Subsidiaries. 

(d) Rights As Unsecured Creditors. Except as otherwise set forth in this Agreement, the ABL Facility Security Agent and the ABL
Facility Secured Parties may exercise rights and remedies as unsecured creditors against any Borrower or any other Grantor in accordance with the terms of the ABL Facility Documents to which it is a party and applicable law. Except as otherwise set
forth in this Agreement, nothing in this Agreement shall prohibit the receipt by the ABL Facility Security Agent or any ABL Facility Secured Party of the required payments of interest, principal and other amounts in respect of the ABL Facility
Obligations so long as such receipt is not the direct or indirect result of the exercise by the ABL Facility Security Agent or any ABL Facility Secured Party of rights or remedies as a secured creditor (including set off) in respect of the Term Loan
First Lien Collateral in contravention of this Agreement or enforcement in contravention of this Agreement of any Lien held by any of them. In the event the ABL Facility Security Agent or any other ABL Facility Secured Party becomes a judgment lien
creditor in respect of any Term Loan First Lien Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subordinated to the Liens securing Term Loan Obligations on the same basis as the other
Liens on the Term Loan First Lien Collateral securing the ABL Facility Obligations are so subordinated to such Term Loan Obligations under this Agreement. Nothing in this Agreement impairs or otherwise adversely affects any rights or remedies the
Term Loan Security Agent or the other Term Loan Secured Parties may have with respect to the Term Loan First Lien Collateral. 

  
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 (e) Bailee for Perfection. 

(i) The Term Loan Security Agent agrees to hold or control that part of the Term Loan First Lien Collateral that is in its
possession or control (or in the possession or control of its agents or bailees) to the extent that possession or control thereof is taken to perfect a Lien thereon under the UCC or other applicable law (such Term Loan First Lien Collateral being
the “Pledged Term Loan First Lien Collateral”) as collateral agent for the Term Loan Secured Parties and as bailee for and, with respect to any Term Loan First Lien Collateral that cannot be perfected in such manner, as agent for,
the ABL Facility Security Agent (on behalf of the ABL Facility Secured Parties) and any assignee thereof solely for the purpose of perfecting the security interest granted under the Term Loan Documents and the ABL Facility Documents, respectively,
subject to the terms and conditions of this Section 2.4(e). 
 (ii) Subject to the terms of this Agreement, until
the Discharge of Term Loan Obligations has occurred, the Term Loan Security Agent shall be entitled to deal with the Pledged Term Loan First Lien Collateral in accordance with the terms of the Term Loan Documents as if the Liens of the ABL Facility
Security Agent under the ABL Facility Security Documents did not exist. The rights of the ABL Facility Security Agent shall at all times be subject to the terms of this Agreement and to the Term Loan Security Agent’s rights under the Term Loan
Documents. 
 (iii) The Term Loan Security Agent shall have no obligation whatsoever to any Term Loan Secured Party, the ABL
Facility Security Agent or any ABL Facility Secured Party to ensure that the Pledged Term Loan First Lien Collateral is genuine or owned by any of the Grantors or to preserve rights or benefits of any Person except as expressly set forth in this
Section 2.4(e). The duties or responsibilities of the Term Loan Security Agent under this Section 2.4(e) shall be limited solely to holding the Pledged Term Loan First Lien Collateral as bailee or agent in accordance with
this Section 2.4(e). 
 (iv) The Term Loan Security Agent acting pursuant to this Section 2.4(e)
shall not have by reason of the Term Loan Security Documents, the ABL Facility Documents, this Agreement or any other document a fiduciary relationship in respect of any Term Loan Secured Party, the ABL Facility Security Agent or any ABL Facility
Secured Party, and each of the foregoing hereby waives and releases the Term Loan Security Agent from all claims and liabilities arising pursuant to the Term Loan Security Agent’s role under this Section 2.4(e) as gratuitous bailee
and agent with respect to the Pledged Term Loan First Lien Collateral. 
 (v) Upon the Discharge of Term Loan Obligations,
the Term Loan Security Agent shall deliver or cause to be delivered the remaining Pledged Term Loan First Lien Collateral (if any) in its possession or in the possession of its agents or bailees, together with any necessary endorsements,
(I) first, to the ABL Facility Security Agent to the extent ABL Facility Obligations remain outstanding and (II) second, to the applicable Grantor to the extent no Term Loan Obligations or ABL Facility Obligations remain outstanding (in
each case, so as to allow such Person to obtain control of such Pledged Term Loan First Lien Collateral) and will cooperate with the ABL Facility Security Agent or such Grantor, as the case may be, in assigning (without recourse to or warranty by
the Term Loan Security Agent or any Term Loan Secured Party or agent or bailee thereof) control over any other Pledged Term Loan First Lien Collateral under its control. The Term Loan Security Agent further agrees to take all other action reasonably
requested by such Person (at the sole cost and expense of the Grantors or such Person) in connection with such Person obtaining a first priority interest in the Pledged Term Loan First Lien Collateral or as a court of competent jurisdiction may
otherwise direct. 

  
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 (vi) Notwithstanding anything to the contrary herein, if, for any reason, any ABL
Facility Obligations remain outstanding upon the Discharge of Term Loan Obligations, all rights of the Term Loan Security Agent hereunder and under the Term Loan Security Documents or the ABL Facility Security Documents (1) with respect to the
delivery and control of any part of the Term Loan First Lien Collateral, and (2) to direct, instruct, vote upon or otherwise influence the maintenance or disposition of such Term Loan First Lien Collateral, shall immediately, and (to the extent
permitted by law) without further action on the part of either of the ABL Facility Security Agent or the Term Loan Security Agent, pass to the ABL Facility Security Agent, who shall thereafter hold such rights for the benefit of the ABL Facility
Secured Parties. Each of the Term Loan Security Agent and the Grantors agrees that it will, if any ABL Facility Obligations remain outstanding upon the Discharge of Term Loan Obligations, take any other action required by any law or reasonably
requested by the ABL Facility Security Agent (subject to any limitations set forth in the ABL Facility Documents), in connection with the ABL Facility Security Agent’s establishment and perfection of a First Priority security interest in the
Term Loan First Lien Collateral. 
 (vii) Notwithstanding anything to the contrary contained herein, if for any reason, prior
to the Discharge of ABL Facility Obligations, the Term Loan Security Agent acquires possession of any Pledged ABL Facility First Lien Collateral, the Term Loan Security Agent shall hold same as bailee and/or agent to the same extent as is provided
in preceding clause (i) with respect to Pledged Term Loan First Lien Collateral, provided that as soon as is practicable the Term Loan Security Agent shall deliver or cause to be delivered such Pledged ABL Facility First Lien Collateral
to the ABL Facility Security Agent in a manner otherwise consistent with the requirements of preceding clause (v). 
 (f) When Discharge
of Term Loan Obligations Deemed to Not Have Occurred. Notwithstanding anything to the contrary herein, if concurrently with (or immediately after) the Discharge of Term Loan Obligations, any Borrower and/or any other Grantor enters into any
Permitted Refinancing of any Term Loan Obligations, then such Discharge of Term Loan Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement, and the obligations under the Permitted Refinancing shall
automatically be treated as Term Loan Obligations (together with the Term Loan Secured Hedging Agreements on the basis provided in the definition of “Term Loan Documents” contained herein) for all purposes of this Agreement, including for
purposes of the Lien priorities and rights in respect of Collateral set forth herein, the term “Term Loan Credit Agreement” shall be deemed appropriately modified to refer to such Permitted Refinancing and the Term Loan Security Agent
under such Term Loan Documents shall be a Term Loan Security Agent for all purposes hereof and the new secured parties under such Term Loan Documents (together with the Term Loan Hedging Creditors as provided herein) shall automatically be treated
as Term Loan Secured Parties for all purposes of this Agreement. Upon receipt of a notice stating that any Borrower and/or any other Grantor has entered into a new Term Loan Document in respect of a Permitted Refinancing of Term Loan Obligations
(which notice shall include the identity of the new security agent with respect to such Refinancing Indebtedness, such agent, the “New Term Loan Agent”), and delivery by the New Term Loan Agent of an Intercreditor Agreement Joinder
to each other Security Agent hereunder, the ABL Facility Security Agent shall promptly (i) enter into such documents and agreements (including amendments or supplements to this Agreement) as any Borrower or such New Term Loan Agent shall
reasonably request in order to provide to the New Term Loan Agent the rights contemplated hereby, in each case consistent in all material respects with the terms of this Agreement and (ii) deliver to the New Term Loan Agent any Pledged Term
Loan First Lien Collateral held by the ABL Facility Security Agent together with any necessary endorsements (or otherwise allow the New Term Loan Agent to obtain control of such Pledged Term Loan First Lien Collateral). The New Term Loan Agent shall
agree to be bound by the terms of this Agreement. If the new Term Loan Obligations under the new Term Loan Documents are secured by 

  
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assets of the Grantors of the type constituting Term Loan First Lien Collateral that do not also secure the ABL Facility Obligations, then the ABL Facility Obligations shall be secured at such
time by a Second Priority Lien on such assets to the same extent provided in the ABL Facility Security Documents with respect to the other Term Loan First Lien Collateral. If the new Term Loan Obligations under the new Term Loan Documents are
secured by assets of the Grantors of the type constituting ABL Facility First Lien Collateral that do not also secure the ABL Facility Obligations, then the ABL Facility Obligations shall be secured at such time by a First Priority Lien on such
assets to the same extent provided in the ABL Facility Security Documents with respect to the other ABL Facility First Lien Collateral. 

(g) Option to Purchase Term Loan Obligations. (i) Without prejudice to the enforcement of remedies by the Term Loan Security Agent
and the Term Loan Secured Parties, any Person or Persons (in each case who must meet all eligibility standards contained in all relevant Term Loan Documents) at any time or from time to time designated by the holders of more than 50% in aggregate
outstanding principal amount of the ABL Facility Obligations under the ABL Facility Credit Agreement (an “Eligible ABL Facility Purchaser”) shall have the right to purchase by way of assignment (and shall thereby also assume all
commitments and duties of the Term Loan Secured Parties), at any time during the exercise period described in clause (iii) below of this Section 2.4(g), all, but not less than all, of the Term Loan Obligations (other than the Term
Loan Obligations of a Defaulting Term Loan Secured Party), including all principal of and accrued and unpaid interest and fees on and all prepayment or acceleration penalties and premiums in respect of all Term Loan Obligations outstanding at the
time of purchase; provided that at the time of (and as a condition to) any purchase pursuant to this Section 2.4(g), all commitments pursuant to any then outstanding Term Loan Credit Agreement shall have terminated and all Term
Loan Secured Hedging Agreements also shall have been terminated in accordance with their terms. Any purchase pursuant to this Section 2.4(g)(i) shall be made as follows: 

(1) for a purchase price equal to the sum of (A) in the case of all loans, advances or other similar extensions of credit
that constitute Term Loan Obligations, 100% of the principal amount thereof and all accrued and unpaid interest thereon through the date of purchase (without regard, however, to any acceleration or other prepayment penalties or premiums other
than customary breakage costs), (B) in the case of any Term Loan Secured Hedging Agreement, the aggregate amount then owing to each Term Loan Hedging Creditor (which is a Term Loan Secured Party) thereunder pursuant to the terms of the
respective Term Loan Secured Hedging Agreement, including, without limitation, all amounts owing to such Term Loan Hedging Creditor as a result of the termination (or early termination) thereof (in each case, to the extent of its interest as a Term
Loan Secured Party) and (C) all accrued and unpaid fees, expenses, indemnities and other amounts (other than any prepayment penalties or premiums or similar fees) through the date of purchase; 

(2) with the purchase price described in preceding clause (i)(1) payable in cash on the date of purchase against transfer to
the respective Eligible ABL Facility Purchaser or Eligible ABL Facility Purchasers (without recourse and without any representations or warranties whatsoever, whether as to the enforceability of any Term Loan Obligation or the validity,
enforceability, perfection, priority or sufficiency of any Lien securing, or guarantee or other supporting obligation for, any Term Loan Obligation or as to any other matter whatsoever, except the representations and warranties (1) that the
transferor owns free and clear of all Liens and encumbrances (other than participation interests not prohibited by the Term Loan Credit Agreement, in which case the purchase price described in preceding clause (i)(1) shall be appropriately adjusted
so that the Eligible ABL Facility Purchaser or Eligible ABL Facility Purchasers do not pay amounts represented by any participation interest which remains in effect), and has the right to convey, whatever claims and interests it may have in respect
of the Term Loan Obligations and (2) as to the amount of its portion of the Term Loan Obligations being acquired); 

  
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 (3) with the purchase price described in preceding clause (i)(1) accompanied by a
waiver by the ABL Facility Security Agent (on behalf of itself and the other ABL Facility Secured Parties) of all claims arising out of this Agreement and the transactions contemplated hereby as a result of exercising the purchase option
contemplated by this Section 2.4(g); 
 (4) with all amounts payable to the various Term Loan Secured Parties in
respect of the assignments described above to be distributed to them by the Term Loan Security Agent in accordance with their respective holdings of the various Term Loan Obligations; and 

(5) with such purchase to be made pursuant to assignment documentation in form and substance reasonably satisfactory to, and
prepared by counsel for, the Term Loan Security Agent (with the cost of such counsel to be paid by the Grantors or, if the Grantors do not make such payment, by the respective Eligible ABL Facility Purchaser or Eligible ABL Facility Purchasers, who
shall have the right to obtain reimbursement of same from the Grantors); it being understood and agreed that the Term Loan Security Agent and each other Term Loan Secured Party shall retain all rights to indemnification as provided in the relevant
Term Loan Documents for all periods prior to any assignment by them pursuant to the provisions of this Section 2.4(g). 

(ii) The right to exercise the purchase option described in Section 2.4(g)(i) above shall be exercisable and
legally enforceable upon at least ten (10) Business Days’ prior written notice of exercise (which notice, once given, (A) shall be irrevocable and fully binding on the respective Eligible ABL Facility Purchaser or Eligible ABL
Facility Purchasers except as provided in clause (iii) below and (B) shall specify a date of purchase not less than five (5) Business Days, nor more than thirty (30) calendar days, after the date of the receipt by the Term Loan
Security Agent of such notice) given to the Term Loan Security Agent by an Eligible ABL Facility Purchaser. Neither the Term Loan Security Agent nor any Term Loan Secured Party shall have any disclosure obligation to any Eligible Term Loan
Purchaser, the ABL Facility Security Agent or any ABL Facility Secured Party in connection with any exercise of such purchase option. 

(iii) The right to purchase the Term Loan Obligations as described in this Section 2.4(g) may be exercised (by
giving the irrevocable written notice described in preceding clause (ii)) during the period that (1) begins on the date occurring three Business Days after the first to occur of (x) the date of the acceleration of the final maturity of the
loans under the Term Loan Credit Agreement, (y) the occurrence of the final maturity of the loans under the Term Loan Credit Agreement or (z) the occurrence of an Insolvency or Liquidation Proceeding with respect to any Borrower or any
other Grantor which constitutes an event of default under the Term Loan Credit Agreement (in each case, so long as the acceleration, failure to pay amounts due at final maturity or such Insolvency or Liquidation Proceeding constituting an event of
default has not been rescinded or cured within 10 Business Days after any such event, and so long as any unpaid amounts constituting Term Loan Obligations remain owing); provided that if there is any failure to meet the condition described in
the proviso of preceding clause (i) hereof, the aforementioned date shall be extended until the first date upon which such condition is satisfied, and (2) ends on the 10th Business Day after the start of the period described in clause
(1) above. 
 (iv) The obligations of the Term Loan Secured Parties to sell their respective Term Loan Obligations under
this Section 2.4(g) are several and not joint and several. To the extent 

  
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any Term Loan Secured Party breaches its obligation to sell its Term Loan Obligations under this Section 2.4(g) (a “Defaulting Term Loan Secured Party”), nothing in
this Section 2.4(g) shall be deemed to require the Term Loan Security Agent or any Term Loan Secured Party to purchase such Defaulting Term Loan Secured Party’s Term Loan Obligations for resale to the holders of ABL Facility
Obligations and in all cases, the Term Loan Security Agent and each Term Loan Secured Party complying with the terms of this Section 2.4(g) shall not be deemed to be in default of this Agreement or otherwise be deemed liable for any
action or inaction of any Defaulting Term Loan Secured Party; provided that nothing in this clause (iv) shall require any Eligible ABL Facility Purchaser to purchase less than all of the Term Loan Obligations. 

(v) Each Grantor irrevocably consents to any assignment effected to one or more Eligible ABL Facility Purchasers pursuant to
this Section 2.4(g) (so long as they meet all eligibility standards contained in all relevant Term Loan Documents, other than obtaining the consent of any Grantor to an assignment to the extent required by such Term Loan Documents) for
purposes of all Term Loan Documents and hereby agrees that no further consent to any such assignment pursuant to this Section 2.4(g) from such Grantor shall be required. 

2.5. Insolvency or Liquidation Proceedings. 

(a) Finance and Sale Issues. Until the Discharge of Term Loan Obligations has occurred, if any Borrower or any other Grantor shall be
subject to any Insolvency or Liquidation Proceeding and the Term Loan Security Agent shall desire to permit the use of cash collateral (as such term is defined in Section 363(a) of the Bankruptcy Code) constituting Term Loan First Lien
Collateral or to permit any Borrower or any other Grantor to obtain financing, whether from the Term Loan Secured Parties or any other entity under Section 364 of the Bankruptcy Code or any similar Bankruptcy Law, that is secured by a lien that
is (i) senior or pari passu with the liens on the Term Loan First Lien Collateral securing the Term Loan Obligations, and (ii) junior to the liens on the ABL Facility First Lien Collateral securing the ABL Facility Obligations (each, a
“Term Loan DIP Financing”), then the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, agrees that it will not oppose or raise any objection to or contest (or join with or support any third party
opposing, objecting or contesting) such use of cash collateral constituting Term Loan First Lien Collateral or to the fact that the providers of such Term Loan DIP Financing may be granted Liens on the Collateral and will not request adequate
protection or any other relief in connection therewith (except, as expressly agreed by the Term Loan Security Agent or to the extent permitted by Section 2.5(c)) and, the ABL Facility Security Agent will subordinate its Liens in the Term
Loan First Lien Collateral to the Liens securing such Term Loan DIP Financing (and all interest and other obligations relating thereto); provided that (i) the ABL Facility Security Agent and the other ABL Facility Secured Parties retain
a Lien on the Collateral to secure the ABL Facility Obligations and, with respect to the ABL Facility First Lien Collateral only, with the same priority as existed prior to the commencement of the Insolvency or Liquidation Proceeding, (ii) to
the extent that the Term Loan Security Agent is granted adequate protection in the form of a Lien, the ABL Facility Security Agent is permitted to seek a Lien (without objection from the Term Loan Security Agent or any Term Loan Secured Party) on
Collateral arising after the commencement of the Insolvency or Liquidation Proceeding (so long as, with respect to Term Loan First Lien Collateral, such Lien is junior to the Liens securing such Term Loan DIP Financing and the Term Loan
Obligations), and (iii) the foregoing provisions of this Section 2.5(a) shall not prevent the ABL Facility Security Agent and the ABL Facility Secured Parties from objecting to any provision in any Term Loan DIP Financing relating
to any provision or content of a plan of reorganization or other plan of similar effect under any Debtor Relief Laws. The ABL Facility Security Agent, on behalf of the ABL Facility Secured Parties, agrees that it will not raise any objection or
oppose a sale or other disposition of any Term Loan First Lien Collateral free and clear of its Liens (subject to attachment of Proceeds with respect to the Second Priority Lien on the Term Loan First Lien Collateral in favor of the ABL Facility
Security Agent in the same 

  
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order and manner as otherwise set forth herein) or other claims under Section 363 of the Bankruptcy Code, except for any objection or opposition that could be asserted by any ABL Facility
Secured Party as an unsecured creditor in any such Insolvency or Liquidation Proceeding, if the Term Loan Secured Parties have consented to such sale or disposition of such assets; provided that the ABL Facility Security Agent and the other
ABL Facility Secured Parties shall be entitled to seek and exercise Credit Bid Rights in respect of any such sale or disposition. 
 (b)
Relief from the Automatic Stay. Until the Discharge of Term Loan Obligations has occurred, the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, agrees that none of them shall seek (or support any other
Person seeking) relief from the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of the Term Loan First Lien Collateral without the prior written consent of the Term Loan Security Agent. 

