Document:

Amended and Restated Credit Agreement

  
 EXHIBIT 10.1

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*****]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 Dated as of May 21, 2009

 among 

SEARS HOLDINGS CORPORATION 
 and 
 SEARS ROEBUCK ACCEPTANCE CORP. 

and 
 KMART
CORPORATION, 
 as Borrowers 
 and 
 THE LENDERS NAMED HEREIN, 

and 
 THE
ISSUING LENDERS NAMED HEREIN, 
 and 
 BANK OF AMERICA, N.A., 
 as Administrative Agent, Co-Collateral Agent and
Swingline Lender 
 and 
 WELLS FARGO RETAIL FINANCE, LLC, 
 and 

GENERAL ELECTRIC CAPITAL CORPORATION 
 as Co-Syndication Agents and Co-Collateral Agents 
 and 

JPMORGAN CHASE BANK, N.A. 
 and 
 BARCLAYS BANK PLC, 

as co-Documentation Agents 
 and 
 BANC OF AMERICA SECURITIES LLC, WELLS FARGO RETAIL FINANCE, LLC and GE
CAPITAL 
 MARKETS, INC., as Joint Lead Arrangers and Joint Bookrunners 

  
 TABLE OF CONTENTS

  

					
	 	  	Page	 
	ARTICLE I	  			
		
	DEFINITIONS AND ACCOUNTING TERMS	  			
		
	 SECTION 1.01. Certain Defined Terms
	  	 	1	  
	 SECTION 1.02. Computation of Time Periods
	  	 	35	  
	 SECTION 1.03. Accounting Terms
	  	 	35	  
	 SECTION 1.04. Other Interpretive Provisions
	  	 	35	  
		
	ARTICLE II	  			
		
	AMOUNTS AND TERMS OF THE ADVANCES	  			
		
	 SECTION 2.01. The Revolving Advances
	  	 	36	  
	 SECTION 2.02. Making the Revolving Advances
	  	 	36	  
	 SECTION 2.03. The Swingline Advances
	  	 	37	  
	 SECTION 2.04. Making the Swingline Advances
	  	 	37	  
	 SECTION 2.05. Fees
	  	 	38	  
	 SECTION 2.06. Optional Termination or Reduction of the Commitments
	  	 	39	  
	 SECTION 2.07. Repayment of Advances
	  	 	39	  
	 SECTION 2.08. Interest on Advances
	  	 	39	  
	 SECTION 2.09. Interest Rate Determination
	  	 	41	  
	 SECTION 2.10. Optional Conversion of Revolving Advances
	  	 	41	  
	 SECTION 2.11. Optional and Mandatory Prepayments of Advances
	  	 	41	  
	 SECTION 2.12. Increased Costs
	  	 	42	  
	 SECTION 2.13. Illegality
	  	 	43	  
	 SECTION 2.14. Payments and Computations
	  	 	43	  
	 SECTION 2.15. Taxes
	  	 	44	  
	 SECTION 2.16. Sharing of Payments, Etc
	  	 	46	  
	 SECTION 2.17. Use of Proceeds of Advances
	  	 	46	  
	 SECTION 2.18. Increase in Commitments and Addition of Term Loan Tranche
	  	 	46	  
	 SECTION 2.19. Permitted Overadvances
	  	 	48	  
	 SECTION 2.20. Effective Date Adjustments
	  	 	49	  
		
	ARTICLE III	  			
		
	AMOUNT AND TERMS OF THE LETTERS OF CREDIT	  			
		
	 SECTION 3.01. L/C Commitment
	  	 	49	  
	 SECTION 3.02. Procedure for Issuance of Letter of Credit
	  	 	50	  
	 SECTION 3.03. Fees and Other Charges
	  	 	50	  
	 SECTION 3.04. Letter of Credit Participations
	  	 	50	  
	 SECTION 3.05. Reimbursement Obligation of the Borrowers
	  	 	51	  
	 SECTION 3.06. Obligations Absolute
	  	 	52	  
	 SECTION 3.07. Letter of Credit Payments
	  	 	52	  
	 SECTION 3.08. Applications
	  	 	52	  
	 SECTION 3.09. Use of Letters of Credit
	  	 	52	  
	 SECTION 3.10. Currency Equivalents Generally
	  	 	52	  

  
 i 

  

					
	ARTICLE IV	  
		
	CONDITIONS TO EFFECTIVENESS	  			
		
	 SECTION 4.01. Conditions Precedent to Effectiveness
	  	 	52	  
	 SECTION 4.02. Conditions Precedent to Each Extension of Credit
	  	 	54	  
	 SECTION 4.03. Effective Date
	  	 	55	  
		
	ARTICLE V	  			
		
	REPRESENTATIONS AND WARRANTIES	  			
		
	 SECTION 5.01. Representations and Warranties of the Borrowers
	  	 	55	  
		
	ARTICLE VI	  			
		
	COVENANTS	  			
		
	 SECTION 6.01. Affirmative Covenants
	  	 	59	  
	 SECTION 6.02. Negative Covenants
	  	 	67	  
	 SECTION 6.03. Financial Covenant
	  	 	70	  
		
	ARTICLE VII	  			
		
	EVENTS OF DEFAULT	  			
		
	 SECTION 7.01. Events of Default
	  	 	70	  
		
	ARTICLE VIII	  			
		
	THE AGENT and co-collateral agents	  			
		
	 SECTION 8.01. Resignation of the Original Agent
	  	 	73	  
	 SECTION 8.02. Appointment
	  	 	73	  
	 SECTION 8.03. Delegation of Duties
	  	 	74	  
	 SECTION 8.04. Exculpatory Provisions
	  	 	74	  
	 SECTION 8.05. Reliance by Agent
	  	 	74	  
	 SECTION 8.06. Notice of Default
	  	 	74	  
	 SECTION 8.07. Non-Reliance on Agents and Other Lenders
	  	 	75	  
	 SECTION 8.08. Reports and Financial Statements
	  	 	75	  
	 SECTION 8.09. Indemnification
	  	 	76	  
	 SECTION 8.10. Agent in Its Individual Capacity
	  	 	76	  
	 SECTION 8.11. Successor Agent
	  	 	76	  
	 SECTION 8.12. Co-Documentation Agents and Syndication Agent
	  	 	77	  
	 SECTION 8.13. Defaulting Lenders
	  	 	77	  
		
	ARTICLE IX	  			
		
	MISCELLANEOUS	  			
		
	 SECTION 9.01. Amendments, Etc.
	  	 	78	  
	 SECTION 9.02. Notices, Etc.
	  	 	78	  
	 SECTION 9.03. No Waiver; Remedies
	  	 	79	  
	 SECTION 9.04. Costs and Expenses
	  	 	79	  
	 SECTION 9.05. Right of Set-off
	  	 	80	  
	 SECTION 9.06. Binding Effect; Effectiveness
	  	 	80	  
	 SECTION 9.07. Assignments and Participations
	  	 	81	  
	 SECTION 9.08. Confidentiality
	  	 	83	  
	 SECTION 9.09. Governing Law
	  	 	83	  

  
 ii 

  

					
	 SECTION 9.10. Execution in Counterparts
	  	 	83	  
	 SECTION 9.11. Jurisdiction, Etc.
	  	 	83	  
	 SECTION 9.12. WAIVER OF JURY TRIAL
	  	 	83	  
	 SECTION 9.13. Release of Collateral or Guarantee Obligation
	  	 	84	  
	 SECTION 9.14. USA PATRIOT Act Notice
	  	 	84	  
	 SECTION 9.15. Integration
	  	 	84	  
	 SECTION 9.16. Replacement of Lenders
	  	 	84	  
	 SECTION 9.17. Existing Credit Agreement Amended and Restated
	  	 	85	  

  
 iii

  

			
	SCHEDULES	  	
		
	Schedule IA	  	Pricing Grid
		
	Schedule IB	  	Restated Commitment Fee Grid
		
	Schedule 1.01	  	Lenders; Commitments
		
	Schedule 1.02	  	Existing Letters of Credit
		
	Schedule 5.01(n)	  	Pension Plan Issues
		
	Schedule 5.01(p)	  	UCC Filing Jurisdictions
		
	Schedule 5.01(w)	  	Labor Matters
		
	Schedule 6.01(j)	  	Financial and Collateral Reports
		
	Schedule 6.01(m)(i)(B)	  	Blocked Account Banks
		
	Schedule 6.02(d)	  	Restricted Payments
		
	EXHIBITS	  	
		
	Exhibit A	  	Form of Notice of Borrowing
		
	Exhibit B	  	Form of Assignment and Acceptance
		
	Exhibit C	  	Form of Borrowing Base Certificate
		
	Exhibit D	  	Form of Amended and Restated Guarantee and Collateral Agreement
		
	Exhibit E	  	Form of Credit Card Notification
		
	Exhibit F	  	Form of Intercreditor Agreement (Collateral)
		
	Exhibit G	  	Form of Intercreditor Agreement (Collateral and Other Property)
		
	Exhibit H	  	Form of Customs Broker Agreement
		
	Exhibit I	  	Form of Third Party Payor Notification
		
	Exhibit J:	  	Form of Compliance Certificate

  
 iv 

  
 AMENDED AND RESTATED
AGREEMENT (this “Agreement”) dated as of May 21, 2009, among SEARS HOLDINGS CORPORATION, a Delaware corporation (“Holdings”), SEARS ROEBUCK ACCEPTANCE CORP., a Delaware corporation (“SRAC”),
KMART CORPORATION, a Michigan corporation (“Kmart Corp.”), the banks, financial institutions and other institutional lenders listed on the signature pages hereof (the “Lenders”), the ISSUING LENDERS party hereto,
BANK OF AMERICA, N.A. (the “Bank”), as administrative agent (the “Agent”), Co-Collateral Agent, and Swingline Lender, WELLS FARGO RETAIL FINANCE, LLC (“WFRF”) and GENERAL ELECTRIC CAPITAL
CORPORATION (“GECC”), as co-collateral agents (collectively, with the Bank in such capacity, the “Co-Collateral Agents”) and as Co-Syndication Agents, JPMORGAN CHASE BANK, N.A. and BARCLAYS BANK PLC, as
co-documentation agents (the “Co-Documentation Agents”), and BANC OF AMERICA SECURITIES LLC (“BAS”), WELLS FARGO RETAIL FINANCE, LLC and GE CAPITAL MARKETS, INC., as joint lead arrangers and joint bookrunners
(collectively, the “Lead Arrangers”). 
 W I T N E S S E
T H: 
 WHEREAS, Holdings, SRAC, Kmart Corp., the Lenders, Citicorp USA, Inc. and Bank of America, N.A., as
syndication agents, Barclays Bank PLC, Lehman Commercial Paper Inc., HSBC Bank USA, Merrill Lynch Bank USA, Morgan Stanley Senior Funding, Inc., The Royal Bank of Scotland, PLC and Wachovia Bank National Association, as documentation agents, J.P.
Morgan Securities Inc., Citigroup Global Marketers Inc., and Banc of America Securities LLC, as lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., as administrative agent (the “Original Agent”), are party to that
certain U.S. $4,000,000,000 Five-Year Credit Agreement dated as of February 22, 2005 (as amended from time to time and in effect, the “Existing Credit Agreement”); 

WHEREAS, in accordance with Section 8.09 of the Existing Credit Agreement, (i) the Original Agent desires to resign as Agent
under the Existing Credit Agreement and the other Loan Documents, (ii) the Required Lenders desire to appoint Bank of America, N.A. as successor Agent, and (iii) the Borrowers desire to approve the Bank’s appointment as successor
Agent, each as provided herein; and 
 WHEREAS, in accordance with Section 9.01 of the Existing Credit Agreement, the
Borrowers, Holdings, the Required Lenders (as defined in the Existing Credit Agreement) and the Agent desire to amend and restate the Existing Credit Agreement as provided herein. 

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and for good and valuable
consideration, the receipt of which is hereby acknowledged, the undersigned hereby agree that the Existing Credit Agreement shall be amended and restated, in its entirety to read as follows: 

ARTICLE I 

DEFINITIONS AND ACCOUNTING TERMS 
 SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms
of the terms defined): 
 “Accelerated Borrowing Base Delivery Event” means either (i) the
occurrence and continuance of any Event of Default, or (ii) the failure of the Borrowers for three (3) days (whether or not consecutive) during any thirty (30) day period to maintain Capped Excess Availability equal to at least 25% of
the Line Cap. For purposes of this Agreement, the occurrence of an Accelerated Borrowing Base Delivery Event shall be deemed continuing at the Co-Collateral Agents’ option (x) so long as such Event of Default shall be continuing, and/or
(y) (1) if the Accelerated Borrowing Base Delivery Event arises as a result of the Borrowers’ failure to maintain Capped Excess Availability as required hereunder during the Holiday

 
Season, until the first day Capped Excess Availability exceeds 25% of the Line Cap, in which case an Accelerated Borrowing Base Delivery Event shall no longer be deemed to be continuing for
purposes of this Agreement, and (2) if the Accelerated Borrowing Base Delivery Event arises as a result of the Borrowers’ failure to maintain Capped Excess Availability as required hereunder during any time other than the Holiday Season,
until Capped Excess Availability has exceeded 25% of the Line Cap for thirty (30) consecutive calendar days, in which case an Accelerated Borrowing Base Delivery Event shall no longer be deemed to be continuing for purposes of this Agreement.
The termination of an Accelerated Borrowing Base Delivery Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Accelerated Borrowing Base Delivery Event in the event that the conditions set forth in clauses
(i) or (ii) hereof again arise. 
 “ACH” means automated clearing house transfers.

 “Acquisition” means, with respect to any Person (a) a purchase of a controlling interest
in, the equity interests of any other Person, (b) a purchase or other acquisition of all or substantially all of the assets or properties of, another Person or of any business unit of another Person, or (c) any merger or consolidation of
such Person with any other Person or other transaction or series of transactions resulting in the acquisition of all or substantially all of the assets, or a controlling interest in the equity interests, of any Person, in each case in any
transaction or group of transactions which are part of a common plan. 
 “Additional Commitment
Lender” shall have the meaning provided therefor in Section 2.18(d). 
 “Adjusted
Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent deducted in determining Consolidated Net Income for such period, the sum of (i) Consolidated
Interest Expense for such period, (ii) income tax expense for such period, (iii) all amounts attributable to depreciation and amortization expense for such period, (iv) any items of loss resulting from the sale of assets other than in
the ordinary course of business for such period, (v) any non-cash charges for tangible or intangible impairments or asset write downs for such period (excluding any write downs or write-offs of Inventory other than write-downs or write-offs of
Inventory related to up to 100 store closings in any four consecutive fiscal quarters), and (vi) any other non-cash charges for such period (including non-cash charges arising from share-based payments to employees or directors, but excluding
(1) any non-cash charge already added back to Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period, (2) any non-cash charge that relates to the write-down or write-off of Inventory other than
write-downs or write-offs of Inventory related to up to 100 store closings in any four consecutive fiscal quarters, and (3) non-cash charges for which a cash payment is required to be made in that or any other period), minus
(b) without duplication and to the extent included in Consolidated Net Income for such period, (i) any items of gain resulting from the sale of assets other than in the ordinary course of business for such period, (ii) any cash
payments made during such period in respect of non-cash charges described in clause (a)(vi) taken in a prior period and (iii) any non-cash items of income for such period, all calculated on a Consolidated basis in accordance with GAAP
(excluding any non-cash income already deducted from Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period). 
 “Adjustment Date” shall have the meaning provided therefor in Schedule IA. 
 “Advance” means any advance by a Lender to any Borrower as part of a Borrowing. 
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of
such Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of such Person by contract or otherwise. 
 “Agent” has the meaning provided in the Preamble, or any successor thereto. 

  
 2 

  

“Agent’s Account” means the account of the Agent maintained by the Agent at Bank of America, N.A.,
Account No. [Omitted]. 
 “Aggregate Commitments” means the Commitments of all the Lenders.
As of the Effective Date the Aggregate Commitments are $4,118,620,000. 
 “Applicable Lending
Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate Advance. 

“Applicable Margin” means, initially, (a) 0.875% per annum for Eurodollar Rate Advances and
(b) 0% per annum for Base Rate Advances; provided, that on and after the first Adjustment Date occurring after the Effective Date, the Applicable Margin will be determined pursuant to the Pricing Grid. 

“Application” means an application, in such form as the Issuing Lender may specify from time to time,
requesting the Issuing Lender to open a Letter of Credit. 
 “Approved Fund” means any Fund that
is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible
Assignee, and accepted by the Agent, in substantially the form of Exhibit B hereto. 

“Authorized Officer” means, as to Holdings, any Borrower or any other Loan Party, its president, chief
executive officer, chief financial officer, vice president and controller, vice president and treasurer, vice president, finance, executive vice president, finance or any other person designated by it and acceptable to the Agent. Any document
delivered hereunder that is signed by an Authorized Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Authorized Officer
shall be conclusively presumed to have acted on behalf of such Loan Party. 
 “Availability
Reserves” means, without duplication of any other reserves or items that are otherwise addressed or excluded through eligibility criteria, such reserves as any Co-Collateral Agent from time to time determines in its Permitted Discretion as
being appropriate (a) to reflect the impediments to the Co-Collateral Agents’ ability to realize upon the Collateral, (b) to reflect claims and liabilities that such Co-Collateral Agent determines will need to be satisfied in
connection with the realization upon the Collateral, (c) to reflect criteria, events, conditions, contingencies or risks which adversely affect any component of the Borrowing Base, or (d) to reflect that a Default or an Event of Default
then exists. Without limiting the generality of the foregoing, Availability Reserves may include, in any Co-Collateral Agent’s Permitted Discretion (but are not limited to) reserves based on: (i) customs duties, and other costs to release
Inventory which is being imported into the United States, (ii) outstanding Taxes and other governmental charges, including, without limitation, ad valorem, real estate, personal property, sales, and other Taxes and claims of the PBGC, which may
have priority over the interests of the Co-Collateral Agents in the Collateral, (iii) salaries, wages and benefits due to employees of any Loan Party, (iv) reasonably anticipated changes in the Net Orderly Liquidation Value between
appraisals, (v) warehousemen’s or bailees’ charges and other Permitted Encumbrances which may have priority over the interests of the Co-Collateral Agents in the Collateral, (vi) after the occurrence and during the continuance of
a Cash Dominion Event, Cash Management Reserves, (vii) after the occurrence and during the continuance of a Cash Dominion Event, Bank Products Reserves, (viii) after the occurrence and during the continuance of a Cash Dominion Event,
amounts due to vendors on account of consigned goods and commissions due to Persons which operate Dealer Stores, (ix) rent expense at leased Stores and DC locations, (x) royalties payable to non-Loan Parties in respect of licensed
merchandise (other than the Martha Stewart Reserve), (xi) the Martha Stewart Reserve, (xii) the Gift Card Liability Reserve, (xiii) Customer Deposits Reserve, (xiv) PACA Liability Reserves, (xv) PASA Liability Reserves,
(xvi) after the occurrence and during the continuance of a Cash 

  
 3 

 
Dominion Event, amounts due to any state’s lottery commission or other equivalent agency, authority or entity, or to any other Governmental Authority involved in the administration or
regulation of lotteries, (xvii) Credit Card Receivables owed to Sears Protection Company (PR), Inc. and its Subsidiaries, provided that, until the Co-Collateral Agents have received the initial commercial finance examination after the Effective
Date (at which time the Co-Collateral Agents may adjust such reserve), such Availability Reserve shall not exceed 1% of all Credit Card Receivables of the Loan Parties, and (xviii) the Debt Maturity Reserve. Upon the determination by any
Co-Collateral Agent that an Availability Reserve should be established or modified, such Co-Collateral Agent shall notify the Agent in writing and the Agent shall thereupon establish or modify such Availability Reserve, subject to the expiration of
the Reserve Notice Period. 
 “Available Cash” means, on any date, (a) the aggregate amount
of cash and Cash Equivalents of Holdings and its Subsidiaries on such date (determined on a Consolidated basis and in accordance with GAAP) minus (b) $125,000,000. 

“Available Commitment” means as to any Lender at any time, an amount equal to the excess, if any, of
(a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of Credit then outstanding; provided, that in calculating any Lender’s Extensions of Credit for the purpose of determining such
Lender’s Available Commitment pursuant to Section 2.05(a), the aggregate principal amount of Swingline Advances then outstanding shall be deemed to be zero. 

“Bank” has the meaning provided in the Preamble and its successors. 

“Bank Products” means any services or facilities provided to any Loan Party by any Lender or any of its
Affiliates on account of (a) each Swap Contract that (x) is in effect on the Effective Date with a counterparty that is a Credit Party as of the Effective Date or (y) is entered into after the Effective Date with any counterparty that
is a Credit Party at the time such Swap Contract is entered into, and (b) leasing (but only to the extent that the Borrowers and the Credit Party furnishing such lease notify the Agent in writing that such leases are to be deemed Bank Products
hereunder), but excluding Cash Management Services. 
 “Bank Product Reserves” means such
reserves as any Co-Collateral Agent may from time to time determine in its Permitted Discretion as being appropriate to reflect the liabilities and obligations of the Loan Parties with respect to Bank Products then provided or outstanding;
provided that in the event that any counterparty to a Swap Contract requires that the Loan Parties provide cash collateral to secure such Swap Contract, the amount of the Bank Product Reserve imposed by the Co-Collateral Agents with respect
to such Swap Contract shall take into consideration the amount of such cash collateral. 
 “Banker’s
Acceptance” means a time draft or bill of exchange or other deferred payment obligation relating to a Commercial Letter of Credit which has been accepted by the Issuing Lender. 

“BAS” has the meaning provided in the Preamble. 

“Base Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum
shall at all times be equal to the higher of (a) the rate of interest announced publicly by JPMorgan Chase Bank, N.A. in New York, New York, from time to time, as its prime rate, and (b) one half of one percent per annum above the Federal
Funds Rate. 
 “Base Rate Advance” means an Advance that bears interest as provided in
Sections 2.08(a)(i) and 2.08(b)(i), as applicable. 
 “Blocked Accounts” means the Blocked
Accounts described in Section 6.01(m)(i) and any additional deposit accounts that become subject to Blocked Account Agreements pursuant to Section 6.01(i)(iv). 

  
 4 

  

“Blocked Account Agreement” means with respect to a Blocked Account established by a Loan Party, an
agreement, in form and substance reasonably satisfactory to the Co-Collateral Agents, establishing control (as defined in the UCC) of such account by the Bank (as “Control Co-Collateral Agent”) and whereby the bank maintaining such account
agrees, upon the occurrence and during the continuance of a Cash Dominion Event, to comply only with the instructions originated by the Bank (or any other Co-Collateral Agent which shall succeed the Bank as “Control Co-Collateral Agent”
thereunder), without the further consent of any other Person. 
 “Blocked Account Bank” means
JPMorgan Chase Bank, N.A., Bank of New York, Bank of America, N.A., and each other bank with whom deposit accounts are maintained in which funds of any of the Loan Parties are concentrated and with whom a Blocked Account Agreement has been, or is
required to be, executed in accordance with the terms hereof. 
 “Borrower Information” has the
meaning specified in Section 9.08. 
 “Borrowers” means, collectively, SRAC and Kmart
Corp.; provided that in the event SRAC is dissolved, merged with and into Holdings or any Subsidiary of Holdings or otherwise ceases to exist in accordance with Section 6.01(d), then Holdings shall designate that Holdings or a direct
wholly owned Domestic Subsidiary of Holdings become a Borrower for all purposes of the Loan Documents. 

“Borrowing” means a borrowing consisting of simultaneous Advances of the same Type made by each of the
applicable Lenders pursuant to Section 2.01 or Section 2.03. 
 “Borrowing Base”
means, at any time, an amount equal to (a) 85% of the aggregate outstanding Eligible Credit Card Accounts Receivable at such time plus (b) 85% of the Eligible Pharmacy Receivables at such time plus (c) the lesser of
(i) 70% of the Net Eligible Inventory at such time and (ii) 80% of the Net Orderly Liquidation Value at such time, minus (d) 100% of the then Availability Reserves. The Agent may, in its Permitted Discretion after the
expiration of the Reserve Notice Period, adjust Availability Reserves and Inventory Reserves used in computing the Borrowing Base. 
 “Borrowing Base Certificate” means a certificate, signed by an Authorized Officer of Holdings, substantially in the form of Exhibit C or another form which is reasonably acceptable
to the Co-Collateral Agents in their Permitted Discretion. 
 “Business Day” means a day of the
year on which banks are not required or authorized by law to close in New York, New York or Boston, Massachusetts or, in the case of matters relating to SRAC, Greenville, Delaware or, in the case of matters relating to Kmart Corp., Detroit,
Michigan, and, if the applicable Business Day relates to any Eurodollar Rate Advances, a day of the year on which dealings are carried on in the London interbank market. 

“Capital Expenditures” means, with respect to any Person for any period, all cash expenditures made or
costs incurred for the acquisition or improvement of fixed or capital assets of such Person, in each case that are (or should be) set forth as capital expenditures in a consolidated statement of cash flows of such Person for such period, in each
case prepared in accordance with GAAP. 
 “Capital Lease Obligations” means, with respect to any
Person for any period, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as liabilities on a balance sheet of such Person under GAAP and the amount of which obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Capped Excess Availability” means, at any time, an amount equal to (a) the Line Cap, minus
(b) the Total Extensions of Credit. 

  
 5 

  

“Cash Dominion Event” means either (a) the occurrence and continuance of an Event of Default, or
(b)(i) Capped Excess Availability at any time (other than during the Holiday Season) is less than the greater of 20% of the Line Cap and $250,000,000 for three (3) days (whether or not consecutive) during any thirty (30) day period, or
(ii)(A) Capped Excess Availability at any time during the Holiday Season is less than the greater of 10% of the Line Cap and $100,000,000 for three (3) days (whether or not consecutive) during any thirty (30) day period, or
(B) Uncapped Excess Availability at any time during the Holiday Season is less than 30% of the Borrowing Base. For purposes hereof, the occurrence of a Cash Dominion Event shall be deemed continuing at the Co-Collateral Agents’ option
(i) so long as such Event of Default is continuing, and/or (ii) if the Cash Dominion Event arises as a result of the Borrowers’ failure to achieve Capped Excess Availability or Uncapped Excess Availability at the times and in the
amounts described in the preceding sentence, until Capped Excess Availability and/or Uncapped Excess Availability, as applicable, has exceeded such amounts, in each case for thirty (30) consecutive Business Days, in which case a Cash Dominion
Event shall no longer be deemed to be continuing for purposes of this Agreement; provided that a Cash Dominion Event shall be deemed continuing (even if Capped Excess Availability and/or Uncapped Excess Availability exceeds such amount for
thirty (30) consecutive Business Days) after a Cash Dominion Event has occurred on two (2) occasions during any twelve month period after the Effective Date if the first such Cash Dominion Event has been discontinued and shall continue
until the expiration of the twelve month period ending after the commencement of the second Cash Dominion Event. The termination of a Cash Dominion Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Cash
Dominion Event in the event that the conditions set forth in this definition again arise. 
 “Cash
Equivalents” means investments of Holdings and its Subsidiaries recorded as cash or cash equivalents in accordance with GAAP. 
 “Cash Management Reserves “ means such reserves as any Co-Collateral Agent, from time to time, determines in its Permitted Discretion as being appropriate to reflect the reasonably
anticipated liabilities and obligations of the Loan Parties with respect to Cash Management Services then provided or outstanding. 
 “Cash Management Services” means any one or more of the following types of services or facilities provided to any Loan Party by any Lender or any of its Affiliates: (a) ACH
transactions, (b) cash management services, including, without limitation, controlled disbursement services, treasury, depository, overdraft, and electronic funds transfer services, (c) foreign exchange facilities, (d) credit card
processing services, (e) credit or debit cards and (f) purchase cards (but only to the extent that, prior to the occurrence and continuance of any Default or Event of Default, the Borrowers and the Credit Party issuing such purchase cards
notify the Agent in writing that such purchase cards are to be deemed Cash Management Services hereunder). 

“Co-Collateral Agents” has the meaning provided in the Preamble and any successors thereto. 

“Co-Documentation Agents” has the meaning provided in the Preamble and any successors thereto.

 “Collateral” means all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien (excluding any license granted to the Co-Collateral Agents (and deemed to be a Lien pursuant to the definition thereof) for the sole purpose of enabling the Co-Collateral Agents to exercise rights and remedies with respect to the Liens
granted on the Collateral set forth in Section 3.1 of the Guarantee and Collateral Agreement) is purported to be created by any Security Document. 
 “Commercial L/C” means a commercial documentary Letter of Credit under which the Issuing Lender agrees to make payments in Dollars for the account of any Borrower, on behalf of any Group
Member, in respect of obligations of such Group Member in connection with the purchase of goods or services in the ordinary course of business. 

  
 6 

  

“Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Advances and
participate in Swingline Advances and Letters of Credit in an aggregate principal amount and/or face amount up to (a) the amount set forth opposite such Lender’s name on Schedule 1.01 or (b) if such Lender has entered into any
Assignment and Acceptance, the amount set forth for such Lender in the Register maintained by the Agent pursuant to Section 9.07(d), as such amount may be reduced or increased pursuant to Section 2.06 or Section 2.18. 

“Commitment Fee Rate” means, initially, 0.175% per annum; provided, that on and after the
first Adjustment Date occurring after the Effective Date, the Commitment Fee Rate will be determined pursuant to the Pricing Grid. 
 “Commitment Percentage” means, as to any Lender at any time, the percentage which such Lender’s Commitment then constitutes of the Aggregate Commitments or, at any time after all of
the Commitments shall have expired or terminated, the percentage which the aggregate principal amount of such Lender’s Advances then outstanding plus such Lender’s participation in Swingline Loans and L/C Obligations constitutes of the
aggregate principal amount of the Advances, Swingline Loans and L/C Obligations then outstanding, provided, that, after the Commitment of any Non-Extending Lender shall have expired or terminated (other than as a result of the
termination of all Commitments pursuant to Section 2.06 hereof or the exercise of remedies pursuant to Article VII hereof) and all Obligations owed to such Non-Extending Lender have been paid in full, (x) the Commitment Percentage of such
Non-Extending Lender for purposes of Section 8.09 hereof shall be its Commitment Percentages immediately prior to such date, and (y) the Commitment Percentages of the Extending Lenders shall be appropriately adjusted for all other purposes
to reflect the termination of the Commitments of the Non-Extending Lenders. 
 “Commonly Controlled
Entity” means an entity, whether or not incorporated, that is under common control with any Borrower within the meaning of Section 4001 of ERISA or is part of a group that includes any Borrower and that is treated as a single employer
under Section 414 of the Internal Revenue Code. 
 “Consolidated” refers to the
consolidation of accounts of Holdings and its Subsidiaries, excluding Sears Canada and OSH, in accordance with GAAP and as presented on a GAAP basis. 
 “Consolidated Average Net Debt” means, as of the last day of any period, (a) the sum of (i) Consolidated Net Debt as of such day and (ii) the sum of Consolidated Net Debt
as of the end of each of the three immediately preceding fiscal quarters divided by (b) 4. 

“Consolidated EBITDA” means for any period, Consolidated Net Income for such period plus, without
duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) provision for income taxes, (b) interest expense, (c) depreciation and amortization expense,
(d) results attributable to the minority interest owned by any Person in a non-wholly owned Subsidiary of Holdings to the extent such Subsidiary is a Loan Party, (e) expenses relating to the Kmart Corp. bankruptcy case in an amount not to
exceed $12,000,000 in any twelve month period, (f) the impact of conforming accounting policies as a result of the Merger through the first full fiscal year following the Merger, (g) all nonrecurring expenses and special charges related to
the Merger incurred within twelve months after the date of the Merger, (h) non-cash charges arising from share-based payments (as defined in accordance with GAAP) to employees or directors and (i) any extraordinary or other non-recurring
non-cash expenses or losses, and minus, to the extent included in the statement of such Consolidated Net Income for such period, any cash payments made during such period in respect of items added back pursuant to clause (i) above
subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as determined on a Consolidated basis. For the purposes of calculating Consolidated EBITDA
for any fiscal quarter pursuant to any determination of the Consolidated Leverage Ratio, (i) if at any time during such fiscal quarter, Holdings or any of its Subsidiaries (other than Sears Canada) shall have made any Material Disposition, the
Consolidated EBITDA for such fiscal quarter shall be reduced by an amount equal to the 

  
 7 

 
Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such fiscal quarter or increased by an amount equal to the Consolidated EBITDA
(if negative) attributable thereto for such fiscal quarter and (ii) if during such fiscal quarter Holdings or any of its Subsidiaries (other than Sears Canada) shall have made a Material Acquisition, Consolidated EBITDA for such fiscal quarter
shall be calculated after giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such fiscal quarter. As used in this definition, “Material Acquisition” means any acquisition of
property or series of related acquisitions of property that (a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and
(b) involves the payment of consideration by Holdings and its Subsidiaries (other than Sears Canada) in excess of $100,000,000; and “Material Disposition” means any Disposition of property or series of related Dispositions of
property that yields gross proceeds to Holdings or any of its Subsidiaries in excess of $100,000,000. 

“Consolidated Interest Expense” means for any period for any Person, total interest expense of such
Person (including that attributable to Capital Lease Obligations and other expenses classified as interest expense in accordance with GAAP) on a Consolidated basis with respect to all outstanding Debt of such Person, as determined in accordance with
GAAP. 
 “Consolidated Leverage Ratio” means, as of any given day, the ratio of
(a) Consolidated Average Net Debt on such day to (b) Consolidated EBITDA for the four immediately preceding fiscal quarters for which financial statements are available. 

“Consolidated Net Debt” means, on any date, Consolidated Total Debt minus Available Cash.

 “Consolidated Net Income” means, for any period, the consolidated net income (or loss) of
Holdings and its Subsidiaries, determined on a Consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of Holdings or
is merged into or consolidated with Holdings or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of Holdings) in which Holdings or any of its Subsidiaries has an ownership interest, except to the
extent that any such income is actually received by Holdings or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary of Holdings (other than a Loan Party) to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary.

 “Consolidated Total Debt” means, at any date, the aggregate principal amount of all Debt of
Holdings and its Subsidiaries at such date, determined on a Consolidated basis in accordance with GAAP, but excluding (i) issued but not funded letters of credit, (ii) reimbursement obligations which are characterized as trade payables and
are not overdue with respect to trade letters of credit (other than Letters of Credit issued hereunder) and (iii) contingent obligations. 
 “Convert”, “Conversion” and “Converted” each refers to a conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.09
or 2.10. 
 “Covenant Compliance Event” means (i) Capped Excess Availability at any time
(other than during the Holiday Season) is less than the greater of 15% of the Line Cap and $250,000,000, or (ii)(A) Capped Excess Availability at any time during the Holiday Season is less than the greater of 10% of the Line Cap and $175,000,000, or
(B) Uncapped Excess Availability at any time during the Holiday Season is less than 30% of the Borrowing Base. 
 “Credit Card Accounts Receivable” means each Account (as defined in the UCC) together with all income, payments and proceeds thereof, owed by a credit card payment processor or an issuer
of credit cards to a Loan Party resulting from charges by a customer of a Group Member (other than Sears Canada) 

  
 8 

 
on credit cards issued by such issuer in connection with the sale of goods by a Group Member (other than Sears Canada), or services performed by a Group Member (other than Sears Canada), in each
case in the ordinary course of its business. 
 “Credit Card Notification” has the meaning
specified in Section 6.01(m)(i)(A). 
 “Credit Card Processors” has the meaning specified
in Section 6.01(m)(i)(A). 
 “Credit Party” or “Credit Parties” means
(a) individually, (i) each Lender and its Affiliates, (ii) the Agent, (iii) each Co-Collateral Agent, (iv) each Issuing Lender, (v) each Lead Arranger, and (vi) the successors and assigns of each of the foregoing,
and (b) collectively, all of the foregoing. 
 “Customer Deposits Reserve” shall mean, at
any time, a reserve equal to the aggregate outstanding amount of customer deposits of the Loan Parties at such time. 
 “Customs Broker Agreement” means an agreement in substantially the form attached hereto as Exhibit H, or such other form as the Co-Collateral Agents may reasonably agree, among a
Loan Party, a customs broker or other carrier, and the Co-Collateral Agents, in which the customs broker or other carrier acknowledges that it has control over and holds the documents evidencing ownership of the subject Inventory for the benefit of
the Co-Collateral Agents and agrees, upon notice from the Co-Collateral Agents (which shall not be furnished unless an Event of Default is continuing), to hold and dispose of the subject Inventory solely as directed by the Co-Collateral Agents.

 “DC” means any distribution center owned or leased and operated by any Loan Party.

 “DDA” means each checking, savings or other demand deposit account maintained by any of the
Loan Parties. 
 “Dealer Store” means any store constituting a “Sears Authorized Retail
Dealer” store, owned or leased and operated by a Person (other than a Loan Party or any of its Subsidiaries) pursuant to a “Sears Authorized Retail Dealer Agreement “ or a “Sears Hometown Store Agreement.” 

“Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed
money (excluding interest payable thereon unless such interest has been accrued and added to the principal amount of such indebtedness), (b) all obligations of such Person for the deferred purchase price of property or services (other than
(i) trade payables incurred in the ordinary course of such Person’s business and (ii) any such obligations which are due less than twelve months from the date of incurrence), (c) all obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments (other than performance, surety and appeals bonds arising in the ordinary course of business and other than the endorsement of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business) or in respect of bankers’ acceptances or letters of credit, (d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Person as lessee under leases
that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all direct recourse payment obligations of such Person in respect of any accounts receivable sold by such Person, (g) all Debt of others referred to in
clauses (a) through (f) above or clause (h) below and other payment obligations guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement
(1) to pay or purchase such Debt or to advance or supply funds for the payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling
the debtor to make payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or 

  
 9 

 
(4) otherwise to assure a creditor against loss, and (h) all Debt referred to in clauses (a) through (g) above secured by (or for which the holder of such Debt has an existing
right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt. 

“Debt Maturity Reserve” means an Availability Reserve in an amount not to exceed the outstanding balance
of Debt of the Loan Parties for borrowed money maturing (A) prior to the Extended Termination Date and (B) within sixty (60) days of any date of determination of the Debt Maturity Reserve; provided that such Debt Maturity Reserve
shall be eliminated when (i) such Debt is repaid, refinanced or extended as provided herein or (ii) provision for the repayment or refinancing of such Debt (other than through proceeds of Revolving Advances) shall have been made to the
satisfaction of the Co-Collateral Agents in their Permitted Discretion. 
 “Default” means any
Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
 “Defaulting Lender” means any Lender (as reasonably determined by the Agent) that (a) has failed to fund any portion of the Advances, participations in Letters of Credit or
participations in Swingline Loans required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Agent or any other Lender any other amount required
to be paid by it hereunder within one Business Day of the date when due, (c) has failed, within three (3) Business Days after request by the Agent, to confirm that it will comply with the terms of this Agreement relating to its
Commitments, provided that such Lender shall cease to be a Defaulting Lender under this clause (c) upon the Agent’s receipt of such confirmation, or (d) has been deemed insolvent by any Governmental Authority or become the
subject of a bankruptcy or insolvency proceeding. 
 “Deteriorating Lender” means any Defaulting
Lender or any Lender as to which (a) any of the Issuing Lenders or the Swingline Lender has a good faith belief that such Lender or its Subsidiary has defaulted in fulfilling its obligations under one or more other syndicated credit facilities,
or (b) such Lender or a Person that controls such Lender has been deemed insolvent by any Governmental Authority or become the subject of a bankruptcy, insolvency or similar proceeding; provided that a Lender shall not be a Deteriorating Lender
solely by virtue of the ownership or acquisition of any equity interest in such Lender or the Person controlling such Lender by a Governmental Authority. 
 “Disposition” means any sale or transfer of property other than goods held for sale in the ordinary course of business. 

“Dollars” and “$” refers to lawful money of the United States. 

“Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its
“Domestic Lending Office” on the signature pages hereof or in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the
Agent. 
 “Domestic Subsidiary” means any Subsidiary organized under the laws of the United
States of America, any State thereof or the District of Columbia.(excluding, for the avoidance of doubt, any Subsidiary organized under the laws of Puerto Rico). 

“Effective Date” means the date on which the conditions precedent set forth in Section 4.01 shall
have been satisfied. 
 “Eligible Assignee” means (a) a commercial bank or any other Person
engaged in the business of making asset based or commercial loans, which bank or Person, together with its Affiliates, has a combined capital and surplus in excess of $300,000,000 and which bank or Person is approved by the Agent, and,

  
 10 

 
unless an Event of Default has occurred and is continuing at the time any assignment is effected in accordance with Section 9.07, the Borrowers, in each case such approval not to be
unreasonably withheld or delayed, (b) an existing Lender or an Affiliate of an existing Lender or an Approved Fund, (c) any Permitted Holder Lender, or (d) with respect to Additional Commitment Lenders only, the United States of
America or any agency thereof, the U.S. Treasury Department’s Troubled Asset Relief Program or any Person whose participation in this Agreement is financed by the Federal Reserve’s Term Asset-Backed Securities Loan Facility;
provided that neither the Borrowers nor an Affiliate of the Borrowers (other than a Permitted Holder Lender) shall qualify as an Eligible Assignee. 
 “Eligible Credit Card Accounts Receivable” means at the time of any determination thereof, each Credit Card Account Receivable that satisfies the following criteria at the time of its
creation and continues to meet the same at the time of such determination: such Credit Card Account Receivable (i) has been earned and represents the bona fide amounts due to a Loan Party from a credit card payment processor and/or credit card
issuer, and in each case originated in the ordinary course of business of the applicable Loan Party and (ii) is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (j) below.
Without limiting the foregoing, to qualify as an Eligible Credit Card Account Receivable, an Account shall indicate no person other than a Loan Party as payee or remittance party. In determining the amount to be so included, the face amount of an
Account shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments,
finance charges, credit card processor fees or other allowances (including any amount that the applicable Loan Party may be obligated to rebate to a customer, a credit card payment processor, or credit card issuer pursuant to the terms of any
agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Account but not yet applied by the applicable Loan Party to reduce the amount of such Credit Card Account Receivable. Unless
otherwise approved from time to time in writing by the Co-Collateral Agents in their Permitted Discretion, no Credit Card Account Receivable shall be Eligible Credit Card Account Receivable if, without duplication: 

(a) such Credit Card Account Receivable is not owned by a Loan Party and such Loan Party does not have good or marketable
title to such Credit Card Account Receivable; 
 (b) such Credit Card Account Receivable does not constitute
“Accounts” (as defined in the UCC) or such Credit Card Account Receivable has been outstanding for more than five (5) Business Days; 
 (c) the issuer or payment processor of the applicable credit card with respect to such Credit Card Account Receivable is the subject of any bankruptcy or insolvency proceedings; 

(d) such Credit Card Account Receivable is not the valid, legally enforceable obligation of the applicable issuer with
respect thereto; 
 (e) such Credit Card Account Receivable is subject to any Lien whatsoever other than Liens in
favor of the Co-Collateral Agents, Permitted Liens and Liens permitted pursuant to Section 6.02(a)(vi); 

(f) such Credit Card Account Receivable is not subject to a valid and perfected Lien in favor of the Co-Collateral Agents,
for the benefit of the Credit Parties, senior in priority to all other Liens other than Permitted Liens which have priority over the Liens of the Co-Collateral Agents by operation of applicable law and Liens of the type specified in clause
(h) of the definition of Permitted Liens; 
 (g) the Credit Card Account Receivable does not conform to all
representations, warranties, covenants or other provisions in the Loan Documents relating to Credit Card Accounts Receivable; 

  
 11 

  
 (h)
such Credit Card Account Receivable is subject to risk of set-off, non-collection or not being processed due to unpaid and/or accrued credit card processor fee balances, limited to the lesser of the balance of Credit Card Account Receivable or
unpaid credit card processor fees; 
 (i) such Credit Card Account Receivable is evidenced by “chattel
paper” or an “instrument” of any kind unless such “chattel paper” or “instrument” is subject to the perfected security interest of the Co-Collateral Agents; or 

(j) such Credit Card Account Receivable does not meet such other reasonable eligibility criteria for Credit Card Accounts
Receivable as the Agent (or any Co-Collateral Agent upon written notice to the Agent) may determine from time to time in its Permitted Discretion. 
 “Eligible In-Transit Inventory” means, as of any date of determination thereof, without duplication of other Eligible Inventory, Inventory: 

(a) for which full payment has been delivered to the vendor of such Inventory and evidence of such payment has been
received by the Agent; provided that in transit Inventory purchased under “private label” letters of credit issued by SRAC or Letters of Credit issued hereunder shall be deemed Eligible In-Transit Inventory, subject to an Inventory
Reserve equal to 25% of the Inventory Value of such Inventory and satisfaction of all of the other conditions of this definition; 
 (b) which has been shipped from a location outside of the United States, Puerto Rico or the U.S. Virgin Islands for receipt by any Loan Party, but which has not yet been delivered to such Loan Party,
which Inventory has been in transit for sixty (60) days or less from the date of shipment of such Inventory; 
 (c) for which the purchase order is in the name of any Loan Party and title has passed to such Loan Party; 
 (d) for which the document of title reflects a Loan Party as consignee or, if requested by a Co-Collateral Agent, names the Co-Collateral Agents as consignee, and in each case as to which a Co-Collateral
Agent has control over the documents of title which evidence ownership of the subject Inventory (such as, if requested by a Co-Collateral Agent, by the delivery of a Customs Broker Agreement); 

(e) which is insured as required pursuant to Section 6.01 hereof; and 

(f) which would not be excluded from the definition of “Eligible Inventory” by any of clauses (a),
(c) through (g) or (i) through (r) of the definition thereof. 
 provided that the Agent, or
any Co-Collateral Agent upon written notice to the Agent, may, in its Permitted Discretion, exclude any particular Inventory from the definition of “Eligible In-Transit Inventory” in the event the Agent or Co-Collateral Agent determines
that such Inventory is subject to any Person’s right or claim which is (or is capable of being) senior to, or pari passu with, the Lien of the Co-Collateral Agents (such as, without limitation, a right of stoppage in transit) or may otherwise
adversely impact the ability of the Co-Collateral Agents to realize upon such Inventory. 
 “Eligible
Inventory” means at any time, without duplication (i) Eligible In-Transit Inventory, and (ii) items of Inventory of any Loan Party that are held for retail sale to the public in the ordinary course of business, merchantable, and
readily saleable to the public in the ordinary course of business, that is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (r) below. Without limiting the foregoing, to qualify
as “Eligible Inventory” no Person other than the Loan Parties shall have any direct or indirect ownership, interest or title to such Inventory and no Person other than the Loan Parties shall be indicated on any purchase order or invoice
with respect to such Inventory as having or purporting to have an interest therein. Unless otherwise from time to time approved in writing by the Agent (or any Co-Collateral Agent upon written notice to the Agent) in its Permitted Discretion, no
Inventory shall be deemed Eligible Inventory if, without duplication: 
 (a) the Loan Parties do not have sole
and good, valid and unencumbered title thereto (except for Liens of the type described in clauses (a), (b), (c) and (e) of the definition of Permitted Liens); or 

  
 12 

  
 (b) it
is not located in the United States, Puerto Rico, Guam or U.S. Virgin Islands; or 
 (c) it is not located at
property owned or leased by the Loan Parties (except to the extent such Inventory is (i) in transit between such locations, (ii) is located at a Dealer Store, provided that if requested by the Co-Collateral Agents, the Co-Collateral
Agents have received evidence reasonably acceptable to the Co-Collateral Agents, that the Loan Parties have filed appropriate UCC financing statements against the Person operating the Dealer Store covering such Inventory, and provided further
that the amount of Inventory located at all Dealer Stores which may constitute Eligible Inventory shall not exceed $300,000,000 in the aggregate, or (iii) is deemed eligible pursuant to clause (g)) or is located at a third party warehouse
or is located at a closed Store (except pursuant to clause (e)) or is located at a closed DC; or 
 (d) it is not
subject to a valid and perfected Lien in favor of the Co-Collateral Agents for the benefit of the Credit Parties, senior in priority to all other Liens other than Permitted Liens which have priority over the Liens of the Co-Collateral Agents by
operation of applicable law, including Liens of the types described in clauses (a) through (c) and (g) of the definition of Permitted Liens; 
 (e) it is subject to any Lien whatsoever other than Liens in favor of the Co-Collateral Agents, Permitted Liens and Liens permitted pursuant to Section 6.02(a)(vi); or 

(f) it is Inventory located at a Store which is being closed; provided, however that upon the Co-Collateral
Agents receipt of, and satisfaction with, an initial commercial finance examination and appraisal of the Loan Parties and such other due diligence as they may reasonably deem necessary after the Effective Date, such Inventory will be deemed eligible
for the first four (4) weeks after the commencement of the Store Closure Sale for that Store, provided further that the Inventory Value of such Inventory shall be reduced by the “closed store reserve” established by the
Borrowers with respect to such Inventory consistent with past practices; 
 (g) it is consigned from a vendor or
is at a customer location but still accounted for in the applicable Loan Party’s inventory balance; or 

(h) it is in-transit (other than Eligible In-Transit Inventory) from a vendor and has not yet been received into a DC or
Store; or 
 (i) it is identified in the stockledger of the applicable Loan Party as any of the following
departments or consists of Inventory which is ordinarily classified by such Loan Party consistent with its historical practices as the following: floral; gasoline; live plants; miscellaneous or other as classified on the Loan Party’s
stockledger; produce; books; magazines; restaurant operations; or seafood; or it is identified per the applicable Loan Party’s stockledger as candy; or 
 (j) it is Inventory that has been packed-away and stored for more than 12 months at a DC or a Store for future sale, including merchandise of Sears and its Subsidiaries that has been carried over for more
than 12 months as currently reported as “XOM” status per the RIM merchandising system; or 
 (k) it is
identified as wholesaler freight fees; or 
 (l) it is Inventory on layaway or is Inventory which has been sold
but not delivered or as to which any Loan Party has accepted a deposit from a third party; or 

  
 13 

  
 (m) it
is identified per the Loan Parties’ stockledger as Inventory that is in a leased department, including digital imaging, photofinishing and 1 hour lab; or 
 (n) it is otherwise deemed ineligible by the Co-Collateral Agents in their Permitted Discretion after the expiration of the Reserve Notice Period; or 

(o) it is (i) operating supplies, packaging or shipping materials, cartons, labels or other such materials not
considered used for sale in the ordinary course of business by the Agent in its Permitted Discretion (ii) work-in-process, raw materials, (iii) not in material compliance with all standards imposed by any Governmental Authority having
regulatory authority over such Inventory, its use or sale, or (iv) bill and hold goods; or 
 (p) it is
Inventory which exhibits, includes or is identified by any trademark, tradename or other Intellectual Property right which trademark, tradename or other Intellectual Property right (i) is subject to a restriction that could reasonably be
expected to adversely affect the Agent’s ability to liquidate such Inventory or (ii) the relevant Loan Party does not have the right to use in connection with the sale of such Inventory, either through direct ownership or through a written
license or sublicense; or 
 (q) it is Inventory that is not insured in compliance with the provisions of
Section 6.01(c), or 
 (r) it is Inventory that does not conform to all representations, warranties,
covenants or other provisions in the Loan Documents relating to Inventory; or 
 (s) it is Inventory acquired in
a Permitted Acquisition and the Co-Collateral Agents have not completed their diligence with respect thereto, provided that such Inventory shall be deemed to constitute Eligible Inventory for a period of 30 days after the date of its
acquisition notwithstanding that the Co-Collateral Agents have not completed such due diligence as long as such Inventory is of the same kind and quality as other of the Loan Parties’ Inventory and would otherwise constitute Eligible Inventory.

 “Eligible Pharmacy Receivables” means each Pharmacy Receivable that satisfies the following
criteria at the time of creation and continues to meet the same at the time of such determination: such Pharmacy Receivable (i) has been earned and represents the bona fide amounts due to a Loan Party from Third Party Payors, and other Persons
reasonably acceptable to the Co-Collateral Agents, and in each case originated in the ordinary course of business of the applicable Loan Party (ii) is non-recourse to the Loan Parties and has been adjudicated or is otherwise due to the Borrower
for pharmacy related services, and (iii) is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (m) below. Without limiting the foregoing, to qualify as an Eligible Pharmacy
Receivable, an Account shall indicate no person other than a Loan Party as payee or remittance party. In determining the amount to be so included, the face amount of an Account shall be reduced by, without duplication, to the extent not reflected in
such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges, processing fees or other allowances (including any amount that the
applicable Loan Party may be obligated to rebate to a customer, or to pay to the Third Party Payors, direct customers or other Persons pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of
all cash received in respect of such Account but not yet applied by the applicable Loan Party to reduce the amount of such Pharmacy Receivable. Unless otherwise approved from time to time in writing by the Co-Collateral Agents in their Permitted
Discretion, none of the following Pharmacy Receivables shall be an Eligible Pharmacy Receivable: 
 (a) Pharmacy
Receivables that have been outstanding for more than ninety (90) days past the invoice date or that are more than sixty (60) days past due; 

  
 14 

  
 (b)
Pharmacy Receivables due from any Third Party Payor to the extent that fifty percent (50%) or more of all Pharmacy Receivables from such Third Party Payor are not Eligible Pharmacy Receivables under clause (a), above; 

(c) Pharmacy Receivables which do not constitute an “Account” (as defined in the UCC); 

(d) Pharmacy Receivables with respect to which a Loan Party does not have good, valid and marketable title thereto;

 (e) Pharmacy Receivables that are not subject to a valid and perfected Lien in favor of the Co-Collateral
Agents, for the benefit of the Credit Parties, senior in priority to all other Liens other than Permitted Liens which have priority over the Liens of the Co-Collateral Agents by operation of applicable law; 

(f) Pharmacy Receivables that are subject to any Lien whatsoever other than Liens in favor of the Co-Collateral Agents for
the benefit of the Credit Parties, Permitted Liens, and Liens permitted pursuant to Section 6.02(a)(vi); 

(g) Pharmacy Receivables which are disputed, are with recourse, or with respect to which a claim, counterclaim, offset or
chargeback has been asserted (to the extent of such claim, counterclaim, offset or chargeback); 
 (h) Pharmacy
Receivables due from Medicare, Medicaid and other Governmental Authorities; 
 (i) Pharmacy Receivables due from
a Third Party Payor who is not duly authorized to conduct business in the United States of America, Puerto Rico, United States Virgin Islands or Guam, as applicable; 

(j) Pharmacy Receivables which are acquired in a Permitted Acquisition unless and until the Co-Collateral Agents have
completed an appraisal and audit of such Pharmacy Receivables and otherwise agree that such Pharmacy Receivables shall be deemed Eligible Pharmacy Receivables; 
 (k) Pharmacy Receivables as to which (i) the Loan Party making the sale giving rise to such Pharmacy Receivables does not have a valid and enforceable agreement with the Third Party Payor providing
for payment to such Loan Party or there is a default thereunder that could be a basis for such Third Party Payor ceasing or suspending any payments to such Loan Party, or (ii) the prescription drugs sold giving rise to such Pharmacy Receivables
are not of the type that are covered under the agreement with the Third Party Payor or the party receiving such goods is not entitled to coverage under such agreement, (iii) the Loan Party making the sale giving rise to such Pharmacy
Receivables has not received confirmation from such Third Party Payor that the party receiving the prescription drugs is entitled to coverage under the terms of the agreement with such Third Party Payor and the Loan Party is entitled to
reimbursement for such Pharmacy Receivables, (iv) the amount of such Pharmacy Receivables exceeds the amounts to which the Loan Party making such sale is entitled to reimbursement for the prescription drugs sold under the terms of such
agreements (but solely to the extent of such excess), (v) there are contractual or statutory limitations or restrictions on the rights of the Loan Party making such sale to assign its rights to payment arising as a result thereof or to grant
any security interest therein which limitations or restrictions have not been satisfied or waived, (vi) all authorization and billing procedures and documentation required in order for the Loan Party making such sale to be reimbursed and paid
on such Pharmacy Receivables by the Third Party Payor have not been properly completed and satisfied to the extent required for such Loan 

  
 15 

 
Party to be so reimbursed and paid, and (vii) the terms of the sale giving rise to such Pharmacy Receivables and all practices of such Loan Party with respect to such Pharmacy Receivables do
not comply in all material respects with applicable federal, state, and local laws and regulations; 
 (l)
Pharmacy Receivables which do not conform to all representations, warranties, covenants, or other provisions in the Loan Documents relating to Pharmacy Receivables; or 

(m) Pharmacy Receivables which the Co-Collateral Agents determine in their Permitted Discretion to be uncertain of
collection or which do not meet such other reasonable eligibility criteria for Pharmacy Receivables as the Agent (or any Co-Collateral Agent upon written notice to the Agent) may determine in its Permitted Discretion. 

provided that no Pharmacy Receivables shall constitute Eligible Pharmacy Receivables on or after the Effective Date
until such time as the Co-Collateral Agents shall have received, and are reasonably satisfied with, an initial audit of the Loan Parties’ Pharmacy Receivables and shall have conducted such other due diligence with respect to the Pharmacy
Receivables as the Co-Collateral Agents shall reasonably deem necessary. 
 “Environmental
Action” means any action, suit, demand, demand letter, claim, notice of noncompliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any
Environmental Law, Environmental Permit or Hazardous Materials or arising from alleged injury or threat of injury to health, safety or the environment, including (a) by any governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any governmental or regulatory authority or any third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 

“Environmental Law” means any federal, state, local or foreign statute, law, ordinance, rule, regulation,
code, order, judgment, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including those relating to the use, handling, transportation,
treatment, storage, disposal, release or discharge of Hazardous Materials. 
 “Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Holdings, the Borrowers, or any of their Subsidiaries directly or
indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 “Environmental Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law. 
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of any Borrower’s controlled group, or under common control with such Borrower, within the
meaning of Section 414 of the Internal Revenue Code. 
 “ERISA Event” means (a) (i)
the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC, or (ii) the requirements of subsection
(1) of Section 4043(b) of ERISA (without regard to Section 4043(b)(2)) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10),
(11), (12) or (13)

  
 16 

 
of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e)
of ERISA); (d) the cessation of operations at a facility of any Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Borrower or any ERISA Affiliate from a Multiple
Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien under Sections 303(k) or 4068(a) of ERISA shall have been met with respect
to any Plan; (g) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the
termination of, or the appointment of a trustee to administer, a Plan, or (h) the Borrowers or any ERISA Affiliate incur liabilities under Section 4069 of ERISA. 

“Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board of
Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurodollar Lending
Office” means, with respect to any Lender, the office of such Lender specified as its “Eurodollar Lending Office” on the signature pages hereof or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no
such office is specified, its Domestic Lending Office), or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the Agent. 

“Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate Advance comprising part of the
same Borrowing, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Agent from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such
rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar Advance being made, continued or converted by the Bank and with a term equivalent to such Interest Period would be offered by the Bank’s London Branch to major banks
in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period. 

“Eurodollar Rate Advance” means an Advance that bears interest as provided in Sections 2.08(a)(ii)
and 2.08(b)(ii), as applicable. 
 “Eurodollar Rate Reserve Percentage” for any Interest Period
for a Eurodollar Rate Advance by any Lender means the reserve percentage applicable to such Lender two Business Days before the first day of such Interest Period under regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the minimum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to liabilities or assets consisting of or including Eurocurrency Liabilities
(or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Advances is determined) having a term equal to such Interest Period. 

“Events of Default” has the meaning specified in Section 7.01. 

“Excluded Accounts” means payroll, trust and tax withholding accounts funded in the ordinary course of
business. 

  
 17 

  

“Existing Credit Agreement” has the meaning set forth in the Preamble to the Agreement. 

“Existing Letters of Credit” means each of the Letters of Credit described on Schedule 1.02 issued and
outstanding under the Existing Credit Agreement immediately prior to the Effective Date. 
 “Extended
Term Applicable Margin” means (a) 4.00% per annum for Eurodollar Rate Advances and (b) 3.00% per annum for Base Rate Advances. 
 “Extended Term Base Rate” means, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the
Eurodollar Rate (calculated utilizing a one-month Interest Period) plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by the Bank as its “prime rate.” The “prime
rate” is a rate set by the Bank based upon various factors including the Bank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at,
above, or below such announced rate. Any change in such rate announced by the Bank shall take effect at the opening of business on the day specified in the public announcement of such change. 

“Extended Term Commitment Fee Rate” means, initially, 1.0% per annum; provided, that on and
after the first Fee Adjustment Date occurring after the Effective Date, the Extended Term Commitment Fee Rate will be determined pursuant to the Restated Commitment Fee Grid. 

“Extended Termination Date” means the earlier of (a) June 22, 2012 and (ii) the date of
termination in whole of the Commitments pursuant to Section 2.06 or 7.01. 
 “Extending
Lender” means each Lender listed on Schedule 1.01 under the heading Extending Lenders, whose Commitment shall terminate on the Extended Termination Date. 

“Extensions of Credit” means as to any Lender at any time, an amount equal to the sum of (a) the
aggregate principal amount of all Revolving Advances held by such Lender then outstanding, (b) such Lender’s Commitment Percentage of the aggregate principal amount of Swingline Advances then outstanding and (c) such Lender’s
Commitment Percentage of the L/C Obligations then outstanding. 
 “Fee Letter” means
collectively, (a) the Fee Letter dated April 17, 2009, among Holdings, the Bank, BAS and WFRF, and (b) the Commitment Letter dated April 29, 2009, among Holdings, the Borrowers, GECC and GE Capital Markets, Inc., each as amended
from time to time. 
 “Fee Adjustment Date” shall have the meaning provided therefor in
Schedule IB. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is
not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received
by the Agent from three Federal funds brokers of recognized standing reasonably selected by it. 
 “Fixed
Charge Ratio” means, the ratio, determined as of the end of each fiscal quarter of the Borrowers for the most recently ended four fiscal quarters, of (a) Adjusted Consolidated EBITDA minus the unfinanced portion of Capital
Expenditures (but including Capital Expenditures financed with proceeds of Advances hereunder) minus taxes paid in cash net of refunds, to (b) Fixed Charges, all calculated on a Consolidated basis in accordance with GAAP. 

  
 18 

  

“Fixed Charges” means, with reference to any period, without duplication, Consolidated Interest Expense
paid or payable in cash, plus scheduled principal payments on Debt made during such period, plus Capital Lease Obligation payments made during such period, all calculated on a Consolidated basis. 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing,
holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
 “GAAP” has the meaning specified in Section 1.03. 
 “Gift Card Liability Reserve” shall mean, at any time, and without duplication of any other Availability Reserves or Inventory Reserves, a reserve equal to the aggregate remaining value
at such time of (i) outstanding gift certificates and gift cards of the Loan Parties entitling the holder thereof to use all or a portion of the certificate or gift card to pay all or a portion of the purchase price for any Inventory and
(ii) outstanding merchandise credits. 
 “Governmental Authority” means any nation or
government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of
or pertaining to government, any securities exchange and any self-regulatory organization (including the National Association of Insurance Commissioners). 
 “Group Members” means, collectively, Holdings, the Borrowers and their respective Subsidiaries. 
 “Guarantee and Collateral Agreement” means the Amended and Restated Guarantee and Collateral Agreement to be executed and delivered by the Loan Parties, substantially in the form of
Exhibit D. 
 “Hazardous Materials” means (a) petroleum and petroleum products,
byproducts or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as
a pollutant or contaminant under any Environmental Law. 
 “Holdings” has the meaning provided
in the Preamble. 
 “Holiday Season” means October 15 through and including
December 15 of each calendar year. 
 “Increase Effective Date” shall have the meaning
provided therefor in Section 2.18(f). 
 “Insolvency” means with respect to any
Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA. 

“Insolvent” means pertaining to a condition of Insolvency. 

“Intellectual Property” has the meaning set forth in the Guarantee and Collateral Agreement. 

“Interest Period” means, for each Eurodollar Rate Advance comprising part of the same Borrowing of
Revolving Advances, the period commencing on the date of such Eurodollar Rate Advance or the date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending on the last day of the period selected by the applicable
Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the applicable Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be one, two or three months, as the applicable Borrower may, upon notice received by the Agent not later than 12:00 noon on the third Business Day prior to the first day of such
Interest Period, select; provided, however, that: 
 (a) a Borrower may not select any Interest
Period that ends after the Termination Date or the Extended Termination Date, as applicable; 

  
 19 

  
 (b)
Interest Periods commencing on the same date for Eurodollar Rate Advances comprising part of the same Borrowing shall be of the same duration; 
 (c) whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business
Day, provided, however, that, if such extension would cause the last day of such Interest Period of one month or longer to occur in the next following calendar month, the last day of such Interest Period shall occur on the next
preceding Business Day; and 
 (d) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month. 
 “Internal Revenue Code” means the
Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
 “Inventory” as defined in the UCC. 

“Inventory Reserves” means the following: 

(a) a reserve for shrink, or discrepancies that arise between Inventory quantities on hand per the Loan Parties’ unit
inventory system, and physical counts of the Inventory which will be equal to the greater of (i) the mathematical average of the historical shrink results expressed as a percent of sales, multiplied by sales for the relevant year-to-date period
and adjusted for the cost complement for the relevant year-to-date period, but only to the extent such amount exceeds reserves already netted out of the Inventory Value per the stockledger; or (ii) an amount determined by the Agent in its
Permitted Discretion or any Co-Collateral Agent in its Permitted Discretion upon written notice to the Agent, in each case, after the expiration of the Reserve Notice Period; 

(b) a reserve for intracompany profit, equal to the most recent three (3) fiscal months of capitalized cost of the
foreign buying offices owned and operated by any Loan Party, with the time frame subject to change after the expiration of the Reserve Notice Period based on Inventory performance, or the Agent’s (or any Co-Collateral Agent’s upon written
notice to the Agent) Permitted Discretion; 
 (c) to the extent not already netted out of the Inventory Value per
the stockledger or not treated as ineligible pursuant to the definition of Eligible Inventory, a reserve determined in the Agent’s (or any Co-Collateral Agent upon written notice to the Agent) Permitted Discretion for (i) hard (permanent)
markdowns, (ii) seasonal merchandise (including, without limitation, seasonal apparel which is more than four weeks past a specified selling season, and Inventory for sale during a specified holiday or event (other than seasonal apparel), after
the specified holiday or event has occurred), (iii) discontinued and clearance merchandise, (iv) change in product mix of merchandise, (v) change in pricing strategy or markon percentages, (vi) damaged merchandise,
(vii) price changes, or (viii) other adjustments as deemed appropriate; 

  
 20 

  
 (d) a
reserve established in the Agent’s (or any Co-Collateral Agent’s upon written notice to the Agent) Permitted Discretion for Inventory returned (other than as a result of reclamations) to either the return goods center
(“RGC”), the vendor, given to charity, or otherwise considered non-saleable, whether defective or non-defective. This reserve is to be calculated as the monthly average for the most recent rolling 12 fiscal month period of return
(other than as a result of reclamations) activity to the vendors, the RGC, given to charity, or otherwise considered non-saleable, whether defective or non-defective, both from the Stores and DCs, and is subject to change after the expiration of the
Reserve Notice Period at the Agent’s (or any Co-Collateral Agent’s upon written notice to the Agent) Permitted Discretion; and such reserve to be recalculated by the 10th day after each month-end and to be reflected on each Borrowing Base
Certificate delivered by Holdings after such date until the amount of such reserve is recalculated pursuant hereto; 
 (e) without duplication of any Reserve imposed under clause (a) of the definition of “Eligible In-Transit Inventory”, a reserve for that in transit Inventory purchased under “private
label” letters of credit issued by SRAC or Letters of Credit issued hereunder; and 
 (f) a reserve for
Inventory ordinarily classified as repair services. 
 “Inventory Value” shall mean, with
respect to any Inventory of the Loan Parties, the value of such Inventory valued at the lower of cost or market value on a basis consistent with the Loan Parties’ current and historical accounting practice in effect on the Effective Date, per
the stockledger (without giving effect to LIFO reserves and general ledger reserves for discontinued inventory, markdowns, intercompany profit, rebates and discounts, any cut off adjustments, revaluation adjustments, purchase price adjustments or
adjustments with respect to the capitalization of buying, occupancy, distribution and other overhead costs reflected on the balance sheet of the Loan Parties in respect of Inventory). The value of the Inventory as set forth above will, without
duplication for any Inventory Reserves, be calculated net of the reserve established by the Loan Parties on a basis consistent with the Loan Parties’ current and historical practice, in effect on the Effective Date, in respect of lost,
misplaced or stolen Inventory at such time. 
 “Investment” means, as to any Person, any direct
or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of equity interests of another Person, (b) a loan, advance or capital contribution to, guarantee or assumption of debt of, or
purchase or other acquisition of any other debt or interest in, another Person, or (c) any Acquisition. 

“Issuing Lender” means, collectively, Bank of America, N.A., Wachovia Bank, N.A., Wells Fargo Bank, N.A.,
and any other Lender which at the request of any Borrower and with the consent of the Agent, not to be unreasonably withheld, agrees to become an Issuing Lender, it being understood that with the consent of the requesting Borrower (not to be
unreasonably withheld) the Issuing Lender may arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Lender, in which case the term “Issuing Lender” shall include any such affiliate with respect to Letters of
Credit issued by such Affiliate. Each reference herein to “the Issuing Lender” shall be deemed to be a reference to the relevant Issuing Lender with respect to the relevant Letter of Credit. 

“Kmart” means Kmart Holding Corporation, a Delaware corporation. 

“Kmart Corp.” has the meaning provided in the Preamble. 

“L/C Commitment” means $1,500,000,000. 

“L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate then undrawn
and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit that have not then been reimbursed or discharged pursuant to Section 3.05 (after giving effect to the proviso
thereof). 

  
 21 

  

“Lenders” means, collectively, the Lenders under the Existing Credit Agreement, any other Persons
signatory hereto as a Lender, and each Person that shall become a party hereto as a lender pursuant to Section 9.07. 
 “Letters of Credit” means the collective reference to Commercial L/Cs, Banker’s Acceptances, and Standby L/Cs; individually, a “Letter of Credit”. Without limiting
the foregoing, the Existing Letters of Credit shall be deemed Letters of Credit issued under this Agreement. 

“Lien” means any lien, security interest or other charge or encumbrance of any kind or any other type of
preferential arrangement, including the lien or retained security title of a conditional vendor, and any easement, right of way or other encumbrance on title to real property, but excluding consignments or bailments of goods of third parties and the
interests of lessors under operating leases. 
 “Line Cap” means, at any time of determination,
the lesser of (i) the Aggregate Commitments, and (ii) the Borrowing Base. 

“Liquidation” means the exercise by the Agent or the Co-Collateral Agents of those rights and remedies
accorded to the Agent and/or the Co-Collateral Agents under the Loan Documents and applicable law as a creditor of the Loan Parties with respect to the realization on the Collateral, including (after the occurrence and continuation of an Event of
Default) the conduct by the Loan Parties acting with the consent of the Agent and the Co-Collateral Agents, of any public, private or “going-out-of-business”, “store closing” or other similar sale or any other disposition of the
Collateral for the purpose of liquidating the Collateral. 
 “Loan Documents” means this
Agreement, the Security Documents, the Notes, Fee Letter, any Application and any amendment, waiver, supplement or other modification to any of the foregoing. 
 “Loan Parties” means each Group Member that is a party to a Loan Document. 
 “Martha Stewart Reserve” shall mean, at any fiscal month end, a reserve equal to the then current accrued and unpaid royalty in excess of $25,000,000 earned for Martha Stewart merchandise
sold as reflected on the most recent Borrowing Base Certificate. 
 “Material Adverse Effect”
means a material adverse effect on (a) the business, condition (financial or otherwise), operations or assets of Holdings and its Subsidiaries taken as a whole, or (b) the ability of the Loan Parties taken as a whole to perform their
material obligations under the Loan Documents or (c) the validity or enforceability of the Loan Documents taken as a whole or the rights and remedies of the Agent, the Co-Collateral Agents or the Lenders thereunder taken as a whole (including,
but not limited to, the enforceability or priority of any Liens granted to the Co-Collateral Agents under the Loan Documents). 
 “Merger” has the meaning set forth in the Existing Credit Agreement. 
 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which Holdings or any ERISA Affiliate is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions. 
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of Holdings or any ERISA Affiliate and at
least one Person other than Holdings and the ERISA Affiliates or (b) was so maintained and in respect of which Holdings or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were
to be terminated. 

  
 22 

  

“Net Eligible Inventory” means, at any time, an amount equal to the Inventory Value of Eligible Inventory
less Inventory Reserves. 
 “Net Proceeds” means, (a) with respect to any Disposition by
any Loan Party or any of its Subsidiaries of any property or any casualty or condemnation of such property, the excess, if any, of (i) the sum of cash and cash equivalents received in such transaction (including any cash or cash equivalents
received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Debt that is secured by the applicable asset by
a Lien permitted hereunder which is senior to the Co-Collateral Agents’ Lien, if any, on such asset and that is required to be repaid (or to establish an escrow for the future repayment thereof) in connection with such transaction (other than
Debt under the Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by such Loan Party or such Subsidiary in connection with such transaction (including, without limitation, attorneys’ fees, accountants’
fees, investment banking fees, appraisals, and brokerage, legal, title and recording or transfer tax expenses and commissions) paid by any Loan Party to third parties (other than Affiliates), (C) transfer Taxes paid as a result thereof, and
(b) the excess of (i) the sum of the cash and cash equivalents received in connection with the issuance of any equity interests of any Loan Party or any Permitted Refinancing Debt over (ii) the underwriting discounts and commissions,
and other reasonable and customary out-of-pocket expenses, incurred by such Loan Party in connection therewith. 

“Net Orderly Liquidation Value” means the product of (i) Net Recovery Rate and (ii) the Net
Eligible Inventory. 
 “Net Recovery Rate” means the appraised orderly liquidation value (on an
“as is, where is” basis) of each Loan Party’s Eligible Inventory, net of costs and expenses estimated to be incurred in connection with such liquidation, which value is expressed as a percentage of the Inventory Value of Eligible
Inventory and shall be determined by the Co-Collateral Agents from time to time based on the most recent appraisal provided by an independent third party appraiser retained by the Co-Collateral Agents in consultation with the Borrowers. 

“Non-Consenting Lender” has the meaning specified in Section 9.16. 