(c) Adequate Protection. The ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, agrees that none of
them shall contest (or support any other Person contesting) (i) any request by the Term Loan Security Agent or the Term Loan Secured Parties for adequate protection with respect to any Term Loan First Lien Collateral, (ii) so long as the
request of adequate protection is in the form of a replacement lien on the ABL Facility First Lien Collateral that is junior to the liens on the ABL Facility First Lien Collateral securing the ABL Facility Obligations, any request by the Term Loan
Security Agent or the Term Loan Secured Parties for adequate protection with respect to any ABL Facility First Lien Collateral or (iii) any objection by the Term Loan Security Agent or the Term Loan Secured Parties to any motion, relief, action
or proceeding based on the Term Loan Security Agent or the Term Loan Secured Parties claiming a lack of adequate protection with respect to the Term Loan First Lien Collateral. Notwithstanding the foregoing provisions in this
Section 2.5(c), in any Insolvency or Liquidation Proceeding, (A) if the Term Loan Secured Parties (or any subset thereof) are granted adequate protection in the form of additional collateral in the nature of assets constituting Term
Loan First Lien Collateral in connection with any Term Loan DIP Financing or use of cash collateral constituting Term Loan First Lien Collateral, then the ABL Facility Security Agent, on behalf of itself or any of the ABL Facility Secured Parties,
may seek or request adequate protection in the form of a Lien on such additional collateral, which Lien will be subordinated to the Liens securing the Term Loan Obligations and such Term Loan DIP Financing (and all obligations relating thereto) on
the same basis as the other Liens on Term Loan First Lien Collateral securing the ABL Facility Obligations are so subordinated to the Term Loan Obligations under this Agreement, and (B) in the event the ABL Facility Security Agent, on behalf of
itself and the ABL Facility Secured Parties, seeks or requests adequate protection in respect of Term Loan First Lien Collateral securing ABL Facility Obligations and such adequate protection is granted in the form of additional collateral in the
nature of assets constituting Term Loan First Lien Collateral, then the ABL Facility Security Agent, on behalf of itself or any of the ABL Facility Secured Parties, agrees that the Term Loan Security Agent shall also be granted a senior Lien on such
additional collateral as security for the Term Loan Obligations and for any such Term Loan DIP Financing and that any Lien on such additional collateral securing the ABL Facility Obligations shall be subordinated to the Liens on such collateral
securing the Term Loan Obligations and any such Term Loan DIP Financing (and all obligations relating thereto) and to any other Liens granted to the Term Loan Secured Parties as adequate protection on the same basis as the other Liens on Term Loan
First Lien Collateral securing the ABL Facility Obligations are so subordinated to such Term Loan Obligations under this Agreement. 
 (d)
No Waiver. Subject to the proviso in clause (ii) of Section 2.2(a), nothing contained herein shall prohibit or in any way limit the Term Loan Security Agent or any Term Loan Secured Party from objecting in any Insolvency or
Liquidation Proceeding or otherwise to any action taken by the ABL Facility Security Agent or any of the ABL Facility Secured Parties in respect of the Term Loan First Lien Collateral, including the seeking by the ABL Facility Security Agent or any
ABL 

  
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Facility Secured Party of adequate protection in respect thereof or the asserting by the ABL Facility Security Agent or any ABL Facility Secured Party of any of its rights and remedies under the
ABL Facility Documents or otherwise in respect thereof. 
 (e) Reorganization Securities. If, in any Insolvency or Liquidation
Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or similar dispositive restructuring plan, both on account of Term Loan
Obligations and on account of ABL Facility Obligations, then, to the extent the debt obligations distributed on account of the Term Loan Obligations and on account of the ABL Facility Obligations are secured by Liens upon the same property, the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with like effect to the Liens securing such debt obligations. 

(f) Post-Petition Interest. 

(i) Neither the ABL Facility Security Agent nor any ABL Facility Secured Party shall oppose or seek to challenge any claim by
the Term Loan Security Agent or any Term Loan Secured Party for allowance in any Insolvency or Liquidation Proceeding of Term Loan Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the Term Loan Secured
Party’s Lien on the Term Loan First Lien Collateral, without regard to the existence of the Lien of the ABL Facility Security Agent on behalf of the ABL Facility Secured Parties on the Term Loan First Lien Collateral. 

(ii) Neither the Term Loan Security Agent nor any other Term Loan Secured Party shall oppose or seek to challenge any claim by
the ABL Facility Security Agent or any ABL Facility Secured Party for allowance in any Insolvency or Liquidation Proceeding of ABL Facility Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the Lien of
the ABL Facility Security Agent on behalf of the ABL Facility Secured Parties on the Term Loan First Lien Collateral (after taking into account the Lien of the Term Loan Secured Parties on the Term Loan First Lien Collateral). 

(g) Waiver. The ABL Facility Security Agent, for itself and on behalf of the ABL Facility Secured Parties, waives any claim it may
hereafter have against any Term Loan Secured Party arising out of the election of any Term Loan Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code, and/or out of any cash collateral or financing arrangement or out of
any grant of a security interest in connection with the Term Loan First Lien Collateral in any Insolvency or Liquidation Proceeding. 
 2.6.
Reliance; Waivers; Etc. 
 (a) Reliance. Other than any reliance on the terms of this Agreement, the ABL Facility Security
Agent, on behalf of itself and the ABL Facility Secured Parties, acknowledges that it and such ABL Facility Secured Parties have (and by their acceptance of the benefits hereof, each of the ABL Facility Secured Parties acknowledge that they have),
independently and without reliance on the Term Loan Security Agent or any Term Loan Secured Party, and based on documents and information deemed by them appropriate, made their own credit analysis and decision to enter into the ABL Facility
Documents and be bound by the terms of this Agreement and they will continue to make their own credit decision in taking or not taking any action under the ABL Facility Credit Agreement or this Agreement. 

(b) No Warranties or Liability. The ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, acknowledges
and agrees (and by their acceptance of the benefits 

  
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hereof, each of the ABL Facility Secured Parties acknowledge and agree) that the Term Loan Security Agent and the Term Loan Secured Parties have made no express or implied representation or
warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Term Loan Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon. The Term
Loan Secured Parties will be entitled to manage and supervise their respective loans and extensions of credit under their respective Term Loan Documents in accordance with law and as they may otherwise, in their sole discretion, deem appropriate.
The Term Loan Security Agent and the Term Loan Secured Parties shall have no duty to the ABL Facility Security Agent or any of the ABL Facility Secured Parties to act or refrain from acting in a manner which allows, or results in, the occurrence or
continuance of an event of default or default under any agreements with any Borrower or any other Grantor (including the Term Loan Documents and the ABL Facility Documents), regardless of any knowledge thereof which they may have or be charged with.

 (c) No Waiver of Lien Priorities. 

(i) No right of the Term Loan Secured Parties, the Term Loan Security Agent or any of them to enforce any provision of this
Agreement or any Term Loan Document shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of any Borrower or any other Grantor or by any act or failure to act by any Term Loan Secured Party or the Term Loan
Security Agent, or by any noncompliance by any Person with the terms, provisions and covenants of this Agreement, any of the Term Loan Documents or any of the ABL Facility Documents, regardless of any knowledge thereof which the Term Loan Security
Agent or the Term Loan Secured Parties, or any of them, may have or be otherwise charged with. 
 (ii) Without in any way
limiting the generality of the foregoing paragraph (but subject to the rights of each Borrower and the other Grantors under the Term Loan Documents and subject to the provisions of Section 2.4(c)), the Term Loan Secured Parties, the Term
Loan Security Agent and any of them may, at any time and from time to time in accordance with the Term Loan Documents and/or applicable law, without the consent of, or notice to, the ABL Facility Security Agent or any ABL Facility Secured Party,
without incurring any liabilities to the ABL Facility Security Agent or any ABL Facility Secured Party and without impairing or releasing the Lien priorities and other benefits provided in this Agreement (even if any right of subrogation or other
right or remedy of the ABL Facility Security Agent or any ABL Facility Secured Party is affected, impaired or extinguished thereby) do any one or more of the following: 

(1) make loans and advances to any Grantor or issue, guaranty or obtain letters of credit for account of any Grantor or
otherwise extend credit to any Grantor, in any amount and on any terms, whether pursuant to a commitment or as a discretionary advance and whether or not any default or event of default or failure of condition is then continuing; 

(2) change the manner, place or terms of payment or change or extend the time of payment of, or amend, renew, exchange,
increase or alter, the terms of any of the Term Loan Obligations or any Lien on any Term Loan First Lien Collateral or guaranty thereof or any liability of any of any Borrower or any other Grantor, or any liability incurred directly or indirectly in
respect thereof (including any increase in or extension of the Term Loan Obligations, without any restriction as to the amount, tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend, modify or supplement in
any manner any Liens on the Term Loan First Lien Collateral held by the Term Loan Security Agent or any of the Term Loan Secured Parties, the Term Loan Obligations or any of the Term Loan Documents; 

  
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 (3) sell, exchange, realize upon, enforce or otherwise deal with in any manner
(subject to the terms hereof) and in any order any part of the Term Loan First Lien Collateral or any liability of any Borrower or any other Grantor to the Term Loan Secured Parties or the Term Loan Security Agent, or any liability incurred directly
or indirectly in respect thereof; 
 (4) settle or compromise any Term Loan Obligation or any other liability of any Borrower
or any other Grantor or any security therefor or any liability incurred directly or indirectly in respect thereof; and 
 (5)
exercise or delay in or refrain from exercising any right or remedy against any Borrower or any other Grantor or any other Person, elect any remedy and otherwise deal freely with any Borrower, any other Grantor or any Term Loan First Lien Collateral
and any security and any guarantor or any liability of any Borrower or any other Grantor to the Term Loan Secured Parties or any liability incurred directly or indirectly in respect thereof. 

(iii) The ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, also agrees that the Term Loan
Secured Parties and the Term Loan Security Agent shall have no liability to the ABL Facility Security Agent or any ABL Facility Secured Party, and the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, hereby
waives any claim against any Term Loan Secured Party or the Term Loan Security Agent, arising out of any and all actions which the Term Loan Secured Parties or the Term Loan Security Agent may take or permit or omit to take with respect to: 

(1) the Term Loan Documents (other than this Agreement); 

(2) the collection of the Term Loan Obligations; or 

(3) the foreclosure upon, or sale, liquidation or other disposition of, any Term Loan First Lien Collateral. 

Except as otherwise required by this Agreement, the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, and
each other ABL Facility Secured Party (by its acceptance of the benefit of the ABL Facility Documents), agrees that the Term Loan Secured Parties and the Term Loan Security Agent have no duty to the ABL Facility Security Agent or the ABL Facility
Secured Parties in respect of the maintenance or preservation of the Term Loan First Lien Collateral, the Term Loan Obligations or otherwise. 

(iv) The ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, and each other ABL Facility
Secured Party (by its acceptance of the benefit of the ABL Facility Documents), agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit
of, any marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law with respect to the Term Loan First Lien Collateral or any other similar rights a junior secured creditor may have under applicable
law. 
 (d) Obligations Unconditional. All rights, interests, agreements and obligations of the Term Loan Security Agent and the Term
Loan Secured Parties and the ABL Facility Security Agent and the ABL Facility Secured Parties, respectively, hereunder shall remain in full force and effect irrespective of: 

(i) any lack of validity or enforceability of any Term Loan Document or any ABL Facility Document; 

  
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 (ii) except as otherwise set forth in this Agreement, any change permitted
hereunder in the time, manner or place of payment of, or in any other terms of, all or any of the Term Loan Obligations or ABL Facility Obligations, or any amendment or waiver or other modification permitted hereunder, whether by course of conduct
or otherwise, of the terms of any Term Loan Document or any ABL Facility Document; 
 (iii) except as otherwise set forth in
this Agreement, any exchange of any security interest in any Term Loan First Lien Collateral or any amendment, waiver or other modification permitted hereunder, whether in writing or by course of conduct or otherwise, of all or any of the Term Loan
Obligations or ABL Facility Obligations; 
 (iv) the commencement of any Insolvency or Liquidation Proceeding in respect of
any Borrower or any other Grantor; or 
 (v) any other circumstances which otherwise might constitute a defense available to,
or a discharge of, any Borrower or any other Grantor in respect of the Term Loan Obligations, or of the ABL Facility Security Agent or any ABL Facility Secured Party in respect of this Agreement. 

 

	Section 3.	ABL Facility First Lien Collateral. 

 3.1. Lien Priorities. 

(a) Relative Priorities. Notwithstanding (i) the time, manner, order or method of grant, creation, attachment or perfection of any
Liens securing the Term Loan Obligations granted on the ABL Facility First Lien Collateral or of any Liens securing the ABL Facility Obligations granted on the ABL Facility First Lien Collateral, (ii) the validity or enforceability of the
security interests and Liens granted in favor of any Security Agent or any Secured Party on the ABL Facility First Lien Collateral, (iii) the date on which any ABL Facility Obligations or Term Loan Obligations are made or extended,
(iv) any provision of the UCC or any other applicable law, including any rule for determining priority thereunder or under any other law or rule governing the relative priorities of secured creditors, including with respect to real property or
fixtures, (v) any provision set forth in any ABL Facility Document or any Term Loan Document (other than this Agreement), (vi) the possession or control by any Security Agent or any Secured Party or any bailee of all or any part of any ABL
Facility First Lien Collateral as of the date hereof or otherwise, (vii) any failure by any ABL Facility Secured Party to perfect its security interests in the ABL Facility First Lien Collateral or (viii) any other circumstance whatsoever,
the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, hereby agrees that: 
 (i) any Lien on
the ABL Facility First Lien Collateral securing any ABL Facility Obligations now or hereafter held by or on behalf of the ABL Facility Security Agent or any ABL Facility Secured Party or any agent or trustee therefor, regardless of how acquired,
whether by grant, possession, statute, operation of law, subrogation or otherwise, shall be senior in all respects and prior to any Lien on the ABL Facility First Lien Collateral securing any of the Term Loan Obligations; and 

(ii) any Lien on the ABL Facility First Lien Collateral now or hereafter held by or on behalf of the Term Loan Security Agent
or any Term Loan Secured Party or any agent or trustee therefor regardless of how acquired, whether by grant, possession, statute, operation of law or court order, subrogation or otherwise, shall be junior and subordinate in all respects to all
Liens on the ABL Facility First Lien Collateral securing any ABL Facility Obligations. 

  
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 All Liens on the ABL Facility First Lien Collateral securing any ABL Facility Obligations shall be and remain
senior in all respects and prior to all Liens on the ABL Facility First Lien Collateral securing any Term Loan Obligations for all purposes, whether or not such Liens securing any ABL Facility Obligations are subordinated to any Lien securing any
other obligation of any Borrower, any other Grantor or any other Person (but only to the extent that such subordination is permitted pursuant to the terms of the ABL Facility Credit Agreement and the Term Loan Credit Agreement, or as contemplated in
Section 3.5). The parties hereto acknowledge and agree that it is their intent that the Term Loan Obligations (and the security therefor) constitute a separate and distinct class (and separate and distinct claims) from the ABL Facility
Obligations (and the security therefor). 
 (b) Prohibition on Contesting Liens. Each of the Term Loan Security Agent, for itself and
on behalf of each Term Loan Secured Party, and the ABL Facility Security Agent, for itself and on behalf of each ABL Facility Secured Party, agrees that it shall not (and hereby waives any right to) contest or support any other Person in contesting,
in any proceeding (including any Insolvency or Liquidation Proceeding), (i) the priority, validity, extent, perfection or enforceability of a Lien held by or on behalf of any of the ABL Facility Secured Parties in the ABL Facility First Lien
Collateral or by or on behalf of any of the Term Loan Secured Parties in the Term Loan First Lien Collateral, as the case may be, (ii) the validity or enforceability of any Term Loan Security Document (or any Term Loan Obligations thereunder)
or any ABL Facility Security Document (or any ABL Facility Obligations thereunder) or (iii) the relative rights and duties of the holders of the ABL Facility Obligations and the Term Loan Obligations granted and/or established in this
Agreement; provided that nothing in this Agreement shall be construed to prevent or impair the rights of either of the Security Agents or any Secured Party to enforce this Agreement, including the priority of the Liens on the ABL Facility
First Lien Collateral securing the ABL Facility Obligations and the Term Loan Obligations as provided in Sections 3.1(a) and 3.2(a). 

(c) No New Liens. So long as the Discharge of ABL Facility Obligations has not occurred, except as contemplated by
Section 2.1(f) or Section 3.5(c), the parties hereto agree that no Borrower nor any other Grantor shall grant or permit any additional Liens on any asset or property of any Grantor to secure any Term Loan Obligation unless it
has granted or contemporaneously grants (i) a First Priority Lien on such asset or property to secure the ABL Facility Obligations if such asset or property constitutes ABL Facility First Lien Collateral or (ii) a Second Priority Lien on
such asset or property to secure the ABL Facility Obligations if such asset or property constitutes Term Loan First Lien Collateral. To the extent that the provisions of clause (i) in the immediately preceding sentence are not complied with for
any reason, without limiting any other rights and remedies available to the ABL Facility Security Agent and/or the ABL Facility Secured Parties, the Term Loan Security Agent, on behalf of Term Loan Secured Parties, agrees that any amounts received
by or distributed to any of them pursuant to or as a result of Liens on the ABL Facility First Lien Collateral granted in contravention of such clause (i) of this Section 3.1(c) shall be subject to Section 3.3. 

(d) Effectiveness of Lien Priorities. Each of the parties hereto acknowledges that the Lien priorities provided for in this Agreement
shall not be affected or impaired in any manner whatsoever, including, without limitation, on account of: (i) the invalidity, irregularity or unenforceability of all or any part of the ABL Facility Documents or the Term Loan Documents;
(ii) any amendment, change or modification of any ABL Facility Documents or Term Loan Documents not in contravention of the terms of this Agreement; or (iii) any impairment, modification, change, exchange, release or subordination of or
limitation on, any liability of, or stay of actions or lien enforcement proceedings against, Holdings or any of its Subsidiaries party to any of the ABL Facility Documents or 

  
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Term Loan Documents, its property, or its estate in bankruptcy resulting from any bankruptcy, arrangement, readjustment, composition, liquidation, rehabilitation, similar proceeding or otherwise
involving or affecting any Secured Party. 
 3.2. Exercise of Remedies. 

(a) So long as the Discharge of ABL Facility Obligations has not occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against any Borrower or any other Grantor: 
 (i) neither the Term Loan Security Agent nor any of the Term
Loan Secured Parties (x) will exercise or seek to exercise any rights or remedies (including, without limitation, setoff) with respect to any ABL Facility First Lien Collateral (including, without limitation, the exercise of any right under any
lockbox agreement, account control agreement, landlord waiver or bailee’s letter or similar agreement or arrangement in respect of ABL Facility First Lien Collateral to which the Term Loan Security Agent or any Term Loan Secured Party is a
party) or institute or commence, or join with any Person (other than the ABL Facility Security Agent and the ABL Facility Secured Parties) in commencing any action or proceeding with respect to such rights or remedies (including any action of
foreclosure), enforcement, collection or execution; provided, however, that the Term Loan Security Agent may exercise any or all such rights in accordance with the Term Loan Documents after the passage of a period of 180 days from the
date of delivery of a notice in writing to the ABL Facility Security Agent of the Term Loan Security Agent’s intention to exercise its right to take such actions (the “Term Loan Standstill Period”); provided,
further, however, notwithstanding anything herein to the contrary, neither the Term Loan Security Agent nor any Term Loan Secured Party will exercise any rights or remedies with respect to any ABL Facility First Lien Collateral if,
notwithstanding the expiration of the Term Loan Standstill Period, the ABL Facility Security Agent or ABL Facility Secured Parties shall have commenced and be diligently pursuing in good faith the exercise of any of their rights or remedies with
respect to a material portion of the ABL Facility First Lien Collateral (prompt notice of such exercise to be given to the Term Loan Security Agent, it being understood and agreed that any failure to provide such notice shall not impair any of the
ABL Facility Security Agent’s or the ABL Facility Secured Parties’ rights hereunder), (y) will contest, protest or object to any foreclosure proceeding or action brought by the ABL Facility Security Agent or any ABL Facility Secured
Party with respect to, or any other exercise by the ABL Facility Security Agent or any ABL Facility Secured Party of any rights and remedies relating to, the ABL Facility First Lien Collateral under the ABL Facility Documents or otherwise, and
(z) subject to its rights under clause (i)(x) above, will object to the forbearance by the ABL Facility Security Agent or the ABL Facility Secured Parties from bringing or pursuing any foreclosure proceeding or action or any other exercise of
any rights or remedies relating to the ABL Facility First Lien Collateral, in each case so long as the respective interests of the Term Loan Secured Parties attach to the Proceeds thereof subject to the relative priorities described in
Section 3.1; provided, however, that nothing in this Section 3.2(a) shall be construed to authorize the Term Loan Security Agent or any Term Loan Secured Party to sell any ABL Facility First Lien Collateral free
of the Lien of the ABL Facility Security Agent or any ABL Facility Secured Party; and 
 (ii) subject to clause (i)(x) above,
the ABL Facility Security Agent and the ABL Facility Secured Parties shall have the exclusive right to enforce rights, exercise remedies (including set off and the right to credit bid their debt) and make determinations regarding the disposition of,
or restrictions with respect to, the ABL Facility First Lien Collateral without any consultation with or the consent of the Term Loan Security Agent or any Term Loan Secured Party; provided, that: 

(1) in any Insolvency or Liquidation Proceeding commenced by or against Holdings, any Borrower or any other Grantor, the Term
Loan Security Agent and any Term Loan Secured Party may file a claim or statement of interest with respect to the ABL Facility Obligations; 

  
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 (2) the Term Loan Security Agent and any Term Loan Secured Party may take any
action (not adverse to the priority status of the Liens on the ABL Facility First Lien Collateral securing the ABL Facility Obligations, or the rights of any ABL Facility Security Agent or the ABL Facility Secured Parties to exercise remedies in
respect thereof) in accordance with the Term Loan Documents in order to preserve or protect its Lien on the ABL Facility First Lien Collateral; 

(3) the Term Loan Secured Parties shall be entitled to file any necessary responsive or defensive pleadings in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the Term Loan Secured Parties, including without limitation any claims secured by the ABL Facility First
Lien Collateral, if any, in each case in accordance with the terms of this Agreement; 
 (4) the Term Loan Secured Parties
shall be entitled to file any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors of the Grantors arising under either the Bankruptcy Law or applicable non-bankruptcy law, in each case in
accordance with the terms of this Agreement and to the extent not prohibited by any other provision of this Agreement; 
 (5)
the Term Loan Secured Parties shall be entitled to vote on any plan of reorganization and file any proof of claim in an Insolvency or Liquidation Proceeding or otherwise and other filings and make any arguments and motions that are, in each case, in
accordance with the terms of this Agreement, with respect to the ABL Facility First Lien Collateral; and 
 (6) the Term Loan
Security Agent or any Term Loan Secured Party may exercise any of its rights or remedies with respect to the ABL Facility First Lien Collateral in accordance with the Term Loan Documents after the termination of the Term Loan Standstill Period to
the extent permitted by clause (i)(x) above. 
 Subject to clause (i)(x) above, in exercising rights and remedies with respect to the ABL Facility First
Lien Collateral, the ABL Facility Security Agent and the ABL Facility Secured Parties may enforce the provisions of the ABL Facility Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in the
exercise of their sole discretion. Such exercise and enforcement shall include the rights of an agent appointed by them to sell or otherwise dispose of ABL Facility First Lien Collateral upon foreclosure, to incur expenses in connection with such
sale or disposition, and to exercise all the rights and remedies of a secured creditor under the UCC and of a secured creditor under any other applicable law. 

(b) The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, agrees that it will not take or receive any ABL
Facility First Lien Collateral or any Proceeds of ABL Facility First Lien Collateral in connection with the exercise of any right or remedy (including setoff) with respect to any ABL Facility First Lien Collateral unless and until the Discharge of
ABL Facility Obligations has occurred, except as expressly provided in the first proviso in clause (i)(x) of Section 3.2(a) or in the proviso in clause (ii) of Section 3.2(a). Without limiting the generality of the

  
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foregoing, unless and until the Discharge of ABL Facility Obligations has occurred, except as expressly provided in the first proviso in clause (i)(x) of Section 3.2(a) or in the
proviso in clause (ii) of Section 3.2(a), the sole right of the Term Loan Security Agent and the Term Loan Secured Parties with respect to the ABL Facility First Lien Collateral is to hold a Lien on the ABL Facility First Lien
Collateral pursuant to the Term Loan Documents for the period and to the extent granted therein and to receive a share of the Proceeds thereof, if any, after the Discharge of ABL Facility Obligations has occurred in accordance with the terms hereof,
the Term Loan Documents and applicable law. 
 (c) Subject to the first proviso in clause (i)(x) of Section 3.2(a), the proviso
in clause (ii) of Section 3.2(a): 
 (i) the Term Loan Security Agent, for itself and on behalf of the Term
Loan Secured Parties, agrees that the Term Loan Security Agent and the Term Loan Secured Parties will not take any action that would hinder, delay, limit or prohibit any exercise of remedies under the ABL Facility Documents with respect to the ABL
Facility First Lien Collateral, including any collection, sale, lease, exchange, transfer or other disposition of the ABL Facility First Lien Collateral, whether by foreclosure or otherwise, or that would limit, invalidate, avoid or set aside any
Lien or ABL Facility Security Document with respect to the ABL Facility First Lien Collateral or subordinate the priority of the ABL Facility Obligations to the Term Loan Obligations with respect to the ABL Facility First Lien Collateral or grant
the Liens with respect to the ABL Facility First Lien Collateral securing the Term Loan Obligations equal ranking to the Liens with respect to the ABL Facility First Lien Collateral securing the ABL Facility Obligations, and 

(ii) the Term Loan Security Agent, for itself and on behalf of the Term Loan Secured Parties, hereby waives any and all rights
it or the Term Loan Secured Parties may have as a junior lien creditor with respect to the ABL Facility First Lien Collateral or otherwise to object to the manner in which the ABL Facility Security Agent or the ABL Facility Secured Parties seek to
enforce or collect the ABL Facility Obligations or the Liens granted in any of the ABL Facility First Lien Collateral, in any such case except to the extent such enforcement or collection is in violation of the terms of this Agreement, regardless of
whether any action or failure to act by or on behalf of the ABL Facility Security Agent or ABL Facility Secured Parties is adverse to the interest of the Term Loan Secured Parties. 

(d) The Term Loan Security Agent hereby acknowledges and agrees that no covenant, agreement or restriction contained in any Term Loan Document
(other than this Agreement) shall be deemed to restrict in any way the rights and remedies of the ABL Facility Security Agent or the ABL Facility Secured Parties with respect to the ABL Facility First Lien Collateral as set forth in this Agreement
and the ABL Facility Documents. 
 3.3. Payments Over. 

So long as the Discharge of ABL Facility Obligations has not occurred, any ABL Facility First Lien Collateral, Cash Proceeds thereof or non-cash Proceeds
constituting ABL Facility First Lien Collateral (or any distribution in respect of the ABL Facility First Lien Collateral, whether or not expressly characterized as such) received by the Term Loan Security Agent or any Term Loan Secured Party in
connection with the exercise of any right or remedy (including set off) relating to the ABL Facility First Lien Collateral or otherwise that is inconsistent with this Agreement shall be segregated and held in trust and forthwith paid over to the ABL
Facility Security Agent, for the benefit of the ABL Facility Secured Parties, for application in accordance with Section 5.2 below, in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may
otherwise direct. The ABL Facility 

  
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Security Agent is hereby authorized to make any such endorsements as agent for the Term Loan Security Agent or any such Term Loan Secured Parties. This authorization is coupled with an interest
and is irrevocable until the Discharge of ABL Facility Obligations. 
 3.4. Other Agreements. 

(a) Releases. 

(i) If, in connection with: 

(1) the exercise of any ABL Facility Security Agent’s remedies in respect of the ABL Facility First Lien Collateral
provided for in any ABL Facility Document (with the Proceeds thereof being applied to the ABL Facility Obligations), including any sale, lease, exchange, transfer or other disposition of any such ABL Facility First Lien Collateral; or 

(2) any sale, lease, exchange, transfer or other disposition of any ABL Facility First Lien Collateral permitted under the
terms of the ABL Facility Documents and the Term Loan Documents (other than in connection with the Discharge of ABL Facility Obligations), 
 the ABL
Facility Security Agent, for itself or on behalf of any of the ABL Facility Secured Parties, releases any of its Liens on any part of the ABL Facility First Lien Collateral, then the Liens, if any, of the Term Loan Security Agent, for itself or for
the benefit of the Term Loan Secured Parties, on such ABL Facility First Lien Collateral (but not the Proceeds thereof, which shall be subject to the priorities set forth in this Agreement) shall be automatically, unconditionally and simultaneously
released and the Term Loan Security Agent, for itself or on behalf of any such Term Loan Secured Parties, promptly shall execute and deliver to the ABL Facility Security Agent or such Grantor such termination statements, releases and other documents
as the ABL Facility Security Agent or such Grantor may request to effectively confirm such release. 
 (ii) Until the
Discharge of ABL Facility Obligations occurs, the Term Loan Security Agent, for itself and on behalf of the Term Loan Secured Parties, hereby irrevocably constitutes and appoints the ABL Facility Security Agent and any officer or agent of the ABL
Facility Security Agent, with full power of substitution, as its true and lawful attorney in fact with full irrevocable power and authority in the place and stead of the Term Loan Security Agent or such holder or in the ABL Facility Security
Agent’s own name, from time to time in the ABL Facility Security Agent’s discretion, for the purpose of carrying out the terms of this Section 3.4(a) with respect to ABL Facility First Lien Collateral, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary to accomplish the purposes of this Section 3.4(a) with respect to ABL Facility First Lien Collateral, including any endorsements or other
instruments of transfer or release. 
 (iii) Until the Discharge of ABL Facility Obligations occurs, to the extent that the
ABL Facility Secured Parties (a) have released any Lien on ABL Facility First Lien Collateral and any such Lien is later reinstated or (b) obtain any new First Priority Liens on assets constituting ABL Facility First Lien Collateral from
Grantors, then the Term Loan Secured Parties shall be granted a Second Priority Lien on any such ABL Facility First Lien Collateral. 

(iv) If, prior to the Discharge of ABL Facility Obligations, a subordination of the ABL Facility Security Agent’s Lien on
any ABL Facility First Lien Collateral is permitted under the ABL Facility Credit Agreement and the Term Loan Credit Agreement to another Lien permitted under the ABL Facility Credit Agreement and the Term Loan Credit Agreement (an

  
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“ABL Facility Collateral Priority Lien”), then the ABL Facility Security Agent is authorized to execute and deliver a subordination agreement with respect thereto in form and
substance satisfactory to it, and the Term Loan Security Agent, for itself and on behalf of the Term Loan Secured Parties, shall promptly execute and deliver to the ABL Facility Security Agent an identical subordination agreement subordinating the
Liens of the Term Loan Security Agent for the benefit of (and behalf of) the Term Loan Secured Parties to such ABL Facility Collateral Priority Lien. 

(b) Insurance. Unless and until the Discharge of ABL Facility Obligations has occurred, the ABL Facility Security Agent and the ABL
Facility Secured Parties shall have the sole and exclusive right, subject to the rights of the Grantors under the ABL Facility Documents, to adjust settlement for any Insurance policy covering the ABL Facility First Lien Collateral in the event of
any loss thereunder and to approve any award granted in any condemnation or similar proceeding (or any deed in lieu of condemnation) in respect of the ABL Facility First Lien Collateral; provided that, if any Insurance claim
includes both ABL Facility First Lien Collateral and Term Loan First Lien Collateral, the insurer will not settle such claim separately with respect to ABL Facility First Lien Collateral and Term Loan First Lien Collateral, and if the Security
Agents are unable after negotiating in good faith to agree on the settlement for such claim, either Security Agent may apply to a court of competent jurisdiction to make a determination as to the settlement of such claim, and the court’s
determination shall be binding upon the parties. If the Term Loan Security Agent or any Term Loan Secured Party shall, at any time, receive any Proceeds of any such Insurance policy or any such award or payment in contravention of this
Section 3.4(b), it shall pay such Proceeds over to the ABL Facility Security Agent in accordance with the terms of Section 5.1(c). 

(c) Amendments to, and Refinancing of, Term Loan Documents. 

(i) Subject to the ABL Facility Credit Agreement (as in effect on the date hereof), the Term Loan Documents may be amended,
restated, amended and restated, replaced, supplemented or otherwise modified in accordance with their terms and the Term Loan Documents may be Refinanced, in each case, without notice to, or the consent of, the ABL Facility Security Agent or the
other ABL Facility Secured Parties (but subject to the requirements of the immediately following sentence and of Section 2.4(f) above), all without affecting the lien subordination or other provisions of this Agreement. The Term Loan
Documents may be Refinanced to the extent the terms and conditions of such Refinancing Indebtedness meet the requirements of each Credit Agreement and the holders of such Refinancing Indebtedness bind themselves in a writing addressed to the ABL
Facility Security Agent and the ABL Facility Secured Parties to the terms of this Agreement; provided that if such Refinancing Indebtedness is secured by a Lien on any Collateral the holders of such Refinancing Indebtedness shall be deemed
bound by the terms hereof regardless of whether or not any such writing is provided. 
 (ii) The Grantors agree that each
Term Loan Security Document shall include the following language (with any necessary modifications to give effect to applicable definitions) (or language to similar effect approved by the ABL Facility Security Agent): 

“Notwithstanding anything herein to the contrary, the liens and security interests granted to the Term Loan Security Agent pursuant to
this Agreement in any ABL Facility First Lien Collateral and the exercise of any right or remedy by the Term Loan Security Agent with respect to any ABL Facility First Lien Collateral hereunder are subject to the provisions of the Intercreditor
Agreement, dated as of August 19, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among PC Intermediate Holdings, Inc., a Delaware corporation, Party City

  
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Holdings Inc., a Delaware corporation, Party City Corporation, a Delaware corporation, the other Grantors from time to time party thereto, JPMorgan Chase Bank, N.A. (“JPM”), as
ABL Facility Security Agent, Deutsche Bank AG New York Branch (“DBNY”), as Term Loan Security Agent, and certain other Persons party or that may become party thereto from time to time. In the event of any conflict between the terms
of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall govern and control.” 

(iii) In the event any ABL Facility Security Agent or any ABL Facility Secured Party and the relevant Grantor enter into any
amendment, waiver or consent in respect of any of the ABL Facility Security Documents for the purpose of adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any ABL Facility Security Document or changing
in any manner the rights of the ABL Facility Security Agent, such ABL Facility Secured Parties, any Borrower or any other Grantor thereunder, in each case with respect to or relating to the ABL Facility First Lien Collateral, then such amendment,
waiver or consent shall apply automatically to any comparable provision of the Comparable Term Loan Security Document without the consent of the Term Loan Security Agent or the Term Loan Secured Parties and without any action by the Term Loan
Security Agent, any Borrower or any other Grantor, provided, that (A) no such amendment, waiver or consent shall have the effect of (i) removing assets that constitute ABL Facility First Lien Collateral subject to the Lien of the
Term Loan Security Documents, except to the extent that a release of such Lien is permitted or required by Section 3.4(a) and provided that there is a corresponding release of such Lien securing the ABL Facility Obligations,
(ii) imposing duties on the Term Loan Security Agent without its consent or (iii) permitting other liens on the ABL Facility First Lien Collateral not permitted under the terms of the Term Loan Documents or Section 3.5 and
(B) notice of such amendment, waiver or consent shall have been given to the Term Loan Security Agent within ten (10) Business Days after the effective date of such amendment, waiver or consent (although the failure to give any such notice
shall in no way affect the effectiveness of any such amendment, waiver or consent). 
 (iv) The ABL Facility Security Agent
shall endeavor to give prompt notice of any amendment, waiver or consent of a ABL Facility Document to the Term Loan Security Agent after the effective date of such amendment, waiver or consent; provided, that the failure of the ABL Facility
Security Agent to give any such notice shall not affect the priority of the ABL Facility Security Agent’s Liens as provided herein or the validity or effectiveness of any such notice as against the Grantors or any of their Subsidiaries. 