“Non-Extending Lender” means each Lender listed on Schedule 1.01 under the heading Non-Extending
Lenders, who has not agreed to extend the Termination Date for its Commitment. 
 “Note” means a
promissory note of any Borrower payable to the order of any Lender evidencing the Commitment of such Lender. 

“Notice of Borrowing” has the meaning specified in Section 2.02(a). 

“Obligations” has the meaning set forth in the Guarantee and Collateral Agreement. 

“Original Agent” has the meaning provided in the Recitals. 

“OSH” means Orchard Supply Hardware Stores Corporation, a Delaware corporation. 

“Other Taxes” has the meaning specified in Section 2.15. 

“Overadvance” means any Advance to the extent that, immediately after its having been made, Capped Excess
Availability is less than zero. 
 “PACA” means the Perishable Agricultural Commodities Act of
1930, as amended. 

  
 23 

  

“PACA Liability Reserve” means an amount calculated on a monthly basis by the Agent to provide for vendor
liabilities pursuant to PACA. 
 “PASA” means the Packers and Stockyards Act of 1921, as
amended. 
 “PASA Liability Reserve” means the liability for vendor liabilities pursuant to
PASA. 
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Holdings or any ERISA Affiliate or to which Holdings or any ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 

“Perfection Certificate” means a certificate with respect to the Borrowers and the other Loan Parties in
form reasonably satisfactory to the Co-Collateral Agents. 
 “Permitted Acquisition” means any
Acquisition permitted under Section 6.02(c). 
 “Permitted Debt” means each of the
following as long as no Default or Event of Default exists at the time of incurrence thereof or would arise from the incurrence thereof: 
 (a) Debt outstanding on the date hereof and listed in the Perfection Certificate; 
 (b) Debt of any Loan Party to any other Loan Party; 
 (c) Debt of
Holdings or any Subsidiary of Holdings which is not a Loan Party to any Loan Party; provided, that (1) such Debt is incurred in the ordinary course of business consistent with past practices in connection with cash management, (2) such
Debt shall not exceed $100,000,000 in the aggregate at any one time outstanding or (3) (i) at the time of incurrence of any such Debt and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred
and be continuing, and (ii) after giving effect to any such Debt (A) the Pro Forma and Projected Capped Excess Availability is at least 25% of the Line Cap other than during the Holiday Season, and (B) during the Holiday Season
(x) the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (y) the Pro Forma and Projected Uncapped Excess Availability is at least 30% of the Borrowing Base, and (C) the Pro Forma Fixed Charge
Ratio shall be at least 1.1 to 1.0; 
 (d) Debt of any Group Member to any Subsidiary of Holdings which is not a
Loan Party; 
 (e) (i) purchase money Debt used to finance the acquisition of any fixed or capital assets,
including Capital Lease Obligations, and any Debt assumed in connection with the acquisition of any such assets or secured solely by a Lien on any such assets prior to the acquisition thereof, and (ii) Debt incurred in connection with
sale-leaseback transactions with respect to assets not constituting Collateral; 
 (f) Debt of any Person that
becomes a Subsidiary in an Acquisition permitted in accordance with Section 6.02(c), which Debt is existing at the time such Person becomes a Subsidiary (other than Debt incurred solely in contemplation of such Person’s becoming a
Subsidiary); 
 (g) the Obligations; 

(h) Other Debt in an amount not to exceed $500,000,000 in the aggregate outstanding at any time; 

  
 24 

  
 (i)
Debt described in Section 6.02(a)(vi), provided, that such Debt (i) does not have a maturity date which is earlier than the Extended Termination Date, (ii) is incurred on arm’s-length terms, (iii) is subject to
an intercreditor agreement in the form of either Exhibit F or Exhibit G, as applicable (or such other forms as the Co-Collateral Agents may agree in their Permitted Discretion), and (iv) the security documents, if any, with respect to such Debt
are reasonably satisfactory to the Co-Collateral Agents in their Permitted Discretion; 
 (j) any other Debt,
provided, that such Debt (i) does not require the repayment of principal prior to the Extended Termination Date in excess of 1.0% of the original principal amount thereof per annum (excluding, for the avoidance of doubt,
repayments required as a result of the sale of assets and repayments required in connection with an event that would constitute an Event of Default under Section 7.01(g) hereof) (ii) does not have a maturity date which is earlier than the
Extended Termination Date and (iii) is incurred on arm’s-length terms; 
 (k) Debt of the type
specified in clause (g) of the definition thereof to the extent such Debt constitutes a Permitted Investment; 
 (l) Debt in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations, in each case provided in the ordinary course of business, including those
incurred to secure health, safety and environmental obligations in the ordinary course of business; 
 (m) Debt
arising from overdraft facilities and/or the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management services (including,
but not limited to, intraday, ACH and purchasing card/T&E services) in the ordinary course of business; provided, that (x) such Debt (other than credit or purchase cards) is extinguished within ten Business Days of notification to
the applicable Loan Party of its incurrence and (y) such Debt in respect of credit or purchase cards is extinguished within 60 days from its incurrence; 

(n) Debt arising from agreements of Holdings or any Subsidiary providing for indemnification, adjustment of purchase or
acquisition price or similar obligations, in each case, incurred or assumed in connection with any Permitted Acquisition or the disposition of any business, assets or any Subsidiary not prohibited by this Agreement, other than guarantees of Debt
incurred by any Person acquiring all or any portion of such business, assets or any Subsidiary for the purpose of financing such Acquisition; 
 (o) Debt consisting of (i) the financing of insurance premiums or (ii) take or pay obligations contained in supply arrangements, in each case, in the ordinary course of business; and 

(p) Permitted Refinancing Debt. 
 “Permitted Discretion” means a determination made in good faith and in the exercise of commercially reasonable business judgment. 

“Permitted Dispositions” means any of the following: 

(a) transfers and Dispositions of Inventory in the ordinary course of business; 

(b) transfers and Dispositions among the Loan Parties; 

(c) transfers and Dispositions by any Subsidiary of Holdings which is not a Loan Party to any Loan Party; 

  
 25 

  
 (d)
transfers and Dispositions by any Subsidiary of Holdings which is not a Loan Party to other Subsidiaries which are not Loan Parties; 
 (e) transfers and Dispositions (other than transfers and Dispositions of Inventory, Credit Card Accounts Receivable, Pharmacy Receivables or any other Collateral (as defined in the Guarantee and
Collateral Agreement on the Effective Date)) to any Subsidiary of Holdings which is not a Loan Party by any Loan Party provided, that any such Disposition of Collateral shall be (i) undertaken in the ordinary course of business or
(ii) on terms that are fair and reasonable and no less favorable to the Loan Party than it would obtain in a comparable arm’s length transaction with a Person that is not a Subsidiary of Holdings; 

(f) the sale of surplus, obsolete or worn out equipment or other property in the ordinary course of business by the
Borrowers or any Subsidiary; 
 (g) transfers and Dispositions of all or any portion of any Loan Party’s
assets, including any equity interests of its Subsidiaries (other than the equity interests or substantially all of the assets of either Borrower), provided, that immediately after giving effect to any such disposition, (i) no Default or
Event of Default then exists, and (ii) either (A) the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, or (B) such Loan Party uses the Net Proceeds of such Disposition to repay Advances in an amount
equal to the lesser of (x) 100% of such Net Proceeds and (y) an amount sufficient to cause Pro Forma and Projected Capped Excess Availability to be 15% or more of the Line Cap, and (iii) if the Disposition is to a Subsidiary or
Affiliate of a Loan Party which is not a Loan Party, such Disposition shall be on terms that are fair and reasonable and no less favorable to the Loan Party than it would obtain in a comparable arm’s length transaction with a Person that is not
a Subsidiary or Affiliate of a Loan Party; 
 (h) transfers and Dispositions which constitute Restricted
Payments, that are otherwise permitted hereunder; 
 (i) Dispositions permitted pursuant to Section 6.02(b)
hereof; 
 (j) the sale of other Policy Investments in the ordinary course of business; 

(k) the sale or Disposition of defaulted receivables and the compromise, settlement and collection of receivables in the
ordinary course of business or in bankruptcy or other proceedings concerning the other account party thereon and not as part of an accounts receivable financing transaction; 

(l) leases, licenses or subleases or sublicenses of any real or personal property not constituting Collateral in the
ordinary course of business; 
 (m) any surrender or waiver of contract rights or the settlement, release,
recovery on or surrender of contract, tort or other claims of any kind (other than, in each case, with respect to rights to license the Related Intellectual Property, unless the limited license granted to the Co-Collateral Agents in such Related
Intellectual Property pursuant to the Loan Documents remains in effect and is acknowledged by the licensee) to the extent that any of the foregoing could not reasonably be expected to have a Material Adverse Effect; 

(n) sales of Inventory (other than Eligible Inventory) determined by the management of the applicable Loan Party not to be
saleable in the ordinary course of business of such Loan Party or any of the Loan Parties; and 
 (o) transfers
of assets, including Inventory, in connection with Store closings (and/or department closings within Stores) permitted pursuant to Section 6.02(l). 
 “Permitted Holder” means ESL Investments, Inc. and any of its Affiliates other than a Group Member. 

  
 26 

  

“Permitted Holder Lender” means the Permitted Holder, provided, that, such Permitted Holder
executes a waiver in form and substance reasonably satisfactory to the Agent that it shall have no right whatsoever with respect to that portion of the Commitments which it holds (a) to consent to any amendment, modification, waiver, consent or
other such action with respect to any of the terms of any Loan Document, (b) otherwise to vote on any matter related to any Loan Document, (c) to require Agents or any Lender to undertake any action (or refrain from taking any action) with
respect to any Loan Document, (d) to attend any meeting with the Agent or any Lender or receive any information from the Agent or any Lender, (e) to the benefit of any advice provided by counsel to the Agents or the other Lenders or to
challenge the attorney-client privilege of the communications between the Agents, such other Lenders and such counsel, or (f) make or bring any claim, in its capacity as Lender, against any Agent with respect to the fiduciary duties of such
Agent or Lender and the other duties and obligations of the Agents hereunder; except, that, no amendment, modification or waiver to any Loan Document shall, without such Permitted Holder Lender’s consent, deprive any Permitted Holder Lender of
its pro rata share of any payments to which the Lenders as a group are otherwise entitled hereunder or otherwise single out, or intentionally discriminate against the Permitted Holder Lender, as such. 

“Permitted Investments” means each of the following as long as no Default or Event of Default exists at
the time of the making such of Investment or would arise from the making of such Investment: 
 (a) Investments
existing on, or contractually committed as of, the Effective Date, and set forth in the Perfection Certificate; 

(b) (i) Investments by any Loan Party and its Subsidiaries in their respective Subsidiaries and in OSH outstanding on the
Effective Date, (ii) Investments by any Loan Party and its Subsidiaries in Loan Parties, and (iii) Investments by Subsidiaries that are not Loan Parties in Holdings or any Subsidiary; 

(c) other Investments of any Loan Party in any other Subsidiary of Holdings which is not a Loan Party; provided,
that (1) such Investment is incurred in the ordinary course of business consistent with past practices in connection with cash management, (2) such Investments shall not exceed $100,000,000 in the aggregate at any one time outstanding or
(3) (a) at the time of any such Investment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such Investment (A) the
Pro Forma and Projected Capped Excess Availability is at least 25% of the Line Cap other than during the Holiday Season, and (B) during the Holiday Season (x) the Pro Forma and Projected Capped Excess Availability is at least 15% of the
Line Cap, and (y) the Pro Forma and Projected Uncapped Excess Availability is at least 30% of the Borrowing Base, and (C) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; 

(d) Investments of any Loan Party in any other Person not constituting an Acquisition; provided that (a) at
the time of any such Investment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such Investment (A) the Pro Forma and Projected
Capped Excess Availability is at least 25% of the Line Cap other than during the Holiday Season, and (B) during the Holiday Season (x) the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (y) the
Pro Forma and Projected Uncapped Excess Availability is at least 30% of the Borrowing Base, and (C) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; 

(e) Investments constituting a Permitted Acquisition and Investments held by the Person acquired in such Acquisition at
the time of such Acquisition (and not acquired in contemplation of such Acquisition); 
 (f) Investments arising
out of the receipt of noncash consideration for the sale of assets otherwise permitted under this Agreement; 

(g) Policy Investments; 

  
 27 

  
 (h)
Investments in Swap Contracts not entered into for speculative purposes; 
 (i) to the extent not prohibited by
applicable law, advances to officers, directors and employees and consultants of the Group Members made for travel, entertainment, relocation and other ordinary business purposes; 

(j) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with or judgments against, customers and suppliers, in each case in the ordinary course of business or Investments acquired by any Group Member as a result of a foreclosure by any Loan Party with respect to any secured Investments or other
transfer of title with respect to any secured Investment in default; 
 (k) Investments held by any Person at the
time such Person is acquired in accordance with Section 6.02(c); 
 (l) Investments made with the common
stock of Holdings; 
 (m) accounts receivable, security deposits and prepayments arising and trade credit granted
in the ordinary course of business; 
 (n) Guarantees by Holdings or any Subsidiary of operating leases (other
than Capital Lease Obligations) or of other obligations that do not constitute Debt, in each case entered into by Holdings or any Subsidiary in the ordinary course of business; 

(o) advances in the form of a prepayment of expenses, so long as such expenses are being paid in accordance with customary
trade terms of the applicable Group Member; 
 (p) Investments consisting of the licensing or contribution of
Intellectual Property pursuant to joint marketing arrangements with other Persons, provided that no such Investment shall impair in any manner the limited license granted to the Co-Collateral Agents in such Intellectual Property pursuant to the Loan
Documents; 
 (q) Investments in joint ventures that own real properties upon which Stores are located existing
as of the Effective Date and entered into hereafter in the ordinary course of business; and 
 (r) other
Investments in an amount not to exceed $250,000,000 in the aggregate outstanding at any time; provided that no Investment pursuant to this clause (r) shall be made by any Loan Party in any Subsidiary of Holdings which is not a Loan
Party. 
 “Permitted Liens” means: 

(a) Liens for taxes, assessments and governmental charges or levies to the extent such taxes, assessments or
governmental charges are being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained; 
 (b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business
securing obligations that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings and as to which appropriate reserves are being maintained; 

(c) landlords’ Liens arising in the ordinary course of business securing (i) rents not yet due and payable,
(ii) rent for Stores in an amount not to exceed the monthly base rent due for the immediately preceding calendar month and (iii) rents for Stores in excess of the amount set forth in the preceding clause (ii) so long as such amounts
are being contested in good faith by appropriate proceedings and as to which appropriate reserves are being maintained; 

  
 28 

  
 (d) any
attachment or judgment lien not constituting an Event of Default under Section 7.01(f); 
 (e) Liens
presently existing or hereafter created in favor of the Co-Collateral Agents, on behalf of the Credit Parties; 

(f) Liens arising by the terms of commercial letters of credit entered into in the ordinary course of business to secure
reimbursement obligations thereunder, provided that such Liens only encumber the title documents and underlying goods relating to such letters of credit; 
 (g) claims under PACA and PASA; 
 (h) Liens in favor of issuers of
credit cards arising in the ordinary course of business securing the obligation to pay customary fees and expenses in connection with credit card arrangements; 
 (i) Liens incurred or deposits made by any Group Member in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, bids, leases, government contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money); 

(j) easements, rights-of-way, covenants, conditions, restrictions (including zoning restrictions), declarations, rights of
reverter, minor defects or irregularities in title and other similar charges or encumbrances, whether or not of record, that do not, in the aggregate, interfere in any material respect with the ordinary course of business, or in respect of any real
property which is part of the Collateral, any title defects, liens, charges or encumbrances (other than such prohibited monetary Liens) which the title company is prepared to endorse or insure by exclusion or affirmative endorsement reasonably
acceptable to the Agent and which is included in any title policy; 
 (k) any interest or title of a lessor or
sublessor under, and Liens arising from precautionary UCC financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases and subleases permitted by this Agreement; 

(l) normal and customary rights of setoff upon deposits of cash or other Liens originating solely by virtue of any
statutory or common law provision relating to bankers’ liens, rights of setoff or similar rights in favor of banks or other depository institutions; 
 (m) Liens on cash and cash equivalents securing obligations in respect of standby or trade letters of credit not constituting Obligations or trade-related bank guarantees; 

(n) Liens granted to consignors who have properly perfected on consigned Inventory owned by such consignors and created in
the ordinary course of business; 
 (o) Liens on premium rebates securing financing arrangements with respect to
insurance premiums; 
 (p) deposits and other customary Liens to secure the performance of bids, trade contracts
(other than for Indebtedness), leases (other than Capital Lease Obligations), statutory and regulatory obligations, surety and appeal bonds, performance and return of money bonds, bids, leases, government contracts, trade contracts, agreements with
utilities, and other obligations of a like nature incurred in the ordinary course of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of business; 

  
 29 

  
 (q)
Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness or (ii) relating to pooled deposit or sweep accounts of the
Borrowers or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrowers or any Subsidiary; 

(r) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods; 
 (s) Liens solely on any cash earnest money deposits made by any
Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement in respect of any Investment permitted hereunder; 
 (t) Liens on securities that are the subject of repurchase agreements constituting Policy Investments; 
 (u) Liens on cash and cash equivalents securing Swap Contracts incurred in the ordinary course of business; and 
 (v) other Liens on cash and cash equivalents in an amount not to exceed $25,000,000 held by a third party as security for any obligation (other than Indebtedness, but including letters of credit)
permitted to be incurred by any Group Member hereunder. 
 “Permitted Overadvance” means an
Overadvance made by the Agent, in its Permitted Discretion, or at the direction of any Co-Collateral Agent, which: 
 (a) is made to maintain, protect or preserve the Collateral and/or the Credit Parties’ rights under the Loan Documents or which is otherwise for the benefit of the Credit Parties; 

(b) is made to enhance the likelihood of, or to maximize the amount of, repayment of the Obligations; 

(c) is made to pay any other amount chargeable to any Loan Party hereunder; and 

(d) together with all other Permitted Overadvances then outstanding, shall not (i) exceed five percent (5%) of
the Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain outstanding for more than thirty (30) consecutive Business Days, unless in each case, the Required Lenders otherwise agree; 

provided, however, that the foregoing shall not (i) modify or abrogate any of the provisions of Article III regarding
any Lender’s obligations with respect to Letters of Credit, or (ii) result in any claim or liability against the Agent or the Co-Collateral Agents (regardless of the amount of any Overadvance) for “inadvertent Overadvances” (i.e.
where an Overadvance results from changed circumstances beyond the control of the Agent or the Co-Collateral Agents (such as a reduction in the collateral value)), and such “inadvertent Overadvances” shall not reduce the amount of
Permitted Overadvances allowed hereunder, and further, provided, that in no event shall the Agent make an Overadvance, if after giving effect thereto, the principal amount of the Extensions of Credit would exceed the Aggregate
Commitments (as in effect prior to any termination of the Commitments pursuant to Section 2.06 hereof). 

“Permitted Refinancing Debt” shall mean any Debt issued in exchange for, or the Net Proceeds of which are
used to extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”), the Debt being Refinanced (or previous refinancings thereof constituting Permitted Refinancing Debt); provided, that (a) the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Debt does not exceed the principal amount (or accreted value, if applicable) of the Debt so Refinanced (plus unpaid accrued interest and premium (including tender
premiums) thereon and underwriting 

  
 30 

 
discounts, defeasance costs, fees, commissions and expenses), (b) the maturity date of such Permitted Refinancing Debt shall not be earlier than the maturity date of the Debt being
Refinanced and weighted average life to maturity of such Permitted Refinancing Debt shall be greater than or equal to the weighted average life to maturity of the Debt being Refinanced, (c) if the Debt being Refinanced is subordinated in right
of payment to the Obligations under this Agreement, such Permitted Refinancing Debt shall be subordinated in right of payment to such Obligations on terms at least as favorable to the Lenders as those contained in the documentation governing the
Debt being Refinanced, (d) no Permitted Refinancing Debt shall have different obligors, or greater guarantees or security, than the Debt being Refinanced; and (e) the Permitted Refinancing Debt shall otherwise be on terms which would not
reasonably likely result in a Material Adverse Effect. 
 “Person” means an individual,
partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof. 

“Pharmacy Receivables” means Accounts arising from the sale of prescription drugs or other Inventory
which can be dispensed only through an order of a licensed professional. 
 “Plan” means a
Single Employer Plan or a Multiple Employer Plan. 
 “Policy Investments” means Investments made
in accordance with the investment policy of the Loan Parties set forth on Schedule 6.02(k)(ii), as such policy may be amended from time to time with the reasonable consent of the Agent, such consent not to be unreasonably withheld.

 “Pricing Grid” means the pricing grid set forth on Schedule IA. 

“Pro Forma and Projected Capped Excess Availability” shall mean, for any date of calculation, after
giving effect to the applicable transaction or payment, the pro forma and projected Capped Excess Availability for the subsequent twelve (12) fiscal month period, determined as of the last day of each fiscal month in such period and based on
Holdings’ good faith projections that are used to run the businesses of the Borrowers and prepared in accordance with past practice. 
 “Pro Forma and Projected Uncapped Excess Availability” shall mean, for any date of calculation, after giving effect to the applicable transaction or payment, the pro forma and projected
Uncapped Excess Availability for the subsequent twelve (12) fiscal month period, determined as of the last day of each fiscal month in such period and based on Holdings’ good faith projections that are used to run the businesses of the
Borrowers and prepared in accordance with past practice. 
 “Pro Forma Fixed Charge Ratio” shall
mean, for any date of calculation, the Fixed Charge Ratio as of the last day of the most recently completed fiscal quarter for which financial statements pursuant to Section 6.01(j) are available (the “Reference Date”), after
giving pro forma effect to any applicable transaction or payment as if such transaction or payment had occurred on the first day of the four fiscal quarter period ending on the Reference Date. 

“Pro Forma Uncapped Excess Availability” shall mean, for any date of calculation, the pro forma Uncapped
Excess Availability, after giving effect to the applicable transaction or payment. 
 “Pro Forma Uncapped
Excess Availability Condition” shall mean, for any date of calculation with respect to any transaction, the Pro Forma Uncapped Excess Availability immediately before, and after giving effect to, such transaction, will be equal to or greater
than 25% of the Borrowing Base. 
 “Refunded Swingline Advances” has the meaning specified in
Section 2.04(b). 
 “Register” has the meaning specified in Section 9.07(d).

  
 31 

  

“Reimbursement Obligation” means the obligation of the Borrowers to reimburse the Issuing Lender pursuant
to Section 3.05 for amounts drawn under Letters of Credit. 
 “Related Intellectual
Property” means such rights with respect to the Intellectual Property of Holdings and its Subsidiaries (other than Sears Canada) as are reasonably necessary to permit the Co-Collateral Agents to enforce their rights and remedies under the
Loan Documents with respect to the Collateral. 
 “Reorganization” means with respect to any
Multiemployer Plan, the condition that such Plan is in reorganization within the meaning of Section 4241 of ERISA. 
 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived under subsections .27,
..28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043. 
 “Required Lenders” means, at
any time, the holders of more than 50% of the Commitments then in effect or, if the Commitments have been terminated, the holders of more than 50% of the Total Extensions of Credit then outstanding. 

“Requirements of Law” means as to any Person, the Certificate of Incorporation and By-Laws or other
organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property
or to which such Person or any of its property is subject. 
 “Reserve Notice Period” means one
day prior notice to the Borrowers, unless a Cash Dominion Event has occurred and is continuing, in which case the Reserve Notice Period shall mean any notice period (including no notice) determined by any Co-Collateral Agent in its Permitted
Discretion to be necessary or desirable to protect the interests of the Credit Parties. 
 “Restated
Commitment Fee Grid” means the pricing grid set forth on Schedule IB. 
 “Restricted
Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any equity interests in Holdings or any Subsidiary of Holdings, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such equity interests in Holdings or any Subsidiary of Holdings or any option, warrant or
other right to acquire any such equity interests in Holdings or any Subsidiary of Holdings. 
 “Revolving
Advance” has the meaning specified in Section 2.01. A Revolving Advance may be a Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a “Type” of Revolving Advance). 

“Sears” means Sears, Roebuck and Co., a New York corporation. 

“Sears Canada” means the collective reference to Sears Canada Inc., a Canadian corporation, and its
Subsidiaries. 
 “SEC” means the United States Securities and Exchange Commission. 

“Security Documents” means the collective reference to the Guarantee and Collateral Agreement, and all
other security documents hereafter delivered to the Co-Collateral Agents granting a Lien on any property of any Person to secure the obligations and liabilities of any Loan Party under any Loan Document. 

  
 32 

  

“Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA,
that (a) is maintained for employees of any Borrower or any ERISA Affiliate and no Person other than such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which any Borrower or any ERISA Affiliate could have
liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 

“Solvent” means, when used with respect to any Person, that, as of any date of determination,
(a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its
business, and (c) such Person will be able to pay its debts as they mature. 
 “SRAC” has
the meaning provided in the Preamble. 
 “Standby L/C” means an irrevocable letter of credit or
similar instrument under which the Issuing Lender agrees to make payments in Dollars for the account of any Borrower, on behalf of any Group Member in respect of obligations of such Group Member incurred pursuant to contracts made or performances
undertaken or to be undertaken or like matters relating to contracts to which such Group Member is or proposes to become a party, including, without limiting the foregoing, for insurance purposes or in respect of advance payments or as bid or
performance bonds or for any other purpose for which a standby letter of credit might be issued. 

“Store” means any store owned or leased and operated by any Loan Party. 

“Store Closure Sale” means a store closure sale that, if including more than twenty (20) stores
(whether in one transaction or a series of related transactions), is properly managed by an independent, nationally recognized, professional retail inventory liquidation firm reasonably acceptable to the Co-Collateral Agents, over a defined period
that is anticipated by the Borrowers not to exceed 12 weeks (on average) from the date of the same commencement. 

“Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company,
trust or estate of which (or in which) more than 50% of the issued and outstanding capital stock or other equity interest having ordinary voting power to elect a majority of the Board of Directors or other governing body of such corporation,
partnership, joint venture, limited liability company, trust or estate (irrespective of whether at the time capital stock or other equity interests of any other class or classes of such corporation, partnership, joint venture, limited liability
company, trust or estate shall or might have voting power upon the occurrence of any contingency), is at the time directly or indirectly owned by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such
Person’s other Subsidiaries; provided, that Unrestricted Subsidiaries shall be deemed not to constitute “Subsidiaries” for the purposes of this Agreement (other than the definition of “Unrestricted Subsidiary” and the
first and second usage of the term “Subsidiary” in Section 7.01(k)). 
 “Subsidiary
Guarantor” means each direct and indirect wholly owned Domestic Subsidiary of Holdings, that owns Inventory, Credit Card Accounts Receivable, Pharmacy Receivables, or other Collateral (as defined in the Guarantee and Collateral Agreement).

 “Supermajority Lenders” means, at any time, the holders of 66- 2/3% or more of Commitments then in effect or, if the
Commitments have been terminated, the holders of 66- 2/3% or more of the Total Extensions of Credit then outstanding. 
 “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or 

  
 33 

 
forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or
not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master Agreement. 

“Swingline Advances” has the meaning specified in Section 2.03. 

“Swingline Commitment” means the obligation of the Swingline Lender to make Swingline Advances pursuant
to Section 2.03 in an aggregate principal amount at any one time outstanding not to exceed $100,000,000. 

“Swingline Lender” means the Bank, in its capacity as the lender of Swingline Advances. 

“Swingline Participation Amount” has the meaning specified in Section 2.04(c). 

“Syndication Agent” has the meaning provided in the Preamble and any successors thereto. 

“Taxes” has the meaning specified in Section 2.15. 

“Termination Date” means the earlier of (a) March 24, 2010 and (ii) the date of
termination in whole of the Commitments pursuant to Section 2.06 or 7.01. 
 “Third Party Payor
Notification” has the meaning specified in Section 6.01(m)(i)(C). 
 “Third Party
Payors” means any private health insurance company that is obligated to reimburse or otherwise make payments to pharmacies which sell prescription drugs to eligible patients under any insurance contract with such private health insurer.

 “Total Extensions of Credit” means at any time, the aggregate amount of the Extensions of
Credit of the Lenders outstanding at such time. 
 “Type” means either a Base Rate Advance or a
Eurodollar Rate Advance. 
 “UCC” means the Uniform Commercial Code as from time to time in
effect in the State of New York, provided, however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof, the term shall have the meaning set forth in Article 9; provided further that, if
by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than New York, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or
non-perfection or availability of such remedy, as the case may be. 
 “Uncapped Excess
Availability” means the excess of the Borrowing Base over the Total Extensions of Credit. 

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Internal Revenue Code for the
applicable plan year. 

  
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“Unrestricted Subsidiary” means OSH and its Subsidiaries, provided, that in each case, (i) at
no time shall any creditor of any such Person have any claim (whether pursuant to a guarantee or otherwise) against Holdings or any of its other Subsidiaries (other than another Unrestricted Subsidiary) in respect of any Debt or other obligation
(except for obligations arising by operation of law, including joint and several liabilities for taxes, ERISA and similar items) of any such Person, other than (a) claims arising or relating to the period, or any transaction effected prior to
November 23, 2005, and (b) claims of trade vendors incurred in the ordinary course; (ii) neither Holdings nor any of its Subsidiaries (other than another Unrestricted Subsidiary) shall become a general partner of any such Person;
(iii) no default with respect to any Debt of any such Person (including any right which the holders thereof may have to take enforcement action against any such Person) shall permit, solely as a result of such Debt being in default or
accelerated (upon notice, lapse of time or both), any holder of any Debt of Holdings or its other Subsidiaries (other than another Unrestricted Subsidiary) to declare a default on such other Debt or cause the payment thereof to be accelerated or
payable prior to its final scheduled maturity; and (iv) no such Person shall own any equity interests of, or own or hold any Lien on any property of, any other Subsidiary of Holdings (other than another Unrestricted Subsidiary). 

“Voting Stock” means capital stock issued by a corporation, or equivalent interests in any other Person,
the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a
contingency. 
 “WFRF” has the meaning provided in the Preamble. 

SECTION 1.02. Computation of Time Periods. In this Agreement, unless otherwise specified, (a) in the computation of periods
of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”
(b) “including” means “including without limitation”; and (c) any reference to a time of day means Eastern time. 
 SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein or in the other Loan Documents shall be construed in accordance with U.S. generally accepted accounting
principles (“GAAP”) which for purposes of Section 6.03 shall be consistently applied. If at any time any change in U.S. generally accepted accounting principles would affect the computation of any financial ratio or requirement set
forth herein, and either the Borrowers or the Required Lenders shall so request, the Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such
change in GAAP (subject to the approval of the Required Lenders which shall not be unreasonably withheld), provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change
in principles and (ii) the Borrowers shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of
such ratio or requirement made before and after giving effect to such change in GAAP. For the avoidance of doubt, no retroactive change in GAAP shall apply to the construction of accounting terms under this Agreement in the absence of an amendment
hereto in accordance with the terms of this Section 1.03. 
 SECTION 1.04. Other Interpretive Provisions. With
reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document, the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Unless the context
requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision 

  
 35 

 
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan
Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending replacing or interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) 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. 

ARTICLE II 

AMOUNTS AND TERMS OF THE ADVANCES 
 SECTION 2.01. The Revolving Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make revolving advances (the “Revolving Advances”) to the
Borrowers from time to time on any Business Day during the period from the Effective Date until the Termination Date in the case of Non-Extending Lenders or the Extended Termination Date in the case of Extending Lenders, as applicable, in an
aggregate amount at any one time outstanding which, when added to such Lender’s Commitment Percentage of the sum of (i) the aggregate principal amount of the Swingline Advances then outstanding and (ii) the L/C Obligations then
outstanding, equals the amount of such Lender’s Commitment; provided, that the aggregate principal amount of any Borrowing made at any time, when aggregated with all other then outstanding Extensions of Credit, shall not exceed the Line
Cap at such time. Each Borrowing under this Section 2.01 shall be in an aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof (provided, that the Swingline Lender may request, on behalf of the applicable
Borrower, Borrowings that are Base Rate Advances in other amounts pursuant to Section 2.04(b)) and shall consist of Revolving Advances of the same Type made on the same day by the Lenders ratably according to their respective Commitments.
Within the limits set forth in this Section 2.01, the Borrowers may borrow under this Section 2.01, prepay pursuant to Section 2.11 and reborrow under this Section 2.01. 

SECTION 2.02. Making the Revolving Advances. 
 (a) Each Borrowing under Section 2.01 shall be made on notice, given not later than (x) 12:00 noon on the third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances or (y) 1:00 p.m. on the date of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the applicable Borrower to the Agent, which shall give to each Lender prompt
notice thereof by telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed immediately in writing, by email attachment or by telecopier, in substantially the form of
Exhibit A hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type of Revolving Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, and (iv) in the case of a Borrowing
consisting of Eurodollar Rate Advances, initial Interest Period for each such Revolving Advance. Each Lender shall, before 2:00 P.M. on the date of such Borrowing make available for the account of its Applicable Lending Office to the Agent at
the Agent’s Account, in same day funds, such Lender’s ratable (in accordance with its Commitment Percentage) portion of such Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article IV, the Agent will make such funds available to the Borrower requesting such Borrowing at the Agent’s address referred to in Section 9.02. 
 (b) Anything in subsection (a) above to the contrary notwithstanding, (i) a Borrower may not select Eurodollar Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less
than $5,000,000 or if the obligation of the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to Section 2.09 or 2.13 and (ii) (x) prior to the Termination Date, the Eurodollar Rate Advances may not be outstanding
as part of more than seven separate Borrowings for Extending Lenders or more than seven separate Borrowings for Non-Extending Lenders, and (y) after the Termination Date until the Extended Termination Date, the Eurodollar Rate Advances may not
be outstanding as part of more than ten separate Borrowings. 
 (c) Each Notice of Borrowing shall be irrevocable and binding on
the applicable Borrower. In the case of any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate Advances, the applicable Borrower shall indemnify each Lender against any loss, cost or expense incurred by
such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such 

  
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Borrowing the applicable conditions set forth in Article IV, including any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment
of deposits or other funds acquired by such Lender to fund the Revolving Advance to be made by such Lender as part of such Borrowing when such Revolving Advance, as a result of such failure, is not made on such date. 

(d) Unless the Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available
to the Agent such Lender’s ratable portion of such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and
the Agent may, in reliance upon such assumption, make available to the applicable Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Agent, such Lender and
the applicable Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to such Borrower until the date such amount is
repaid to the Agent, at (i) in the case of such Borrower, the interest rate applicable at the time to Revolving Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to
the Agent such corresponding amount, such amount so repaid shall be made available to the applicable Borrower and shall constitute such Lender’s Revolving Advance as part of such Borrowing for purposes of this Agreement. 

(e) The failure of any Lender to make the Revolving Advance to be made by it as part of any Borrowing shall not relieve any other Lender
of its obligation, if any, hereunder to make its Revolving Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Revolving Advance to be made by such other Lender on the date of any
Borrowing. 
 SECTION 2.03. The Swingline Advances. (a) Subject to the terms and conditions hereof, the Swingline
Lender agrees to make a portion of the credit otherwise available to the Borrowers under the Commitments from time to time during the period from the Effective Date until the Extended Termination Date by making swing line advances
(“Swingline Advances”) to the Borrowers; provided that (i) the aggregate principal amount of Swingline Advances outstanding at any time shall not exceed the Swingline Commitment then in effect (notwithstanding that the
Swingline Advances outstanding at any time, when aggregated with the Swingline Lender’s other outstanding Revolving Advances, may exceed the Swingline Commitment then in effect) and (ii) the amount of any Swingline Advance made at any
time, when aggregated with all other then outstanding Extensions of Credit, shall not exceed the Line Cap at such time; provided that the Swingline Lender shall not be obligated to make any Swingline Loan at any time when any Lender is at
such time a Defaulting Lender or Deteriorating Lender hereunder, unless the Swingline Lender has entered into satisfactory arrangements with the Borrowers or such Lender to eliminate the Swingline Lender’s risk with respect to such Lender.
During the period from the Effective Date until the Extended Termination Date, the Borrowers may use the Swingline Commitment by borrowing, repaying and reborrowing, all in accordance with the terms and conditions hereof. Swingline Advances shall
only be available as Base Rate Advances. 
 (b) Each Borrower shall repay to the Swingline Lender the then unpaid principal
amount of each Swingline Advance made to it on the earlier of (i) the Extended Termination Date, and (ii) the first date after such Swingline Advance is made that is the 15th or last day of a calendar month and is at least two Business
Days after such Swingline Advance is made; provided that on each date that a Revolving Advance is borrowed by a Borrower, such Borrower shall repay all Swingline Advances then outstanding, if any, and may use all or a portion of such
Revolving Advance to fund such repayment. 
 SECTION 2.04. Making the Swingline Advances. 

(a) Each Borrowing under Section 2.03 shall be made on notice, given not later than 1:00 p.m. on the date of the proposed Borrowing,
by the applicable Borrower to the Agent and Swingline Lender. Each such Notice of a Borrowing shall be by telephone, confirmed immediately in writing, by email attachment or by telecopier, in substantially the form of Exhibit A hereto,
specifying therein the requested (i) date of such Borrowing and (ii) aggregate amount of such Borrowing. Each Borrowing under the Swingline Commitment shall be in an amount equal to $500,000 or a whole multiple of $100,000 in excess
thereof. Not later than 3:00 P.M. on the date of the proposed Borrowing, the Swingline Lender shall make available to the Agent at the Agent’s Account an amount 

  
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in immediately available funds equal to the amount of the Swingline Advance to be made by the Swingline Lender. Upon fulfillment of the applicable conditions set forth in Article IV, the Agent
shall make the proceeds of such Swingline Advance available to the Borrower requesting such Borrowing at the Agent’s address referred to in Section 9.02. 
 (b) The Swingline Lender, at any time and from time to time in its sole and absolute discretion may, on behalf of the Borrowers (which hereby irrevocably direct the Swingline Lender to act on their
behalf), by notice given by the Swingline Lender no later than 1:00 p.m., request each Lender to make, and each Lender hereby agrees to make, a Revolving Advance, in an amount equal to such Lender’s Commitment Percentage of the aggregate amount
of the Swingline Advances (the “Refunded Swingline Advances”) outstanding on the date of such notice, to repay the Swingline Lender. Each Lender shall make the amount of such Revolving Advance available to the Agent at the
Agent’s Account in same day funds, not later than 2:00 P.M. on the date of such notice. The proceeds of such Revolving Advances shall be immediately made available by the Agent to the Swingline Lender for application by the Swingline Lender to
the repayment of the Refunded Swingline Advances. Each Borrower irrevocably authorizes the Swingline Lender to charge such Borrower’s accounts with the Agent (up to the amount available in each such account) in order to immediately pay the
amount of such Refunded Swingline Advances to the extent amounts received from the Lenders are not sufficient to repay in full such Refunded Swingline Advances. 
 (c) If prior to the time a Revolving Advance would have otherwise been made pursuant to Section 2.04(b), one of the events described in Section 7.01 shall have occurred and be continuing or if
for any other reason, as determined by the Swingline Lender in its sole discretion, Revolving Advances may not be made as contemplated by Section 2.04(b), each Lender shall, on the date such Revolving Advance was to have been made pursuant to
the notice referred to in Section 2.04(b), purchase for cash an undivided participating interest in the then outstanding Swingline Advances by paying to the Swingline Lender an amount (the “Swingline Participation Amount”)
equal to (i) such Lender’s Commitment Percentage multiplied by (ii) the sum of the aggregate principal amount of Swingline Advances then outstanding that were to have been repaid with such Revolving Advances. 

(d) Whenever, at any time after the Swingline Lender has received from any Lender such Lender’s Swingline Participation Amount, the
Swingline Lender receives any payment on account of the Swingline Advances, the Swingline Lender will distribute to such Lender its Swingline Participation Amount (appropriately adjusted, in the case of interest payments, to reflect whether such
payment is owed to a Non-Extending Lender or a Extending Lender and whether the corresponding interest rate owed to such Lender is calculated in accordance with Section 2.08(a) or 2.08(b), to reflect the period of time during which such
Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, to reflect such Lender’s pro rata portion of such payment if such payment is not sufficient to pay the principal
of and interest on all Swingline Advances then due); provided, however, that in the event that such payment received by the Swingline Lender is required to be returned, such Lender will return to the Swingline Lender any portion
thereof previously distributed to it by the Swingline Lender. 
 (e) Each Lender’s obligation to make the Advances referred
to in Section 2.04(b) and to purchase participating interests pursuant to Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense
or other right that such Lender or any Borrower may have against the Swingline Lender, any Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy
any of the other conditions specified in Article IV, (iii) any adverse change in the condition (financial or otherwise) of any Borrower or any other Loan Party, (iv) any breach of this Agreement or any other Loan Document by any Borrower,
any other Loan Party or any other Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 
 SECTION 2.05. Fees. 
 (a) Commitment Fee. The Borrowers jointly and
severally agree to pay to the Agent (i) for the account of each Non-Extending Lender a commitment fee commencing on the Effective Date on the average daily amount of the Available Commitment of such Non-Extending Lender during the period for
which payment is made at a rate per annum equal to the Commitment Fee Rate in effect from time to time, and (ii) for the account of each Extending Lender a commitment fee commencing on the Effective Date on the average daily amount of the

  
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Available Commitment of such Extending Lender during the period for which payment is made at a rate per annum equal to the Extended Term Commitment Fee Rate in effect from time to time, in each
case payable in arrears quarterly on the 5th day
subsequent to the last day of each April, July, October and January, commencing June 30, 2009, and on the Termination Date or the Extended Termination Date, as applicable. 

(b) Other Fees. Holdings and the Borrowers shall pay to the Agent, the Co-Collateral Agents and the Lead Arrangers, as applicable,
the fees set forth in the applicable Fee Letter in the amounts and at the times specified therein. 
 SECTION 2.06. Optional
Termination or Reduction of the Commitments. 
 (a) On the Effective Date, (i) the Commitments of Aurora Bank FSB
(formerly known as Lehman Brothers Bank, FSB) and its Affiliates (“Lehman”) shall be terminated, and all Obligations owing to Lehman shall be paid in full and Lehman shall be discharged from any liability with respect to any outstanding
Letters of Credit and Swingline Advances, and (ii) the Commitments of certain Extending Lenders shall be reduced, in each case, without a pro rata reduction of the Commitments of any other Lenders. After such reduction, the Commitments of the
Lenders shall be as set forth on Schedule 1.01 hereto. 
 (b) After the Effective Date, the Borrowers shall have the right,
without penalty or premium and upon at least three Business Days’ notice to the Agent, to permanently terminate in whole or permanently reduce in part the unused portions of the respective Commitments of the Lenders, provided that no
such termination or reduction of the Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Advances made on the effective date thereof, the Total Extensions of Credit would exceed the aggregate amount of the
Commitments as so reduced. Any partial reduction of the Commitments shall be in the aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof; provided further that, except for any reduction pursuant to
Section 8.13, any such reduction shall first be applied ratably to the Commitments of the Non-Extending Lenders and after such Commitments have been terminated in full, shall be applied ratably to the Commitments of the Extending Lenders.

 (c) In addition to the Borrowers’ rights under Section 2.06(b), at any time after July 22, 2009, the
Commitment of any applicable Non-Extending Lenders shall be automatically terminated upon the repayment of the Obligations owed to such Non-Extending Lender in accordance with the provisions of Section 2.11(b) hereof. 

SECTION 2.07. Repayment of Advances. Each Borrower shall repay to the Agent (i) for the ratable account of the Non-Extending
Lenders on the Termination Date the aggregate principal amount of the Advances made to it by the Non-Extending Lenders then outstanding, and (ii) for the ratable account of the Extending Lenders on the Extended Termination Date the aggregate
principal amount of the Advances made to it by the Extending Lenders then outstanding. 
 SECTION 2.08. Interest on
Advances. 
 (a) Scheduled Interest Owed to Non-Extending Lenders. Each Borrower shall pay interest on the unpaid
principal amount of each Advance made to it and owing to each Non-Extending Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum: 

(i) Base Rate Advances. During such periods as such Advance is a Base Rate Advance, a rate per
annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the Applicable Margin for Base Rate Advances in effect from time to time, payable in the case of any Base Rate Advance (other than a
Swingline Advance), in arrears monthly on the 5th day
subsequent to the last day of each month during such periods and on the date such Base Rate Advance shall be Converted or paid in full. 
 (ii) Eurodollar Rate Advances. During such periods as such Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of
(x) the Eurodollar Rate for such Interest Period for such Advance plus  

  
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(y) the Applicable Margin for Eurodollar Rate Advances in effect from time to time, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of
more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in full. 

(b) Scheduled Interest Owed to Extending Lenders and Swingline Lender. Each Borrower shall pay interest on the unpaid principal
amount of each Advance made to it and owing to each Extending Lender and Swingline Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum: 

(i) Base Rate Advances. During such periods as such Advance is a Base Rate Advance, a rate per
annum equal at all times to the sum of (x) the Extended Term Base Rate in effect from time to time plus (y) the Extended Term Applicable Margin for Base Rate Advances, payable (I) in the case of any Base Rate Advance (other
than a Swingline Advance), in arrears monthly on the 5th
day subsequent to the last day of each month during such periods and on the date such Base Rate Advance shall be Converted or paid in full and (II) in the case of any Swingline Advance, on the date that such Swingline Advance is required to be
repaid. 
 (ii) Eurodollar Rate Advances. During such periods as such Advance is a Eurodollar Rate
Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the greater of (A) the Eurodollar Rate for such Interest Period for such Advance, and (B) 1.75%, plus (y) the
Extended Term Applicable Margin for Eurodollar Rate Advances, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every
three months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in full. 
 (c) Default Interest. Upon the occurrence and during the continuance of an Event of Default, at the option of the Agent or on the request of the Required Lenders, the Borrowers shall pay interest
on the unpaid principal amount of each Advance and Reimbursement Obligation owing to each Lender, payable in arrears on the dates referred to in Sections 2.08(a) and (b) above, at a rate per annum equal to 2% per annum above the rate per
annum required to be paid on such Advance or Reimbursement Obligation pursuant to Sections 2.08(a) and (b) above, as applicable. Further, the Borrowers shall pay interest, to the fullest extent permitted by law, on the amount of any interest,
fee or other amount (other than principal) payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand,
at a rate per annum equal to 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to (i) Sections 2.08(a)(i) in the case of any such amount owed to a Non-Extending Lender, and
(ii) Section 2.08(b)(i) in the case of any such amount owed to any other Person (including the Extending Lenders, the Agent and any Co-Collateral Agent). 
 (d) Regulation D Compensation. Each Lender that is subject to reserve requirements of the Board of Governors of the Federal Reserve System (or any successor) may require the Borrowers to pay,
contemporaneously with each payment of interest on the Eurodollar Rate Advances, additional interest on the related Eurodollar Rate Advances of such Lender at the rate per annum equal to the excess of (i) (A) the applicable Eurodollar Rate
divided by (B) one minus the Eurodollar Rate Reserve Percentage over (ii) the applicable Eurodollar Rate. Any Lender wishing to require payment of such additional interest (x) shall so notify the Agent and the Borrowers, in which case
such additional interest on the Eurodollar Rate Advances of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least five Business Days after the giving of such notice
and (y) shall notify the Agent and the Borrowers at least five Business Days prior to each date on which interest is payable on the amount then due it under this Section. Each such notification shall be accompanied by such information as the
Borrowers may reasonably request. 

  
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 SECTION 2.09.
Interest Rate Determination. 
 (a) The Agent shall give prompt notice to the Borrowers and the Lenders of the applicable
interest rate determined by the Agent for purposes of Sections 2.08(a) and 2.08(b). 
 (b) If, with respect to any
Eurodollar Rate Advances, the Required Lenders notify the Agent at least one Business Day before the date of any proposed Eurodollar Rate Advance that the Eurodollar Rate for any Interest Period for such Advances will not adequately reflect the cost
to such Required Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify the Borrowers and the Lenders, whereupon (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the
Agent shall notify the Borrowers and the Lenders that the circumstances causing such suspension no longer exist. 
 (c) If any
Borrower shall fail to select the duration of any Interest Period for any Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, the Agent will forthwith so notify
such Borrower and the Lenders and such Advances will automatically, on the last day of the then existing Interest Period therefor, Convert into Base Rate Advances. 
 (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $5,000,000, such
Advances shall automatically Convert into Base Rate Advances. 
 (e) Upon the occurrence and during the continuance of any Event
of Default, at the option of the Agent or on the request of the Required Lenders (i) each Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance and
(ii) the obligation of the Lenders to make, or to Convert Revolving Advances into, Eurodollar Rate Advances shall be suspended. 
 SECTION 2.10. Optional Conversion of Revolving Advances. The Borrowers may on any Business Day, upon notice given to the Agent not later than 12:00 noon on the third Business Day prior to the date
of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, Convert all Revolving Advances of one Type comprising the same Borrowing into Revolving Advances of the other Type; provided, however, that any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not
less than the minimum amount specified in Section 2.02(b) and no Conversion of any Revolving Advances shall result in more separate Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion shall, within the
restrictions specified above, specify (i) the date of such Conversion, (ii) the Revolving Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the duration of the initial Interest Period for each
such Revolving Advance. Each notice of Conversion shall be irrevocable and binding on the applicable Borrower. 
 SECTION 2.11.
Optional and Mandatory Prepayments of Advances. 
 (a) Any Borrower may, without penalty or premium and upon notice given
not later than 12:00 noon on the date of such prepayment to the Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal amount of the
Advances comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (x) each partial prepayment shall
be in an aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof (or, in the case of partial prepayments of Swingline Advances, $100,000 or a whole multiple thereof) and (y) in the event of any such
prepayment of a Eurodollar Rate Advance, the applicable Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 9.04(c). 
 (b) In addition to the Borrowers’ rights under Section 2.11(a), as long as no Event of Default then exists or would arise therefrom, at any time after July 22, 2009, the Borrowers may,
without penalty or premium and without regard to the provisions of Section 2.16, prepay in whole, but not in part (a “Designated Prepayment”), the Obligations owing to any one or more Non-Extending Lender(s) who shall consent
to such prepayment (the “Designated Obligations”), subject to the following conditions: (i) each Designated Prepayment shall be upon 

  
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notice given not later than 12:00 noon on the date of such Designated Prepayment to the Agent stating the proposed date and aggregate principal amount of the Designated Prepayment; (ii) each
Designated Prepayment shall repay the entire outstanding amount of all Obligations held by the applicable Non-Extending Lender (including principal, interest, fees, expense reimbursements and other amounts due under the Loan Documents) at such
discount to par as the Borrowers and such Non-Extending Lender may agree; (iii) upon the making of any Designated Prepayment, the Commitment of the applicable Non-Extending Lender shall be terminated and the Commitment Percentages of the
remaining Lenders adjusted accordingly; provided that no such prepayment shall be permitted unless Pro Forma and Projected Capped Excess Availability is at least $500,000,000; provided further that the aggregate principal amount (at
par) of all Obligations subject to Designated Prepayments shall not exceed $500,000,000 in the aggregate. Notwithstanding anything to the contrary herein, prepayments hereunder may be made to any Non-Extending Lender and the Commitments of
Non-Extending Lenders may be terminated without a pro rata repayment to, or termination of the Commitments of, any other Lender. 
 (c) On the date of delivery of any Borrowing Base Certificate, if the Total Extensions of Credit exceed the Line Cap, the Borrowers shall prepay Advances in an amount equal to such excess, provided
that if the aggregate principal amount of Advances then outstanding is less than the amount of such excess (because L/C Obligations constitute a portion thereof), the Borrowers shall, to the extent of the balance of such excess, replace outstanding
Letters of Credit and/or deposit an amount in cash in a cash collateral account established with the Agent for the benefit of the Lenders on terms and conditions satisfactory to the Agent. Any prepayment of Loans pursuant to this
Section 2.11(c) or Section 2.11(d) shall be applied, first, to any Base Rate Advances then outstanding and the balance of such prepayment, if any, to the Eurodollar Rate Advances then outstanding. In connection with the foregoing, the
Agent may monthly (or more frequently in the Agent’s Permitted Discretion) make the necessary exchange rate calculations in accordance with Section 3.10 to determine whether any such excess described in this Section exists on such date.

 (d) Upon the occurrence and during the continuance of a Cash Dominion Event, the Borrowers shall prepay the Advances, and
upon the occurrence and during the continuance of an Event of Default, the Borrowers shall cash collateralize the L/C Obligations, in each case, in accordance with the provisions of Section 6.01(m) hereof. Prepayments made pursuant to this
Section 2.11(d) shall not reduce the Aggregate Commitments hereunder. 
 SECTION 2.12. Increased Costs. 

(a) If, due to either (i) after the date of the Existing Credit Agreement the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law) made or issued after the date of the Existing Credit
Agreement, there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Advances or issuing or participating in Letters of Credit (excluding for purposes of this Section 2.12 any
such increased costs resulting from (i) Taxes or Other Taxes (as to which Section 2.15 shall govern) and (ii) changes in the basis of taxation of overall net income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender is organized or has its Applicable Lending Office or any political subdivision thereof), then the Borrowers shall from time to time, upon demand by such Lender (with a copy of such demand to
the Agent), pay to the Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost; provided that a Lender claiming additional amounts under this Section 2.12(a) agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office and/or take other commercially reasonable action if the making of such a designation or the taking of such actions
would avoid the need for, or reduce the amount of, such increased cost that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate as to the amount of such increased
cost, submitted to the Borrowers and the Agent by such Lender, shall be entitled to a presumption of correctness. If any Borrower so notifies the Agent after any Lender notifies the Borrowers of any increased cost pursuant to the foregoing
provisions of this Section 2.12(a), such Borrower may, upon payment of such increased cost to such Lender, replace such Lender with a Person that is an Eligible Assignee in accordance with the terms of Section 9.07 (and the Lender being so
replaced shall take all action as may be necessary to assign its rights and obligations under this Agreement to such Eligible Assignee). 

  
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 (b) If any Lender
determines that compliance with any change after the date of the Existing Credit Agreement in law or regulation or any guideline or request after the date of the Existing Credit Agreement from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by such Lender or any entity controlling such Lender and that the amount of such capital is increased by or based upon the
existence of such Lender’s commitment to lend hereunder and other commitments of this type, then, upon demand by such Lender (with a copy of such demand to the Agent), the Borrowers shall pay to the Agent for the account of such Lender, from
time to time as specified by such Lender, additional amounts sufficient to compensate such Lender or such entity in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital to be allocable to the
existence of such Lender’s commitment to lend hereunder. A certificate as to such amounts submitted to the Borrowers and the Agent by such Lender shall be entitled to a presumption of correctness. 

(c) The Borrowers shall not be required to compensate a Lender pursuant to this Section for any increased costs or capital or reserve
requirement or pursuant to Section 2.15 for any taxes incurred more than six months prior to the date that such Lender notifies the Borrowers of the change or issuance giving rise to such increased costs or capital or reserve requirement or tax
and of such Lender’s intention to claim compensation therefor; provided that if the change or issuance giving rise to such increased costs or capital or reserve requirement or tax is retroactive, then the six-month period referred to
above shall be extended to include the period of retroactive effect thereof. 
 SECTION 2.13. Illegality. Notwithstanding
any other provision of this Agreement, if any Lender shall notify the Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts
that it is unlawful, for any Lender or its Eurodollar Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance will
automatically, upon such demand, Convert into a Base Rate Advance or an Advance that bears interest at the rate set forth in Sections 2.08(a)(i) and 2.08(b)(i), as the case may be, and (b) the obligation of the Lenders to make Eurodollar
Rate Advances or to Convert Advances into Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrowers and the Lenders that the circumstances causing such suspension no longer exist. 

SECTION 2.14. Payments and Computations. 
 (a) The Borrowers shall make each payment hereunder and under the other Loan Documents, without any right of counterclaim or set-off, not later than 1:00 P.M. on the day when due in U.S. dollars to the
Agent at the Agent’s Account in same day funds. The Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest or commitment fees ratably (other than amounts payable pursuant to
Section 2.12, 2.15 or 9.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained therein in the Register pursuant to Section 9.07(c), from
and after the effective date specified in such Assignment and Acceptance, the Agent shall make all payments hereunder and under the other Loan Documents in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties
to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 
 (b) Each Borrower hereby authorizes each Lender, if and to the extent payment owed by it to such Lender is not made when due hereunder or under the other Loan Documents, to charge from time to time
against any or all of such Borrower’s accounts with such Lender any amount so due, notwithstanding that an Overadvance may result thereby. Any such Lender so charging such accounts shall deliver the proceeds therefrom to the Agent for
distribution to the Credit Parties in the manner set forth herein and in the other Loan Documents. 
 (c) All computations of
interest based on the Base Rate and the Extended Term Base Rate shall be made by the Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the Eurodollar Rate or the Federal Funds Rate and of
commitment fees shall be made by the Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or commitment fees are
payable. Each determination by the Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 

  
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 (d) Whenever any
payment hereunder or under the other Loan Documents shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the
computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day. 
 (e) Unless the Agent shall have received notice from
any Borrower prior to the date on which any payment is due by it to the Lenders hereunder that such Borrower will not make such payment in full, the Agent may assume that the applicable Borrower has made such payment in full to the Agent on such
date and the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall not have so made such payment in full to
the Agent, each Lender shall repay to the Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such
amount to the Agent, at the Federal Funds Rate. 
 SECTION 2.15. Taxes. 

(a) Any and all payments by the Borrowers to or for the account of any Lender, the Agent or any Co-Collateral Agent hereunder or under the
other Loan Documents or any other documents to be delivered hereunder shall be made, in accordance with Section 2.14 or the applicable provisions of such other documents, free and clear of and without deduction for any and all present or future
withholding taxes, including levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender, the Agent and each Co-Collateral Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it in lieu of net income taxes, and branch profits taxes, by the jurisdiction under the laws of which such Lender, the Agent or any Co-Collateral Agent (as the case may be) is organized or any political subdivision thereof
and, in the case of each Lender, taxes imposed on its overall net income, and franchise taxes imposed on it in lieu of net income taxes, and branch profits taxes, by the jurisdiction of such Lender’s Applicable Lending Office or any political
subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the other Loan Documents being hereinafter referred to as “Taxes”). If
the Borrowers shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any other Loan Document or any other documents to be delivered hereunder to any Lender, the Agent or any Co-Collateral Agent,
(i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.15) such Lender, the Agent and the Co-Collateral
Agents (as the case may be) receive an amount equal to the sum each would have received had no such deductions been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable law. 
 (b) In addition, the Borrowers shall pay
any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder or under the other Loan Documents or from the execution, delivery or registration of,
performing under, or otherwise with respect to, this Agreement or the other Loan Documents or any other documents to be delivered hereunder, but excluding all other United States federal taxes other than withholding taxes (hereinafter referred to as
“Other Taxes”). 
 (c) The Borrowers shall indemnify each Lender, the Agent and each Co-Collateral Agent for
and hold it harmless against the full amount of Taxes or Other Taxes (including taxes of any kind imposed or asserted by any jurisdiction on amounts payable under this Section 2.15) imposed on or paid by such Lender, the Agent or any
Co-Collateral Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such Lender, the Agent or any
Co-Collateral Agent (as the case may be) makes written demand therefor. 

  
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 (d) Within 30 days
after the date of any payment of Taxes, the Borrowers shall furnish to the Agent, at its address referred to in Section 9.02, the original or a certified copy of a receipt evidencing such payment to the extent such a receipt is issued therefor,
or other written proof of payment thereof that is reasonably satisfactory to the Agent. In the case of any payment hereunder or under the other Loan Documents or any other documents to be delivered hereunder by or on behalf of the Borrowers through
an account or branch outside the United States or by or on behalf of the Borrowers by a payor that is not a United States person, if the Borrowers determine that no Taxes are payable in respect thereof, the Borrowers shall furnish, or shall cause
such payor to furnish, to the Agent, at such address, an opinion of counsel acceptable to the Agent stating that such payment is exempt from Taxes. For purposes of this subsection (d) and subsection (e), the terms “United
States” and “United States person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 
 (e) Each Lender organized under the laws of a jurisdiction outside the United States, and each other Lender that is not a domestic corporation within the meaning of Section 7701(a)(30) of the
Internal Revenue Code (i) represents that all payments to be made to it under this Agreement or any other Loan Document are exempt from United States withholding tax (including backup withholding tax) under an applicable statute or tax treaty
and (ii) on or prior to the date of its execution and delivery of this Agreement in the case of each Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time
to time thereafter as reasonably requested in writing by the Borrowers (but only so long as such Lender remains lawfully able to do so), shall provide each of the Agent and the Borrowers with two original Internal Revenue Service forms W-8BEN
or W-8ECI, as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or
the other Loan Documents. If the form provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a United States interest withholding tax rate in excess of zero, withholding tax at such rate shall be considered
excluded from Taxes unless and until such Lender provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such form;
provided, however, that, if at the date of the Assignment and Acceptance pursuant to which a Lender assignee becomes a party to this Agreement, the Lender assignor was entitled to payments under subsection (a) in respect of United
States withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes shall include (in addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United States
withholding tax, if any, applicable with respect to the Lender assignee on such date. If any form or document referred to in this subsection (e) requires the disclosure of information, other than information necessary to compute the tax payable
and information required on the date hereof by Internal Revenue Service form W-8BEN or W-8ECI, that the Lender reasonably considers to be confidential, the Lender shall give notice thereof to the Borrowers and shall not be obligated to include
in such form or document such confidential information. 
 (f) For any period with respect to which a Lender has failed to
provide the Borrowers with the appropriate form, certificate or other document described in Section 2.15(e) (other than if such failure is due to a change in law, or in the interpretation or application thereof, occurring
subsequent to the date on which a form, certificate or other document originally was required to be provided, or if such form, certificate or other document otherwise is not required under subsection (e) above), such Lender shall not be
entitled to indemnification under Section 2.15(a) or (c) with respect to Taxes imposed by the United States by reason of such failure; provided, however, that should a Lender become subject to Taxes because of its failure to
deliver a form, certificate or other document required hereunder, the Borrowers shall take such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes. 

(g) Any Lender claiming any additional amounts payable pursuant to this Section 2.15 agrees to use reasonable efforts (consistent
with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Eurodollar Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts that may
thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 
 (h)
If any Lender determines, in its sole discretion, that it has actually and finally realized, by reason of a refund, deduction or credit of any Taxes paid or reimbursed by the Borrowers pursuant to subsection (a) or (c) above in respect of
payments under this Agreement or the other Loan Documents, a current monetary benefit that it would otherwise not have obtained, and that would result in the total payments under this Section 2.15

  
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exceeding the amount needed to make such Lender whole, such Lender shall pay to the Borrowers, with reasonable promptness following the date on which it actually realizes such benefit, an amount
equal to the amount of such excess, net of all out-of-pocket expenses reasonably allocable in securing such refund, deduction or credit, provided that the Borrowers, upon the request of such Lender, agree to repay the amount paid over to the
Borrowers to such Lender in the event such Lender is required to repay such refund to such jurisdiction. Nothing in this subsection (h) shall be construed to require any Lender to make available to the Borrowers or any other Person its tax
returns or any confidential tax information. 
 (i) If the Agent, any Co-Collateral Agent or any Lender, as the case may be,
shall become aware that it is entitled to claim a refund from a Governmental Authority in respect of Taxes or Other Taxes paid by Borrower pursuant to this Section 2.15, including Taxes or Other Taxes as to which it has been indemnified by
Borrower, or with respect to which Borrower or a Group Member that is a signatory hereto has paid additional amounts pursuant to this Section 2.15, it shall notify Borrower of the availability of such refund claim and, if the Agent, any
Co-Collateral Agent or any Lender, as the case may be, determines in good faith that making a claim for refund will not have any adverse consequence to its taxes or business operations, shall, after receipt of a request by Borrower, make a claim to
such Governmental Authority for such refund at Borrower’s expense. 
 SECTION 2.16. Sharing of Payments, Etc. If any
Lender shall obtain any payment from any Group Member (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances or other amounts owing to it (other than pursuant to Section 2.05(b),
2.06, 2.07, 2.11(b), 2.12, 2.15, 2.18, 2.20 or 9.04(c)) in excess of its ratable share, such Lender shall forthwith purchase from the other Lenders such participations in the Advances or other amounts owing to them as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each
Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of
such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrowers agree
that any Lender so purchasing a participation from another Lender pursuant to this Section 2.16 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation
as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. 
 SECTION 2.17.
Use of Proceeds of Advances. The proceeds of the Advances shall be available (and each Borrower agrees that it shall use such proceeds) for general corporate purposes of Holdings and its Subsidiaries, including, without limitation, for
acquisitions, capital expenditures, cash dividends, payment of any of the Obligations, and stock and bond repurchases. 

SECTION 2.18. Increase in Commitments and Addition of Term Loan Tranche.  

(a) Increase on Effective Date. On the Effective Date, Extending Lenders may increase their Commitments and/or other Eligible
Assignees (reasonably acceptable to the Agent) may become Extending Lenders, provided, however, that after giving effect to such increased or new Commitments, the Aggregate Commitments shall not exceed the sum of $4,000,000,000 plus
the amount of any Commitment Increase exercised on the Effective Date pursuant to Section 2.18(b). The Agent (in consultation with the Borrowers and the Lead Arrangers) shall determine the final allocation of the Commitments amongst the Lenders
(including new Lenders). 
 (b) Request for Increase On Effective Date. On the Effective Date, upon notice to the Agent
(which shall promptly notify the Lenders and the Lead Arrangers), to the extent that the total Commitments obtained in connection with this Agreement exceed $4,000,000,000, the Borrowers may request (a “Commitment Increase Request”)
that the Aggregate Commitments be increased (each a “Commitment Increase”) by the amount of such excess; provided, however, no such Commitment Increase Request may be made without the consent of the Lead Arrangers,
whose consent shall not be unreasonably withheld, provided further that the aggregate amount of any Commitment Increase on the Effective Date pursuant to this Section 2.18(b) shall not exceed $118,620,000 and shall be allocated to
such Lenders as the Borrowers and the Co-Collateral Agents may agree. 

  
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 (c) Request for
Increase After Effective Date. After the Effective Date, provided no Default or Event of Default then exists or would arise therefrom, upon notice to the Agent (which shall promptly notify the Lenders and the Lead Arrangers), the Borrowers may
make Commitment Increase Requests from time to time (which Commitment Increase may take the form of a term loan tranche); provided, however, no such Commitment Increase Request may be made without the consent of the Lead Arrangers,
whose consent shall not be unreasonably withheld, provided further that (x)(i) the aggregate amount of all Commitment Increases pursuant to this Section 2.18(c) following the Effective Date and prior to the termination of the
Commitments of the Non-Extending Lenders and the repayment of all Obligations of the Non-Extending Lender shall not exceed $881,380,000, and (ii) the aggregate amount of all Commitment Increases pursuant to this Section 2.18(c) following
the Effective Date shall not exceed $1,000,000,000, (y) each Commitment Increase Request shall be in a minimum amount of $100,000,000, and (z) the Borrowers may request a maximum of five Commitment Increases. At the time of sending such
notice, the Borrowers (in consultation with the Agent and the Lead Arrangers) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such
notice to the Lenders). 
 (d) Lender Elections. Each Lender shall notify the Agent within the time period described in
Section 2.18(c) whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Commitment Percentage of such Commitment Increase Request. Any Lender not responding within such time
period shall be deemed to have declined to increase its Commitment. No Lender shall have any obligation to increase its Commitment. 
 (e) Notification by Agent. The Agent shall notify the Borrowers, each Lender and the Lead Arrangers, of the Lenders’ responses to each request made under Section 2.18(c). To achieve the
full amount of any Commitment Increase specified in any Commitment Increase Request, subject to the approval of the Agent (which approval shall not be unreasonably withheld), to the extent that the existing Lenders decline to increase their
Commitments, or decline to increase their Commitments in the full amount requested by the Borrowers, other consenting Eligible Assignees (each an “Additional Commitment Lender”) may become a Lender hereunder and furnish a commitment
in the amount requested by the Borrowers under Section 2.18(c) and not accepted by the existing Lenders, provided, however, that without the consent of the Agent, at no time shall the Commitment of any Additional Commitment Lender
be less than $10,000,000. At the request of the Borrowers, one or more of the Lead Arrangers, in consultation with the Borrowers, may, but shall not be required, to use their reasonable efforts to arrange for Commitments from Additional Commitment
Lenders. 
 (f) Conditions to Effectiveness of each Commitment Increase. As a condition precedent to each Commitment
Increase after the Effective Date, (i) the Borrowers shall deliver to the Agent a certificate of each Borrower dated as of the Increase Effective Date signed by an Authorized Officer of such Borrower (A) certifying and attaching the
resolutions adopted by the board of directors (or other applicable governing body) of such Borrower approving or consenting to such Commitment Increase, and (B) certifying that, before and after giving effect to such Commitment Increase, the
representations and warranties contained in Article V hereof and the other Loan Documents are true and correct in all material respects on and as of the Increase Effective Date, except to the extent (1) such representations or warranties are
qualified by a materiality standard, in which case they shall be true and correct in all respects, (2) such representations or warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date), and (3) such representations relate to Section 5.01(f), in which case the representation shall be limited to clause (c) of the definition of “Material Adverse
Effect”, (ii) the Loan Parties other than the Borrowers shall deliver an “acknowledgment and acceptance” of the Commitment Increase in form reasonably satisfactory to the Agent, (iii) if applicable, the Borrowers, the Agent,
and any Additional Commitment Lender shall have executed and delivered a joinder to the Loan Documents in such form as the Agent shall reasonably require; (iv) to the extent that the Commitment Increase shall take the form of a term loan
tranche, this Agreement shall be amended, in form and substance reasonably satisfactory to the Agent, to include such terms as are customary for a term loan commitment, including that the term loan advances shall (A) have a maturity date no
earlier than the Extended Termination Date, (B) if subject to amortization, shall have an average weighted life extending beyond the Extended Termination Date, and (C) may not be voluntarily prepaid unless contemporaneously therewith, the
other Commitments are ratably permanently reduced; (iv) the Borrowers shall have paid such fees to the applicable Lead Arrangers (to the extent that such Lead Arrangers provide assistance in arranging the Commitment Increases of Additional
Commitment Lenders), the Additional Commitment Lenders and the other Lenders who agree to increase their Commitments, as 

  
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the Borrowers and the applicable Lead Arrangers, the Additional Commitment Lenders and the other Lenders, respectively, may agree; (v) the Borrowers shall deliver to the Agent and the
Lenders an opinion or opinions, in form and substance reasonably satisfactory to the Agent, from counsel to the Borrowers reasonably satisfactory to the Agent and dated such date; and (vi) no Default or Event of Default shall exist or result
from the Commitment Increase. The Borrowers shall prepay any Advances outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 9.04(c)) and may borrow on a non-ratable basis from any Lender
or Additional Commitment Lender committed to a portion of the applicable Commitment Increase, in each case to the extent necessary to keep the outstanding Advances ratable with any revised Commitment Percentage arising from any nonratable increase
in the Commitments under this Section. 
 Each of the parties hereto hereby agrees that the Agent may take any and all further
action as may be reasonably necessary to ensure that all Advances in respect of Commitment Increases, when originally made, are included in each Borrowing of outstanding Advances on a pro rata basis. The Borrower agrees that Section 9.04(c)
shall apply to any conversion of Eurodollar Rate Advances to Base Rate Advances reasonably required by the Agent to effect the foregoing. 
 (g) Effective Date and Allocations. If the Commitments are increased after the Effective Date in accordance with this Section, the Agent (in consultation with the Borrowers and the Lead Arrangers)
shall determine the effective date (the “Increase Effective Date”) and the final allocation of the Commitment Increase, giving effect to the occurrence of the Increase Effective Date. The Agent shall promptly notify the Borrowers,
the Lenders and the Lead Arrangers of such final allocation and the Increase Effective Date, and on the Increase Effective Date (i) the Aggregate Commitments under, and for all purposes of, this Agreement shall be increased by the aggregate
amount of the Commitment Increase, and (ii) the applicable Schedule to the Agreement shall be deemed modified, without further action, to reflect the revised Commitments of the Lenders. 

(h) Other Provisions That portion of the Commitment of each Lender and Additional Commitment Lender constituting its portion of
any Commitment Increase under this Section 2.18 (i) shall bear interest and, other than in the case of a term loan, be entitled to receive letter of credit fees at the rates provided for Extending Lenders, (ii) shall, other than in
the case of a term loan, receive Commitment Fees based on the Restated Commitment Fee Grid, (iii) shall terminate on the Extended Termination Date or in the case of a term loan the Extended Termination Date or a later date, and (iv) shall
otherwise be on the same terms as set forth in, and be entitled to the benefits of, this Agreement and the other Loan Documents. 
 (i) Conflicting Provisions. This Section shall supersede any provisions in Sections 2.16 or 9.01 to the contrary. Each of the parties hereto hereby agrees that, upon any Increase Effective Date,
this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Commitment Increase, without need for further consents pursuant to Section 9.01. Any such deemed amendment may be
memorialized in writing by the Agent with the Borrower’s consent (not to be unreasonably withheld) and furnished to the other parties hereto. 
 SECTION 2.19. Permitted Overadvances. 
 The Agent may, in its discretion,
make Permitted Overadvances without the consent of the Lenders, the Swingline Lender and the Issuing Lenders, and each Lender shall be bound thereby. Any Permitted Overadvance may constitute a Swingline Advance. A Permitted Overadvance is for the
account of the Borrowers and shall constitute a Base Rate Advance and an Obligation (as defined in the Guarantee and Collateral Agreement) and shall be repaid by the Borrowers in accordance with the provisions of Section 2.11(b). The making of
any such Permitted Overadvance on any one occasion shall not obligate the Agent or any Lender to make or permit any Permitted Overadvance on any other occasion or to permit such Permitted Overadvances to remain outstanding. The making by the Agent
of a Permitted Overadvance shall not modify or abrogate any of the provisions of Article III regarding the Lenders’ obligations to purchase participations with respect to Letters of Credit or of Section 2.04 regarding the Lenders’
obligations to purchase participations with respect to Swingline Advance. The Agent shall have no liability for, and no Loan Party or Credit Party shall have the right to, or shall, bring any claim of any kind whatsoever against the Agent with
respect to “inadvertent Overadvances” (i.e. where an Overadvance results from changed circumstances beyond the control of the Agent (such as a reduction in the collateral value)) regardless of the amount of any such Overadvance(s).