(d) Rights As Unsecured Creditors. Except as otherwise set forth in this Agreement, the Term Loan Security Agent and the Term Loan
Secured Parties may exercise rights and remedies as unsecured creditors against any Borrower or any other Grantor in accordance with the terms of the Term Loan Documents to which it is a party and applicable law. Except as otherwise set forth in
this Agreement, nothing in this Agreement shall prohibit the receipt by the Term Loan Security Agent or any Term Loan Secured Party of the required payments of interest, principal and other amounts in respect of the Term Loan Obligations so long as
such receipt is not the direct or indirect result of the exercise by the Term Loan Security Agent or any Term Loan Secured Party of rights or remedies as a secured creditor (including set off) in respect of the ABL Facility First Lien Collateral in
contravention of this Agreement or enforcement in contravention of this Agreement of any Lien held by any of them. In the event the Term Loan Security Agent or any other Term Loan Secured Party becomes a judgment lien creditor in respect of any ABL
Facility First Lien Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subordinated to the Liens securing ABL Facility Obligations on the same basis as the other Liens on the ABL Facility
First Lien Collateral securing the 

  
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Term Loan Obligations are so subordinated to such ABL Facility Obligations under this Agreement. Nothing in this Agreement impairs or otherwise adversely affects any rights or remedies the ABL
Facility Security Agent or the other ABL Facility Secured Parties may have with respect to the ABL Facility First Lien Collateral. 
 (e)
Bailee for Perfection. 
 (i) The ABL Facility Security Agent agrees to hold or control that part of the ABL Facility
First Lien Collateral that is in its possession or control (or in the possession or control of its agents or bailees) to the extent that possession or control thereof is taken to perfect a Lien thereon under the UCC or other applicable law (such ABL
Facility First Lien Collateral being the “Pledged ABL Facility First Lien Collateral”) as collateral agent for the ABL Facility Secured Parties and as bailee for and, with respect to any ABL Facility First Lien Collateral that
cannot be perfected in such manner, as agent for, the Term Loan Security Agent (on behalf of the Term Loan Secured Parties) and any assignee thereof solely for the purpose of perfecting the security interest granted under the ABL Facility Documents
and the Term Loan Documents, respectively, subject to the terms and conditions of this Section 3.4(e). 
 (ii)
Subject to the terms of this Agreement, until the Discharge of ABL Facility Obligations has occurred, the ABL Facility Security Agent shall be entitled to deal with the Pledged ABL Facility First Lien Collateral in accordance with the terms of the
ABL Facility Documents as if the Liens of the Term Loan Security Agent under the Term Loan Security Documents did not exist. The rights of the Term Loan Security Agent shall at all times be subject to the terms of this Agreement and to the ABL
Facility Security Agent’s rights under the ABL Facility Documents. 
 (iii) The ABL Facility Security Agent shall have
no obligation whatsoever to any ABL Facility Secured Party, the Term Loan Security Agent or any Term Loan Secured Party to ensure that the Pledged ABL Facility First Lien Collateral is genuine or owned by any of the Grantors or to preserve rights or
benefits of any Person except as expressly set forth in this Section 3.4(e). The duties or responsibilities of the ABL Facility Security Agent under this Section 3.4(e) shall be limited solely to holding the Pledged ABL
Facility First Lien Collateral as bailee or agent in accordance with this Section 3.4(e). 
 (iv) The ABL
Facility Security Agent acting pursuant to this Section 3.4(e) shall not have by reason of the ABL Facility Security Documents, the Term Loan Security Documents, this Agreement or any other document a fiduciary relationship in respect of
any ABL Facility Secured Party, the Term Loan Security Agent or any Term Loan Secured Party, and each of the foregoing hereby waives and releases the ABL Facility Security Agent from all claims and liabilities arising pursuant to the ABL Facility
Security Agent’s role under this Section 3.4(e) as gratuitous bailee and agent with respect to the Pledged ABL Facility First Lien Collateral. 

(v) Upon the Discharge of ABL Facility Obligations, the ABL Facility Security Agent shall deliver or cause to be delivered the
remaining Pledged ABL Facility First Lien Collateral (if any) in its possession or in the possession of its agents or bailees, together with any necessary endorsements, (I) first, to the Term Loan Security Agent to the extent Term Loan
Obligations remain outstanding and (II) second, to the applicable Grantor to the extent no ABL Facility Obligations or Term Loan Obligations remain outstanding (in each case, so as to allow such Person to obtain control of such Pledged ABL
Facility First Lien Collateral) and will cooperate with the Term Loan Security Agent or such Grantor, as the case may be, in assigning (without recourse to or warranty by the ABL Facility Security Agent or any ABL Facility

  
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Secured Party or agent or bailee thereof) control over any other Pledged ABL Facility First Lien Collateral under its control. The ABL Facility Security Agent further agrees to take all other
action reasonably requested by such Person (at the sole cost and expense of the Grantors or such Person) in connection with such Person obtaining a first priority interest in the Pledged ABL Facility First Lien Collateral or as a court of competent
jurisdiction may otherwise direct. 
 (vi) Notwithstanding anything to the contrary herein, if, for any reason, any Term Loan
Obligations remain outstanding upon the Discharge of ABL Facility Obligations, all rights of the ABL Facility Security Agent hereunder and under the Term Loan Security Documents or the ABL Facility Security Documents (1) with respect to the
delivery and control of any part of the ABL Facility First Lien Collateral, and (2) to direct, instruct, vote upon or otherwise influence the maintenance or disposition of such ABL Facility First Lien Collateral, shall immediately, and (to the
extent permitted by law) without further action on the part of either of the Term Loan Security Agent or the ABL Facility Security Agent, pass to the Term Loan Security Agent, who shall thereafter hold such rights for the benefit of the Term Loan
Secured Parties. Each of the ABL Facility Security Agent and the Grantors agrees that it will, if any Term Loan Obligations remain outstanding upon the Discharge of ABL Facility Obligations, take any other action required by any law or reasonably
requested by the Term Loan Security Agent (subject to any limitations set forth in the Term Loan Facility Documents), in connection with the Term Loan Security Agent’s establishment and perfection of a First Priority security interest in the
ABL Facility First Lien Collateral. 
 (vii) Notwithstanding anything to the contrary contained herein, if for any reason,
prior to the Discharge of Term Loan Obligations, the ABL Facility Security Agent acquires possession of any Pledged Term Loan First Lien Collateral, the ABL Facility Security Agent shall hold same as bailee and/or agent to the same extent as is
provided in preceding clause (i) with respect to Pledged ABL Facility First Lien Collateral, provided that as soon as is practicable the ABL Facility Security Agent shall deliver or cause to be delivered such Pledged Term Loan First Lien
Collateral to the Term Loan Security Agent in a manner otherwise consistent with the requirements of preceding clause (v). 
 (f) When
Discharge of ABL Facility Obligations Deemed to Not Have Occurred. Notwithstanding anything to the contrary herein, if concurrently with (or immediately after) the Discharge of ABL Facility Obligations, any Borrower and/or any other Grantor
enters into any Permitted Refinancing of any ABL Facility Obligations, then such Discharge of ABL Facility Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement, and the obligations under the Permitted
Refinancing shall automatically be treated as ABL Facility Obligations (together with the ABL Facility Bank Product Agreements and ABL Facility Secured Hedging Agreements on the basis provided in the definition of “ABL Loan Documents”
contained herein) for all purposes of this Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set forth herein, the term “ABL Facility Credit Agreement” shall be deemed appropriately modified to
refer to such Permitted Refinancing and the ABL Facility Security Agent under such ABL Facility Documents shall be a ABL Facility Security Agent for all purposes hereof and the new secured parties under such ABL Facility Documents (together with the
ABL Facility Bank Product Creditors and ABL Secured Hedging Creditors as provided herein) shall automatically be treated as ABL Facility Secured Parties for all purposes of this Agreement. Upon receipt of a notice stating that any Borrower and/or
any other Grantor has entered into a new ABL Facility Document in respect of a Permitted Refinancing of ABL Facility Obligations (which notice shall include the identity of the new agent with respect to such Refinancing Indebtedness, such agent, the
“New ABL Facility Security Agent”), and delivery by the New ABL Facility Security Agent of an Intercreditor Agreement Joinder to each other Security Agent hereunder, the Term Loan Security Agent shall promptly (i) enter into
such documents and agreements 

  
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(including amendments or supplements to this Agreement) as any Borrower or such New ABL Facility Security Agent shall reasonably request in order to provide to the New ABL Facility Security Agent
the rights contemplated hereby, in each case consistent in all material respects with the terms of this Agreement and (ii) deliver to the New ABL Facility Security Agent any Pledged ABL Facility First Lien Collateral held by the Term Loan
Security Agent together with any necessary endorsements (or otherwise allow the New ABL Facility Security Agent to obtain control of such Pledged ABL Facility First Lien Collateral). The New ABL Facility Security Agent shall agree to be bound by the
terms of this Agreement. If the new ABL Facility Obligations under the new ABL Facility Documents are secured by assets of the Grantors of the type constituting ABL Facility First Lien Collateral that do not also secure the Term Loan Obligations,
then the Term Loan Obligations shall be secured at such time by a Second Priority Lien on such assets to the same extent provided in the Term Loan Security Documents with respect to the other ABL Facility First Lien Collateral. If the new ABL
Facility Obligations under the new ABL Facility Documents are secured by assets of the Grantors of the type constituting Term Loan First Lien Collateral that do not also secure the Term Loan Obligations, then the Term Loan Obligations shall be
secured at such time by a First Priority Lien on such assets to the same extent provided in the Term Loan Security Documents with respect to the other Term Loan First Lien Collateral. 

(g) Option to Purchase ABL Facility Obligations. 

(i) Without prejudice to the enforcement of remedies by the ABL Facility Security Agent and the ABL Facility Secured Parties,
any Person or Persons (in each case who must meet all eligibility standards contained in all relevant ABL Facility Documents) at any time or from time to time designated by the holders of more than 50% in aggregate outstanding principal amount of
the Term Loan Obligations under the Term Loan Credit Agreement (an “Eligible Term Loan Purchaser”) shall have the right to purchase by way of assignment (and shall thereby also assume all commitments and duties of the ABL Facility
Secured Parties other than in respect of services giving rise to ABL Facility Bank Product Obligations), at any time during the exercise period described in clause (iii) below of this Section 3.4(g), all, but not less than all, of
the ABL Facility Obligations (other than the ABL Facility Obligations of a Defaulting ABL Facility Secured Party), including all principal of and accrued and unpaid interest and fees on and all prepayment or acceleration penalties and premiums in
respect of all ABL Facility Obligations outstanding at the time of purchase; provided that at the time of (and as a condition to) any purchase pursuant to this Section 3.4(g), all commitments pursuant to any then outstanding ABL
Facility Credit Agreement shall have terminated and all ABL Facility Secured Hedging Agreements and ABL Facility Bank Product Agreements also shall have been terminated in accordance with their terms. Any purchase pursuant to this
Section 3.4(g)(i) shall be made as follows: 
 (1) for (x) a purchase price equal to the sum of (A) in the case of all
loans, advances or other similar extensions of credit that constitute ABL Facility Obligations (including unreimbursed amounts drawn in respect of letters of credit, but excluding the undrawn amount of then outstanding letters of credit and
excluding ABL Facility Bank Product Obligations), 100% of the principal amount thereof and all accrued and unpaid interest thereon through the date of purchase (without regard, however, to any acceleration or other prepayment penalties or
premiums other than customary breakage costs), (B) in the case of any ABL Facility Bank Product Obligations, cash collateral in such amounts as the ABL Facility Security Agent reasonably determines is necessary to secure the ABL Facility
Security Agent and the other ABL Facility Secured Parties in connection with such ABL Facility Bank Product Obligations, (C) in the case of the undrawn amount of then outstanding letters of credit, cash collateral in the amount of 100% of the
aggregate undrawn amount of such letters of credit, (D) in the case of any ABL Facility Secured Hedging Agreement, the aggregate amount then owing to each ABL Facility Hedging Creditor 

  
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(which is an ABL Facility Secured Party) thereunder pursuant to the terms of the respective ABL Facility Secured Hedging Agreement, including, without limitation, all amounts owing to such ABL
Facility Hedging Creditor as a result of the termination (or early termination) thereof (in each case, to the extent of its interest as an ABL Facility Secured Party) and (E) all accrued and unpaid fees, expenses, indemnities and other amounts
(other than any prepayment penalties or premiums or similar fees) through the date of purchase; and (y) an obligation on the part of the respective Eligible Term Loan Purchasers (which shall be expressly provided in the assignment documentation
described below) to reimburse each issuing lender (or any ABL Facility Secured Party required to pay same) for all amounts thereafter drawn with respect to any letters of credit constituting ABL Facility Obligations which remain outstanding after
the date of any purchase pursuant to this Section 3.4(g), together with all facing fees and other amounts which may at any future time be owing to the respective issuing lender with respect to such letters of credit; it being understood
and agreed that (x) if at any time those amounts (if any) then on deposit with the ABL Facility Security Agent as described in clause (C) above exceed 100% of the sum of the aggregate undrawn amount of all then outstanding letters of
credit, such excess shall be returned to the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers (as their interests appear), (y) at such time as all letters of credit have been cancelled, expired or been fully drawn, as
the case may be, any excess cash collateral deposited as described above in clause (C) (and not previously applied or released as provided above) shall be returned to the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers,
as their interests appear and (z) at such time as all ABL Facility Bank Product Agreements have been terminated, any excess cash collateral deposited as described above in clause (B) (and not previously applied or released as provided
above) shall be returned to the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers, as their interests appear; 

(2) with the purchase price described in preceding clause (i)(1)(x) payable in cash on the date of purchase against transfer to
the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers (without recourse and without any representations or warranties whatsoever, whether as to the enforceability of any ABL Facility Obligation or the validity, enforceability,
perfection, priority or sufficiency of any Lien securing, or guarantee or other supporting obligation for, any ABL Facility Obligation or as to any other matter whatsoever, except the representations and warranties (1) that the transferor owns
free and clear of all Liens and encumbrances (other than participation interests not prohibited by the ABL Facility Credit Agreement, in which case the purchase price described in preceding clause (i)(1)(x) shall be appropriately adjusted so that
the Eligible Term Loan Purchaser or Eligible Term Loan Purchasers do not pay amounts represented by any participation interest which remains in effect), and has the right to convey, whatever claims and interests it may have in respect of the ABL
Facility Obligations) and (2) as to the amount of its portion of the ABL Facility Obligations being acquired); provided that the purchase price in respect of any outstanding letter of credit that remains undrawn on the date of purchase
shall be payable in cash as and when such letter of credit is drawn upon (i) first, from the cash collateral account described in clause (i)(1)(x)(C) above, until the amounts contained therein have been exhausted, and
(ii) thereafter, directly by the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers; 
 (3) with
the purchase price described in preceding clause (i)(1)(x) accompanied by a waiver by the Term Loan Security Agent (on behalf of itself and the other Term Loan Secured Parties) of all claims arising out of this Agreement and the transactions
contemplated hereby as a result of exercising the purchase option contemplated by this Section 3.4(g); 

  
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 (4) with all amounts payable to the various ABL Facility Secured Parties in
respect of the assignments described above to be distributed to them by the ABL Facility Security Agent in accordance with their respective holdings of the various ABL Facility Obligations; and 

(5) with such purchase to be made pursuant to assignment documentation in form and substance reasonably satisfactory to, and
prepared by counsel for, the ABL Facility Security Agent (with the cost of such counsel to be paid by the Grantors or, if the Grantors do not make such payment, by the respective Eligible Term Loan Purchaser or Eligible Term Loan Purchasers, who
shall have the right to obtain reimbursement of same from the Grantors); it being understood and agreed that the ABL Facility Security Agent and each other ABL Facility Secured Party shall retain all rights to indemnification as provided in the
relevant ABL Facility Documents for all periods prior to any assignment by them pursuant to the provisions of this Section 3.4(g). 

(ii) The right to exercise the purchase option described in Section 3.4(g)(i) above shall be exercisable and
legally enforceable upon at least ten (10) Business Days’ prior written notice of exercise (which notice, once given, (A) shall be irrevocable and fully binding on the respective Eligible Term Loan Purchaser or Eligible Term Loan
Purchasers except as provided in clause (iii) below and (B) shall specify a date of purchase not less than five (5) Business Days, nor more than thirty (30) calendar days, after the date of the receipt by the ABL Facility
Security Agent of such notice) given to the ABL Facility Security Agent by an Eligible Term Loan Purchaser. Neither the ABL Facility Security Agent nor any ABL Facility Secured Party shall have any disclosure obligation to any Eligible Term Loan
Purchaser, the Term Loan Security Agent or any Term Loan Secured Party in connection with any exercise of such purchase option. 

(iii) The right to purchase the ABL Facility Obligations as described in this Section 3.4(g) may be exercised (by
giving the irrevocable written notice described in preceding clause (ii)) during the period that (1) begins on the date occurring three Business Days after the first to occur of (x) the date of the acceleration of the final maturity of the
loans under the ABL Facility Credit Agreement, (y) the occurrence of the final maturity of the loans under the ABL Facility Credit Agreement or (z) the occurrence of an Insolvency or Liquidation Proceeding with respect to any Borrower or
any other Grantor which constitutes an event of default under the ABL Facility Credit Agreement (in each case, so long as the acceleration, failure to pay amounts due at final maturity or such Insolvency or Liquidation Proceeding constituting an
event of default has not been rescinded or cured within 10 Business Days after any such event, and so long as any unpaid amounts constituting ABL Facility Obligations remain owing); provided that if there is any failure to meet the condition
described in the proviso of preceding clause (i) hereof, the aforementioned date shall be extended until the first date upon which such condition is satisfied, and (2) ends on the 10th Business Day after the start of the period described
in clause (1) above. 
 (iv) The obligations of the ABL Facility Secured Parties to sell their respective ABL Facility
Obligations under this Section 3.4(g) are several and not joint and several. To the extent any ABL Facility Secured Party breaches its obligation to sell its ABL Facility Obligations under this Section 3.4(g) (a
“Defaulting ABL Facility Secured Party”), nothing in this Section 3.4(g) shall be deemed to require the ABL Facility Security Agent or any other ABL Facility Secured Party to purchase such Defaulting ABL Facility Secured
Party’s ABL Facility Obligations for resale to the holders of Term Loan Obligations and in all cases, the ABL Facility Security Agent and each ABL Facility Secured Party complying with the terms of this Section 3.4(g) shall not be
deemed to be in default of this Agreement or otherwise be deemed liable for any action or inaction of any Defaulting ABL Facility Secured Party; provided that nothing in this clause (iv) shall require any Eligible Term Loan Purchaser to
purchase less than all of the ABL Facility Obligations. 
 (v) Each Grantor irrevocably consents to any assignment effected
to one or more Eligible Term Loan Purchasers pursuant to this Section 3.4(g) (so long as they meet all eligibility standards contained in all relevant Term Loan Documents, other than obtaining the consent of any Grantor to an assignment
to the extent required by such ABL Facility Documents) for purposes of all Term Loan Documents and hereby agrees that no further consent to any such assignment pursuant to this Section 3.4(g) from such Grantor shall be required. 