  
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 SECTION 2.20.
Effective Date Adjustments. 
 (a) Revolving Advances. On the Effective Date, the Borrowers shall prepay, or shall
be deemed to prepay, any Advances outstanding immediately prior to the occurrence of the Effective Date (the “Effective Date Advances”), and pay any additional amounts required pursuant to Section 9.04(c), to all Lenders
under the Existing Credit Agreement in accordance with their “Commitment Percentages” under the Existing Credit Agreement. Simultaneously, the Borrowers may draw, or be deemed to draw, in an amount up to the principal amount of the
Effective Date Advances, upon the Commitments of all Lenders hereunder in accordance with their respective Commitment Percentages hereunder. The Agent, in consultation with the Borrowers and the Lead Arrangers, shall determine the manner in which
the foregoing shall be effected, including without limitation by non-ratable paydowns to Lenders whose Commitment Percentages decline on the Effective Date and non-ratable advances from Lenders whose Commitment Percentages rise on the Effective
Date. 
 (b) Letters of Credit. On the Effective Date, (i) each Lender hereunder irrevocably agrees to accept and
purchase and hereby accepts and purchases from the Issuing Lender and from each Lender with an interest in an Existing Letter of Credit immediately prior to the Effective Date pursuant to Section 3.04 of the Existing Credit Agreement, on the
terms and conditions set forth in Article III below, for such Lender’s own account and risk, an undivided interest equal to such Lender’s Commitment Percentage in the Issuing Lender’s obligations and rights under and in respect of
each Existing Letter of Credit and the amount of each draft paid by the Issuing Lender thereunder and (ii) the Issuing Lender and each Lender with an interest in an Existing Letter of Credit immediately prior to the Effective Date pursuant to
Section 3.04 of the Existing Credit Agreement hereby irrevocably agrees to sell and assign and hereby sells and assigns an undivided interest in the Issuing Lender’s obligations and rights under and in respect of each Existing Letter of
Credit, as necessary to achieve ratable interests in the Existing Letters of Credit for each Lender in accordance with its Commitment Percentage hereunder, giving effect to the amendment and restatement of the Existing Credit Agreement. 

ARTICLE III 

AMOUNT AND TERMS OF THE LETTERS OF CREDIT 
 SECTION 3.01. L/C Commitment. 
 (a) Subject to the terms and conditions
hereof, each Issuing Lender, in reliance on the agreements of the other Lenders set forth in Section 3.04(a), agrees to issue Letters of Credit for the account of any Borrower on any Business Day during the period from the Effective Date until
the Extended Termination Date in such form as may be approved from time to time by such Issuing Lender; provided that no Issuing Lender shall have any obligation to issue any Letter of Credit if (i) after giving effect to such issuance,
the L/C Obligations would exceed the L/C Commitment or (ii) the face amount of the requested Letter of Credit, when aggregated with all other then outstanding Extensions of Credit, shall not exceed the Line Cap at such time; provided
further that each Issuing Lender may, but shall not be required to, issue Letters of Credit such that the aggregate L/C Obligations attributable to all such outstanding Letters of Credit issued by such Issuing Lender exceed $500,000,000. Each
Letter of Credit shall (i) be denominated in Dollars or any other lawful foreign currency which is approved in writing on a case by case basis by the Issuing Lender and the Agent in their sole and absolute discretion and (ii) expire no
later than the earlier of (x) the first anniversary of its date of issuance, or (y) subject to the provisions of Section 6.01(p), the date that is five (5) Business Days prior to the Extended Termination Date, provided
that any Letter of Credit with a one-year term may provide for the renewal thereof for additional one-year periods (which, subject to the provisions of Section 6.01(p)) shall in no event extend beyond the date referred to in clause
(y) above). Each Application and each Letter of Credit shall be subject to the International Standby Practices (ISP 98) of the International Chamber of Commerce (in the case of Standby L/Cs) or the Uniform Customs and Practice for Documentary
Credits as most recently published by the International Chamber of Commerce (in the case of Commercial L/Cs) and, to the extent not inconsistent therewith, the laws of the State of New York. 

(b) The Issuing Lender shall not at any time be obligated to issue any Letter of Credit if (i) such issuance would conflict with, or
cause the Issuing Lender or any Lender to exceed any limits imposed by, any applicable Requirement of Law, (ii) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the
Issuing Lender from issuing such Letter of Credit, or any law applicable 

  
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to the Issuing Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Lender shall prohibit, or request
that the Issuing Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Lender with respect to such Letter of Credit any restriction, reserve or capital requirement
(for which the Issuing Lender is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the
Issuing Lender in good faith deems material to it; (iii) such issuance would violate one or more policies of the Issuing Lender applicable to letters of credit generally, or (iv) any Lender is at such time a Defaulting Lender or
Deteriorating Lender hereunder, unless the Issuing Lender has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the Issuing Lender’s risk with respect to such Lender. 

SECTION 3.02. Procedure for Issuance of Letter of Credit. Any Borrower may from time to time request that the Issuing Lender issue
a Commercial L/C or Standby L/C for its account by delivering to the Issuing Lender at its address for notices specified herein an Application therefor, completed to the satisfaction of the Issuing Lender, and such other certificates, documents and
other papers and information as the Issuing Lender may reasonably request. Upon receipt of any Application, the Issuing Lender will process such Application and the certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall promptly issue the Letter of Credit requested thereby (but in no event shall the Issuing Lender be required to issue any Letter of Credit earlier than three Business Days
after its receipt of the Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed to
by the Issuing Lender and the applicable Borrower. The Issuing Lender shall furnish a copy of such Letter of Credit to the applicable Borrower promptly following the issuance thereof. The Issuing Lender shall promptly notify the Agent of the
issuance, extension or amendment of Letters of Credit and any drawings or other payments under Letters of Credit. 
 SECTION
3.03. Fees and Other Charges. 
 (a) The Borrowers will pay a fee on all outstanding Letters of Credit
at a per annum rate equal to (i) in the case of each Standby L/C and Banker’s Acceptance, the Applicable Margin with respect to the aggregate Commitment Percentage of Non-Extending Lenders of the amount of such Standby L/C or Banker’s
Acceptance and the Extended Term Applicable Margin with respect to the aggregate Commitment Percentage of Extending Lenders of the amount of such Standby L/C or Banker’s Acceptance, in each case then in effect with respect to Eurodollar Rate
Advances and (ii) in the case of each Commercial L/C, 50% of the Applicable Margin with respect to the aggregate Commitment Percentage of Non-Extending Lenders of the amount of such Commercial L/C and 50% of the Extended Term Applicable Margin
with respect to the aggregate Commitment Percentage of Extending Lenders of the amount of such Commercial L/C, in each case then in effect with respect to Eurodollar Rate Advances, in each case shared ratably among the Non-Extending Lenders and
Extending Lenders, respectively, and payable quarterly in arrears the 5th day subsequent to the last day of each April, July, October and January after the issuance date. In addition, the Borrowers shall pay to the Issuing Lender for its own account a fronting fee in an amount
to be agreed upon by the applicable Issuing Lender and the Borrowers (but in no event to exceed 0.125% per annum) on the undrawn and unexpired amount of each Letter of Credit, payable quarterly in arrears on the 5th day subsequent to the last day of each April, July, October and
January after the issuance date. 
 (b) In addition to the foregoing fees, the Borrowers shall pay or reimburse the Issuing
Lender for such normal and customary costs and expenses as are incurred or charged by the Issuing Lender in issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of Credit, unless otherwise agreed. 

SECTION 3.04. Letter of Credit Participations. 
 (a) The Issuing Lender irrevocably agrees to grant and hereby grants to each Lender, and, to induce the Issuing Lender to issue Letters of Credit, each Lender irrevocably agrees to accept and purchase and
hereby accepts and purchases from the Issuing Lender, on the terms and conditions set forth below, for such Lender’s own account and risk an undivided interest equal to such Lender’s Commitment Percentage in the Issuing Lender’s
obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by 

  
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the Issuing Lender thereunder. Each Lender agrees with the Issuing Lender that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed in full by the
Borrowers in accordance with the terms of this Agreement, such Lender shall pay to the Issuing Lender upon demand at the Issuing Lender’s address for notices specified herein an amount equal to such Lender’s Commitment Percentage of the
amount of such draft, or any part thereof, that is not so reimbursed. Each Lender’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim,
recoupment, defense or other right that such Lender may have against the Issuing Lender, the Borrowers or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Article IV, (iii) any adverse change in the condition (financial or otherwise) of the Borrowers or any other Loan Party, (iv) any breach of this Agreement or any other Loan Document by the
Borrowers, any other Loan Party or any other Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing; provided that each Lender shall only be obligated to make any such payment
in Dollars (and not any foreign currency) in accordance with the provisions of Section 3.10 hereof. 
 (b) If any amount
required to be paid by any Lender to the Issuing Lender pursuant to Section 3.04(a) in respect of any unreimbursed portion of any payment made by the Issuing Lender under any Letter of Credit is paid to the Issuing Lender within three Business
Days after the date such payment is due, such Lender shall pay to the Issuing Lender on demand an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds Rate during the period from and including the date
such payment is required to the date on which such payment is immediately available to the Issuing Lender, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.
If any such amount required to be paid by any Lender pursuant to Section 3.04(a) is not made available to the Issuing Lender by such Lender within three Business Days after the date such payment is due, the Issuing Lender shall be entitled to
recover from such Lender, on demand, such amount with interest thereon calculated from such due date at the rate per annum set forth in Section 2.08(a)(i) or 2.08(b)(i), for the applicable Lenders, applicable to Base Rate Advances. A
certificate of the Issuing Lender submitted to any Lender with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error. 
 (c) Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit and has received from any Lender its pro rata share of such payment in accordance with
Section 3.04(a), the Issuing Lender receives any payment related to such Letter of Credit (whether directly from the applicable Borrower or otherwise, including proceeds of collateral applied thereto by the Issuing Lender), or any payment of
interest on account thereof, the Issuing Lender will distribute to such Lender its pro rata share thereof (appropriately adjusted to reflect whether such payment is owed to a Non-Extending Lender or an Extending Lender and whether the
corresponding interest rate owed to such Lender is calculated in accordance with Section 2.08(a) or 2.08(b)); provided, however, that in the event that any such payment received by the Issuing Lender shall be required to be
returned by the Issuing Lender, such Lender shall return to the Issuing Lender the portion thereof previously distributed by the Issuing Lender to it. 
 SECTION 3.05. Reimbursement Obligation of the Borrowers. If any draft is paid under any Letter of Credit, the applicable Borrower shall reimburse the Issuing Lender for the amount of (a) the
draft so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Lender in connection with such payment, not later than 12:00 Noon on (i) the Business Day that the applicable Borrower receives notice of
such draft, if such notice is received on such day prior to 10:00 A.M. or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the applicable Borrower receives such notice; provided, that if
the total reimbursement amount set forth in clauses (a) or (b) above is not less than $5,000,000 or $500,000, respectively, the applicable Borrower may, subject to the conditions to borrowing set forth herein, request that such
reimbursement be financed with a Base Rate Advance or Swingline Advance in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting Advance. Each such
payment shall be made to the Issuing Lender at its address for notices referred to herein in Dollars (or if the Letter of Credit is issued in a currency other than Dollars, in such currency or the Dollar equivalent thereof calculated in accordance
with the provisions of Section 3.10) and in immediately available funds. Interest shall be payable on any such amounts from the date on which the relevant draft is paid until payment in full at the rate set forth in (x) until the Business
Day next succeeding the date of the relevant notice, Section 2.08(a)(i) or Section 2.08(b)(i), as applicable, with respect to the portions of the applicable draft attributable to Non-Extending Lenders and Extending Lenders, respectively
and (y) thereafter, Section 2.08(c). 

  
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 SECTION 3.06.
Obligations Absolute. Each Borrower’s obligations under this Article III shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment that any Borrower may have
or have had against the Issuing Lender, any beneficiary of a Letter of Credit or any other Person. Each Borrower also agrees with the Issuing Lender that the Issuing Lender shall not be responsible for, and such Borrower’s Reimbursement
Obligations under Section 3.05 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any
dispute between or among such Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of such Borrower against any beneficiary of such Letter of Credit or any
such transferee. The Issuing Lender shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or
omissions found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Issuing Lender. Each Borrower agrees that any action taken or omitted by the Issuing
Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct, shall be binding on such Borrower and shall not result in any liability of the Issuing
Lender to such Borrower. 
 SECTION 3.07. Letter of Credit Payments. If any draft shall be presented for payment under
any Letter of Credit, the Issuing Lender shall promptly notify the applicable Borrower of the date and amount thereof. The responsibility of the Issuing Lender to the Borrowers in connection with any draft presented for payment under any Letter of
Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are
substantially in conformity with such Letter of Credit. 
 SECTION 3.08. Applications. To the extent that any provision
of any Application related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply. 
 SECTION 3.09. Use of Letters of Credit. The Letters of Credit shall be available (and each Borrower agrees that it shall use such Letters of Credit) for general corporate purposes of Holdings and
its Subsidiaries. 
 SECTION 3.10. Currency Equivalents Generally. 

Any amount specified in this Agreement (including pursuant to Section 3.05 above) to be in a currency other than Dollars shall also
include the equivalent of such amount in Dollars, such equivalent amount to be determined by the Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars. For purposes of this
Section 3.10, the “Spot Rate” for a currency means the rate determined by the Agent to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency
through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date of such determination; provided that the Agent may obtain such spot rate from another financial institution designated
by the Agent if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency. 
 ARTICLE IV 
 CONDITIONS TO EFFECTIVENESS 

SECTION 4.01. Conditions Precedent to Effectiveness. This Agreement shall become effective on and as of the first date on which
each of the following conditions precedent have been satisfied: 
 (a) The Agent’s receipt of the following,
each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by an Authorized Officer of the signing Loan Party, each dated the Effective Date (or, in the case of certificates of
governmental officials, a recent date before the Effective Date) and each in form and substance satisfactory to the Agent, the Co-Collateral Agents and the Required Lenders: 

(i) this Agreement duly executed by each of Holdings, the Borrowers, the Agent, the Co-Collateral Agents, and the Required
Lenders. 

  
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 (ii)
the Security Documents or amendments thereto or restatements thereof (including, without limitation, the Guarantee and Collateral Agreement), in each case to the extent reasonably requested by the Agent, each duly executed by the applicable Loan
Parties; 
 (iii) all other Loan Documents, or amendments thereto or restatements thereof to the extent
reasonably requested by the Agent, each duly executed by the applicable Loan Parties; 
 (iv) such certificates
of resolutions or other action, incumbency certificates and/or other certificates of Authorized Officers of each Loan Party as the Agent may reasonably require evidencing (A) the authority of each Loan Party to enter into this Agreement and the
other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity, authority and capacity of each Authorized Officer thereof authorized to act as an Authorized Officer in connection with this Agreement and the
other Loan Documents to which such Loan Party is a party or is to be a party; 
 (v) copies of each Loan
Party’s organization or other governing documents and such other documents and certifications as the Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in
good standing and qualified to engage in business in each jurisdiction where failure to so qualify could reasonably be expected to have a Material Adverse Effect; 

(vi) An opinion of in house counsel to Holdings and of one or more special or local counsel to Holdings, the Borrowers,
and the other Loan Parties, addressed to the Agent, the Co-Collateral Agents and each Lender as to such matters as the Agent may reasonably request; 
 (vii) a certificate signed by an Authorized Officer of Holdings and the Borrowers certifying (A) that the conditions specified in Section 4.02 have been satisfied, (B) to the Solvency of
the Loan Parties, taken as a whole, as of the Effective Date after giving effect to the transactions contemplated hereby, and (C) that the Perfection Certificate is true and correct in all material respects; 

(viii) evidence that all insurance required to be maintained pursuant to Section 6.01(c) has been obtained and is in
effect; 
 (ix) A Borrowing Base Certificate, duly completed and executed by an Authorized
Officer of Holdings, together with supporting information satisfactory to the Co-Collateral Agents in their Permitted Discretion, and dated (i) in the event the Effective Date occurs on or before the 15th of the month, as of the end of the second fiscal month immediately
preceding the month in which the Effective Date occurs or (ii) in the event the Effective Date occurs after the
15th of the month, as of the end of the fiscal month
immediately preceding the month in which the Effective Date occurs. 
 (x) An appraisal (based on net liquidation
value) by Tiger Valuation Services, LLC of all Inventory of the Borrowers, the results of which are reasonably satisfactory to the Co-Collateral Agents; 
 (xi) results of searches or other evidence reasonably satisfactory to the Co-Collateral Agents (in each case dated as of a date reasonably satisfactory to the Co-Collateral Agents) indicating the absence
of Liens on the assets of the Loan Parties, except for Liens permitted by Section 6.02(a); 

  
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 (xii)
duly executed Credit Card Notifications, Third Party Payor Notifications and Blocked Account Agreements required pursuant to Section 6.01(m); 
 (xiii) a duly executed agreement from each Subsidiary of Holdings which is not a Loan Party and which owns any real estate constituting a warehouse or DC that houses collateral or owns Related
Intellectual Property, pursuant to which each such Subsidiary grants to the Co-Collateral Agents a rent-free or royalty-free (as applicable) license to use such real estate and Related Intellectual Property in connection with the Co-Collateral
Agents’ enforcement of their remedies under the Loan Documents with respect to the Collateral, during the occurrence and continuation of an Event of Default; and 

(xiv) such other customary certificates, documents or consents as the Agent and the Co-Collateral Agents reasonably may
require. 
 (b) all actions required by law or reasonably requested by the Co-Collateral Agents to be undertaken,
and all, documents and instruments, including Uniform Commercial Code financing statements and Blocked Account Agreements, required by law or reasonably requested by the Co-Collateral Agents to be filed, registered, or recorded to create or perfect
the Liens intended to be created under the Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of the Agent 

(c) Capped Excess Availability shall be equal to or greater than $1,250,000,000. 

(d) Lenders having Commitments at least equal to $1,750,000,000 shall have become Extending Lenders. 

(e) The conditions set forth in Section 4.02 shall be satisfied. 

(f) There shall have been no event or circumstance since January 31, 2009 that has had or could reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect. 
 (g) All fees required to
be paid to the Agent, the Co-Collateral Agents or the Lead Arrangers on or before the Effective Date shall have been paid in full, and all fees required to be paid to the Lenders on or before the Effective Date shall have been paid in full.

 (h) The Borrowers shall have paid all costs and expenses of the Agent and the Co-Collateral Agents (to the
extent set forth in Section 9.04(a)) incurred in connection with or relating to this Agreement and the other Loan Documents, including reasonable fees, charges and disbursements of counsel to the Agent and the Co-Collateral Agents, to the
extent invoiced prior to or on the Effective Date, (provided that such payment shall not thereafter preclude a final settling of accounts between the Borrowers and the Agent and the Co-Collateral Agents). 

(i) The Borrowers and the Lenders shall have made such payments and other adjustments as are required under
Section 2.20 hereof to maintain each Lender’s Commitment Percentage of the outstanding Advances. 
 (j)
No material changes in governmental regulations or policies affecting any Loan Party or any Credit Party shall have occurred prior to the Effective Date. 
 SECTION 4.02. Conditions Precedent to Each Extension of Credit. The obligation of each Lender to make an Extension of Credit on any date shall be subject to the conditions precedent that the
Effective Date shall have occurred and on the date of such Extension of Credit the following statements shall be true (and each of the giving of the applicable Notice of Borrowing or Application for a Letter of Credit, as the case may be, and the
acceptance by the applicable Borrower of the proceeds of such Borrowing or the issuance of such Letter of Credit, as applicable, shall constitute a representation and warranty by the applicable Borrower that on the date of such Borrowing or Letter
of Credit issuance such statements are true): 
 (i) the representations and warranties made by each Loan Party
in or pursuant to the Loan Documents are true and correct on and as of such date in all material respects, before and after giving effect to such Extension of Credit and to the application of the proceeds therefrom, as though made on and as of such
date, except to the extent that (A) such representations or warranties are qualified by a materiality standard, in which case they shall be true and correct in all respects, (B) such representations or warranties expressly relate to an
earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and (C) such representations relate to Section 5.01(f), in which case the representation shall be
limited to clause (c) of the definition of “Material Adverse Effect”; 

  
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 (ii) no
event has occurred and is continuing, or would result from such Extension of Credit or from the application of the proceeds therefrom, that constitutes a Default or an Event of Default; 

(iii) after giving effect to such Extension of Credit, the Total Extensions of Credit will not exceed the Line Cap;

 (iv) after giving effect to such Extension of Credit, Uncapped Excess Availability shall exceed the lesser of
(A) 10% of the Borrowing Base (without giving effect to clause (d) thereof) and (B) $500,000,000; and 
 (v) at any time that any Debt described in Section 6.02(a)(vi) is outstanding, Pro Forma Uncapped Excess Availability shall be no less than 25% of the Borrowing Base. 

SECTION 4.03. Effective Date. The Agent shall promptly notify the Lenders, the Borrowers and the Co-Collateral Agents of the
occurrence of the Effective Date. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 5.01. Representations and Warranties
of the Borrowers. Holdings and the Borrowers hereby jointly and severally represent and warrant as follows: 

(a) Each Loan Party (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization and (ii) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 

(b) The execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party, and the
consummation of the transactions contemplated hereby or thereby, are within such Loan Party’s powers, have been duly authorized by all necessary organizational action, and do not contravene (i) the charter or by-laws or other
organizational or governing documents of such Loan Party or (ii) law or any contractual restriction binding on or affecting any Loan Party, except, for purposes of this clause (ii), to the extent such contravention would not reasonably be
expected to have a Material Adverse Effect. 
 (c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by any Loan Party of any Loan Document to which it is a party that has not already been obtained if
the failure to obtain such authorization, approval or other action could reasonably be expected to result in a Material Adverse Effect. 

  
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 (d)
Each Loan Document has been duly executed and delivered by each Loan Party party thereto. This Agreement constitutes, and each other Loan Document will constitute upon execution, the legal, valid and binding obligation of each Loan Party party
thereto enforceable against such Loan Party in accordance with its respective terms subject to the effect of any applicable bankruptcy, insolvency, reorganization or moratorium or similar laws affecting the rights of creditors generally and subject
to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 
 (e) The consolidated balance sheet of Holdings and its Subsidiaries as at January 31, 2009, and the related consolidated statements of income and cash flows of Holdings and its Subsidiaries for the
fiscal year then ended, accompanied by an opinion of Deloitte & Touche LLP, independent public accountants, copies of which have been furnished to the Agent, fairly present the consolidated financial condition of Holdings and its
Subsidiaries as at such date and the consolidated results of the operations of Holdings and its Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied. 

(f) Since January 31, 2009, there has been no event or circumstance, either individually or in the aggregate, that
has had or would reasonably be expected to have a Material Adverse Effect. 
 (g) There is no action, suit,
investigation, litigation or proceeding, including any Environmental Action, which is pending or, to Holdings or any Borrower’s knowledge, threatened affecting Holdings, the Borrowers or any of their respective Subsidiaries before any court,
Governmental Authority or arbitrator that would, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect other than as reported in filings with the SEC made prior to the date hereof. 

(h) Following application of the proceeds of each Advance and the issuance of each Letter of Credit, not more than 25
percent of the value of the assets of the Borrowers and their respective Subsidiaries on a consolidated basis will be margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System). 

(i) No Loan Party is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended. 
 (j) All United States
Federal income tax returns and all other material tax returns which are required to be filed have been filed by or on behalf of Holdings, the Borrowers and their respective Subsidiaries, and all taxes due with respect to Holdings, the Borrowers and
their respective Subsidiaries pursuant to such returns or pursuant to any assessment received by Holdings, the Borrowers or any Subsidiary have been paid except to the extent permitted in Section 6.01(b). The charges, accruals and reserves on
the books of Holdings, the Borrowers and their Subsidiaries in respect of taxes or other governmental charges have been made in accordance with, and to the extent required by, GAAP. 

(k) All written factual information heretofore furnished by Holdings, the Borrowers or their Subsidiaries to the Agent,
any Co-Collateral Agent or any Lender (including the Perfection Certificate) for purposes of or in connection with this Agreement or any other Loan Document, taken as a whole, was true and correct in all material respects on the date as of which
such information was stated or certified, provided that Holdings and the Borrowers make no representations or warranties with respect to any projections or other nonfactual information contained in such information. 

(l) (i) Each Loan Party has title in fee simple to, or a valid leasehold interest in, all its real property, and good
title to, or a valid leasehold interest in, all its other property necessary for the conduct of its business and except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect, (ii) the Loan Parties have filed
appropriate UCC financing statements against the Persons operating the Dealer Stores covering the Inventory of the Loan Parties located at such Dealer Stores and the Loan Parties have a first priority perfected security interest in all such
Inventory and the proceeds thereof, and (iii) no Inventory, Credit Card Account Receivable, DC or Related Intellectual Property is subject to any Lien except as permitted by Section 6.02(a). 

  
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 (m)
Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect: (i) each Loan Party owns, or is licensed to use, all Intellectual Property necessary for the conduct of its business as currently conducted;
(ii) no material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor do Holdings or the Borrowers know of any
valid basis for any such claim; and (iii) the use of Intellectual Property by each Group Member does not infringe on the rights of any Person in any material respect. 

(n) Except as set forth on Schedule 5.01(n) or as would not reasonably be expected to result in a Material Adverse
Effect, (i) neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning of Section 412 of the Internal Revenue Code or Section 302 of ERISA) has occurred during the five year period prior to the
date on which this representation is made or deemed made with respect to any Plan, (ii) each Plan is in compliance with the applicable provisions of ERISA, the Internal Revenue Code and other federal or state laws, and (iii) no termination
of a Single Employer Plan has occurred. No Lien imposed under the Internal Revenue Code or ERISA exists on account of any Plan, and no Lien in favor of the PBGC or a Plan has arisen, during such five-year period. Each Plan that is intended to
qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter from the United States Internal Revenue Service (the “IRS”) or an application for such a letter is currently being
processed by the IRS with respect thereto and, to the best knowledge of Holdings and the Borrowers, nothing has occurred which would prevent, or cause the loss of, such qualification. Except as would not reasonably be expected to result in a
Material Adverse Effect, the Loan Parties and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Internal Revenue Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. There are no pending or, to the best knowledge of Holdings and the Borrowers, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that would reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary duty rules with respect to any Plan that has resulted or could reasonably
be expected to result in a Material Adverse Effect. No ERISA Event has occurred or is reasonably expected to occur, in each case that would reasonably be expected to result in a Material Adverse Effect. Neither any Loan Party nor any ERISA Affiliate
has incurred, or would reasonably be expected to incur, any liability under Title IV of ERISA with respect to any Pension Plan, other than premiums due and not delinquent under Section 4007 of ERISA or as would not reasonably be expected to
have a Material Adverse Effect; neither any Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and, to the knowledge of the Borrowers, no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that would reasonably be expected
to be subject to Sections 4069 or 4212(c) of ERISA. Except as would not reasonably be expected to have a Material Adverse Effect, neither Holdings, the Borrowers nor any Commonly Controlled Entity has had a complete or partial withdrawal (as such
terms are defined in Sections 4203 and 4205 of ERISA, respectively) from any Multiemployer Plan that has resulted or would reasonably be expected to result in a liability under ERISA. No such Multiemployer Plan is in Reorganization or Insolvent
except as would not reasonably be expected to result in aggregate liability to Holdings and its Subsidiaries of $100,000,000 or more. 
 (o) Except as, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, no Group Member (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability. 
 (p) The Guarantee and Collateral
Agreement is effective to create in favor of the Co-Collateral Agents, for the benefit of the Credit Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. When financing statements and
other filings specified on Schedule 5.01(p) in appropriate form are filed in the offices specified on Schedule 5.01(p), the Guarantee and Collateral Agreement shall, to the extent a security interest therein can be perfected by filing
a UCC financing statement, constitute a fully perfected Lien on, and security interest in, all right, title and interest 

  
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of the Loan Parties in such Collateral and the proceeds thereof, as security for the Obligations, in each case prior and superior in right to the Lien or claim of any other Person (except Liens
permitted by Section 6.02(a) which by operation of law would have priority over the Liens securing the Obligations). 
 (q) The Loan Parties, taken as a whole, are, and after giving effect to the incurrence of all indebtedness and obligations incurred in connection herewith will be, Solvent. 

(r) The properties of the Loan Parties are insured as required pursuant to Section 6.01(c) hereof. Each insurance
policy required to be maintained by the Loan Parties pursuant to Section 6.01(c) is in full force and effect and all premiums in respect thereof that are due and payable have been paid. 

(s) As of the Effective Date: (1) except as set forth in the Perfection Certificate, there are no outstanding rights
to purchase any equity interests in any Subsidiary of a Loan Party other than Sears Canada and its Subsidiaries, and (2) the copies of the organization and governing documents of each Loan Party and each amendment hereto provided pursuant to
Section 4.01are true and correct copies of each such document, each of which is valid and in full force and effect. 
 (t) As of the Effective Date, except as would not reasonably be expected to have individually or in the aggregate, a Material Adverse Effect, (a) there are no strikes, lockouts, slowdowns or other
material labor disputes against any Loan Party or any Subsidiary thereof pending or, to the knowledge of Holdings or any Borrower, threatened, (b) the hours worked by and payments made to employees of the Loan Parties comply with the Fair Labor
Standards Act and any other applicable federal, state, local or foreign law dealing with such matters, (c) all payments due from any Loan Party and its Subsidiaries, or for which any claim may be made against any Loan Party, on account of wages
and employee health and welfare insurance and other benefits, have been paid or properly accrued in accordance with GAAP as a liability on the books of such Loan Party. Except as set forth on Schedule 5.01(t) (as updated by the Borrowers from
time to time) (i) no Loan Party or any Subsidiary is a party to or bound by any collective bargaining agreement, management agreement or any material bonus, restricted stock, stock option, or stock appreciation plan or agreement or any similar
plan, agreement or arrangement (excluding in each case individual employment agreements) and (ii) no employee of a Loan Party is also an employee of the Permitted Holder. There are no representation proceedings pending or, to the knowledge of
Holdings or any Borrower, threatened to be filed with the National Labor Relations Board, and no labor organization or group of employees of any Loan Party or any Subsidiary has made a pending demand for recognition, in each case which would
individually or in the aggregate reasonably be expected to result in a Material Adverse Effect. There are no complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges or any other claims or complaints
against any Loan Party or any Subsidiary pending or, to the knowledge of Holdings or any Borrower, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the
employment or termination of employment of any employee of any Loan Party or any of its Subsidiaries which would, individually or in the aggregate, be reasonably expected to result in a Material Adverse Effect. The consummation of the transactions
contemplated by the Loan Documents will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which any Loan Party or any of its Subsidiaries is bound, except as
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 (u) No
broker or finder brought about the obtaining, making or closing of the Advances or transactions contemplated by the Loan Documents, and, other than amounts payable pursuant to the Fee Letters, no Loan Party or Affiliate thereof has any obligation to
any Person in respect of any finder’s or brokerage fees in connection therewith. 
 (v) No Loan Party has
any obligation to any Permitted Holder with respect to any consulting, management or similar fee; provided, that, for the avoidance of doubt, the foregoing shall not apply to (i) any arrangement disclosed in Holdings’ annual report on form
10-K for the fiscal year ended January 31, 2009; (ii) any employment arrangement between any Loan Party and an individual Person who is also an employee of a Permitted Holder, so long as such employment arrangements are (x) on terms
that are fair and reasonable and comparable to terms provided to employees in comparable positions for companies of a 

  
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comparable size and no less favorable to such Loan Party than it would obtain in a comparable arm’s length transaction with a Person that is not an employee of a Permitted Holder and
(y) in the case of any officer (as defined in Rule 16a-1 under the Securities Exchange Act of 1934) or director of Holdings, any beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of more than 10.0% of
Holdings’ equity interests or any Person that ranks in the top five in compensation among all employees of the Loan Parties, approved by a majority of disinterested members of the board of directors of Holdings in good faith; or (iii) any
obligation arising from any financial advisory, financing or underwriting services or other investment banking activities provided by a Permitted Holder so long as (x) such services directly relate to and are provided in conjunction with an
acquisition or divestiture or other specific transaction conducted outside the ordinary course of business, (y) such services are on terms that are fair and reasonable and comparable to terms provided by independent financial advisory,
financing or underwriting service provider or other investment banking service providers and (z) compensation for such services are approved by a majority of disinterested members of the board of directors of Holdings in good faith. 

ARTICLE VI 

COVENANTS 

SECTION 6.01. Affirmative Covenants. So long as any Advance or other Obligation (other than contingent indemnification obligations
for which no claim shall have then been asserted) shall remain unpaid, any Letter of Credit shall remain outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such
Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) or any Lender shall have any Commitment
hereunder, each of Holdings and the Borrowers will, and will cause each of their Subsidiaries (which for all purposes of this Section 6.01 (other than Section 6.01(j)(i) and (ii)) shall be deemed to exclude Sears Canada) to: 

(a) Compliance with Laws, Etc. Comply in all respects with all applicable Requirements of Law, such compliance to
include compliance with ERISA and Environmental Laws, except for such noncompliance as would not reasonably be expected to have a Material Adverse Effect. 
 (b) Payment of Taxes, Etc. Pay and discharge before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property
(ii) all payments required to be made to any Pension Plan, and (iii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided that neither Holdings, the Borrowers nor any of their Subsidiaries shall
be required to pay or discharge any such tax, assessment, charge or claim (x) that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and until any Lien resulting
therefrom attaches to its property and becomes enforceable against its other creditors or (y) if such non-payments, either individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect. 

(c) Maintenance of Insurance. Maintain insurance with responsible and reputable insurance companies or associations
in such amounts and covering such risks as is consistent with prudent business practice; provided that Holdings, the Borrowers and their Subsidiaries may self insure to the extent consistent with prudent business practice; provided
further that policies maintained with respect to any Collateral located at a warehouse or DC shall provide coverage for Inventory at (x) the retail selling price of such Inventory less any permanent markdowns, consistent with the Loan
Parties’ past practices, or (y) another selling price permitted by the Co-Collateral Agents in their Permitted Discretion. None of the Credit Parties shall be a co-insurer with any Loan Party or any other Person with respect to any fire
and extended coverage policies maintained with respect to any Collateral without the prior written consent of the Co-Collateral Agents. Fire and extended coverage policies maintained with respect to any Collateral shall be endorsed or otherwise
amended to include a non-contributing lenders’ loss payable clause, in form and substance reasonably satisfactory to the Co-Collateral Agents, which endorsements or amendments shall provide that during a Cash Dominion Event, the insurer shall
pay all proceeds otherwise payable to the Loan Parties under the policies directly to the Co-Collateral Agents, as their interests may appear, in accordance with Section 6.01(m). Within thirty (30) days following delivery of written notice
from the 

  
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Agent to Holdings, Holdings shall notify the insurers and use commercially reasonable efforts to have such policies amended to include such other provisions as the Co-Collateral Agents may
reasonably require from time to time to protect the interests of the Credit Parties. Commercial general liability policies shall be endorsed to name the Co-Collateral Agents as additional insureds, as their interests may appear. Each certificate
delivered by the Loan Parties’ insurance broker with respect to each property insurance policy referred to in this Section 6.01(c) shall also provide that such policy shall not be canceled, modified or not renewed other than upon not less
than ten (10) days’ prior written notice thereof by the insurance broker to the Co-Collateral Agents. The Borrowers shall deliver to the Co-Collateral Agents, prior to the cancellation, modification or non-renewal of any such policy of
insurance, evidence of renewal or replacement of a policy previously delivered to the Co-Collateral Agents, including an insurance binder therefor, together with evidence satisfactory to the Co-Collateral Agents of payment of the premium therefor
and, upon request of the Agent, a copy of such renewal or replacement policy. In the event that the Borrowers fail to maintain any such insurance as required pursuant to this Section 6.01(c), the Agent may obtain such insurance on behalf of the
Borrowers and the Loan Parties shall reimburse the Agent as provided herein for all costs and expenses in connection therewith; the Agent’s obtaining of such insurance shall not be deemed a cure or waiver of any Default or Event of Default
arising from the Loan Parties’ failure to comply with the provisions of this Section 6.01(c). 
 (d)
Preservation of Corporate Existence, Etc. Preserve and maintain its corporate existence, material rights (charter and statutory) and franchises; provided that (i) Holdings, the Borrowers and their Subsidiaries may consummate any
merger or consolidation permitted under Section 6.02(b); (ii) neither Holdings nor the Borrowers nor any of their Subsidiaries shall be required to preserve or maintain the corporate existence of any Subsidiary (other than SRAC and Kmart
Corp.) if the Board of Directors of the parent of such Subsidiary, or an executive officer of such parent to whom such Board of Directors has delegated the requisite authority, shall determine that the preservation and maintenance thereof is no
longer desirable in the conduct of the business of such parent and that the loss thereof is not disadvantageous in any material respect to the Borrowers, such parent or the Lenders; (iii) Sears shall not be required to preserve or maintain the
corporate existence of SRAC, provided that in the event SRAC is dissolved, merged with or into Holdings or any Subsidiary of Holdings or otherwise ceases to exist, then Sears shall or shall cause a direct wholly owned Domestic Subsidiary of Sears
to, execute and deliver to the Agent an assumption agreement with respect to SRAC’s obligations under the Loan Documents in form and substance reasonably satisfactory to the Agent and such other officer certificates, legal opinions, financing
statements (if applicable) and documentation as the Agent reasonably requests; and (iv) neither Holdings, the Borrowers nor any of their Subsidiaries shall be required to preserve any right or franchise if the Board of Directors of Holdings,
such Borrower or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of its business and that the loss thereof is not disadvantageous in any material respect to Holdings, the Borrowers, such Subsidiary
or the Lenders. 
 (e) Inspection Rights. In addition to the Agent’s and the Co-Collateral
Agents’ rights under Section 6.01(k) hereof, subject to reasonable confidentiality limitations and requirements imposed by Holdings or the Borrowers due to competitive concerns or otherwise, at any reasonable time and from time to time
(but no more than twice a year unless a Default or an Event of Default has occurred and is continuing), permit the Agent, the Co-Collateral Agents or any of the Lenders or any agents or representatives thereof, at the Lenders’ expense, to
examine and make copies of and abstracts from the records and books of account of, and visit the properties of, Holdings, the Borrowers and any of their Subsidiaries, and to discuss the affairs, finances and accounts of Holdings, the Borrowers and
any of their Subsidiaries, as the case may be, with any of their officers or directors and with their independent certified public accountants. 
 (f) Keeping of Books. Keep proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of Holdings, the Borrowers
and each such Subsidiary in accordance with GAAP in effect from time to time. 
 (g) Maintenance of
Properties, Etc. Except as otherwise permitted pursuant to Section 6.02(b), or where the failure to do so, either individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect, maintain and preserve
all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 

  
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 (h)
Transactions with Affiliates. Conduct all transactions otherwise permitted under this Agreement with any of their Affiliates on terms that are fair and reasonable and no less favorable to Holdings, the applicable Borrower or their respective
Subsidiaries than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate other than (i) as required by any applicable Requirement of Law, (ii) so long as no Default or Event of Default has occurred and
is continuing, transactions between or among the Loan Parties and any of their Subsidiaries, to the extent not prohibited hereunder, or (iii) if a Default or Event of Default has occurred and is continuing, transactions in the ordinary course
of business between or among the Loan Parties and any of their Subsidiaries and transactions between or among Loan Parties, to the extent not prohibited hereunder; provided, that the foregoing shall not prohibit any Loan Party or any
Subsidiary thereof from entering into employment arrangements with its officers and retention and other agreements with officers and directors pursuant to the reasonable requirements of its business. 

(i) Further Assurances. 
 (i) With respect to any (i) Inventory, Credit Card Accounts Receivable, Pharmacy Receivables and other Collateral (as defined in the Guarantee and Collateral Agreement as in effect on the Effective
Date) acquired after the Effective Date by any Group Member that is or is required to become a Loan Party hereunder and (ii) any property required to become subject to a perfected Lien in favor of the Co-Collateral Agents pursuant to
Section 6.02(a)(vi) hereunder, promptly (i) execute and deliver to the Co-Collateral Agents such amendments to the Guarantee and Collateral Agreement or such other documents as the Co-Collateral Agents, may reasonably request in order to
grant to the Co-Collateral Agents, for the benefit of the Credit Parties, a security interest in such property and (ii) take all actions as the Co-Collateral Agents, may reasonably request to grant to the Co-Collateral Agents, for the benefit
of the Credit Parties, a perfected security interest in such property with the priority required herein, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by law or as may be requested by the Co-Collateral Agents and the delivery of Blocked Account and other control agreements as may be reasonably requested by the Co-Collateral Agents. 

(ii) With respect to any new Domestic Subsidiary which is created or acquired after the Effective Date by any Group Member
and which owns any Inventory, Credit Card Accounts Receivable, Pharmacy Receivables and other Collateral (as defined in the Guarantee and Collateral Agreement as in effect on the Effective Date) related to such receivables and Inventory, promptly
cause such new Domestic Subsidiary to (i) become a party to the Guarantee and Collateral Agreement, (ii) take such actions as the Co-Collateral Agents, may reasonably request to grant to the Co-Collateral Agents for the benefit of the
Credit Parties a security interest, with the priority and perfection required herein, in the Collateral described in the Guarantee and Collateral Agreement held by such new Domestic Subsidiary, including, to the extent applicable, the filing of
Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be reasonably requested by the Co-Collateral Agents and the delivery of Blocked Account and other
control agreements, (iii) if requested by the Co-Collateral Agents, deliver to the Co-Collateral Agents an officer certificate with respect to such Domestic Subsidiary in form and substance reasonably satisfactory to the Co-Collateral Agents,
and (iv) if requested by Co-Collateral Agents, deliver to the Co-Collateral Agents legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Co-Collateral Agents. 
 (iii) With respect to any Dealer Stores, upon the request of the Co-Collateral Agents
(which request may be made only during the continuance of an Event of Default), assign of record any UCC financing statements which have been filed in favor of the Loan Parties. 

  
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 (iv) In
the event the Borrowers or the other Loan Parties open a new deposit account in which funds of any of the Loan Parties are concentrated, or commence concentrating funds in an existing deposit account that is not subject to a Blocked Account
Agreement, at the request of the Co-Collateral Agents, the Borrowers shall deliver or cause to be delivered a Blocked Account Agreement reasonably satisfactory in form and substance to the Co-Collateral Agents with respect to such account.

 (v) In the event that the Collateral owned by Private Brands, Ltd. at any time exceeds $50,000,000, if
requested by Co-Collateral Agents, deliver to the Co-Collateral Agents legal opinions with respect to perfection of the Co-Collateral Agents’ Liens and such other matters as the Co-Collateral Agents may reasonably request, which opinions shall
be in form and substance, and from counsel, reasonably satisfactory to the Co-Collateral Agents. 
 (j)
Reporting Requirements. Furnish to the Agent: 
 (i) as soon as available and in any event within 50 days
after the end of each of the first three fiscal quarters of each fiscal year of Holdings, (a) the consolidated balance sheet of Holdings and its Subsidiaries and the consolidated balance sheet of Holdings and its domestic Subsidiaries (other
than OSH) as of the end of such quarter and consolidated statements of income and cash flows of Holdings and its Subsidiaries and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries (other than OSH) for the
period commencing at the end of the previous fiscal year and ending with the end of such quarter, duly certified (subject to year-end audit adjustments) by an Authorized Officer of Holdings as having been prepared in accordance with GAAP and
(b) a certificate of an Authorized Officer of Holdings as to compliance with the terms of this Agreement and the other Loan Documents in the form of Exhibit J, including in reasonable detail the calculations necessary to determine the Fixed
Charge Ratio (whether or not compliance therewith is then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial statements, subject to Section 1.03, the Borrowers
shall also provide, if necessary for the calculation of the Fixed Charge Ratio, a statement of reconciliation conforming such financial statements to GAAP (the Borrowers being permitted to satisfy the requirements of clause (i)(a) by delivery, in
the manner provided in Section 9.02(b), of its quarterly report on form 10-Q (or any successor form), as filed with the SEC); 
 (ii) as soon as available and in any event within 95 days after the end of each fiscal year of Holdings, (a) a copy of the annual audit report for such year for Holdings and its Subsidiaries,
containing the consolidated balance sheet of Holdings and its Subsidiaries as of the end of such fiscal year and consolidated statements of income and cash flows of Holdings and its Subsidiaries for such fiscal year, in each case reported on without
a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by its Board-appointed auditor of national standing (b) a consolidated balance sheet of Holdings and its domestic
Subsidiaries (other than OSH) as of the end of such fiscal year and consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries (other than OSH) for such fiscal year duly certified by an Authorized Officer of Holdings
as having been prepared in accordance with GAAP, and (c) a certificate of an Authorized Officer of Holdings as to compliance with the terms of this Agreement and the other Loan Documents in the form of Exhibit J, including in reasonable detail
the calculations necessary to determine the Fixed Charge Ratio (whether or not compliance therewith is then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial
statements, the Borrowers shall also provide, if necessary for the calculation of the Fixed Charge Ratio, a statement of reconciliation conforming such financial statements to GAAP (the Borrowers being permitted to satisfy the requirements of clause
(ii)(a) by delivery, in the manner provided in Section 9.02(b), of its annual report on form 10-K (or any successor form), as filed with the SEC); 
 (iii) as soon as available and in any event within 10 Business Days of the end of each fiscal month, a Borrowing Base Certificate as of the end of the preceding fiscal month and

  
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supporting information satisfactory to the Agent in its Permitted Discretion with respect to the determination of the Borrowing Base; provided, that upon the occurrence and during
the continuance of an Accelerated Borrowing Base Delivery Event, such Borrowing Base Certificate and supporting information shall be delivered on Friday of each week (or, if Friday is not a Business Day, on the next succeeding Business Day), as of
the close of business on the immediately preceding Saturday (it being understood that any weekly Borrowing Base Certificate shall constitute the Loan Parties’ best estimates of Net Eligible Inventory and other items, as applicable); 

(iv) promptly and in any event within five days after any Authorized Officer of Holdings or any Borrower has knowledge of
the occurrence and continuance of a Default or Event of Default, a statement of an Authorized Officer of Holdings or such Borrower setting forth details of such Default or Event of Default and the action that Holdings or such Borrower has taken and
proposes to take with respect thereto; 
 (v) promptly after the sending or filing thereof, copies of all
quarterly and annual reports and proxy solicitations that Holdings sends to its public security holders generally, and copies of all reports on form 8-K (or its equivalent) and registration statements for the public offering (other than pursuant to
employee Plans) of securities that Holdings or any of its Subsidiaries files with the SEC or any national securities exchange; 
 (vi) promptly after the commencement thereof, notice of all actions and proceedings before any court, governmental agency or arbitrator affecting Holdings, the Borrowers or any of their Subsidiaries of
the type described in Section 5.01(g); 
 (vii) as soon as available, but in any event no later than 60 days
after the end of each fiscal year of Holdings, forecasts prepared by management of Holdings for Holdings and its domestic Subsidiaries (other than OSH) in form satisfactory to the Agent and containing information reasonably required by the Agent;

 (viii) (A) contemporaneously with the delivery of the reports required pursuant to clauses (i) and
(ii) above, a report (which may take the form of a footnote to Holdings’ quarterly and annual reports filed with the SEC and delivered to the Agent) setting forth the estimated Unfunded Pension Liability of Holdings and its Subsidiaries,
and (B) promptly after receipt thereof by the Loan Parties, a copy of the funded status report received from the Loan Parties’ actuaries with respect to amounts to be funded under the Loan Parties’ Pension Plan; 

(ix) promptly, notice of any event that the Loan Parties reasonably believes has resulted in a Material Adverse Effect;

 (x) the financial and collateral reports described on Schedule 6.01(j), at the times set forth in such
Schedule; and 
 (xi) such other information respecting Holdings, the Borrowers or any of their Subsidiaries, or
the Borrowing Base as the Agent or any Lender through the Agent may from time to time reasonably request. 

Reports and financial statements required to be delivered by the Borrowers pursuant to clauses (i)(a), (ii)(a) and
(v) of this subsection (j) shall be deemed to have been delivered on the date on which Holdings causes such reports, or reports containing such financial statements, to be posted on the Internet at www.sec.gov or at such other website
identified by the Borrowers in a notice to the Agent and the Lenders and that is accessible by the Lenders without charge. 
 (k) Collateral Monitoring and Review. Upon the request of the Agent, any Co-Collateral Agent, or the Required Lenders, after reasonable notice and during normal business hours, permit the Agent,
the 

  
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Co-Collateral Agents or professionals (including, consultants, accountants, and/or appraisers) retained by the Co-Collateral Agents to conduct appraisals, commercial finance examinations and
other evaluations, including, without limitation, of (i) the Loan Parties’ practices in the computation of the Borrowing Base and (ii) the assets included in the Borrowing Base and financial information such as, but not limited to,
sales, gross margins, payables, accruals and reserves, related to the calculation of the Borrowing Base. The Borrowers shall pay the reasonable out-of-pocket fees and expenses of the Agent and the Co-Collateral Agents (including, without limitation,
the reasonable charges of professionals) in connection with one inventory appraisal and one commercial finance examination each fiscal year (which the Agent and Co-Collateral Agents shall be obligated to undertake for the benefit of the Credit
Parties), provided, however, notwithstanding the foregoing, (x) if Capped Excess Availability is at any time less than 40% of the Line Cap, the Agent and the Co-Collateral Agents may, in their discretion, undertake a second
inventory appraisal and second commercial finance examination in a given fiscal year at such time at the Borrowers’ expense, and (y) if Uncapped Excess Availability is less than 25% of the Borrowing Base, or a Default or an Event of
Default has occurred and is continuing, the Agent and the Co-Collateral Agents may in their discretion, undertake up to three inventory appraisals and three commercial finance examinations each fiscal year at the Borrowers’ expense.
Notwithstanding the foregoing, the Agent and the Co-Collateral Agents may cause (i) additional appraisals and commercial finance examinations to be undertaken (A) as each in its Permitted Discretion deems necessary or appropriate, at its
own expense or, (B) if required by applicable law, at the expense of the Borrowers. In connection with any inventory appraisal and commercial finance examination relating to the computation of the Borrowing Base, Holdings shall make such
adjustments to the calculation of the Borrowing Base as the Agent shall, after the expiration of the Reserve Notice Period, reasonably require in its Permitted Discretion based upon the terms of this Agreement and the results of such inventory
appraisal and commercial finance examination. Any inventory appraisal or commercial finance examination requested by the Agent or any Co-Collateral Agent shall be scheduled at such time as the Co-Collateral Agents, in consultation with the
Borrowers, may agree in order to minimize any disruption to the conduct of the Borrowers’ business. 
 (l)
Landlord Waivers, Access Agreements and Customs Broker Agreements. (i) Use commercially reasonable efforts to obtain from each unaffiliated lessor leasing a DC at which Collateral is located to a Loan Party, consents, approvals, Lien
waivers and rights to access and occupy each such DC (including, without limitation, to take possession and dispose of any Collateral from each such DC upon the occurrence and during the continuance of an Event of Default) reasonably satisfactory to
the Co-Collateral Agents; (ii) obtain from each Subsidiary of Holdings owning a DC at which Collateral is located, consents, approvals, Lien waivers and rights to access and occupy each such DC (including, without limitation, to take possession
and dispose of the Collateral from each such DC upon the occurrence and during the continuance of an Event of Default) reasonably satisfactory to the Co-Collateral Agents; (iii) use commercially reasonable efforts to cause each Loan
Party’s customs brokers to deliver an agreement (including, without limitation, a Customs Broker Agreement) to the Co-Collateral Agents covering such matters and in such form as the Co-Collateral Agents may reasonably require; and
(iv) with respect to any property or assets not constituting Collateral and subject to the Lien of a third party, if requested by the Agent, use commercially reasonable efforts to cause (but shall not be required to cause as a condition of the
granting of such Lien) the holder of such Lien to enter into an agreement reasonably satisfactory to the Agent, permitting the Co-Collateral Agents to use such property and assets, at no cost or expense to the Co-Collateral Agents, in connection
with the disposition of any of the Collateral by the Co-Collateral Agents during the continuance of an Event of Default. 
 (m) Cash Management. 
 (i) On or prior to the Effective Date
or such later date as the Co-Collateral Agents may agree: 
 (A) deliver to the Agent copies of notifications
(each, a “Credit Card Notification”) substantially in the form attached hereto as Exhibit E which have been executed on behalf of such Loan Party and addressed to such Loan Party’s credit card clearinghouses and
processors listed in the Perfection Certificate (collectively, the “Credit Card Processors”); and 

  
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 (B)
enter into a Blocked Account Agreement reasonably satisfactory in form and substance to the Co-Collateral Agents with each Blocked Account Bank covering the deposit accounts set forth on Schedule 6.01(m)(i)(B) (collectively, the “Blocked
Accounts”); and 
 (C) deliver to the Agent copies of notifications (each, a “Third Party Payor
Notification”) substantially in the form attached hereto as Exhibit I which have been executed on behalf of such Loan Party and addressed to such of each Loan Party’s Third Party Payors relating to Eligible Pharmacy Receivables
listed in the Perfection Certificate as any Co-Collateral Agent shall reasonably request. 
 (ii) The Loan
Parties shall ACH or wire transfer daily (or with respect to DDAs that have historically not been swept daily (and other DDAs with the consent of the Co-Collateral Agents, not to be unreasonably withheld), periodically, consistent with past
practices) (and whether or not there are then any outstanding Obligations and whether or not a Cash Dominion Event then exists) to a Blocked Account all amounts on deposit in each DDA of such Loan Party, other than DDAs that are Excluded Accounts;
provided that such covenant shall not apply to (i) any minimum balance as may be required to be kept in the subject DDA by the depository institution at which such DDA is maintained or (ii) if greater, any amounts maintained by the
Loan Parties in such DDAs (and other DDAs with the consent of the Co-Collateral Agents, not to be unreasonably withheld) in the ordinary course of business consistent with past practices). The Loan Parties shall ACH or wire transfer daily to a
Blocked Account all payments due from credit card processors and other proceeds of any of the Collateral. All funds in each DDA and Blocked Account (other than Excluded Accounts) shall be conclusively presumed to be Collateral and proceeds of
Collateral and the Agent, Co-Collateral Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in any DDA or Blocked Account. 

(iii) Each Credit Card Notification and Third Party Payor Notification shall be held by the Agent until the occurrence of
a Cash Dominion Event. After the occurrence and during the continuance of a Cash Dominion Event, the Agent may deliver such Credit Card Notifications and Third Party Payor Notifications to the applicable Credit Card Processors and Third Party
Payors. 
 (iv) Each Blocked Account Agreement shall require, after the occurrence and during the continuance of
a Cash Dominion Event, the ACH or wire transfer no less frequently than daily (and whether or not there are then any outstanding Obligations) to the Agent’s Account, of all cash receipts and collections held in each applicable Blocked Account
(net of any minimum balance, not to exceed $25,000 (or such greater amount with the consent of the Co-Collateral Agents, not to be unreasonably withheld), as may be required to be kept in the subject Blocked Account by the Blocked Account Bank),
including, without limitation, the following: 
 (A) all available cash receipts from the sale of Inventory and
other Collateral; 
 (B) all proceeds of collections of Pharmacy Receivables and Credit Card Accounts
Receivable; 
 (C) all proceeds from any casualty or other insured damage to, or any taking under power of
eminent domain or by condemnation or similar proceeding of any Collateral; and 
 (D) all Net Proceeds from any
equity issuance by any Loan Party or its Subsidiaries. 
 The Borrowers shall be deemed to have complied with
the provisions of this clause (iv) if they cause the ACH or wire transfer daily of all funds which an Authorized 

  
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Representative of the Borrowers in good faith believes to be the amount deposited in the Blocked Accounts in excess of $25,000 (or such greater amount as permitted above in this clause (iv)).

 (v) The Agent’s Account shall at all times be under the sole dominion and control of the Co-Collateral
Agents. The Loan Parties hereby acknowledge and agree that (i) the Loan Parties have no right of withdrawal from the Agent’s Account, (ii) the funds on deposit in the Agent’s Account shall at all times be collateral security for
all of the Obligations, and (iii) the funds on deposit in the Agent’s Account shall be applied as provided in this Agreement. In the event that, notwithstanding the provisions of this Section 6.01(m), during the continuance of a Cash
Dominion Event, any Loan Party receives or otherwise has dominion and control of any such proceeds or collections, such proceeds and collections shall be held in trust by such Loan Party for the Co-Collateral Agents, shall not be commingled with any
of such Loan Party’s other funds or deposited in any account of such Loan Party and shall, not later than the Business Day after receipt thereof, be deposited into the Agent’s Account or dealt with in such other fashion as such Loan Party
may be instructed by the Co-Collateral Agents. During the continuance of a Cash Dominion Event, the amounts deposited into the Agent’s Account shall be applied to the prepayment of the Obligations then outstanding; provided that upon
payment in full of such outstanding Obligations, any remaining amounts will be released and transferred to a deposit account of the Loan Parties as the Borrowers shall direct and the existence of a Cash Dominion Event (other than as the result of
the occurrence of an Event of Default) shall not, in and of itself, impair the right of the Borrowers to Revolving Advances in accordance with the terms hereof. 
 (vi) Upon the request of the Agent, the Loan Parties shall cause bank statements and/or other reports to be delivered to the Agent not less often than monthly, accurately setting forth all amounts
deposited in each Blocked Account to ensure the proper transfer of funds as set forth above. 
 (vii) If the
results of the initial commercial finance examination with respect to the Loan Parties’ cash management (including without limitation the frequency of transfers from non-concentration DDAs to Blocked Accounts and the amount of funds retained by
the Loan Parties in accounts other than Blocked Accounts in the ordinary course) after the Effective Date are not reasonably acceptable to the Co-Collateral Agents in their Permitted Discretion with respect to the matters described in this
Section 6.01(m), the Co-Collateral Agents and the Borrowers shall agree in good faith to make such modifications to the provisions of this Section as the Co-Collateral Agents may reasonably deem necessary in order to protect their interests in
the Collateral (including the proceeds thereof). 
 (n) Liens on Non-Collateral Assets. In the event of
the incurrence of Debt and the granting of a Lien pursuant to Section 6.02(a)(vi) hereof, grant, and cause each of its Subsidiaries to, grant the Co-Collateral Agents, as security for the Obligations, a Lien on the assets of Holdings or any of
its Subsidiaries which is the subject of the Lien of the Person holding such Debt (to the extent that such assets do not then constitute Collateral) pursuant to Section 6.02(a)(vi) hereof. 

(o) Physical Inventories. Cause physical inventories and periodic cycle counts to be undertaken, at the expense of
the Loan Parties, in each case consistent with past practices (but in no event less frequently than one physical inventory per fiscal year), conducted by such inventory takers and following such methodology as is consistent with the immediately
preceding inventory or as otherwise may be satisfactory to the Co-Collateral Agents in their Permitted Discretion. The Co-Collateral Agents, at the expense of the Loan Parties, may participate in and/or observe each scheduled physical count of
Inventory which is undertaken on behalf of any Loan Party. The Loan Parties, within five (5) days following the completion of any such inventory, shall provide the Co-Collateral Agents with a reconciliation of the results of such inventory (as
well as of any other physical inventory or cycle counts undertaken by a Loan Party) and shall post such results to the Loan Parties’ stock ledgers and general ledgers, as applicable. 

  
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 (p)
Letters of Credit. In the event that the Loan Parties request that any Letter of Credit have an expiry after the Extended Termination Date and the Issuing Lenders in their discretion, issue such Letter of Credit, the Borrowers shall on or
before the date that is (10) Business Days prior to the Extended Termination Date, deposit in a cash collateral account of the Co-Collateral Agents, an amount equal to 105% of the L/C Obligations with respect to any such Letter of Credit.

 SECTION 6.02. Negative Covenants. So long as any Advance or other Obligation (other than contingent indemnification
obligations for which no claim shall have then been asserted) shall remain unpaid, any Letter of Credit shall remain outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired
amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) or any Lender shall have
any Commitment hereunder, each of Holdings and the Borrowers will not, and will not permit any of their Subsidiaries (which for all purposes of this Section 6.02 shall be deemed to exclude Sears Canada) to: 

(a) Liens, Etc. Create or suffer to exist any Lien upon property of Holdings, the Borrowers or any Domestic
Subsidiary constituting Inventory, Credit Card Accounts Receivable, Pharmacy Receivables or any other Collateral (as defined in the Guarantee and Collateral Agreement as in effect on the Effective Date) or any Related Intellectual Property, other
than: 
 (i) Permitted Liens, 

(ii) the Liens existing on the Effective Date and described in the Perfection Certificate, 

(iii) the replacement, extension or renewal of any Lien permitted by clause (ii) above upon or on the same property
theretofore subject thereto (and on any additions to any such property and in any property taken in replacement or substitution for any such property), or the replacement, extension or renewal (without increase in the amount) of the Debt secured
thereby, 
 (iv) to the extent any Liens permitted by clause (ii) above are terminated (and not replaced,
extended or renewed in accordance with clause (iii) above), Liens not otherwise permitted by clause (iii) above securing Debt in an amount up to the amount of Debt secured by such terminated Liens; provided that (A) any such
Lien (and the Debt secured thereby) shall be incurred no later than ninety (90) days after the termination of the Lien permitted by clause (ii) above, and (B) any such Lien shall be granted on the same property (and on any additions
to such property or any property taken by the Loan Parties in replacement or substitution for such property) as the terminated Lien, 
 (v) Liens on Related Intellectual Property with Persons that have entered into an agreement, reasonably satisfactory to the Agent, acknowledging the limited license granted to the Co-Collateral Agents in
such trademarks or trade names pursuant to the Loan Documents and agreeing to abide by, and not interfere with, such limited license; and 
 (vi) Liens to secure Debt of the Borrowers for borrowed money, in an aggregate principal amount not to exceed $2,000,000,000 at any time outstanding, provided, that, (A) no Default or
Event of Default then exists or would arise from the incurrence of such Debt or the granting of such Lien, (B) the Pro Forma Uncapped Excess Availability Condition has been satisfied after giving effect to the incurrence of any such Debt,
(C) such Lien shall be subordinate to the Lien of the Co-Collateral Agents and the holder of such Lien shall have entered into an intercreditor agreement substantially in the form of Exhibit F hereto, or such other form as the
Co-Collateral Agents may reasonably agree, and (D) if the Debt secured by such Liens is secured by both Collateral and by property and assets of any Loan Party which do not constitute Collateral, the Co-Collateral Agents shall have obtained a
Lien on such property and assets that do not otherwise constitute Collateral to secure the Obligations, subordinate to the Lien of the holder of such Debt pursuant to an intercreditor agreement substantially in the form of Exhibit G hereto,
or 

  
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such other form as the Co-Collateral Agents may reasonably agree, and (E) the documentation granting such Lien shall be in form and substance reasonably satisfactory to the Co-Collateral
Agents in their Permitted Discretion. 
 (b) Fundamental Changes. Merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets (in each case, whether now owned or
hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default or Event of Default shall have occurred and be continuing (i) any Subsidiary of any Borrower may merge
into such Borrower in a transaction in which such Borrower is the surviving entity, (ii) any Subsidiary of Holdings may merge into Holdings or any other Subsidiary of Holdings (provided that (A) if Kmart Corp. is a party to such merger,
such merger shall be with Holdings, Kmart or a direct Subsidiary of Kmart Corp. and Kmart Corp. shall be the continuing or surviving entity, (B) if any Subsidiary Guarantor is a party to such merger (other than with a Borrower or Holdings),
such Subsidiary Guarantor shall be the continuing or surviving entity or the continuing or surviving entity shall become a Subsidiary Guarantor and (C) if SRAC is a party to such merger, then Sears shall comply with the requirements of
Section 6.01(d)), (iii) any Subsidiary of Holdings other than the Borrowers may sell, transfer, lease or otherwise dispose of its assets to any Borrower, to Holdings or to a Subsidiary of Holdings (provided that if such sale or transfer
includes Collateral and the transferee is not the Borrower or Holdings, the transferee shall be a Subsidiary Guarantor), (iv) any Subsidiary of Holdings other than the Borrowers may sell, transfer, lease or otherwise dispose of its assets to a
Person that is not a Subsidiary through transactions which are undertaken in the ordinary course of its business or determined by Holdings or the Borrowers in good faith to be in the best interests of Holdings, the Borrowers and their Subsidiaries,
(v) any Subsidiary of Holdings other than the Borrowers (except, in the case of SRAC, as provided in Section 6.01(d)) may liquidate or dissolve if Holdings and the Borrowers determine in good faith that such liquidation or dissolution is
in the best interests of Holdings, the Borrowers and their Subsidiaries and is not materially disadvantageous to the Lenders, and (vi) Holdings or any Subsidiary of Holdings may merge with a Person that is not a Subsidiary of Holdings
immediately prior to such merger if, in the case of any merger involving Holdings, a Borrower or a Subsidiary Guarantor, Holdings, such Borrower or such Subsidiary Guarantor, as applicable, is the continuing or surviving entity or, in the case of
any merger involving a Subsidiary Guarantor, the continuing or surviving entity shall become a Subsidiary Guarantor in accordance with Section 6.01(i)(ii). 
 (c) Acquisitions. Make any Acquisition unless (a) at the time of any such Acquisition and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be
continuing, and (b) after giving effect to any such Acquisition (A) Pro Forma and Projected Capped Excess Availability is at least 25% of the Line Cap other than during the Holiday Season, and (B) during the Holiday Season
(x) Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (y) Pro Forma and Projected Uncapped Excess Availability is at least 30% of the Borrowing Base, (C) the Pro Forma Fixed Charge Ratio shall be
at least 1.1 to 1.0, and (D) immediately after giving effect to any such Acquisition, Holdings and the Borrowers shall comply with Section 6.01(i) to the extent applicable. 

(d) Restricted Payments. 
 (i) Declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, if at the date of declaration thereof (either before or immediately after giving effect thereto and the
payment thereof), a Default or Event of Default shall have occurred and be continuing, except that at any time that a Default or Event of Default shall exist and be continuing, (A) Holdings may declare and pay dividends with respect to its
equity interests payable solely in additional shares of its common stock, (B) Subsidiaries of Holdings may declare and pay dividends to Holdings, the Borrowers or another wholly owned Subsidiary of any Borrower and (C) non-wholly-owned
Subsidiaries may declare and pay dividends to the holders of their equity interests other than a Group Member on a ratable basis. 
 (ii) Declare or make, or agree to pay or make, directly or indirectly, any other Restricted Payment (other than a Restricted Payment to a Loan Party), except that if no Default or Event of Default shall
have occurred and be continuing (either before or immediately after giving effect thereto and the payment thereof): 
 (A)
Holdings and its Subsidiaries may make Restricted Payments in an aggregate amount not to exceed $400,000,000 from and after the Effective Date, provided, that, (i) immediately after giving effect to any such Restricted Payment, Pro Forma
and Projected Capped Excess Availability is greater than 50% of the Line Cap and (ii) Restricted Payments pursuant to this subsection (i) shall not exceed $150,000,000 in any rolling twelve month period; 

  
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 (B) Holdings and its
Subsidiaries may make other Restricted Payments, provided, that, immediately after giving effect thereto (i) Pro Forma and Projected Capped Excess Availability is at least 25% of the Line Cap, other than during the Holiday Season,
(ii) during the Holiday Season (A) Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (B) Pro Forma and Projected Uncapped Excess Availability is at least 30% of the Borrowing Base, and
(iii) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; provided, that, for purposes of the calculation of Pro Forma Fixed Charge Ratio (x) Adjusted Consolidated EBITDA and Consolidated Interest Expense shall be
computed on a trailing four quarter basis, and scheduled principal payments shall be computed on a four quarter forward basis, and (y) the amount of the Restricted Payment paid in cash being made in connection with the calculation shall be
added to Fixed Charges; and 
 (C) Holdings and its Subsidiaries may make other Restricted Payments (1) from the Net
Proceeds of any common stock issuances by Holdings after the Effective Date, (2) from the Net Proceeds of any Permitted Dispositions of the type set forth in clauses (f) and (g) of the definition thereof, and (3) from any
dividends and distributions received (directly or indirectly) on account of equity interests in any Subsidiary of Holdings which is not a Loan Party or on account of equity interests in OSH, and (4) to the stockholders of Holdings in the form
of the equity interests of the subsidiaries set forth on Schedule 6.02(d), provided, that in each case, immediately after giving effect thereto and the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap.

 (e) Negative Pledge Clauses. Enter into or suffer to exist or become effective any agreement that
prohibits or limits the ability of Holdings or any Subsidiary of Holdings to create, incur, assume or suffer to exist any Lien in favor of the Co-Collateral Agents upon any of their property or revenues, whether now owned or hereafter acquired,
other than any agreement relating to any Lien not prohibited by Section 6.02(a) (provided that any prohibition or limitation shall apply only to the assets subject to such Lien). 

(f) Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary of Holdings other than a Loan Party or Sears Canada and its Subsidiaries to (a) make Restricted Payments in respect of any equity interests of such Subsidiary held by, or pay any
indebtedness owed to, Holdings or any other Subsidiary of Holdings, (b) make loans or advances to, or other investments in, Holdings or any other Subsidiary of Holdings or (c) transfer any of its assets to Holdings or any other Subsidiary
of Holdings, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under this Agreement and the other Loan Documents; (ii) any restrictions with respect to a Subsidiary imposed pursuant
to an agreement that has been entered into in connection with the disposition of all or any portion of the equity interests or assets of such Subsidiary; (iii) the provisions contained in any existing indebtedness (and in any refinancing of
such indebtedness so long as no more restrictive than those contained in the respective existing indebtedness so refinanced); (iv) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of any
Borrower or a Subsidiary of any Borrower entered into in the ordinary course of business, (v) customary restrictions and conditions contained in the documents relating to any Lien, so long as such Lien is not prohibited hereunder and such
restrictions or conditions relate only to the specific asset subject to such Lien; (vi) customary provisions restricting assignment of any contract entered into by any Borrower or any Subsidiary of any Borrower in

  
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the ordinary course of business, (vii) any agreement or instrument governing acquired debt, which restriction is not applicable to any Person or the properties or assets of any Person, other
than the Person or the properties or assets of the Person acquired pursuant to the respective acquisition and so long as the respective encumbrances or restrictions were not created (or made more restrictive) in connection with or in anticipation of
the respective acquisition; (viii) customary provisions restricting the assignment of licensing agreements, management agreements or franchise agreements entered into by any Borrower or any of its Subsidiaries in the ordinary course of
business; (ix) restrictions on the transfer of assets securing purchase money obligations and capitalized lease obligations; (x) customary net worth provisions contained in real property leases entered into by Subsidiaries of any Borrower,
so long as the applicable Borrower has determined in good faith that such net worth provisions could not reasonably be expected to impair the ability of the Borrowers and their Subsidiaries to meet their ongoing obligations. 

(g) Accounting Changes. Make or permit any change in accounting policies or reporting practices, except as required
or permitted by GAAP. 
 (h) Circumvention of Covenants. Circumvent any of the covenants set forth in
Section 6.02 by causing or permitting Sears Canada or OSH to undertake a transaction for the benefit of Holdings or any of its Subsidiaries which Holdings or any of its Subsidiaries would not be permitted to undertake directly. 

(i) Dispositions. Make any Disposition except Permitted Dispositions. 

(j) Debt; Prepayment of Debt. 

(i) Create, incur, assume, suffer to exist or otherwise become or remain liable with respect to, any Debt, except
Permitted Debt. 
 (ii) Prepay any Debt with proceeds of Advances unless (a) at the time of any such
prepayment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such prepayment (A) Pro Forma and Projected Capped Excess
Availability is at least 25% of the Line Cap other than during the Holiday Season, (B) during the Holiday Season (x) Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (y) Pro Forma and Projected
Uncapped Excess Availability is at least 30% of the Borrowing Base and (C) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0. 
 (k) Investments. Make any Investments, except Permitted Investments. 
 (l) Store Closings. Close more than 250 full line Sears or Kmart Stores in any fiscal quarter or more than 500 full line Sears or Kmart Stores in any four consecutive fiscal quarters without the
consent of the Co-Collateral Agents, such consent not to be unreasonably withheld and/or fail to comply with the requirements of the definition of Store Closure Sale when and as applicable. 

SECTION 6.03. Financial Covenant. During the continuance of a Covenant Compliance Event, each of Holdings and the Borrowers will
not permit the Fixed Charge Ratio as of the last day of any fiscal quarter of Holdings to be less than 1.0 to 1.0. 
 ARTICLE VII

 EVENTS OF DEFAULT 
 SECTION 7.01. Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 

(a) Any Borrower shall fail to pay (i) any principal of any Advance or Reimbursement Obligation when the same becomes
due and payable, or (ii) any interest on any Advance or Reimbursement Obligation or any fees, or any other amounts payable under this Agreement or any other Loan Document, in each case under this clause (ii), within three (3) days after
the same becomes due and payable; or 

  
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 (b) Any
representation or warranty made by any Loan Party herein or in any other Loan Document shall prove to have been incorrect in any material respect when made; or 
 (c) (i) Any Loan Party shall fail to perform or observe any term, covenant or agreement contained in Section 6.01 (d), (e), (h), (j) (other than 6.01(j)(viii)), (k), or (m) 6.02 or 6.03 of
this Agreement or (ii) any Loan Party shall fail to perform or observe any other term, covenant or agreement contained in this Agreement or any other Loan Document, if such failure shall remain unremedied for thirty (30) days after written
notice thereof shall have been given to Holdings and the Borrowers by the Agent or any Lender; or 
 (d) Any
Group Member (excluding Sears Canada for so long as the Loan Parties do not collectively own, directly or indirectly, more than 60% of the voting or economic interests in Sears Canada) shall fail to pay principal of at least $50,000,000 on any Debt
that is outstanding (but excluding Debt outstanding hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any Debt that is outstanding in a principal amount of at least
$50,000,000 and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate the maturity of such Debt; or any such Debt shall be declared to be due
and payable, or required to be prepaid or redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made and is accepted in an amount of at least $50,000,000 (in each case other than
(i) a scheduled prepayment, redemption or purchase, or (ii) a mandatory prepayment, redemption or purchase, or a required offer to prepay, redeem or purchase, that results from the voluntary sale or transfer of property or assets), in each
case prior to the stated maturity thereof; or 
 (e) Any Group Member shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Group Member seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not
instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 90 days, or any of the actions sought in such proceeding (including the entry of an order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial part of its property) shall occur; or any Group Member shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or 

(f) A judgment or order for the payment of money in excess of $50,000,000 (net of any portion of such judgment to be paid
by a third-party insurer as to which coverage has not been disputed) shall be rendered against any Group Member (excluding Sears Canada for so long as the Loan Parties do not collectively own, directly or indirectly, more than 60% of the voting or
economic interests in Sears Canada) and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 10 consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
 (g) (i) Any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its Subsidiaries, and any Person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan) other than a Permitted Holder becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire 

  
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(such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 35% or more of the equity securities of
Holdings entitled to vote for members of the Board of Directors of Holdings on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right) and such
“person” or “group” shall beneficially own (as such term is used herein) a greater percentage of the equity Securities of Holdings entitled to vote for members of the Board of Directors than the Permitted Holders shall,
collectively, beneficially own; or (ii) during any period of 12 consecutive months, a majority of the members of the Board of Directors or other equivalent governing body of Holdings cease to be composed of individuals (x) who were members
of that board or equivalent governing body on the first day of such period, (y) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (x) above constituting at the time of
such election or nomination at least a majority of that board or equivalent governing body or (z) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (x) and
(y) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (y) and clause (z), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the Board of Directors); or (iii) Holdings shall cease for any reason to own, directly or indirectly, 100% of the Voting Stock of Sears and Kmart; or 

(h) (i) Any Borrower or any of its ERISA Affiliates shall incur, or shall be reasonably likely to incur liability in
excess of $100,000,000 in the aggregate as a result of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete withdrawal of such Borrower or any of its ERISA Affiliates from a Multiemployer Plan;
or (iii) the reorganization or termination of a Multiemployer Plan; or (iv) the PBGC shall have filed a notice of Lien; or 
 (i) Any of the Security Documents shall cease, for any reason, to be in full force and effect, or any Loan Party shall so state in writing, or any Lien created by any of the Security Documents shall cease
to be enforceable and of the same effect and priority purported to be created thereby, including as a result of the failure to comply with Section 5.4 of the Guarantee and Collateral Agreement; or 

(j) The guarantee contained in Section 2 of the Guarantee and Collateral Agreement shall cease, for any reason, to be
in full force and effect or any Loan Party shall so state in writing; or 
 (k) (i) OSH shall cease to
qualify as an “Unrestricted Subsidiary” and shall qualify as a Subsidiary (unless OSH shall have become a Loan Party) or (ii) Holdings or any of its Subsidiaries, on the one hand, and OSH and its Subsidiaries, on the other hand, shall
(w) fail to maintain books separate from those of the other, (x) fail to maintain bank accounts separate from those of the other, (y) commingle a material portion of their assets with those of the other or (z) in the case of
Holdings or any of its Subsidiaries, make or agree to make any payment to a creditor of any Unrestricted Subsidiary in its capacity as such, other than as contemplated by the definition of “Unrestricted Subsidiary”; 

then, and in any such event, the Agent may, or, at the request of the Required Lenders shall, take any or all of the following actions upon notice to the
Borrowers: (i) declare the Commitment of each Lender to be terminated, whereupon the same shall forthwith terminate; and (ii) declare the Advances, all interest thereon and all other amounts payable under this Agreement and the other Loan
Documents (including all amounts of the L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be forthwith due and payable, whereupon the Advances, all
such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrowers; provided, however, that in
the event of an actual or deemed entry of an order for relief with respect to any Borrower under the United States Bankruptcy Code, (A) the Commitment of each Lender shall automatically be terminated and (B) the Advances, all such interest
and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrowers. With respect to all Letters of Credit with respect to
which presentment for honor shall not have occurred at the time of an acceleration pursuant to 

  
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this paragraph or for which the outstanding amount of any drawing under any Letters of Credit (including any taxes, fees, charges and other costs and expenses incurred by the Issuing Lender in
connection therewith) have not then been fully reimbursed or discharged, the Borrowers shall at such time deposit in a cash collateral account opened by the Co-Collateral Agents, an amount equal to 105% of the aggregate then undrawn and unexpired
amount of such Letters of Credit and all other Reimbursement Obligations. Amounts held in such cash collateral account shall be applied by the Agent to the payment of drafts drawn under such Letters of Credit and the other Reimbursement Obligations,
and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon and all Reimbursement Obligations fully reimbursed or discharged, if any, shall be applied to repay other obligations of the Borrowers
hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other obligations of the Borrowers hereunder and under the
other Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrowers (or such other Person as may be lawfully entitled thereto). 

ARTICLE VIII 

THE AGENT AND CO-COLLATERAL AGENTS 
 SECTION 8.01. Resignation of the Original Agent. 
 (a) The
Original Agent hereby resigns, effective upon the Effective Date, as Agent under the Existing Credit Agreement and the other Loan Documents. The Lenders and the Borrowers hereby accept such resignation and waive the requirement set forth in
Section 8.09 of the Existing Credit Agreement that such resignation be effective only after thirty (30) days’ prior notice. 
 (b) The Lenders hereby appoint the Bank as successor Agent and the Borrowers hereby consent to such appointment. The Bank by signing below, hereby accepts such appointment. 

(c) The Original Agent shall, at the expense of the Borrowers, execute and deliver to the Bank such instruments,
documents, and agreements, and shall do all such things from time to time hereafter as the Bank reasonably may request to carry into effect the provisions and intent of this resignation and appointment. 

(d) With respect to all UCC-1 Financing Statements filed and naming any Loan Party as Debtor and the Original Agent as
Secured Party, the Original Agent hereby authorizes the Bank to file (1) UCC-3 Amendments replacing the Original Agent as Secured Party with the Co-Collateral Agents, or (2) UCC Termination Statements releasing certain filings by the
Original Agent as Secured Party and a Loan Party as Debtor, as applicable. 
 (e) Pursuant to the provisions of
Section 8.09 of the Existing Credit Agreement, all provisions of Article VIII of the Existing Credit Agreement shall continue to inure to the benefit of the Original Agent as to any actions taken or omitted to be taken by it while it was Agent
under the Existing Credit Agreement and other Loan Documents. 
 SECTION 8.02. Appointment. Each Lender hereby
irrevocably designates and appoints (i) the Bank as Agent, and (ii) the Bank, WFRF and GECC as Co-Collateral Agents, under this Agreement and the other Loan Documents, and each such Lender irrevocably authorizes the Agent and the
Co-Collateral Agents, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to the Agent and the
Co-Collateral Agents, as applicable, by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. For clarity, and notwithstanding anything to the contrary contained in this
Agreement and the other Loan Documents, no consent of the Lenders shall be required to amend this Agreement or the Loan Documents to (i) cause additional assets to become Collateral or to add additional Subsidiaries as guarantors of the
Obligations, (ii) implement the provisions of Section 8.13, or (iii) implement a Commitment Increase in accordance with the terms of Section 2.18, and the Agent and the Loan Parties shall be entitled to execute any and all
amendments necessary or desirable to accomplish any of the foregoing and such amendments 

  
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shall be binding on the other parties hereto Notwithstanding any provision to the contrary elsewhere in this Agreement, neither the Agent nor the Co-Collateral Agents shall have any duties or
responsibilities, except those expressly set forth in this Agreement and the other Loan Documents to which it is a party, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent or the Co-Collateral Agents. 
 SECTION 8.03. Delegation of Duties. Each of the Agent and the Co-Collateral Agents may execute any of its duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Neither the Agent nor the Co-Collateral Agents shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care. 
 SECTION 8.04. Exculpatory Provisions. No Agent (for purposes of this Article
VIII, “Agent” and “Agents” shall mean the collective reference to the Agent, the Co-Collateral Agents and any other Lender designated as an “Agent” for purposes of this Agreement, including the Lead
Arrangers, the Syndication Agent and the Co-Documentation Agents) nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it
or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this
Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party that is a party thereto to perform its obligations hereunder or thereunder. The Agents shall not be
under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of
any Loan Party. 
 SECTION 8.05. Reliance by Agent. The Agent and Co-Collateral Agents shall be entitled to rely, and
shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by them to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to Holdings or the Borrowers), independent accountants and other experts selected by the Agent. The
Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Agent. The Agent and Co-Collateral Agents shall be fully
justified in failing or refusing to take any action under this Agreement or any other Loan Document unless they shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, the Supermajority Lenders
or all Lenders) as they deem appropriate or they shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by them by reason of taking or continuing to take any such action. The
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, the Supermajority
Lenders or all Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Advances. 
 SECTION 8.06. Notice of Default. The Agent and the Co-Collateral Agents shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Agent or the
applicable Co-Collateral Agent has received notice from a Lender, Holdings or a Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that the
Agent receives such a notice, the Agent shall give notice thereof to the Lenders. The Agent and the Co-Collateral Agents shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders
(or, if so specified by this Agreement, the Supermajority Lenders or all Lenders); provided that unless and until the Agent or the Co-Collateral Agents shall have received such directions, the Agent, in consultation with the Co-Collateral
Agents, may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders. 

  
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 SECTION 8.07.
Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that neither the Agent, the Co-Collateral Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by the Agent or any Co-Collateral Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by the Agent or any Co-Collateral Agent to any Lender. Each Lender represents to the Agent and the Co-Collateral Agents that it has, independently and without reliance upon the Agent, any Co-Collateral Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made
its own decision to make its Advances hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon the Agent, any Co-Collateral Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other documents expressly required to be furnished to
the Lenders by the Agent or the Co-Collateral Agents hereunder, the Agent and the Co-Collateral Agents shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the possession of the Agent or any Co-Collateral Agent or any of their respective officers, directors,
employees, agents, attorneys-in-fact or affiliates. 
 SECTION 8.08. Reports and Financial Statements 

By signing this Agreement, each Lender: 
 (a) agrees to furnish the Agent after the occurrence and during the continuance of a Cash Dominion Event (and thereafter at such frequency as the Agent may reasonably request) with a summary of all Bank
Products and Cash Management Services provided by, and amounts due or to become due on account thereof to, such Lender. In connection with any distributions to be made hereunder, the Agent shall be entitled to assume that no amounts are due to any
Lender on account of any such Bank Products or Cash Management Services unless the Agent has received written notice thereof from such Lender; 
 (b) is deemed to have requested that the Agent furnish such Lender, promptly after they become available, copies of all financial statements and reports required to be delivered by the Loan Parties
hereunder and all commercial finance examinations and appraisals of the Collateral received by the Co-Collateral Agents (collectively, the “Reports”) (which the Agent and the Co-Collateral Agents agree to so deliver); 

(c) expressly agrees and acknowledges that the Agent and the Co-Collateral Agents make no representation or warranty as to
the accuracy of the Reports, and shall not be liable for any information contained in any Report; 
 (d)
expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agent, the Co-Collateral Agents or any other party performing any audit or examination will inspect only specific information regarding the
Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel; 
 (e) agrees to keep all Reports confidential in accordance with the provisions of this Agreement; and 

  
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 (f)
without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold the Agent and the Co-Collateral Agents and any such other Lender preparing a Report harmless from any action the
indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any credit extensions that the indemnifying Lender has made or may make to the Borrowers, or the indemnifying Lender’s
participation in any Letter of Credit or Swingline Advance, or the indemnifying Lender’s purchase of, a Loan or Loans; and (ii) to pay and protect, and indemnify, defend, and hold the Agent, the Co-Collateral Agents and any such other
Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorney costs) incurred by the Agent, Co-Collateral Agents and any such other Lender preparing
a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 
 SECTION 8.09. Indemnification. The Lenders agree to indemnify the Agent and each Co-Collateral Agent in its capacity as such (to the extent not reimbursed by Holdings or the Borrowers and without
limiting the obligation of Holdings or the Borrowers to do so), ratably according to their respective Commitment Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date
upon which the Commitments of any Lender shall have terminated and the Advances shall have been paid in full, ratably in accordance with such Commitment Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Advances) be imposed on, incurred by or asserted against
such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by such Agent under or in connection with any of the foregoing; provided that no Non-Extending Lender shall be obligated to indemnify the Agent or any Co-Collateral Agent for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which relate to matters subsequent to the termination of such Non-Extending Lender’s Commitment and repayment of all Obligations to such Non-Extending
Lender (for clarity, such Non-Extending Lenders shall remain liable for any claims which relate to a period during which they were a “Lender” hereunder, even if first asserted after the termination of such Non-Extending Lender’s
Commitment and repayment of all Obligations to such Non-Extending Lender), provided further that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the Agent’s or any Co-Collateral Agent’s gross negligence or willful misconduct. The
agreements in this Section shall survive the payment of the Advances and all other amounts payable hereunder. 
 SECTION 8.10.
Agent in Its Individual Capacity. Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent. With respect to its Advances made
or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were
not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity. 

SECTION 8.11. Successor Agent. The Agent or any Co-Collateral Agent may resign as Agent or Co-Collateral Agent, as applicable,
upon 30 days’ notice to the Lenders and the Borrowers. If the Agent or any Co-Collateral Agent shall resign as Agent or Co-Collateral Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among
the Lenders a successor agent or co-collateral agent for the Lenders, which successor agent or co-collateral agent shall (unless an Event of Default shall have occurred and be continuing) be subject to approval by the Borrowers (which approval shall
not be unreasonably withheld or delayed), whereupon such successor agent or co-collateral agent shall succeed to the rights, powers and duties of the Agent and the resigning Co-Collateral Agent, and the term “Agent” and “Co-Collateral
Agent” shall mean such successor agent or successor co-collateral agent effective upon such appointment and approval, and the former Agent’s or Co-Collateral Agent’s rights, powers and duties as Agent or Co-Collateral Agent, as
applicable, shall be terminated, without any other or further act or deed on the part of such former Agent or Co-Collateral Agent or any of the parties to this Agreement or any holders of the Advances. If no successor agent or co-collateral agent
has accepted appointment as Agent or Co-Collateral Agent, as applicable, by the date that is 30 days following a retiring 

  
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Agent’s or Co-Collateral Agent’s notice of resignation, the retiring Agent’s or Co-Collateral Agent’s resignation shall nevertheless thereupon become effective, and the
Lenders shall assume and perform all of the duties of the Agent or Co-Collateral Agent hereunder, as applicable, until such time, if any, as the Required Lenders appoint a successor agent or successor co-collateral agent as provided for above. After
any retiring Agent’s or Co-Collateral Agent’s resignation as Agent or Co-Collateral Agent, the provisions of this Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent or
Co-Collateral Agent under this Agreement and the other Loan Documents. 
 SECTION 8.12. Co-Documentation Agents and
Syndication Agent The Co-Documentation Agents and the Syndication Agent nor any other Lender designated as an “Agent” for purposes of this Agreement (other than the Bank in its capacity as Agent and Co-Collateral Agent, WFRF in its
capacity as Co-Collateral Agent, and GECC in its capacity as Co-Collateral Agent) shall have any duties or responsibilities hereunder in its capacity as such. 
 SECTION 8.13. Defaulting Lenders. 
 (a) If a Lender becomes a Defaulting
Lender, then, in addition to the rights and remedies that may be available to the other Credit Parties, the Loan Parties or any other party at law or in equity, and not at limitation thereof, (i) such Defaulting Lender’s right to
participate in the administration of, or decision-making rights related to, the Obligations in respect of Required Lender and Supermajority Lender votes, this Agreement or the other Loan Documents shall be suspended during the pendency of such
failure or refusal, (ii) a Defaulting Lender shall be deemed to have permanently (unless reinstated as set forth below) assigned, without further consideration any and all payments due to it from the Loan Parties, whether on account of
outstanding Advances, interest, fees or otherwise, to the remaining non-Defaulting Lenders for application to, and reduction of, their proportionate shares of all outstanding Obligations until, as a result of application of such assigned payments
the Lenders’ respective Commitment Percentages of all outstanding Obligations shall have returned to those in effect immediately prior to such delinquency and without giving effect to the nonpayment causing such delinquency, or (iii) at
the option of the Agent, any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu of being distributed to such Defaulting Lender, be retained by the Agent as cash collateral
for, and applied by the Agent to, defaulted and future funding obligations of the Defaulting Lender in respect of any Advance or existing or future participating interest in any Swingline Loan or Letter of Credit. The Defaulting Lender’s
decision-making and participation rights and rights to payments as set forth in clauses (i) and (ii) hereinabove shall be restored only upon (a) the payment by the Defaulting Lender of its Commitment Percentage of any Obligations, any
participation obligation, or expenses as to which it is delinquent, together with interest thereon at a rate equal to the Federal Funds Rate from time to time in effect from the date when originally due until the date upon which any such amounts are
actually paid and (b) receipt by the Agent and the Borrowers of a certification by such Defaulting Lender of its ability and intent to comply with the provisions of this Agreement going forward. 

(b) The non-Defaulting Lenders shall also have the right, but not the obligation, in their respective, sole and absolute discretion, to
cause the termination and assignment, without any further action by the Defaulting Lender for no cash consideration (pro rata, based on the respective Commitments of those Lenders electing to exercise such right), of the Defaulting
Lender’s Commitment to fund future Advances. Upon any such purchase of the Commitment of any Defaulting Lender, the Defaulting Lender’s share in future Credit Extensions and its rights under the Loan Documents with respect thereto (but not
with respect to then outstanding Obligations owed to the Defaulting Lender) shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest,
including, if so requested, an Assignment and Acceptance. 
 (c) In addition to the rights of the non-Defaulting Lenders set
forth in Section 8.13(b) above, each Borrower shall have the right, at any time, upon at least five Business Days’ notice to a Defaulting Lender or a Deteriorating Lender (with a copy to the Agent), to terminate in whole such Lender’s
Commitments and to replace such Defaulting Lender in accordance with the provisions of Section 9.16 hereof. 
 (d) Each
Defaulting Lender shall indemnify the Agent, the Co-Collateral Agents and each non-Defaulting Lender from and against any and all loss, damage or expenses, including but not limited to reasonable

  
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attorneys’ fees and funds advanced by the Agent, the Co-Collateral Agents or by any non-Defaulting Lender, on account of a Defaulting Lender’s failure to timely fund its Commitment
Percentage of an Advance or to otherwise perform its obligations under the Loan Documents. 
 ARTICLE IX 

MISCELLANEOUS 

SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, nor consent
to any departure by any Borrower or any Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall (a) unless in writing and signed by each Lender directly affected thereby, do any of the following: (i) increase the
amount or extend the expiration date of any Lender’s Commitment, (ii) reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder or (iii) postpone any date fixed for any payment of principal
of, or interest on, the Advances or any fees or other amounts payable hereunder; (b) unless in writing and signed by all of the Lenders, do any of the following: (i) change the percentage of the Commitments or of the aggregate unpaid
principal amount of the Advances, or the number of Lenders, that shall be required for the Lenders or any of them to take any action hereunder, (ii) other than in accordance with Section 9.13, release all or substantially all of the
Collateral or release all or substantially all of the guarantors from their obligations under the Guarantee and Collateral Agreement, (iii) amend this Section 9.01 or (iv) other than in accordance with Section 6.01(d), release
either Borrower from all of its obligations hereunder; (c) unless in writing and signed by the Supermajority Lenders, increase any advance rate percentage set forth in the definition of “Borrowing Base”; (d) unless in writing and
signed by the Agent and the Co-Collateral Agents (in addition to the Lenders required above to take such action), as applicable, amend, modify or waive any provision of Article VIII or affect the rights or duties of the Agent and the Co-Collateral
Agents, as applicable, under this Agreement or any other Loan Document; (e) unless in writing and signed by the Swingline Lender (in addition to the Lenders required above to take such action), amend, modify or waive any provision of
Section 2.03 or 2.04; or (f) unless in writing and signed by each Issuing Lender (in addition to the Lenders required above to take such action), amend, modify or waive any provision of Article III. 

SECTION 9.02. Notices, Etc. 
 (a) All notices and other communications provided for hereunder shall be in writing (including telecopier communication) and mailed, telecopied or delivered, (i) if to Holdings, any Borrower or any
Subsidiary Guarantor, at its address at 3333 Beverly Road, Hoffman Estates, Illinois 60179, Attention: General Counsel, with a copy to Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New York, New York 10019, Attention: Scott Charles;
(ii) if to any Lender, at its address set forth in its completed administrative questionnaire delivered to the Agent; (iii) if to the Bank, in its capacity as Agent, a Co-Collateral Agent, the Swingline Lender or an Issuing Lender, at its
address at 100 Federal Street, 9th Floor, Boston,
Massachusetts 02110, Attention: Stephen J. Garvin, with a copy to Riemer & Braunstein LLP, Three Center Plaza, Boston, Massachusetts 02108, Attention: David S. Berman, Esq.; (iv) if to WFRF or its Affiliates, in its capacity as a
Co-Collateral Agent or as an Issuing Lender], at its address at One Boston Place, 19th Floor, Boston, Massachusetts 02108, Attention: Joseph Burt, with a copy to Brown Rudnick LLP, One Financial Center, Boston, Massachusetts 02111, Attention: Steven Levine, Esq., (v) if to GECC or its
Affiliates, in its capacity as a Co-Collateral Agent, at its address at 10 Riverview Drive, Danbury, Ct 06810, Attention: Joshua Osher, with a copy to Bingham McCutchen LLP, One Federal Street, Boston, Massachusetts 02110, Attention: Sandra Vrejan,
Esq., or (vi), if to any other Issuing Lender, at such address as shall be designated by such party in a written notice to the other parties and, as to each other party, at such other address as shall be designated by such party in a written notice
to the Borrowers and the Agent; provided that notices required to be delivered pursuant to Section 6.01(j)(i), (ii), (iii), and (v) shall be delivered to the Agent and the Lenders as specified in Section 9.02(b). All such
notices and communications shall, when mailed, telecopied, telegraphed or emailed, be effective when deposited in the mails, telecopied, delivered to the telegraph company or confirmed by email, respectively, except that notices and communications
to the Agent pursuant to Article II, III or VIII shall not be effective until received by the Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or any Loan Document or of any
exhibit hereto or thereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 

  
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 (b) Holdings and the
Borrowers agree that materials required to be delivered pursuant to Sections 6.01(j)(i), (ii), (iii) and (v), shall be deemed delivered to the Agent on the date on which Holdings causes such reports, or reports containing such financial
statements, to be posted on the Internet at www.sec.gov or at such other website identified by the Borrowers in a written notice to the Agent and the Lenders and that is accessible by the Lenders without charge or if not so posted, may be delivered
to the Agent in an electronic medium in a format acceptable to the Agent by email to stephen.garvin@bankofamerica.com. Holdings and the Borrowers agree that the Agent may make such materials, as well as any other written information,
documents, instruments and other material relating to Holdings, the Borrowers, any of their Subsidiaries or any other materials or matters relating to this Agreement, the Loan Documents or any of the transactions contemplated hereby (collectively,
the “Communications”) available to the Lenders by posting such notices on Intralinks or a substantially similar electronic system (the “Platform”). Holdings and the Borrowers acknowledge that (i) the
distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available”
and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each expressly disclaims liability for errors or omissions in the Communications or the Platform. No
warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Agent or any of
its Affiliates in connection with the Platform. 
 (c) Each Lender agrees that notice to it (as provided in the next sentence)
(a “Notice”) specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement; provided
that if requested by any Lender the Agent shall deliver a copy of the Communications to such Lender by email or telecopier. Each Lender agrees (i) to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent
by electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such
Lender) and (ii) that any Notice may be sent to such e-mail address. 
 SECTION 9.03. No Waiver; Remedies. No
failure on the part of any Lender or the Agent to exercise, and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 SECTION 9.04. Costs and Expenses. 
 (a) Holdings and the Borrowers jointly
and severally agree to pay promptly all reasonable costs and expenses of the Agent and the Co-Collateral Agents (provided that the aggregate expenses payable to WFRF in connection with the preparation, execution and delivery of this Agreement shall
be limited to $75,000 for counsel fees and $5,000 for other expenses) in connection with the preparation, execution, delivery, distribution (including via the internet or through a service such as Intralinks), administration, modification and
amendment of this Agreement, the other Loan Documents and the other documents to be delivered hereunder, including, (A) all due diligence, syndication (including printing, distribution and bank meetings), transportation, computer, duplication,
appraisal, consultant, and audit expenses, (B) subject to Section 6.01(k), all expenses incurred in connection with inspections, verifications, examinations and appraisals relating to the Borrowing Base and the Collateral, and (C) the
reasonable fees and expenses of counsel for the Agent and the Co-Collateral Agents with respect thereto and with respect to advising the Agent and the Co-Collateral Agents as to their rights and responsibilities under this Agreement and the other
Loan Documents. Holdings and the Borrowers further jointly and severally agree to pay on demand all costs and expenses of the Agent, the Co-Collateral Agents and the Lenders, if any (including reasonable counsel fees and expenses), in connection
with the enforcement of, or protection of their rights under, (whether through negotiations, legal proceedings or otherwise) of this Agreement, the other Loan Documents and the other documents to be delivered hereunder, including reasonable fees and
expenses of one counsel for the Agent, and one counsel for the Lenders in connection with the enforcement of or protection rights under this Section 9.04(a). 

  
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 (b) Holdings and the
Borrowers jointly and severally agree to indemnify and hold harmless the Agent, each Co-Collateral Agent and each Lender and each of their Affiliates and their officers, directors, employees, agents and advisors (each, an “Indemnified
Party”) from and against any and all claims, damages, losses, liabilities and expenses (including reasonable fees and expenses of counsel) incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (i) this Agreement, the Existing Credit Agreement, the other Loan Documents, any of
the transactions contemplated herein or therein or the actual or proposed use of the Letters of Credit or the proceeds of the Advances, and (ii) the actual or alleged presence of Hazardous Materials on any property of Holdings, the Borrowers or
any of their Subsidiaries or any Environmental Action relating in any way to Holdings, the Borrowers or any of their Subsidiaries, except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a
court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 9.04(b) applies,
such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by Holdings, any Borrower, its directors, equityholders or creditors or an Indemnified Party or any other Person, whether or not any Indemnified
Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated. Holdings and the Borrowers also agree not to assert any claim for special, indirect, consequential or punitive damages against the Agent, any
Co-Collateral Agent, any Lender, any of their Affiliates, or any of their respective directors, officers, employees, attorneys and agents, on any theory of liability, arising out of or otherwise relating to this Agreement, the other Loan Documents,
any of the transactions contemplated herein or the actual or proposed use of the Letters of Credit or the proceeds of the Advances. 
 (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is made by any Borrower to or for the account of a Lender other than on the last day of the Interest Period for such
Advance, as a result of a payment or Conversion pursuant to Section 2.09(d) or (e), 2.11 or 2.13, acceleration of the maturity of the Advances pursuant to Section 7.01 or for any other reason, or by an Eligible Assignee to a Lender other
than on the last day of the Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 9.07 as a result of a demand by any Borrower pursuant to Section 9.07(a), the applicable
Borrower shall, promptly after notice by such Lender setting forth in reasonable detail the calculations used to quantify such amount (with a copy of such notice to the Agent), pay to the Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion, including any loss (including loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. 
 (d) Without
prejudice to the survival of any other agreement of Holdings or any Borrower hereunder, the agreements and obligations of Holdings and the Borrowers contained in Sections 2.12, 2.15 and 9.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the other Loan Documents. 
 SECTION 9.05. Right of Set-off.
Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 7.01 to authorize the Agent to declare the Extensions of Credit due and
payable pursuant to the provisions of Section 7.01, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of Holdings or any Borrower against any and all of the obligations of
Holdings and the Borrowers now or hereafter existing under this Agreement, the other Loan Documents and the Extensions of Credit of such Lender, whether or not such Lender shall have made any demand under this Agreement or the other Loan Documents.
Each Lender agrees promptly to notify Holdings or the applicable Borrower (with a copy to the Agent) after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender and its Affiliate under this Section are in addition to other rights and remedies (including other rights of set-off) that such Lender and its Affiliate may have. 

SECTION 9.06. Binding Effect; Effectiveness. When this Agreement has been executed by Holdings, the Borrowers, the Agent and the
Co-Collateral Agents, and the Required Lenders, this Agreement shall 

  
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thereafter be binding upon and inure to the benefit of Holdings, the Borrowers, the Agent, the Co-Collateral Agents, each Lender and their respective successors and assigns; provided,
that, except with respect to Sections 9.07 and 9.08, this Agreement shall only become effective upon satisfaction of the conditions precedent set forth in Section 4.01 and none of the provisions of this Agreement, including without limitation
provisions in respect of Advances and Letters of Credit to be made by or issued by any Lender, and in respect of any covenant, fee, indemnity, default, and expense reimbursement made by any Loan Party or for which any Loan Party is liable hereunder,
shall become effective, nor shall any representation herein be deemed to be made, until the satisfaction of such conditions. 

SECTION 9.07. Assignments and Participations. 
 (a) Each Lender may, upon notice to the Borrowers and the Agent and with the consent, not to be unreasonably withheld, of the Agent, and, unless an Event of Default has occurred and is continuing, the
Borrowers, assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, the Advances and other amounts owing to it and any Note or Notes held by it);
provided, however, that (i) no assignment may be made by an Extending Lender to a Non-Extending Lender unless such Non-Extending Lender shall agree to become an Extending Lender for purposes of the assigned rights and obligations
pursuant to documentation acceptable to the Agent and the Borrowers; (ii) any assignment by a Non-Extending Lender to an Extending Lender shall, without further action, result in the Commitments so assigned being extended to the Extended
Termination Date and otherwise entitle such Lender to the rights and obligations of Commitments of Extending Lenders hereunder (including the applicable fee and interest rates), (iii) each such assignment shall be of a constant, and not a
varying, percentage of all rights and obligations under this Agreement, (iv) except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender, an Affiliate of a Lender or an Approved Fund or an assignment
of all of a Lender’s rights and obligations under this Agreement, the amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance with respect to
such assignment) shall in no event be less than $10,000,000 (unless an Event of Default has occurred and is continuing, in which case not less than $5,000,000) or an integral multiple of $1,000,000 in excess thereof unless the Borrowers and the
Agent otherwise agree, (v) each such assignment shall be to an Eligible Assignee, (vi) the parties to each such assignment shall execute and deliver to the Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance, and the parties to such assignment (other than the Borrowers and the Agent) shall deliver together therewith any Note subject to such assignment and a processing and recordation fee of $3,500 (except no such fee shall be payable for
assignments to a Lender, an Affiliate of a Lender or an Approved Fund), and (vii) any Lender may, without the approval of the Borrowers, but with notice to the Borrowers, assign all or a portion of its rights and obligations to any of its
Affiliates or to another Lender. Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that
rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than its rights under Section 2.12, 2.15 and 9.04 to the extent any claim thereunder relates to an event arising prior such assignment)
and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto). 
 (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder and the
assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the other Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition
of the Loan Parties or the performance or observance by the Borrowers of any of their obligations under this Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, such assigning Lender or any other Lender and 

  
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based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan
Documents; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement and the
other Loan Documents as are delegated to the Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their
terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 
 (c) Upon its
receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to such assignment, the Agent shall, if such Assignment and Acceptance has
been completed and is in substantially the form of Exhibit B hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the
Borrowers. 
 (d) The Agent shall maintain at its address referred to in Section 9.02 a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances and L/C Obligations owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender
hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable prior notice. 

(e) Each Lender may, without the consent of the Agent or any Loan Party, sell participations to one or more banks or other entities
(other than the Borrowers or any of their Affiliates) in or to all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, the Advances owing to it and any Note or Notes held by it);
provided, however, that (i) such Lender’s obligations under this Agreement (including its Commitment to the Borrowers and its obligations to the Swingline Lender and the Issuing Lender hereunder) shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrowers,
the Agent, the Co-Collateral Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any provision of this Agreement or any Loan Document, or consent to any departure by any Borrower therefrom, except to the extent that such amendment, waiver or consent would
require the affirmative vote of the Lender from which it purchased its participation pursuant to Section 9.01(a). 
 (f)
Any Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.07, disclose to the assignee or participant or proposed assignee or participant, any information relating to
Holdings, the Borrowers or their Subsidiaries furnished to such Lender by or on behalf of the Borrowers; provided that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Borrower Information relating to Holdings, the Borrowers or their Subsidiaries received by it from such Lender in accordance with Section 9.08. 
 (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including the Advances
owing to it and any Notes held by it), including, without limitation, in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 

(h) The Borrowers, upon receipt of written notice from the relevant Lender, agree to issue Notes to any Lender to facilitate transactions
of the type described in paragraph (g) above. 
 (i) Neither Holdings nor any Borrower shall have the right to assign its
rights hereunder or any interest herein without the prior written consent of each of the Lenders (except, in the case of SRAC, pursuant to Section 6.01(d)). 

  
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 SECTION 9.08.
Confidentiality. Neither the Agent, any Co-Collateral Agent nor any Lender may disclose to any Person any confidential, proprietary or non-public information of Holdings or the Borrowers furnished to the Agent or the Lenders by Holdings or
the Borrowers (such information being referred to collectively herein as the “Borrower Information”), except that each of the Agent, each of the Co-Collateral Agents and each of the Lenders may disclose Borrower Information
(i) to its and its Affiliates’ employees, officers, directors, agents and advisors to whom disclosure is required to enable the Agent, the Co-Collateral Agents or such Lender to perform its obligations under this Agreement and the other
Loan Documents or in connection with the administration or monitoring of this Agreement and the other Loan Documents by the Agent, the Co-Collateral Agents or such Lender (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Borrower Information and instructed to keep such Borrower Information confidential on substantially the same terms as provided herein), (ii) to the extent requested by any regulatory authority,
(iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement and the other Loan Documents, (v) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement and the other Loan Documents or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this
Section 9.08, to any assignee or participant, or any prospective assignee or participant, (vii) to the extent such Borrower Information (A) is or becomes generally available to the public on a non-confidential basis other than as a
result of a breach of this Section 9.08 by the Agent, any Co-Collateral Agent or such Lender, as the case may be, or (B) is or becomes available to the Agent, any Co-Collateral Agent or such Lender on a non-confidential basis from a source
other than Holdings, the Borrowers or any of their Subsidiaries and (viii) with the consent of the Borrowers. 
 SECTION
9.09. Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflicts of laws principles thereof. 

SECTION 9.10. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 9.11.
Jurisdiction, Etc. 
 (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. Holdings and each of the Borrowers hereby irrevocably consents to the service of process in any action or proceeding in such
courts by the mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to Holdings or such Borrower at its address specified pursuant to Section 9.02. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement or the other Loan Documents in the courts of any jurisdiction. 
 (b) Each of
the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or the other Loan Documents in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court. 
 SECTION 9.12. WAIVER OF JURY TRIAL. EACH OF HOLDINGS, THE BORROWERS,
THE AGENT, THE CO-COLLATERAL AGENTS, THE ISSUING LENDER AND THE LENDERS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR 

  
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COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE ACTIONS OF THE AGENT, THE CO-COLLATERAL AGENTS OR ANY
LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 SECTION 9.13. Release of Collateral or
Guarantee Obligation. 
 (a) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
Co-Collateral Agents are hereby irrevocably authorized by each Lender (without requirement of consent of or notice to any Lender) to take, and hereby agree to take, any action requested by the Borrowers having the effect of releasing any Collateral
or guarantee obligations (i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document (including, without limitation, any Permitted Disposition) or that has been consented to in accordance with
Section 9.01 or (ii) under the circumstances described in paragraph (b) below. 
 (b) At such time as the
Advances, the Reimbursement Obligations and all other Obligations shall have been paid in full in cash, the Commitments have been terminated and no Letters of Credit shall be outstanding (or any outstanding Letters of Credit shall have been cash
collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the Issuing
Lender have been provided in respect of such Letters of Credit), the Collateral shall be released from the Liens created by the Security Documents, and the Security Documents and all obligations (other than those expressly stated to survive such
termination) of the Co-Collateral Agents and each Loan Party under the Security Documents shall terminate, all without delivery of any instrument or performance of any act by any Person. 

SECTION 9.14. USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Agent (for itself
and not on behalf of any Lender) hereby notifies each Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies each Borrower, which information includes the name and address of such Borrower and other information that will allow such Lender or the Agent, as applicable, to identify such Borrower in accordance with the Act.
Each Borrower hereby agrees to provide such information promptly upon the request of any Lender or the Agent. 
 SECTION 9.15.
Integration. 
 This Agreement and the other Loan Documents represent the agreement of Holdings, the Borrowers, the Agent,
the Co-Collateral Agents and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Agent, any Co-Collateral Agent or any Lender relative to subject matter
hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents. 
 SECTION 9.16. Replacement
of Lenders 
 If any Lender requests compensation under Section 2.12 or if the Borrowers are required to pay any
additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.15, if any Lender does not consent (a “Non-Consenting Lender”) to a proposed amendment, waiver, consent or
release with respect to any Loan Document that requires the consent of each Lender and that has been approved by the Required Lenders or any Lender is a Defaulting Lender or Deteriorating Lender, then the Borrowers may, at their sole expense and
effort, upon notice to such Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 9.07), all of its
interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 

(a) the Borrowers shall have paid to the Agent the assignment fee specified in Section 9.07; 

  
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 (b)
such Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts); 
 (c) in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will
result in a reduction in such compensation or payments thereafter; 
 (d) with respect to the replacement of any
Non-Consenting Lender, such amendment, waiver or consent can be effected as a result of such assignment (together with all other assignments required by the Agent to be made pursuant to this paragraph); and 

(d) such assignment does not conflict with applicable Laws. 

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 
 SECTION 9.17.
No Advisory or Fiduciary Capacity. 
 In connection with all aspects of each transaction contemplated hereby, the Loan
Parties each acknowledge and agree that: (i) the credit facility provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of
any other Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the Credit Parties, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and understands
and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such
transaction, the each Credit Party is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Loan Parties or any of their respective Affiliates, stockholders, creditors or employees or any other
Person; (iii) none of the Credit Parties has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Loan Parties with respect to any of the transactions contemplated hereby or the process leading thereto,
including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether any of the Credit Parties has advised or is currently advising any Loan Party or any of its Affiliates on other
matters) and none of the Credit Parties has any obligation to any Loan Party or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents;
(iv) the Credit Parties and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Loan Parties and their respective Affiliates, and none of the Credit Parties has any
obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Credit Parties have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and each of the Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate. Each of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against each of the Credit Parties with respect to any breach or alleged breach of agency or fiduciary duty.

 SECTION 9.18. Existing Credit Agreement Amended and Restated. Upon satisfaction of the conditions precedent to the
effectiveness of this Agreement, (a) this Agreement shall amend and restate the Existing Credit Agreement in its entirety, (b) the rights and obligations of the parties under the Existing Credit Agreement shall be subsumed within and be
governed by this Agreement; provided, however, that Holdings and the Borrowers hereby agree that (i) each Existing Letter of Credit outstanding under the Existing Credit Agreement on the Effective Date shall be a Letter of Credit hereunder, and
(ii) all obligations and other liabilities of the Loan Parties under the Existing Credit Agreement shall remain outstanding, shall constitute continuing Obligations secured by the Collateral, and this Agreement shall not be deemed to evidence
or result in a novation or repayment and reborrowing of such obligations and other liabilities. 

  
 85 

  
 [Remainder of page
intentionally left blank] 

  
 86 

  
 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 

 

			
	 SEARS HOLDINGS CORPORATION

		
	By:	 	 /s/ William C. Crowley

	Name:	 	William C. Crowley
	Title:	 	Executive Vice President and Chief Administrative Officer
	
	SEARS ROEBUCK ACCEPTANCE CORP.
		
	By:	 	 /s/ Karen M. Smathers

	Name:	 	Karen M. Smathers
	Title:	 	President
	
	KMART CORPORATION
		
	By:	 	 /s/ William R. Harker

	Name:	 	William R. Harker
	Title:	 	Senior Vice President, Talent and Human Capital
		 	Services and General Counsel

Signature Page to Amended and Restated Credit Agreement 

  
 
			
	BANK OF AMERICA, N.A.,
	as Agent, a Co-Collateral Agent, a Lender, Swingline Lender and an Issuing Lender
		
	By:	 	 /s/ Stephen J. Garvin

	Name:	 	Stephen J. Garvin
	Title:	 	Managing Director
	
	 WELLS FARGO RETAIL FINANCE, LLC,
 as a Co-Collateral Agent, Co-Syndication Agent and a Lender

		
	By:	 	 /s/ William Chan

	Name:	 	William Chan
	Title:	 	Vice President
	
	 GENERAL ELECTRIC CAPITAL CORPORATION.
 as a Co-Collateral Agent, Co-Syndication Agent and a Lender

		
	By:	 	 /s/ Kristina M. Miller

	Name:	 	Kristina M. Miller
	Title:	 	Duly Authorized Signatory
	
	 JPMORGAN CHASE BANK, N.A.,
 as Original Agent, a Co-Documentation Agent and a Lender

		
	By:	 	 /s/ Barry Bergman

	Name:	 	Barry Bergman
	Title:	 	Managing Director
	
	 BARCLAYS BANK PLC,

as a Co-Documentation Agent and as a Lender

		
	By:	 	 /s/ Diane Rolfe

	Name:	 	Diane Rolfe
	Title:	 	Director
	
	 WELLS FARGO BANK, N.A.,
 as an Issuing Lender

		
	By:	 	 /s/ William Chan

	Name:	 	William Chan
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

  
 
			
	ALLIED IRISH BANKS, P.L.C.*,
	as a Lender
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 AURORA BANK FSB (FORMERLY KNOWN AS
 LEHMAN BROTHERS BANK, FSB),
 as a Lender

		
	By:	 	 /s/ Lana Franks

	Name:	 	Lana Franks
	Title:	 	Managing Director
	
	 BANCO POPULAR DE PUERTO RICO,
 as a Lender

		
	By:	 	 /s/ Hector J. Gonzalez

	Name:	 	Hector J. Gonzalez
	Title:	 	Vice President
	
	 BANK HAPOALIM B.M. *,
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 BANK OF MONTREAL,

as a Lender

		
	By:	 	 /s/ Craig Thistlethwaite

	Name:	 	Craig Thistlethwaite
	Title:	 	Director
	
	 THE BANK OF NEW YORK MELLON *,
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	THE BANK OF NOVA SCOTIA,
	as a Lender
		
	By:	 	 /s/ Michelle C. Phillips

	Name:	 	Michelle C. Phillips
	Title:	 	Director
	
	 BANK OF OKLAHOMA, N.A.,
 as a Lender

		
	By:	 	 /s/ Jessica Johnson

	Name:	 	Jessica Johnson
	Title:	 	Commercial Lending Officer
	
	 BNP PARIBAS,
 as a
Lender

		
	By:	 	 /s/ Andy Strait

	Name:	 	Andy Strait
	Title:	 	Managing Director
		
	By:	 	 /s/ Curt Price

	Name:	 	Curt Price
	Title:	 	Managing Director
	
	 BMO CAPITAL MARKETS CORP.,
 as a Lender

		
	By:	 	 /s/ Peter Hinman

	Name:	 	Peter Hinman
	Title:	 	Chief Operating Officer
	
	 BRANCH BANKING AND TRUST COMPANY,*
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	CAPITAL ONE LEVERAGE FINANCE CORP.,
	as a Lender
		
	By:	 	 /s/ Paul Dellova

	Name:	 	Paul Dellova
	Title:	 	Senior Vice President
	
	 CAPITALSOURCE BANK,

as a Lender

		
	By:	 	 /s/ Robert M. Dailey

	Name:	 	Robert M. Dailey
	Title:	 	Banking Officer
	
	 CHANG HWA COMMERCIAL BANK, LTD.,
 NEW YORK BRANCH,
 as a Lender

		
	By:	 	 /s/ Jim C.Y. Chen

	Name:	 	Jim C.Y. Chen
	Title:	 	Vice President and General Manager
	
	CHINATRUST COMMERCIAL BANK, NEW YORK
BRANCH,* as a Lender
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 CIBC INC.,
 as a
Lender

		
	By:	 	 /s/ Dominic J. Sorresso

	Name:	 	Dominic J. Sorresso
	Title:	 	Executive Director
	
	CIBC World Markets Corp.
	Authorized Signatory
	
	 CIT BANK,
 as a
Lender

		
	By:	 	 /s/ Benjamin Haslam

	Name:	 	Benjamin Haslam
	Title:	 	Authorized Signatory

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	CITIBANK, N.A.,
	as a Lender
		
	By:	 	 /s/ Robert J. Kane

	Name:	 	Robert J. Kane
	Title:	 	Managing Director
	
	 COLE TAYLOR BANK,

as a Lender

		
	By:	 	 /s/ Kavian Boots

	Name:	 	Kavian Boots
	Title:	 	Managing Director
	
	 COMMERZBANK AG, NEW YORK BRANCH,*
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
 as a Lender

		
	By:	 	 /s/ Rianka Mohan

	Name:	 	Rianka Mohan
	Title:	 	Vice President
		
	By:	 	 /s/ Christopher Reo Day

	Name:	 	Christopher Reo Day
	Title:	 	Associate
	
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,
 as a Lender

		
	By:	 	 /s/ Enrique Landaeta

	Name:	 	Enrique Landaeta
	Title:	 	Vice President
		
	By:	 	 /s/ Marguerite Sutton

	Name:	 	Marguerite Sutton
	Title:	 	Director

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	 E. SUN COMMERCIAL BANK, LTD., LOS ANGELES BRANCH*,
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 FIFTH THIRD BANK CHICAGO*,
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 FIRST COMMERCIAL BANK, LOS ANGELES BRANCH,
 as a Lender

		
	By:	 	 /s/ Wen-Han Wu

	Name:	 	Wen-Han Wu
	Title:	 	Deputy General Manager
	
	 FIRST HAWAIIAN BANK,

as a Lender

		
	By:	 	 /s/ Dawn Hoffman

	Name:	 	Dawn Hoffman
	Title:	 	Vice President
	
	 FIRST TENNESSEE BANK NATIONAL ASSOCIATION,
 as a Lender

		
	By:	 	 /s/ James H. Moore, Jr.

	Name:	 	James H. Moore, Jr.
	Title:	 	Senior Vice President

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	GOLDMAN SACHS CREDIT PARTNERS, L.P.,
	as a Lender
		
	By:	 	 /s/ Mark Walton

	Name:	 	Mark Walton
	Title:	 	Authorized Signatory
	
	 GMAC COMMERCIAL FINANCE LLC,
 as a Lender

		
	By:	 	 /s/ Michael Malcangi

	Name:	 	Michael Malcangi
	Title:	 	Vice President
	
	 HSBC BANK USA, NATIONAL ASSOCIATION,
 as a Lender

		
	By:	 	 /s/ James P. Kelly

	Name:	 	James P. Kelly
	Title:	 	Managing Director
	
	 IBM CREDIT LLC,
 as
a Lender

		
	By:	 	 /s/ Steven A. Flanagan

	Name:	 	Steven A. Flanagan
	Title:	 	Global Credit Officer
	
	 KEB NY FINANCIAL CORP., *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 KEYBANK NATIONAL ASSOCIATION,
 as a Lender

		
	By:	 	 /s/ Robert Conrad

	Name:	 	Robert Conrad
	Title:	 	Senior Vice President

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	KBC BANK N.V.,
	as a Lender
		
	By:	 	 /s/ Katherine S. McCarthy

	Name:	 	Katherine S. McCarthy
	Title:	 	Director
		
	By:	 	 /s/ Sandra T. Johnson

	Name:	 	Sandra T. Johnson
	Title:	 	Managing Director
	
	 THE KOREA DEVELOPMENT BANK, NEW YORK BRANCH, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 MALAYAN BANKING BERHARD, NEW YORK BRANCH, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. NEW YORK BRANCH, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. SILICON VALLEY BRANCH,
*
 as a Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	MERRILL LYNCH CREDIT PRODUCTS, INC.,
	as a Lender
		
	By:	 	 /s/ Sandra P. Aoton

	Name:	 	Sandra P. Aoton
	Title:	 	Vice President
	
	 MIZUHO CORPORATE BANK, LTD., *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 MORGAN STANLEY BANK, N.A.,
 as a Lender

		
	By:	 	 /s/ Christopher Whelan

	Name:	 	Christopher Whelan
	Title:	 	SCO
	
	 NATIONAL CITY BANK,

as a Lender

		
	By:	 	 /s/ Michael McNeirney

	Name:	 	Michael McNeirney
	Title:	 	Vice President
	
	 THE NORTHERN TRUST COMPANY,
 as a Lender

		
	By:	 	 /s/ Lisa McDermott

	Name:	 	Lisa McDermott
	Title:	 	Vice President
	
	 REGIONS BANK,
 as a
Lender

		
	By:	 	 /s/ Richard A. Gere

	Name:	 	Richard A. Gere
	Title:	 	Attorney-in-Fact

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	THE ROYAL BANK OF CANADA, *
	as a Lender
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 THE ROYAL BANK OF SCOTLAND PLC, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 RZB FINANCE LLC,

as a Lender

		
	By:	 	 /s/ Astrid Noebauer

	Name:	 	Astrid Noebauer
	Title:	 	Group Vice President
		
	By:	 	 /s/ Shirley Ritch

	Name:	 	Shirley Ritch
	Title:	 	Vice President
	
	 UNICREDIT S.P.A. – NEW YORK BRANCH, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 UNION BANK OF CALIFORNIA, N.A.,
 as a Lender

		
	By:	 	 /s/ Michele Scafani

	Name:	 	Michel Scafani
	Title:	 	Vice President

  

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 
			
	 UNITED OVERSEAS BANK LIMITED, NEW YORK AGENCY,
 as a Lender

		
	By:	 	 /s/ George Lim

	Name:	 	George Lim
	Title:	 	Senior Vice President and General Manager
		
	By:	 	 /s/ Mario Sheng

	Name:	 	Mario Sheng
	Title:	 	Assistant Vice President
	
	 UPS CAPITAL CORPORATION.,
 as a Lender

		
	By:	 	 /s/ John P. Holloway

	Name:	 	John P. Holloway
	Title:	 	Director of Portfolio Management
	
	 U.S. BANK NATIONAL ASSOCIATION, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 WEST LB NY, *
 as a
Lender

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

	*	Lenders designated with an asterisk are Non-Extending Lenders. 

 Signature Page to Amended and Restated Credit Agreement 

  
 SCHEDULE IA

 Pricing Grid 
  

									
	 Level
	  	Consolidated
Leverage Ratio	  	Applicable
Margin for
Eurodollar Rate
Advances	 	Applicable
Margin for Base
Rate Advances	 	Commitment
Fee Rate
	 1
	  	3 3.50 to 1.0	  	1.25%	 	0.25%	 	0.25%
	 2
	  	3 3.00 to 1.0 but
 < 3.50 to 1.0
	  	1.00%	 	0%	 	0.20%
	 3
	  	3 1.50 to 1.0 but
 < 3.00 to 1.0
	  	0.875%	 	0%	 	0.175%
	 4
	  	< 1.50 to 1.0	  	0.75%	 	0%	 	0.15%

 Changes in the Applicable Margin and
Commitment Fee Rate resulting from changes in the Consolidated Leverage Ratio shall become effective on the date (the “Adjustment Date”) on which financial statements are delivered to the Lenders pursuant to Section 6.01(j)
(but in any event not later than the 50th day after the end of each of the first three fiscal quarterly periods of each fiscal year or the 95th day after the end of each fiscal year, as the case may be) and shall remain in effect until the next
change to be effected pursuant to this paragraph; provided that until the first Adjustment Date following the Effective Date, the Applicable Margin and Commitment Fee Rate will be those set forth in Level 3. If any financial statements
referred to above are not delivered within the time periods specified above, then, until such financial statements are delivered, the Consolidated Leverage Ratio as at the end of the fiscal period that would have been covered thereby shall for the
purposes of this definition be deemed to be greater than 3.50 to 1.0. 

  
 SCHEDULE IB

 Restated Commitment Fee Grid 
  

					
	 Average Daily

Available Commitments
	  	Extended
Term Commitment 
Fee Rate	 
	 Greater than 50% of the then Aggregate Commitments
	  	 	1.00	% 
	 Less than or equal to 50% of the then Aggregate Commitments
	  	 	0.75	% 

 Changes in the Extended Term Commitment
Fee Rate resulting from changes in the average daily Available Commitments shall become effective on the fifth day of each of the months of April, July, October and January (each a “Fee Adjustment Date”) based upon average daily
Available Commitments for the previous three fiscal month periods and shall remain in effect until the next change to be effected pursuant to this paragraph; provided, that until the first Fee Adjustment Date following the Effective Date, the
Extended Term Commitment Fee Rate will be 1.00% per annum. 

  
 Schedule 1.01 -
Lenders; Commitments 
  

													
	 Lenders
	  	Commitments	 
	 	 	  	 	  	Extending Lenders	 	  	Non-Extending Lenders	 
	 	1	  	  	 Bank of America, N.A.
	  	$	375,000,000	  	  			
	 	2	  	  	 Merrill Lynch Credit Products, Inc.
	  	 	22,230,000	  	  			
	 	3	  	  	 Wells Fargo Retail Finance, LLC
	  	 	400,000,000	  	  			
	 	4	  	  	 General Electric Capital Corporation
	  	 	400,000,000	  	  			
	 	5	  	  	 JPMorgan Chase Bank, N.A.
	  	 	150,000,000	  	  			
	 	6	  	  	 Barclays Bank PLC
	  	 	141,180,000	  	  			
	 	7	  	  	 Bank of Montreal
	  	 	102,310,000	  	  			
	 	8	  	  	 GMAC Commercial Finance LLC
	  	 	100,000,000	  	  			
	 	9	  	  	 Citibank, N.A.
	  	 	100,000,000	  	  			
	 	10	  	  	 Regions Bank
	  	 	100,000,000	  	  			
	 	11	  	  	 Deutsche Bank Trust Company Americas
	  	 	75,000,000	  	  			
	 	12	  	  	 Banco Popular de Puerto Rico
	  	 	50,000,000	  	  			
	 	13	  	  	 Goldman Sachs Credit Partners, L.P.
	  	 	50,000,000	  	  			
	 	14	  	  	 National City Business Credit, Inc.
	  	 	48,750,000	  	  			
	 	15	  	  	 CIT Bank
	  	 	45,000,000	  	  			
	 	16	  	  	 Union Bank of California, N.A.
	  	 	32,500,000	  	  			
	 	17	  	  	 Capital One Leverage Finance Corp.
	  	 	32,500,000	  	  			
	 	18	  	  	 CIBC Inc.
	  	 	32,500,000	  	  			
	 	19	  	  	 The Northern Trust Company
	  	 	32,500,000	  	  			
	 	20	  	  	 UPS Capital Corporation
	  	 	25,000,000	  	  			
	 	21	  	  	 CapitalSource Bank
	  	 	25,000,000	  	  			
	 	22	  	  	 RZB Finance LLC
	  	 	22,750,000	  	  			
	 	23	  	  	 Cole Taylor Bank
	  	 	20,000,000	  	  			
	 	24	  	  	 First Hawaiian Bank
	  	 	16,250,000	  	  			
	 	25	  	  	 KeyBank National Association
	  	 	16,250,000	  	  			
	 	26	  	  	 First Tennessee Bank National Association
	  	 	15,000,000	  	  			
	 	27	  	  	 Bank Of Oklahoma, N.A.
	  	 	6,500,000	  	  			
	 	28	  	  	 Commerzbank AG, New York Branch
	  				  	 	242,000,000	  
	 	29	  	  	 The Royal Bank of Scotland plc
	  				  	 	227,200,000	  
	 	30	  	  	 HSBC Bank USA, National Association
	  				  	 	185,200,000	  
	 	31	  	  	 The Bank of Nova Scotia
	  				  	 	162,400,000	  
	 	32	  	  	 Credit Suisse
	  				  	 	100,400,000	  
	 	33	  	  	 Royal Bank of Canada
	  				  	 	100,000,000	  
	 	34	  	  	 The Bank of New York Mellon
	  				  	 	75,000,000	  
	 	35	  	  	 BNP Paribas
	  				  	 	70,000,000	  
	 	36	  	  	 Morgan Stanley Senior Funding, Inc.
	  				  	 	65,200,000	  
	 	37	  	  	 West LB NY
	  				  	 	50,000,000	  
	 	38	  	  	 Mizuho Corporate Bank, Ltd.
	  				  	 	50,000,000	  
	 	39	  	  	 United Overseas Bank Limited, New York Branch
	  				  	 	40,000,000	  
	 	40	  	  	 UniCredit S.p.A. - New York Branch
	  				  	 	35,000,000	  
	 	41	  	  	 Allied Irish Banks, p.l.c
	  				  	 	30,000,000	  
	 	42	  	  	 U.S. Bank National Association
	  				  	 	25,000,000	  
	 	43	  	  	 Mega International Commercial Bank Co., Ltd. New York Branch
	  				  	 	15,000,000	  
	 	44	  	  	 Mega International Commercial Bank Co., Ltd. Silicon Valley Branch
	  				  	 	10,000,000	  
	 	45	  	  	 KBC Bank N.V.
	  				  	 	25,000,000	  
	 	46	  	  	 Branch Banking and Trust Company
	  				  	 	25,000,000	  
	 	47	  	  	 IBM Credit LLC
	  				  	 	20,000,000	  
	 	48	  	  	 Fifth Third Bank Chicago, a Michigan Banking Corporation
	  				  	 	20,000,000	  
	 	49	  	  	 First Commercial Bank, Los Angeles Branch
	  				  	 	20,000,000	  
	 	50	  	  	 Bank Hapoalim B.M.
	  				  	 	20,000,000	  
	 	51	  	  	 Malayan Banking Berhad, New York Branch
	  				  	 	15,000,000	  
	 	52	  	  	 E.Sun Commercial Bank, Ltd., Los Angeles Branch
	  				  	 	15,000,000	  
	 	53	  	  	 KEB NY Financial Corp.
	  				  	 	10,000,000	  
	 	54	  	  	 The Korea Development Bank, New York Branch
	  				  	 	10,000,000	  
	 	55	  	  	 Chinatrust Commercial Bank, New York Branch
	  				  	 	10,000,000	  
	 	56	  	  	 Chang Hwa Commercial Bank, Ltd., New York Branch
	  				  	 	10,000,000	  
				  	 SUBTOTALS
	  	$	2,436,220,000.00	  	  	$	1,682,400,000.00	  
				  		  	 	 	 	  	 	 	 
				
				  	 TOTAL (Extending Lenders and Non-Extending Lenders)
	  	$	4,118,620,000.00	  	  			
				  		  	 	 	 	  	 	 	 

 Schedule 1.02 – Existing Letters of Credit 

Standby Letters of Credit: 
  

													
	 Beneficiary
	  	 Applicant
	  	Expiration	 	  	Amount	 	  	Issuer
	 [*****]
	  	Sears Holdings Global Sourcing Ltd.	  	 	4/26/2010	  	  	$	1,637,791.78	  	  	Wachovia Bank, N.A.
	 [*****]
	  	Sears Holdings Corporation	  	 	6/23/09	  	  	$	13,568.00	  	  	Wachovia Bank, N.A.
	 [*****]
	  	Kmart Corporation	  	 	8/5/09	  	  	$	12,210,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation	  	 	8/10/09	  	  	$	1,000,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Holdings Management Corporation	  	 	9/12/09	  	  	$	567,100.00	  	  	Wachovia Bank, N.A.
	 [*****]
	  	Sears Roebuck and Co.	  	 	9/19/09	  	  	$	50,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Roebuck and Co.	  	 	9/23/09	  	  	$	1,000,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation	  	 	9/26/09	  	  	$	35,425,030.00	  	  	Bank of America, N.A.
	 [*****]
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	10/10/09	  	  	$	1,250,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation	  	 	10/27/09	  	  	$	2,200,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation	  	 	10/29/09	  	  	$	18,000,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Roebuck and Co.	  	 	12/9/09	  	  	$	4,100,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation, Builders Square, Inc., Huck Fixture Company, Kmart Apparel Service of Des Plaines	  	 	12/19/09	  	  	$	2,700,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	12/20/09	  	  	$	16,000,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Protection Company	  	 	12/31/09	  	  	$	4,000,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Holdings Corporation	  	 	1/7/10	  	  	$	5,260,300.00	  	  	Bank of America, N.A.
	 [*****]
	  	Kmart Corporation	  	 	1/10/10	  	  	$	6,450,000.00	  	  	Wachovia Bank, N.A.
	 [*****]
	  	Kmart Corporation	  	 	1/12/10	  	  	$	89,726,437.00	  	  	Bank of America, N.A.

  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

													
	 Beneficiary
	  	 Applicant
	  	Expiration	 	  	Amount	 	  	Issuer
	 [*****]
	  	Sears Holdings Management Corporation	  	 	1/13/10	  	  	$	658,995.00	  	  	Wachovia Bank, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	1/27/10	  	  	$	1,950,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	4,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	14,600,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	1/28/10	  	  	$	189,193,399.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	7,500,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	2,754,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	300,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	1/28/10	  	  	$	78,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	2,600,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/28/10	  	  	$	1,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Kmart Corporation	  	 	1/28/10	  	  	$	10,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Kmart Corporation	  	 	1/28/10	  	  	$	500,000.00	  	  	Bank of America, N.A.
	 [*****]
	  	Sears Holdings Corporation	  	 	1/28/10	  	  	$	6,125,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Roebuck and Co.	  	 	1/29/10	  	  	$	3,377,264.00	  	  	Bank of America, N.A.

  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

													
	 Beneficiary
	  	 Applicant
	  	Expiration	 	  	Amount	 	  	Issuer
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	1/30/10	  	  	$	16,220,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Roebuck and Co.	  	 	2/1/10	  	  	$	9,500,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	2/2/10	  	  	$	1,280,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Lands’ End, INC.	  	 	2/2/10	  	  	$	1,260,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears, Roebuck and Co.	  	 	2/3/10	  	  	$	4,525,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Kmart Corporation	  	 	2/7/10	  	  	$	9,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Roebuck and Co.	  	 	2/9/10	  	  	$	49,975,000.00	  	  	Wachovia Bank, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	2/9/10	  	  	$	146,409,557.00	  	  	Wachovia Bank, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/20/10	  	  	$	1,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/20/10	  	  	$	4,968,764.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Kmart Corporation	  	 	2/20/10	  	  	$	45,657,676.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/20/10	  	  	$	330,475.28	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/20/10	  	  	$	1,000,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Roebuck and Co.	  	 	2/21/10	  	  	$	88,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Roebuck and Co.	  	 	2/21/10	  	  	$	1,250,000.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Holdings Corporation	  	 	2/21/10	  	  	$	14,763,690.00	  	  	Bank of America, N.A.
	 [*****] 
	  	Sears Reinsurance Company, LTD.	  	 	2/21/10	  	  	$	11,020,902.00	  	  	Bank of America, N.A.
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/21/10	  	  	$	850,000.00	  	  	Bank of America, N.A.

  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

															
	 Beneficiary
	  	 Applicant
	  	Expiration	 	  	Amount	 	  	Issuer	 
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/21/10	  	  	$	400,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/21/10	  	  	$	1,250,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	 Kmart Corporation c/o Sears

Roebuck Acceptance Corp.
	  	 	2/21/10	  	  	$	5,786,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Sears Roebuck and Co.	  	 	2/21/10	  	  	$	32,165,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Sears, Roebuck and Co.	  	 	2/23/10	  	  	$	220,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Lands’ End, Inc.	  	 	2/28/10	  	  	$	2,000,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Lands’ End, Inc.	  	 	2/28/10	  	  	$	2,500,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/1/10	  	  	$	2,864,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/14/10	  	  	$	500,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/14/10	  	  	$	13,938,971.25	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/15/10	  	  	$	14,245,101.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/15/10	  	  	$	1,250,000.00	  	  	 	Bank of America, N.A.	  
	 [*****] 
	  	Kmart Corporation c/o Sears Roebuck Acceptance Corp.	  	 	3/16/10	  	  	$	11,600,000.00	  	  	 	Bank of America, N.A.	  
	 Total—Existing Letters of Credit
	  	 	  	 	 	 	  	$	930,329,229.53	  	  	 	 	 
	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 

  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

  
 SCHEDULE 5.01(n)

 Pension Plan Issues 
 The Pension Benefit Guaranty Corporation (PBGC) is currently performing a premium audit of the prior Kmart Corporation Employee Pension Plan with respect to the plan year that began February 1, 2005.
The Kmart Corporation Employee Pension Plan was merged with and into the prior Sears Pension Plan effective January 30, 2008, which plan was then renamed as the Sears Holdings Pension Plan, also effective January 30, 2008. The audit was
initiated as part of the PBGC’s Premium Compliance Evaluation Program. 

  
 SCHEDULE 5.01(p)

 UCC Filing Jurisdictions 
 UCC-1 Financing Statements or UCC-3 amendments to existing UCC-1 Financing Statements to be filed against the Loan Party specified below with the Secretary of State of the jurisdictions set forth next to
such Loan Party’s name: 
  

			
	 Grantor
	  	 Jurisdiction

		
	 Sears Roebuck Acceptance Corp.
	  	Delaware
		
	 Kmart Corporation
	  	Michigan, Puerto Rico and Guam
		
	 Sears Holdings Corporation
	  	Delaware
		
	 Kmart Holding Corporation
	  	Delaware
		
	 Kmart Management Corporation
	  	Michigan
		
	 KLC, Inc.
	  	Texas
		
	 Kmart Stores of Illinois LLC
	  	Illinois
		
	 Kmart Stores of Texas LLC
	  	Texas
		
	 Kmart of Michigan, Inc.
	  	Michigan
		
	 Kmart of Washington LLC
	  	Washington
		
	 Kmart.com LLC
	  	Delaware
		
	 MyGofer LLC
	  	Delaware
		
	 Sears Brands Management Corporation
	  	Delaware and Puerto Rico
		
	 Sears, Roebuck and Co.
	  	New York, Puerto Rico and Guam
		
	 California Builder Appliances, Inc.
	  	Delaware
		
	 Florida Builder Appliances, Inc.
	  	Delaware
		
	 SOE, Inc.
	  	Delaware
		
	 StarWest, LLC
	  	Delaware
		
	 Lands’ End, Inc.
	  	Delaware
		
	 Private Brands, Ltd.
	  	West Virginia
		
	 Sears Home Improvement Products, Inc.
	  	Pennsylvania
		
	 Sears, Roebuck de Puerto Rico, Inc.
	  	Delaware and Puerto Rico
		
	 Sears Authorized Hometown Stores, LLC
	  	Delaware and Puerto Rico
		
	 Sears Outlet Stores, L.L.C.
	  	Delaware and Puerto Rico
		
	 Sears Holdings Management Corporation
	  	Delaware and Puerto Rico
		
	 Lands’ End Direct Merchants, Inc.
	  	Delaware
		
	 Sears Home Appliance Showrooms, LLC
	  	Delaware

			
		
	 Sears Protection Company
	  	Illinois
		
	 Sears Protection Company (Florida), L.L.C.
	  	Florida
		
	 A&E Home Delivery, LLC
	  	Delaware
		
	 A&E Lawn & Garden, LLC
	  	Delaware
		
	 A&E Signature Service, LLC
	  	Delaware

  
 SCHEDULE 5.01(t)

 Labor Matters 
 Collective Bargaining Agreements 
  

					
	 Loan Party or other Subsidiary
	  	 Union
	  	 Contract Term

	 Sears, Roebuck and Co. (“Sears Roebuck”) – Retail – Seattle, WA
	  	IBT #117	  	6/1/08 - 5/31/11
	 Kmart Corporation – Distribution Center – Manteno, IL
	  	IBT # 705	  	10/14/06 - 5/31/10
	 Kmart Corporation – Distribution Center – Morrisville, PA
	  	UAW # 8275	  	9/30/06 - 9/07/10
	 Kmart Corporation – Distribution Center – Warren, OH
	  	UAW	  	9/1/06 - 8/31/09
	 Sears Roebuck – PRS. – Detroit, MI
	  	IBT #243	  	10/19/08 - 10/18/11
	 Sears Roebuck – MDO – Detroit, MI
	  	IBT #243	  	10/27/08 - 10/26/11
	 Sears Roebuck – PRS. – Toledo, OH
	  	IBEW #1076	  	7/1/08 - 1/31/12
	 Sears Roebuck – PRS – Plantation, FL
	  	IBT #769	  	6/3/07 - 6/03/10
	 Sears Roebuck – Retail – Chicago, IL
	  	IUOE #399	  	7/1/06 - 6/30/09
	 Sears Roebuck – Auto Center – Fairview Heights, IL
	  	UFCW #881	  	3/16/07 - 3/15/09
	 Sears Roebuck – PRS – Belleville, IL
	  	UFCW #881	  	3/16/07 - 3/15/09
	 Sears Roebuck – Retail – Fairview Heights, IL
	  	UFCW #881	  	3/16/07 - 3/15/09
	 Sears Roebuck – Auto Center – Fairview Heights, IL (Back Shop)
	  	IBT #50	  	4/01/09 - 3/31/12
	 Sears Roebuck – Retail – Great Falls, MT
	  	IBT #243	  	8/1/06 - 7/31/09
	 Sears Roebuck – PRS – Akron, OH
	  	IBT #348	  	5/15/08 - 5/14/11
	 Sears Roebuck – PRS – Cleveland, OH
	  	UFCW #880	  	4/27/08 - 5/07/11
	 Sears Roebuck – Retail – Cleveland, OH
	  	IOUE #589	  	11/06/08 - 12/02/11
	 Sears Roebuck – Retail – Wilkes Barre, PA
	  	IBT #401	  	7/1/07 - 6/30/10
	 Sears Roebuck – Retail – Minneapolis, MN
	  	IUOE #70	  	6/1/06 - 5/31/09
	 Sears Roebuck – Retail – Mishawaka, IN
	  	IBT #364	  	5/1/09 - 4/30/12
	 Sears Roebuck – PRS – Norwood (Boston), MA
	  	IBT #25	  	2/1/09 - 1/31/12
	 Sears Roebuck – PRS – Penn-Jersey (Philadelphia), PA
	  	IBT #107	  	7/15/08 - 7/14/11
	 Sears Roebuck – PRS – Hudson Valley (Wharton), NJ
	  	IBT #478	  	12/10/06 - 4/30/10
	 Kmart Corporation – Distribution Center – Chambersburg, PA
	  	UNITE # 196	  	3/10/09 - 3/09/12
	 Kmart Corporation – Distribution Center – Forest Park, GA
	  	UNITE # 26	  	7/1/06 - 6/30/09
	 Kmart Corporation – Distribution Center – Greensboro, NC
	  	UNITE	  	7/28/08 - 7/31/11
	 Kmart Corporation – Distribution Center – Groveport, PA
	  	UNITE # 122	  	7/1/06 - 6/30/09
	 Kmart Corporation – Distribution Center – Mira Loma, CA
	  	UNITE # 512	  	1/13/09 - 1/12/12

					
	 Loan Party or other Subsidiary
	  	 Union
	  	 Contract Term

	 Sears Roebuck – PRS – Northglenn (Denver), CO
	  	IBEW #68	  	5/20/07 - 5/19/10
	 Sears Roebuck – PRS – McMurray (Pittsburgh), PA
	  	USWA Dist. 10	  	1/1/08 - 12/31/10
	 Sears Roebuck – MDO – Sacramento, CA
	  	IBT #150	  	9/1/07 - 9/01/10
	 Sears Roebuck – PRS – St. Louis (Fenton), MO
	  	IBT #688	  	12/1/07 - 11/30/10
	 Sears Logistics Services, Inc. – Kent, WA – DDC
	  	IBT # 174	  	11/1/07 - 10/31/10
	 Sears Logistics Services, Inc. – Kent, WA – MDO
	  	IBT # 117	  	12/3/07 - 12/3/10

 Material Bonus, Restricted
Stock, Stock Option, or Stock Appreciation Plans 
  

	 	1.	Sears Holdings Corporation Umbrella Incentive Program and First Amendment thereto 

 

	 	2.	Sears Holdings Corporation 2009 Annual Incentive Plan 

  

	 	3.	Long-Term Incentive Plans 

  

	 	a.	Sears Holdings Corporation 2007 Executive Long-Term Incentive Plan and First Amendment thereto 

 

	 	b.	Sears Holdings Corporation 2007 DVP Long-Term Incentive Plan 

  

	 	c.	Sears Holdings Corporation 2008 Long-Term Incentive Plan 

  

	 	d.	Sears Holdings Corporation 2009 Long-Term Incentive Plan 

  

	 	4.	Sears Holdings Corporation 2006 Stock Plan and First Amendment thereto 

 Employees of Permitted Holder 
 Holdings’ Executive Vice President and Chief
Administrative Officer, William C. Crowley, and its Senior Vice President and President, Real Estate, Jeffrey Stollenwerck, are employees of the Permitted Holder. 