  
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 3.5. Insolvency or Liquidation Proceedings. 

(a) Finance and Sale Issues. Until the Discharge of ABL Facility Obligations has occurred, if any Borrower or any other Grantor shall
be subject to any Insolvency or Liquidation Proceeding and the ABL Facility Security Agent shall desire to permit the use of cash collateral (as such term is defined in Section 363(a) of the Bankruptcy Code) constituting ABL Facility First Lien
Collateral or to permit any Borrower or any other Grantor to obtain financing, whether from the ABL Facility Secured Parties or any other entity under Section 364 of the Bankruptcy Code or any similar Bankruptcy Law, that is secured by a lien
that is (i) senior or pari passu with the liens on the ABL Facility First Lien Collateral securing the ABL Facility Obligations and (ii) junior to the liens on the Term Loan First Lien Collateral securing the Term Loan Obligations (each,
an “ABL Facility DIP Financing”), then the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, agrees that it will not oppose or raise any objection to or contest (or join with or support any third party
opposing, objecting or contesting) such use of cash collateral constituting ABL Facility First Lien Collateral or to the fact that the providers of such ABL Facility DIP Financing may be granted Liens on the Collateral and will not request adequate
protection or any other relief in connection therewith (except, as expressly agreed by the ABL Facility Security Agent or to the extent permitted by Section 3.5(c)) and, the Term Loan Security Agent will subordinate its Liens in the ABL
Facility First Lien Collateral to the Liens securing such ABL Facility DIP Financing (and all interest and other obligations relating thereto); provided that (i) the Term Loan Security Agent and the other Term Loan Secured Parties retain
a Lien on the Collateral to secure the Term Loan Obligations and, with respect to the Term Loan First Lien Collateral only, with the same priority as existed prior to the commencement of the Insolvency or Liquidation Proceeding, (ii) to the
extent that the ABL Facility Security Agent is granted adequate protection in the form of a Lien, the Term Loan Security Agent is permitted to seek a Lien (without objection from the ABL Facility Security Agent or any ABL Facility Secured Party) on
Collateral arising after the commencement of the Insolvency or Liquidation Proceeding (so long as, with respect to ABL Facility First Lien Collateral, such Lien is junior to the Liens securing such ABL Facility DIP Financing and the ABL Facility
Obligations), and (iii) the foregoing provisions of this Section 3.5(a) shall not prevent the Term Loan Security Agent and the Term Loan Secured Parties from objecting to any provision in any ABL Facility DIP Financing relating to
any provision or content of a plan of reorganization or other plan of similar effect under any Debtor Relief Laws. The Term Loan Security Agent, on behalf of the Term Loan Secured Parties, agrees that it will not raise any objection or oppose a sale
or other disposition of any ABL Facility First Lien Collateral free and clear of its Liens (subject to attachment of Proceeds with respect to the Second Priority Lien on the ABL Facility First Lien Collateral in favor of the Term Loan Security Agent
in the same order and manner as otherwise set forth herein) or other claims under Section 363 of the Bankruptcy Code, except for any objection or opposition that could be asserted by any Term Loan Secured Party as an unsecured creditor in any
such Insolvency or Liquidation Proceeding, if the Term Loan Secured Parties have consented to such sale or disposition of such assets; provided that the Term Loan Security Agent and the other Term Loan Secured Parties shall be entitled to
seek and exercise Credit Bid Rights in respect of any such sale or disposition. 
 (b) Relief from the Automatic Stay. Until the
Discharge of ABL Facility Obligations has occurred, the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, agrees that none of them shall seek (or support any other Person seeking) relief from the automatic stay or any
other stay in any Insolvency or Liquidation Proceeding in respect of the ABL Facility First Lien Collateral without the prior written consent of the ABL Facility Security Agent. 

  
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 (c) Adequate Protection. The Term Loan Security Agent, on behalf of itself and the Term
Loan Secured Parties, agrees that none of them shall contest (or support any other Person contesting) (i) any request by the ABL Facility Security Agent or the ABL Facility Secured Parties for adequate protection with respect to any ABL
Facility First Lien Collateral, (ii) so long as the request of adequate protection is in the form of a replacement lien on the Term Loan First Lien Collateral that is junior to the liens on the Term Loan First Lien Collateral securing the Term
Loan Obligations, any request by the ABL Facility Security Agent or the ABL Facility Secured Parties for adequate protection with respect to any Term Loan First Lien Collateral or (iii) any objection by the ABL Facility Security Agent or the
ABL Facility Secured Parties to any motion, relief, action or proceeding based on the ABL Facility Security Agent or the ABL Facility Secured Parties claiming a lack of adequate protection with respect to the ABL Facility First Lien Collateral.
Notwithstanding the foregoing provisions in this Section 3.5(c), in any Insolvency or Liquidation Proceeding, (A) if the ABL Facility Secured Parties (or any subset thereof) are granted adequate protection in the form of additional
collateral in the nature of assets constituting ABL Facility First Lien Collateral in connection with any ABL Facility DIP Financing or use of cash collateral constituting ABL Facility First Lien Collateral, then the Term Loan Security Agent, on
behalf of itself or any of the Term Loan Secured Parties, may seek or request adequate protection in the form of a Lien on such additional collateral, which Lien will be subordinated to the Liens securing the ABL Facility Obligations and such ABL
Facility DIP Financing (and all obligations relating thereto) on the same basis as the other Liens on ABL Facility First Lien Collateral securing the Term Loan Obligations are so subordinated to the ABL Facility Obligations under this Agreement, and
(B) in the event the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, seeks or requests adequate protection in respect of ABL Facility First Lien Collateral securing Term Loan Obligations and such adequate
protection is granted in the form of additional collateral in the nature of assets constituting ABL Facility First Lien Collateral, then the Term Loan Security Agent, on behalf of itself or any of the Term Loan Secured Parties, agrees that the ABL
Facility Security Agent shall also be granted a senior Lien on such additional collateral as security for the ABL Facility Obligations and for any such ABL Facility DIP Financing and that any Lien on such additional collateral securing the Term Loan
Obligations shall be subordinated to the Liens on such collateral securing the ABL Facility Obligations and any such ABL Facility DIP Financing (and all obligations relating thereto) and to any other Liens granted to the ABL Facility Secured Parties
as adequate protection on the same basis as the other Liens on ABL Facility First Lien Collateral securing the Term Loan Obligations are so subordinated to such ABL Facility Obligations under this Agreement. 

(d) No Waiver. Subject to the proviso in clause (ii) of Section 3.2(a), nothing contained herein shall prohibit or in
any way limit the ABL Facility Security Agent or any ABL Facility Secured Party from objecting in any Insolvency or Liquidation Proceeding or otherwise to any action taken by the Term Loan Security Agent or any of the Term Loan Secured Parties in
respect of the ABL Facility First Lien Collateral, including the seeking by the Term Loan Security Agent or any Term Loan Secured Party of adequate protection in respect thereof or the asserting by the Term Loan Security Agent or any Term Loan
Secured Party of any of its rights and remedies under the Term Loan Documents or otherwise in respect thereof. 
 (e) Reorganization
Securities. If, in any Insolvency or Liquidation Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or similar dispositive
restructuring plan, both on account of ABL Facility Obligations and on account of Term Loan Obligations, then, to the extent the debt obligations distributed on account of the ABL Facility Obligations and on account of the Term Loan Obligations are
secured by Liens upon the same property, the provisions of this Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with like effect to the Liens securing such debt obligations. 

  
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 (f) Post-Petition Interest. 

(i) Neither the Term Loan Security Agent nor any Term Loan Secured Party shall oppose or seek to challenge any claim by the ABL
Facility Security Agent or any ABL Facility Secured Party for allowance in any Insolvency or Liquidation Proceeding of ABL Facility Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the ABL Facility
Secured Party’s Lien on the ABL Facility First Lien Collateral, without regard to the existence of the Lien of the Term Loan Security Agent on behalf of the Term Loan Secured Parties on the ABL Facility First Lien Collateral. 

(ii) Neither the ABL Facility Security Agent nor any other ABL Facility Secured Party shall oppose or seek to challenge any
claim by the Term Loan Security Agent or any Term Loan Secured Party for allowance in any Insolvency or Liquidation Proceeding of Term Loan Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the Lien of
the Term Loan Security Agent on behalf of the Term Loan Secured Parties on the ABL Facility First Lien Collateral (after taking into account the Lien of the ABL Facility Secured Parties on the ABL Facility First Lien Collateral). 

(g) Waiver. The Term Loan Security Agent, for itself and on behalf of the Term Loan Secured Parties, waives any claim it may hereafter
have against any ABL Facility Secured Party arising out of the election of any ABL Facility Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code, and/or out of any cash collateral or financing arrangement or out of any
grant of a security interest in connection with the ABL Facility First Lien Collateral in any Insolvency or Liquidation Proceeding. 
 3.6.
Reliance; Waivers; Etc. 
 (a) Reliance. Other than any reliance on the terms of this Agreement, the Term Loan Security Agent,
on behalf of itself and the Term Loan Secured Parties, acknowledges that it and such Term Loan Secured Parties have (and by their acceptance of the benefits hereof, each of the Term Loan Secured Parties acknowledge that they have), independently and
without reliance on the ABL Facility Security Agent or any ABL Facility Secured Party, and based on documents and information deemed by them appropriate, made their own credit analysis and decision to enter into the Term Loan Documents and be bound
by the terms of this Agreement and they will continue to make their own credit decision in taking or not taking any action under the Term Loan Credit Agreement or this Agreement. 

(b) No Warranties or Liability. The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, acknowledges and
agrees (and by their acceptance of the benefits hereof, each of the Term Loan Secured Parties acknowledge and agree) that the ABL Facility Security Agent and the ABL Facility Secured Parties have made no express or implied representation or
warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the ABL Facility Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon. The ABL
Facility Secured Parties will be entitled to manage and supervise their respective loans and extensions of credit under their respective ABL Facility Documents in accordance with law and as they may otherwise, in their sole discretion, deem
appropriate. The ABL Facility Security Agent and the ABL Facility Secured Parties shall have no duty to the Term Loan Security Agent or any of the Term Loan Secured Parties to act or refrain from acting in a manner which allows, or results in, the
occurrence or continuance of an event of default or default under any agreements with any Borrower or any other Grantor (including the ABL Facility Documents and the Term Loan Documents), regardless of any knowledge thereof which they may have or be
charged with. 

  
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 (c) No Waiver of Lien Priorities. 

(i) No right of the ABL Facility Secured Parties, the ABL Facility Security Agent or any of them to enforce any provision of
this Agreement or any ABL Facility Document shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of any Borrower or any other Grantor or by any act or failure to act by any ABL Facility Secured Party or the
ABL Facility Security Agent, or by any noncompliance by any Person with the terms, provisions and covenants of this Agreement, any of the ABL Facility Documents or any of the Term Loan Documents, regardless of any knowledge thereof which the ABL
Facility Security Agent or the ABL Facility Secured Parties, or any of them, may have or be otherwise charged with. 
 (ii)
Without in any way limiting the generality of the foregoing paragraph (but subject to the rights of any Borrower and the other Grantors under the ABL Facility Documents and subject to the provisions of Section 3.4(c)), the ABL Facility
Secured Parties, the ABL Facility Security Agent and any of them may, at any time and from time to time in accordance with the ABL Facility Documents and/or applicable law, without the consent of, or notice to, the Term Loan Security Agent or any
Term Loan Secured Party, without incurring any liabilities to the Term Loan Security Agent or any Term Loan Secured Party and without impairing or releasing the Lien priorities and other benefits provided in this Agreement (even if any right of
subrogation or other right or remedy of the Term Loan Security Agent or any Term Loan Secured Party is affected, impaired or extinguished thereby) do any one or more of the following: 

(1) make loans and advances to any Grantor or issue, guaranty or obtain letters of credit for account of any Grantor or
otherwise extend credit to any Grantor, in any amount and on any terms, whether pursuant to a commitment or as a discretionary advance and whether or not any default or event of default or failure of condition is then continuing; 

(2) change the manner, place or terms of payment or change or extend the time of payment of, or amend, renew, exchange,
increase or alter, the terms of any of the ABL Facility Obligations or any Lien on any ABL Facility First Lien Collateral or guaranty thereof or any liability of any Borrower or any other Grantor, or any liability incurred directly or indirectly in
respect thereof (including any increase in or extension of the ABL Facility Obligations, without any restriction as to the amount, tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend, modify or supplement in
any manner any Liens on the ABL Facility First Lien Collateral held by the ABL Facility Security Agent or any of the ABL Facility Secured Parties, the ABL Facility Obligations or any of the ABL Facility Documents; 

(3) sell, exchange, realize upon, enforce or otherwise deal with in any manner (subject to the terms hereof) and in any order
any part of the ABL Facility First Lien Collateral or any liability of any Borrower or any other Grantor to the ABL Facility Secured Parties or the ABL Facility Security Agent, or any liability incurred directly or indirectly in respect thereof;

 (4) settle or compromise any ABL Facility Obligation or any other liability of any Borrower or any other Grantor or any
security therefor or any liability incurred directly or indirectly in respect thereof; and 

  
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 (5) exercise or delay in or refrain from exercising any right or remedy against
any Borrower or any other Grantor or any other Person, elect any remedy and otherwise deal freely with any Borrower, any other Grantor or any ABL Facility First Lien Collateral and any security and any guarantor or any liability of any Borrower or
any other Grantor to the ABL Facility Secured Parties or any liability incurred directly or indirectly in respect thereof. 

(iii) The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, also agrees that the ABL Facility
Secured Parties and the ABL Facility Security Agent shall have no liability to the Term Loan Security Agent or any Term Loan Secured Party, and the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, hereby waives any
claim against any ABL Facility Secured Party or the ABL Facility Security Agent, arising out of any and all actions which the ABL Facility Secured Parties or the ABL Facility Security Agent may take or permit or omit to take with respect to: 

(1) the ABL Facility Documents (other than this Agreement); 

(2) the collection of the ABL Facility Obligations; or 

(3) the foreclosure upon, or sale, liquidation or other disposition of, any ABL Facility First Lien Collateral. 

Except as otherwise required by this Agreement, the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, and each other Term Loan
Secured Party (by its acceptance of the benefit of the Term Loan Documents), agrees that the ABL Facility Secured Parties and the ABL Facility Security Agent have no duty to the Term Loan Security Agent or the Term Loan Secured Parties in respect of
the maintenance or preservation of the ABL Facility First Lien Collateral, the ABL Facility Obligations or otherwise. 
 (iv)
The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, and each other Term Loan Secured Party (by its acceptance of the benefit of the Term Loan Documents), agrees not to assert and hereby waives, to the fullest extent
permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law with respect to the ABL
Facility First Lien Collateral or any other similar rights a junior secured creditor may have under applicable law. 
 (d) Obligations
Unconditional. All rights, interests, agreements and obligations of the ABL Facility Security Agent and the ABL Facility Secured Parties and the Term Loan Security Agent and the Term Loan Secured Parties, respectively, hereunder shall remain in
full force and effect irrespective of: 
 (i) any lack of validity or enforceability of any ABL Facility Document or any Term
Loan Document; 
 (ii) except as otherwise set forth in this Agreement, any change permitted hereunder in the time, manner or
place of payment of, or in any other terms of, all or any of the ABL Facility Obligations or Term Loan Obligations, or any amendment or waiver or other modification permitted hereunder, whether by course of conduct or otherwise, of the terms of any
ABL Facility Document or any Term Loan Document; 

  
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 (iii) except as otherwise set forth in this Agreement, any exchange of any
security interest in any ABL Facility First Lien Collateral or any amendment, waiver or other modification permitted hereunder, whether in writing or by course of conduct or otherwise, of all or any of the ABL Facility Obligations or Term Loan
Obligations; 
 (iv) the commencement of any Insolvency or Liquidation Proceeding in respect of any Borrower or any other
Grantor; or 
 (v) any other circumstances which otherwise might constitute a defense available to, or a discharge of, any
Borrower or any other Grantor in respect of the ABL Facility Obligations, or of the Term Loan Security Agent or any Term Loan Secured Party in respect of this Agreement. 
  

	Section 4.	Cooperation With Respect To ABL Facility First Lien Collateral. 

 4.1. Consent to
License to Use Intellectual Property. The Term Loan Security Agent (and any purchaser, assignee or transferee of assets as provided in Section 4.3) (a) consents (without any representation, warranty or obligation whatsoever) to
the grant by any Grantor to the ABL Facility Security Agent of a non-exclusive royalty-free license to use for a period not to exceed 180 days (commencing with the initiation of any enforcement of Liens by either the Term Loan Security Agent
(provided that the ABL Facility Security Agent has received notice thereof) or the ABL Facility Security Agent) any Patent, Trademark or proprietary information of such Grantor that is subject to a Lien held by the Term Loan Security Agent
(or any Patent, Trademark or proprietary information acquired by such purchaser, assignee or transferee from any Grantor, as the case may be) and (b) grants, in its capacity as a secured party (or as a purchaser, assignee or transferee, as the
case may be), to the ABL Facility Security Agent a non-exclusive royalty-free license to use for a period not to exceed 180 days (commencing with (x) the initiation of any enforcement of Liens by either the Term Loan Security Agent or the ABL
Facility Security Agent or (y) the purchase, assignment or transfer, as the case may be (provided that in either such case the ABL Facility Security Agent has received notice thereof)) any Patent, Trademark or proprietary information
that is subject to a Lien held by the Term Loan Security Agent (or subject to such purchase, assignment or transfer, as the case may be), in each case in connection with the enforcement of any Lien held by the ABL Facility Security Agent upon any
Inventory or other ABL Facility First Lien Collateral of any Grantor and to the extent the use of such Patent, Trademark or proprietary information is necessary or appropriate, in the good faith opinion of the ABL Facility Security Agent, to
process, ship, produce, store, complete, supply, lease, sell or otherwise dispose of any such Inventory in any lawful manner. The 180 day license periods shall be tolled during the pendency of any Insolvency or Liquidation Proceeding of any Grantor
pursuant to which the ABL Facility Security Agent is effectively stayed from enforcing its rights and remedies with respect to the ABL Facility First Lien Collateral. 

4.2. Access to Information. If the Term Loan Security Agent takes actual possession of any Records or other documentation of a Grantor
(whether such documentation is in the form of a writing or is stored in any data equipment or data record in the physical possession of the Term Loan Security Agent) the Term Loan Security Agent shall promptly notify the ABL Facility Security Agent
of such fact, then upon the reasonable request of the ABL Facility Security Agent and reasonable advance notice, the Term Loan Security Agent will permit the ABL Facility Security Agent or its representative to inspect and copy such documentation as
promptly as practicable thereafter. 
 4.3. Access to Property to Process and Sell Inventory. (a) (i) If the ABL Facility
Security Agent commences any action or proceeding with respect to any of its rights or remedies (including, but not limited to, any action of foreclosure but excluding any exercise of rights solely in connection with a Cash Dominion Event, as such
term is defined in the ABL Facility Credit Agreement, 

  
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as originally in effect), enforcement, collection or execution with respect to the ABL Facility First Lien Collateral (“ABL Facility First Lien Collateral Enforcement Actions”)
or if the Term Loan Security Agent commences any action or proceeding with respect to any of its rights or remedies (including any action of foreclosure), enforcement, collection or execution with respect to the Term Loan First Lien Collateral and
the Term Loan Security Agent (or a purchaser at a foreclosure sale conducted in foreclosure of any Term Loan Security Agent’s Liens) takes actual or constructive possession of Term Loan First Lien Collateral of any Grantor (“Term Loan
First Lien Collateral Enforcement Actions”), then the Term Loan Secured Parties and the Term Loan Security Agent shall (subject to, in the case of any Term Loan First Lien Collateral Enforcement Action, a prior written request by the ABL
Facility Security Agent to the Term Loan Security Agent (the “Term Loan First Lien Collateral Enforcement Action Notice”)) (x) cooperate with the ABL Facility Security Agent (and with its officers, employees, representatives
and agents) in its efforts to conduct ABL Facility First Lien Collateral Enforcement Actions in the ABL Facility First Lien Collateral and to finish any work-in-process and process, ship, produce, store, complete, supply, lease, sell or otherwise
handle, deal with, assemble or dispose of, in any lawful manner, the ABL Facility First Lien Collateral, (y) not hinder or restrict in any respect the ABL Facility Security Agent from conducting ABL Facility First Lien Collateral Enforcement
Actions in the ABL Facility First Lien Collateral or from finishing any work-in-process or processing, shipping, producing, storing, completing, supplying, leasing, selling or otherwise handling, dealing with, assembling or disposing of, in any
lawful manner, the ABL Facility First Lien Collateral, and (z) permit the ABL Facility Security Agent, its employees, agents, advisers and representatives, at the cost and expense of the ABL Facility Secured Parties (but with the Grantors’
reimbursement and indemnity obligation with respect thereto), to enter upon and use the Term Loan First Lien Collateral (including, without limitation, equipment, processors, computers and other machinery related to the storage or processing of
records, documents or files and intellectual property), for a period commencing on (I) the date of the initial ABL Facility First Lien Collateral Enforcement Action or the date of delivery of the Term Loan First Lien Collateral Enforcement
Action Notice, as the case may be, and (II) ending on the earlier of the date occurring 180 days thereafter and the date on which all ABL Facility First Lien Collateral (other than ABL Facility First Lien Collateral abandoned by the ABL Facility
Security Agent in writing) has been removed from the Term Loan First Lien Collateral (such period, the “ABL Facility First Lien Collateral Processing and Sale Period”), for purposes of: 

(A) assembling and storing the ABL Facility First Lien Collateral and completing the processing of and turning into finished
goods any ABL Facility First Lien Collateral consisting of work-in-process; 
 (B) selling any or all of the ABL Facility
First Lien Collateral located in or on such Term Loan First Lien Collateral, whether in bulk, in lots or to customers in the ordinary course of business or otherwise; 

(C) removing and transporting any or all of the ABL Facility First Lien Collateral located in or on such Term Loan First Lien
Collateral; 
 (D) otherwise processing, shipping, producing, storing, completing, supplying, leasing, selling or otherwise
handling, dealing with, assembling or disposing of, in any lawful manner, the ABL Facility First Lien Collateral; and/or 

(E) taking reasonable actions to protect, secure, and otherwise enforce the rights or remedies of the ABL Facility Secured
Parties and/or the ABL Facility Security Agent (including with respect to any ABL Facility First Lien Collateral Enforcement Actions) in and to the ABL Facility First Lien Collateral; 

  
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 provided, however, that nothing contained in this Agreement shall restrict the rights of the Term
Loan Security Agent from selling, assigning or otherwise transferring any Term Loan First Lien Collateral prior to the expiration of such ABL Facility First Lien Collateral Processing and Sale Period if the purchaser, assignee or transferee thereof
agrees in writing (for the benefit of the ABL Facility Security Agent and the ABL Facility Secured Parties) to be bound by the provisions of this Section 4. If any stay or other order prohibiting the exercise of remedies with respect to
the ABL Facility First Lien Collateral has been entered by a court of competent jurisdiction, such ABL Facility First Lien Collateral Processing and Sale Period shall be tolled during the pendency of any such stay or other order. 

(ii) During the period of actual occupation, use and/or control by the ABL Facility Secured Parties and/or the ABL Facility
Security Agent (or their respective employees, agents, advisers and representatives) of any Term Loan First Lien Collateral, the ABL Facility Secured Parties and the ABL Facility Security Agent shall be obligated to repair at their expense any
physical damage to such Term Loan First Lien Collateral resulting from such occupancy, use or control, and to leave such Term Loan First Lien Collateral in substantially the same condition as it was at the commencement of such occupancy, use or
control, ordinary wear and tear excepted. Notwithstanding the foregoing, in no event shall the ABL Facility Secured Parties or the ABL Facility Security Agent have any liability to the Term Loan Secured Parties and/or to the Term Loan Security Agent
pursuant to this Section 4.3(a) as a result of any condition (including any environmental condition, claim or liability) on or with respect to the Term Loan First Lien Collateral existing prior to the date of the exercise by the ABL
Facility Secured Parties (or the ABL Facility Security Agent, as the case may be) of their rights under this Section 4.3(a) and the ABL Facility Secured Parties shall have no duty or liability to maintain the Term Loan First Lien
Collateral in a condition or manner better than that in which it was maintained prior to the use thereof by the ABL Facility Secured Parties, or for any diminution in the value of the Term Loan First Lien Collateral that results from ordinary wear
and tear resulting from the use of the Term Loan First Lien Collateral by the ABL Facility Secured Parties in the manner and for the time periods specified under this Section 4.3(a). Without limiting the rights granted in this
Section 4.3(a), the ABL Facility Secured Parties and the ABL Facility Security Agent shall cooperate with the Term Loan Secured Parties and/or the Term Loan Security Agent in connection with any efforts made by the Term Loan Secured
Parties and/or the Term Loan Security Agent to sell the Term Loan First Lien Collateral. 
 (b) The ABL Facility Secured Parties shall
(i) use the Term Loan First Lien Collateral in accordance with applicable law; (ii) obtain insurance for damage to property and liability to persons, including property and liability insurance, substantially similar to the insurance
maintained by Grantors (or required to be maintained by the Grantors under the Term Loan Documents), naming Term Loan Security Agent as mortgagee, loss payee and additional insured, at no cost to the Term Loan Secured Parties, but only to the extent
such insurance is not otherwise in effect; and (iii) indemnify the Term Loan Secured Parties from any claim, loss, damage, cost or liability arising out of any claim asserted by any third party as a result of any acts or omissions by the ABL
Facility Security Agent, or any of its agents or representatives, in connection with the exercise by the ABL Facility Secured Parties of their rights of access set forth in this Section 4.3. In no event shall any ABL Facility Secured
Party have any liability to the Term Loan Secured Parties pursuant to this Section 4.3(b) or otherwise as a result of any condition of or with respect to the Term Loan First Lien Collateral existing prior to the date of the exercise by
the ABL Facility Secured Parties of their access rights under this Section 4.3(b), and the ABL Facility Secured Parties shall have no duty or liability to maintain the Term Loan First Lien Collateral in a condition or manner better than
that in which it was maintained prior to the access and/or use thereof by the ABL Facility Secured Parties. 
 (c) The Term Loan Security
Agent (x) shall, at the request of the ABL Facility Security Agent, provide reasonable cooperation to the ABL Facility Security Agent in connection with the manufacture, production, completion, handling, removal and sale of any ABL Facility
First Lien Collateral by the ABL Facility Security Agent as provided above and (y) shall be entitled to receive, from the ABL Facility Security Agent, fair compensation and reimbursement for their reasonable costs and expenses incurred in
connection with such cooperation, support and assistance to the ABL Facility Security Agent. The Term Loan Security Agent and/or any such purchaser (or its transferee or successor) shall not otherwise be required to manufacture, produce, complete,
remove, insure, protect, store, safeguard, sell or deliver any Inventory subject to any First Priority Lien held by the ABL Facility Security Agent or to provide any support, assistance or cooperation to the ABL Facility Security Agent in respect
thereof. 

  
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 4.4. Grantor Consent. Each Borrower and the other Grantors consent to the performance by
the Term Loan Security Agent of the obligations set forth in this Article 4 and acknowledge and agree that neither the Term Loan Security Agent (nor any holder of Term Loan Obligations) shall ever be accountable or liable for any action taken or
omitted by the ABL Facility Security Agent or any ABL Facility Secured Party or its or any of their officers, employees, agents successors or assigns in connection therewith or incidental thereto or in consequence thereof, including any improper use
or disclosure of any proprietary information or other Intellectual Property by the ABL Facility Security Agent or any ABL Facility Secured Party or its or any of their officers, employees, agents, successors or assigns or any other damage to or
misuse or loss of any property of the Grantors as a result of any action taken or omitted by the ABL Facility Security Agent or its officers, employees, agents, successors or assigns. 

 

	Section 5.	Application Of Proceeds. 

 5.1. Application of Proceeds in Distributions by the Term
Loan Security Agent. 
 (a) The Term Loan Security Agent will apply the Proceeds of any collection, sale, foreclosure or other
realization upon any Term Loan First Lien Collateral and, after the Discharge of ABL Facility Obligations, the Proceeds of any collection, sale, foreclosure or other realization of any ABL Facility First Lien Collateral by Term Loan Security Agent
as expressly permitted hereunder, and, in each case the Proceeds of any title insurance policy with respect to any Term Loan First Lien Collateral, in the following order of application: 

First, to the payment in full in cash of all amounts payable under the Term Loan Documents on account of the Term Loan
Security Agent’s fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the Term Loan Security Agent or any co-trustee or agent of the Term Loan Security Agent
in connection with any Term Loan Document; 
 Second, to the Term Loan Administrative Agent for application to the
payment of all outstanding Term Loan Obligations that are then due and payable in such order as may be provided in the Term Loan Documents in an amount sufficient to pay in full in cash all outstanding Term Loan Obligations that are then due and
payable (including all interest accrued thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, and including any applicable post-default rate, specified in the Term Loan Documents, even if such interest is not
enforceable, allowable or allowed as a claim in such proceeding); 
 Third, to the payment in full in cash of all
amounts payable under the ABL Facility Documents on account of the ABL Facility Security Agent’s fees and any reasonable legal fees, 

  
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costs and expenses or other liabilities of any kind incurred by the ABL Facility Security Agent or any co-trustee or agent of the ABL Facility Security
Agent in connection with any ABL Facility Document; 
 Fourth, to the ABL Facility Security Agent for application to
the payment of all outstanding ABL Facility Obligations that are then due and payable in such order as may be provided in the ABL Facility Documents in an amount sufficient to pay in full in cash all outstanding ABL Facility Obligations that are
then due and payable (including all interest accrued thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, including any applicable post-default rate, specified in the ABL Facility Documents, even if such interest
is not enforceable, allowable or allowed as a claim in such proceeding, and including the discharge or cash collateralization (at 100% of the aggregate undrawn amount) of all outstanding letters of credit, if any, constituting ABL Facility
Obligations); and 
 Fifth, any surplus remaining after the payment in full in cash of the amounts described in the
preceding clauses will be paid to the Borrowers or the applicable Grantor, as the case may be, its successors or assigns, or as a court of competent jurisdiction may direct. 

(b) In connection with the application of Proceeds pursuant to Section 5.1(a), except as otherwise directed by the Required
Lenders (or equivalent term) under (and as defined in) the Term Loan Documents, the Term Loan Security Agent may sell any non-cash Proceeds for cash prior to the application of the Proceeds thereof. 

(c) If the Term Loan Security Agent or any Term Loan Secured Party collects or receives any Proceeds of such foreclosure, collection or other
enforcement that should have been applied to the payment of the ABL Facility Obligations in accordance with Section 5.2(a) below, whether after the commencement of an Insolvency or Liquidation Proceeding or otherwise, such Term Loan
Secured Party will forthwith deliver the same to the ABL Facility Security Agent, for the account of the holders of the ABL Facility Obligations, to be applied in accordance with Section 5.2(a). Until so delivered, such Proceeds will be
held by that Term Loan Secured Party for the benefit of the holders of the ABL Facility Obligations. 
 5.2. Application of Proceeds in
Distributions by the ABL Facility Security Agent. 
 (a) The ABL Facility Security Agent will apply the Proceeds of any collection,
sale, foreclosure or other realization upon any ABL Facility First Lien Collateral and, after the Discharge of Term Loan Obligations, the Proceeds of any collection, sale, foreclosure or other realization of any Term Loan First Lien Collateral by
the ABL Facility Security Agent as expressly permitted hereunder, and the Proceeds of any title insurance policy with respect to any ABL Facility First Lien Collateral, in the following order of application: 

First, to the payment in full in cash of all amounts payable under the ABL Facility Documents on account of the ABL
Facility Security Agent’s fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the ABL Facility Security Agent or any co-trustee or agent of the ABL Facility Security Agent in connection with any
ABL Facility Document; 
 Second, to the ABL Facility Administrative Agent for application to the payment of all
outstanding ABL Facility Obligations that are then due and payable in such order as may be provided in the ABL Facility Documents in an amount sufficient to pay in full in cash all outstanding ABL Facility Obligations that are then due and payable
(including all interest accrued 

  
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thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, and including any applicable post-default rate, specified in the ABL Facility Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such proceeding and including the discharge or cash collateralization of all outstanding letters of credit (at 100% of the aggregate undrawn amount), if any, constituting ABL Facility
Obligations); 
 Third, to the payment in full in cash of all amounts payable under the Term Loan Documents on account
of the Term Loan Security Agent’s fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the Term Loan Security Agent or any co-trustee or agent of the Term Loan Security Agent in connection with any
Term Loan Document; 
 Fourth, to the Term Loan Administrative Agent for application to the payment of all outstanding
Term Loan Obligations that are then due and payable in such order as may be provided in the Term Loan Documents in an amount sufficient to pay in full in cash all outstanding Term Loan Obligations that are then due and payable (including all
interest accrued thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, and including any applicable post-default rate, specified in the Term Loan Documents, even if such interest is not enforceable, allowable or
allowed as a claim in such proceeding and including the discharge or cash collateralization); 
 Fifth, any surplus
remaining after the payment in full in cash of the amounts described in the preceding clauses will be paid to the Borrowers or the other applicable Grantor, as the case may be, its successors or assigns, or as a court of competent jurisdiction may
direct. 
 (b) In connection with the application of Proceeds pursuant to Section 5.2(a), except as otherwise directed by the
Required Lenders (or equivalent term) under (and as defined in) the ABL Facility Documents, the ABL Facility Security Agent may sell any non-cash Proceeds for cash prior to the application of the Proceeds thereof. 

(c) If the ABL Facility Security Agent or any ABL Facility Secured Party collects or receives any Proceeds of such foreclosure, collection or
other enforcement that should have been applied to the payment of the Term Loan Obligations in accordance with Section 5.1(a) above, whether after the commencement of an Insolvency or Liquidation Proceeding or otherwise, such ABL
Facility Secured Party will forthwith deliver the same to the Term Loan Security Agent, for the account of the holders of the Term Loan Obligations, to be applied in accordance with Section 5.1(a). Until so delivered, such Proceeds will
be held by that ABL Facility Secured Party for the benefit of the holders of the Term Loan Obligations. 
 5.3. Mixed Collateral
Proceeds. Notwithstanding anything to the contrary contained above or in the definition of the ABL Facility First Lien Collateral or Term Loan First Lien Collateral, in the event that Proceeds of Collateral are received from (or are otherwise
attributable to the value of) a sale or other disposition of Collateral that involves a combination of ABL Facility First Lien Collateral and Term Loan First Lien Collateral, the portion of such Proceeds that shall be allocated as Proceeds of ABL
Facility First Lien Collateral for purposes of this Agreement shall be an amount equal to the net book value of such ABL Facility First Lien Collateral (except in the case of Accounts, which amount shall be equal to the face amount of such
Accounts). In addition, notwithstanding anything to the contrary contained above or in the definition of the ABL Facility First Lien Collateral or Term Loan First Lien Collateral, to the extent Proceeds of Collateral are Proceeds received from (or
are otherwise attributable to the value of) the sale or disposition of all or substantially all of the Capital Stock of any Subsidiary of 

  
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Holdings which is a Grantor or all or substantially all of the assets of any such Subsidiary, such Proceeds shall constitute (1) first, in an amount equal to the face amount of the
Accounts (as described in clause (i) of the definition of ABL Facility First Lien Collateral, and excluding any Accounts to the extent excluded pursuant to said clause (i)) and the net book value of the Inventory owned by such Subsidiary at the
time of such sale, ABL Facility First Lien Collateral and (2) second, to the extent in excess of the amounts described in preceding clause (1), Term Loan First Lien Collateral. In the event that amounts are received in respect of Capital
Stock of or intercompany loans issued to any Grantor in an Insolvency or Liquidation Proceeding, such amounts shall be deemed to be Proceeds received from a sale or disposition of ABL Facility First Lien Collateral and Term Loan First Lien
Collateral and shall be allocated as Proceeds of ABL Facility First Lien Collateral and Term Loan First Lien Collateral in proportion to the ABL Facility First Lien Collateral and Term Loan First Lien Collateral owned at such time by the issuer of
such Capital Stock. 
  

	Section 6.	Miscellaneous. 

 6.1. Conflicts. In the event of any conflict between the
provisions of this Agreement and the provisions of the Term Loan Documents or the ABL Facility Documents, the provisions of this Agreement shall govern and control. By its acceptance of the benefits hereof, each Secured Party acknowledges and agrees
that the terms and provisions of this Agreement do not violate any term or provision of its respective Term Loan Document or ABL Facility Document. 