  
 SCHEDULE 6.01(j)

 Financial and Collateral Reports 
 Reporting Requirements 
  

					
	 A. Within 10 business days after the end of each fiscal months1
	 			
	 1. Borrowing Base Certificate
	 	 	 	 
	 2. Summary Source document of Stock Ledger
	 	 	 	 
	 3. Summary Source document of Sears inventory ineligibles
	 	 	 	 
	 4. Summary Source document of KMart inventory ineligibles
	 	 	 	 
	 5. Memo item of retail sales
	 	 	 	 
	 6. Summary Source document of Home Service Inventory
	 	 	 	 
	 7. Summary Source document showing In-Transit Inventory
	 	 	 	 
	 8. Summary Source document showing Credit Card A/R
	 	 	 	 
	 9. .Summary Source document of Pharmacy A/R
	 	 	 	 
	 10. Summary Source document of Pharmacy A/R ineligibles
	 	 	 	 
	 11. Gift Card Liability Report
	 	 	 	 
	 12. Monthly Store Rent in WA, VA, PA
	 	 	 	 
	 13. Monthly DC Rent
	 	 	 	 
	 14. Report showing PACA/PASA Liability
	 	 	 	 
	 15. Tracking Summary (see schedule)
	 	 	 	 
		
	 B. Within 50 days after the end of the first three fiscal quarters
	 			
	 1. Consolidated Balance Sheet
	 	 	 	 
	 (i) Holdings and its Subsidiaries
	 	 	 	 
	 (ii) Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 2. Consolidated Statement of Income (including cumulative from previous year end)
	 	 	 	 
	 (i) Holdings and its Subsidiaries
	 	 	 	 
	 (ii) Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 3. Consolidated Statement of Cash Flows (including cumulative from previous year end)
	 	 	 	 
	 (i) Holdings and its Subsidiaries
	 	 	 	 
	 (ii) Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 4. Compliance Certificate with Fixed Charge Ratio calculation
	 	 	 	 
		
	 C. Within 60 days after the end of each fiscal year 1.
	 			
	 1. Forecast
	 	 	 	 
		
	 D. Within 95 days of fiscal year end
	 			
	 1. Annual Audited Consolidated Balance Sheet of Holdings and its Subsidiaries
	 	 	 	 
	 2. Annual Consolidated Balance Sheet of Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 3. Annual Audited Consolidated Statement of Income of Holdings and its Subsidiaries
	 	 	 	 
	 4. Annual Consolidated Statement of Income of Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 5. Annual Audited Consolidated Statement of Cash Flows of Holdings and its Subsidiaries
	 	 	 	 
	 6. Annual Consolidated Statement of Cash Flows of Holdings and its domestic Subsidiaries (other than OSH)
	 	 	 	 
	 7. Compliance Certificate with Fixed Charge Ratio calculation
	 	 	 	 

  

 
 1 Upon the occurrence and during the continuance of an Accelerated
Borrowing Base Delivery Event, such Borrowing Base Certificate and supporting information shall be delivered on Friday of each week (or, if Friday is not a Business Day, on the next succeeding Business Day), as of the close of business on the
immediately preceding Saturday. 

  
 SCHEDULE
6.01(m)(i)(B) 
 Blocked Accounts 
  

	
	Bank of New York [*****]
	
	JPMorgan Chase Bank, N.A, [*****]
	
	Bank of America, N.A., [*****]
	
	First Tennessee Bank, N.A., [*****]

  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

  
 SCHEDULE 6.02(d)

 [*****] 
  

	[*****]	Confidential material redacted and filed separately with the Securities and Exchange Commission. 

  
 SCHEDULE
6.02(k)(ii) 
 Loan Party Policy Investments 

 

	•	 	 Direct obligations of the United States government (U.S. Treasury Bills, Notes and Bonds) which are fully guaranteed by same.

  

	•	 	 Direct obligations of federal agencies (“Agencies” are arms of the federal government and their securities are backed by the full faith and
credit of the U.S. government) and government-sponsored entities (“GSEs” are privately owned and publicly chartered organizations which were created by acts of Congress and their securities are not backed by the full faith and credit of
the U.S. government). 

  

	•	 	 Money Market Funds which have a minimum of $5 billion in assets, offer immediate redemption of shares, have a minimum of three years investment
history, and have the highest rating by two of Standard & Poor’s, Moody’s or Fitch. All funds must be 2a7 eligible. 

  

	•	 	 Commercial paper (unsecured or asset backed) issued by any corporation or bank having a maturity of 6 months or less and rated A1/ P1/F1 by two of
S&P, Moody’s or Fitch, respectively, or having a maturity of 3 months or less and rated at least A2/P2/F2 by two of S&P, Moody’s and Fitch, respectively. 

 

	•	 	 Money market investments such as, certificates of deposits, notes or time deposits issued by any domestic commercial bank or a domestic branch of
certain foreign banks having a maturity of 6 months or less that are rated A1 or AA/P1or Aa2/F1 or AA by two of S&P, Moody’s or Fitch, respectively. 

 

	•	 	 Repurchase agreements with domestic financial firms that are rated A/A2/A by two of S&P, Moody’s or Fitch, respectively. Permissible
marketable securities allowed for repurchase or reverse repurchase agreements include any Eligible Investments listed above. Each Repo dealer is limited to $1.0 billion in exposure regardless of the underlying securities.

  
 EXHIBIT A

 Form of Notice of Borrowing 
 NOTICE OF BORROWING 
 Date:
                    ,          
 To: Bank of America, N.A., as Agent 
 Ladies and Gentlemen: 

The undersigned refers to that certain Amended and Restated Credit Agreement dated as of May 21, 2009 (as such may be amended,
modified, supplemented or restated hereafter, the “Credit Agreement”) by, among others, (i) Sears Holdings Corporation, as Holdings, (ii) Kmart Corporation (“Kmart”) and Sears Roebuck Acceptance Corp.
(“SRAC”), as the Borrowers, (iii) the Lenders party thereto, (iv) Bank of America, N.A., as Agent, and (v) Bank of America, N.A., Wells Fargo Retail Finance, LLC and General Electric Capital Corporation, as
Co-Collateral Agents. Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. 
 In accordance with Section 2.02 or Section 2.04 of the Credit Agreement, as appropriate, [Kmart][SRAC]1 hereby irrevocably requests a Borrowing under the Credit Agreement as follows2: 

 

	 	1.	 On                      (a Business Day)3 

 

	 	2.	 In the amount of $                    4 

 

	 	3.	 Comprised of                      (Type of
Advances)5 

 

	1	 Identify Borrower requesting the Borrowing herein. 

	2	 Each Borrowing that consists of Revolving Advances shall be of the same Type made on the same day by the Lenders ratably according to their respective
Commitments. 

	3	 Each notice of a Borrowing that consists of a Revolving Advance must be received by the Agent not later than 12:00 noon (i) on the third Business
Day prior to the date of the proposed Borrowing, in the case of a Borrowing consisting of Eurodollar Rate Advances, and (ii) on the date of the proposed Borrowing, in the case of a Borrowing consisting of Base Rate Advances. Each notice of a
Borrowing that consists of a Swingline Advance must be received by the Agent not later than 1:00 p.m. on the date of such proposed Borrowing. 

	4	 Each Borrowing other than a Borrowing under the Swingline Commitment shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in
excess thereof. Each Borrowing under the Swingline Commitment shall be in an amount equal to $500,000 or a whole multiple of $100,000 in excess thereof. 

  

	 	4.	 For Eurodollar Rate Advances: with an initial Interest Period of              months6 

 

	 	
[Kmart][SRAC]7 hereby represent and warrant as follows: 

  

	 	a.	The representations and warranties made by each Loan Party in or pursuant to the Loan Documents are true and correct in all material respects on and as of the date of
the Borrowing requested herein, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent that (i) such representations or warranties are
qualified by a materiality standard, in which case they are true and correct in all respects, (ii) such representations or warranties expressly relate to an earlier date (in which case such representations and warranties are true and correct in
all material respects as of such earlier date), and (iii) such representations relate to Section 5.01(f) of the Credit Agreement, in which case the representation is limited to clause (c) of the definition of “Material Adverse
Effect”; 

  

	 	b.	No event has occurred and is continuing, or would result from the Borrowing requested herein or from the application of the proceeds therefrom, that constitutes a
Default or an Event of Default; 

  

	 	c.	After giving effect to the Borrowing requested herein, the Total Extensions of Credit will not exceed the Line Cap; 

 

	 	d.	After giving effect to the Borrowing requested herein, Uncapped Excess Availability exceeds the lesser of (i) 10% of the Borrowing Base (without giving effect to
clause (d) thereof), and (ii) $500,000,000; and 

  

	 	e.	 [Pro Forma Uncapped Excess Availability shall be no less than 25% of the Borrowing Base.][No Debt described in Section 6.02(a)(vi) of the Credit
Agreement is outstanding.]8 

[remainder of page intentionally blank] 

 

	5	 Revolving Advances may be either Base Rate Advances or Eurodollar Rate Advances. Also specify whether the Borrowing is a Revolving Advance or a
Swingline Advance. No Swingline Advance may be a Eurodollar Rate Advance. 

	6	 The undersigned Borrower may request a Borrowing of Eurodollar Rate Advances with an Interest Period of one, two or three months, provided that
(x) prior to the Termination Date, the Eurodollar Rate Advances may not be outstanding as part of more than seven separate Borrowings for Extending Lenders or more than seven separate Borrowings for Non-Extending Lenders, and (y) after the
Termination Date until the Extended Termination Date, the Eurodollar Rate Advances may not be outstanding as part of more than ten separate Borrowings. 

	7	 Identify Borrower requesting the Borrowing herein. 

	8	 Select one of the two bracketed sentences as appropriate. 

  
 Very
truly yours, 
  

			
	[KMART CORPORATION][SEARS ROEBUCK ACCEPTANCE CORPORATION], as a Borrower
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 
  
  

 
 Signature Page to Notice of Borrowing 

  
 EXHIBIT B

 ASSIGNMENT AND ACCEPTANCE 

This Assignment and Acceptance (this “Assignment and Acceptance”) is dated as of the Effective Date
set forth below and is entered into by and between [the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that
the rights and obligations of [the Assignors][the
Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined herein shall have the meanings
given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [each, the] Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this Assignment and Acceptance as if set forth herein in full. 
 For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from
[the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Agent as contemplated below (i) the portion of [the
Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto (including,
without limitation, participations in L/C Obligations and Swingline Advances included in such facilities5) identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the
respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively

  

	1	 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first
bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language. 

	2	 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first
bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language. 

	3	 Select as appropriate. 

	4	 Include bracketed language if there are either multiple Assignors or multiple Assignees. 

	5	 Include all applicable subfacilities, if any. 

 
as [the][an] “Assigned Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Acceptance,
without representation or warranty by [the][any] Assignor. 
  

			
	 1.    Assignor[s]:
	 	 
		
		 	 
		
	 2.    Assignee[s]:
	 	 
		
		 	 

  

	 	3.	Borrowers: Sears Roebuck Acceptance Corp., a Delaware corporation, and Kmart Corporation, a Michigan corporation. 

 

	 	4.	Agent: Bank of America, N.A., as the Agent under the Credit Agreement. 

 

	 	5.	Credit Agreement: Amended and Restated Credit Agreement dated as of May 21, 2009 (as such may be amended, modified, supplemented or restated hereafter, the
“Credit Agreement”) by, among others, Sears Holdings Corporation, the Borrowers, the Lenders party thereto, Bank of America, N.A., as Agent, and Bank of America, N.A., Wells Fargo Retail Finance, LLC and General Electric Capital
Corporation, as Co-Collateral Agents. 

  

	 	6.	Assigned Interest[s]: 

  

																	
	 Assignor[s]6
	  	Assignee[s]7	 	  	Aggregate
Amount
of
Commitment/
Advances
for all Lenders8	 	  	Amount of
Commitment/
Advances
Assigned9	 	  	Percentage
Assigned of
Commitment/
Advances10	 
		  				  	$	            	  	  	$	            	  	  	 	            	% 
		  				  	 	 	 	  	 	 	 	  	 	 	 
		  				  	$	            	  	  	$	            	  	  	 	            	% 
		  				  	 	 	 	  	 	 	 	  	 	 	 

  

					
			
	 [7.    Trade Date:
	 	 	 	]11

  

 

	6	 List each Assignor, as appropriate. 

	7	 List each Assignee, as appropriate. 

	8	 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments
made between the Trade Date and the Effective Date. 

	9	 Subject to minimum amount requirements pursuant to Section 9.07(a) of the Credit Agreement. 

	10	 Set forth, to at least 4 decimals, as a percentage of the Commitment/Advances of all Lenders thereunder. 

	11	 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

  
 Effective Date:
                    , 20     [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE DATE OF DELIVERY OF THIS ASSIGNMENT AND ACCEPTANCE
FOR RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
 The terms set forth in this Assignment and Acceptance are hereby
agreed to: 
  

			
	 ASSIGNOR
 [NAME OF
ASSIGNOR]

		
	By:	 	 
	Name:  	 	 
	Title:	 	 

  

 

			
	 ASSIGNEE
 [NAME OF
ASSIGNEE]

		
	By:	 	 
	Name:  	 	 
	Title:	 	 

  

			
	 [Consented to and]12 Accepted:
  

BANK OF AMERICA, N.A., as Agent

		
	By:	 	 
	Name:  	 	 
	Title:	 	 

  

 

	12	 To the extent that the Agent’s consent is required under Section 9.07(a) of the Credit Agreement. 

  

			
	 [Consented to:]13
  

SEARS ROEBUCK ACCEPTANCE CORP., as a Borrower

		
	By:	 	 
	Name:  	 	 
	Title:	 	 

  

			
	KMART CORPORATION, as a Borrower
		
	By:	 	 
	Name:  	 	 
	Title:	 	 

  

 

	13	 To the extent required under Section 9.07(a) of the Credit Agreement. 

  
 ANNEX 1 TO
ASSIGNMENT AND ACCEPTANCE 
 STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ACCEPTANCE 
 1. Representations and Warranties. 
 1.1. Assignor. [The][Each]
Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to
(i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of the Loan Parties or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Loan Parties or any other Person of any of
their respective obligations under any Loan Document. 
 1.2. Assignee. [The][Each] Assignee (a) represents and
warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all the requirements to be an Eligible Assignee under the Credit Agreement (subject to such consents, if any, as may be required under Section 9.07(a) of the Credit Agreement), (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with
respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of
such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.01(j) thereof, as applicable,
and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase [the][such] Assigned Interest, (vi) it has, independently and without
reliance upon the Agent, any Co-Collateral Agent, or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase
[the][such] Assigned Interest, and (vii) if it is a Lender that is organized under the laws of a jurisdiction other than that in which the Borrowers are residents for tax purposes, to the extent reasonably requested by the Agent, attached
hereto are duly completed and executed by [the][such] Assignee, any U.S. Internal Revenue Services forms required under Section 2.15 of the Credit Agreement; and (b) agrees that (i) it will, independently and without reliance upon the
Agent, any Co-Collateral Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the 

 
obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 
 2. Payments. From and after the Effective Date, the Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to
[the][the relevant] Assignor for amounts which have accrued up to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date. 

3. General Provisions. This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties hereto and
their respective successors and assigns. This Assignment and Acceptance may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Acceptance by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. This agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 

4. Fees. This Assignment and Acceptance shall be delivered to the Agent with a processing and recordation fee of $3,500, to the
extent required by the terms of the Credit Agreement, unless such fee has been waived by the Agent in its sole discretion. 

  
 EXHIBIT C

  

																	
	 Sears Holdings Corporation

Borrowing Base Certificate
 As of                         
	  	Sears	 	 	Orchard Supply	 	 	Kmart	 	 	Date:                 
   
Consolidated	 
	 Inventory per Stock Ledger
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Home Services
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Total Stock Ledger Inventory
	  				 				 				 	$	—  	  
	 Less Ineligible Inventory:
	  				 				 				 			
	 Orchard Supply Hardware
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Consigned Inventory
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Inventory in Foreign Location
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Store Closure Sale inventory in excess of four weeks
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Inventory paid for in advance of shipment
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Live Plants, nursery, floral
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Candy
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Seafood
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Restaurant
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Readers Market
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Wholesaler Frt/Fees
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Gasoline
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Digital imaging, photo, and 1 hour lab (3rd party licensed business)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 50% Home Services
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Other
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Eligible Inventory Before Reserves
	  				 				 				 			
	 Less Inventory Reserves:
	  				 				 				 			
	 Shrink (Additional 0.5% of Retail Sales)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 In-Transit Reserve
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Total Imported In-Transit Inventory
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 % Relating to SRAC L/C’s
	  	 	0	% 	 				 	 	0	% 	 			
		  	 	 	 	 				 	 	 	 	 			
	 SRAC L/C’s
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Add: SRAC L/C’s (net of 25% reserve)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Net Eligible Inventory
	  				 				 				 	$	—  	  
	 NOLV
	  				 				 				 			
	 Advance Rate (Lesser of 70% or 80% of NOLV)
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Inventory Availability
	  	 	 	 	 	 	 	 	 	 	 	 	 	$	—  	  
	 Eligible Credit Card Receivables
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Advance Rate
	  	 	 	 	 	 	85	% 	 	 	 	 	 	 	 	 
	 Credit Card Availability
	  	 	 	 	 	 	 	 	 	 	 	 	 	$	—  	  
	 Pharmacy Accounts Receivable
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Less Ineligibles:
	  				 				 				 			
	 Outstanding for more than 90 days past invoice date or 60 days past due
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Cross-Age
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Disputed Pharmacy Receivables
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Medicare, Medicaid, or other Governmental Authorities
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Receivables from Third Party Payor not authorized to conduct business in U.S.
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Other
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Net Eligible Pharmacy Accounts Receivable
	  				 				 				 	 	—  	  
	 Advance Rate
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Third Party Pharmacy Accounts Receivable Availability
	  	 	 	 	 	 	 	 	 	 	 	 	 	$	—  	  
	 Availability Reserves
	  				 				 				 			
	 Gift Card Liability (100%)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 2 Months Store Rent Reserve (Landlord Lien States WA, VA, PA)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 DC Rent Reserve (2 months)
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 PACA/PASA
	  	$	—  	  	 				 	$	—  	  	 	$	—  	  
	 Credit Card Receivables owed to PR (max of 1% of total CC A/R)
	  	$	—  	  	 	 	 	 	 	$	—  	  	 	$	—  	  
	 Borrowing Base
	  	 	 	 	 	 	 	 	 	 	 	 	 	$	—  	  

 Page 1 of 2 

 EXHIBIT D 
 EXECUTION COPY 
  
  

 
 AMENDED AND RESTATED GUARANTEE
AND COLLATERAL AGREEMENT  
 among 
 SEARS HOLDINGS CORPORATION, 
 SEARS, ROEBUCK AND CO., 

SEARS ROEBUCK ACCEPTANCE CORP., 
 KMART HOLDING CORPORATION, 
 KMART MANAGEMENT CORPORATION, 

KMART CORPORATION 
 and certain of their respective Subsidiaries, 
 as Grantors

 and  
 BANK OF AMERICA, N.A. 
 WELLS FARGO RETAIL FINANCE, LLC  

and  

GENERAL ELECTRIC CAPITAL CORPORATION, 
 as Co-Collateral Agents 
 Dated as of May 21, 2009 

 
  

 

  
 TABLE OF CONTENTS

  

							
	 	  	 	  	Page	 
	 SECTION 1.
	  	DEFINED TERMS	  	 	2	  
	 1.1
	  	Definitions	  	 	2	  
	 1.2
	  	Other Definitional Provisions	  	 	4	  
			
	 SECTION 2.
	  	GUARANTEE	  	 	5	  
	 2.1
	  	Guarantee	  	 	5	  
	 2.2
	  	Right of Contribution	  	 	5	  
	 2.3
	  	No Subrogation	  	 	6	  
	 2.4
	  	Amendments, etc. with respect to the Borrower Obligations	  	 	6	  
	 2.5
	  	Guarantee Absolute and Unconditional	  	 	7	  
	 2.6
	  	Reinstatement	  	 	8	  
	 2.7
	  	Payments	  	 	8	  
			
	 SECTION 3.
	  	GRANT OF SECURITY INTEREST	  	 	8	  
	 3.1
	  	Collateral; Grant of Security Interest	  	 	8	  
			
	 SECTION 4.
	  	REPRESENTATIONS AND WARRANTIES	  	 	9	  
	 4.1
	  	Title; No Other Liens	  	 	9	  
	 4.2
	  	Perfected First Priority Liens	  	 	9	  
	 4.3
	  	Jurisdiction of Organization	  	 	10	  
	 4.4
	  	Credit Card Accounts Receivable	  	 	10	  
	 4.5
	  	Related Intellectual Property	  	 	10	  
			
	 SECTION 5.
	  	COVENANTS	  	 	12	  
	 5.1
	  	Delivery of Instruments and Chattel Paper	  	 	12	  
	 5.2
	  	Maintenance of Insurance	  	 	12	  
	 5.3
	  	Maintenance of Perfected Security Interest; Further Documentation	  	 	12	  
	 5.4
	  	Changes in Name, etc.	  	 	13	  
			
	 SECTION 6.
	  	REMEDIAL PROVISIONS	  	 	13	  
	 6.1
	  	Certain Matters Relating to Credit Card Accounts Receivable	  	 	13	  
	 6.2
	  	Communications with Obligors; Grantors Remain Liable	  	 	13	  
	 6.3
	  	Proceeds to be Turned Over To Agent	  	 	14	  
	 6.4
	  	Application of Proceeds	  	 	14	  
	 6.5
	  	Code and Other Remedies	  	 	15	  
	 6.6
	  	Deficiency	  	 	17	  
	 6.7
	  	Grant of License in Intellectual Property, Software	  	 	17	  
			
	 SECTION 7.
	  	THE AGENT	  	 	18	  
	 7.1
	  	Agent’s Appointment as Attorney-in-Fact, etc.	  	 	18	  
	 7.2
	  	Duty of Agent	  	 	20	  
	 7.3
	  	Execution of Financing Statements	  	 	20	  
	 7.4
	  	Authority of Agent	  	 	20	  
			
	 SECTION 8.
	  	MISCELLANEOUS	  	 	21	  
	 8.1
	  	Amendments in Writing	  	 	21	  

  
 -i-

							
	 	  	 	  	Page	 
	 8.2
	  	Notices	  	 	21	  
	 8.3
	  	No Waiver by Course of Conduct; Cumulative Remedies	  	 	21	  
	 8.4
	  	Enforcement Expenses; Indemnification	  	 	21	  
	 8.5
	  	Successors and Assigns	  	 	22	  
	 8.6
	  	Set-Off	  	 	22	  
	 8.7
	  	Counterparts	  	 	23	  
	 8.8
	  	Severability	  	 	23	  
	 8.9
	  	Section Headings	  	 	23	  
	 8.10
	  	Integration	  	 	23	  
	 8.11
	  	GOVERNING LAW	  	 	23	  
	 8.12
	  	Submission To Jurisdiction; Waivers	  	 	23	  
	 8.13
	  	Acknowledgements	  	 	23	  
	 8.14
	  	Additional Grantors	  	 	23	  
	 8.15
	  	Releases	  	 	24	  
	 8.16
	  	WAIVER OF JURY TRIAL	  	 	25	  

 SCHEDULES 

 

			
	Schedule 1	  	Grantors; Notice Addresses
	Schedule 2	  	Perfection Matters
	Schedule 3	  	Jurisdictions of Organization
	Schedule 4.6	  	Bailees, Warehousemen, Etc.

  
 -ii-

  
 AMENDED AND RESTATED
GUARANTEE AND COLLATERAL AGREEMENT 
 AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of May 21,
2009, among (a) each of the entities listed on Schedule 1 hereto (together with any other entity that may become a party hereto as provided herein, the “Grantors”), and (b) Bank of America, N.A., Wells Fargo Retail
Finance, LLC and General Electric Capital Corporation, as co-collateral agents (collectively in such capacity, the “Co-Collateral Agents”). 
 W I T N E S S E T H: 
 WHEREAS, Sears Holdings Corporation, a Delaware corporation (“Holdings”), Sears Roebuck Acceptance Corp., a Delaware corporation (“SRAC”), Kmart Corporation, a Michigan
corporation (“Kmart Corp.” and together with SRAC, the “Borrowers”), the banks, financial institutions and other parties thereto as “Lenders” (the “Lenders”), Citicorp USA, Inc. and Bank
of America, N.A., as syndication agents, Barclays Bank PLC, Lehman Commercial Paper Inc., HSBC Bank USA, Merrill Lynch Bank USA, Morgan Stanley Senior Funding, Inc., The Royal Bank of Scotland, PLC and Wachovia Bank National Association, as
documentation agents, J.P. Morgan Securities Inc., Citigroup Global Marketers Inc., and Banc of America Securities LLC, as lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., as administrative agent, are party to that certain
U.S.$4,000,000,000 Five-Year Credit Agreement, dated as of February 22, 2005 (as amended, supplemented or otherwise modified from time to time, the “Existing Credit Agreement”); 

WHEREAS, pursuant to the Credit Agreement (as defined below), the Lenders have severally agreed to make extensions of credit to the
Borrowers upon the terms and subject to the conditions set forth therein; 
 WHEREAS, the Borrowers are members of an affiliated
group of companies that includes each other Grantor; 
 WHEREAS, the proceeds of the extensions of credit under the Credit
Agreement will be used in part to enable the Borrowers to make valuable transfers to one or more of the other Grantors in connection with the operation of their respective businesses; 

WHEREAS, the Borrowers and the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and
indirect benefit from the making of the extensions of credit under the Credit Agreement; 
 WHEREAS, it was a condition
precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrowers under the Existing Credit Agreement that the Grantors shall have executed and delivered that certain Guarantee and Collateral Agreement dated
March 24, 2005 (the “Existing Guarantee and Collateral Agreement”), to the Agent for the ratable benefit of the Lenders; 
 WHEREAS, Holdings, the Borrowers, the Required Lenders (under and as defined in the Existing Credit Agreement), the Agent and the Co-Collateral Agents, desire to amend and restate the Existing Credit
Agreement in its entirety pursuant to the terms of a certain Amended and Restated Credit Agreement, dated as of the date hereof (the “Credit Agreement”); and 
 WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement that the Grantors execute and deliver this Agreement. 

  
 1 

  
 NOW, THEREFORE, in
consideration of the premises and to induce the Co-Collateral Agents and the other Credit Parties, party thereto, to enter into the Credit Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the
undersigned hereby agree that the Existing Guarantee and Collateral Agreement shall be amended and restated, without novation, in its entirety to read as follows: 
 SECTION 1. DEFINED TERMS 
 1.1 Definitions. (a) Unless otherwise
defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms are used herein as defined in the New York UCC: Account Debtor, Accounts, Chattel Paper,
Control, Deposit Account, Documents, Equipment, Fixtures, General Intangibles, Goods, Instruments, Proceeds and Supporting Obligations. 
 (b) The following terms shall have the following meanings: 

“Agreement”: this Amended and Restated Guarantee and Collateral Agreement, as the same may be amended, supplemented or
otherwise modified from time to time. 
 “Borrower Obligations”: with respect to any Borrower, the collective
reference to the unpaid principal of and interest on the Advances and Reimbursement Obligations and all other obligations and liabilities of such Borrower (including, without limitation, interest accruing at the then applicable rate provided in the
Credit Agreement after the maturity of such Borrower’s Advances and Reimbursement Obligations and interest accruing at the then applicable rate provided in the Credit Agreement after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to such Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), to any Credit Party, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement, this Agreement, the other Loan Documents, any Letter of Credit, any Cash Management Service, any
Bank Product or any other document made, delivered or given in connection with any of the foregoing, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel to any Co-Collateral Agent or to any other Credit Party that are required to be paid by such Borrower pursuant to the terms of any of the foregoing agreements, and all interest, reimbursement
obligations, fees, indemnities, costs and expenses accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to such Borrower, whether or not a claim for any such
amounts is allowed in such proceeding). For purposes of Section 2, Borrower Obligations shall be deemed to include any obligation of any Group Member (other than Sears Canada) that is not a Borrower in respect of Cash Management Services and
Bank Products. 
 “Collateral”: as defined in Section 3.1. 

“Control Co-Collateral Agent”: as defined in Section 7.4(b), or any successor thereto appointed after Bank of
America, N.A. has resigned as a Co-Collateral Agent in accordance with the terms of the Credit Agreement. 

“Copyrights”: (i) all copyrights arising under the laws of the United States, any other country or any political
subdivision thereof, whether registered or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, 

  
 2 

 
including, without limitation, all registrations, recordings and applications in the United States Copyright Office and (ii) the right to obtain all renewals thereof. 

“Copyright Licenses”: any written agreement naming any Grantor as licensor or licensee granting any right under any
Copyright, including, without limitation, the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright. 
 “Credit Agreement”: as defined in the Recitals. 

“Guarantor Obligations”: with respect to any Guarantor, all obligations and liabilities of such Guarantor which may
arise under or in connection with this Agreement (including, without limitation, Section 2), any other Loan Document, any Cash Management Service or any Bank Products to which such Guarantor is a party, in each case whether on account of
guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to any Co-Collateral Agent or to any other Credit Party that are required to be
paid by such Guarantor pursuant to the terms of this Agreement, any other Loan Document, any Cash Management Service or any Bank Product, and all guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses, or otherwise,
after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to such Borrower, whether or not a claim for post-filing or post-petition guarantee obligations, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise, are allowed in such proceeding). 
 “Guarantors”:
the collective reference to each Grantor in its capacity as a guarantor pursuant to Section 2. 
 “Health Care
Laws”: means all federal, state and local laws, rules, regulations, interpretations, guidelines, ordinances and decrees primarily relating to patient healthcare, any health care provider, medical assistance and cost reimbursement program,
as now or at any time hereafter in effect, including, but not limited to, the Social Security Act, the Social Security Amendments of 1972, the Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977, the Medicare and Medicaid Patient and Program
Protection Act of 1987 and HIPAA. 
 “HIPAA”: means the Health Insurance Portability and Accountability Act of
1996, as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder. 
 “Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign
laws or otherwise, including, without limitation, all Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses, know-how and processes, and all rights to sue at law or in equity for any infringement or other
impairment thereof, including the right to receive all proceeds and damages therefrom. 
 “New York UCC”: the
Uniform Commercial Code as from time to time in effect in the State of New York. 
 “Obligations”: (i) in
the case of each Borrower, its Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations. 

“Patents”: (i) all letters patent of the United States, any other country or any political subdivision thereof, all
reissues and extensions thereof and all goodwill associated therewith, (ii) all 

  
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applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof and (iii) all rights to obtain any reissues or
extensions of the foregoing. 
 “Patent License”: all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent. 

“Pharmaceutical Laws”: means federal, state and local laws, rules or regulations, codes, orders, decrees, judgments or
injunctions issued, promulgated, approved or entered, relating to dispensing, storing or distributing prescription medicines or products, including laws, rules or regulations relating to the qualifications of Persons employed to do the same.

 “Prescription List”: means all right, title and interest of any Grantor in and to all prescription files
maintained by it or on its behalf, including without limitation, all patient profiles, customer lists, customer information, and other records of prescriptions filled by it, in whatever form and wherever maintained by it or on its behalf, and all
goodwill and other intangible assets arising from the maintenance of such records and the possession of the information contained therein. 
 “Securities Act”: the Securities Act of 1933, as amended. 

“Software”: means all “software” are such term is defined in the New York UCC used by any Grantor to process,
assemble, prepare for sale, market for sale, sell or otherwise dispose of the Collateral, other than software embedded in any category of goods, including all computer programs and all supporting information provided in connection with a transaction
related to any program. 
 “Subsidiary Guarantor”: each Guarantor other than Holdings. 

“Trademarks”: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, logos and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common-law rights related
thereto, and (ii) the right to obtain all renewals thereof. 
 “Trademark License”: any agreement, whether
written or oral, providing for the grant by or to any Grantor of any right to use any Trademark. 
 1.2 Other Definitional
Provisions. (a) The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified. 
 (b) The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
 (c)
Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof. 

  
 4 

  
 SECTION 2. GUARANTEE

 2.1 Guarantee. (a) Each of the Guarantors (other than the Borrowers) hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Control Co-Collateral Agent, for the ratable benefit of the Credit Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by
each Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations of such Borrower. Each Borrower hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Control Co-Collateral
Agent, for the ratable benefit of the Credit Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by each other Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations of each such other Borrower. 
 (b) Anything herein or in any other Loan
Document to the contrary notwithstanding, the maximum liability of each Guarantor (other than, as to their respective Borrower Obligations, the Borrowers) hereunder and under the other Loan Documents shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 2.2). 

(c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time exceed the amount of the liability of such
Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of any Co-Collateral Agent or any other Credit Party hereunder. 

(d) The guarantee contained in this Section 2 shall remain in full force and effect until all the Borrower Obligations (other than
contingent indemnification obligations for which no claim shall have then been asserted) and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by payment in full, no Letter of Credit
shall be outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from
an issuer and on terms acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) and the Commitments shall be terminated, notwithstanding that from time to time during the term of the Credit Agreement any of the
Borrowers may be free from any Borrower Obligations. 
 (e) No payment made by any of the Borrowers, any of the Guarantors, any
other guarantor or any other Person or received or collected by any Co-Collateral Agent or any other Credit Party from any of the Borrowers, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in payment of any of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of any of the Borrower Obligations or any payment received or collected from such Guarantor in respect of any of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder until each of the Borrower Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) are paid in full,
no Letter of Credit shall be outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back
letters of credit from an issuer and on terms acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) and the Commitments are terminated. 
 2.2 Right of Contribution. Each Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder,

  
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such Subsidiary Guarantor shall be entitled to seek and receive contribution from and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of such payment.
Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3. The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to
the Co-Collateral Agents and the other Credit Parties, and each Subsidiary Guarantor shall remain liable to the Co-Collateral Agents and the other Credit Parties for the full amount guaranteed by such Subsidiary Guarantor hereunder. This
Section 2.2 shall not apply to Sears in its capacity as a Guarantor of the Borrower Obligations of SRAC, or to Kmart in its capacity as a Guarantor of the Borrower Obligations of Kmart Corp. 

2.3 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any
Guarantor by any Co-Collateral Agent or any other Credit Party, no Guarantor shall be entitled to be subrogated to any of the rights of any Co-Collateral Agent or any other Credit Party against any Borrower or any other Guarantor or any collateral
security or guarantee or right of offset held by the Co-Collateral Agents or any other Credit Party for the payment of any of the Borrower Obligations, nor shall any Guarantor seek or be entitled to seek any contribution, reimbursement or
indemnification from any Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, and notwithstanding the foregoing, in the event that any Guarantor possesses any such rights of subrogation, contribution,
reimbursement or indemnification, all such rights shall in all respects be subordinated and junior in right of payment, until all amounts owing to the Co-Collateral Agents and the other Credit Parties by each of the Borrowers on account of its
Borrower Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) are paid in full, no Letter of Credit shall be outstanding (unless the same has been cash collateralized in an amount equal to
105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the Issuing Lender have been provided in respect of
such Letters of Credit) and the Commitments are terminated. If any amount shall be paid to any Guarantor on account of such subrogation, contribution, reimbursement or indemnification rights at any time when any of the Borrower Obligations (other
than contingent indemnification obligations for which no claim shall have then been asserted) shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Co-Collateral Agents and the other Credit Parties,
segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be transferred to the Agent’s Account (or as the Co-Collateral Agents may otherwise direct) in the exact form received by such Guarantor (duly
indorsed by such Guarantor to the Agent, if required), to be applied against the Borrower Obligations, whether matured or unmatured, in such order as the Agent may determine. 
 2.4 Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and
without notice to or further assent by any Guarantor, any demand for payment of any of the Borrower Obligations made by the Co-Collateral Agents or any other Credit Party may be rescinded by the Co-Collateral Agents or such other Credit Party and
any of the Borrower Obligations continued, and any of the Borrower Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from
time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Co-Collateral Agents or any other Credit Party, and the Credit Agreement and the other Loan Documents and
any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Co-Collateral Agents (or the Required Lenders or all Lenders, as the case may be) or any other
Credit Party, if applicable, may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Co-Collateral Agents or any other Credit Party for the payment of any of the Borrower Obligations
may be sold, exchanged, waived, surrendered or released. Neither the Co-Collateral Agents nor any other Credit 

  
 6 

 
Party shall have any obligation to any Loan Party or other Person, to protect, secure, perfect or insure any Lien at any time held by it as security for any of the Borrower Obligations or for the
guarantee contained in this Section 2 or any property subject thereto. 
 2.5 Guarantee Absolute and Unconditional.

 (a) Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by the Co-Collateral Agents or any other Credit Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; each of the Borrower
Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between any of the
Borrowers and any of the Guarantors, on the one hand, and the Co-Collateral Agents and the other Credit Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in
this Section 2. Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon any of the Borrowers or any of the Guarantors with respect to any of the Borrower Obligations. Each
Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Credit
Agreement, any other Loan Document, any Letter of Credit, any Cash Management Service, any Bank Product or any other document made, delivered or given in connection with any of the foregoing, any of the Borrower Obligations or any other collateral
security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Co-Collateral Agents or any other Credit Party, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any Borrower or any other Person against any Co-Collateral Agent or any other Credit Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of
any Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any of the Borrowers for the Borrower Obligations, or of such Guarantor under the guarantee contained in this Section 2,
in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Co-Collateral Agents or any other Credit Party may, but shall be under no obligation to, make
a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrowers, any other Guarantor or any other Person or against any collateral security or guarantee for any of the Borrower Obligations or any right of offset
with respect thereto, and any failure by the Co-Collateral Agents or any other Credit Party to make any such demand, to pursue such other rights or remedies or to collect any payments from any of the Borrowers, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall
not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Co-Collateral Agents or any other Credit Party against any
Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 

(b) The obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of any
Co-Collateral Agent or any other Credit Party to assert any claim or demand or to enforce any remedy under this Agreement, any other Loan Document, any Letter of Credit, any Cash Management Service, any Bank Product or any other document made,
delivered or given in connection with any of the foregoing or any other agreement, by any default, failure or delay, willful or otherwise, in the performance of any of the Obligations, or by any other act or omission that may or might in any manner
or to any extent vary the risk of any Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than upon a written release of such 

  
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Guarantor from the Co-Collateral Agents or upon the indefeasible payment in full in cash of all the Borrower Obligations after the Commitments have been terminated). 

(c) The Co-Collateral Agents and the other Credit Parties may, at their election upon the occurrence and during the continuance of an
Event of Default, foreclose on any Collateral held by one or more of them by one or more judicial or non-judicial sales, accept an assignment of any such Collateral in lieu of foreclosure, compromise or adjust any part of the Borrower Obligations,
make any other accommodation with any Guarantor, or exercise any other right or remedy available to them against any Guarantor, without affecting or impairing in any way the liability of any other Guarantor hereunder except to the extent that all
the Borrower Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) have been indefeasibly paid in full in cash and the Commitments have been terminated. Each Guarantor waives any
defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against any other Guarantor, as
the case may be, or any Collateral. 
 2.6 Reinstatement. The guarantee contained in this Section 2 shall continue
to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the Co-Collateral Agents or any other Credit Party upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, any Borrower or any
Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made. 
 2.7
Payments. Each Guarantor hereby guarantees that payments hereunder will be paid without set-off or counterclaim in Dollars, to the Agent’s Account, or such other account as the Co-Collateral Agents may designate in accordance with
Section 9.02 of the Credit Agreement. 
 SECTION 3. GRANT OF SECURITY INTEREST 

3.1 Collateral; Grant of Security Interest. Each Grantor hereby grants to the Control Co-Collateral Agent, for the ratable benefit
of the Credit Parties, a security interest in, all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations: 

 

	 	(a)	all Credit Card Accounts Receivable; 

  

	 	(b)	all Pharmacy Receivables; 

  

	 	(c)	all Inventory; 

  

	 	(d)	all Chattel Paper relating to Credit Card Accounts Receivable and Pharmacy Receivables; 

 

	 	(e)	all Instruments relating to Credit Card Accounts Receivable and Pharmacy Receivables; 

 

	 	(f)	all Prescription Lists; 

  

	 	(g)	all Documents relating to all Inventory; 

  
 8 

  

	 	(h)	all Deposit Accounts; 

  

	 	(i)	all cash and cash equivalents; 

  

	 	(j)	all books and records pertaining to the Collateral; and 

  

	 	(k)	to the extent not otherwise included, all Proceeds, insurance claims, Supporting Obligations and products of any and all of the foregoing and all collateral security
and guarantees given by any Person with respect to any of the foregoing. 

 3.2 No Assumption of Liability.
The security interest in the Collateral, granted to the Co-Collateral Agents is granted as security only and shall not subject the Co-Collateral Agents or any other Credit Party to, or in any way alter or modify, any obligation or liability of any
Grantor with respect to or arising out of the Collateral. 
 SECTION 4. REPRESENTATIONS AND WARRANTIES 

To induce the Co-Collateral Agents and certain other Credit Parties to enter into the Credit Agreement and to induce the Lenders and the
Swing Line Lender to make their respective extensions of credit to the Borrowers thereunder and the Issuing Lender to issue the Letters of Credit, each Grantor hereby represents and warrants to the Co-Collateral Agents and the other Credit Parties
that: 
 4.1 Title; No Other Liens. Except for the security interest granted to the Control Co-Collateral Agent for the
ratable benefit of the Credit Parties pursuant to this Agreement and the other Liens permitted to exist on the Collateral by the Credit Agreement, such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others.
No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Control Co-Collateral Agent, for the ratable benefit of the
Credit Parties, pursuant to this Agreement or as are permitted by the Credit Agreement. For the avoidance of doubt, it is understood and agreed that any Grantor may, as part of its business, transfer and/or grant licenses to third parties to use
Intellectual Property owned, licensed to or developed by a Grantor so long as such conveyances and/or licenses do not materially impair the license of the Control Co-Collateral Agent in and to such Intellectual Property. For purposes of this
Agreement and the other Loan Documents, such licensing activity shall not constitute a “Lien” on such Intellectual Property. 
 4.2 Perfected First Priority Liens. 
 (a) The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions specified on Schedule 2 (which, in the case of all filings and other documents referred to on said Schedule, have been delivered to the Co-Collateral Agents
in completed and, if applicable, duly executed form) will constitute valid perfected security interests in all of the Collateral in favor of the Control Co-Collateral Agent, for the ratable benefit of the Credit Parties, as collateral security for
such Grantor’s Obligations, enforceable in accordance with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase any Collateral from such Grantor and (b) are prior to all other Liens on the
Collateral in existence on the date hereof other than Permitted Liens having priority over the Liens of the Control Co-Collateral Agent pursuant to applicable law. 
 (b) Each Co-Collateral Agent hereby appoints the other Co-Collateral Agents, and each hereby agrees to serve, as agent and bailee for the others for the limited purpose of perfecting their respective
security interests, granted for the benefit of the Credit Parties, on the Collateral which may at 

  
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any time be in its possession during the term of this Agreement, including, without limitation any rights with respect to Deposit Accounts, Documents or other Collateral which is perfected by
“control” under the New York UCC or any other applicable jurisdiction. 
 4.3 Jurisdiction of Organization. On
the date hereof, such Grantor’s jurisdiction of organization and identification number from the jurisdiction of organization (if any) are specified on Schedule 3. Such Grantor has furnished to the Co-Collateral Agents a charter,
certificate of incorporation or other formation document and good standing certificate as of a date which is recent to the date hereof. 
 4.4 Credit Card Accounts Receivable and Pharmacy Receivables. 
 (a) No
amount payable to such Grantor under or in connection with any Credit Card Accounts Receivable or Pharmacy Receivables is evidenced by any Instrument or Chattel Paper which has not been delivered to the Co-Collateral Agents. 

(b) None of the obligors on any Credit Card Accounts Receivable is a Governmental Authority. 

(c) Each Eligible Credit Card Accounts Receivable is a bona fide existing payment obligation of a credit card payment processor or an
issuer of credit cards to a Grantor resulting from charges by a customer of a Grantor on credit cards issued by such issuer in connection with the sale of goods by such Grantor, or services performed by such Grantor, in each case in the ordinary
course of its business. 
 (d) Each Eligible Pharmacy Receivable represents a bona fide existing interest in or claim relating
to a policy of insurance which is a right of a Grantor to payment of a monetary obligation for healthcare goods sold by such Grantor, or services provided by such Grantor, in each case in the ordinary course of its business. 

(e) Except as would not be reasonably expected to result in a Material Adverse Effect, there are no facts, events or occurrences which
would impair the validity of any Credit Card Accounts Receivable or any Pharmacy Receivables, or tend to reduce the amount payable thereunder from the face amount of the claim or invoice or statements delivered to the Agent with respect thereto
(other than arising in the ordinary course of business). 
 4.5 Related Intellectual Property. Such Grantor owns or has a
license to use all Intellectual Property which is reasonably necessary to sell the Collateral in the ordinary course. Such Grantor shall take all reasonable and necessary steps to maintain and preserve the benefit of each Trademark License,
Copyright License and Patent License which relates to Intellectual Property to the extent that the use of such Intellectual Property would be reasonably necessary in connection with the Co-Collateral Agents’ enforcement of any of its remedies
under the Loan Documents. Except for consents which have been obtained, such Grantor does not own any Eligible Inventory which is subject to any Copyright License, Trademark License or Patent License or other agreement with any third party which
would require any consent of any third party upon sale or disposition of that Eligible Inventory where such sale or disposition is made pursuant to a going-out-of-business sale, orderly liquidation or similar sale, in each case, to the extent such
going-out-of-business sale, orderly liquidation or similar sale is conducted at the Stores, and such Grantor will promptly deliver notice to the Co-Collateral Agents upon entering into any Copyright License, Trademark License or Patent License or
amendment thereto which would require any such consent. 
 4.6 [Intentionally Omitted]. 

  
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 4.7 Dealer Store
Inventory. Except as would not be reasonably expected to result in a Material Adverse Effect, (a) all of the Inventory at each Dealer Store is owned by a Grantor free and clear of any and all Liens or claims of others except as permitted
under the Credit Agreement, and (b) all such Inventory is subject to a legal, valid and perfected security interest in favor of the applicable Grantor, which is prior to any other Lien on such Inventory. 

4.8 Pharmaceutical Laws. 
 (a) The Grantors have obtained all permits, licenses and other authorizations which are required with respect to the ownership and operations of their businesses under any Pharmaceutical Law, except where
the failure to obtain such permits, licenses or other authorizations would not reasonably be expected to have a Material Adverse Effect. 
 (b) The Grantors are in compliance with all terms and conditions of all such permits, licenses, orders and authorizations, and are also in compliance with all Pharmaceutical Laws, including all other
limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in the Pharmaceutical Laws, except where the failure to comply with such terms, conditions or laws would not reasonably be
expected to have a Material Adverse Effect. 
 (c) None of the Grantors have any liabilities, claims against them, and presently
outstanding notices imposed or based upon any provision of any Pharmaceutical Law, except for such liabilities, claims, citations or notices which individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.

 4.9 HIPAA Compliance. 
 (a) To the extent that and for so long as a Grantor is a “covered entity” within the meaning of HIPAA, and except as would not be reasonably expected to result in a Material Adverse Effect, such
Grantor (i) has undertaken or will promptly undertake all applicable surveys, audits, inventories, reviews, analyses and/or assessments (including any required risk assessments) of all areas of its business and operations required by HIPAA
and/or that could be adversely affected by failure of such Grantor to be HIPAA Compliant (as defined below); (ii) has developed or will promptly develop a detailed plan and time line for becoming HIPAA Compliant (a “HIPAA Compliance
Plan”); and (iii) has implemented or will implement those provisions of such HIPAA Compliance Plan in all material respects necessary to ensure that such Grantor is or becomes HIPAA Compliant. 

(b) For purposes hereof, “HIPAA Compliant” shall mean that a Grantor to the extent legally required (i) is or will
use commercially reasonable efforts to be in compliance in all material respects with each of the applicable requirements of the so-called “Administrative Simplification” provisions of HIPAA on and as of each date that any part thereof, or
any final rule or regulation thereunder, becomes effective in accordance with its or their terms, as the case may be (each such date, a “HIPAA Compliance Date”) and (ii) is not and could not reasonably be expected to become, as
of any date following any such HIPAA Compliance Date, the subject of any civil or criminal penalty, process, claim, action or proceeding, or any administrative or other regulatory review, survey, process or proceeding (other than routine surveys or
reviews conducted by any government health plan or other accreditation entity) that could result in any of the foregoing or that has or could reasonably be expected to have a Material Adverse Effect. 

4.10 Compliance with Health Care Laws. 

  
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 (a) Except as would
not reasonably be expected to result in a Material Adverse Effect, each Grantor is in compliance with all Health Care Laws, including all Medicare and Medicaid program rules and regulations applicable to it. Without limiting the generality of the
foregoing, except as would not be expected to result in a Material Adverse Effect, no Grantor has received notice of any violation of any provisions of the Medicare and Medicaid Anti-Fraud and Abuse or Anti-Kickback Amendments of the Social Security
Act (presently codified in Section 1128(B)(b) of the Social Security Act) or the Medicare and Medicaid Patient and Program Protection Act of 1987. 
 (b) Except as would not reasonably be expected to result in a Material Adverse Effect, each Grantor has maintained all records required to be maintained by the Joint Commission on Accreditation of
Healthcare Organizations, the Food and Drug Administration, Drug Enforcement Agency and State Boards of Pharmacy and the Federal and State Medicare and Medicaid programs as required by the Health Care Laws or other applicable law or regulation and
each Grantor and the owners of the facilities and other businesses managed by any Grantor have all permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authority as are required under Health Care Laws and
such insurance laws and regulations, as are applicable thereto. 
 4.11 Prescription Lists. Except as provided under
applicable law, including any applicable Health Care Laws, Pharmaceutical Laws and privacy laws, and except as would not be expected to result in a Material Adverse Effect, (i) there are no limitations or restrictions on the rights of any
Grantor to sell, transfer or otherwise assign any Prescription List to any third party; and (ii) each Prescription List is in good and marketable condition. 
 SECTION 5. COVENANTS 
 Each Grantor covenants and agrees with the Co-Collateral
Agents and the other Credit Parties that, until the Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) shall have been paid in full, no Letter of Credit shall be outstanding (unless the
same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms
acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) and the Commitments shall have terminated: 
 5.1 Delivery of Instruments and Chattel Paper. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument, Chattel Paper or transferable
records, such Instrument, Chattel Paper or transferable records, shall be promptly delivered to the Control Co-Collateral Agent, duly indorsed in a manner satisfactory to the Control Co-Collateral Agent, to be held as Collateral pursuant to this
Agreement. 
 5.2 Maintenance of Insurance. Such Grantor will maintain insurance as and to the extent required under the
Credit Agreement. 
 5.3 Maintenance of Perfected Security Interest; Further Documentation. (a) Such Grantor shall
maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.2 and shall defend such security interest against the claims and demands of all Persons whomsoever,
subject to the rights of such Grantor under the Loan Documents to dispose of the Collateral. 
 (b) At any time and from time to
time, upon the written request of the Co-Collateral Agents, and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions as
the Co-Collateral 

  
 12 

 
Agents may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation,
(i) filing any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby and (ii) to the extent applicable, taking any
actions necessary to enable the Co-Collateral Agents to obtain “control” (within the meaning of the applicable Uniform Commercial Code) with respect thereto. 
 5.4 Changes in Name, etc. Such Grantor will not, except upon 15 days’ prior written notice to the Co-Collateral Agents and delivery to the Co-Collateral Agents of all additional
financing statements and other documents reasonably requested by the Co-Collateral Agents to maintain the validity, perfection and priority of the security interests provided for herein, change its organizational form from that of a registered
entity to an unregistered entity (or from an unregistered entity to a registered entity) or change its jurisdiction of organization from that referred to in Section 4.3. Such Grantor will provide 15 days’ prior written notice to the
Co-Collateral Agents of any change in its name or organizational form (other than changes in organizational form referred to in the immediately preceding sentence). 
 SECTION 6. REMEDIAL PROVISIONS 
 6.1 Certain Matters Relating to Credit Card
Accounts Receivable and Pharmacy Receivables. (a) At any time after the occurrence and during the continuance of a Cash Dominion Event, any payments of Credit Card Accounts Receivable and Pharmacy Receivables, when collected by any Grantor,
shall be transferred and maintained in accordance with Section 6.01(m) of the Credit Agreement. 
 (b) At the Co-Collateral
Agents’ request, at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall deliver to the Co-Collateral Agents all original and other documents evidencing, and relating to, the agreements and
transactions which gave rise to the Credit Card Accounts Receivable and the Pharmacy Receivables, including, without limitation, all original orders, invoices and shipping receipts. 

6.2 Communications with Obligors; Grantors Remain Liable. (a) Each Co-Collateral Agent in its own name or in the name of
others may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Credit Card Accounts Receivable and the Pharmacy Receivables to verify with them to such Co-Collateral Agent’s
satisfaction the existence, amount and terms of any Credit Card Accounts Receivable and Pharmacy Receivables. 
 (b) Upon the
request of the Co-Collateral Agents at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Credit Card Accounts Receivable and the Pharmacy Receivables that the Credit Card
Accounts Receivable and the Pharmacy Receivables have been assigned to the Co-Collateral Agents for the ratable benefit of the Credit Parties and that payments in respect thereof shall be made directly to the Co-Collateral Agents. 

(c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Credit Card Accounts Receivable
and the Pharmacy Receivables to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. No Co-Collateral Agent nor any other Credit
Party shall have any obligation or liability under any Credit Card Accounts Receivable or Pharmacy Receivables (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by any Co-Collateral Agent or any
other Credit Party of any payment relating thereto, nor shall any Co-Collateral Agent or any other Credit Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Credit Card Accounts Receivable or
Pharmacy Receivables (or any 

  
 13 

 
agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 

6.3 [Intentionally Omitted]. 
 6.4 Application of Proceeds. If an Event of Default shall have occurred and be continuing, and the Obligations shall have been accelerated or a Liquidation shall have been commenced, the Agent
shall apply all or any part of Proceeds constituting Collateral, whether or not held in the Agent’s Account, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order: 

First, to pay all incurred and unpaid fees, expenses, indemnities, and other amounts (including fees, charges and
disbursements of counsel to the Agent and the Co-Collateral Agents) payable to the Agent and the Co-Collateral Agents (each in its capacity as such) under the Loan Documents, pro rata among such Persons according to the amounts of such
Obligations then due and owing and remaining unpaid to each; 
 Second, to pay all incurred and unpaid
expenses, indemnities, and other amounts (other than principal, interest and fees, and Obligations relating to Cash Management Services and Bank Products) payable to the Lenders, the Swingline Lender and the Issuing Lenders (including fees, charges
and disbursements of counsel to the respective Lenders, the Swingline Lender and the Issuing Lenders and amounts payable under Section 2.12), under the Loan Documents, pro rata among such Persons according to the amounts of such
Obligations then due and owing and remaining unpaid to each; 
 Third, to pay all accrued and unpaid
interest on all Permitted Overadvances, to the Agent or pro rata among the Lenders, as applicable, according to the amounts of such Obligations then due and owing and remaining unpaid to each; 

Fourth, to pay all the unpaid principal on all Permitted Overadvances, to the Agent or pro rata among
the Lenders, as applicable, according to the amounts of such Obligations then due and owing and remaining unpaid to each; 
 Fifth, to pay all accrued and unpaid interest on the Swingline Advances (to the extent that Swingline Advances have not been refinanced by a Revolving Advance); 

Sixth, to pay all the unpaid principal of the Swingline Advances (to the extent that Swingline Advances have not
been refinanced by a Revolving Advance); 
 Seventh, to pay all accrued and unpaid interest on all
Advances, and fees, payable to the Lenders and the Issuing Lenders under the Loan Documents, pro rata among such Persons according to the amounts of such Obligations then due and owing and remaining unpaid to each; 

Eighth, to pay all the unpaid principal on all Advances, pro rata among the Lenders according to the
amounts of such Obligations then due and owing and remaining unpaid to the Lenders; 

  
 14 

  

Ninth, to pay all other amounts then due and owing and remaining unpaid in respect of the Obligations (other than
Obligations relating to Cash Management Services and Bank Products), pro rata among the Lenders according to the amounts of the Obligations (other than Obligations relating to Cash Management Services and Bank Products) then due and owing and
remaining unpaid to the Lenders; 
 Tenth, to the applicable Lenders or Affiliates thereof towards the
payment of amounts then due and owing and remaining unpaid in respect of Cash Management Services and the prepayment, settlement and termination of Cash Management Services, pro rata among the applicable Lenders and Affiliates thereof
according to the amounts then due and owing and remaining unpaid in respect of Cash Management Services; 

Eleventh, to the applicable Lenders or Affiliates thereof towards the payment of amounts then due and owing and
remaining unpaid in respect of Bank Products, pro rata among the applicable Lenders and Affiliates thereof according to the amounts that would become due and owing upon the prepayment, settlement and termination of such Bank Products; and

 Twelfth, any balance remaining after the Obligations shall have been paid in full, no Letters of Credit
shall be outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from
an issuer and on terms acceptable to the Issuing Lender have been provided in respect of such Letters of Credit) and the Commitments shall have terminated shall be paid over to the Borrowers or to whomsoever may be lawfully entitled to receive the
same. 
 6.5 Code and Other Remedies. (a) If an Event of Default shall occur and be continuing, the Co-Collateral
Agents, on behalf of the Credit Parties, may (and at the direction of the Required Lenders shall) exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing
or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law. Without limiting the generality of the foregoing, the Co-Collateral Agents, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may
(and at the direction of the Required Lenders shall) in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of any Co-Collateral Agent or any
Credit Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. Each purchaser at any such sale shall hold
the property sold absolutely, free from any claim or right on the part of any Grantor. The Co-Collateral Agents or any other Credit Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption, stay, valuation or appraisal on the part of any Grantor, which right or equity is hereby waived and released, and may
credit against the purchase price the amount of any claim then due and payable from any Grantor on account of the Obligations owed to the Co-Collateral Agents or any other Credit Party, and the Co-Collateral Agents or such other Credit Party may,
upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor. Each Grantor further agrees, at the Co-Collateral Agents’ request, to assemble the Collateral and make it
available to the Co-Collateral Agents at the Grantor’s sole risk and expense, at places which the Co-Collateral Agents shall reasonably select, 

  
 15 

 
whether at such Grantor’s premises or elsewhere. The Co-Collateral Agents shall apply the net proceeds of any action taken by it pursuant to this Section 6.5, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Co-Collateral Agents and the other Credit
Parties hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in the order set forth in Section 6.4, and only after such application and after the
payment by the Co-Collateral Agents of any other amount required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, need the Co-Collateral Agents account for the surplus, if any, to any Grantor. To
the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against any Co-Collateral Agent or any other Credit Party arising out of the exercise by them of any rights hereunder. If any notice of a
proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition. No Co-Collateral Agent shall be obligated to make any sale
or other disposition of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale or other disposition of such Collateral shall have been given. The Co-Collateral Agents may, without notice or publication, adjourn
any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. Any
public sale shall be held at such time or times within ordinary business hours and at such place or places as the Co-Collateral Agents may fix and state in the notice of such sale. If any of the Collateral is sold, leased, or otherwise disposed of
by the Co-Collateral Agents on credit, the Obligations shall not be deemed to have been reduced as a result thereof unless and until payment is finally received thereon by the Co-Collateral Agents. 

(b) If an Event of Default shall occur and be continuing, with respect to any Collateral consisting of Inventory, the Co-Collateral
Agents may conduct one or more going out of business sales, in the Co-Collateral Agents’ own right or by one or more agents and contractors. Such sale(s) may be conducted upon any premises owned, leased, or occupied by any Grantor. The
Co-Collateral Agents and any such agent or contractor, in conjunction with any such sale, may augment the Inventory with other goods (all of which other goods shall remain the sole property of the Co-Collateral Agents or such agent or contractor).
Any amounts realized from the sale of such goods which constitute augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in their disposition) shall be the sole property of the Co-Collateral Agents or such agent
or contractor and neither any Grantor nor any Person claiming under or in right of any Grantor shall have any interest therein. Each purchaser at any such going out of business sale shall hold the property sold absolutely, free from any claim or
right on the part of any Grantor. 
 (c) If an Event of Default shall occur and be continuing, with respect to any Collateral
consisting of Accounts, the Co-Collateral Agents may: (i) demand, collect and receive any amounts relating thereto, as the Co-Collateral Agents may reasonably determine; (ii) commence and prosecute any actions in any court for the purposes
of collecting any such Accounts and enforcing any other rights in respect thereof; (iii) defend, settle or compromise any action brought and, in connection therewith, give such discharges or releases as the Co-Collateral Agents may reasonably
deem appropriate; (iv) without limiting the Co-Collateral Agents’ rights set forth in Section 7.1, receive, open and dispose of mail addressed to any Grantor and endorse checks, notes, drafts, acceptances, money orders, bills of
lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to such Accounts or securing or relating to such Accounts, on behalf of and in the name of such Grantor; and (v) sell,
assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any such Accounts or the goods or services which have given rise thereto, as fully and completely as though the Co-Collateral Agents were
the absolute owner thereof for all purposes. 

  
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 (d) If an Event of
Default shall occur and be continuing, with or without legal process and with or without prior notice or demand for performance, the Co-Collateral Agents may enter upon, occupy, and use any premises owned or occupied by each Grantor. The
Co-Collateral Agents shall not be required to remove any of the Collateral from any such premises upon the Co-Collateral Agents taking possession thereof, and may render any Collateral unusable to the Grantors. In no event shall the Co-Collateral
Agents be liable to any Grantor for use or occupancy by the Co-Collateral Agents of any premises pursuant to this Section 6.5, nor for any charge (such as wages for the Grantors’ employees and utilities) reasonably incurred in connection
with the Co-Collateral Agents’ exercise of the Co-Collateral Agents’ rights and remedies hereunder. 
 (e) For
purposes of this Section 6.5, a written and fully executed agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof. The Co-Collateral Agents shall be free to carry out such sale pursuant to such agreement
and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Co-Collateral Agents shall have entered into such an agreement all Events of Default shall have been
remedied and the Obligations paid in full. 
 (f) To the extent permitted by applicable law, each Grantor hereby waives all
rights of redemption, stay, valuation and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 

6.6 Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the
Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Co-Collateral Agents or any other Credit Party to collect such deficiency. 

6.7 Grant of License in Intellectual Property, Software and other Assets. 

(a) For the purpose of enabling the Co-Collateral Agents to exercise the rights and remedies under Section 6 at such time as the
Co-Collateral Agents shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby (i) assigns and transfers to the Co-Collateral Agents and grants each Co-Collateral Agent, for the benefit of
the Co-Collateral Agents and the other Credit Parties, an irrevocable, nonexclusive license (exercisable without payment of royalty or any other compensation to such Grantor or any Affiliate of such Grantor) to use, license or sublicense, any
Related Intellectual Property now owned or licensed or hereafter owned, licensed or otherwise acquired by such Grantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the compilation or printout thereof and (ii) irrevocably agrees that the Co-Collateral Agents may sell any of such Grantor’s Inventory directly to any Person, including,
without limitation, Persons who have previously purchased such Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Co-Collateral Agents’ rights under this Agreement, may sell Inventory
which bears any Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Copyright owned by or licensed to such Grantor and the Co-Collateral Agents may finish any work in process and affix any Trademark owned by or
licensed to such Grantor and sell such Inventory as provided herein; provided that, notwithstanding the foregoing, except as provided in any agreement between the Control Co-Collateral Agent and the owner or licensor of such Intellectual
Property, this Agreement shall not constitute a license to use, license or sublicense, any Intellectual Property to the extent such license or sublicense is prohibited by or results in the termination of or requires any consent not obtained under,
any contract, license, agreement, instrument or other document evidencing or giving rise to such Intellectual Property, except to the extent that (x) the term in such contract, license, agreement, instrument or other document providing for such
prohibition, breach, default or termination or requiring such consent is 

  
 17 

 
ineffective under applicable law, or (y) the contract, license, agreement, instrument or other document pursuant to which such Grantor was granted its rights to any such Intellectual
Property was issued by a Subsidiary or Affiliate of such Grantor (and is not subject to an applicable constraint in an over-license or other agreement with a third party). 
 (b) For the purpose of enabling the Co-Collateral Agents to exercise the rights and remedies under Section 6 at such time as the Co-Collateral Agents shall be lawfully entitled to exercise such
rights and remedies, and for no other purpose, each Grantor hereby assigns and transfers to the Co-Collateral Agents and grants to the Co-Collateral Agents, for the benefit of the Co-Collateral Agents and the other Credit Parties, an irrevocable,
nonexclusive license (exercisable without payment of royalty or any other compensation to such Grantor or any other Person) to use, license or sublicense, any Software now owned or licensed or hereafter owned, licensed or otherwise acquired by such
Grantor; provided that, notwithstanding the foregoing, except as provided in any agreement between the Control Co-Collateral Agent and the owner or licensor of such Software, this Agreement shall not constitute a license to use, license or
sublicense, any Software to the extent such license or sublicense is prohibited by or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise
to such Software, except to the extent that (i) the term in such contract, license, agreement, instrument or other document providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable
law, or (ii) the contract, license, agreement, instrument or other document pursuant to which such Grantor was granted its rights to any such Software was issued by a Subsidiary or Affiliate of such Grantor (and is not subject to an applicable
constraint in an over-license or other agreement with a third party). 
 (c) Without duplication of the rights granted to the
Co-Collateral Agents in clauses (a) and (b) of this Section 6.7, and for the purpose of enabling the Co-Collateral Agents to exercise the rights and remedies under Section 6 at such time as the Co-Collateral Agents shall be
lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby assigns and transfers to the Co-Collateral Agents and grants to the Co-Collateral Agents, for the benefit of the Co-Collateral Agents and the other
Credit Parties, an irrevocable, nonexclusive license (exercisable without payment of royalty, rent or any other compensation to such Grantor or any other Person), to use, license or sublicense, any real property or personal property of such Grantor
which does not constitute Collateral, including but not limited to, all Equipment, Fixtures, General Intangibles and Goods, whether now or hereafter owned, leased or occupied by such Grantor; provided that, notwithstanding the foregoing,
except as provided in any agreement between the Control Co-Collateral Agent and the owner or licensor of such real or personal property, this Agreement shall not constitute a license to use, license or sublicense, any real or personal property to
the extent such license or sublicense is prohibited by or results in the termination of or requires any consent not obtained under, any lease, contract, license, agreement, instrument or other document evidencing or giving rise to such property or
any rights therein, except to the extent that (i) the term in such lease, contract, license, agreement, instrument or other document providing for such prohibition, breach, default or termination or requiring such consent is ineffective under
applicable law, or (ii) the contract, license, agreement, instrument or other document pursuant to which such Grantor was granted its rights to any such real property or personal property was issued by a Subsidiary or Affiliate of such Grantor
(and is not subject to an applicable constraint in an over-license or other agreement with a third party). 
 SECTION 7. THE
CO-COLLATERAL AGENTS 
 7.1 Co-Collateral Agent’s Appointment as Attorney-in-Fact, etc.  

  
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 (a) Each Grantor hereby
irrevocably constitutes and appoints each Co-Collateral Agent and any officer or agent thereof, 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 such Grantor
and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives each Co-Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do
any or all of the following: 
 (i) in the name of such Grantor or its own name, or otherwise, take possession of
and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Credit Card Accounts Receivable and Pharmacy Receivables or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Co-Collateral Agents for the purpose of collecting any and all such moneys due under any Credit Card Accounts Receivable and Pharmacy Receivables or
with respect to any other Collateral whenever payable; 
 (ii) pay or discharge taxes and Liens levied or placed
on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof; 

(iii) execute, in connection with any sale provided for in Section 6.5, any indorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral; and 
 (iv) (1) direct any party liable for
any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Agent, or as the Co-Collateral Agents shall direct; (2) ask or demand for, collect, and receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or
adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Co-Collateral Agents may deem appropriate; and (7) generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Co-Collateral Agents were the absolute owner thereof for all purposes, and do, at the Co-Collateral Agents’ option and such Grantor’s expense, at any time, or
from time to time, all acts and things which the Co-Collateral Agents deems necessary to protect, preserve or realize upon the Collateral and the Co-Collateral Agents’ and the other Credit Parties security interests therein and to effect the
intent of this Agreement, all as fully and effectively as such Grantor might do. 
 Anything in this Section 7.1(a) to the
contrary notwithstanding, the Co-Collateral Agents agree that they will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing. 

  
 19 

  
 (b) If any Grantor
fails to perform or comply with any of its agreements contained herein, the Co-Collateral Agents, at their option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

 (c) Without limitation to any Co-Collateral Agent’s or any other Credit Party’s rights to payment, reimbursement or
indemnification under any other Loan Document, the expenses of the Co-Collateral Agents incurred in connection with actions undertaken as provided in Sections 7.1 and 8.4, together with interest thereon at a rate per annum equal to the highest rate
per annum at which interest would then be payable on any category of past due Base Rate Advances made by Extending Lenders under the Credit Agreement, from the date of payment by any such Co-Collateral Agent to the date reimbursed by the relevant
Grantor, shall be payable by such Grantor to the Co-Collateral Agents on demand. 
 (d) Each Grantor hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released. 
 7.2 Duty of Co-Collateral Agents. Each Co-Collateral Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as such Co-Collateral Agent deals with similar property
for its own account. Neither the Co-Collateral Agents nor any other Credit Party nor any of their respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof. The
powers conferred on the Co-Collateral Agents and the other Credit Parties hereunder are solely to protect the Co-Collateral Agents’ and the other Credit Parties interests in the Collateral and shall not impose any duty upon the Co-Collateral
Agents or any other Credit Party to exercise any such powers. The Co-Collateral Agents and the other Credit Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any
of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct, as determined by a final and non-appealable judgment of a
court of competent jurisdiction. 
 7.3 Execution of Financing Statements. Each Grantor authorizes the Co-Collateral
Agents to file or record financing statements and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor in such form and in such offices as the Co-Collateral Agents determine
appropriate to perfect the security interests of the Co-Collateral Agents under this Agreement. Each Grantor hereby ratifies and authorizes the filing by the Co-Collateral Agents of any financing statement with respect to the Collateral made prior
to the date hereof. 
 7.4 Authority of the Co-Collateral Agents and the Control Co-Collateral Agent. 

(a) Each Grantor acknowledges that the rights and responsibilities of the Co-Collateral Agents under this Agreement with respect to any
action taken by the Co-Collateral Agents or the exercise or non-exercise by the Co-Collateral Agents of any request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the
Co-Collateral Agents and the other Credit Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Co-Collateral Agents and the Grantors, the
Co-Collateral Agents shall be conclusively presumed to be acting as agent for the Credit Parties with full 

  
 20 

 
and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 

(b) Wells Fargo Retail Finance, LLC and General Electric Capital Corporation hereby appoint Bank of America, N.A., in its capacity as a
Co-Collateral Agent, as agent to the Co-Collateral Agents for purposes of filing financing statements and entering into Blocked Account Agreements and other control agreements, in connection with the perfection of a security interest in the
Collateral which was granted for the benefit of the Credit Parties (the “Control Co-Collateral Agent”). Each Grantor acknowledges that any and all actions to be taken by the Co-Collateral Agents hereunder shall be taken individually
by the Control Co-Collateral Agent, and all such actions shall have the full force and effect as though taken jointly by all the Co-Collateral Agents. 
 SECTION 8. MISCELLANEOUS 
 8.1 Amendments in Writing. None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 9.01 of the Credit Agreement. 
 8.2 Notices . All notices, requests and demands to or upon the Co-Collateral Agents or any Grantor hereunder shall be effected in the manner provided for in Section 9.02 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Grantor shall be addressed to such Grantor at its notice address set forth on Schedule 1. 

8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Co-Collateral Agents nor any other Credit Party shall by any
act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor
any delay in exercising, on the part of any Co-Collateral Agent or any other Credit Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Co-Collateral Agents or any other Credit Party of any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Co-Collateral Agents or such other Credit Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive
of any other rights or remedies provided by law. 
 8.4 Enforcement Expenses; Indemnification. Without limitation to any
Co-Collateral Agent’s or any other Credit Party’s rights to payment, reimbursement or indemnification under any other Loan Document: 
 (a) each Grantor jointly and severally agrees to pay or reimburse each Co-Collateral Agent and the other Credit Parties for all their costs and expenses incurred in collecting against any Grantor under
the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents, including, without limitation, the fees and disbursements of the Credit Parties’ counsel in accordance
with the terms of the Credit Agreement; 
 (b) each Grantor agrees to pay, and to save the Co-Collateral Agents and the other
Credit Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to

  
 21 

 
any of the Collateral or in connection with any of the transactions contemplated by this Agreement and the other Loan Documents; 

(c) each Grantor agrees to pay, and to save the Co-Collateral Agents and the other Credit Parties harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement and the
other Loan Documents to the extent the Borrowers would be required to do so pursuant to Section 9.04 of the Credit Agreement; and 
 (d) to the fullest extent permitted by applicable Law, no Grantor shall assert, and each Grantor hereby waives, any claim against any Co-Collateral Agent and the other Credit Parties, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, or the transactions contemplated hereby or thereby. No Co-Collateral Agent or any other Credit Party shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such
unintended recipients by any such Co-Collateral Agent or other Credit Party through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Co-Collateral Agent or other Credit Party as determined by a final and non-appealable judgment of a court of
competent jurisdiction. 
 The agreements in this Section 8.4 shall survive repayment of the Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents, the termination of the Commitments, the release of the Collateral from the Liens created hereby and the termination of this Agreement. 

8.5 Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the
benefit of the Co-Collateral Agents and the other Credit Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written
consent of the Co-Collateral Agents. 
 8.6 Set-Off. Each Grantor hereby irrevocably authorizes each Co-Collateral Agent
and each of the other Credit Parties at any time and from time to time while an Event of Default shall have occurred and be continuing, without notice to such Grantor or any other Grantor, any such notice being expressly waived by each Grantor, to
set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, at any time held or owing by any such Co-Collateral Agent or other Credit Party to or for the credit or the account of such Grantor, or any part thereof in such amounts as such Co-Collateral Agent or other Credit Party may elect, against
and on account of the obligations and liabilities of such Grantor to such Co-Collateral Agent or other Credit Party hereunder and claims of every nature and description of such Co-Collateral Agent or other Credit Party against such Grantor, in any
currency, whether arising hereunder, under the Credit Agreement, any other Loan Document, any Cash Management Services, any Bank Product or otherwise, as such Co-Collateral Agent or other Credit Party may elect, whether or not any Co-Collateral
Agent or any other Credit Party has made any demand for payment. The applicable Co-Collateral Agent or Credit Party shall notify such Grantor promptly of any such set-off and the application made by such Co-Collateral Agent or other Credit Party of
the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Co-Collateral Agents and the other Credit Parties under this

  
 22 

 
Section 8.6 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Co-Collateral Agents and the other Credit Parties may have.

 8.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by
telecopier or electronic mail of “PDF” file shall be effective as delivery of a manually executed counterpart of this Agreement. 
 8.8 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating 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. 

8.9 Section Headings. The Section headings used in this Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof. 
 8.10 Integration. This Agreement and
the other Loan Documents represent the agreement of the Grantors, the Co-Collateral Agents and the other Credit Parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by
the Co-Collateral Agents or the other Credit Parties relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents. 

8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
 8.12 [Intentionally Omitted]. 

8.13 Acknowledgements. Each Grantor hereby acknowledges that: 

(a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it
is a party; 
 (b) neither the Co-Collateral Agents nor any other Credit Party has any fiduciary relationship with or duty to
any Grantor arising out of or in connection with this Agreement, any of the other Loan Documents, any Cash Management Service or any Bank Product, and the relationship between the Grantors, on the one hand, and the Co-Collateral Agents and the other
Credit Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
 (c) no
joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Credit Parties or among the Grantors and the Credit Parties. 