6.2. Effectiveness; Continuing Nature of this Agreement; Severability. (a) This Agreement shall become effective when executed and
delivered by the parties hereto. Each Security Agent, on behalf of itself and the applicable Secured Parties, hereby waives any right it may have under applicable law to revoke this Agreement or any of the provisions of this Agreement. The terms of
this Agreement shall survive, and shall continue in full force and effect, in any Insolvency or Liquidation Proceeding. Without limiting the generality of the foregoing, this Agreement is intended to constitute and shall be deemed to constitute a
“subordination agreement” within the meaning of Section 510(a) of the Bankruptcy Code and is intended to be and shall be interpreted to be enforceable to the maximum extent permitted pursuant to applicable nonbankruptcy law. Any
provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. All references to each Borrower or any other Grantor shall include such Borrower or such Grantor as debtor and debtor in possession and any receiver or trustee for each Borrower or any other Grantor (as the
case may be) in any Insolvency or Liquidation Proceeding. 
 (b) This Agreement shall terminate and be of no further force and effect: 

(i) with respect to the ABL Facility Security Agent, the ABL Facility Secured Parties and the ABL Facility Obligations, upon
the Discharge of ABL Facility Obligations, subject to the rights of the ABL Facility Secured Parties under Section 6.17; and 

(ii) with respect to the Term Loan Security Agent, the Term Loan Secured Parties and the Term Loan Obligations, upon the
Discharge of Term Loan Obligations, subject to the rights of the Term Loan Secured Parties under Section 6.17. 
 6.3.
Amendments; Waivers. (a) Subject to Section 6.3(b), no amendment, modification or waiver of any of the provisions of this Agreement by the Term Loan Security Agent or the ABL Facility Security Agent shall be deemed to be made
unless the same shall be in writing signed on behalf of each party hereto or its authorized agent; provided that additional Grantors may be added as 

  
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parties hereto in accordance with the provisions of Section 6.16. Each waiver of the terms of this Agreement, if any, shall be a waiver only with respect to the specific instance
involved and shall in no way impair the rights of the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time. Notwithstanding the foregoing, no Borrower nor any other Grantor shall
have any right to consent to or approve any amendment, modification or waiver of any provision of this Agreement except to the extent its rights, obligations, interests or privileges are directly affected (which includes any amendment to the
Grantors’ ability to cause additional obligations to constitute Term Loan Obligations or ABL Facility Obligations as any Borrower and/or any other Grantor may designate). 

(b) It is understood that the ABL Facility Security Agent and the Term Loan Security Agent, without the consent of any other ABL Facility
Secured Party or Term Loan Secured Party, may in their discretion determine that a supplemental agreement (which may take the form of an amendment and restatement of this Agreement) is necessary or appropriate (i) to facilitate having
additional indebtedness or other obligations of any of the Grantors become ABL Facility Obligations or Term Loan Obligations, as the case may be, under this Agreement, (ii) to give effect to any amendments contemplated by Sections
2.4(f)(i) or 3.4(f)(i) in connection with a Permitted Refinancing of Term Loan Obligations or ABL Facility Obligations, as applicable or (iii) to effectuate the subordination of Liens granted pursuant to Sections 6.02(o), (t),
(u) or (cc) of the ABL Facility Credit Agreement or Sections 6.02(o)(ii), (t), (u) or (dd) of the Term Loan Credit Agreement (or, in each case, any equivalent or similar baskets or exceptions under the documentation governing or evidencing
any Permitted Refinancing thereof) to (x) the Liens on the Term Loan First Lien Collateral securing the ABL Facility Obligations and the Term Loan Obligations and (y) the Liens on the ABL Facility First Lien Collateral securing ABL
Facility Obligations and the Term Loan Obligations (the indebtedness or other obligations described in clauses (i) and (iii), “Additional Debt”), which supplemental agreement shall, except in the case of preceding clauses
(ii) and (iii), specify whether such Additional Debt constitutes ABL Facility Obligations or Term Loan Obligations; provided that such Additional Debt is permitted to be incurred under the ABL Facility Credit Agreement and the Term Loan
Credit Agreement then extant in accordance with the terms thereof, and each of the ABL Facility Security Agent and the Term Loan Security Agent shall execute and deliver such supplemental agreement at the other’s request (or upon the request of
the Borrower Agent) and such supplemental agreement may contain additional intercreditor terms (to the extent consistent with the foregoing and each of the ABL Facility Credit Agreement and Term Loan Credit Agreement then extant) applicable solely
to the holders of such Additional Debt vis-à-vis the holders of the relevant obligations hereunder. 
 6.4. Information Concerning
Financial Condition of Borrowers and their Subsidiaries. The Term Loan Security Agent and the Term Loan Secured Parties, on the one hand, and the ABL Facility Security Agent and the ABL Facility Secured Parties, on the other hand, shall each be
responsible for keeping themselves informed of (a) the financial condition of each Borrower and its Subsidiaries and all endorsers and/or guarantors of the Term Loan Obligations or the ABL Facility Obligations and (b) all other
circumstances bearing upon the risk of nonpayment of the ABL Facility Obligations or the Term Loan Obligations. The Term Loan Security Agent and Term Loan Secured Parties shall have no duty to advise the ABL Facility Security Agent or any ABL
Facility Secured Party of information known to it or them regarding such condition or any such circumstances or otherwise. The ABL Facility Security Agent and ABL Facility Secured Parties shall have no duty to advise the Term Loan Security Agent or
any Term Loan Secured Party of information known to it or them regarding such condition or any such circumstances or otherwise. In the event that either the Term Loan Security Agent or any of the Term Loan Secured Parties, on the one hand or the ABL
Facility Security Agent or any of the ABL Facility Secured Parties, on the other hand, in its or their sole discretion, undertakes at any time or from time to time to provide any such information to any other party hereto, it or they shall be under
no obligation (w) to make, and such informing party shall not make, any express or implied representation or warranty, 

  
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including with respect to the accuracy, completeness, truthfulness or validity of any such information so provided, (x) to provide any additional information or to provide any such
information on any subsequent occasion, (y) to undertake any investigation or (z) to disclose any information which, pursuant to accepted or reasonable commercial finance practices, such party wishes to maintain confidential or is
otherwise required to maintain confidential. 
 6.5. Submission to Jurisdiction; Waivers. (a) ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST ANY PARTY HERETO, WHETHER IN TORT, CONTRACT (AT LAW OR IN EQUITY) OR OTHERWISE, ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING
AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH
SECTION 6.6; AND (d) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND
BINDING SERVICE IN EVERY RESPECT. 
 (b) EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING
INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS
SECTION 6.5(b) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT. 
 6.6. Notices. All notices to the ABL Facility Secured Parties and the Term Loan Secured Parties
permitted or required under this Agreement shall also be sent to the ABL Facility Security Agent and the Term Loan Security Agent, respectively. Unless otherwise specifically provided herein, any notice hereunder shall be in writing and may be
personally served, telexed or sent by telefacsimile, e-mail or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier service and signed for against receipt thereof, upon receipt of
telefacsimile or telex, or three Business Days after depositing it in the United States mail with postage prepaid and properly addressed. Notices sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as 

  
 Page 62 

 
available, return e-mail or other written acknowledgement); provided that if not given during the normal business hours of the recipient, such notice or communication shall be deemed to
have been given at the opening of business on the next Business Day for the recipient. For the purposes hereof, the addresses of the parties hereto shall be as set forth below each party’s name on the signature pages hereto, or, as to each
party, at such other address as may be designated by such party in a written notice to all of the other parties. 
 6.7. Further
Assurances. The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, and the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, and each Grantor, agrees that each of them shall take
such further action and shall execute (without recourse or warranty) and deliver such additional documents and instruments (in recordable form, if requested) as the Term Loan Security Agent or the ABL Facility Security Agent may reasonably request
to effectuate the terms of and the lien priorities contemplated by this Agreement. Each Term Loan Secured Party, by its acceptance of the benefits of each Term Loan Document to which it is a party, agrees to be bound by the agreements herein made by
it and the Term Loan Security Agent representing it, on its behalf. Each ABL Facility Secured Party, by its acceptance of the benefits of each ABL Facility Document to which it is a party, agrees to be bound by the agreements herein made by it and
the ABL Facility Security Agent representing it, on its behalf. 
 6.8. APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

6.9. Binding on Successors and Assigns. This Agreement shall be binding upon the parties hereto, the Term Loan Secured Parties, the ABL
Facility Secured Parties and their respective successors and assigns. 
 6.10. Specific Performance. Each of the Term Loan Security
Agent and the ABL Facility Security Agent may demand specific performance of this Agreement. The Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, and the ABL Facility Security Agent, on behalf of itself and the ABL
Facility Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other defense which might be asserted to bar the remedy of specific performance in any action which may be brought by the Term Loan
Security Agent or the ABL Facility Security Agent, as the case may be. 
 6.11. Headings. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect. 

6.12. Counterparts. This Agreement may be executed in counterparts (and by different parties hereto in 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 Agreement or any document or instrument delivered in connection herewith by
telecopy or by email as a “.pdf” or “.tif” attachment shall be effective as delivery of a manually executed counterpart of this Agreement or such other document or instrument, as applicable. 

6.13. Authorization; No Conflict. Each of the parties hereto represents and warrants to all other parties hereto that the execution,
delivery and performance by or on behalf of such party to this Agreement has been duly authorized by all necessary action, corporate or otherwise, does not violate any provision of law, governmental regulation, or any agreement or instrument by
which such party is bound, and requires no governmental or other consent that has not been obtained and is not in full force and effect. 

  
 Page 63 

 6.14. No Third Party Beneficiaries. This Agreement and the rights and benefits hereof
shall inure to the benefit of the Term Loan Secured Parties, the ABL Facility Secured Parties and each of their respective successors and assigns. No other Person shall have or be entitled to assert rights or benefits hereunder other than the
Grantors under Section 6.3 and under any provision hereof purporting to preserve any right of, or directly affecting, any Grantor under this Agreement or any Term Loan Document or ABL Facility Document). 

6.15. Provisions Solely to Define Relative Rights. (a) The provisions of this Agreement are and are intended solely for the
purpose of defining the relative rights and remedies the Term Loan Secured Parties on the one hand and the ABL Facility Secured Parties on the other hand. Except as expressly provided in Section 6.14, none of the Borrowers, any other
Grantor or any other creditor thereof shall have any rights hereunder. Nothing in this Agreement is intended to or shall impair the obligations of each Borrower or any other Grantor, which are absolute and unconditional, to pay the Term Loan
Obligations and the ABL Facility Obligations as and when the same shall become due and payable in accordance with their terms. 
 (b)
Nothing in this Agreement shall relieve any Borrower or any other Grantor from the performance of any term, covenant, condition or agreement on such Borrower’s or such Grantor’s part to be performed or observed under or in respect of any
of the Collateral pledged by it or from any liability to any Person under or in respect of any of such Collateral or impose any obligation on any Security Agent to perform or observe any such term, covenant, condition or agreement on such
Borrower’s or such other Grantor’s part to be so performed or observed or impose any liability on any Security Agent for any act or omission on the part of such Borrower or such other Grantor relative thereto or for any breach of any
representation or warranty on the part of such Borrower or such other Grantor contained in this Agreement or any ABL Facility Document or any Term Loan Document, or in respect of the Collateral pledged by it. The obligations of each Borrower and
each other Grantor contained in this paragraph shall survive the termination of this Agreement and the discharge of such Borrower’s or such other Grantor’s other obligations hereunder. 

(c) Each of the Security Agents acknowledges and agrees that neither has made any representation or warranty with respect to the execution,
validity, legality, completeness, collectability or enforceability of any other ABL Facility Document or any Term Loan Document. Except as otherwise provided in this Agreement, each of the Security Agents and the Administrative Agents will be
entitled to manage and supervise their respective extensions of credit to each Borrower or any of its Subsidiaries in accordance with law and their usual practices, modified from time to time as they deem appropriate. 

6.16. Additional Grantors. Each Borrower will cause each Person that becomes a Grantor or is a Domestic Subsidiary (other than an
Excluded Subsidiary) required by any Term Loan Document or ABL Facility Document to become a party to this Agreement to become a party to this Agreement, for all purposes of this Agreement, by causing such Person to execute and deliver to the
parties hereto an Intercreditor Agreement Joinder, whereupon such Person will be bound by the terms hereof to the same extent as if it had executed and delivered this Agreement as of the date hereof. The Borrower Agent shall promptly provide each
Security Agent with a copy of each Intercreditor Agreement Joinder executed and delivered pursuant to this Section 6.16. 

6.17. Avoidance Issues. If any ABL Facility Secured Party or Term Loan Secured Party is required in any Insolvency or Liquidation
Proceeding or otherwise to turn over or otherwise pay to the estate of any Borrower or any other Grantor any amount (a “Recovery”), then such ABL Facility 

  
 Page 64 

 
Secured Party or Term Loan Secured Party, as applicable, shall be entitled to a reinstatement of ABL Facility Obligations or Term Loan Obligations, as applicable, with respect to all such
recovered amounts. If this Agreement shall have been terminated prior to such Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the
obligations of the parties hereto from such date of reinstatement. 
 6.18. Subrogation. (a) Subject to the Discharge of Term
Loan Obligations, with respect to the value of any payments or distributions in cash, property or other assets that the ABL Facility Secured Parties or ABL Facility Security Agent pay over to the Term Loan Security Agent or any of the other Term
Loan Secured Parties under the terms of this Agreement with respect to any Term Loan First Lien Collateral, the ABL Facility Secured Parties and the ABL Facility Security Agent shall be subrogated to the rights of the Term Loan Security Agent and
such other Term Loan Secured Parties; provided that, the ABL Facility Security Agent, on behalf of itself and the ABL Facility Secured Parties, hereby agrees not to assert or enforce all such rights of subrogation it may acquire as a result
of any payment hereunder until the Discharge of Term Loan Obligations has occurred. Each Borrower and each other Grantor acknowledges and agrees that, the value of any payments or distributions in cash, property or other assets received by the ABL
Facility Security Agent or the other ABL Facility Secured Parties and paid over to the Term Loan Security Agent or the other Term Loan Secured Parties pursuant to, and applied in accordance with, this Agreement, shall not relieve or reduce any of
the ABL Facility Obligations owed by each Borrower or any other Grantor under the ABL Facility Documents. 
 (b) Subject to the Discharge of
ABL Facility Obligations, with respect to the value of any payments or distributions in cash, property or other assets that the Term Loan Secured Parties or Term Loan Security Agent pay over to the ABL Facility Security Agent or any of the other ABL
Facility Secured Parties under the terms of this Agreement with respect to the ABL Facility First Lien Collateral, the Term Loan Secured Parties and the Term Loan Security Agent shall be subrogated to the rights of the ABL Facility Security Agent
and the other ABL Facility Secured Parties; provided that, the Term Loan Security Agent, on behalf of itself and the Term Loan Secured Parties, hereby agrees not to assert or enforce all such rights of subrogation it may acquire as a result
of any payment hereunder until the Discharge of ABL Facility Obligations has occurred. Each Borrower and each other Grantor acknowledges and agrees that, the value of any payments or distributions in cash, property or other assets received by the
Term Loan Security Agent or the other Term Loan Secured Parties and paid over to the ABL Facility Security Agent or the other ABL Facility Secured Parties pursuant to, and applied in accordance with, this Agreement, shall not relieve or reduce any
of the Term Loan Obligations owed by each Borrower or any other Grantor under the Term Loan Documents. 
 *  *  * 

  
 Page 65 

 IN WITNESS WHEREOF, the parties hereto have caused this Intercreditor Agreement to be executed by
their respective officers or representatives as of the day and year first above written. 
  

			
	PC INTERMEDIATE HOLDINGS, INC.
		
	By:	 	 /s/ Michael A. Correale

	Name:	 	Michael A. Correale
	Title:	 	Chief Financial Officer, Assistant Secretary
	
	PARTY CITY HOLDINGS INC.
	PARTY CITY CORPORATION
	ANAGRAM EDEN PRAIRIE PROPERTY HOLDINGS LLC
	ANAGRAM INTERNATIONAL, INC.
	ANAGRAM INTERNATIONAL HOLDINGS, INC.
	AM-SOURCE, LLC
	AMSCAN INC.
	AMSCAN NM LAND, LLC
	AMSCAN PURPLE SAGE LLC
		
	By:	 	 /s/ Michael A. Correale

	Name:	 	Michael A. Correale
	Title:	 	Vice President
	
	TRISAR, INC.
		
	By:	 	 /s/ Michael A. Correale

	Name:	 	Michael A. Correale
	Title:	 	Vice President & Assistant Treasurer
	
	US BALLOON MANUFACTURING CO., INC.
		
	By:	 	 /s/ Michael A. Correale

	Name:	 	Michael A. Correale
	Title:	 	Vice President, Treasurer

  
 Page 66 

							
	 Address:
  

277 Park Avenue
 New York, NY 10172
	 		 	 JPMORGAN CHASE BANK, N.A.,
 as ABL
Facility Security Agent
  

	 		 	By:	 	 /s/ Salvatore P. Demma

		 		 		 	 Name: Salvatore P. Demma
 Title: Authorized
Officer

			
	 Address:
  

60 Wall Street
 New York, NY 10005

Attention: Dusan Lazarov
 Telecopier: (212) 797-5690
	 		 	 DEUTSCHE BANK AG NEW YORK BRANCH, as Term Loan Security Agent

 

	 		 	By:	 	 /s/ Dusan Lazarov

	 		 		 	 Name: Dusan Lazarov
 Title:
Director

	 		 	  
 By:
	 	  
 /s/ Anca Trifan

	 		 		 	 Name: Anca Trifan
 Title: Managing
Director

  
 Page 67 

 EXHIBIT A 

to Intercreditor Agreement 
 FORM
OF 
 INTERCREDITOR AGREEMENT JOINDER 

The undersigned,
                                        , a
                                        , hereby
agrees to become party as [a Grantor] [an ABL Facility Security Agent] [a Term Loan Security Agent] under the Intercreditor Agreement dated as of August 19, 2015 (the “Intercreditor Agreement”) among PC INTERMEDIATE HOLDINGS,
INC. a Delaware corporation, PARTY CITY HOLDINGS INC., a Delaware corporation, PARTY CITY CORPORATION, a Delaware corporation, the other GRANTORS from time to time party thereto, JPMorgan Chase Bank, N.A. (“JPM”), as ABL Facility
Security Agent, and Deutsche Bank AG New York Branch (“DBNY”), as Term Loan Security Agent, as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, for all purposes thereof on the terms
set forth therein, and to be bound by the terms of the Intercreditor Agreement as fully as if the undersigned had executed and delivered the Intercreditor Agreement as of the date thereof. 

The provisions of Section 6 of the Intercreditor Agreement will apply with like effect to this Intercreditor Agreement Joinder. 