8.14 Additional Grantors. Each Subsidiary of the Borrowers that is required to become a party to this Agreement pursuant to
Section 6.01(i) of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto. 

  
 23 

  
 8.15 Releases.
(a) This Agreement, the Lien in favor of the Co-Collateral Agents (for the benefit of the Credit Parties) and all other security interests granted hereby shall terminate with respect to all Obligations when (i) the Commitments shall have
expired or been terminated, (ii) the principal of and interest on each Loan and all fees and other Obligations (other than (A) contingent indemnification obligations for which claims have not been asserted and (B) unless the
Obligations have been accelerated as a result of the occurrence of any Event of Default or the Loan Parties are liquidating substantially all of their assets, subject to the first proviso hereto, Obligations in respect of Bank Products and Cash
Management Services) shall have been indefeasibly paid in full in cash, and (iii) all Letters of Credit shall have (A) expired or terminated and have been reduced to zero, (B) been Cash Collateralized to the extent required by the
Credit Agreement, or (C) been supported by another letter of credit in a manner reasonably satisfactory to the Issuing Lender and the Co-Collateral Agents, provided, however, that in connection with the termination of this
Agreement, the Co-Collateral Agents may require such indemnities or, in the case of the succeeding clause (y) only, collateral security as they shall reasonably deem necessary or appropriate to protect the Credit Parties against (x) loss
on account of credits previously applied to the Obligations that may subsequently be reversed or revoked, and (y) any Obligations that may then exist or thereafter arise with respect to Bank Products and Cash Management Services to the extent
not provided for thereunder; provided, further, that this Agreement and the security interest granted herein shall be reinstated if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored
by any Credit Party upon the bankruptcy or reorganization of any Borrower, Grantor or other Loan Party. At the request and sole expense of any Grantor following any such termination, the Co-Collateral Agents shall deliver to such Grantor any
Collateral held by the Co-Collateral Agents hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 

(b) If any of the Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Credit
Agreement, then the Collateral shall be released from the Liens created hereby without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to such Grantor or its transferee, as the case
may be, and the Co-Collateral Agents, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary or desirable to evidence the release of the Liens created hereby on
such Collateral. At the request and sole expense of the Borrowers, the Co-Collateral Agents shall release any Grantor from its obligations hereunder, including, without limitation, its obligations pursuant to Section 2 hereof, and shall execute
and deliver to the Borrowers all releases or other documentation reasonably necessary or desirable to evidence such release, in the event that all the equity interest of such Grantor shall be sold, transferred or otherwise disposed of in a
transaction permitted by the Credit Agreement and/or in the event that such Grantor shall dispose of all or substantially all of its assets and shall cease to own any Collateral. 

8.16 Jurisdiction, Etc. 
 (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United
States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such
federal court. Each Grantor hereby irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to Holdings at its address
specified pursuant to Section 9.02 of the Credit Agreement. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions

  
 24 

 
by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to
this Agreement or the other Loan Documents in the courts of any jurisdiction. 
 (b) Each of the parties hereto irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other
Loan Documents in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court. 
 8.17 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE ACTIONS OF THE AGENT, THE CO-COLLATERAL AGENTS OR ANY LENDER IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 8.18 Existing Guarantee and Collateral Agreement.
This Agreement shall amend and restate the Existing Guarantee and Collateral Agreement in its entirety, and the rights and obligations of the parties under the Existing Guarantee and Collateral Agreement shall be subsumed within and be governed by
this Agreement; provided, however, that the Co-Collateral Agents and the Grantors hereby agree that A&E Factory Services, LLC and Orchard Supply Hardware Corporation have been released from, and shall not be deemed a Grantor under,
this Agreement. 
 [Remainder of page intentionally left blank] 

  
 25 

  
 IN WITNESS WHEREOF,
each of the undersigned has caused this Agreement to be duly executed and delivered as of the date first above written. 
  

			
	Grantors:
	SEARS ROEBUCK ACCEPTANCE CORP.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KMART CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	SEARS HOLDINGS CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	A&E HOME DELIVERY, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	A&E LAWN & GARDEN, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	A&E SIGNATURE SERVICE, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 
			
	
	CALIFORNIA BUILDER APPLIANCES, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	FLORIDA BUILDER APPLIANCES, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KLC, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KMART HOLDING CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KMART MANAGEMENT CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KMART OF MICHIGAN, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	KMART OF WASHINGTON LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 
			
	KMART STORES OF ILLINOIS LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	KMART STORES OF TEXAS LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	KMART.COM LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	LANDS’ END, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	LANDS’ END DIRECT MERCHANTS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	MYGOFER LLC
		
	By:	 	Kmart Corporation, its Sole Member
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

			
	PRIVATE BRANDS, LTD.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 
					
	SEARS AUTHORIZED HOMETOWN STORES, LLC
		
	By:	 	Sears, Roebuck and Co., its Sole Member
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

			
	SEARS BRANDS MANAGEMENT CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SEARS HOLDINGS MANAGEMENT CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	SEARS HOME APPLIANCE SHOWROOMS, LLC
		
	By:	 	Sears, Roebuck and Co., its Sole Member
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

			
	SEARS HOME IMPROVEMENT PRODUCTS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SEARS OUTLET STORES, L.L.C.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 
			
	SEARS PROTECTION COMPANY
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SEARS PROTECTION COMPANY (FLORIDA), L.L.C.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SEARS, ROEBUCK AND CO.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SEARS, ROEBUCK DE PUERTO RICO, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	SOE, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	STARWEST, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 
			
	 Co-Collateral Agents: 
  

BANK OF AMERICA, N.A.

		
	By:	 	 
	 Name: Stephen J. Garvin

Title: Managing Director

 

			
	WELLS FARGO RETAIL FINANCE, LLC
		
	By:	 	 
	 Name:

Title:

  

			
	GENERAL ELECTRIC CAPITAL CORPORATION
		
	By:	 	 
	 Name:

Title:

  
 Signature
Page to Amended and Restated Guarantee and Collateral Agreement 

  
 Schedule 1

 GRANTORS AND NOTICE ADDRESSES OF GRANTORS 

 

			
	 Grantor
	  	 Notice Address

	 Sears Roebuck Acceptance Corp.
	  	 3711 Kennett Pike

Greenville, DE 19807

		
	 Kmart Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Holdings Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 A&E Home Delivery, LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 A&E Lawn & Garden, LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 A&E Signature Service, LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 California Builder Appliances, Inc.
	  	 6085 State Farm Dr., Suite 200
 Rohnert Park, CA 94928

		
	 Florida Builder Appliances, Inc.
	  	 1742 W. Atlantic Blvd.

Pompano Beach, FL 33069

		
	 KLC, Inc.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart Holding Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart Management Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart of Michigan, Inc.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart of Washington LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart Stores of Illinois LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart Stores of Texas LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Kmart.com LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Lands’ End Direct Merchants, Inc.
	  	 1 Lands’ End Lane

Dodgeville, WI 53595

			
	 Grantor
	  	 Notice Address

	 Lands’ End, Inc.
	  	 1 Lands’ End Lane

Dodgeville, WI 53595

		
	 MyGofer LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Private Brands, Ltd.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Authorized Hometown Stores, LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Brands Management Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Holdings Management Corporation
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Home Appliance Showrooms, LLC
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Home Improvement Products, Inc.
	  	 1024 Florida Central Parkway

Longwood, FL 32752

		
	 Sears Outlet Stores, L.L.C.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Protection Company
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears Protection Company (Florida), L.L.C.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears, Roebuck and Co.
	  	 3333 Beverly Road
 Hoffman
Estates, IL 60179

		
	 Sears, Roebuck de Puerto Rico, Inc.
	  	 Montehiedra Town Center-Kmart 2nd Flr.
 9410
Avenida Los Romeros
 San Juan, PR 00926

		
	 SOE, Inc.
	  	 960 Sherman Street, Suite B

San Diego, CA 92110

		
	 StarWest, LLC
	  	 9025 S. Kyrene Road
 Tempe,
AZ 85284

  
 Schedule 2

 FILINGS AND OTHER ACTIONS 
 REQUIRED TO PERFECT SECURITY INTERESTS 
 Uniform Commercial Code Filings

 UCC-1 Financing Statements to be filed against the Grantors specified below with the Secretary of State of the jurisdictions set forth
next to such Grantor’s name: 
  

			
	 Grantor
	  	 Jurisdiction

	 Sears Roebuck Acceptance Corp.
	  	Delaware
	 Kmart Corporation
	  	Michigan, Puerto Rico and Guam
	 Sears Holdings Corporation
	  	Delaware
	 A&E Home Delivery, LLC
	  	Delaware
	 A&E Lawn & Garden, LLC
	  	Delaware
	 A&E Signature Service, LLC
	  	Delaware
	 California Builder Appliances, Inc.
	  	Delaware
	 Florida Builder Appliances, Inc.
	  	Delaware
	 KLC, Inc.
	  	Texas
	 Kmart Holding Corporation
	  	Delaware
	 Kmart Management Corporation
	  	Michigan
	 Kmart of Michigan, Inc.
	  	Michigan
	 Kmart of Washington LLC
	  	Washington
	 Kmart Stores of Illinois LLC
	  	Illinois
	 Kmart Stores of Texas LLC
	  	Texas
	 Kmart.com LLC
	  	Delaware
	 Lands’ End Direct Merchants, Inc.
	  	Delaware
	 Lands’ End, Inc.
	  	Delaware
	 MyGofer LLC
	  	Delaware
	 Private Brands, Ltd.
	  	West Virginia
	 Sears Authorized Hometown Stores, LLC
	  	Delaware and Puerto Rico
	 Sears Brands Management Corporation
	  	Delaware and Puerto Rico
	 Sears Holdings Management Corporation
	  	Delaware and Puerto Rico
	 Sears Home Appliance Showrooms, LLC
	  	Delaware
	 Sears Home Improvement Products, Inc.
	  	Pennsylvania

			
	 Sears Outlet Stores, L.L.C.
	  	Delaware and Puerto Rico
	 Sears Protection Company
	  	Illinois
	 Sears Protection Company (Florida), L.L.C.
	  	Florida
	 Sears, Roebuck and Co.
	  	New York, Puerto Rico and Guam
	 Sears, Roebuck de Puerto Rico, Inc.
	  	Delaware and Puerto Rico
	 SOE, Inc.
	  	Delaware
	 StarWest, LLC
	  	Delaware

 Other Actions

  

	1.	Establishing control over Collateral for which perfection requires possession or control (as defined in the New York UCC), including cash and cash equivalents and
Deposit Accounts (for which an appropriate agreement with the applicable depository institution, broker, intermediary or other institution with which such assets are held would be needed). 

 

	2.	Any steps required for perfection of Collateral that cannot be perfected by possession or control of such Collateral or the filing of a UCC-1 financing statement in the
jurisdiction in which the applicable grantor is organized or domiciled. 

  
 Schedule 3

 LOCATION OF JURISDICTION OF ORGANIZATION 
  

					
	 Grantor
	  	 Jurisdiction of Organization
	  	 Identification
Number

	 Sears Roebuck Acceptance Corp.
	  	Delaware	  	0506120
	 Kmart Corporation
	  	Michigan	  	142467
	 Sears Holdings Corporation
	  	Delaware	  	3881360
	 A&E Home Delivery, LLC
	  	Delaware	  	3877029
	 A&E Lawn & Garden, LLC
	  	Delaware	  	3748766
	 A&E Signature Service, LLC
	  	Delaware	  	3748765
	 California Builder Appliances, Inc.
	  	Delaware	  	2862479
	 Florida Builder Appliances, Inc.
	  	Delaware	  	2143982
	 KLC, Inc.
	  	Texas	  	1276656
	 Kmart Holding Corporation
	  	Delaware	  	3648953
	 Kmart Management Corporation
	  	Michigan	  	47792C
	 Kmart of Michigan, Inc.
	  	Michigan	  	33800A
	 Kmart of Washington LLC
	  	Washington	  	602292492
	 Kmart Stores of Illinois LLC
	  	Illinois	  	00912026
	 Kmart Stores of Texas LLC
	  	Texas	  	800200422
	 Kmart.com LLC
	  	Delaware	  	3138594
	 Lands’ End Direct Merchants, Inc.
	  	Delaware	  	2863159
	 Lands’ End, Inc.
	  	Delaware	  	2099220
	 MyGofer LLC
	  	Delaware	  	4631467
	 Private Brands, Ltd.
	  	West Virginia	  	NONE
	 Sears Authorized Hometown Stores, LLC
	  	Delaware	  	4516552
	 Sears Brands Management Corporation
	  	Delaware	  	0617118
	 Sears Holdings Management Corporation
	  	Delaware	  	4041132
	 Sears Home Appliance Showrooms, LLC
	  	Delaware	  	4675850
	 Sears Home Improvement Products, Inc.
	  	Delaware	  	2204417
	 Sears Outlet Stores, L.L.C.
	  	Delaware	  	4516559
	 Sears Protection Company
	  	Illinois	  	61825622
	 Sears Protection Company (Florida), L.L.C.
	  	Florida	  	L03000020977

					
	 Sears, Roebuck and Co.
	  	New York	  	NONE
	 Sears, Roebuck de Puerto Rico, Inc.
	  	Delaware	  	0561919
	 SOE, Inc.
	  	Delaware	  	3816328
	 StarWest, LLC
	  	Delaware	  	3833707

  
 Annex 1

 FORM OF ASSUMPTION AGREEMENT 
 ASSUMPTION AGREEMENT, dated as of [                    ,
20        ], made by
[                                ] (the “Additional Grantor”), in favor
of Bank of America, N.A., Wells Fargo Retail Finance, LLC and General Electric Capital Corporation, as co-collateral agents (collectively in such capacity, the “Co-Collateral Agents”), for the banks and other financial institutions
or entities (the “Lenders”) parties to the Credit Agreement referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement. 

W I T N E S S E T H : 
 WHEREAS, Sears Holdings Corporation (“Holdings”), Sears Roebuck Acceptance Corp. (“SRAC”), Kmart Corporation (“Kmart Corp.” and, together with SRAC, the
“Borrowers”), the Lenders, Bank of America, N.A., as administrative agent and the Co-Collateral Agents, among others, have entered into a certain Amended and Restated Credit Agreement, dated as of May 21, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS, in connection with
the Credit Agreement, Holdings, the Borrowers and certain of their Affiliates (other than the Additional Grantor) have entered into a certain Amended and Restated Guarantee and Collateral Agreement, dated as of May 21, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Guarantee and Collateral Agreement”), in favor of the Co-Collateral Agents for the benefit of the Lenders; 

WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the Guarantee and Collateral Agreement; and

 WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the
Guarantee and Collateral Agreement; 
 NOW, THEREFORE, IT IS AGREED: 

1. Guarantee and Collateral Agreement. By executing and delivering this Assumption Agreement, the Additional Grantor, as provided
in Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting
the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the information set forth in the Schedules to the Guarantee
and Collateral Agreement. The Additional Grantor hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Guarantee and Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Assumption Agreement) as if made on and as of such date. 
 2. Governing Law. THIS
ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

[Remainder of Page intentionally left blank] 

  
 IN WITNESS WHEREOF,
the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written. 
  

			
	[ADDITIONAL GRANTOR]
		
	By:	 	 
		 	Name:
		 	Title:

  
 Annex 1-A to 

Assumption Agreement 
 Supplement to Schedule 1 
 Supplement to Schedule 2 

Supplement to Schedule 3 

1151342.1 

  
 EXHIBIT E

 FORM OF CREDIT CARD NOTIFICATION 
 CREDIT CARD NOTIFICATION 
 PREPARE ON BORROWER/LOAN PARTY LETTERHEAD -
ONE FOR EACH PROCESSOR 
 May     , 2009 

 

	To:	[Name and Address of Credit Card Processor] (“Processor”) 

 

	 	Re:	 [Sears, Roebuck and
Co.]1 

	 	    	Merchant Account Number:                     

 Dear Sir/Madam: 
 BANK OF AMERICA, N.A. (“Bank of America”), WELLS FARGO RETAIL FINANCE, LLC and GENERAL ELECTRIC CAPITAL CORPORATION are Co-Collateral Agents (each, a “Co-Collateral
Agent”, and collectively, the “Co-Collateral Agents”) with respect to a loan arrangement (the “Loan Arrangement”) evidenced by, among other things, the Amended and Restated Credit Agreement dated as of
May 21, 2009 (as the same may be amended, restated, supplemented or otherwise modified from time to time) by, among others, Kmart Corporation and Sears Roebuck Acceptance Corporation (collectively, the “Borrowers”), the
Co-Collateral Agents and the other parties thereto. [The obligations of the Borrowers have been guaranteed by [Sears, Roebuck and Co., a New York corporation (the
“Company”).]]2 To secure the obligations
of the undersigned under the Loan Arrangement, the undersigned has granted to the Control Co-Collateral Agent, for the benefit of the Co-Collateral Agents and certain other secured parties (together with the Co-Collateral Agents, the “Credit
Parties”), a lien on, among other things, all credit card charges submitted by the Company to Processor for processing and the amounts which Processor owes to the Company on account thereof (the “Credit Card Proceeds”). As
used herein, the term “Control Co-Collateral Agent” means, initially, Bank of America, provided that Bank of America may at any time deliver written notice to Processor advising Processor that the Control Co-Collateral Agent is no
longer Bank of America, following which time the term “Co-Collateral Agent” shall mean and refer to such other entity as may be specified on such notice. 
 The undersigned hereby instructs Processor that, until Processor receives written notification from the Control Co-Collateral Agent to the contrary, all amounts as may become due from time to time from
Processor to the Company (including, without limitation, Credit Card Proceeds) with respect to the above-referenced Merchant Account Number shall be transferred as follows: 

 

	 	(a)	By ACH, Depository Transfer Check, or Electronic Depository Transfer to: 

  

 

	1	 Insert name of appropriate Loan Party. 

	2	 Use reference to guaranty to the extent the Company is not a Borrower and insert name of appropriate Loan Party. Otherwise, define Kmart or SRAC as
“Company”. 

  
 1 

  

[                    
] 
 ABA
#                     
 Account Name: [Sears] 
 Account No.
                     
 or 
  

	 	(b)	As Processor may be otherwise instructed from time to time in writing by an officer of the Control Co-Collateral Agent. 

Upon the written request of the Control Co-Collateral Agent, a copy of each periodic statement issued by Processor to the Company should
be provided to the Control Co-Collateral Agent at the following address (which address may be changed upon seven (7) days’ written notice given to Processor by the Control Co-Collateral Agent): 

Bank of America, N.A. 
 100 Federal Street, 9th Floor 
 Boston, Massachusetts 02110

 Attention: Stephen J. Garvin 

Re:  Sears 
 Processor shall be fully protected in acting on any order or direction by the Control Co-Collateral Agent respecting the Credit Card Proceeds and other amounts without making any inquiry whatsoever as to
the Control Co-Collateral Agent’s right or authority to give such order or direction or as to the application of any payment made pursuant thereto. 
 This Credit Card Notification may be amended only with the prior written consent of the Control Co-Collateral Agent and may be terminated solely by prior written notice signed by an officer of the Control
Co-Collateral Agent. 
  

			
	Very truly yours,
	
	[SEARS, ROEBUCK AND CO.]3
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

  

	cc:	Bank of America, N.A., as Co-Collateral Agent 

	    	Wells Fargo Retail Finance, LLC, as Co-Collateral Agent 

	    	General Electric Capital Corporation, as Co-Collateral Agent 

  

 

	3	 Insert name of appropriate Loan Party. 

  
 2 

  
 EXHIBIT F 
  
 INTERCREDITOR AGREEMENT 
 by and between 

BANK OF AMERICA, N.A., 
 WELLS FARGO RETAIL FINANCE, LLC, and 
 GENERAL ELECTRIC CAPITAL CORPORATION

 as ABL Agents, 
 and 

[                    ], 

as [Second Lien] Agent 
 Dated as of [            ] 
  

 
  

  
 TABLE OF CONTENTS

  

							
	 	 	 	  	Page No.	 
	 ARTICLE 1 DEFINITIONS
	  	 	4	  
			
	 Section 1.1
	 	 UCC Definitions.
	  	 	4	  
	 Section 1.2
	 	 Other Definitions.
	  	 	4	  
	 Section 1.3
	 	 Rules of Construction.
	  	 	11	  
		
	 ARTICLE 2 LIEN PRIORITY
	  	 	11	  
			
	 Section 2.1
	 	 Priority of Liens.
	  	 	11	  
	 Section 2.2
	 	 Waiver of Right to Contest Liens.
	  	 	12	  
	 Section 2.3
	 	 Remedies Standstill.
	  	 	12	  
	 Section 2.4
	 	 Release of Liens.
	  	 	13	  
	 Section 2.5
	 	 No New Liens
	  	 	14	  
	 Section 2.6
	 	 Waiver of Marshalling.
	  	 	14	  
		
	 ARTICLE 3 ACTIONS OF THE PARTIES
	  	 	14	  
			
	 Section 3.1
	 	 Certain Actions Permitted.
	  	 	14	  
	 Section 3.2
	 	 Agent for Perfection.
	  	 	15	  
	 Section 3.3
	 	 Insurance.
	  	 	15	  
	 Section 3.4
	 	 No Additional Rights For the Loan Parties Hereunder.
	  	 	15	  
	 Section 3.5
	 	 Payments Over.
	  	 	15	  
		
	 ARTICLE 4 APPLICATION OF PROCEEDS
	  	 	16	  
			
	 Section 4.1
	 	 Application of Proceeds.
	  	 	16	  
	 Section 4.2
	 	 Specific Performance.
	  	 	17	  
		
	 ARTICLE 5 INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS
	  	 	17	  
			
	 Section 5.1
	 	 Notice of Acceptance and Other Waivers.
	  	 	17	  
	 Section 5.2
	 	 Modifications to ABL Documents and Second Lien Documents.
	  	 	18	  
	 Section 5.3
	 	 Reinstatement and Continuation of Agreement.
	  	 	19	  
		
	 ARTICLE 6 INSOLVENCY PROCEEDINGS
	  	 	20	  
			
	 Section 6.1
	 	 DIP Financing.
	  	 	20	  
	 Section 6.2
	 	 Relief From Stay.
	  	 	21	  
	 Section 6.3
	 	 No Contest; Adequate Protection.
	  	 	21	  
	 Section 6.4
	 	 Asset Sales.
	  	 	21	  
	 Section 6.5
	 	 Separate Grants of Security and Separate Classification.
	  	 	21	  
	 Section 6.6
	 	 Enforceability.
	  	 	22	  
	 Section 6.7
	 	 ABL Obligations Unconditional.
	  	 	22	  
	 Section 6.8
	 	 Second Lien Obligations Unconditional.
	  	 	22	  
		
	 ARTICLE 7 MISCELLANEOUS
	  	 	23	  
			
	 Section 7.1
	 	 Rights of Subrogation.
	  	 	23	  
	 Section 7.2
	 	 Further Assurances.
	  	 	23	  
	 Section 7.3
	 	 Representations.
	  	 	23	  

  
 i 

							
	 	 	 	  	Page No.	 
	 Section 7.4
	 	 Amendments.
	  	 	24	  
	 Section 7.5
	 	 Addresses for Notices.
	  	 	24	  
	 Section 7.6
	 	 No Waiver; Remedies.
	  	 	24	  
	 Section 7.7
	 	 Continuing Agreement, Transfer of Secured Obligations.
	  	 	24	  
	 Section 7.8
	 	 Governing Law; Entire Agreement
	  	 	25	  
	 Section 7.9
	 	 Counterparts.
	  	 	25	  
	 Section 7.10
	 	 No Third Party Beneficiaries.
	  	 	25	  
	 Section 7.11
	 	 Headings.
	  	 	25	  
	 Section 7.12
	 	 Severability.
	  	 	25	  
	 Section 7.13
	 	 Attorneys’ Fees.
	  	 	25	  
	 Section 7.14
	 	 VENUE; JURY TRIAL WAIVER.
	  	 	26	  
	 Section 7.15
	 	 Intercreditor Agreement.
	  	 	26	  
	 Section 7.16
	 	 No Warranties or Liability.
	  	 	27	  
	 Section 7.17
	 	 Conflicts.
	  	 	27	  
	 Section 7.18
	 	 Information Concerning Financial Condition of the Loan Parties.
	  	 	27	  

  
 ii 

  
 INTERCREDITOR AGREEMENT

 THIS INTERCREDITOR AGREEMENT (as amended, supplemented, restated or otherwise modified from time to time pursuant to the
terms hereof, this “Agreement”) is entered into as of [            ] between BANK OF AMERICA, N.A. (“Bank of America”), in its
capacity as co-collateral agent, WELLS FARGO RETAIL FINANCE, LLC, in its capacity as co-collateral agent, and GENERAL ELECTRIC CAPITAL CORPORATION, in its capacity as co-collateral agent (together with their respective successors and
assigns in such capacities, the “ABL Agents”) for (i) the financial institutions party from time to time to the ABL Credit Agreement referred to below (such financial institutions, together with their respective
successors, assigns and transferees, the “ABL Lenders”) and (ii) any ABL Bank Product Affiliates and ABL Cash Management Affiliates (each as defined below) (such ABL Bank Product Affiliates and ABL Cash Management
Affiliates, together with the ABL Agents and the ABL Lenders, the “ABL Secured Parties”) and [            ], in its capacities as [administrative agent and
collateral agent] (together with its successors and assigns in such capacities, the “Second Lien Agent”) for the financial institutions party from time to time to the
[            ] referred to below (such financial institutions, together with their respective successors, assigns and transferees, the “Second Lien Lenders”) (such
Second Lien Agent and the Second Lien Lenders, the “Second Lien Secured Parties”). 
 RECITALS

 A. Pursuant to that certain Amended and Restated Credit Agreement dated as of May 21, 2009 by and among Sears Roebuck
Acceptance Corp. and Kmart Corporation, (collectively, the “ABL Borrowers”), Sears Holdings Corporation (“Holdings”), the ABL Lenders and the ABL Agents (as such agreement may be amended, supplemented,
restated or otherwise modified from time to time in accordance with the terms hereof and thereof, the “ABL Credit Agreement”), the ABL Lenders have agreed to make certain loans and provide other financial accommodations to or
for the benefit of Holdings and certain of its subsidiaries. 
 B. Pursuant to a certain Amended and Restated Guarantee and
Collateral Agreement dated as of May 21, 2009 (as the same may be amended, supplemented, restated and/or otherwise modified, the “ABL Guarantee and Collateral Agreement”) by Holdings and certain of its subsidiaries
(including, without limitation, the ABL Borrowers) in favor of the ABL Agents for the benefit of the ABL Secured Parties, (1) Holdings and certain of its subsidiaries (collectively, with Holdings, the “ABL Guarantors”)
have guaranteed the payment and performance of the ABL Borrowers’ Obligations under the ABL Documents (as hereinafter defined), and (2) the ABL Borrowers and the ABL Guarantors (collectively, the “ABL Loan Parties”)
have granted a security interest and lien in certain of their assets (including, without limitation, credit card accounts receivables, pharmacy receivables, inventory and other assets related thereto) to secure the respective obligations of each of
the ABL Loan Parties under the ABL Documents. 
 C. Pursuant to that certain
[            ] dated as of the date hereof by and among [            ], (collectively, the “Second Lien
Borrowers”), the Second Lien Lenders and the Second Lien Agent (as such agreement may be amended, supplemented, restated or otherwise modified from time to time in accordance with the Second Liens hereof and thereof, the
“Second 

  
 3 

 
Lien Credit Agreement”), the Second Lien Lenders have agreed to make certain loans to the Second Lien Borrowers. 

D. Pursuant to a certain Second Lien Guarantee and Collateral Agreement dated as of the date hereof (the “Second Lien
Guarantee and Collateral Agreement) by Holdings and certain of its subsidiaries in favor of the Second Lien Agent for the benefit of the Second Lien Secured Parties, (1) Holdings and certain of its subsidiaries (collectively, with
Holdings, the “Second Lien Guarantors”) have guaranteed the payment and performance of the Second Lien Borrowers’ Obligations under the Second Lien Documents (as hereinafter defined), and (2) the Second Lien
Borrowers and the Second Lien Guarantors (collectively, the “Second Lien Loan Parties”) have granted a security interest and lien in certain of their assets (including, without limitation, credit card accounts receivables,
pharmacy receivables, inventory and other assets related thereto) to secure the respective obligations of each of the Second Lien Loan Parties under the Second Lien Documents. 
 E. Each of the ABL Agents (on behalf of the ABL Secured Parties) and the Second Lien Agent (on behalf of the Second Lien Secured Parties) desire to agree to the relative priority of Liens on the
Collateral (as defined below) and certain other rights, priorities and interests as provided herein. 
 NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 

Section 1.1 UCC Definitions. Unless otherwise defined herein, all capitalized terms used herein shall have the same meaning
herein as in the Uniform Commercial Code. 
 Section 1.2 Other Definitions. Subject to Section 1.1, as used
in this Agreement, the following terms shall have the meanings set forth below: 
 “ABL Agents” shall
have the meaning assigned to that term in the introduction to this Agreement and shall include any successors thereto as well as any Person designated as the “Agent”, “Administrative Agent”, “Collateral Agent” or
“Co-Collateral Agent” under any ABL Credit Agreement. 
 “ABL Bank Products Affiliate” shall
mean any ABL Lender or any Affiliate of any ABL Lender that has entered into a Swap Contract or other Bank Product with an ABL Loan Party with the obligations of such ABL Loan Party thereunder being secured by one or more ABL Collateral Documents,
together with their respective successors, assigns and transferees. 
 “ABL Borrowers” shall have the
meaning assigned to that term in the recitals to this Agreement. 
 “ABL Cash Management Affiliate”
shall mean any ABL Lender or any Affiliate of an ABL Lender that provides Cash Management Services to any of the ABL Loan Parties with the 

  
 4 

 
obligations of such ABL Loan Parties thereunder being secured by one or more ABL Collateral Documents, together with their respective successors, assigns and transferees. 

“ABL Collateral Documents” shall mean the ABL Guarantee and Collateral Agreement, together with all other
security agreements, account control agreements, freight forwarder and/or customs broker’s agreements, collateral access agreements, license agreements and other collateral documents executed and delivered in connection with the ABL Credit
Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time. 

“ABL Credit Agreement” shall have the meaning assigned to such term in the recitals to this Agreement and shall
include any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion of the ABL Obligations, whether by the same or any other agent, lender or group of lenders. 

“ABL Documents” shall mean the ABL Credit Agreement, the ABL Collateral Documents, all Swap Contracts and other
Bank Products between any ABL Loan Party and any ABL Bank Products Affiliate, all Cash Management Services agreements between any ABL Loan Party and any ABL Cash Management Affiliate, those other ancillary agreements to which any ABL Secured Party
is a party or beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any ABL Loan Party and delivered to the ABL Agents or any other ABL Secured Party, in connection with any of
the foregoing or with the ABL Credit Agreement or the ABL Guarantee and Collateral Agreement, in each case, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof and thereof.

 “ABL Guarantee and Collateral Agreement” shall have the meaning assigned to that term in the recitals
to this Agreement and shall also include any other agreement amending or replacing such agreement, whether by the same or any other agent, lender or group of lenders. 
 “ABL Guarantors” shall have the meaning assigned to that term in the recitals to this Agreement and shall also include any other Person who becomes a guarantor under the ABL
Guarantee and Collateral Agreement. 
 “ABL Lenders” shall have the meaning assigned to that term in the
introduction to this Agreement. 
 “ABL Loan Parties” shall have the meaning assigned to that term in
the recitals to this Agreement. 
 “ABL Obligations” shall mean all obligations of every nature of each
ABL Loan Party from time to time owed to the ABL Secured Parties, or any of them, under any ABL Document, whether for principal, interest, reimbursement of amounts drawn under letters of credit, payments for early termination of Swap Contracts,
fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the ABL Documents (including interest, fees, indemnification payments, expense reimbursements and other amounts which, but for the filing of a
petition in bankruptcy with respect to such ABL Loan Party, would have accrued on or been payable with respect to any ABL Obligation, whether or not a claim is allowed against such 

  
 5 

 
ABL Loan Party for such interest, fees, indemnification payments, expense reimbursements and other amounts in the related bankruptcy proceeding), as amended, restated, modified, renewed,
refunded, replaced or refinanced in whole or in part from time to time in accordance with the terms hereof and thereof. 

“ABL Recovery” shall have the meaning set forth in Section 5.3(a). 

“ABL Secured Parties” shall have the meaning to that term in the introduction to this Agreement. 

“Affiliate” shall mean, with respect to a specified Person, any other Person that directly or indirectly through
one or more intermediaries Controls, is Controlled by or is under common Control with the Person specified. 

“Agent(s)” means individually the ABL Agents or the Second Lien Agent and collectively means both the ABL Agents
and the Second Lien Agent. 
 “Agreement” shall have the meaning assigned to that term in the
introduction to this Agreement. 
 “Bank Products” shall have the meaning provided in the ABL Credit
Agreement. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code , as now or hereafter in
effect or any successor thereto. 
 “Borrower” shall mean the ABL Borrowers and the Second Lien
Borrowers. 
 “Business Day” shall mean any day other than (a) Saturday or Sunday; (b) any day
on which banks in Boston, Massachusetts or New York City, New York, generally are not open to the general public for the purpose of conducting commercial banking business; or (c) a day on which the principal office of the Second Lien Agent or
any ABL Agents is not open to the general public to conduct business, if such office is ordinarily open to the general public to conduct business. 
 “Cash Management Services” shall have the meaning provided in the ABL Credit Agreement. 
 “Collateral” shall mean all Property now owned or hereafter acquired by any Borrower or any Guarantor in or upon which a Lien is granted or purported to be granted to the ABL
Agents or the Second Lien Agent under any of the ABL Collateral Documents or the Second Lien Collateral Documents, together with all substitutions, additions, products and Proceeds thereof. 

“Control Collateral” shall mean any Collateral consisting of any Deposit Account, Instruments and any other
Collateral as to which a Lien may be perfected through possession or control by the secured party, or any agent therefor. 

“Credit Documents” shall mean the ABL Documents and the Second Lien Documents. 

  
 6 

  
 “Debtor
Relief Laws” shall mean the Bankruptcy Code as now or hereafter in effect or any successor thereto, as well as all other liquidation, conservatorship, bankruptcy, assignment for benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief laws of the United States federal or state law or of any applicable foreign law from time to time in effect affecting the rights of creditors generally. 

“DIP Financing” shall have the meaning set forth in Section 6.1(a). 

“Discharge of ABL Obligations” shall mean (a) the payment in full in cash of all outstanding ABL Obligations
including, with respect to (i) amounts available to be drawn under outstanding letters of credit issued thereunder (or indemnities or other undertakings issued pursuant thereto in respect of outstanding letters of credit), the cancellation of
such letters of credit or the delivery or provision of money or backstop letters of credit in respect thereof in compliance with the terms of any ABL Credit Agreement (which shall not exceed an amount equal to 105% of the aggregate undrawn amount of
such letters of credit) and (ii) outstanding ABL Obligations with respect to Bank Products and Cash Management Services (or indemnities or other undertakings issued pursuant thereto in respect of outstanding Bank Products and Cash Management
Services) or the delivery or provision of cash collateral in respect thereof in compliance with the terms of any ABL Credit Agreement and (b) the termination of all commitments to extend credit under the ABL Documents. 

“Discharge of Second Lien Obligations” shall mean the payment in full in cash of all outstanding Second Lien
Obligations. 
 “Event of Default” shall mean an Event of Default as defined in the ABL Credit Agreement
or the Second Lien Credit Agreement, as applicable. 
 “Exercise of Any Secured Creditor Remedies” or
“Exercise of Secured Creditor Remedies” shall mean, except as otherwise provided in the final sentence of this definition: 
 (a) the taking by any Secured Party of any action to enforce or realize upon any Lien, including the institution of any foreclosure proceedings or the noticing of any public or private sale pursuant to
Article 9 of the Uniform Commercial Code or other applicable law; 
 (b) the exercise by any Secured Party of any
right or remedy provided to a secured creditor on account of a Lien under any of the Credit Documents, under applicable law, in an Insolvency Proceeding or otherwise, including the election to retain any of the Collateral in satisfaction of a Lien;

 (c) the taking of any action by any Secured Party or the exercise of any right or remedy by any Secured Party
in respect of the collection on, set off against, marshaling of, injunction respecting or foreclosure on the Collateral or the Proceeds thereof; 
 (d) the appointment on the application of a Secured Party, of a receiver, receiver and manager or interim receiver of all or part of the Collateral; 

  
 7 

  
 (e) the
sale, lease, license, or other disposition of all or any portion of the Collateral by private or public sale conducted by a Secured Party or any other means at the direction of a Secured Party permissible under applicable law; and 

(f) the exercise of any other right of a secured creditor under Part 6 of Article 9 of the Uniform Commercial Code or
under provisions of similar effect other applicable law. 
 For the avoidance of doubt, none of the following shall be deemed to constitute an
Exercise of Secured Creditor Remedies: (i) the filing of a proof of claim in any Insolvency Proceeding or seeking adequate protection (subject to Section 6.3 below), (ii) the exercise of rights by the ABL Agents during the continuance
of a Cash Dominion Event (as defined in the ABL Credit Agreement), including, without limitation, the notification of account debtors, depository institutions or any other Person to deliver proceeds of Collateral to the ABL Agents, (iii) the
consent by the ABL Agents to a store closing sale, going out of business sale or other disposition by any Loan Party of any of the Collateral, (iv) the reduction of advance rates or sub-limits by the ABL Agents, or (v) the imposition of
Availability Reserves or Inventory Reserves (in each case as defined in the ABL Credit Agreement) by the ABL Agents. 

“Governmental Authority” shall mean any nation or government, any state or other political subdivision thereof
and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
 “Guarantor” shall mean any of the ABL Guarantors or Second Lien Guarantors. 
 “Indebtedness” shall mean (i) all obligations of a Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other
similar instruments; (ii) the maximum amount of all letters of credit, bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or for the account of such Person;
(iii) obligations of such Person under any Swap Contract; (iv) indebtedness secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements
and mortgage, industrial revenue bond, industrial development bond and similar financings), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse, and (v) any guarantees of the foregoing. 

“Insolvency Proceeding” shall mean (a) any case, action or proceeding before any court or other Governmental
Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors
or other similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each case covered by clauses (a) and (b) undertaken under any Debtor Relief Laws. 

“Lender(s)” means individually, the ABL Lenders or the Second Lien Lenders and collectively means all of the ABL
Lenders and the Second Lien Lenders. 

  
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“Lien” shall mean, with respect to any asset, any mortgage, deed of trust, lien (statutory or otherwise), pledge,
hypothecation, encumbrance, collateral assignment, charge or security interest in, on or of such asset. 
 “Lien
Priority” shall mean with respect to any Lien of the ABL Secured Parties or the Second Lien Secured Parties in the Collateral, the order of priority of such Lien as specified in Section 2.1. 

“Loan Parties” shall mean the ABL Loan Parties and the Second Lien Loan Parties. 

“Party” shall mean the ABL Agents or the Second Lien Agent, and “Parties” shall mean both
the ABL Agents and the Second Lien Agent. 
 “Person” shall mean an individual, partnership,
corporation, limited liability company, unlimited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 

“Proceeds” shall mean (a) all “proceeds,” as defined in Article 9 of the Uniform Commercial Code,
with respect to the Collateral, and (b) whatever is recoverable or recovered when any Collateral is sold, exchanged, collected, or disposed of, whether voluntarily or involuntarily. 

“Property” shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible
or intangible. 
 “Second Lien Agent” shall have the meaning assigned to that term in the introduction
to this Agreement and shall include any successor thereto. 
 “Second Lien Borrowers” shall have the
meaning assigned to that term in the introduction to this Agreement. 
 “Second Lien Collateral
Documents” shall mean the Second Lien Guarantee and Collateral Agreement, together with all other security agreements, account control agreements, freight forwarder and/or customs broker’s agreements, collateral access agreements,
license agreements and other collateral documents executed and delivered in connection with the Second Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time. 

“Second Lien Credit Agreement” shall have the meaning assigned to that term in the recitals to this Agreement and
shall include any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion of the Second Lien Obligations, whether by the same or any other agent, lender or group of lenders.

 “Second Lien Documents” shall mean the Second Lien Credit Agreement, the Second Lien Collateral
Documents, and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Second Lien Loan Party or any of its respective Affiliates, and delivered to the Second Lien Agent, in connection with any
of the foregoing or any Second Lien Credit Agreement, in each case as the same may be amended, supplemented, 

  
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restated or otherwise modified from time to time in accordance with the Second Liens hereof and thereof. 
 “Second Lien Guarantee and Collateral Agreement” shall have the meaning assigned to that term in the recitals to this Agreement. 

“Second Lien Guarantors” shall have the meaning assigned to that term in the recitals to this Agreement and shall
also include any other Person who becomes a guarantor under the Second Lien Guarantee and Collateral Agreement. 

“Second Lien Lenders” shall have the meaning assigned to that term in the introduction to this Agreement.

 “Second Lien Loan Parties” shall have the meaning assigned to that term in the recitals to this
Agreement. 
 “Second Lien Obligations” shall mean all obligations of every nature of each Second Lien
Loan Party from time to time owed to the Second Lien Secured Parties or any of them, under any Second Lien Document, whether for principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to such
Second Lien Loan Party, would have accrued on any Second Lien Obligation to the extent a claim is allowed against such Second Lien Loan Party for such interest in the related bankruptcy proceeding), fees, expenses, indemnification or otherwise, and
all other amounts owing or due under the terms of the Second Lien Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time. 

“Second Lien Recovery” shall have the meaning set forth in Section 5.3(b). 

“Second Lien Secured Parties” shall have the meaning assigned to that term in the introduction to this Agreement.

 “Secured Parties” shall mean the ABL Secured Parties and the Second Lien Secured Parties. 

“Subsidiary” shall mean with respect to any Person (the “parent”) at any date, any corporation,
partnership, joint venture, limited liability company, trust, or other entity (a) of which equity interests representing more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 

“Swap Contract” shall have the meaning provided in the ABL Credit Agreement. 

“Uniform Commercial Code” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect
in the State of New York; provided that to the extent that the Uniform Commercial Code is used to define any term in any security document and such term is defined differently in differing Articles of the Uniform Commercial Code, the
definition of such term contained in Article 9 shall govern; provided further that in the event that, by reason of 

  
 10 

 
mandatory provisions of law, any or all of the attachment, perfection, publication or priority of, or remedies with respect to, Liens of any Party is governed by the Uniform Commercial Code or
foreign personal property security laws as enacted and in effect in a jurisdiction other than the State of New York, the term “Uniform Commercial Code” will mean the Uniform Commercial Code or such foreign personal property security laws
as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 

Section 1.3 Rules of Construction. Unless the context of this Agreement clearly requires otherwise, references to the
plural include the singular, references to the singular include the plural, the term “including” is not limiting and shall be deemed to be followed by the phrase “without limitation,” and the term “or” has, except where
otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a
whole and not to any particular provision of this Agreement. Article, section, subsection, clause, schedule and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement to any agreement, instrument,
or document shall include all alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements thereto and thereof, as applicable (subject to any restrictions on such
alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Person’s
successors and assigns. Any reference herein to the repayment in full of an obligation shall mean the payment in full in cash of such obligation, or in such other manner as may be approved in writing by the requisite holders or representatives in
respect of such obligation. Any reference herein to a time of day means Eastern time. 
 ARTICLE 2 

LIEN PRIORITY 
 Section 2.1 Priority of Liens. 
 (a) Notwithstanding (i) the
date, time, method, manner, or order of grant, attachment, or perfection of any Liens granted to the ABL Secured Parties in respect of all or any portion of the Collateral or of any Liens granted to the Second Lien Secured Parties in respect of all
or any portion of the Collateral and regardless of how any such Lien was acquired (whether by grant, statute, operation of law, subrogation or otherwise), (ii) the order or time of filing or recordation of any document or instrument for
perfecting the Liens in favor of the ABL Agents for the benefit of the ABL Secured Parties or the Second Lien Agent for the benefit of the Second Lien Secured Parties in any Collateral, (iii) any provision of the Uniform Commercial Code, Debtor
Relief Laws or any other applicable law, or of the ABL Documents or the Second Lien Documents, (iv) whether the ABL Agents or the Second Lien Agent, in each case, either directly or through agents, holds possession of, or has control over, all
or any part of the Collateral, (v) the date on which the ABL Obligations or the Second Lien Obligations are advanced or made available to the Loan Parties, or (vi) any failure of the ABL Agents or the Second Lien Agent to perfect its Lien
in the Collateral, the subordination of any Lien on the Collateral securing any ABL Obligations or Second Lien Obligations, as applicable, to any Lien securing any other obligation of any Borrower or Guarantor, or the avoidance, invalidation or

  
 11 

 
lapse of any Lien on the Collateral securing any ABL Obligations or Second Lien Obligations, the ABL Agents, on behalf of themselves and the ABL Secured Parties, and the Second Lien Agent, on
behalf of itself and the Second Lien Secured Parties, hereby agree that the following priorities apply to the Collateral: 
 (1) First, to the ABL Agents and the ABL Lenders to the extent of the ABL Obligations; 
 (2) Second, to the Second Lien Agent and the Second Lien Lenders to the extent of the Second Lien Obligations. 
 (b) The ABL Agents, for and on behalf of themselves and the ABL Secured Parties, acknowledge and agree that, concurrently herewith, the Second Lien Agent, for the benefit of itself and the Second Lien
Secured Parties, has been, or may be, granted Liens upon all of the Collateral and the ABL Agents hereby consents thereto. The subordination of Lien by the Second Lien Agent in favor of the ABL Agents as set forth herein shall not be deemed to
subordinate the Second Lien Agent’s Liens to the Liens of any other Person. 
 Section 2.2 Waiver of Right to Contest
Liens. 
 (a) The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that it and
they shall not (and hereby waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency
Proceeding), the validity, priority, enforceability, or perfection of the Liens of the ABL Agents and the ABL Secured Parties in respect of the Collateral or the provisions of this Agreement. The Second Lien Agent, for itself and on behalf of the
Second Lien Secured Parties, agrees that none of the Second Lien Agent or the Second Lien Secured Parties will take any action that would interfere with any Exercise of Secured Creditor Remedies undertaken by the ABL Agents or any ABL Secured Party
under the ABL Documents with respect to the Collateral. The Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, hereby waives any and all rights it or the Second Lien Secured Parties may have as a junior lien creditor or
otherwise to contest, protest, object to, or interfere with the manner in which the ABL Agents or any ABL Lender seeks to enforce its Liens in any Collateral. The foregoing shall not be construed to prohibit the Second Lien Agent from enforcing the
provisions of this Agreement or otherwise acting in accordance with this Agreement. 
 (b) The ABL Agents, for and on behalf of
themselves and the ABL Secured Parties, agrees that it and they shall not (and hereby waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging), directly or indirectly, whether
or not in any proceeding (including in any Insolvency Proceeding), the validity, priority, enforceability, or perfection of the Liens of the Second Lien Agent or the Second Lien Secured Parties in respect of the Collateral or the provisions of this
Agreement. The foregoing shall not be construed to prohibit the ABL Agents from enforcing the provisions of this Agreement or otherwise acting in accordance with this Agreement. 

Section 2.3 Remedies Standstill. 

  
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 (a) The Second Lien
Agent, on behalf of itself and the Second Lien Secured Parties, agrees that, from the date hereof until the date upon which the Discharge of ABL Obligations shall have occurred, neither the Second Lien Agent nor any Second Lien Secured Party will
Exercise Any Secured Creditor Remedies with respect to any of the Collateral, and will not take, receive or accept any Proceeds of Collateral. From and after the date upon which the Discharge of ABL Obligations shall have occurred, the Second Lien
Agent or any Second Lien Secured Party may Exercise Any Secured Creditor Remedies under the Second Lien Documents or applicable law as to any Collateral. 
 (b) Notwithstanding the provisions of Sections 2.3(a) or any other provision of this Agreement, nothing contained herein shall be construed to prevent any Agent or any Secured Party from (i) filing a
claim or statement of interest with respect to the ABL Obligations or Second Lien Obligations owed to it in any Insolvency Proceeding commenced by or against any Loan Party, (ii) taking any action (not adverse to the Lien Priority of the Liens
of the ABL Agents or ABL Secured Parties on the Collateral or the rights of the ABL Agent or any of the ABL Secured Parties to Exercise Any Secured Creditor Remedies in respect thereof) in order to create, perfect, preserve or protect (but not
enforce its Lien) on any Collateral, (iii) filing any necessary or responsive pleadings in opposition to any motion, adversary proceeding or other pleading filed by any Person objecting to or otherwise seeking disallowance of the claim or Lien
of such Agent or Secured Party, (iv) voting on any plan of reorganization or filing any proof of claim in any Insolvency Proceeding of any Loan Party, or (v) objecting to the proposed retention of Collateral by the other Agent or any other
Secured Party in full or partial satisfaction of any ABL Obligations or Second Lien Obligations due to such other Agent or Secured Party, in each case (i) through (v) above to the extent not inconsistent with the terms of this Agreement.

 (c) Each of the Second Lien Agent, each Second Lien Secured Party, the ABL Agents and each ABL Secured Party agrees
(i) that it will not institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim, in the case of the Second Lien Agent and each Second Lien Secured Party, against either the ABL Agents or
any other ABL Secured Party, and in the case of the ABL Agents and each other ABL Secured Party, against either the Second Lien Agent or any other Second Lien Secured Party, seeking damages from or other relief by way of specific performance,
instructions or otherwise, with respect to, any action taken or omitted to be taken by such Person with respect to the Collateral which is consistent with the terms of this Agreement, and none of such Parties shall be liable for any such action
taken or omitted to be taken, or (ii) it will not be a petitioning creditor or otherwise assist in the filing of an involuntary Insolvency Proceeding. 
 Section 2.4 Release of Liens. 
 In the event of (A) any private
or public sale of all or any portion of the Collateral in connection with any Exercise of Secured Creditor Remedies by the ABL Agents or by the ABL Loan Parties with the consent of the ABL Agents, or (B) any sale, transfer or other disposition
of all or any portion of the Collateral, so long as such sale, transfer or other disposition is then permitted by the ABL Documents or consented to by the requisite ABL Lenders, the Second Lien Agent agrees, on behalf of itself and the Second Lien
Secured Parties that such sale, transfer or other disposition will be free and clear of the Liens on such Collateral securing the Second Lien Obligations, and the Second Lien Agent’s and the Second Lien Secured Parties’ Liens with

  
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respect to the Collateral so sold, transferred, or disposed shall terminate and be automatically released without further action concurrently with, and to the same extent as, the release of the
ABL Secured Parties’ Liens on such Collateral. In furtherance of, and subject to, the foregoing, the Second Lien Agent agrees that it will promptly execute any and all Lien releases or other documents reasonably requested by the ABL Agents in
connection therewith. The Second Lien Agent hereby appoints the ABL Agents and any officer or duly authorized person of the ABL Agents, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power of attorney
in the place and stead of the Second Lien Agent and in the name of the Second Lien Agent or in the ABL Agents’ own name, from time to time, in the ABL Agents’ sole discretion, for the purposes of carrying out the terms of this paragraph,
to take any and all appropriate action and to execute and deliver any and all documents and instruments as may be necessary or desirable to accomplish the purposes of this paragraph, including any financing statements, endorsements, assignments,
releases or other documents or instruments of transfer (which appointment, being coupled with an interest, is irrevocable). 

Section 2.5 No New Liens. Until the date upon which all ABL Obligations shall have been paid in full and all commitments
under the ABL Documents terminated, the parties hereto agree that no Second Lien Secured Party shall acquire or hold any Lien on any assets of any Loan Party securing any Second Lien Obligation which assets are not also subject to the Lien of the
ABL Agents under the ABL Documents. If any Second Lien Secured Party shall nonetheless acquire or hold any Lien on any assets of any Loan Party securing any Second Lien Obligation which assets are not also subject to the Lien of the ABL Agents under
the ABL Documents, then the Second Lien Agent (or the relevant Second Lien Secured Party) shall, without the need for any further consent of any other Second Lien Secured Party, any Second Lien Borrower or any Second Lien Guarantor and
notwithstanding anything to the contrary in any other Second Lien Document, be deemed to also hold and have held such Lien as agent or bailee for the benefit of the ABL Agents as security for the ABL Obligations (subject to the terms of the ABL
Credit Agreement) and shall promptly notify the ABL Agents in writing of the existence of such Lien. 
 Section 2.6 Waiver
of Marshalling. 
 Until the Discharge of ABL Obligations, the Second Lien Agent, on behalf of itself and the Second
Lien Secured Parties, 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 Collateral or any other similar rights a junior secured creditor may have under applicable law. 
 ARTICLE 3 
 ACTIONS OF THE PARTIES 

Section 3.1 Certain Actions Permitted. The Second Lien Agent and the ABL Agents may make such demands or file such claims
in respect of the Second Lien Obligations or the ABL Obligations, as applicable, as are necessary to prevent the waiver or bar of such claims under applicable statutes of limitations or other statutes, court orders, or rules of procedure at any
time. 

  
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 Section 3.2
Agent for Perfection. The ABL Agents, for and on behalf of themselves and each ABL Secured Party, and the Second Lien Agent, for and on behalf of itself and each Second Lien Secured Party, as applicable, each agree to hold all Collateral
in their respective possession, custody, or control (or in the possession, custody, or control of agents or bailees for either) as agent for the other solely for the purpose of perfecting the security interest granted to each in such Collateral,
subject to the terms and conditions of this Section 3.2. None of the ABL Agents, the ABL Secured Parties, the Second Lien Agent, or the Second Lien Secured Parties, as applicable, shall have any obligation whatsoever to the others to assure
that the Collateral is genuine or owned by any Borrower, any Guarantor, or any other Person or to preserve rights or benefits of any Person. The duties or responsibilities of the ABL Agents and the Second Lien Agent under this Section 3.2 are
and shall be limited solely to holding or maintaining control of the Control Collateral as agent for the other Party for purposes of perfecting the Lien held by the Second Lien Agent or the ABL Agents, as applicable. The ABL Agents are not and shall
not be deemed to be a fiduciary of any kind for the Second Lien Secured Parties or any other Person. The Second Lien Agent is not and shall not be deemed to be a fiduciary of any kind for the ABL Secured Parties, or any other Person. 

Section 3.3 Insurance. Proceeds of Collateral include insurance proceeds and, therefore, the Lien Priority shall govern the
ultimate disposition of casualty insurance proceeds. The ABL Agents and the Second Lien Agent shall each be named as additional insured or loss payee, as applicable, with respect to all insurance policies relating to the Collateral. Until Discharge
of the ABL Obligations, the ABL Agents shall have the sole and exclusive right, as against the Second Lien Agent, to adjust settlement of insurance claims in the event of any covered loss, theft or destruction of Collateral and take other such
actions with respect to insurance covering the Collateral as set forth in the ABL Credit Agreement. All proceeds of such insurance shall be remitted to the ABL Agents, and the Second Lien Agent shall cooperate (if necessary) in a reasonable manner
in effecting the payment of insurance proceeds in accordance with Section 4.1 hereof. The ABL Agents are hereby authorized to make any endorsements as agent for the Second Lien Agent or any such other Second Lien Secured Parties in accordance
with the power of attorney granted pursuant to Section 2.4 above. 
 Section 3.4 No Additional Rights For the Loan
Parties Hereunder. If any ABL Secured Party or Second Lien Secured Party shall enforce its rights or remedies in violation of the terms of this Agreement, the Loan Parties shall not be entitled to use such violation as a defense to any
action by any ABL Secured Party or Second Lien Secured Party, nor to assert such violation as a counterclaim or basis for set off or recoupment against any ABL Secured Party or Second Lien Secured Party. 

Section 3.5 Payments Over. 
 So long as the Discharge of ABL Obligations has not occurred, any Collateral or Proceeds thereof received by the Second Lien Agent or any Second Lien Secured Parties in connection with the exercise of any
right or remedy (including set off) relating to the Collateral in contravention of this Agreement shall be segregated and held in trust and forthwith paid over to the ABL Agents for the benefit of the ABL Secured Parties in the same form as
received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. The ABL Agents are hereby authorized to make any such endorsements as agent for the Second Lien

  
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Agent or any such Second Lien Secured Parties. This authorization is coupled with an interest and is irrevocable until such time as this Agreement is terminated in accordance with its terms.

 ARTICLE 4 
 APPLICATION OF PROCEEDS 
 Section 4.1 Application of
Proceeds. 
 (a) Revolving Nature of ABL Obligations. The Second Lien Agent, for and on behalf of itself and the
Second Lien Secured Parties, expressly acknowledges and agrees that (i) the ABL Credit Agreement includes a revolving commitment, that in the ordinary course of business the ABL Agents and the ABL Lenders will apply payments and make advances
thereunder, and that no application of any Collateral or the release of any Lien by the ABL Agents upon any portion of the Collateral in connection with a permitted disposition by the ABL Loan Parties under any ABL Credit Agreement shall constitute
the Exercise of Secured Creditor Remedies under this Agreement; (ii) the amount of the ABL Obligations that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed, and that the terms of the
ABL Obligations may be modified, extended or amended from time to time, and that the aggregate amount of the ABL Obligations may be increased, replaced or refinanced, in each event, without notice to or consent by the Second Lien Secured Parties and
without affecting the provisions hereof; and (iii) all Collateral received by the ABL Agents may be applied, reversed, reapplied or credited, in whole or in part, to the ABL Obligations at any time. The Lien Priority shall not be altered or
otherwise affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or refinancing of either the ABL Obligations or the Second Lien Obligations, or any portion thereof.

 (b) Application of Proceeds of Collateral. The ABL Agents and the Second Lien Agent hereby agree that all Collateral
and all other Proceeds thereof, received by either of them in connection with any Exercise of Secured Creditor Remedies with respect to the Collateral shall be applied, 

first, to the payment of costs and expenses of the ABL Agents in connection with such Exercise of Secured Creditor
Remedies to the extent provided in the ABL Documents, 
 second, to the payment of the ABL Obligations in
accordance with the ABL Documents until the Discharge of ABL Obligations shall have occurred, 
 third, to
the payment of the Second Lien Obligations in accordance with the Second Lien Documents until the Discharge of Second Lien Obligations shall have occurred, and 
 fourth, the balance, if any, to the Loan Parties or as a court of competent jurisdiction may direct. 
 (c) Limited Obligation or Liability. In exercising remedies, whether as a secured creditor or otherwise, the ABL Agents shall have no obligation or liability to the Second

  
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Lien Agent or to any Second Lien Secured Party regarding the adequacy of any Proceeds or for any action or omission, except solely for an action or omission that breaches the express obligations
undertaken by each Party under the terms of this Agreement. Notwithstanding anything to the contrary herein contained, none of the Parties hereto waives any claim that it may have against a Secured Party on the grounds that any sale, transfer or
other disposition by the Secured Party was not commercially reasonable in every respect as required by the Uniform Commercial Code. 
 (d) Turnover of Collateral. Upon the Discharge of the ABL Obligations, the ABL Agents shall deliver to the Second Lien Agent or shall execute such documents as the Second Lien Agent may reasonably
request (at the expense of the Second Lien Borrower) to enable the Second Lien Agent to have control over any Control Collateral still in the ABL Agents’ possession, custody, or control in the same form as received with any necessary
endorsements, or as a court of competent jurisdiction may otherwise direct, subject to the reinstatement provisions of Section 5.3 below. 
 Section 4.2 Specific Performance. Each of the ABL Agents and the Second Lien Agent is hereby authorized to demand specific performance of this Agreement, whether or not any Borrower or any
Guarantor shall have complied with any of the provisions of any of the Credit Documents, at any time when the other Party shall have failed to comply with any of the provisions of this Agreement applicable to it. Each of the ABL Agents, for and on
behalf of itself and the ABL Secured Parties, and the Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law that might be asserted as a bar
to such remedy of specific performance. 
 ARTICLE 5 

INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS 
 Section 5.1 Notice of Acceptance and Other Waivers. 
 (a) All ABL
Obligations at any time made or incurred by any Borrower or any Guarantor shall be deemed to have been made or incurred in reliance upon this Agreement, and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby
waives notice of acceptance, or proof of reliance by the ABL Agents or any ABL Secured Party of this Agreement and notice of the existence, increase, renewal, extension, accrual, creation, or non-payment of all or any part of the ABL Obligations.

 (b) None of the ABL Agents, any ABL Secured Party, or any of their respective Affiliates, directors, officers, employees, or
agents shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds, or for any delay in doing so, or shall be under any obligation to sell or otherwise dispose of any Collateral or Proceeds thereof or to
take any other action whatsoever with regard to the Collateral or any part or Proceeds thereof. If the ABL Agents or any ABL Secured Party honors (or fails to honor) a request by any Borrower for an extension of credit pursuant to any ABL Credit
Agreement or any of the other ABL Documents, whether the ABL Agents or any ABL Secured Party have knowledge that the honoring of (or failure to honor) any such request would constitute a default under the terms of any Second Lien Credit Agreement or
any other Second Lien Document or an 

  
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act, condition, or event that, with the giving of notice or the passage of time, or both, would constitute such a default, or if the ABL Agents or any ABL Secured Party otherwise should exercise
any of its contractual rights or remedies under any ABL Documents (subject to the express terms and conditions hereof), neither the ABL Agents nor any ABL Secured Party shall have any liability whatsoever to the Second Lien Agent or any Second Lien
Secured Party as a result of such action, omission, or exercise (so long as any such exercise does not breach the express terms and provisions of this Agreement). The ABL Agents and the ABL Secured Parties shall be entitled to manage and supervise
their loans and extensions of credit under any ABL Credit Agreement and any of the other ABL Documents as they may, in their sole discretion, deem appropriate, and may manage their loans and extensions of credit without regard to any rights or
interests that the Second Lien Agent or any of the Second Lien Secured Parties have in the Collateral, except as otherwise expressly set forth in this Agreement. The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees
that neither the ABL Agents nor any ABL Secured Party shall incur any liability as a result of a sale, lease, license, application, or other disposition of all or any portion of the Collateral or Proceeds thereof, pursuant to the ABL Documents, so
long as such disposition is conducted in accordance with mandatory provisions of applicable law and does not breach the provisions of this Agreement. 
 Section 5.2 Modifications to ABL Documents and Second Lien Documents. 
 (a) The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby agrees that, without affecting the obligations of the Second Lien Agent and the Second Lien Secured Parties
hereunder, the ABL Agents and the ABL Secured Parties may, at any time and from time to time, in their sole discretion without the consent of or notice to the Second Lien Agent or any Second Lien Secured Party, and without incurring any liability to
the Second Lien Agent or any Second Lien Secured Party or impairing or releasing the Lien Priority provided for herein, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the ABL Documents in
any manner whatsoever. 
 (b) The ABL Agents, on behalf of themselves and the ABL Secured Parties, hereby agree that, without
affecting the obligations of the ABL Agents and the ABL Secured Parties hereunder, the Second Lien Agent and the Second Lien Secured Parties may, at any time and from time to time, in their sole discretion without the consent of or notice to the ABL
Agents or any ABL Secured Party, and without incurring any liability to the ABL Agents or any ABL Secured Party or impairing or releasing the Lien Priority provided for herein, amend, restate, supplement, replace, refinance, extend, consolidate,
restructure, or otherwise modify any of the Second Lien Documents in any manner whatsoever except that the following shall require the prior written consent of the ABL Agents: 

(i) except as provided in Section 2.5, retain or obtain a Lien on any Property of any Person to secure any of the
Second Lien Obligations; or 
 (ii) amend the Second Lien Documents in any manner which would have the effect of
contravening the terms of this Agreement or the ABL Documents. 
 (c) The ABL Obligations and the Second Lien Obligations may be
refinanced, in whole or in part, in each case, without notice to, or the consent (except to the extent a consent 

  
 18 

 
is required pursuant to Section 5.2(b) above or to permit the refinancing transaction under any ABL Document or any Second Lien Document) of the ABL Agents, the ABL Secured Parties, the
Second Lien Agent or the Second Lien Secured Parties, as the case may be, all without affecting the Lien Priority provided for herein or the other provisions hereof, provided, however, that the holders of such refinancing Indebtedness
(or an authorized agent or trustee on their behalf) bind themselves in writing to the terms of this Agreement pursuant to such documents or agreements (including amendments or supplements to this Agreement) as the ABL Agents or the Second Lien
Agent, as the case may be, shall reasonably request and in form and substance reasonably acceptable to the ABL Agents or the Second Lien Agent, as the case may be, and any such refinancing transaction shall be in accordance with any applicable
provisions of both the ABL Documents and the Second Lien Documents (to the extent such documents survive the refinancing). 

Section 5.3 Reinstatement and Continuation of Agreement. 

(a) If the ABL Agents or any ABL Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise pay to the
estate of any Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of the ABL Obligations (an “ABL Recovery”), then the ABL Obligations shall be reinstated to the extent of such
ABL Recovery. If this Agreement shall have been terminated prior to such ABL Recovery, this Agreement shall be reinstated in full force and effect in the event of such ABL Recovery, and such prior termination shall not diminish, release, discharge,
impair, or otherwise affect the obligations of the Parties from such date of reinstatement. All rights, interests, agreements, and obligations of the ABL Agents, the Second Lien Agent, the ABL Secured Parties, and the Second Lien Secured Parties
under this Agreement shall remain in full force and effect and shall continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency Proceeding by or against any Borrower or any Guarantor or
any other circumstance which otherwise might constitute a defense available to, or a discharge of any Borrower or any Guarantor in respect of the ABL Obligations or the Second Lien Obligations. No priority or right of the ABL Agents or any ABL
Secured Party shall at any time be prejudiced or impaired in any way by any act or failure to act on the part of any Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions, or covenants of any of the ABL
Documents, regardless of any knowledge thereof which the ABL Agents or any ABL Secured Party may have. 
 (b) If the Second Lien
Agent or any Second Lien Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise pay to the estate of any Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of
the Second Lien Obligations (a “Second Lien Recovery”), then the Second Lien Obligations shall be reinstated to the extent of such Second Lien Recovery. If this Agreement shall have been terminated prior to such Second Lien
Recovery, this Agreement shall be reinstated in full force and effect in the event of such Second Lien Recovery, and such prior termination shall not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties from such
date of reinstatement. All rights, interests, agreements, and obligations of the ABL Agents, the Second Lien Agent, the ABL Secured Parties, and the Second Lien Secured Parties under this Agreement shall remain in full force and effect and shall
continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any 

  
 19 

 
Insolvency Proceeding by or against any Borrower or any Guarantor or any other circumstance which otherwise might constitute a defense available to, or a discharge of any Borrower or any
Guarantor in respect of the ABL Obligations or the Second Lien Obligations. No priority or right of the Second Lien Agent or any Second Lien Secured Party shall at any time be prejudiced or impaired in any way by any act or failure to act on the
part of any Borrower or any Guarantor or by the noncompliance by any Person with the Second Liens, provisions, or covenants of any of the Second Lien Documents, regardless of any knowledge thereof which the Second Lien Agent or any Second Lien
Secured Party may have. 
 ARTICLE 6 
 INSOLVENCY PROCEEDINGS 
 Section 6.1 DIP Financing.

 (a) If any Borrower or any Guarantor shall be subject to any Insolvency Proceeding at any time prior to the Discharge of
ABL Obligations, and the ABL Agents or any of the ABL Secured Parties shall seek to provide any Borrower or any Guarantor with, or consent to a third party providing, any financing under Section 364 of the Bankruptcy Code or consent to any
order for the use of cash collateral constituting Collateral under Section 363 of the Bankruptcy Code (or any similar provision of any foreign Debtor Relief Laws or under a court order in respect of measures granted with similar effect under
any foreign Debtor Relief Laws) (each, a “DIP Financing”), with such DIP Financing to be secured by all or any portion of the Collateral (including assets that, but for the application of Section 552 of the Bankruptcy
Code would be Collateral), then the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that it will raise no objection and will not support any objection to such DIP Financing or use of cash collateral or to the Liens
securing the same on any basis, including, without limitation, on the grounds of a failure to provide “adequate protection” for the Liens of the Second Lien Agent securing the Second Lien Obligations (and will not request any adequate
protection solely as a result of such DIP Financing or use of cash collateral, and will not offer or support any debtor-in-possession financing which would compete with such DIP Financing); provided that (i) the Second Lien Agent retains its
Lien on the Collateral to secure the Second Lien Obligations (in each case, including Proceeds thereof arising after the commencement of the case under the any Debtor Relief Laws), subject to the terms of this Agreement, to the Liens in favor of the
ABL Secured Parties existing prior to the commencement of such Insolvency Proceeding, to any adequate protection Liens granted in favor of the ABL Obligations, and to the senior priority of the DIP Financing, (ii) all Liens on the Collateral
securing any such DIP Financing shall be senior to or on a parity with the Liens of the ABL Agents and the ABL Secured Parties securing the ABL Obligations on the Collateral and (iii) the foregoing provisions of this Section 6.1(a) shall
not prevent the Second Lien Agent and the Second Lien Secured Parties from objecting to any provision in any DIP Financing relating to any provision or content of a plan of reorganization or other plan of similar effect under any Debtor Relief Laws.

 (b) All Liens granted to the ABL Agents or the Second Lien Agent in any Insolvency Proceeding, whether as adequate protection
or otherwise, are intended by the Parties to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement. 

  
 20 

  
 Section 6.2
Relief From Stay. Until the Discharge of ABL Obligations has occurred, the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees not to seek relief from the automatic stay or any other stay in any Insolvency
Proceeding in respect of any portion of the Collateral without the ABL Agents’ express written consent. 
 Section 6.3
No Contest; Adequate Protection. The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that, prior to the Discharge of ABL Obligations, none of them shall contest (or support any other Person contesting)
(i) any request by the ABL Agents or any ABL Secured Party for adequate protection of its interest in the Collateral, (ii) subject to Section 6.1(a) above, any proposed provision of DIP Financing by the ABL Agents and the ABL Secured
Parties (or any other Person proposing to provide DIP Financing with the consent of the ABL Agents) or (iii) any objection by the ABL Agents or any ABL Secured Party to any motion, relief, action, or proceeding based on a claim by the ABL
Agents or any ABL Secured Party that its interests in the Collateral are not adequately protected (or any other similar request under any law applicable to an Insolvency Proceeding), so long as any Liens granted to the ABL Agents as adequate
protection of its interests are subject to this Agreement. 
 (b) Notwithstanding the foregoing provisions in this
Section 6.3, in any Insolvency Proceeding, if the ABL Secured Parties (or any subset thereof) are granted adequate protection with respect to the Collateral in the form of additional collateral (even if such collateral is not of a type which
would otherwise have constituted Collateral), then the ABL Agents, on behalf of themselves and the ABL Secured Parties, agrees that the Second Lien Agent, on behalf of itself or any of the Second Lien Secured Parties, may seek or request (and the
ABL Secured Parties will not oppose such request) adequate protection with respect to its interests in such Collateral in the form of a Lien on the same additional collateral, which Lien will be subordinated to the Liens securing the ABL Obligations
on the same basis as the other Liens of the Second Lien Agent on Collateral. 
 Section 6.4 Asset Sales. The
Second Lien Agent agrees, on behalf of itself and the Second Lien Secured Parties, that it will not oppose any sale consented to by the ABL Agents of any Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any similar provision
under the law applicable to any Insolvency Proceeding or under a court order in respect of measures granted with similar effect under any foreign Debtor Relief Laws) so long as the Liens of the Parties attach to the proceeds of such sale consistent
with the Lien Priority set forth herein on the assets sold and such proceeds are otherwise applied in accordance with this Agreement. 
 Section 6.5 Separate Grants of Security and Separate Classification. Each Second Lien Secured Party and each ABL Secured Party acknowledges and agrees that (i) the grants of Liens
pursuant to the ABL Security Documents and the Second Lien Security Documents constitute two separate and distinct grants of Liens and (ii) because of, among other things, their differing rights in the Collateral, the Second Lien Obligations
are fundamentally different from the ABL Obligations and must be separately classified in any plan of reorganization (or other plan of similar effect under any Debtor Relief Laws) proposed or adopted in an Insolvency Proceeding. To further
effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the claims of the ABL Secured Parties and the Second Lien Secured Parties in respect of the Collateral constitute only one secured claim
(rather than 

  
 21 

 
separate classes of senior and junior secured claims), then the Second Lien Secured Parties hereby acknowledge and agree that all distributions shall be made as if there were separate classes of
ABL Obligation claims and Second Lien Obligation claims against the Loan Parties, with the effect being that, to the extent that the aggregate value of the Collateral is sufficient (for this purpose ignoring all claims held by the other Secured
Parties), the ABL Secured Parties shall be entitled to receive, in addition to amounts distributed to them in respect of principal, pre-petition interest and other claims, all amounts owing in respect of post-petition interest that is available from
the Collateral before any distribution is made in respect of the claims held by the Second Lien Secured Parties from such Collateral, with the Second Lien Secured Parties hereby acknowledging and agreeing to turn over to ABL Secured Parties amounts
otherwise received or receivable by them to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect of reducing the aggregate recoveries. 

Section 6.6 Enforceability. The provisions of this Agreement are intended to be and shall be enforceable under
Section 510(a) of the Bankruptcy Code. 
 Section 6.7 ABL Obligations Unconditional. All rights of the ABL
Agents hereunder, and all agreements and obligations of the Second Lien Agent and the Loan Parties (to the extent applicable) hereunder, shall, except as otherwise specifically provided herein, remain in full force and effect irrespective of:

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

(ii) any change in the time, place or manner of payment of, or in any other term of, all or any portion of the ABL
Obligations, or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any ABL Document; 

(iii) any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral or any other
collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding, restatement or increase of all or any portion of the ABL Obligations or any guarantee or
guaranty thereof; or 
 (iv) any other circumstances that otherwise might constitute a defense available to, or a
discharge of, any Loan Party in respect of the ABL Obligations, or of any of the Second Lien Agent or any Loan Party, to the extent applicable, in respect of this Agreement. 
 Section 6.8 Second Lien Obligations Unconditional. All rights of the Second Lien Agent hereunder, all agreements and obligations of the ABL Agents and the Loan Parties (to the extent
applicable) hereunder, shall, except as otherwise specifically provided herein, remain in full force and effect irrespective of: 
 (i) any lack of validity or enforceability of any Second Lien Document; 
 (ii) any change in the time, place or manner of payment of, or in any other Second Lien of, all or any portion of the Second Lien Obligations, or any amendment,

  
 22 

 
waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any Second Lien Document (but solely to the extent permitted
pursuant to Section 5.2(b) above); 
 (iii) any exchange, release, voiding, avoidance or non perfection of
any security interest in any Collateral, or any other collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding, restatement or increase of all or any
portion of the Second Lien Obligations or any guarantee or guaranty thereof; or 
 (iv) any other circumstances
that otherwise might constitute a defense available to, or a discharge of, any Loan Party in respect of the Second Lien Obligations, or of any of the ABL Agents or any Loan Party, to the extent applicable, in respect of this Agreement. 

ARTICLE 7 

MISCELLANEOUS 
 Section 7.1 Rights of Subrogation. The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that no payment to the ABL Agents or any ABL Secured Party
pursuant to the provisions of this Agreement shall entitle the Second Lien Agent or any Second Lien Secured Party to exercise any rights of subrogation in respect thereof until the Discharge of ABL Obligations. 

Section 7.2 Further Assurances. The Parties will, at their own expense and at any time and from time to time, promptly
execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that either Party may reasonably request, in order to protect any right or interest granted or purported to be granted
hereby or to enable the ABL Agents or the Second Lien Agent to exercise and enforce their rights and remedies hereunder; provided, however, that no Party shall be required to pay over any payment or distribution, execute any
instruments or documents, or take any other action referred to in this Section 7.2, to the extent that such action would contravene any law, order or other legal requirement or any of the terms or provisions of this Agreement, and in the event
of a controversy or dispute, such Party may interplead any payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution under this Section 7.2. 

Section 7.3 Representations. The Second Lien Agent represents and warrants to the ABL Agents that it has the requisite
power and authority under the Second Lien Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and the Second Lien Secured Parties and that this Agreement shall be binding obligations of the Second
Lien Agent and the Second Lien Secured Parties, enforceable against the Second Lien Agent and the Second Lien Secured Parties in accordance with its terms. The ABL Agents represent and warrant to the Second Lien Agent that they have the requisite
power and authority under the ABL Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of themselves and the ABL Secured Parties and that this Agreement shall be binding

  
 23 

 
obligations of the ABL Agents and the ABL Secured Parties, enforceable against the ABL Agents and the ABL Secured Parties in accordance with its terms. 

Section 7.4 Amendments. No amendment or waiver of any provision of this Agreement nor consent to any departure by any Party
hereto shall be effective unless it is in a written agreement executed by the Second Lien Agent and the ABL Agents and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 Section 7.5 Addresses for Notices. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally served, telecopied, or sent by overnight express courier service or United States mail and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of a telecopy or three (3) days after deposit in the United States mail (certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of the parties hereto (until notice of
a change thereof is delivered as provided in this Section) shall be as set forth below 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. 

 

			
	 ABL Agents:
	 	Bank of America, N.A.
		 	100 Federal Street
		 	Boston, Massachusetts 02109
		 	Attention: Stephen J. Garvin
		
		 	With a copy to:
		
		 	Riemer & Braunstein, LLP
		 	Three Center Plaza
		 	Boston, MA 02108
		 	Attention: David S. Berman, Esquire
		 	Fax: (617) 880-3456
	
	Second Lien Agent:
		 	
		 	
		 	
		
		 	With a copy to:
		 	
		 	

 Section 7.6 No Waiver; Remedies. No failure on the part of any Party to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law. 
 Section 7.7 Continuing Agreement, Transfer
of Secured Obligations. This Agreement is a continuing agreement and shall (a) remain in full force and effect until the earlier of the Discharge of ABL Obligations or the Discharge of Second Lien Obligations, (b) be

  
 24 

 
binding upon the Parties and their successors and assigns, and (c) inure to the benefit of and be enforceable by the Parties and their respective successors, transferees and assigns. Nothing
herein is intended, or shall be construed to give, any other Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral. All references to any Loan Party shall include any Loan Party as debtor-in-possession and any
receiver or trustee for such Loan Party in any Insolvency Proceeding. Without limiting the generality of the foregoing clause (c), the ABL Agents, any ABL Secured Party, the Second Lien Agent, or any Second Lien Secured Party may assign or otherwise
transfer all or any portion of the ABL Obligations or the Second Lien Obligations, as applicable, to any other Person (other than any Borrower, any Guarantor or any Affiliate of any Borrower or any Guarantor and any Subsidiary of any Borrower or any
Guarantor, and such other Person shall thereupon become vested with all the rights and obligations in respect thereof granted to the ABL Agents, the Second Lien Agent, any ABL Secured Party, or any Second Lien Secured Party, as the case may be,
herein or otherwise. The ABL Secured Parties and the Second Lien Secured Parties may continue, at any time and without notice to the other parties hereto, to extend credit and other financial accommodations, lend monies and provide Indebtedness to,
or for the benefit of, any Loan Party on the faith hereof. 
 Section 7.8 Governing Law; Entire Agreement. The
validity, performance, and enforcement of this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. This Agreement constitutes the entire agreement and understanding among the Parties with respect to
the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto. 
 Section 7.9
Counterparts. This Agreement may be executed in any number of counterparts, and it is not necessary that the signatures of all Parties be contained on any one counterpart hereof, each counterpart will be deemed to be an original, and all
together shall constitute one and the same document. 
 Section 7.10 No Third Party Beneficiaries. This Agreement
is solely for the benefit of the ABL Agents, ABL Secured Parties, Second Lien Agent and Second Lien Secured Parties. No other Person (including any Borrower, any Guarantor or any Affiliate of any Borrower or any Guarantor, or any Subsidiary of any
Borrower or any Guarantor) shall be deemed to be a third party beneficiary of this Agreement. 
 Section 7.11
Headings. The headings of the articles and sections of this Agreement are inserted for purposes of convenience only and shall not be construed to affect the meaning or construction of any of the provisions hereof. 

Section 7.12 Severability. If any of the provisions in this Agreement shall, for any reason, be held invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement and shall not invalidate the Lien Priority or the application of Proceeds and other priorities set forth in this
Agreement. 
 Section 7.13 Attorneys’ Fees. The Parties agree that if any dispute, arbitration, litigation,
or other proceeding is brought with respect to the enforcement of this Agreement or any provision hereof, the prevailing party in such dispute, arbitration, litigation, or other 

  
 25 

 
proceeding shall be entitled to recover its reasonable attorneys’ fees and all other costs and expenses incurred in the enforcement of this Agreement, irrespective of whether suit is
brought. 
 Section 7.14 VENUE; JURY TRIAL WAIVER. 

(a) EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE
OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY ABL SECURED PARTY OR ANY SECOND LIEN SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY SECOND LIEN DOCUMENTS, OR
ANY ABL DOCUMENTS AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 
 (b) EACH PARTY HERETO HEREBY
WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. EACH PARTY HERETO REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 (c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 7.5. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

Section 7.15 Intercreditor Agreement. This Agreement is the Intercreditor Agreement referred to in the ABL Credit Agreement
and the Second Lien Credit Agreement. Nothing in this Agreement shall be deemed to subordinate the obligations due to (i) any ABL Secured Party to the obligations due to any Second Lien Secured Party or (ii) any Second Lien

  
 26 

 
Secured Party to the obligations due to any ABL Secured Party (in each case, whether before or after the occurrence of an Insolvency Proceeding), it being the intent of the Parties that this
Agreement shall effectuate a subordination of Liens but not a subordination of Indebtedness. 
 Section 7.16 No Warranties
or Liability. The Second Lien Agent and the ABL Agents acknowledge and agree that neither has made any representation or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of any other
ABL Document or any Second Lien Document. Except as otherwise provided in this Agreement, the Second Lien Agent and the ABL Agents will be entitled to manage and supervise their respective extensions of credit to any Loan Party in accordance with
law and their usual practices, modified from time to time as they deem appropriate. 
 Section 7.17 Conflicts. In
the event of any conflict between the provisions of this Agreement and the provisions of any ABL Document or any Second Lien Document, the provisions of this Agreement shall govern. 

Section 7.18 Information Concerning Financial Condition of the Loan Parties. Each of the Second Lien Agent and the ABL
Agents hereby assumes responsibility for keeping itself informed of the financial condition of the Loan Parties and all other circumstances bearing upon the risk of nonpayment of the ABL Obligations or the Second Lien Obligations. The Second Lien
Agent and the ABL Agents hereby agree that no party shall have any duty to advise any other party of information known to it regarding such condition or any such circumstances. In the event the Second Lien Agent or the ABL Agents, in their sole
discretion, undertakes at any time or from time to time to provide any information to any other party to this Agreement, (a) they shall be under no obligation (i) to provide any such information to such other party or any other party on
any subsequent occasion, (ii) to undertake any investigation not a part of its regular business routine, or (iii) to disclose any other information, (b) they make no representation as to the accuracy or completeness of any such
information and shall not be liable for any information contained therein, and (c) the Party receiving such information hereby agrees to hold the other providing Party harmless from any action the receiving Party may take or conclusion the
receiving Party may reach or draw from any such information, as well as from and against any and all losses, claims, damages, liabilities, and expenses to which such receiving Party may become subject arising out of or in connection with the use of
such information. 
 (b) The Loan Parties agree that any information provided to the ABL Agents, the Second Lien Agent, any ABL
Secured Party or any Second Lien Secured Party may be shared by such Person with any ABL Secured Party, any Second Lien Secured Party, the ABL Agents or the Second Lien Agent notwithstanding a request or demand by such Loan Party that such
information be kept confidential; provided that such information shall otherwise be subject to the respective confidentiality provisions in the ABL Credit Agreement and the Second Lien Credit Agreement, as applicable. 

[SIGNATURE PAGES FOLLOW] 

  
 27 

  
 IN WITNESS WHEREOF,
the ABL Agents, for and on behalf of themselves and the ABL Lenders, and the Second Lien Agent, for and on behalf of itself and the Second Lien Lenders, have caused this Agreement to be duly executed and delivered as of the date first above written.

  

			
	BANK OF AMERICA, N.A., in its capacity as an ABL Agent
		
	By:  	 	 
		 	 Name:

Title:

  

			
	 WELLS FARGO RETAIL FINANCE, LLC, in
 its capacity as an ABL Agent

		
	By:  	 	 
		 	 Name:

Title:

  

			
	GENERAL ELECTRIC CAPITAL CORPORATION, in its capacity as an ABL Agent
		
	By:  	 	 
		 	 Name:

Title:

  

			
	[                    ], in its capacity as the Second Lien
Agent
		
	By:  	 	 
		 	 Name:

Title:

  

 

  
 Signature
Page to Intercreditor Agreement 

  
 ACKNOWLEDGMENT

 Each Borrower and each Guarantor hereby acknowledges that it has received a copy of this Agreement and consents thereto,
agrees to recognize all rights granted thereby to the ABL Agents and the Second Lien Agent, and will not do any act or perform any obligation which is not in accordance with the agreements set forth in this Agreement. Each Borrower and each
Guarantor further acknowledges and agrees that it is not an intended beneficiary or third party beneficiary under this Agreement and (i) as between the ABL Secured Parties and the ABL Loan Parties, the ABL Documents remain in full force and
effect as written and are in no way modified hereby, and (ii) as between the Second Lien Secured Parties, the Second Lien Borrowers and Second Lien Guarantors, the Second Lien Documents remain in full force and effect as written and are in no
way modified hereby. 
  

			
	SEARS ROEBUCK ACCEPTANCE CORP., as Borrower
		
	By:	 	 
	 Name:

Title:

  

			
	KMART CORPORATION, as Borrower
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS HOLDINGS CORPORATION, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART HOLDING CORPORATION, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART MANAGEMENT CORPORATION, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

Acknowledgement — Intercreditor Agreement 

  
 
			
	KLC, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART STORES OF ILLINOIS LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART STORES OF TEXAS LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART OF MICHIGAN, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART OF WASHINGTON LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	KMART.COM LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  
 30 

  
 
			
	MYGOFER LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

		
	By:	 	 
	 Name:

Title:

  

			
	SEARS BRANDS MANAGEMENT CORPORATION, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS, ROEBUCK AND CO., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	CALIFORNIA BUILDER APPLIANCES, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	FLORIDA BUILDER APPLIANCES, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SOE, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

Acknowledgement — Intercreditor Agreement 

  
 
			
	STARWEST, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	LANDS’ END, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	PRIVATE BRANDS, LTD., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS HOME IMPROVEMENT PRODUCTS, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS, ROEBUCK DE PUERTO RICO, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS AUTHORIZED HOMETOWN STORES, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS OUTLET STORES, L.L.C., as Guarantor
		
	By:	 	 
	 Name:

Title:

  
 32 

  
 
			
	SEARS HOLDINGS MANAGEMENT CORPORATION, as Guarantor 
		
	By:	 	 
	 Name:

Title:

  

			
	LANDS’ END DIRECT MERCHANTS, INC., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS HOME APPLIANCE SHOWROOMS, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS PROTECTION COMPANY, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	SEARS PROTECTION COMPANY (FLORIDA), L.L.C., as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	A&E HOME DELIVERY, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  
 33 

  
 
			
	A&E LAWN & GARDEN, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  

			
	A&E SIGNATURE SERVICE, LLC, as Guarantor
		
	By:	 	 
	 Name:

Title:

  
 34 

  
 EXHIBIT G 
  
 INTERCREDITOR AGREEMENT 
 by and between 

BANK OF AMERICA, N.A., 
 WELLS FARGO RETAIL FINANCE, LLC, and 
 GENERAL ELECTRIC CAPITAL CORPORATION

 as ABL Agents, 
 and 

[                    ], 

as [Second Lien] Agent 
 Dated as of [            ] 
  

 
  

  
 TABLE OF CONTENTS

  

							
	 	 	 	  	Page No.	 
	 ARTICLE 1 DEFINITIONS
	  	 	4	  
			
	 Section 1.1
	 	UCC Definitions.	  	 	4	  
	 Section 1.2
	 	Other Definitions.	  	 	4	  
	 Section 1.3
	 	Rules of Construction.	  	 	12	  
		
	 ARTICLE 2 LIEN PRIORITY
	  	 	12	  
			
	 Section 2.1
	 	Priority of Liens.	  	 	12	  
	 Section 2.2
	 	Waiver of Right to Contest Liens.	  	 	13	  
	 Section 2.3
	 	Remedies Standstill.	  	 	14	  
	 Section 2.4
	 	Exercise of Rights.	  	 	15	  
	 Section 2.5
	 	No New Liens.	  	 	17	  
	 Section 2.6
	 	Waiver of Marshalling.	  	 	17	  
		
	 ARTICLE 3 ACTIONS OF THE PARTIES
	  	 	18	  
			
	 Section 3.1
	 	Certain Actions Permitted.	  	 	18	  
	 Section 3.2
	 	Agent for Perfection.	  	 	18	  
	 Section 3.3
	 	Insurance.	  	 	18	  
	 Section 3.4
	 	No Additional Rights For the Loan Parties Hereunder.	  	 	19	  
	 Section 3.5
	 	Inspection and Access Rights.	  	 	19	  
	 Section 3.6
	 	Tracing of and Priorities in Proceeds.	  	 	20	  
	 Section 3.7
	 	Payments Over.	  	 	21	  
		
	 ARTICLE 4 APPLICATION OF PROCEEDS
	  	 	21	  
			
	 Section 4.1
	 	Application of Proceeds.	  	 	21	  
	 Section 4.2
	 	Specific Performance.	  	 	23	  
		
	 ARTICLE 5 INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS
	  	 	23	  
			
	 Section 5.1
	 	Notice of Acceptance and Other Waivers.	  	 	23	  
	 Section 5.2
	 	Modifications to ABL Documents and Second Lien Documents.	  	 	25	  
	 Section 5.3
	 	Reinstatement and Continuation of Agreement.	  	 	26	  
		
	 ARTICLE 6 INSOLVENCY PROCEEDINGS
	  	 	27	  
			
	 Section 6.1
	 	DIP Financing.	  	 	27	  
	 Section 6.2
	 	Relief From Stay.	  	 	28	  
	 Section 6.3
	 	No Contest; Adequate Protection.	  	 	28	  
	 Section 6.4
	 	Asset Sales.	  	 	29	  
	 Section 6.5
	 	Separate Grants of Security and Separate Classification.	  	 	30	  
	 Section 6.6
	 	Enforceability.	  	 	30	  
	 Section 6.7
	 	ABL Obligations Unconditional.	  	 	30	  
	 Section 6.8
	 	Second Lien Obligations Unconditional.	  	 	31	  
		
	 ARTICLE 7 MISCELLANEOUS
	  	 	31	  
			
	 Section 7.1
	 	Rights of Subrogation.	  	 	31	  

  
 i 

							
	 	 	 	  	Page No.	 
	 Section 7.2
	 	Further Assurances.	  	 	32	  
	 Section 7.3
	 	Representations.	  	 	32	  
	 Section 7.4
	 	Amendments.	  	 	32	  
	 Section 7.5
	 	Addresses for Notices.	  	 	32	  
	 Section 7.6
	 	No Waiver; Remedies.	  	 	33	  
	 Section 7.7
	 	Continuing Agreement, Transfer of Secured Obligations.	  	 	33	  
	 Section 7.8
	 	Governing Law; Entire Agreement.	  	 	34	  
	 Section 7.9
	 	Counterparts.	  	 	34	  
	 Section 7.10
	 	No Third Party Beneficiaries.	  	 	34	  
	 Section 7.11
	 	Headings.	  	 	34	  
	 Section 7.12
	 	Severability.	  	 	34	  
	 Section 7.13
	 	Attorneys’ Fees.	  	 	34	  
	 Section 7.14
	 	VENUE; JURY TRIAL WAIVER.	  	 	34	  
	 Section 7.15
	 	Intercreditor Agreement.	  	 	35	  
	 Section 7.16
	 	No Warranties or Liability.	  	 	35	  
	 Section 7.17
	 	Conflicts.	  	 	35	  
	 Section 7.18
	 	Information Concerning Financial Condition of the Loan Parties.	  	 	36	  

  
 ii 

  
 INTERCREDITOR AGREEMENT

 THIS INTERCREDITOR AGREEMENT (as amended, supplemented, restated or otherwise modified from time to time pursuant to the
terms hereof, this “Agreement”) is entered into as of [            ] between BANK OF AMERICA, N.A. (“Bank of America”), in its
capacity as co-collateral agent, WELLS FARGO RETAIL FINANCE, LLC, in its capacity as co-collateral agent, and GENERAL ELECTRIC CAPITAL CORPORATION, in its capacity as co-collateral agent (together with their respective successors and
assigns in such capacities, the “ABL Agents”) for (i) the financial institutions party from time to time to the ABL Credit Agreement referred to below (such financial institutions, together with their respective
successors, assigns and transferees, the “ABL Lenders”) and (ii) any ABL Bank Product Affiliates and ABL Cash Management Affiliates (each as defined below) (such ABL Bank Product Affiliates and ABL Cash Management
Affiliates, together with the ABL Agents and the ABL Lenders, the “ABL Secured Parties”) and [            ], in its capacities as [administrative agent and
collateral agent] (together with its successors and assigns in such capacities, the “Second Lien Agent”) for the financial institutions party from time to time to the
[            ] referred to below (such financial institutions, together with their respective successors, assigns and transferees, the “Second Lien Lenders”) (such
Second Lien Agent and the Second Lien Lenders, the “Second Lien Secured Parties”). 
 RECITALS

 A. Pursuant to that certain Amended and Restated Credit Agreement dated as of May 21, 2009 by and among Sears Roebuck
Acceptance Corp. and Kmart Corporation, (collectively, the “ABL Borrowers”), Sears Holdings Corporation (“Holdings”), the ABL Lenders and the ABL Agents (as such agreement may be amended, supplemented,
restated or otherwise modified from time to time in accordance with the terms hereof and thereof, the “ABL Credit Agreement”), the ABL Lenders have agreed to make certain loans and provide other financial accommodations to or
for the benefit of Holdings and certain of its subsidiaries. 
 B. Pursuant to a certain Amended and Restated Guarantee and
Collateral Agreement dated as of May 21, 2009 (as the same may be amended, supplemented, restated and/or otherwise modified, the “ABL Guarantee and Collateral Agreement”) by Holdings and certain of its subsidiaries
(including, without limitation, the ABL Borrowers) in favor of the ABL Agents for the benefit of the ABL Secured Parties, (1) Holdings and certain of its subsidiaries (collectively, with Holdings, the “ABL Guarantors”)
have guaranteed the payment and performance of the ABL Borrowers’ Obligations under the ABL Documents (as hereinafter defined), and (2) the ABL Borrowers and the ABL Guarantors (collectively, the “ABL Loan Parties”)
have granted a security interest and lien in certain of their assets (including, without limitation, credit card accounts receivables, pharmacy receivables, inventory and other assets related thereto) to secure the respective obligations of each of
the ABL Loan Parties under the ABL Documents. 
 C. Pursuant to that certain
[            ] dated as of the date hereof by and among [            ], (collectively, the “Second Lien
Borrowers”), the Second Lien Lenders and the Second Lien Agent (as such agreement may be amended, supplemented, restated or otherwise modified from time to time in accordance with the Second Liens hereof and thereof, the
“Second 

  
 3 

 
Lien Credit Agreement”), the Second Lien Lenders have agreed to make certain loans to the Second Lien Borrowers. 

D. Pursuant to a certain Second Lien Guarantee and Collateral Agreement dated as of the date hereof (the “Second Lien
Guarantee and Collateral Agreement) by Holdings and certain of its subsidiaries in favor of the Second Lien Agent for the benefit of the Second Lien Secured Parties, (1) Holdings and certain of its subsidiaries (collectively, with
Holdings, the “Second Lien Guarantors”) have guaranteed the payment and performance of the Second Lien Borrowers’ Obligations under the Second Lien Documents (as hereinafter defined), and (2) the Second Lien
Borrowers and the Second Lien Guarantors (collectively, the “Second Lien Loan Parties”) have granted a security interest and lien in certain of their assets (including, without limitation, credit card accounts receivables,
pharmacy receivables, inventory and other assets related thereto) to secure the respective obligations of each of the Second Lien Loan Parties under the Second Lien Documents. 
 E. Each of the ABL Agents (on behalf of the ABL Secured Parties) and the Second Lien Agent (on behalf of the Second Lien Secured Parties) desire to agree to the relative priority of Liens on the
Collateral (as defined below) and certain other rights, priorities and interests as provided herein. 
 NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 

Section 1.1 UCC Definitions. Unless otherwise defined herein, all capitalized terms used herein shall have the same meaning
herein as in the Uniform Commercial Code. 
 Section 1.2 Other Definitions. Subject to Section 1.1, as used
in this Agreement, the following terms shall have the meanings set forth below: 
 “ABL Agents” shall
have the meaning assigned to that term in the introduction to this Agreement and shall include any successors thereto as well as any Person designated as the “Agent”, “Administrative Agent”, “Collateral Agent” or
“Co-Collateral Agent” under any ABL Credit Agreement. 
 “ABL Bank Products Affiliate” shall
mean any ABL Lender or any Affiliate of any ABL Lender that has entered into a Swap Contract or other Bank Product with an ABL Loan Party with the obligations of such ABL Loan Party thereunder being secured by one or more ABL Collateral Documents,
together with their respective successors, assigns and transferees. 
 “ABL Borrowers” shall have the
meaning assigned to that term in the recitals to this Agreement. 
 “ABL Cash Management Affiliate”
shall mean any ABL Lender or any Affiliate of an ABL Lender that provides Cash Management Services to any of the ABL Loan Parties with the 

  
 4 

 
obligations of such ABL Loan Parties thereunder being secured by one or more ABL Collateral Documents, together with their respective successors, assigns and transferees. 

“ABL Collateral Documents” shall mean the ABL Guarantee and Collateral Agreement, together with all other
security agreements, account control agreements, freight forwarder and/or customs broker’s agreements, collateral access agreements, license agreements and other collateral documents executed and delivered in connection with the ABL Credit
Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time. 

“ABL Credit Agreement” shall have the meaning assigned to such term in the recitals to this Agreement and shall
include any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion of the ABL Obligations, whether by the same or any other agent, lender or group of lenders. 

“ABL Documents” shall mean the ABL Credit Agreement, the ABL Collateral Documents, all Swap Contracts and other
Bank Products between any ABL Loan Party and any ABL Bank Products Affiliate, all Cash Management Services agreements between any ABL Loan Party and any ABL Cash Management Affiliate, those other ancillary agreements to which any ABL Secured Party
is a party or beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any ABL Loan Party and delivered to the ABL Agents or any other ABL Secured Party, in connection with any of
the foregoing or with the ABL Credit Agreement or the ABL Guarantee and Collateral Agreement, in each case, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof and thereof.

 “ABL Guarantee and Collateral Agreement” shall have the meaning assigned to that term in the recitals
to this Agreement and shall also include any other agreement amending or replacing such agreement, whether by the same or any other agent, lender or group of lenders. 
 “ABL Guarantors” shall have the meaning assigned to that term in the recitals to this Agreement and shall also include any other Person who becomes a guarantor under the ABL
Guarantee and Collateral Agreement. 
 “ABL Lenders” shall have the meaning assigned to that term in the
introduction to this Agreement. 
 “ABL Loan Parties” shall have the meaning assigned to that term in
the recitals to this Agreement. 
 “ABL Obligations” shall mean all obligations of every nature of each
ABL Loan Party from time to time owed to the ABL Secured Parties, or any of them, under any ABL Document, whether for principal, interest, reimbursement of amounts drawn under letters of credit, payments for early termination of Swap Contracts,
fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the ABL Documents (including interest, fees, indemnification payments, expense reimbursements and other amounts which, but for the filing of a
petition in bankruptcy with respect to such ABL Loan Party, would have accrued on or been payable with respect to any ABL Obligation, whether or not a claim is allowed against such 

  
 5 

 
ABL Loan Party for such interest, fees, indemnification payments, expense reimbursements and other amounts in the related bankruptcy proceeding), as amended, restated, modified, renewed,
refunded, replaced or refinanced in whole or in part from time to time in accordance with the terms hereof and thereof. 

“ABL Priority Collateral” shall mean all Collateral consisting of the following: 

(1) all Accounts consisting of Credit Card Accounts Receivables and Pharmacy Receivables; 

(2) all Inventory; 
 (3) all Prescription Lists; 
 (4) to the extent relating to,
evidencing or governing any of the items referred to in the preceding clauses, all Deposit Accounts, Securities Accounts, Documents, General Intangibles, Instruments, Commercial Tort Claims; all Supporting Obligations and Letter-of-Credit Rights;

 (5) all books and Records relating to the items referred to in the preceding clauses (including all books,
databases, and Records, whether tangible or electronic, which contain any information relating to any of the items referred to in the preceding clauses); and 
 (6) all guarantees with respect to any of the foregoing and all cash, cash equivalents, money, insurance proceeds and other proceeds of any of the foregoing (such proceeds, “ABL Priority
Proceeds”). 
 “ABL Recovery” shall have the meaning set forth in Section 5.3(a).

 “ABL Secured Parties” shall have the meaning to that term in the introduction to this Agreement.

 “Affiliate” shall mean, with respect to a specified Person, any other Person that directly or
indirectly through one or more intermediaries Controls, is Controlled by or is under common Control with the Person specified. 

“Agent(s)” means individually the ABL Agents or the Second Lien Agent and collectively means both the ABL Agents
and the Second Lien Agent. 
 “Agreement” shall have the meaning assigned to that term in the
introduction to this Agreement. 
 “Bank Products” shall have the meaning provided in the ABL Credit
Agreement. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code , as now or hereafter in
effect or any successor thereto. 

  
 6 

  

“Borrower” shall mean the ABL Borrowers and the Second Lien Borrowers. 

“Business Day” shall mean any day other than (a) Saturday or Sunday; (b) any day on which banks in
Boston, Massachusetts or New York City, New York, generally are not open to the general public for the purpose of conducting commercial banking business; or (c) a day on which the principal office of the Second Lien Agent or any ABL Agents is
not open to the general public to conduct business, if such office is ordinarily open to the general public to conduct business. 
 “Cash Management Services” shall have the meaning provided in the ABL Credit Agreement. 
 “Collateral” shall mean all Property now owned or hereafter acquired by any Borrower or any Guarantor in or upon which a Lien is granted or purported to be granted to the ABL
Agents or the Second Lien Agent under any of the ABL Collateral Documents or the Second Lien Collateral Documents, together with all substitutions, additions, products and Proceeds thereof. 

“Control Collateral” shall mean any Collateral consisting of any Deposit Account, Instruments and any other
Collateral as to which a Lien may be perfected through possession or control by the secured party, or any agent therefor. 

“Credit Card Accounts Receivables” shall have the meaning provided in the ABL Credit Agreement. 

“Credit Documents” shall mean the ABL Documents and the Second Lien Documents. 

“Debtor Relief Laws” shall mean the Bankruptcy Code as now or hereafter in effect or any successor thereto, as
well as all other liquidation, conservatorship, bankruptcy, assignment for benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States federal or state law or of any
applicable foreign law from time to time in effect affecting the rights of creditors generally. 
 “DIP
Financing” shall have the meaning set forth in Section 6.1(a). 
 “Discharge of ABL
Obligations” shall mean (a) the payment in full in cash of all outstanding ABL Obligations including, with respect to (i) amounts available to be drawn under outstanding letters of credit issued thereunder (or indemnities or
other undertakings issued pursuant thereto in respect of outstanding letters of credit), the cancellation of such letters of credit or the delivery or provision of money or backstop letters of credit in respect thereof in compliance with the terms
of any ABL Credit Agreement (which shall not exceed an amount equal to 105% of the aggregate undrawn amount of such letters of credit) and (ii) outstanding ABL Obligations with respect to Bank Products and Cash Management Services (or
indemnities or other undertakings issued pursuant thereto in respect of outstanding Bank Products and Cash Management Services) or the delivery or provision of cash collateral in respect thereof in compliance with the terms of any ABL Credit
Agreement and (b) the termination of all commitments to extend credit under the ABL Documents. 

  
 7 

  
 “Discharge
of Second Lien Priority Obligations” shall mean the payment in full in cash of all outstanding Second Lien Obligations. 
 “Enforcement Notice” shall mean a written notice delivered by either the ABL Agents or the Second Lien Agent to the other applicable party announcing that an Enforcement Period has
commenced. 
 “Enforcement Period” shall mean the period of time following the receipt by either the ABL
Agents or the Second Lien Agent of an Enforcement Notice from the other and continuing until the earliest of (a) in case of an Enforcement Period commenced by the Second Lien Agent, the Discharge of Second Lien Obligations, (b) in the case
of an Enforcement Period commenced by the ABL Agents, the Discharge of ABL Obligations, or (c) the ABL Agents or the Second Lien Agent (as applicable) terminates, or agrees in writing to terminate, the Enforcement Period. 

“Event of Default” shall mean an Event of Default as defined in the ABL Credit Agreement or the Second Lien
Credit Agreement, as applicable. 
 “Exercise of Any Secured Creditor Remedies” or “Exercise
of Secured Creditor Remedies” shall mean, except as otherwise provided in the final sentence of this definition: 
 (a) the taking by any Secured Party of any action to enforce or realize upon any Lien, including the institution of any foreclosure proceedings or the noticing of any public or private sale pursuant to
Article 9 of the Uniform Commercial Code or other applicable law; 
 (b) the exercise by any Secured Party of any
right or remedy provided to a secured creditor on account of a Lien under any of the Credit Documents, under applicable law, in an Insolvency Proceeding or otherwise, including the election to retain any of the Collateral in satisfaction of a Lien;

 (c) the taking of any action by any Secured Party or the exercise of any right or remedy by any Secured Party
in respect of the collection on, set off against, marshaling of, injunction respecting or foreclosure on the Collateral or the Proceeds thereof; 
 (d) the appointment on the application of a Secured Party, of a receiver, receiver and manager or interim receiver of all or part of the Collateral; 

(e) the sale, lease, license, or other disposition of all or any portion of the Collateral by private or public sale
conducted by a Secured Party or any other means at the direction of a Secured Party permissible under applicable law; and 
 (f) the exercise of any other right of a secured creditor under Part 6 of Article 9 of the Uniform Commercial Code or under provisions of similar effect other applicable law. 

For the avoidance of doubt, none of the following shall be deemed to constitute an Exercise of Secured Creditor Remedies: (i) the filing of a proof
of claim in any Insolvency Proceeding or 

  
 8 

 
seeking adequate protection (subject to Section 6.3 below), (ii) the exercise of rights by the ABL Agents during the continuance of a Cash Dominion Event (as defined in the ABL Credit
Agreement), including, without limitation, the notification of account debtors, depository institutions or any other Person to deliver proceeds of ABL Priority Collateral to the ABL Agents, (iii) the consent by the ABL Agents to a store closing
sale, going out of business sale or other disposition by any Loan Party of any of the ABL Priority Collateral, (iv) the reduction of advance rates or sub-limits by the ABL Agents, or (v) the imposition of Availability Reserves or Inventory
Reserves (in each case as defined in the ABL Credit Agreement) by the ABL Agents. 
 “Governmental
Authority” shall mean any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 “Guarantor” shall mean any of the ABL Guarantors or Second Lien Guarantors. 

“Indebtedness” shall mean (i) all obligations of a Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (ii) the maximum amount of all letters of credit, bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments
issued or created by or for the account of such Person; (iii) obligations of such Person under any Swap Contract; (iv) indebtedness secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements and mortgage, industrial revenue bond, industrial development bond and similar financings), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse, and
(v) any guarantees of the foregoing. 
 “Insolvency Proceeding” shall mean (a) any case,
action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of
creditors, composition, marshalling of assets for creditors or other similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each case covered by clauses (a) and (b) undertaken under any
Debtor Relief Laws. 
 “Lender(s)” means individually, the ABL Lenders or the Second Lien Lenders and
collectively means all of the ABL Lenders and the Second Lien Lenders. 
 “Lien” shall mean, with
respect to any asset, any mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation, encumbrance, collateral assignment, charge or security interest in, on or of such asset. 

“Lien Priority” shall mean with respect to any Lien of the ABL Secured Parties or the Second Lien Secured Parties
in the Collateral, the order of priority of such Lien as specified in Section 2.1. 
 “Loan
Parties” shall mean the ABL Loan Parties and the Second Lien Loan Parties. 
 “Party” shall
mean the ABL Agents or the Second Lien Agent, and “Parties” shall mean both the ABL Agents and the Second Lien Agent. 

  
 9 

  

“Person” shall mean an individual, partnership, corporation, limited liability company, unlimited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 
 “Pharmacy Receivables” shall have the meaning provided in the ABL Guarantee and Collateral Agreement. 
 “Prescription Lists” shall have the meaning provided in the ABL Guarantee and Collateral Agreement. 
 “Priority Collateral” shall mean the ABL Priority Collateral or the Second Lien Priority Collateral, as applicable. 

“Proceeds” shall mean (a) all “proceeds,” as defined in Article 9 of the Uniform Commercial Code,
with respect to the Collateral, and (b) whatever is recoverable or recovered when any Collateral is sold, exchanged, collected, or disposed of, whether voluntarily or involuntarily. 

“Property” shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible
or intangible. 
 “Second Lien Agent” shall have the meaning assigned to that term in the introduction
to this Agreement and shall include any successor thereto. 
 “Second Lien Borrowers” shall have the
meaning assigned to that term in the introduction to this Agreement. 
 “Second Lien Collateral
Documents” shall mean the Second Lien Guarantee and Collateral Agreement, together with all other security agreements, account control agreements, freight forwarder and/or customs broker’s agreements, collateral access agreements,
license agreements and other collateral documents executed and delivered in connection with the Second Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time. 

“Second Lien Credit Agreement” shall have the meaning assigned to that term in the recitals to this Agreement and
shall include any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion of the Second Lien Obligations, whether by the same or any other agent, lender or group of lenders.

 “Second Lien Documents” shall mean the Second Lien Credit Agreement, the Second Lien Collateral
Documents, and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Second Lien Loan Party or any of its respective Affiliates, and delivered to the Second Lien Agent, in connection with any
of the foregoing or any Second Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the Second Liens hereof and thereof. 

  
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 “Second
Lien Guarantee and Collateral Agreement” shall have the meaning assigned to that term in the recitals to this Agreement. 
 “Second Lien Guarantors” shall have the meaning assigned to that term in the recitals to this Agreement and shall also include any other Person who becomes a guarantor under the
Second Lien Guarantee and Collateral Agreement. 
 “Second Lien Lenders” shall have the meaning assigned
to that term in the introduction to this Agreement. 
 “Second Lien Loan Parties” shall have the meaning
assigned to that term in the recitals to this Agreement. 
 “Second Lien Obligations” shall mean all
obligations of every nature of each Second Lien Loan Party from time to time owed to the Second Lien Secured Parties or any of them, under any Second Lien Document, whether for principal, interest (including interest which, but for the filing of a
petition in bankruptcy with respect to such Second Lien Loan Party, would have accrued on any Second Lien Obligation to the extent a claim is allowed against such Second Lien Loan Party for such interest in the related bankruptcy proceeding), fees,
expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the Second Lien Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time. 

“Second Lien Priority Collateral” shall mean all Collateral, other than ABL Priority Collateral, consisting of
the following: 
 (1) TO BE COMPLETED 
 “Second Lien Recovery” shall have the meaning set forth in Section 5.3(b). 
 “Second Lien Secured Parties” shall have the meaning assigned to that term in the introduction to this Agreement. 

“Secured Parties” shall mean the ABL Secured Parties and the Second Lien Secured Parties. 

“Subsidiary” shall mean with respect to any Person (the “parent”) at any date, any corporation,
partnership, joint venture, limited liability company, trust, or other entity (a) of which equity interests representing more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 

“Swap Contract” shall have the meaning provided in the ABL Credit Agreement. 

“Uniform Commercial Code” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect
in the State of New York; provided that to the extent that the Uniform Commercial Code is used to define any term in any security document and such term is 

  
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defined differently in differing Articles of the Uniform Commercial Code, the definition of such term contained in Article 9 shall govern; provided further that in the event that, by
reason of mandatory provisions of law, any or all of the attachment, perfection, publication or priority of, or remedies with respect to, Liens of any Party is governed by the Uniform Commercial Code or foreign personal property security laws as
enacted and in effect in a jurisdiction other than the State of New York, the term “Uniform Commercial Code” will mean the Uniform Commercial Code or such foreign personal property security laws as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 

“Use Period” means the period commencing on the date that the ABL Agents (or an ABL Loan Party acting with the
consent of the ABL Agents) commence the liquidation and sale of the ABL Priority Collateral and ending 180 days thereafter. If any stay or other order that prohibits any of the ABL Agents, the other ABL Secured Parties or any ABL Loan Party (with
the consent of the ABL Agents) from commencing and continuing to Exercise Any Secured Creditor Remedies or to liquidate and sell the ABL Priority Collateral has been entered by a court of competent jurisdiction, such 180-day period shall be tolled
during the pendency of any such stay or other order and the Use Period shall be so extended. 
 Section 1.3 Rules of
Construction. 
 Unless the context of this Agreement clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, the term “including” is not limiting and shall be deemed to be followed by the phrase “without limitation,” and the term “or” has, except where otherwise
indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and
not to any particular provision of this Agreement. Article, section, subsection, clause, schedule and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement to any agreement, instrument, or
document shall include all alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements thereto and thereof, as applicable (subject to any restrictions on such
alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Person’s
successors and assigns. Any reference herein to the repayment in full of an obligation shall mean the payment in full in cash of such obligation, or in such other manner as may be approved in writing by the requisite holders or representatives in
respect of such obligation. Any reference herein to a time of day means Eastern time. 
 ARTICLE 2 

LIEN PRIORITY 
 Section 2.1 Priority of Liens. 
 (a) Notwithstanding (i) the
date, time, method, manner, or order of grant, attachment, or perfection of any Liens granted to the ABL Secured Parties in respect of all or any portion of the Collateral or of any Liens granted to the Second Lien Secured Parties in respect of all
or any portion of the Collateral and regardless of how any such Lien was acquired (whether by grant, statute, operation of law, subrogation or otherwise), (ii) the order or time of filing or

  
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recordation of any document or instrument for perfecting the Liens in favor of the ABL Agents for the benefit of the ABL Secured Parties or the Second Lien Agent for the benefit of the Second
Lien Secured Parties in any Collateral, (iii) any provision of the Uniform Commercial Code, Debtor Relief Laws or any other applicable law, or of the ABL Documents or the Second Lien Documents, (iv) whether the ABL Agents or the Second
Lien Agent, in each case, either directly or through agents, holds possession of, or has control over, all or any part of the Collateral, (v) the date on which the ABL Obligations or the Second Lien Obligations are advanced or made available to
the Loan Parties, or (vi) any failure of the ABL Agents or the Second Lien Agent to perfect its Lien in the Collateral, the subordination of any Lien on the Collateral securing any ABL Obligations or Second Lien Obligations, as applicable, to
any Lien securing any other obligation of any Borrower or Guarantor, or the avoidance, invalidation or lapse of any Lien on the Collateral securing any ABL Obligations or Second Lien Obligations, the ABL Agents, on behalf of themselves and the ABL
Secured Parties, and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby agree that the following priorities apply to the ABL Priority Collateral and the Second Lien Priority Collateral: 

(1) With respect to the ABL Priority Collateral: 

(A) First, to the ABL Agents and the ABL Lenders to the extent of the ABL Obligations; 

(B) Second, to the Second Lien Agent and the Second Lien Lenders to the extent of the Second Lien Obligations. 

(2) With respect to the Second Lien Priority Collateral: 

(A) First, to the Second Lien Agent and the Second Lien Lenders to the extent of the Second Lien Obligations; 

(B) Second, to the ABL Agents and the ABL Lenders to the extent of the ABL Obligations. 

(b) The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, acknowledges and agrees that, concurrently
herewith, the ABL Agents, for the benefit of themselves and the ABL Secured Parties, have been, or may be, granted Liens upon all of the Second Lien Priority Collateral and the Second Lien Agent hereby consents thereto. The ABL Agents, for and on
behalf of themselves and the ABL Secured Parties, acknowledge and agree that, concurrently herewith, the Second Lien Agent, for the benefit of itself and the Second Lien Secured Parties, has been, or may be, granted Liens upon all of the ABL
Priority Collateral and the ABL Agents hereby consents thereto. The subordination of Liens by the Second Lien Agent and the ABL Agents in favor of one another as set forth herein shall not be deemed to subordinate the Second Lien Agent’s Liens
or the ABL Agents’ Liens to the Liens of any other Person. 
 Section 2.2 Waiver of Right to Contest Liens.

 (a) The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that it and they shall
not (and hereby waives any right to) take any action 

  
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to contest or challenge (or assist or support any other Person in contesting or challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency Proceeding),
the validity, priority, enforceability, or perfection of the Liens of the ABL Agents and the ABL Secured Parties in respect of the Collateral or the provisions of this Agreement. The Second Lien Agent, for itself and on behalf of the Second Lien
Secured Parties, agrees that none of the Second Lien Agent or the Second Lien Secured Parties will take any action that would interfere with any Exercise of Secured Creditor Remedies undertaken by the ABL Agents or any ABL Secured Party under the
ABL Documents with respect to the ABL Priority Collateral. The Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, hereby waives any and all rights it or the Second Lien Secured Parties may have as a junior lien creditor
or otherwise to contest, protest, object to, or interfere with the manner in which the ABL Agents or any ABL Lender seeks to enforce its Liens in any ABL Priority Collateral. The foregoing shall not be construed to prohibit the Second Lien Agent
from enforcing the provisions of this Agreement or otherwise acting in accordance with this Agreement. 
 (b) The ABL Agents,
for and on behalf of themselves and the ABL Secured Parties, agrees that they shall not (and hereby waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging), directly or
indirectly, whether or not in any proceeding (including in any Insolvency Proceeding), the validity, priority, enforceability, or perfection of the Liens of the Second Lien Agent or the Second Lien Secured Parties in respect of the Collateral or the
provisions of this Agreement. Except to the extent expressly set forth in this Agreement, the ABL Agents, for themselves and on behalf of the ABL Secured Parties, agrees that none of the ABL Agents or the ABL Secured Parties will take any action
that would interfere with any Exercise of Secured Creditor Remedies undertaken by the Second Lien Agent under the Second Lien Documents with respect to the Second Lien Priority Collateral. The ABL Agents, for themselves and on behalf of the ABL
Secured Parties, hereby waive any and all rights they or the ABL Secured Parties may have as a junior lien creditor or otherwise to contest, protest, object to, or interfere with the manner in which the Second Lien Agent seeks to enforce its Liens
in any Second Lien Priority Collateral. The foregoing shall not be construed to prohibit the ABL Agents from enforcing the provisions of this Agreement or otherwise acting in accordance with this Agreement. 

Section 2.3 Remedies Standstill. 
 (a) The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that, from the date hereof until the date upon which the Discharge of ABL Obligations shall have occurred,
neither the Second Lien Agent nor any Second Lien Secured Party will Exercise Any Secured Creditor Remedies with respect to any of the ABL Priority Collateral, and will not take, receive or accept any Proceeds of ABL Priority Collateral. From and
after the date upon which the Discharge of ABL Obligations shall have occurred, the Second Lien Agent or any Second Lien Secured Party may Exercise Any Secured Creditor Remedies under the Second Lien Documents or applicable law as to any ABL
Priority Collateral; provided, however, that any Exercise of Secured Creditor Remedies with respect to any Collateral by the Second Lien Agent or the Second Lien Secured Parties is at all times subject to the provisions of this
Agreement. 

  
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 (b) The ABL Agents, on
behalf of themselves and the ABL Secured Parties, agree that, from the date hereof until the date upon which the Discharge of Second Lien Obligations shall have occurred, neither the ABL Agents nor any ABL Secured Party will Exercise Any Secured
Creditor Remedies with respect to the Second Lien Priority Collateral, and will not take, receive or accept any Proceeds of the Second Lien Priority Collateral, it being understood and agreed that the temporary deposit of Proceeds of Second Lien
Priority Collateral in a Deposit Account controlled by the ABL Agents shall not constitute a breach of this Agreement so long as such Proceeds are promptly (but in no event later than five Business Days after receipt) remitted to the Second Lien
Agent. From and after the date upon which the Discharge of Second Lien Obligations shall have occurred, the ABL Agents or any ABL Secured Party may Exercise Any Secured Creditor Remedies under the ABL Documents or applicable law as to any Second
Lien Priority Collateral; provided, however, that any Exercise of Secured Creditor Remedies with respect to any Collateral by the ABL Agents or the ABL Secured Parties is at all times subject to the provisions of this Agreement.

 (c) Notwithstanding the provisions of Sections 2.3(a), 2.3(b) or any other provision of this Agreement, nothing contained
herein shall be construed to prevent any Agent or any Secured Party from (i) filing a claim or statement of interest with respect to the ABL Obligations or Second Lien Obligations owed to it in any Insolvency Proceeding commenced by or against
any Loan Party, (ii) taking any action (not adverse to the Lien Priority of the Liens of the other Agent or other Secured Parties on the Collateral in which such other Agent or other Secured Party has a priority Lien or the rights of the other
Agent or any of the other Secured Parties to Exercise Any Secured Creditor Remedies in respect thereof) in order to create, perfect, preserve or protect (but not enforce its Lien) on any Collateral, (iii) filing any necessary or responsive
pleadings in opposition to any motion, adversary proceeding or other pleading filed by any Person objecting to or otherwise seeking disallowance of the claim or Lien of such Agent or Secured Party, (iv) filing any pleadings, objections,
motions, or agreements which assert rights available to unsecured creditors of the Loan Parties arising under any Insolvency Proceeding or applicable non-bankruptcy law, (v) voting on any plan of reorganization or filing any proof of claim in
any Insolvency Proceeding of any Loan Party, or (vi) objecting to the proposed retention of Collateral by the other Agent or any other Secured Party in full or partial satisfaction of any ABL Obligations or Second Lien Obligations due to such
other Agent or Secured Party, in each case (i) through (vi) above to the extent not inconsistent with the terms of this Agreement. 
 Section 2.4 Exercise of Rights. 
 (a) No Other Restrictions.
Except as expressly set forth in this Agreement, each Second Lien Secured Party and each ABL Secured Party shall have any and all rights and remedies it may have as a creditor under applicable law, including the right to the Exercise of Secured
Creditor Remedies; provided, however, that the Exercise of Secured Creditor Remedies with respect to the Collateral shall be subject to the provisions of this Agreement. The ABL Agents may enforce the provisions of the ABL Documents,
the Second Lien Agent may enforce the provisions of the Second Lien Documents and each may Exercise Any Secured Creditor Remedies, all in such order and in such manner as each may determine in the exercise of its sole discretion, consistent with the
terms of this Agreement and mandatory provisions of applicable law; provided, however, that each of the ABL Agents and the Second Lien Agent agrees to 

  
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provide to the other (x) an Enforcement Notice prior to the commencement of an Exercise Any Secured Creditor Remedies and (y) copies of any notices that it is required under applicable
law to deliver to any Borrower or any Guarantor; provided further, however, that the ABL Agents’ failure to provide any such copies to the Second Lien Agent (but not the Enforcement Notice) shall not impair any of the ABL
Agents’ rights hereunder or under any of the ABL Documents and the Second Lien Agent’s failure to provide any such copies to the ABL Agents (but not the Enforcement Notice) shall not impair any of the Second Lien Agent’s rights
hereunder or under any of the Second Lien Documents. Each of the Second Lien Agent (on behalf of itself and the Second Lien Secured Parties) and the ABL Agents (on behalf of themselves and the ABL Secured Parties) agree (i) that it will not
institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim, in the case of the Second Lien Agent and each Second Lien Secured Party, against either the ABL Agents or any other ABL Secured Party,
and in the case of the ABL Agents and each other ABL Secured Party, against either the Second Lien Agent or any other Second Lien Secured Party, seeking damages from or other relief by way of specific performance, instructions or otherwise, with
respect to, any action taken or omitted to be taken by such Person with respect to the Collateral which is consistent with the terms of this Agreement, and none of such Parties shall be liable for any such action taken or omitted to be taken, or
(ii) it will not be a petitioning creditor or otherwise assist in the filing of an involuntary Insolvency Proceeding. 

(b) Release of Liens. 
 (i) In the event of (A) any private or public sale of all or any portion of the ABL Priority Collateral in connection with any Exercise of Secured Creditor Remedies by the ABL Agents or by the ABL
Loan Parties with the consent of the ABL Agents, or (B) any sale, transfer or other disposition of all or any portion of the ABL Priority Collateral, so long as such sale, transfer or other disposition is then permitted by the ABL Documents or
consented to by the requisite ABL Lenders, the Second Lien Agent agrees, on behalf of itself and the Second Lien Secured Parties that such sale, transfer or other disposition will be free and clear of the Liens on such ABL Priority Collateral
securing the Second Lien Obligations, and the Second Lien Agent’s and the Second Lien Secured Parties’ Liens with respect to the ABL Priority Collateral so sold, transferred, or disposed shall terminate and be automatically released
without further action concurrently with, and to the same extent as, the release of the ABL Secured Parties’ Liens on such ABL Priority Collateral; provided, that the Liens of the Parties shall attach to the proceeds of any such
disposition of the ABL Priority Collateral with the same relative priority as the Liens which attached to the ABL Priority Collateral so released. In furtherance of, and subject to, the foregoing, the Second Lien Agent agrees that it will promptly
execute any and all Lien releases or other documents reasonably requested by the ABL Agents in connection therewith. The Second Lien Agent hereby appoints the ABL Agents and any officer or duly authorized person of the ABL Agents, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power of attorney in the place and stead of the Second Lien Agent and in the name of the Second Lien Agent or in the ABL Agents’ own names, from time to time, in the
ABL Agents’ sole discretion, for the purposes of carrying out the terms of this paragraph, to take any and all appropriate action and to execute and deliver any and all documents and instruments as may be necessary or desirable to accomplish
the purposes of this paragraph, including any financing statements, endorsements, assignments, releases or other 

  
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documents or instruments of transfer (which appointment, being coupled with an interest, is irrevocable). 
 (ii) In the event of (A) any private or public sale of all or any portion of the Second Lien Priority Collateral in connection with any Exercise of Secured Creditor Remedies by or with the consent of
the Second Lien Agent, or (B) any sale, transfer or other disposition of all or any portion of the Second Lien Priority Collateral, so long as such sale, transfer or other disposition is then permitted by the Second Lien Documents and the ABL
Documents or consented to by the requisite Second Lien Lenders or the requisite ABL Lenders, as applicable, the ABL Agents agree, on behalf of themselves and the ABL Lenders, that such sale, transfer or disposition will be free and clear of the
Liens on such Second Lien Priority Collateral securing the ABL Obligations and the ABL Agents’ and the ABL Secured Parties’ Liens with respect to the ABL Priority Collateral so sold, transferred, or disposed shall terminate and be
automatically released without further action concurrently with, and to the same extent as, the release of the Second Lien Secured Parties’ Liens on such Second Lien Priority Collateral; provided, that the Liens of the Parties shall
attach to the proceeds of any such disposition of the Second Lien Priority Collateral with the same relative priority as the Liens which attached to the Second Lien Priority Collateral so released. In furtherance of, and subject to, the foregoing,
the ABL Agents agree that they will promptly execute any and all Lien releases or other documents reasonably requested by the Second Lien Agent in connection therewith. The ABL Agents hereby appoint the Second Lien Agent and any officer or duly
authorized person of the Second Lien Agent, with full power of substitution, as their true and lawful attorney-in-fact with full irrevocable power of attorney in the place and stead of the ABL Agents and in the name of the ABL Agents or in the
Second Lien Agent’s own name, from time to time, in the Second Lien Agent’s sole discretion, for the purposes of carrying out the terms of this paragraph, to take any and all appropriate action and to execute and deliver any and all
documents and instruments as may be necessary or desirable to accomplish the purposes of this paragraph, including any financing statements, endorsements, assignments, releases or other documents or instruments of transfer (which appointment, being
coupled with an interest, is irrevocable). 
 Section 2.5 No New Liens. Until the date upon which all ABL
Obligations shall have been paid in full and all commitments under the ABL Documents terminated, and for so long as the Second Lien Obligations are secured by any ABL Priority Collateral, the parties hereto agree that no Second Lien Secured Party
shall acquire or hold any Lien on any assets of any Loan Party securing any Second Lien Obligation which assets are not also subject to the Lien of the ABL Agents under the ABL Documents. If any Second Lien Secured Party shall nonetheless acquire or
hold any Lien on any assets of any Loan Party securing any Second Lien Obligation which assets are not also subject to the Lien of the ABL Agents under the ABL Documents, then the Second Lien Agent (or the relevant Second Lien Secured Party) shall,
without the need for any further consent of any other Second Lien Secured Party, any Second Lien Borrower or any Second Lien Guarantor and notwithstanding anything to the contrary in any other Second Lien Document, be deemed to also hold and have
held such Lien as agent or bailee for the benefit of the ABL Agents as security for the ABL Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify the ABL Agents in writing of the existence of such Lien.

 Section 2.6 Waiver of Marshalling. 

  
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 (a) Until the Discharge
of ABL Obligations, the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, 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 Priority Collateral or any other similar rights a junior secured creditor may have under
applicable law. 
 (b) Until the Discharge Second Lien Obligations, the ABL Agents, on behalf of itself and the ABL Secured
Parties, 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 Second Lien Priority Collateral or any other similar rights a junior secured creditor may have under applicable law. 

ARTICLE 3 

ACTIONS OF THE PARTIES 
 Section 3.1 Certain Actions Permitted. The Second Lien Agent and the ABL Agents may make such demands or file such claims in respect of the Second Lien Obligations or the ABL Obligations, as
applicable, as are necessary to prevent the waiver or bar of such claims under applicable statutes of limitations or other statutes, court orders, or rules of procedure at any time. 

Section 3.2 Agent for Perfection. The ABL Agents, for and on behalf of themselves and each ABL Secured Party, and the
Second Lien Agent, for and on behalf of itself and each Second Lien Secured Party, as applicable, each agree to hold all Collateral in their respective possession, custody, or control (or in the possession, custody, or control of agents or bailees
for either) as agent for the other solely for the purpose of perfecting the security interest granted to each in such Collateral, subject to the terms and conditions of this Section 3.2. None of the ABL Agents, the ABL Secured Parties, the
Second Lien Agent, or the Second Lien Secured Parties, as applicable, shall have any obligation whatsoever to the others to assure that the Collateral is genuine or owned by any Borrower, any Guarantor, or any other Person or to preserve rights or
benefits of any Person. The duties or responsibilities of the ABL Agents and the Second Lien Agent under this Section 3.2 are and shall be limited solely to holding or maintaining control of the Control Collateral as agent for the other Party
for purposes of perfecting the Lien held by the Second Lien Agent or the ABL Agents, as applicable. The ABL Agents are not and shall not be deemed to be a fiduciary of any kind for the Second Lien Secured Parties or any other Person. Without
limiting the generality of the foregoing, the ABL Secured Parties shall not be obligated to see to the application of any Proceeds of the Second Lien Priority Collateral deposited into any Deposit Account or be answerable in any way for the
misapplication thereof. The Second Lien Agent is not and shall not be deemed to be a fiduciary of any kind for the ABL Secured Parties, or any other Person. 
 Section 3.3 Insurance. Proceeds of Collateral include insurance proceeds and, therefore, the Lien Priority shall govern the ultimate disposition of casualty insurance proceeds. The ABL
Agents and the Second Lien Agent shall each be named as additional insured or loss payee, as applicable, with respect to all insurance policies relating to the Collateral. Until 

  
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Discharge of the ABL Obligations, the ABL Agents shall have the sole and exclusive right, as against the Second Lien Agent, to adjust settlement of insurance claims in the event of any covered
loss, theft or destruction of ABL Priority Collateral and take other such actions with respect to insurance covering the ABL Priority Collateral as set forth in the ABL Credit Agreement. Until Discharge of the Second Lien Obligations, the Second
Lien Agent shall have the sole and exclusive right, as against the ABL Agents, to adjust settlement of insurance claims in the event of any covered loss, theft or destruction of Second Lien Priority Collateral and take other such actions with
respect to insurance covering the Second Lien Priority Collateral as set forth in the Second Lien Credit Agreement. All proceeds of such insurance shall be remitted to the ABL Agents or the Second Lien Agent, as the case may be, and each of the
Second Lien Agent and ABL Agents shall cooperate (if necessary) in a reasonable manner in effecting the payment of insurance proceeds in accordance with Section 4.1 hereof. 

Section 3.4 No Additional Rights For the Loan Parties Hereunder. If any ABL Secured Party or Second Lien Secured Party
shall enforce its rights or remedies in violation of the terms of this Agreement, the Loan Parties shall not be entitled to use such violation as a defense to any action by any ABL Secured Party or Second Lien Secured Party, nor to assert such
violation as a counterclaim or basis for set off or recoupment against any ABL Secured Party or Second Lien Secured Party. 

Section 3.5 Inspection and Access Rights. 
 (a) Without limiting any rights the ABL Agents or any other ABL Secured Party may otherwise have under applicable law or by agreement, in the event of any liquidation of the ABL Priority Collateral (or
any other Exercise of Any Secured Creditor Remedies by the ABL Agents) and whether or not the Second Lien Agent or any other Second Lien Secured Party has commenced and is continuing to Exercise Any Secured Creditor Remedies of the Second Lien
Agent, the ABL Agents or any other Person (including any ABL Loan Party) acting with the consent, or on behalf, of the ABL Agents, shall have the right (a) during normal business hours on any Business Day, to access ABL Priority Collateral that
(i) is stored or located in or on, or (ii) has become an accession with respect to (within the meaning of Section 9-335 of the Uniform Commercial Code), or (iii) has been commingled with (within the meaning of Section 9-336
of the Uniform Commercial Code), Second Lien Priority Collateral, and (b) during the Use Period, shall have the right to use the Second Lien Priority Collateral, each of the foregoing in order to assemble, inspect, copy or download information
stored on, take action to perfect its Liens on, complete a production run of inventory, take possession of, move, prepare and advertise for sale, sell (by public auction, private sale or a “store closing”, “going out of business”
or similar sale, whether in bulk, in lots or to customers in the ordinary course of business or otherwise and which sale may include augmented Inventory of the same type sold in the any ABL Loan Party’s business), store or otherwise deal with
the ABL Priority Collateral, in each case without notice to, the involvement of or interference by any Second Lien Secured Party or liability to any Second Lien Secured Party. In the event that any ABL Secured Party has commenced and is continuing
the Exercise of Any Secured Creditor Remedies with respect to any ABL Priority Collateral or any other sale or liquidation of the ABL Priority Collateral has been commenced by an ABL Loan Party (with the consent of the ABL Agents), the Second Lien
Agent may not sell, assign or otherwise transfer the related Second Lien Priority Collateral prior 

  
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to the expiration of the Use Period, unless the purchaser, assignee or transferee thereof agrees to be bound by the provisions of this Section 3.5. 

(b) During the period of actual occupation, use and/or control by the ABL Secured Parties and/or the ABL Agents (or their respective
employees, agents, advisers and representatives) of any Second Lien Priority Collateral, the ABL Secured Parties and the ABL Agents shall be obligated to repair at their expense any physical damage (but not any other diminution in value) to such
Second Lien Priority Collateral resulting from such occupancy, use or control, and to leave such Second Lien Priority 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 Secured Parties or the ABL Agents have any liability to the Second Lien Secured Parties and/or to the Second Lien Agent pursuant to this Section 3.5 as a result of any
condition (including any environmental condition, claim or liability) on or with respect to the Second Lien Priority Collateral existing prior to the date of the exercise by the ABL Secured Parties (or the ABL Agents, as the case may be) of their
rights under Section 3.5 and the ABL Secured Parties shall have no duty or liability to maintain the Second Lien Priority Collateral in a condition or manner better than that in which it was maintained prior to the use thereof by the ABL
Secured Parties, or for any diminution in the value of the Second Lien Priority Collateral that results from ordinary wear and tear resulting from the use of the Second Lien Priority Collateral by the ABL Secured Parties in the manner and for the
time periods specified under this Section 3.5. Without limiting the rights granted in this Section 3.5, the ABL Secured Parties and the ABL Agents shall cooperate with the Second Lien Secured Parties and/or the Second Lien Agent in
connection with any efforts made by the Second Lien Secured Parties and/or the Second Lien Agent to sell the Second Lien Priority Collateral. 
 (c) The ABL Agents and the ABL Secured Parties shall not be obligated to pay any amounts to the Second Lien Agent or the Second Lien Secured Parties (or any person claiming by, through or under the Second
Lien Secured Parties, including any purchaser of the Second Lien Priority Collateral) or to the ABL Loan Parties, for or in respect of the use by the ABL Agents and the ABL Secured Parties of the Second Lien Priority Collateral. 

(d) The ABL Secured Parties shall (i) use the Second Lien Priority Collateral in accordance with applicable law; (ii) insure
for damage to property and liability to persons, including property and liability insurance for the benefit of the Second Lien Secured Parties; and (iii) indemnify the Second Lien Secured Parties from any claim, loss, damage, cost or liability
arising from the ABL Secured Parties’ use of the Second Lien Priority Collateral (except for those arising from the gross negligence or willful misconduct of any Second Lien Secured Party). 

(e) The Second Lien Agent and the other Second Lien Secured Parties shall use commercially reasonable efforts to not hinder or obstruct
the ABL Agents and the other ABL Secured Parties from exercising the rights described in Section 3.5(a) hereof. 

Section 3.6 Tracing of and Priorities in Proceeds. The ABL Agents, for themselves and on behalf of the ABL Secured
Parties, and the Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, further agree that prior to an issuance of any notice of Exercise 

  
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of Any Secured Creditor Remedies by such Secured Party (unless a bankruptcy or insolvency Event of Default then exists), any proceeds of Collateral, whether or not deposited under control
agreements, which are used by any Loan Party to acquire other property which is Collateral shall not (solely as between the Agents and the Lenders) be treated as Proceeds of Collateral for purposes of determining the relative priorities in the
Collateral which was so acquired. 
 Section 3.7 Payments Over. 

(a) So long as the Discharge of ABL Obligations has not occurred, any ABL Priority Collateral or Proceeds thereof not constituting Second
Lien Priority Collateral received by the Second Lien Agent or any Second Lien Secured Parties in connection with the exercise of any right or remedy (including set off) relating to the ABL Priority Collateral in contravention of this Agreement shall
be segregated and held in trust and forthwith paid over to the ABL Agents for the benefit of the ABL Secured Parties in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. The ABL
Agents are hereby authorized to make any such endorsements as agent for the Second Lien Agent or any such Second Lien Secured Parties. This authorization is coupled with an interest and is irrevocable until such time as this Agreement is terminated
in accordance with its terms. 
 (b) So long as the Discharge of Second Lien Obligations has not occurred, any Second Lien
Priority Collateral or Proceeds thereof not constituting ABL Priority Collateral received by the ABL Agents or any other ABL Secured Party in connection with the exercise of any right or remedy (including set off) relating to the Second Lien
Priority Collateral in contravention of this Agreement shall be segregated and held in trust and forthwith paid over to the Second Lien Agent for the benefit of the Second Lien Secured Parties in the same form as received, with any necessary
endorsements or as a court of competent jurisdiction may otherwise direct. The Second Lien Agent is hereby authorized to make any such endorsements as agent for the ABL Agents or any such other ABL Secured Parties. This authorization is coupled with
an interest and is irrevocable until such time as this Agreement is terminated in accordance with its terms. 
 ARTICLE 4

 APPLICATION OF PROCEEDS 
 Section 4.1 Application of Proceeds. 
 (a) Revolving Nature of ABL
Obligations. The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, expressly acknowledges and agrees that (i) the ABL Credit Agreement includes a revolving commitment, that in the ordinary course of
business the ABL Agents and the ABL Lenders will apply payments and make advances thereunder, and that no application of any Collateral or the release of any Lien by the ABL Agents upon any portion of the Collateral in connection with a permitted
disposition by the ABL Loan Parties under any ABL Credit Agreement shall constitute the Exercise of Secured Creditor Remedies under this Agreement; (ii) the amount of the ABL Obligations that may be outstanding at any time or from time to time
may be increased or reduced and subsequently reborrowed, and that the terms of the ABL Obligations may be modified, extended or amended from time to time, and that the aggregate amount of the ABL Obligations may be increased, replaced or refinanced,

  
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in each event, without notice to or consent by the Second Lien Secured Parties and without affecting the provisions hereof; and (iii) all Collateral received by the ABL Agents may be
applied, reversed, reapplied or credited, in whole or in part, to the ABL Obligations at any time; provided, however, that from and after the date on which the ABL Agents (or any ABL Secured Party) or the Second Lien Agent (or any
Second Lien Secured Party) commences the Exercise of Any Secured Creditor Remedies, all amounts received by the ABL Agents or any ABL Lender shall be applied as specified in Sections 4.1(b) and (c). The Lien Priority shall not be altered or
otherwise affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or refinancing of either the ABL Obligations or the Second Lien Obligations, or any portion thereof.

 (b) Application of Proceeds of ABL Priority Collateral. The ABL Agents and the Second Lien Agent hereby agree that all
ABL Priority Collateral, ABL Priority Proceeds and all other Proceeds thereof, received by either of them in connection with any Exercise of Secured Creditor Remedies with respect to the ABL Priority Collateral shall be applied, 

first, to the payment of costs and expenses of the ABL Agents in connection with such Exercise of Secured Creditor
Remedies to the extent provided in the ABL Documents, 
 second, to the payment of the ABL Obligations in
accordance with the ABL Documents until the Discharge of ABL Obligations shall have occurred, 
 third, to
the payment of the Second Lien Obligations in accordance with the Second Lien Documents until the Discharge of Second Lien Obligations shall have occurred, and 
 fourth, the balance, if any, to the Loan Parties or as a court of competent jurisdiction may direct. 
 (c) Application of Proceeds of Second Lien Priority Collateral. The ABL Agents and the Second Lien Agent hereby agree that all Second Lien Priority Collateral, Second Lien Priority Proceeds and all
other Proceeds thereof, received by either of them in connection with any Exercise of Secured Creditor Remedies with respect to the Second Lien Priority Collateral shall be applied, 

first, to the payment of costs and expenses of the Second Lien Agent in connection with such Exercise of Secured
Creditor Remedies to the extent provided in the Second Lien Documents, 
 second, to the payment of the
Second Lien Obligations in accordance with the Second Lien Documents until the Discharge of Second Lien Obligations shall have occurred, 
 third, to the payment of the ABL Obligations in accordance with the ABL Documents until the Discharge of ABL Obligations shall have occurred, and 

  
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fourth, the balance, if any, to the Loan Parties or as a court of competent jurisdiction may direct. 

(d) Limited Obligation or Liability. In exercising remedies, whether as a secured creditor or otherwise, the ABL
Agents shall have no obligation or liability to the Second Lien Agent or to any Second Lien Secured Party, and the Second Lien Agent shall have no obligation or liability to the ABL Agents or any ABL Secured Party, regarding the adequacy of any
Proceeds or for any action or omission, except solely for an action or omission that breaches the express obligations undertaken by each Party under the terms of this Agreement. Notwithstanding anything to the contrary herein contained, none of the
Parties hereto waives any claim that it may have against a Secured Party on the grounds that any sale, transfer or other disposition by the Secured Party was not commercially reasonable in every respect as required by the Uniform Commercial Code.

 (e) Turnover of Collateral. Upon the Discharge of the ABL Obligations, the ABL Agents shall deliver to
the Second Lien Agent or shall execute such documents as the Second Lien Agent may reasonably request (at the expense of the Second Lien Borrower) to enable the Second Lien Agent to have control over any Control Collateral still in the ABL
Agents’ possession, custody, or control in the same form as received with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct, subject to the reinstatement provisions of Section 5.3 below. Upon the
Discharge of Second Lien Obligations, the Second Lien Agent shall deliver to the ABL Agents or shall execute such documents as the ABL Agents may reasonably request (at the expense of the ABL Borrowers) to enable the ABL Agents to have control over
any Control Collateral still in the Second Lien Agent’s possession, custody or control in the same form as received with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct. 

Section 4.2 Specific Performance. Each of the ABL Agents and the Second Lien Agent is hereby authorized to demand specific
performance of this Agreement, whether or not any Borrower or any Guarantor shall have complied with any of the provisions of any of the Credit Documents, at any time when the other Party shall have failed to comply with any of the provisions of
this Agreement applicable to it. Each of the ABL Agents, for and on behalf of itself and the ABL Secured Parties, and the Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, hereby irrevocably waives any defense based
on the adequacy of a remedy at law that might be asserted as a bar to such remedy of specific performance. 
 ARTICLE 5

 INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS 

Section 5.1 Notice of Acceptance and Other Waivers. 

(a) All ABL Obligations at any time made or incurred by any Borrower or any Guarantor shall be deemed to have been made or incurred in
reliance upon this Agreement, and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby waives notice of acceptance, or proof of reliance by the ABL Agents or any ABL Secured Party of this Agreement and notice of the
existence, increase, renewal, extension, accrual, creation, or non-payment of all or any part of the ABL Obligations. All Second Lien Obligations at any time 

  
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made or incurred by any Borrower or any Guarantor shall be deemed to have been made or incurred in reliance upon this Agreement, and the ABL Agents, on behalf of itself and the ABL Secured
Parties, hereby waives notice of acceptance, or proof of reliance, by the Second Lien Agent or any Second Lien Secured Party of this Agreement and notice of the existence, increase, renewal, extension, accrual, creation, or non-payment of all or any
part of the Second Lien Obligations. 
 (b) None of the ABL Agents, any ABL Secured Party, or any of their respective
Affiliates, directors, officers, employees, or agents shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds, or for any delay in doing so, or shall be under any obligation to sell or otherwise dispose
of any Collateral or Proceeds thereof or to take any other action whatsoever with regard to the Collateral or any part or Proceeds thereof, except as specifically provided in this Agreement. If the ABL Agents or any ABL Secured Party honors (or
fails to honor) a request by any Borrower for an extension of credit pursuant to any ABL Credit Agreement or any of the other ABL Documents, whether the ABL Agents or any ABL Secured Party have knowledge that the honoring of (or failure to honor)
any such request would constitute a default under the terms of any Second Lien Credit Agreement or any other Second Lien Document or an act, condition, or event that, with the giving of notice or the passage of time, or both, would constitute such a
default, or if the ABL Agents or any ABL Secured Party otherwise should exercise any of its contractual rights or remedies under any ABL Documents (subject to the express terms and conditions hereof), neither the ABL Agents nor any ABL Secured Party
shall have any liability whatsoever to the Second Lien Agent or any Second Lien Secured Party as a result of such action, omission, or exercise (so long as any such exercise does not breach the express terms and provisions of this Agreement). The
ABL Agents and the ABL Secured Parties shall be entitled to manage and supervise their loans and extensions of credit under any ABL Credit Agreement and any of the other ABL Documents as they may, in their sole discretion, deem appropriate, and may
manage their loans and extensions of credit without regard to any rights or interests that the Second Lien Agent or any of the Second Lien Secured Parties have in the Collateral, except as otherwise expressly set forth in this Agreement. The Second
Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that neither the ABL Agents nor any ABL Secured Party shall incur any liability as a result of a sale, lease, license, application, or other disposition of all or any
portion of the Collateral or Proceeds thereof, pursuant to the ABL Documents, so long as such disposition is conducted in accordance with mandatory provisions of applicable law and does not breach the provisions of this Agreement. 