IN WITNESS WHEREOF, the parties hereto have caused this Intercreditor Agreement Joinder to be executed by their respective officers or
representatives as of                     , 20    . 

 

	
	[                                      
  ]

 
			
		
	By:	 	  

		 	Name:
		 	Title:Exhibit

Exhibit 4.1
BROWN & BROWN, INC.
1990 EMPLOYEE STOCK PURCHASE PLAN

     The Brown & Brown, Inc. 1990 Employee Stock Purchase Plan (hereafter referred to as the "Plan") was originally adopted the 24th day of January, 1990, by Brown & Brown, Inc. (formerly Poe & Brown, Inc. and Poe & Associates, Inc.), a Florida corporation.  This amended and restated Plan document reflects amendments to the Plan after the original adoption date and sets forth the terms and conditions of the Plan as of May 6, 2015:

     1.   Definitions. Except as otherwise expressly provided in this Plan, the following capitalized terms shall have the respective meanings hereafter ascribed to them:

		
	(a)
	“Alternate Offering Price” means 85% of the Fair Market Value of the Shares as of the last business day of the Purchase Period;

 
		
	(b)
	“Board” shall mean the Board of Directors of Brown;

		
	(c)
	“Brown” shall mean Brown & Brown, Inc. (formerly Poe & Brown, Inc. and Poe & Associates, Inc.);

		
	(d)
	“Code” shall mean the Internal Revenue Code of 1986, as amended;

		
	(e)
	“Committee” means the Employee Stock Purchase Plan Committee described in Article 4 hereof, as such Committee shall exist from time to time;

		
	(f)
	“Compensation” means an Employee's basic gross annual salary (including commissions, but excluding overtime pay, premium pay, profit participation distributions, or approved expenses) and bonuses as of a date specified by the Committee, projected on an annual basis;

		
	(g)
	“Corporation” means Brown & Brown, Inc. (formerly Poe & Brown, Inc. and Poe & Associates, Inc.) and each and all of any present and future subsidiaries;

		
	(h)
	“Effective Date” means the 10th business day of the first calendar month immediately following the Offering Period;

		
	(i)
	“Employee” shall be an employee of the Corporation;

		
	(j)
	“Fair Market Value” during such time as the Shares are not traded in any securities market shall be determined by a good faith effort of the Board, using its best efforts and judgment. During such time as the Shares are traded in a securities market but not listed upon an established stock exchange, the Fair Market Value per share shall be the mean between dealer "bid" and "ask" prices in the securities market in which it is traded, as reported by the National Association of Securities Dealers, Inc. If the Shares are listed upon an established stock exchange or on the National Market System of the National Association of Securities Dealers Automated Quotations System ("NASDAQ/NMS"), such Fair Market Value shall be deemed to be the closing price on such stock exchange or on NASDAQ/NMS, or if no sale of any Shares shall have been made on a valuation date, on the next preceding day on which there was such a sale. Subject to the foregoing, the Board shall have full authority and discretion in fixing Fair Market Value and shall be fully protected in doing so;

 

		
	(k)
	“Initial Offering Price” means 85% of the Fair Market Value of the Shares on the Effective Date;

		
	(l)
	“Offering Period” means the calendar month specified by the Committee pursuant to Article 5 hereof;

		
	(m)
	“Payroll Deduction Authorization Form” means the form specified from time to time by the Corporation whereby eligible Employees elect to participate in an offering under the Plan and to subscribe for a maximum number of shares of Common Stock;

		
	(n)
	“Purchase Period” means the period of 12 successive calendar months beginning on the first day of the calendar month immediately following the Effective Date;

		
	(o)
	“Shares” shall mean Brown & Brown, Inc.'s common stock, par value $.10 per share, or other securities resulting from an adjustment under Article 21 of this Plan;

		
	(p)
	“Subsidiary” shall mean any corporation that meets the definition of “Subsidiary Corporation” contained in Section 425(f) of the Code.

        2.     Purpose. The purpose of this Plan is to advance the interests of the Corporation and its stockholders, by facilitating the acquisition and ownership of Shares of Brown, upon the terms herein set forth, by Employees of the Corporation in order that their proprietary interest in the Corporation's continued success and their continuance as Employees of the Corporation may be encouraged.

3.    Shares Offered. The total number of Shares available under the Plan shall be 11,000,000 Shares, which Shares may be either authorized but unissued or reacquired Shares. If any subscription or portion thereof shall expire, lapse, or terminate for any reason without the rights under such subscription have been exercised in full, the unpurchased Shares covered thereby shall be added to the Shares otherwise available for offerings under the Plan.

4.    Administration. The Plan shall be administered by an Employee Stock Purchase Plan Committee, which shall consist of three persons appointed from time to time by the Board, at least one of whom shall be a member of the Board. No member of the Board or the Committee shall be liable for any action, omission to act, or determination made in good faith. Subject to the express provisions of the Plan, the Committee shall have authority to make rules and regulations for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent it shall deem expedient to carry it into effect, and to shall be the sole and final judgment of such expediency. Any determination of the Committee concerning the matters referred to in this Article or the construction or interpretation by the Committee of any provision of the Plan shall be conclusive unless otherwise determined by the Board.

The Board may from time to time remove members from, or add members to, the Committee. Vacancies on the Committee, however caused, shall be filled by the Board. The Committee shall select one of its members as chairman, and shall hold meetings at such times and places as it may determine. A majority of the Committee, acting at any meeting in which a quorum is present, or acts reduced to or approved in writing by a majority of the entire Committee, shall be the valid acts of the Committee.

5.    Offerings. Once during each successive period of twelve calendar months, commencing on the first day of the Offering Period specified by the Committee for the first such offering, the Corporation may make offerings to eligible Employees to purchase Shares under the Plan. With respect to each such offering, the Committee shall specify the Offering Period and the maximum number of Shares that may be 

purchased under the offering by all eligible Employees.

6.    Eligibility. Any person who is employed by the Corporation, other than (a) Employees whose customary employment is 20 hours or less per week and (b) Employees whose customary employment is for not more than five months in any calendar year, shall be eligible to participate in the Plan beginning on the first day of the month following that person’s completion of 30 days employment with the Corporation. Notwithstanding the 30-day employment requirement specified above, the Committee, in its sole discretion, may waive this requirement in the case of any Employee of subsidiaries acquired or organized by the Corporation. The word "Employees" shall includes officers but not persons who are solely directors.

Notwithstanding anything herein to the contrary, no Employee shall be permitted to subscribe for any Shares under the Plan if such Employee immediately after such subscription, owns Shares (including all Shares that may be purchased under outstanding subscriptions under the Plan or outstanding options under any stock option plan of the Corporation) possessing 5% or more of the total combined voting power or value of all classes of stock of the Corporation or of any parent. For purposes of determining ownership percentage, the attribution rules of Section 425(d) of the Code shall apply. No Employee shall be allowed to subscribe for any Shares under the Plan to the extent that such subscription would permit his rights to purchase Shares under all stock purchase plans of the Corporation and its subsidiary corporations to accrue (within the meaning of Section 423(b)(8) of the Code) at a rate that exceeds $25,000 (or such amounts as may be specified from time to time in Section 423(b)(8) of the Code) of fair market value of such Shares (determined on the Effective Date) for each calendar year in which such subscription is outstanding at any time.

7.    Participation. An eligible Employee may subscribe to purchase Shares by completing and mailing or delivering a Payroll Deduction Authorization Form to the Corporation during the Offering Period (or, in the case of new employees, within 30 days after their hire date), and authorizing in such form payroll deductions of even dollar amounts not less than $2.00 per pay period, and not exceeding 10% of his Compensation (pro-rated, based on date of eligibility). The execution and delivery of such form by an eligible Employee shall be deemed to be a subscription to purchase a number of whole and fractional Shares (subject to Articles 12 and 23) determined by dividing the aggregate annual payroll deductions authorized in such form by the Initial Offering Price. Rights under the subscription shall be exercisable in the manner and to the extent hereinafter provided and to the extent not so exercised shall lapse as of the last day of the Purchase Period.

8.    Effective Date and Purchase Period. All valid subscriptions completed and received by the Corporation within the appropriate time frame (and, in the discretion of the Committee, those subscriptions completed during the Offering Period and received by the Corporation prior to the Effective Date) will be deemed accepted on the Effective Date, subject to any allocation of Shares pursuant to Section 23. On the Effective Date, each Employee who has completed and delivered a valid subscription shall be deemed to have received an option to purchase a maximum number of Shares equal to the number of whole and fractional Shares for which such Employee subscribed, subject to allotment as provided in Article 23. Notwithstanding the possibility that the Alternate Offering Price may be lower than the Initial Offering Price, in no event may an Employee purchase a greater number of Shares than the number determined pursuant to Article 7. Subscriptions for Shares shall be payable in equal installments during the Purchase Period.

9.    Method of Payment. Payment shall be made by payroll deductions of approximately equal amounts for each Employee's pay period, which shall aggregate the purchase price of the Shares subject to subscription, based on the Initial Offering Price. However, if it is not practicable to make such calculation at the commencement of the Purchase Period, the Committee may select another basis for determining the rate of deductions during the Purchase Period.

10.     Deductions Changes and Cancellation. An Employee may at any time decrease his payroll deduction and his subscription by filing a new Payroll Deduction Authorization Form. An Employee may also cancel future payroll deductions (without affecting the balance in his account at the time of such cancellation) by written notice to the Corporation. Any such change or cancellation will become effective as soon as practicable after receipt of the form or appropriate notice. A payroll deduction may be reduced only once during any Purchase Period and an Employee who cancels future payroll deductions may not again authorize payroll deductions during the Purchase  Period in which such cancellation becomes effective. An Employee may not  increase his payroll deduction at any time during the Purchase Period.

11.    Accumulated Deductions and Interest. The Corporation will accumulate and hold for each participating Employee's account the amounts paid by him. No interest will be paid or allowed on any money paid by the participating Employees under any circumstances.

12.    Withdrawal of Funds. The Corporation will maintain a separate payroll deduction account for each participating Employee. An Employee may at any time during the Purchase Period and for any reason permanently withdraw any full balance accumulated in his account that has not been applied toward the purchase of the Shares subject to his subscription, and thereby withdraw from participation in an offering. Any such withdrawal shall be effected by written notice to the Corporation. A withdrawing Employee may not thereafter participate in that offering, but shall, if he is otherwise eligible, be permitted to participate in any future offering under the Plan.  Partial withdrawals will not be permitted.

13.    Purchase Price and Purchase of Shares. Subject to Article 14, the purchase price for Shares under any offering will be the lesser of (a) the Initial Offering Price, or (b) the Alternate Offering Price. In no event, however, shall the purchase price be less than the par value per share on the last day of the Purchase Period.

On the last business day of the Purchase Period, the Alternate Offering Price shall be ascertained and the account of each participating Employee shall be totaled. Shares subject to a subscription may be purchased only with funds accumulated, pursuant to the provisions of this Plan, in a participating Employee's account.  The amount in the participating Employee’s account shall be applied to the purchase of the number of whole and fractional Shares determined by dividing such amount by the lower of the Initial Offering Price or the Alternate Offering Price, and the Employee shall be deemed to have exercised his option to purchase such Shares (up to the number of Shares subject to his subscription) at such lower price. His account shall be charged for the amount of the purchase price, a certificate, representing the aggregate number of whole and fractional Shares purchased, shall be issued to him as of such date, and delivered to him as promptly as practicable thereafter.

Unless the Committee otherwise determines, any original issue stamp taxes will be paid by deductions from an Employee's account or in cash by the Employee.

14.    Prepayment of Subscription. Each participating Employee shall have the right, at any time after the third calendar month in the Purchase Period, to prepay the purchase price; provided that such prepayment shall be based upon the Initial Offering Price and no refunds shall be made. Partial prepayments will not be permitted.

15.    Interruption of Employment and Leaves of Absence. In the event an Employee's employment is temporarily interrupted because of military or sick leave or other bona fide leave of absence approved by the Committee, the Employee may elect to continue to participate in the Plan by failing to withdraw as provided in Article 12. No payroll deductions or other contributions need be made during the period of such interruption but the Employee may, prior to the last business day of the Purchase Period, pay to the Corporation 

directly for credit to his account, and not by way of payroll deduction, the aggregate amount that would have been deducted pursuant to such Employee's Payroll Deduction Authorization Form had his employment not been interrupted. Such payment may be made in a lump sum or in installments terminating before the last business day of the Purchase Period, as the Committee shall determine. Failure to make or arrange for such payment in full before the last business day of the Purchase Period shall not cause the subscription to be cancelled with respect to the amount accumulated in the Employee's account. Notwithstanding the foregoing, the provisions of this Article shall apply on if an interruption of employment does not exceed 90 days or, if it does exceed 90 days, if the Employee's right to reemployment after such interruption is guaranteed by either statute or contract. Otherwise, any interruption of employment shall be deemed a termination and shall be governed by Article 18 hereof.

16.    Registration of Certificates. Certificates representing Shares purchased under this Plan may be registered in the name of the Employee, or, if he so indicates on his Payroll Deduction Authorization Form, in his name and another jointly with the right of survivorship.

17.     Rights as a Stockholder. None of the rights or privileges of a stockholder of the Corporation shall exist with respect to Shares subject to this Plan until the date as of which certificates representing such Shares are issued.

18.     Rights on Retirement, Death or Termination of Employment. In the event of a participating Employee's retirement, death or termination of employment, no payroll deduction shall be taken from any compensation due and owing to him at such time. The amount in the Employee's account shall be refunded  to the Employee or, in the event of his death, the person or persons to whom his right under the subscription passes by will or the laws of descent and distribution (including his estate during the period of administration).  An Employee of a Corporation that ceases to be a subsidiary shall be deemed to have terminated his employment for purposes of this Article as of the date such Corporation ceases to be a subsidiary unless as of such date, the Employee shall become an Employee of the Corporation or any subsidiary then included in the Plan.

19.     Rights Not Transferable. Except as provided in Article 18, no participating Employee shall have any right to sell, assign, transfer, pledge or otherwise dispose of or encumber either his right to participate in the Plan or his interest in the fund accumulated for his benefit, and such right and interest shall not be liable for or subject to the debts, contracts or liabilities of such Employee. If any such action is taken by the Employee, or if any claim is asserted by another party with respect to such right and interest, such action or claim will be treated as notice of withdrawal, and except as may otherwise be required by law, refund will be made to such Employee as provided in Article 11.

20.     Application of Funds. The proceeds received by the Corporation from the sale of Shares pursuant to this Plan will be used for general corporate purposes. The Corporation shall not be required to segregate accumulated payroll deductions under the Plan.

21.    Adjustment Upon Change of Shares. If a reorganization, merger, consolidation, reclassification, recapitalization, combination or exchange of shares, stock split, stock dividend, rights offering or other event affecting Shares of the Corporation occurs, then the number and class of Shares authorized under this Plan, the number and class of Shares then subject to outstanding subscriptions, and the Initial Offering Price or the Alternate Offering Price shall be equitably adjusted by the Board to reflect such changes.

22.     Amendment and Termination of the Plan. To the extent permitted by law, the Board may alter, amend or terminate this Plan from time to time, provided, however, that except as provided in Article 21 

hereof, and except with respect to changes or additions that are intended to cause the Plan to comply with Section 423 of the Code, the Board may not, without approval by the holders of a majority of the Shares of Common Stock of the Corporation (a) increase the maximum number of Shares that may be purchased under the Plan, or (b) reduce the purchase price per Share, or (c) make any change or addition that is inconsistent with the requirements of Section 423 of the Code and the regulations promulgated thereunder. No amendment of the Plan may, without the consent of the holder of any outstanding subscription, materially and adversely affect his rights as respects such subscription.

This Plan shall terminate (a) on the day that all the Shares authorized for sale under the Plan have been purchased, or (b) when terminated by the Board at its sole discretion. Upon termination of the Plan and the exercise or lapse of all subscription rights hereunder, all amounts remaining in the accounts of participating Employees shall be promptly refunded.

23.     Allocation of Shares. If the total number of Shares that Employees elect to purchase under any offering exceeds the Shares available for purchase under that offering, the Committee shall make a pro-rata allocation of all the available Shares among such participating Employees, based upon the ratio that the dollar amount of each Employee's subscription bears to the aggregate dollar amount of all participating Employees' subscriptions. Notwithstanding the foregoing, if the Committee shall at any time determine that the foregoing method of allocation is inconsistent with the requirements of Section 423 of the Code, then subscriptions for any additional Shares in excess of the Shares so allocated shall be deemed to have lapsed.

24.     Governmental and Other Regulations. The obligation of the Corporation to issue or transfer and deliver Shares under this Plan shall be subject to (a) approval of this Plan by the Corporation's stockholders, (b) compliance with all applicable laws, governmental rules and regulations and administrative action, and (c) the effectiveness of a Registration Statement under the Securities Act of 1933, as amended, with respect to such issue or transfer, if deemed necessary or appropriate by counsel for the Corporation.

25.     Approval of Stockholders. This Plan shall terminate if is not approved by the affirmative vote of the holders of a majority of the outstanding shares of the Corporation, which approval must occur within the period beginning twelve months before and ending twelve months after the Plan is adopted by the Board.

26.     Notices. All notices or other communications by a participating Employee to the Corporation under or in connection with the Plan shall be deemed to have been given only when received by the Corporation or when received in the form specified by the Corporation at the location, or by the person, designated by the Corporation for the receipt thereof.

27.     Indemnification of the Board. In addition to such other rights of indemnification as they may have as directors, officer or Employees the members of the Board and the members of the Committee shall be indemnified by the Corporation against the reasonable expenses, including attorneys' fees actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Corporation) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such director is liable for negligence or misconduct in the performance of his duties; provided that within 60 days after the institution of any such action, suit or proceeding a director shall in writing offer the Corporation the opportunity, at its own expense, to handle and defend the same.

28.     Tenure. A participant's right, if any, to continue to serve the Corporation as an officer, Employee 

or otherwise, will not be enlarged or otherwise affected by his designation as participant under this Plan, and such designation will not in any way restrict the right of the Corporation to terminate at any time the employment or affiliation of any participant for cause or otherwise.

29.     Expenses of Plan. The expenses of the Plan will be borne by the Corporation.

30.     Number and Gender. Unless otherwise clearly indicated in this Plan, words in the singular or plural shall include the plural and singular, respectively, where they would so apply, and words in the masculine or neuter gender shall include the feminine, masculine or neuter gender where applicable.

31.     Application Law. The validity, interpretation, and enforcement of this Plan are governed in all respects of the laws of Florida.

Adopted by the Board of Directors:        January 24, 1990

Approved by Shareholders:            April 26, 1990; April 24, 2003; May 6, 2015

As amended, effective April 19, 1995; April 30, 1996; April 29, 1990; August 23, 2000; January 24, 2001; October 31, 2001; November 21, 2001; April 24, 2003; July 1, 2013, May 6, 2015

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