(c) None of the Second Lien Agent, any Second Lien Secured Party or any of their respective Affiliates, directors, officers, employees,
or agents shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds, or for any delay in doing so, or shall be under any obligation to sell or otherwise dispose of any Collateral or Proceeds thereof or to
take any other action whatsoever with regard to the Collateral or any part or Proceeds thereof, except as specifically provided in this Agreement. If an act, condition, or event that, with the giving of notice or the passage of time, or both, would
constitute an Event of Default under any ABL Document, or if the Second Lien Agent or any Second Lien Secured Party otherwise should exercise any of its contractual rights or remedies under the Second Lien Documents (subject to the express terms and
conditions hereof), neither the Second Lien Agent nor any Second Lien Secured Party shall have any liability whatsoever to the ABL Agents or any 

  
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ABL Secured Party as a result of such action, omission, or exercise (so long as any such exercise does not breach the express terms and provisions of this Agreement). The Second Lien Agent and
the Second Lien Secured Parties shall be entitled to manage and supervise their loans and extensions of credit under the Second Lien Documents as they may, in their sole discretion, deem appropriate, and may manage their loans and extensions of
credit without regard to any rights or interests that the ABL Agents or any ABL Secured Party has in the Collateral, except as otherwise expressly set forth in this Agreement. The ABL Agents, on behalf of itself and the ABL Secured Parties, agrees
that none of the Second Lien Agent or the Second Lien Secured Parties shall incur any liability as a result of a sale, lease, license, application, or other disposition of the Collateral or any part or Proceeds thereof, pursuant to the Second Lien
Documents, so long as such disposition is conducted in accordance with mandatory provisions of applicable law and does not breach the provisions of this Agreement. 
 Section 5.2 Modifications to ABL Documents and Second Lien Documents. 

(a) The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby agrees that, without affecting the obligations
of the Second Lien Agent and the Second Lien Secured Parties hereunder, the ABL Agents and the ABL Secured Parties may, at any time and from time to time, in their sole discretion without the consent of or notice to the Second Lien Agent or any
Second Lien Secured Party, and without incurring any liability to the Second Lien Agent or any Second Lien Secured Party or impairing or releasing the Lien Priority provided for herein, amend, restate, supplement, replace, refinance, extend,
consolidate, restructure, or otherwise modify any of the ABL Documents in any manner whatsoever, other than in a manner which would have the effect of contravening the terms of this Agreement. 

(b) The ABL Agents, on behalf of themselves and the ABL Secured Parties, hereby agree that, without affecting the obligations of the ABL
Agents and the ABL Secured Parties hereunder, the Second Lien Agent and the Second Lien Secured Parties may, at any time and from time to time, in their sole discretion without the consent of or notice to the ABL Agents or any ABL Secured Party, and
without incurring any liability to the ABL Agents or any ABL Secured Party or impairing or releasing the Lien Priority provided for herein, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of
the Second Lien Documents in any manner whatsoever except that the following shall require the prior written consent of the ABL Agents: 
 (i) except as provided in Section 2.5, retain or obtain a Lien on any Property of any Person to secure any of the Second Lien Obligations; or 

(ii) amend the Second Lien Documents in any manner which would have the effect of contravening the terms of this Agreement
or the ABL Documents. 
 (c) The ABL Obligations and the Second Lien Obligations may be refinanced, in whole or in part, in each
case, without notice to, or the consent (except to the extent a consent is required pursuant to Section 5.2(b) above or to permit the refinancing transaction under any ABL Document or any Second Lien Document) of the ABL Agents, the ABL Secured
Parties, the Second Lien Agent or the Second Lien Secured Parties, as the case may be, all without affecting the Lien Priority provided for herein or the other provisions hereof, provided, however,

  
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that the holders of such refinancing Indebtedness (or an authorized agent or trustee on their behalf) bind themselves in writing to the terms of this Agreement pursuant to such documents or
agreements (including amendments or supplements to this Agreement) as the ABL Agents or the Second Lien Agent, as the case may be, shall reasonably request and in form and substance reasonably acceptable to the ABL Agents or the Second Lien Agent,
as the case may be, and any such refinancing transaction shall be in accordance with any applicable provisions of both the ABL Documents and the Second Lien Documents (to the extent such documents survive the refinancing). 

Section 5.3 Reinstatement and Continuation of Agreement. 

(a) If the ABL Agents or any ABL Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise pay to the
estate of any Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of the ABL Obligations (an “ABL Recovery”), then the ABL Obligations shall be reinstated to the extent of such
ABL Recovery. If this Agreement shall have been terminated prior to such ABL Recovery, this Agreement shall be reinstated in full force and effect in the event of such ABL Recovery, and such prior termination shall not diminish, release, discharge,
impair, or otherwise affect the obligations of the Parties from such date of reinstatement. All rights, interests, agreements, and obligations of the ABL Agents, the Second Lien Agent, the ABL Secured Parties, and the Second Lien Secured Parties
under this Agreement shall remain in full force and effect and shall continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency Proceeding by or against any Borrower or any Guarantor or
any other circumstance which otherwise might constitute a defense available to, or a discharge of any Borrower or any Guarantor in respect of the ABL Obligations or the Second Lien Obligations. No priority or right of the ABL Agents or any ABL
Secured Party shall at any time be prejudiced or impaired in any way by any act or failure to act on the part of any Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions, or covenants of any of the ABL
Documents, regardless of any knowledge thereof which the ABL Agents or any ABL Secured Party may have. 
 (b) If the Second Lien
Agent or any Second Lien Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise pay to the estate of any Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of
the Second Lien Obligations (a “Second Lien Recovery”), then the Second Lien Obligations shall be reinstated to the extent of such Second Lien Recovery. If this Agreement shall have been terminated prior to such Second Lien
Recovery, this Agreement shall be reinstated in full force and effect in the event of such Second Lien Recovery, and such prior termination shall not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties from such
date of reinstatement. All rights, interests, agreements, and obligations of the ABL Agents, the Second Lien Agent, the ABL Secured Parties, and the Second Lien Secured Parties under this Agreement shall remain in full force and effect and shall
continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency Proceeding by or against any Borrower or any Guarantor or any other circumstance which otherwise might constitute a defense
available to, or a discharge of any Borrower or any Guarantor in respect of the ABL Obligations or the Second Lien Obligations. No priority or right of the Second Lien Agent or any Second Lien Secured Party shall at any time be prejudiced

  
 26 

 
or impaired in any way by any act or failure to act on the part of any Borrower or any Guarantor or by the noncompliance by any Person with the Second Liens, provisions, or covenants of any of
the Second Lien Documents, regardless of any knowledge thereof which the Second Lien Agent or any Second Lien Secured Party may have. 
 ARTICLE 6 
 INSOLVENCY PROCEEDINGS 

Section 6.1 DIP Financing. 
 (a) If any Borrower or any Guarantor shall be subject to any Insolvency Proceeding at any time prior to the Discharge of ABL Obligations, and the ABL Agents or any of the ABL Secured Parties shall seek to
provide any Borrower or any Guarantor with, or consent to a third party providing, any financing under Section 364 of the Bankruptcy Code or consent to any order for the use of cash collateral constituting ABL Priority Collateral under
Section 363 of the Bankruptcy Code (or any similar provision of any foreign Debtor Relief Laws or under a court order in respect of measures granted with similar effect under any foreign Debtor Relief Laws) (each, a “DIP
Financing”), with such DIP Financing to be secured by all or any portion of the Collateral (including assets that, but for the application of Section 552 of the Bankruptcy Code would be Collateral), then the Second Lien Agent, on
behalf of itself and the Second Lien Secured Parties, agrees that it will raise no objection and will not support any objection to such DIP Financing or use of cash collateral or to the Liens securing the same on any basis, including, without
limitation, on the grounds of a failure to provide “adequate protection” for the Liens of the Second Lien Agent securing the Second Lien Obligations (and will not request any adequate protection solely as a result of such DIP Financing or
use of cash collateral that is ABL Priority Collateral, and will not offer or support any debtor-in-possession financing which would compete with such DIP Financing); provided that (i) the Second Lien Agent retains its Lien on the ABL
Priority Collateral to secure the Second Lien Obligations (in each case, including Proceeds thereof arising after the commencement of the case under the any Debtor Relief Laws), subject to the terms hereof, to the Liens in favor of the ABL Secured
Parties on the ABL Priority Collateral existing prior to the commencement of such Insolvency Proceeding, to any adequate protection Liens granted in favor of the ABL Obligations and to the senior priority of the DIP Financing and (ii) unless it
shall otherwise consent, the Second Lien Agent shall retain its Lien on the Second Lien Priority Collateral with the same priority as existed prior to the commencement of the case under the subject Debtor Relief Laws and any Lien of the ABL Agents
(or other provider of DIP Financing) on the Second Lien Loan Priority Collateral securing such DIP Financing is junior and subordinate to the Lien of the Second Lien Agent on the Second Lien Priority Collateral (to the extent of the Second Lien
Priority Debt), (iii) all Liens on ABL Priority Collateral securing any such DIP Financing shall be senior to or on a parity with the Liens of the ABL Agents and the ABL Secured Parties securing the ABL Obligations on ABL Priority Collateral
and (iv) the foregoing provisions of this Section 6.1(a) shall not prevent the Second Lien Agent and the Second Lien Secured Parties from objecting to any provision in any DIP Financing relating to any provision or content of a plan of
reorganization or other plan of similar effect under any Debtor Relief Laws. 
 (b) All Liens granted to the ABL Agents or the
Second Lien Agent in any Insolvency Proceeding, whether as adequate protection or otherwise, are intended by the Parties 

  
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to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement. 
 Section 6.2 Relief From Stay. Until the Discharge of ABL Obligations has occurred, the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees not to seek relief
from the automatic stay or any other stay in any Insolvency Proceeding in respect of any portion of the ABL Priority Collateral without the ABL Agents’ express written consent. Until the Discharge of Second Lien Obligations has occurred, the
ABL Agents, on behalf of themselves and the ABL Secured Parties, agrees not to seek relief from the automatic stay or any other stay in any Insolvency Proceeding in respect of any portion of the Second Lien Priority Collateral without the Second
Lien Agent’s express written consent. In addition, neither the Second Lien Agent nor the ABL Agents shall seek any relief from the automatic stay with respect to any Collateral without providing three (3) days’ prior written notice to
the other, unless such period is agreed by both the ABL Agents and the Second Lien Agent to be modified or unless the ABL Agents or Second Lien Agent, as applicable, makes a good faith determination that either (A) the ABL Priority Collateral
or the Second Lien Priority Collateral, as applicable, will decline speedily in value or (B) the failure to take any action will have a reasonable likelihood of endangering the ABL Agents’ or the Second Lien Agent’s ability to realize
upon its Collateral. 
 Section 6.3 No Contest; Adequate Protection. 

(a) The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that, prior to the Discharge of ABL
Obligations, none of them shall contest (or support any other Person contesting) (i) any request by the ABL Agents or any ABL Secured Party for adequate protection of its interest in the Collateral, (ii) subject to Section 6.1(a)
above, any proposed provision of DIP Financing by the ABL Agents and the ABL Secured Parties (or any other Person proposing to provide DIP Financing with the consent of the ABL Agents) or (iii) any objection by the ABL Agents or any ABL Secured
Party to any motion, relief, action, or proceeding based on a claim by the ABL Agents or any ABL Secured Party that its interests in the Collateral are not adequately protected (or any other similar request under any law applicable to an Insolvency
Proceeding), so long as any Liens granted to the ABL Agents as adequate protection of its interests are subject to this Agreement. 
 (b) The ABL Agents, on behalf of themselves and the ABL Secured Parties, agree that, prior to the Discharge of Second Lien Obligations, none of them shall contest (or support any other Person contesting)
(i) any request by the Second Lien Agent or any Second Lien Secured Party for adequate protection of its interest in the Collateral (unless in contravention of Section 6.1(a) above or 6.3(c) below), or (ii) any objection by the Second
Lien Agent or any Second Lien Secured Party to any motion, relief, action or proceeding based on a claim by the Second Lien Agent or any Second Lien Secured Party that its interests in the Collateral (unless in contravention of Section 6.1(a)
above) are not adequately protected (or any other similar request under any law applicable to an Insolvency Proceeding), so long as any Liens granted to the Second Lien Agent as adequate protection of its interests are subject to this Agreement.

  
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 (c) Notwithstanding
the foregoing provisions in this Section 6.3, in any Insolvency Proceeding: 
 (i) if the ABL Secured Parties (or any
subset thereof) are granted adequate protection with respect to the ABL Priority Collateral in the form of additional collateral (even if such collateral is not of a type which would otherwise have constituted ABL Priority Collateral), then the ABL
Agents, on behalf of themselves and the ABL Secured Parties, agrees that the Second Lien Agent, on behalf of itself or any of the Second Lien Secured Parties, may seek or request (and the ABL Secured Parties will not oppose such request) adequate
protection with respect to its interests in such Collateral in the form of a Lien on the same additional collateral, which Lien will be subordinated to the Liens securing the ABL Obligations on the same basis as the other Liens of the Second Lien
Agent on ABL Priority Collateral; 
 (ii) in the event the Second Lien Agent, on behalf of itself or any of the Second Lien
Secured Parties, is granted adequate protection in respect of Second Lien Priority Collateral in the form of additional collateral (even if such collateral is not of a type which would otherwise have constituted Second Lien Priority Collateral),
then the Second Lien Agent, on behalf of itself and any of the Second Lien Secured Parties, agrees that the ABL Agents on behalf of themselves or any of the ABL Secured Parties, may seek or request (and the Second Lien Secured Parties will not
oppose such request) adequate protection with respect to its interests in such Collateral in the form of a Lien on the same additional collateral, which Lien will be subordinated to the Liens securing the Second Lien Obligations on the same basis as
the other Liens of the ABL Agents on Second Lien Priority Collateral; and 
 (iii) except as otherwise expressly set forth in
Section 6.1 or in connection with the exercise of remedies with respect to (A) the ABL Priority Collateral, nothing herein shall limit the rights of the Second Lien Agent or the Second Lien Secured Parties from seeking adequate protection
with respect to their rights in the Second Lien Priority Collateral in any Insolvency Proceeding (including adequate protection in the form of a cash payment, periodic cash payments or otherwise) or (B) the Second Lien Priority Collateral,
nothing herein shall limit the rights of the ABL Agents or the ABL Secured Parties from seeking adequate protection with respect to their rights in the ABL Priority Collateral in any Insolvency Proceeding (including adequate protection in the form
of a cash payment, periodic cash payments or otherwise). 
 Section 6.4 Asset Sales. The Second Lien Agent agrees,
on behalf of itself and the Second Lien Secured Parties, that it will not oppose any sale consented to by the ABL Agents of any ABL Priority Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any similar provision under the law
applicable to any Insolvency Proceeding or under a court order in respect of measures granted with similar effect under any foreign Debtor Relief Laws) so long as the Liens of the Parties attach to the proceeds of such sale consistent with the Lien
Priority on the assets sold and such proceeds are otherwise applied in accordance with this Agreement. The ABL Agents agree, on behalf of themselves and the ABL Secured Parties, that they will not oppose any sale consented to by the Second Lien
Agent of any Second Priority Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any similar provision under the law applicable to any Insolvency Proceeding or under a court order in respect of measures granted with similar effect
under any foreign Debtor Relief Laws) so long as the Liens of the Parties 

  
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attach to the proceeds of such sale consistent with the Lien Priority on the assets sold and such proceeds are otherwise applied in accordance with this Agreement. 

Section 6.5 Separate Grants of Security and Separate Classification. Each Second Lien Secured Party and each ABL Secured
Party acknowledges and agrees that (i) the grants of Liens pursuant to the ABL Security Documents and the Second Lien Security Documents constitute two separate and distinct grants of Liens and (ii) because of, among other things, their
differing rights in the Collateral, the Second Lien Obligations are fundamentally different from the ABL Obligations and must be separately classified in any plan of reorganization (or other plan of similar effect under any Debtor Relief Laws)
proposed or adopted in an Insolvency Proceeding. To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the claims of the ABL Secured Parties and the Second Lien Secured Parties in
respect of the Collateral constitute only one secured claim (rather than separate classes of senior and junior secured claims), then the ABL Secured Parties and the Second Lien Secured Parties hereby acknowledge and agree that all distributions
shall be made as if there were separate classes of ABL Obligation claims and Second Lien Obligation claims against the Loan Parties, with the effect being that, to the extent that the aggregate value of the ABL Priority Collateral or Second Lien
Priority Collateral is sufficient (for this purpose ignoring all claims held by the other Secured Parties), the ABL Secured Parties or the Second Lien Secured Parties, respectively, shall be entitled to receive, in addition to amounts distributed to
them in respect of principal, pre-petition interest and other claims, all amounts owing in respect of post-petition interest that is available from each pool of Priority Collateral for each of the ABL Secured Parties and the Second Lien Secured
Parties, respectively, before any distribution is made in respect of the claims held by the other Secured Parties from such Priority Collateral, with the other Secured Parties hereby acknowledging and agreeing to turn over to the respective other
Secured Parties amounts otherwise received or receivable by them to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect of reducing the aggregate recoveries. 

Section 6.6 Enforceability. The provisions of this Agreement are intended to be and shall be enforceable under
Section 510(a) of the Bankruptcy Code. 
 Section 6.7 ABL Obligations Unconditional. All rights of the ABL
Agents hereunder, and all agreements and obligations of the Second Lien Agent and the Loan Parties (to the extent applicable) hereunder, shall, except as otherwise specifically provided herein, remain in full force and effect irrespective of:

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

(ii) any change in the time, place or manner of payment of, or in any other term of, all or any portion of the ABL
Obligations, or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any ABL Document; 

(iii) any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral or any other
collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any 

  
 30 

 
refinancing, replacement, refunding, restatement or increase of all or any portion of the ABL Obligations or any guarantee or guaranty thereof; or 

(iv) any other circumstances that otherwise might constitute a defense available to, or a discharge of, any Loan Party in
respect of the ABL Obligations, or of any of the Second Lien Agent or any Loan Party, to the extent applicable, in respect of this Agreement. 
 Section 6.8 Second Lien Obligations Unconditional. All rights of the Second Lien Agent hereunder, all agreements and obligations of the ABL Agents and the Loan Parties (to the extent
applicable) hereunder, shall, except as otherwise specifically provided herein, remain in full force and effect irrespective of: 
 (i) any lack of validity or enforceability of any Second Lien Document; 
 (ii) any change in the time, place or manner of payment of, or in any other Second Lien of, all or any portion of the Second Lien Obligations, or any amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any Second Lien Document (but solely to the extent permitted pursuant to Section 5.2(b) above); 

(iii) any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral, or any other
collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding, restatement or increase of all or any portion of the Second Lien Obligations or any guarantee
or guaranty thereof; or 
 (iv) any other circumstances that otherwise might constitute a defense available to,
or a discharge of, any Loan Party in respect of the Second Lien Obligations, or of any of the ABL Agents or any Loan Party, to the extent applicable, in respect of this Agreement. 

ARTICLE 7 

MISCELLANEOUS 
 Section 7.1 Rights of Subrogation. The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that no payment to the ABL Agents or any ABL Secured Party
pursuant to the provisions of this Agreement shall entitle the Second Lien Agent or any Second Lien Secured Party to exercise any rights of subrogation in respect thereof until the Discharge of ABL Obligations. Thereafter, the ABL Agents agree to
execute such documents, agreements, and instruments as the Second Lien Agent or any Second Lien Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the ABL Obligations resulting from
payments to the ABL Agents by such Person, so long as all costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by the ABL Agents are paid by such Person upon request for payment thereof. The ABL
Agents, for and on behalf of themselves and the ABL Secured Parties, agrees that no payment to the Second Lien Agent or any Second Lien Secured Party pursuant to the provisions of this Agreement shall entitle the ABL Agents or any ABL Secured Party
to exercise 

  
 31 

 
any rights of subrogation in respect thereof until the Discharge of Second Lien Obligations. Thereafter, the Second Lien Agent agrees to execute such documents, agreements, and instruments as the
ABL Agents or any ABL Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the Second Lien Obligations resulting from payments to the Second Lien Agent by such Person, so long as all costs
and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by the Second Lien Agent are paid by such Person upon request for payment thereof. 

Section 7.2 Further Assurances. The Parties will, at their own expense and at any time and from time to time, promptly
execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that either Party may reasonably request, in order to protect any right or interest granted or purported to be granted
hereby or to enable the ABL Agents or the Second Lien Agent to exercise and enforce their rights and remedies hereunder; provided, however, that no Party shall be required to pay over any payment or distribution, execute any
instruments or documents, or take any other action referred to in this Section 7.2, to the extent that such action would contravene any law, order or other legal requirement or any of the terms or provisions of this Agreement, and in the event
of a controversy or dispute, such Party may interplead any payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution under this Section 7.2. 

Section 7.3 Representations. The Second Lien Agent represents and warrants to the ABL Agents that it has the requisite
power and authority under the Second Lien Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and the Second Lien Secured Parties and that this Agreement shall be binding obligations of the Second
Lien Agent and the Second Lien Secured Parties, enforceable against the Second Lien Agent and the Second Lien Secured Parties in accordance with its terms. The ABL Agents represent and warrant to the Second Lien Agent that they have the requisite
power and authority under the ABL Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of themselves and the ABL Secured Parties and that this Agreement shall be binding obligations of the ABL Agents and the
ABL Secured Parties, enforceable against the ABL Agents and the ABL Secured Parties in accordance with its terms. 
 Section
7.4 Amendments. No amendment or waiver of any provision of this Agreement nor consent to any departure by any Party hereto shall be effective unless it is in a written agreement executed by the Second Lien Agent and the ABL Agents and
then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

Section 7.5 Addresses for Notices. Unless otherwise specifically provided herein, any notice or other communication herein
required or permitted to be given shall be in writing and may be personally served, telecopied, or sent by overnight express courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service,
upon receipt of a telecopy or three (3) days after deposit in the United States mail (certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of the parties hereto (until notice of a change thereof is
delivered as provided in this Section) 

  
 32 

 
shall be as set forth below 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. 

ABL Agents: Bank of America, N.A. 
 100 Federal Street 
 Boston, Massachusetts 02109 

Attention: Stephen J. Garvin 
 With a copy to: 
 Riemer & Braunstein, LLP 

Three Center Plaza 
 Boston, MA 02108 
 Attention: David S. Berman, Esquire 

Fax: (617) 880-3456 
 Second Lien Agent: 
 With a copy to: 

Section 7.6 No Waiver; Remedies. No failure on the part of any Party to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. 
 Section 7.7 Continuing Agreement, Transfer of Secured Obligations.
This Agreement is a continuing agreement and shall (a) remain in full force and effect until the earlier of the Discharge of ABL Obligations or the Discharge of Second Lien Obligations, (b) be binding upon the Parties and their successors
and assigns, and (c) inure to the benefit of and be enforceable by the Parties and their respective successors, transferees and assigns. Nothing herein is intended, or shall be construed to give, any other Person any right, remedy or claim
under, to or in respect of this Agreement or any Collateral. All references to any Loan Party shall include any Loan Party as debtor-in-possession and any receiver or trustee for such Loan Party in any Insolvency Proceeding. Without limiting the
generality of the foregoing clause (c), the ABL Agents, any ABL Secured Party, the Second Lien Agent, or any Second Lien Secured Party may assign or otherwise transfer all or any portion of the ABL Obligations or the Second Lien Obligations, as
applicable, to any other Person (other than any Borrower, any Guarantor or any Affiliate of any Borrower or any Guarantor and any Subsidiary of any Borrower or any Guarantor, and such other Person shall thereupon become vested with all the rights
and obligations in respect thereof granted to the ABL Agents, the Second Lien Agent, any ABL Secured Party, or any Second Lien Secured Party, as the case may be, herein or otherwise. The ABL Secured Parties and the Second Lien Secured Parties may
continue, at any time and without 

  
 33 

 
notice to the other parties hereto, to extend credit and other financial accommodations, lend monies and provide Indebtedness to, or for the benefit of, any Loan Party on the faith hereof.

 Section 7.8 Governing Law; Entire Agreement. The validity, performance, and enforcement of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of New York. This Agreement constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes any prior agreements,
written or oral, with respect thereto. 
 Section 7.9 Counterparts. This Agreement may be executed in any number
of counterparts, and it is not necessary that the signatures of all Parties be contained on any one counterpart hereof, each counterpart will be deemed to be an original, and all together shall constitute one and the same document. 

Section 7.10 No Third Party Beneficiaries. This Agreement is solely for the benefit of the ABL Agents, ABL Secured Parties,
Second Lien Agent and Second Lien Secured Parties. No other Person (including any Borrower, any Guarantor or any Affiliate of any Borrower or any Guarantor, or any Subsidiary of any Borrower or any Guarantor) shall be deemed to be a third party
beneficiary of this Agreement. 
 Section 7.11 Headings. The headings of the articles and sections of this
Agreement are inserted for purposes of convenience only and shall not be construed to affect the meaning or construction of any of the provisions hereof. 
 Section 7.12 Severability. If any of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision of this Agreement and shall not invalidate the Lien Priority or the application of Proceeds and other priorities set forth in this Agreement. 

Section 7.13 Attorneys’ Fees. The Parties agree that if any dispute, arbitration, litigation, or other proceeding is
brought with respect to the enforcement of this Agreement or any provision hereof, the prevailing party in such dispute, arbitration, litigation, or other proceeding shall be entitled to recover its reasonable attorneys’ fees and all other
costs and expenses incurred in the enforcement of this Agreement, irrespective of whether suit is brought. 
 Section 7.14
VENUE; JURY TRIAL WAIVER. 
 (a) EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. 

  
 34 

 
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY ABL SECURED PARTY OR ANY SECOND LIEN SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY SECOND LIEN DOCUMENTS, OR ANY
ABL DOCUMENTS AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 
 (b) EACH PARTY HERETO HEREBY WAIVES
ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW
OR STATUTORY CLAIMS. EACH PARTY HERETO REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 (c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 7.5. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

Section 7.15 Intercreditor Agreement. This Agreement is the Intercreditor Agreement referred to in the ABL Credit Agreement
and the Second Lien Credit Agreement. Nothing in this Agreement shall be deemed to subordinate the obligations due to (i) any ABL Secured Party to the obligations due to any Second Lien Secured Party or (ii) any Second Lien Secured Party
to the obligations due to any ABL Secured Party (in each case, whether before or after the occurrence of an Insolvency Proceeding), it being the intent of the Parties that this Agreement shall effectuate a subordination of Liens but not a
subordination of Indebtedness. 
 Section 7.16 No Warranties or Liability. The Second Lien Agent and the ABL
Agents acknowledge and agree that neither has made any representation or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of any other ABL Document or any Second Lien Document. Except as
otherwise provided in this Agreement, the Second Lien Agent and the ABL Agents will be entitled to manage and supervise their respective extensions of credit to any Loan Party in accordance with law and their usual practices, modified from time to
time as they deem appropriate. 
 Section 7.17 Conflicts. In the event of any conflict between the provisions of
this Agreement and the provisions of any ABL Document or any Second Lien Document, the provisions of this Agreement shall govern. 

  
 35 

  
 Section 7.18
Information Concerning Financial Condition of the Loan Parties. (a) Each of the Second Lien Agent and the ABL Agents hereby assumes responsibility for keeping itself informed of the financial condition of the Loan Parties and all other
circumstances bearing upon the risk of nonpayment of the ABL Obligations or the Second Lien Obligations. The Second Lien Agent and the ABL Agents hereby agree that no party shall have any duty to advise any other party of information known to it
regarding such condition or any such circumstances. In the event the Second Lien Agent or the ABL Agents, in their sole discretion, undertakes at any time or from time to time to provide any information to any other party to this Agreement,
(a) they shall be under no obligation (i) to provide any such information to such other party or any other party on any subsequent occasion, (ii) to undertake any investigation not a part of its regular business routine, or
(iii) to disclose any other information, (b) they make no representation as to the accuracy or completeness of any such information and shall not be liable for any information contained therein, and (c) the Party receiving such
information hereby agrees to hold the providing Party harmless from any action the receiving Party may take or conclusion the receiving Party may reach or draw from any such information, as well as from and against any and all losses, claims,
damages, liabilities, and expenses to which such receiving Party may become subject arising out of or in connection with the use of such information. 
 (b) The Loan Parties agree that any information provided to the ABL Agents, the Second Lien Agent, any ABL Secured Party or any Second Lien Secured Party may be shared by such Person with any ABL Secured
Party, any Second Lien Secured Party, the ABL Agents or the Second Lien Agent notwithstanding a request or demand by such Loan Party that such information be kept confidential; provided that such information shall otherwise be subject to the
respective confidentiality provisions in the ABL Credit Agreement and the Second Lien Credit Agreement, as applicable 

[SIGNATURE PAGES FOLLOW] 

  
 36 

  
 IN WITNESS WHEREOF,
the ABL Agents, for and on behalf of themselves and the ABL Lenders, and the Second Lien Agent, for and on behalf of itself and the Second Lien Lenders, have caused this Agreement to be duly executed and delivered as of the date first above written.

  

			
	BANK OF AMERICA, N.A., in its capacity as an ABL Agent
		
	By:	 	 
		 	 Name:

Title:

  

			
	WELLS FARGO RETAIL FINANCE, LLC, in its capacity as an ABL Agent
		
	By:	 	 
		 	 Name:

Title:

  

			
	GENERAL ELECTRIC CAPITAL CORPORATION, in its capacity as an ABL Agent
		
	By:	 	 
		 	 Name:

Title:

  

			
	[            ], in its capacity as the Second Lien Agent
		
	By:	 	 
		 	 Name:

Title:

  
 Signature
Page to Intercreditor Agreement 

  
 ACKNOWLEDGMENT

 Each Borrower and each Guarantor hereby acknowledges that it has received a copy of this Agreement and consents thereto,
agrees to recognize all rights granted thereby to the ABL Agents and the Second Lien Agent, and will not do any act or perform any obligation which is not in accordance with the agreements set forth in this Agreement. Each Borrower and each
Guarantor further acknowledges and agrees that it is not an intended beneficiary or third party beneficiary under this Agreement and (i) as between the ABL Secured Parties and the ABL Loan Parties, the ABL Documents remain in full force and
effect as written and are in no way modified hereby, and (ii) as between the Second Lien Secured Parties, the Second Lien Borrowers and Second Lien Guarantors, the Second Lien Documents remain in full force and effect as written and are in no
way modified hereby. 
  

			
	SEARS ROEBUCK ACCEPTANCE CORP., as Borrower
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART CORPORATION, as Borrower
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS HOLDINGS CORPORATION, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART HOLDING CORPORATION, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART MANAGEMENT CORPORATION, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

Acknowledgement — Intercreditor Agreement 

  
 
			
	KLC, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART STORES OF ILLINOIS LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART STORES OF TEXAS LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART OF MICHIGAN, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART OF WASHINGTON LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	KMART.COM LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  
 39 

  
 
			
	MYGOFER LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS BRANDS MANAGEMENT CORPORATION, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS, ROEBUCK AND CO., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	CALIFORNIA BUILDER APPLIANCES, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	FLORIDA BUILDER APPLIANCES, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SOE, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

Acknowledgement — Intercreditor Agreement 

  
 
			
	STARWEST, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	LANDS’ END, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	PRIVATE BRANDS, LTD., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS HOME IMPROVEMENT PRODUCTS, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS, ROEBUCK DE PUERTO RICO, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS AUTHORIZED HOMETOWN STORES, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS OUTLET STORES, L.L.C., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  
 41 

  
 
			
	SEARS HOLDINGS MANAGEMENT CORPORATION, as Guarantor 
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	LANDS’ END DIRECT MERCHANTS, INC., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS HOME APPLIANCE SHOWROOMS, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS PROTECTION COMPANY, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	SEARS PROTECTION COMPANY (FLORIDA), L.L.C., as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	A&E HOME DELIVERY, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  
 42 

  
 
			
	A&E LAWN & GARDEN, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	A&E SIGNATURE SERVICE, LLC, as Guarantor
		
	By:	 	 
	 Name:
 Title:
	 	

  
 43 

  
 EXHIBIT H

 FORM OF CUSTOMS BROKER AGREEMENT 
 CUSTOMS BROKER AGENCY AGREEMENT 
  

	
	Name and Address of Customs Broker:
	
	  
	  
	  
	

 Dear Sir/Madam: 
 BANK OF AMERICA, N.A. (“Bank of America”), WELLS FARGO RETAIL FINANCE, LLC and GENERAL ELECTRIC CAPITAL CORPORATION are Co-Collateral Agents (each, a “Co-Collateral
Agent”, and collectively, the “Co-Collateral Agents”) with respect to a loan arrangement (the “Loan Arrangement”) with [Kmart Corporation and Sears Roebuck Acceptance Corporation (collectively, the
“Borrowers”), the obligations of which have been guaranteed by [Sears, Roebuck and Co., a New York corporation (the “Company”)]]1. To secure the obligations of the Company under the Loan Arrangement, the undersigned has granted to the Co-Collateral
Agents, for the benefit of the Co-Collateral Agents and certain other secured parties (together with the Co-Collateral Agents, the “Credit Parties”), a security interest in and to certain of the assets of the Company (the
“Collateral”), including, without limitation, all of the Company’s inventory, documents, bills of lading and other documents of title. 
 The Co-Collateral Agents have requested that you (the “Customs Broker”) act as their agent for the limited purpose of more fully perfecting and protecting the security interest of the
Co-Collateral Agents in such bills of lading, documents and other documents of title and in the goods and inventory for which such bills of lading, documents, or other documents of title have been issued, and, by acknowledging and executing this
letter agreement (this “Agreement”), the Customs Broker has agreed to do so. This Agreement shall set forth the terms of the Customs Broker’s engagement by the Co-Collateral Agents. As used herein, the term “Control
Co-Collateral Agent” means, initially, Bank of America, provided that Bank of America may at any time deliver written notice to the Customs Broker advising the Customs Broker that the Control Co-Collateral Agent is no longer Bank of
America, following which time the term “Co-Collateral Agent” shall mean and refer to such other entity as may be specified on such notice. 
 Section 1         Acknowledgment of Security Interest; Power of Attorney:    The Customs Broker acknowledges, consents, and agrees
that the Company has assigned to the Co-Collateral Agents, for their own benefit and the benefit of the other Credit Parties, all of the Company’s right, title, and interest in, to and under all goods and any contracts or agreements with
carriers, customs brokers, and/or freight forwarders for shipment or delivery of such goods. The Company further advises the Customs Broker, and the Customs Broker acknowledges, 

 

	1	Use reference to guaranty to the extent the Company is not a Borrower; if the Company is a Borrower, identify the name of the Company as appropriate.

  
 1 

 
consents, and agrees, that the Company has irrevocably constituted and appointed the Control Co-Collateral Agent as the Company’s true and lawful attorney, with full power of substitution to
exercise all of such rights, title, and interest, which appointment has been coupled with an interest. 
 Section
2         Appointment of Customs Broker as Agent of Co-Collateral Agents:    The Customs Broker is hereby appointed as agent for the Co-Collateral Agents to receive and retain
possession of all bills of lading, waybills, documents, and other documents of title (collectively, the “Title Documents”) heretofore or at any time hereafter issued for any inventory of the Company which are received by the Customs
Broker for processing (the “Inventory”), such receipt and retention of possession of the Title Documents and Inventory being for the purpose of perfecting and preserving more fully the Co-Collateral Agents’ security interest in
the Title Documents and the Inventory. The Customs Broker will maintain possession of the Title Documents and the Inventory, subject to the security interest of the Co-Collateral Agents, and will note the security interest of the Co-Collateral
Agents on the Customs Broker’s books and records. In the event that the Control Co-Collateral Agent is designated as the consignee or co-consignee on any such Title Documents, subject to the terms and conditions hereof, the Control
Co-Collateral Agent hereby appoints the Customs Broker as its attorney-in-fact solely to execute and deliver any such Title Documents for and on behalf of the Control Co-Collateral Agent pursuant to the terms of this Agreement. 

Section 3         Delivery of Title Documents; Release of
Goods:    Until the Customs Broker receives written notification (given in accordance with paragraph 7 below) to the contrary from the Control Co-Collateral Agent pursuant to paragraph 4 below, the Customs Broker is
authorized by the Co-Collateral Agents to, and the Customs Broker may, deliver: 

3.1      the Title Documents to the Company or its agents for the purpose of permitting the
Company, as consignee, to obtain possession or control of the Inventory subject to such Title Documents; and 

3.2      the Inventory to the Company or as directed by the Company. 

Section 4         Notice From Control Co-Collateral Agent To Follow Control
Co-Collateral Agent’s Instructions:    Upon the Customs Broker’s receipt of written notification from the Control Co-Collateral Agent, the Customs Broker shall thereafter follow solely the instructions of the
Control Co-Collateral Agent concerning the disposition of the Title Documents and the Inventory and will not follow any instructions of the Company or any other person concerning the same. 

Section 5         Limited Authority:    The Customs
Broker’s sole authority as the agent of the Co-Collateral Agents is to receive and maintain possession of the Title Documents and the Inventory on behalf of the Co-Collateral Agents and to follow the instructions of the Control Co-Collateral
Agent as provided herein. Except as may be specifically authorized and instructed by the Control Co-Collateral Agent, the Customs Broker shall have no authority as the agent of the Co-Collateral Agents to undertake any other action or to enter into
any other commitments on behalf of the Co-Collateral Agents. 

  
 2 

  
 Section
6        Expenses:    No Co-Collateral Agent shall be obligated to compensate the Customs Broker for serving as agent hereunder, nor shall any Co-Collateral Agent be responsible
for any fees, expenses, customs, duties, taxes, or other charges relating to the Title Documents or the Inventory. The Customs Broker acknowledges that the Company is solely responsible for payment of any compensation and charges which are to the
Company’s account. The Company is further responsible for paying any fees, expenses, customs duties, taxes, or other charges which are, or may, accrue, to the account of the Title Documents and the Inventory. The Control Co-Collateral Agent, at
the Control Co-Collateral Agent’s option, may authorize the Customs Broker to perform specified services on behalf of the Co-Collateral Agents, at mutually agreed rates of compensation, which shall be charged to the Co-Collateral Agents’
account and payable to the Customs Broker by the Co-Collateral Agents (provided, however, such payment shall not affect any obligation of the Company to reimburse the Co-Collateral Agents for any such compensation or other costs or expenses
incurred by the Co-Collateral Agents pursuant to the terms of the financing agreements referred to above). 
 Section
7        Term: 
 7.1      In
the event that the Customs Broker desires to terminate this Agreement, the Customs Broker shall furnish the Control Co-Collateral Agent with not less than sixty (60) days’ prior written notice of the Customs Broker’s intention to do
so. During such sixty (60) day period (which may be shortened by notice to the Customs Broker from the Control Co-Collateral Agent), the Customs Broker shall continue to serve as agent hereunder and the Company shall fully compensate the
Customs Broker with respect to that period. The Customs Broker shall also cooperate with the Co-Collateral Agents and execute all such documentation and undertake all such action as may be reasonably required by the Control Co-Collateral Agent in
connection with such termination. Any written notice provided to any party hereto shall be delivered to such party at the following address (or to such other address, written notice of which is given by such party to the other parties hereto in
writing with at least seven (7) days’ prior notice): 
  

							
		 	If to any Co-Collateral Agent:	 		 	
			
		 	 Bank of America, N.A., as Control Co-Collateral Agent
	 	
		 	 100 Federal Street, 9th Floor

Boston, Massachusetts 02110

Attention: Stephen Garvin

Re: Sears
	 		 	
				
		 	If to the Customs Broker:	 		 	
				
		 	[Customs Broker]	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	Attention:                           
                 	 		 	
				
		 	If to the Company:	 		 	

  
 3 

  

							
		 	[Sears, Roebuck & Co.]2	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	Attention:                           
                 	 		 	

 7.2        Except as provided in
Section 7.1, above, this Agreement shall remain in full force and effect until the Customs Broker receives written notification from the Control Co-Collateral Agent of the termination of the Customs Broker’s responsibilities hereunder.
This Agreement may be amended only by notice in writing signed by the Company and an officer of the Control Co-Collateral Agent and may be terminated solely by written notice signed by an officer of the Control Co-Collateral Agent. 

Section 8         Customs Broker’s Lien:    The
Customs Broker shall have a lien, to the extent provided by law, on any Inventory then in the possession of the Customs Broker, which lien shall be to the extent of any out-of-pocket costs, fees, freight charges, storage charges, or other charges or
out-of-pocket expenses incurred or paid by the Customs Broker with respect only to that Inventory then in the possession of the Customs Broker, for which the Customs Broker has not received payment, but not for any amount owed on account of any
other Inventory, item, or matter. 
 Section 9          Notice of
Stoppage In Transit:    The Customs Broker hereby covenants and agrees to provide to the Control Co-Collateral Agent prompt written notice of (but in any event within three (3) days following) the Customs Broker’s
receipt of notice of stoppage in transit with respect to any Title Documents or Inventory. 
 Section 10
      Counterparts; Integration:    This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but
all of which when taken together shall constitute a single contract. This Agreement constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all contemporaneous or previous agreements and
understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by the parties and when the Control Co-Collateral Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section 11         Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. 
 [SIGNATURE PAGE FOLLOWS] 

 

	2	Insert name of appropriate Loan Party. 

  
 4 

  
 If the foregoing
correctly sets forth our understanding, please indicate the Customs Broker’s assent below, following which this Agreement will take effect. 
  

			
	Very truly yours,
	
	COMPANY:
	
	[SEARS, ROEBUCK AND CO.]3
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 

	3	 Insert name of appropriate Loan Party. 

 Signature Page to Customs Broker Agency Agreement 

  
 Acknowledged and agreed: 

 

			
	CUSTOMS BROKER:
	
	[                            
                                         
           ]
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 CO-COLLATERAL AGENTS: 

 

			
	BANK OF AMERICA, N.A.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	WELLS FARGO RETAIL FINANCE, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	GENERAL ELECTRIC CAPITAL CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Signature Page to Customs Broker
Agency Agreement 

  
 EXHIBIT I

 FORM OF THIRD PARTY PAYOR NOTIFICATION 
 THIRD PARTY PAYOR NOTIFICATION – PHARMACY RECEIVABLES 
 PREPARE ON
BORROWER/LOAN PARTY LETTERHEAD – 
 ONE FOR EACH THIRD PARTY PAYOR 

May         , 2009 

 

	To:	[Name and Address of Third Party Payor] 

 (the “Processor”) 
  

	 	Re:	Kmart Corporation 

 [Account
Number[s]:                                 ] 

Dear Sir/Madam: 
 BANK OF
AMERICA, N.A. (“Bank of America”), WELLS FARGO RETAIL FINANCE, LLC and GENERAL ELECTRIC CAPITAL CORPORATION are Co-Collateral Agents (each, a “Co-Collateral Agent”, and collectively, the “Co-Collateral
Agents”) with respect to a loan arrangement (the “Loan Arrangement”) pursuant to the Amended and Restated Credit Agreement dated as of May 21, 2009 by and among Kmart Corporation (the “Company”), Sears
Roebuck Acceptance Corp. (collectively, the “Borrowers”) and the other parties thereto. To secure the obligations of the undersigned under the Loan Arrangement, the undersigned has granted to the Control Co-Collateral Agent, for the
benefit of the Co-Collateral Agents and certain other secured parties (together with the Co-Collateral Agents, the “Credit Parties”), a lien on, among other things, all claims on account of pharmacy services submitted by the Company
to the Processor for processing and the amounts which the Processor owes to the Company on account thereof (the “Pharmacy Proceeds”). As used herein, the term “Control Co-Collateral Agent” means, initially, Bank of
America, provided that Bank of America may at any time deliver written notice to the Processor advising the Processor that the Control Co-Collateral Agent is no longer Bank of America, following which time the term “Co-Collateral
Agent” shall mean and refer to such other entity as may be specified on such notice. 
 The undersigned hereby instructs
Processor that, until the Processor receives written notification from the Control Co-Collateral Agent to the contrary, all amounts that may become due from time to time from the Processor to the Company with respect to the above-referenced Account
Number[s] shall be transferred as follows: 
  

	 	(a)	By ACH, Depository Transfer Check, or Electronic Depository Transfer to: 

 [                                  
                      ] 
 ABA #                         

Account Name: [Sears] 

  
 1 

  
 Account No.
                             
 or 
  

	 	(b)	As the Processor may be otherwise instructed from time to time in writing by an officer of the Control Co-Collateral Agent. 

Upon the written request of the Control Co-Collateral Agent, a copy of each periodic statement issued by the Processor to the Company
should be provided to the Control Co-Collateral Agent at the following address (which address may be changed upon seven (7) days’ written notice given to the Processor by the Control Co-Collateral Agent): 

Bank of America, N.A. 
 100 Federal Street, 9th Floor 
 Boston, Massachusetts 02110 

Attention: Stephen Garvin 
 Re: Sears 
 The Processor shall be fully protected in acting on any order or
direction by the Control Co-Collateral Agent respecting the Pharmacy Proceeds and other amounts without making any inquiry whatsoever as to the Control Co-Collateral Agent’s right or authority to give such order or direction or as to the
application of any payment made pursuant thereto. 
 This Notification may be amended only with the written consent of the
Control Co-Collateral Agent and may be terminated solely by written notice signed by an officer of the Control Co-Collateral Agent. 
  

			
	Very truly yours,
	
	KMART CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

	cc:	Bank of America, N.A., as Co-Collateral Agent 

	    	Wells Fargo Retail Finance, LLC, as Co-Collateral Agent 

	    	General Electric Capital Corporation, as Co-Collateral Agent 

  
 2 

  
 EXHIBIT J

 Form of Compliance Certificate 
 COMPLIANCE CERTIFICATE 
 Date of
Certificate:                     
  

	To:	Bank of America, N.A., 

 as
Administrative Agent 
 100 Federal Street, 9th Floor 
 Boston, Massachusetts 02110 
 Attention: Stephen J. Garvin 

Managing Director 
 Ladies and Gentlemen: 
 Reference is made to a certain Amended and Restated Credit
Agreement, dated as of May 21, 2009 (as modified, amended, supplemented or restated and in effect from time to time, the “Credit Agreement”), among Sears Holdings Corporation, a Delaware corporation
(“Holdings”), Sears Roebuck Acceptance Corp., a Delaware corporation and Kmart Corporation, a Michigan corporation (individually, a “Borrower”, and collectively, the “Borrowers”), the banks,
financial institutions and other institutional lenders listed on the signature pages thereof, the Issuing Lenders party thereto, Bank of America, N.A. (the “Bank”), as administrative agent (the “Agent”),
co-collateral agent, and Swingline Lender, Wells Fargo Retail Finance, LLC (“WFRF”) and General Electric Capital Corporation, as co-collateral agents (collectively, with the Bank in such capacity, the “Co-Collateral
Agents”) and as co-syndication agents, JPMorgan Chase Bank, N.A. and Barclays Bank PLC, as co-documentation agents, and Banc of America Securities LLC, WFRF and GE Capital Markets, Inc., as joint lead arrangers and joint bookrunners.
Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

The undersigned, as a duly authorized and acting Authorized Officer of Holdings, hereby certifies on behalf of Holdings and each of the
other Loan Parties as of the date hereof the following: 
  

	1.	No Defaults or Events of Default. 

  

	 	(a)	Since                  (the date of the last similar certification), and except as set
forth in Appendix I, no Default or Event of Default has occurred. 

  

	 	(b)	If a Default or Event of Default has occurred since
                     (the date of the last similar certification), the Loan Parties have taken or propose to take those actions with respect to such
Default or Event of Default as described on said Appendix I. 

  

	2.	 Financial Calculations. Attached hereto as Appendix II are reasonably detailed calculations necessary to determine the Fixed Charge Ratio
as of the last day of the [fiscal quarter][fiscal year] 

  
 1 

	 	 
ended                     (whether or not compliance therewith is then required under
Section 6.03 of the Credit Agreement). 

  

	3.	Financial Statements. 

[Use following paragraph (a) for fiscal quarter-end financial statements] 

 

	 	(a)	Attached hereto as Appendix III are the unaudited consolidated balance sheet of Holdings and its Subsidiaries for the fiscal quarter ended
                    , and the consolidated balance sheet of Holdings and its domestic Subsidiaries (other than OSH) as of the end of such fiscal
quarter, and the consolidated statements of income and cash flows of Holdings and its Subsidiaries and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries (other than OSH) for the period commencing at the
end of the previous fiscal year and ending with the end of such quarter (or if not attached, a copy of the quarterly report filed with the SEC on form 10-Q, reflecting such consolidated balance sheets and consolidated statements of income and cash
flows, has been delivered to the Agent in accordance with Section 9.02(b) of the Credit Agreement). 

[Use following paragraphs (b) and (c) for fiscal year-end financial statements] 

 

	 	(b)	Attached hereto as Appendix III are the audited consolidated balance sheet of Holdings and its Subsidiaries for the fiscal year ended
                    , and the consolidated statements of income and cash flows of Holdings and its Subsidiaries for such fiscal year, accompanied by
a report without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, which report has been prepared by a Board-appointed auditor of national standing (or if not attached, a copy of
the annual report filed with the SEC on form 10-K, reflecting such consolidated balance sheet and consolidated statements of income and cash flows of Holdings and its Subsidiaries, has been delivered to the Agent in accordance with
Section 9.02(b) of the Credit Agreement). 

  

	 	(c)	Attached hereto as Appendix IV are the unaudited consolidated balance sheet of Holdings and its domestic Subsidiaries (other than OSH) for the fiscal year ended
                    , and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries (other than OSH) for such
fiscal year. 

  

	4.	No Material Accounting Changes, Etc. 

  

	 	(a)	The financial statements furnished to the Agent for the [fiscal quarter/fiscal year]
ended                         were prepared in accordance with GAAP. 

 

	 	(b)	Except as set forth in Appendix V, there has been no change in GAAP used in the preparation of the financial statements furnished to the Agent for the [fiscal
quarter/fiscal year] ended                     . If any such change has occurred, a statement of reconciliation conforming such financial statements
to GAAP is attached hereto in Appendix V if necessary for the calculation of the Fixed Charge Ratio. 

  
 2 

  
 IN WITNESS WHEREOF, a
duly authorized and acting Authorized Officer of Holdings, on behalf of Holdings and each of the other Loan Parties, has duly executed this Compliance Certificate as of
                        , 20        . 

 

			
	HOLDINGS:
	
	SEARS HOLDINGS CORPORATION
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 3 

  
 APPENDIX I

 Except as set forth below, no Default or Event of Default has occurred. [If a Default or Event of Default has occurred,
the following describes the nature of the Default or Event of Default in reasonable detail and the steps, if any, being taken or contemplated by the Loan Parties to be taken on account thereof.] 

  
 4 

  
 APPENDIX II

 A.  Calculation of Fixed Charge Ratio: Required whether or not compliance under Section 6.03 of the Credit
Agreement is then required. Calculated for the most recently ended four fiscal quarters. 
  

							
		
	1.	    	Adjusted Consolidated EBITDA for such period (all calculated on a Consolidated basis in accordance with GAAP (excluding any non-cash income already deducted from
Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period)):
				
		    	(a)	    	Consolidated Net Income for such period:	  	 
				
		    		    	Plus the following, without duplication and to extent deducted in determining Consolidated Net Income for such period:	  	
				
		    	(b)	    	Consolidated Interest Expense for such period:	  	 
				
		    	(c)	    	income tax expense for such period:	  	 
				
		    	(d)	    	all amounts attributable to depreciation and amortization expense for such period:	  	 
				
		    	(e)	    	any items of loss resulting from the sale of assets other than in the ordinary course of business for such period:	  	 
				
		    	(f)	    	any non-cash charges for tangible or intangible impairments or asset write downs for such period (excluding any write downs or write-offs of Inventory other than write-downs or
write-offs of Inventory related to up to 100 store closings in any four consecutive fiscal quarters):	  	 
				
		    	(g)	    	any other non-cash charges for such period (including non-cash charges arising from share-based payments to employees or directors, but excluding (1) any non-cash charge already
added back to Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period, (2) any non-cash charge that relates to the write-down or write-off of Inventory other than write-downs or write-offs of Inventory related to
up to 100 store closings in any four consecutive fiscal quarters, and (3) non-cash charges for which a cash payment is required to be made in that or any other period):	  	 
				
		    		    	Minus the following, without duplication and to the extent included in Consolidated Net Income for such period:	  	

  
 5 

							
				
		    	(h)	    	any items of gain resulting from the sale of assets other than in the ordinary course of business for such period:	  	 
				
		    	(i)	    	any cash payments made during such period in respect of non-cash charges described in Line 1(g) above taken in a prior period:	  	 
				
		    	(j)	    	any non-cash items of income for such period:	  	 
				
		    	(k)	    	Adjusted Consolidated EBITDA [Line 1(a), plus the sum of Lines 1(b) through 1(g), minus the sum of Lines 1(h) through 1(j)]:	  	 
			
	2.	    	Minus the following:	  	
				
		    	(a)	    	the unfinanced portion of Capital Expenditures made during such period (but including Capital Expenditures financed with proceeds of Advances):	  	 
				
		    	(b)	    	taxes paid in cash net of refunds during such period:	  	 
			
	3.	    	Line 1(k), minus Lines 2(a) and 2(b):	  	
			
	4.	    	Fixed Charges for such period (all calculated on a Consolidated basis):	  	
				
		    	(a)	    	Consolidated Interest Expense paid or payable in cash:	  	 
				
		    		    	Plus	  	
				
		    	(b)	    	scheduled principal payments on Debt made during such period:	  	 
				
		    		    	Plus	  	
				
		    	(c)	    	Capital Lease Obligation payments made during such period:	  	 
				
		    	(d)	    	Fixed Charges [The sum of Lines 4(a) through 4(c)]:	  	 
			
	5.	    	 FIXED CHARGE RATIO AS OF THE FISCAL [QUARTER]
 [YEAR] ENDED                          [Line 3 divided by Line 4(d)]:
	  	 

 B.  Fixed Charge Ratio
Covenant: During the continuance of a Covenant Compliance Event, each of Holdings and the Borrowers will not permit the Fixed Charge Ratio as of the last day of any fiscal quarter of Holdings to be less than 1.0 to 1.0. 

 

													
	1.	    		  	Is covenant required to be tested?	  	 	Yes                 	  	  	 	No                 	  
	2.	    		  	If covenant is required to be tested, in compliance?	  	 	Yes                 	  	  	 	No                 	  

  
 6 

  
 APPENDIX III

  
 7 

  
 APPENDIX IV

  
 8 

  
 APPENDIX V

  
 9Second Supplemental Indenture

  
 Exhibit 4.1

  
  
 HOLOGIC, INC. 
 ISSUER 

 
  

WILMINGTON TRUST COMPANY 
 TRUSTEE 
  

 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated as of November 23, 2010 

To 
 INDENTURE

 Dated as of December 10, 2007 
  

 
 2.00%
CONVERTIBLE EXCHANGE SENIOR NOTES DUE 2037 
  
  

  
 HOLOGIC, INC.

 Certain Sections of this Indenture relating to Sections 310 through 318 

of the Trust Indenture Act of 1939: 
  

			
	   Trust Indenture  

      Act Section
	  	 Supplemental
Indenture Section

		
	§ 310(a)(1)	  	Not Applicable
	         (a)(2)	  	Not Applicable
	         (a)(3)	  	Not Applicable
	         (a)(4)	  	Not Applicable
	         (b)	  	Not Applicable
		  	Not Applicable
	§ 311(a)	  	Not Applicable
	         (b)	  	Not Applicable
	§ 312(a)	  	9.01
		  	9.02(a)
	         (b)	  	9.02(b)
	         (c)	  	9.02(c)
	§ 313(a)	  	Not Applicable
	         (b)	  	Not Applicable
	         (c)	  	Not Applicable
	         (d)	  	Not Applicable
	§ 314(a)	  	10.06
	         (b)	  	Not Applicable
	         (c)(1)	  	Not Applicable
	         (c)(2)	  	Not Applicable
	         (c)(3)	  	Not Applicable
	         (d)	  	Not Applicable
	         (e)	  	Not Applicable
	§ 315(a)	  	Not Applicable
	         (b)	  	Not Applicable
	         (c)	  	Not Applicable
	         (d)	  	Not Applicable
	         (e)	  	5.15
	§ 316(a)(1)(A)	  	5.06
	         (a)(1)(B)	  	5.04
	         (a)(2)	  	Not Applicable
	         (b)	  	5.03
	         (c)	  	Not Applicable
	§ 317(a)(1)	  	5.07
	         (a)(2)	  	5.08
	         (b)	  	10.05
	§ 318(a)	  	Not Applicable

  

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a part of this Indenture. 

  
 TABLE OF CONTENTS

  

							
	 	 	 	  	PAGE	 
		 	ARTICLE 1	  			
		 	DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION	  			
			
	SECTION 1.01	 	Definitions	  	 	1	  
	SECTION 1.02	 	[Reserved.]	  	 	12	  
	SECTION 1.03	 	[Reserved.]	  	 	12	  
	SECTION 1.04	 	Effect of Headings and Table of Contents	  	 	12	  
	SECTION 1.05	 	[Reserved.]	  	 	12	  
	SECTION 1.06	 	[Reserved.]	  	 	12	  
	SECTION 1.07	 	[Reserved.]	  	 	12	  
	SECTION 1.08	 	Conflict With Trust Indenture Act	  	 	12	  
	SECTION 1.09	 	Successors and Assigns	  	 	12	  
	SECTION 1.10	 	Separability Clause	  	 	13	  
	SECTION 1.11	 	Benefits of Indenture	  	 	13	  
	SECTION 1.12	 	Governing Law	  	 	13	  
	SECTION 1.13	 	Legal Holidays	  	 	13	  
	SECTION 1.14	 	[Reserved.]	  	 	13	  
	SECTION 1.15	 	Relationship with Base Indenture	  	 	13	  
			
		 	ARTICLE 2	  			
		 	NOTE FORMS	  			
			
	SECTION 2.01	 	Form Generally	  	 	14	  
	SECTION 2.02	 	Form of Note	  	 	14	  
	SECTION 2.03	 	Form of Notice of Conversion	  	 	24	  
	SECTION 2.04	 	Form of Assignment	  	 	25	  
			
		 	ARTICLE 3	  			
		 	THE NOTES	  			
			
	SECTION 3.01	 	Title And Terms	  	 	26	  
	SECTION 3.02	 	Regular Interest	  	 	26	  
	SECTION 3.03	 	Contingent Interest	  	 	27	  
	SECTION 3.04	 	Accretion	  	 	27	  
	SECTION 3.05	 	Denominations	  	 	27	  
	SECTION 3.06	 	Execution, Authentication, Delivery and Dating	  	 	27	  
	SECTION 3.07	 	Global Notes; Non-Global Notes; Book-entry Provisions	  	 	28	  
	SECTION 3.08	 	Persons Deemed Owners	  	 	30	  
	SECTION 3.09	 	Mutilated, Destroyed, Lost and Stolen Notes	  	 	30	  
	SECTION 3.10	 	Payment of Interest; Interest Rights Preserved	  	 	31	  
	SECTION 3.11	 	Cancellation	  	 	32	  
	SECTION 3.12	 	Computation of Interest	  	 	32	  

  
 i 

  

							
	 	 	ARTICLE 4	  	 	 
		 	DISCHARGE	  			
			
	SECTION 4.01	 	Discharge of Liability on Notes	  	 	32	  
	SECTION 4.02	 	Reinstatement	  	 	33	  
	SECTION 4.03	 	Officers’ Certificate; Opinion of Counsel	  	 	33	  
			
		 	ARTICLE 5	  			
		 	REMEDIES	  			
			
	SECTION 5.01	 	Events of Default	  	 	33	  
	SECTION 5.02	 	Acceleration of Maturity; Rescission and Annulment	  	 	35	  
	SECTION 5.03	 	Unconditional Right of Holders to Receive Principal and Interest and to Convert	  	 	36	  
	SECTION 5.04	 	Waiver of Past Defaults and Rescission of Acceleration	  	 	36	  
	SECTION 5.05	 	Waiver of Stay, Usury or Extension Laws	  	 	37	  
	SECTION 5.06	 	Control by Holders	  	 	37	  
	SECTION 5.07	 	Collection of Indebtedness and Suits for Enforcement by Trustee	  	 	37	  
	SECTION 5.08	 	Trustee May File Proofs of Claim	  	 	38	  
	SECTION 5.09	 	Trustee May Enforce Claims Without Possession of Notes	  	 	38	  
	SECTION 5.10	 	Application of Money Collected	  	 	39	  
	SECTION 5.11	 	Limitation on Suits	  	 	39	  
	SECTION 5.12	 	Restoration of Rights and Remedies	  	 	40	  
	SECTION 5.13	 	Rights and Remedies Cumulative	  	 	40	  
	SECTION 5.14	 	Delay or Omission Not Waiver	  	 	40	  
	SECTION 5.15	 	Undertaking for Costs	  	 	40	  
			
		 	ARTICLE 6	  			
		 	[RESERVED.]	  			
			
		 	ARTICLE 7	  			
		 	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	  			
			
	SECTION 7.01	 	Company May Consolidate, Etc., Only on Certain Terms	  	 	41	  
	SECTION 7.02	 	Successor Substituted	  	 	41	  
			
		 	ARTICLE 8	  			
		 	SUPPLEMENTAL INDENTURES	  			
			
	SECTION 8.01	 	Supplemental Indentures Without Consent of Holders	  	 	41	  
	SECTION 8.02	 	Supplemental Indentures With Consent of Holders	  	 	42	  
	SECTION 8.03	 	Notice of Supplemental Indentures	  	 	43	  
	SECTION 8.04	 	Effect of Supplemental Indentures	  	 	44	  
	SECTION 8.05	 	Conformity with Trust Indenture Act	  	 	44	  

  
 ii 

  

							
	 	 	ARTICLE 9	  	 	 
		 	HOLDERS LISTS AND BY TRUSTEE AND COMPANY	  			
			
	SECTION 9.01	 	Company to Furnish Trustee Names and Addresses of Holders	  	 	44	  
	SECTION 9.02	 	Preservation of Information	  	 	44	  
			
		 	ARTICLE 10	  			
		 	COVENANTS	  			
			
	SECTION 10.01	 	Payment of Principal and Interest	  	 	45	  
	SECTION 10.02	 	Maintenance of Offices or Agencies	  	 	45	  
	SECTION 10.03	 	Existence	  	 	46	  
	SECTION 10.04	 	Annual Statement by Officers	  	 	46	  
	SECTION 10.05	 	Money for Note Payments to Be Held in Trust	  	 	46	  
	SECTION 10.06	 	Reports by Company	  	 	47	  
	SECTION 10.07	 	[Reserved]	  	 	47	  
	SECTION 10.08	 	Tax Treatment of Notes	  	 	47	  
			
		 	ARTICLE 11	  			
		 	REDEMPTION AND REPURCHASE OF NOTES	  			
			
	SECTION 11.01	 	Right to Redeem; Notice to Trustee	  	 	48	  
	SECTION 11.02	 	Selection of Notes to Be Redeemed	  	 	48	  
	SECTION 11.03	 	Notice of Redemption	  	 	49	  
	SECTION 11.04	 	Effect of Notice of Redemption	  	 	50	  
	SECTION 11.05	 	Deposit of Redemption Price	  	 	50	  
	SECTION 11.06	 	Notes Redeemed in Part	  	 	50	  
	SECTION 11.07	 	No Redemption of Notes Upon Occurrence of Acceleration	  	 	50	  
	SECTION 11.08	 	Repurchase of Notes at the Option of Holders	  	 	51	  
	SECTION 11.09	 	Right to Require Repurchase Upon a Fundamental Change	  	 	55	  
			
		 	ARTICLE 12	  			
		 	CONVERSION OF NOTES	  			
			
	SECTION 12.01	 	Conversion Privilege and Conversion Rate	  	 	59	  
	SECTION 12.02	 	Exercise of Conversion Privilege	  	 	63	  
	SECTION 12.03	 	Fractions of Shares	  	 	66	  
	SECTION 12.04	 	Adjustment of Conversion Rate	  	 	67	  
	SECTION 12.05	 	Notice of Adjustments of Conversion Rate	  	 	76	  
	SECTION 12.06	 	Company to Reserve Common Stock	  	 	76	  
	SECTION 12.07	 	Taxes on Conversions	  	 	76	  
	SECTION 12.08	 	Certain Covenants	  	 	77	  
	SECTION 12.09	 	Cancellation of Converted Notes	  	 	77	  
	SECTION 12.10	 	Provision in Case of Effect of Reclassification, Consolidation, Merger or Sale	  	 	77	  
	SECTION 12.11	 	Company Responsible for Making Calculations	  	 	79	  
	SECTION 12.12	 	Responsibility of Trustee for Conversion Provisions	  	 	79	  

  
 iii

  
 SECOND
SUPPLEMENTAL INDENTURE, dated as of November 23, 2010 (this “Supplemental Indenture,” together with the Base Indenture (as defined below), the “Indenture”), between HOLOGIC, INC., a corporation duly
organized and existing under the laws of the State of Delaware, having its principal office at 35 Crosby Drive, Bedford, Massachusetts 01730 (herein called the “Company”), and WILMINGTON TRUST COMPANY, as Trustee hereunder
(herein called the “Trustee”). 
 RECITALS OF THE COMPANY 

The Company has heretofore executed and delivered to the Trustee an Indenture, dated as of December 10, 2007 (the
“Base Indenture”). 
 The Company desires and has requested the Trustee pursuant to
Section 9.1 of the Base Indenture to join with them in the execution and delivery of this Supplemental Indenture in order to supplement the Base Indenture as and to the extent set forth herein to provide for the issuance and the terms of the
Company’s 2.00% Convertible Exchange Senior Notes due 2037 (herein called the “Notes”). 

Section 9.1 of the Base Indenture provides that a supplemental indenture may be entered into by the Company and the
Trustee without the consent of any Holders to establish the form or terms of Securities (as defined in the Base Indenture) of any series as permitted by Sections 2.1 and 3.1 of the Base Indenture. 

The execution and delivery of this Supplemental Indenture has been duly authorized by a Board Resolution of the Company,
and all things necessary to make the Notes, when the Notes are executed by the Company and authenticated and delivered hereunder, the valid obligations of the Company have been done. Further, all things necessary to duly authorize the issuance of
the Common Stock issuable upon the conversion of the Notes, and to duly reserve for issuance the number of shares of Common Stock (or, at the election of the Company, cash or a combination of cash and shares of Common Stock) issuable upon such
conversion, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: 
 ARTICLE 1 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION 
 SECTION 1.01 Definitions. 

For all purposes of this Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise
requires: 
 (a) capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Trust
Indenture Act or the Base Indenture; 

  
 1 

  
 (b) the terms defined
in this Article 1 have the meanings assigned to them in this Article 1 and include the plural as well as the singular; 
 (c)
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States, and, except as otherwise herein expressly provided, the term “generally
accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of such computation; and 

(d) all other terms used in this Supplemental Indenture, which are defined in the Trust Indenture Act or which are by reference therein
defined in the Securities Act (except as herein otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of
the execution of this Indenture. The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 “Accreted Principal Amount” means the Original Principal Amount as adjusted upward for
accretion as described in Section 3.04; provided that prior to December 15, 2016, references to the Accreted Principal Amount shall mean the Original Principal Amount. 

“Additional Notes” means an unlimited amount of Notes (other than the Initial Notes) issued under this
Indenture in accordance with Section 3.06, as part of the same series as the Initial Notes. 

“Additional Shares” has the meaning specified in Section 12.01(e). 

“Adjustment Determination Date” has the meaning specified in Section 12.04(i). 

“Adjustment Event” has the meaning specified in Section 12.04(i). 

“Agent Member” means any member of, or participant in, the Depositary. 

“American Depositary Receipt” means a negotiable United States security that represents a non-United
States company’s publicly traded equity. 
 “Applicable Procedures” means, with respect to
any transfer or transaction involving a Global Note or beneficial interest therein, the rules and procedures of DTC or any successor Depositary, in each case to the extent applicable to such transaction and as in effect from time to time.

 “Base Indenture” has the meaning ascribed to it in the first paragraph under the caption
“Recitals of the Company.” 
 “Board of Directors” means either the board of directors
of the Company or any duly authorized committee of that board. 

  
 2 

  

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Capital Stock” means, for any entity, any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interests in (however designated) stock issued by that entity. 
 “Certificated Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with this Supplemental Indenture, substantially in the form of
Section 2.02 hereof, except that such Note will not bear the Global Note Legend. 
 “Code”
means the Internal Revenue Code of 1986 as in effect on the date hereof. 
 “Common Stock” means
the Common Stock, par value $0.01 per share, of the Company authorized at the date of this instrument as originally executed or as such stock may be constituted from time to time. Subject to the provisions of Section 12.10, shares issuable upon
conversion of Notes shall include only shares of Common Stock or shares of any class or classes of common stock resulting from any reclassification or reclassifications thereof; provided, however, that if at any time there shall be
more than one such resulting class, the shares so issuable on conversion of Notes shall include shares of all such classes, and the shares of each such class then so issuable shall be substantially in the proportion which the total number of shares
of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
 “common stock” includes any stock of any class of Capital Stock which has no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the issuer thereof and which is not subject to redemption by the issuer thereof. 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Company” shall mean such successor Person. 
 “Consideration
Notice” has the meaning specified in 12.02(b). 
 “Contingent Interest” means interest
that accrues and is payable as provided in Section 3.03. 
 “Contingent Payment Debt
Regulations” has the meaning specified in Section 10.08. 
 “Conversion Agent”
means any Person authorized by the Company to convert Notes in accordance with Article 12. The Company has initially appointed the Trustee as its Conversion Agent pursuant to Section 10.02. 

“Conversion Consideration” has the meaning specified in Section 12.02(c). 

  
 3 

  

“Conversion Date” has the meaning specified in Section 12.02(d). 

“Conversion Obligation” means the obligation of the Company to deliver the consideration due under
Article 12 upon a conversion of the Notes in accordance herewith. 
 “Conversion Price” means at
any given time the amount equal to $1,000 divided by the then current Conversion Rate. 
 “Conversion
Rate” has the meaning specified in Section 12.01(a). 
 “corporation” means a
corporation, company, association, joint-stock company or business trust. 
 “Custodian” means
the Trustee, as custodian with respect to the Notes in global form, or any successor entity thereto. 

“Daily Cash Amount” has the meaning specified in the definition of Daily Settlement Amount. 

“Daily Conversion Value” means, for each of the 30 consecutive VWAP Trading Days during the applicable
Observation Period, one-thirtieth (1/30) of the product of (a) the applicable Conversion Rate and (b) the Daily VWAP of the Common Stock (or the Reference Property pursuant to Section 12.10) on such VWAP Trading Day, as
determined by the Company. Any such determination shall be conclusive absent manifest error. 
 “Daily
Settlement Amount” means, for each of the 30 VWAP Trading Days during the Observation Period, 
 (a) an
amount of cash equal to the lesser of (i) the quotient of the Specified Dollar Amount and 30 and (ii) the Daily Conversion Value relating to such VWAP Trading Day (the “Daily Cash Amount”); and 

(b) if such Daily Conversion Value exceeds the Daily Cash Amount, a number of shares (the “Deliverable
Shares”) of Common Stock equal to (i) the difference between such Daily Conversion Value and the Daily Cash Amount divided by (ii) the Daily VWAP of the Common Stock for such VWAP Trading Day. 

“Daily VWAP” of the Common Stock means, for any VWAP Trading Day, the per share volume-weighted average
price as displayed under the heading “Bloomberg VWAP” on Bloomberg page HOLX.Q <equity> AQR (or any equivalent successor page) in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such VWAP Trading Day, or if
such volume-weighted average price is unavailable, the market value of one share of Common Stock on such VWAP Trading Day using a volume-weighted method as determined by a nationally recognized independent investment banking firm retained for this
purpose by the Company. 
 “Default” means any event which is, or after notice or lapse of time
or both would become, an Event of Default pursuant to Section 5.01. 

  
 4 

  

“Defaulted Interest” has the meaning specified in Section 3.10. 

“Deliverable Shares” has the meaning specified in the definition of Daily Settlement Amount. 

“Delivery Date” has the meaning specified in Section 12.04(l). 

“Depositary” means, with respect to Notes issuable in whole or in part in the form of one or more Global
Notes, a clearing agency registered under the Exchange Act that is designated to act as Depositary for such Notes as contemplated by Section 3.07. 
 “Distributed Property” has the meaning specified in Section 12.04(c). 
 “DTC” means The Depository Trust Company, a New York corporation, or any successor. 
 “Effective Date” means the date on which a Fundamental Change occurs or becomes effective. 
 “Event of Default” has the meaning specified in Section 5.01. 
 “Ex-Date” means, with respect to any distribution on the Common Stock, the first date on which the shares of Common Stock trade on the relevant exchange or in the relevant market, regular
way, without the right to receive the distribution in question. 
 “Exchange Act” means the
Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time. 

“Exchange Election” has the meaning specified in Section 12.02(c). 

“Extension Fee” has the meaning specified in Section 5.02. 

“Extension Right” has the meaning specified in Section 5.02. 

“Financial Institution” has the meaning specified in Section 12.02(c). 

“Fundamental Change” will be deemed to have occurred at the time after the Issue Date that any of the
following occurs: 
 (1) any Person acquires beneficial ownership, directly or indirectly, through a purchase,
merger or other acquisition transaction or series of transactions, of shares of the Company’s Capital Stock entitling the Person to exercise 50% or more of the total voting power of all shares of the Company’s Capital Stock entitled to
vote generally in elections of directors, other than an acquisition by the Company, any of the Company’s Subsidiaries or any of the Company’s employee benefit plans (for purposes of this clause (1), whether a Person is a “beneficial
owner” shall be determined in accordance with Rule 13d-3 under the Exchange Act, and “Person” shall include any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act); or

  
 5 

  
 (2) the
Company (i) merges or consolidates with or into any other Person, another Person merges with or into the Company, or the Company conveys, sells, transfers or leases all or substantially all of the Company’s assets to another Person or
(ii) engages in any recapitalization, reclassification or other transaction in which all or substantially all of the Common Stock is exchanged for or converted into cash, securities or other property, in each case other than a merger or
consolidation: 
 (a) that does not result in a reclassification, conversion, exchange or cancellation of the
Company’s outstanding Common Stock; or 
 (b) which is effected solely to change the Company’s
jurisdiction of incorporation and results in a reclassification, conversion or exchange of outstanding shares of the Common Stock solely into shares of common stock of the surviving entity; 

(3) the Company is liquidated or dissolved or holders of Common Stock approve any plan or proposal for the Company’s
liquidation or dissolution; or 
 (4) if shares of the Common Stock, or shares of any other Capital Stock or
American Depository Receipts in respect of shares of Capital Stock into which the Notes are convertible pursuant to the terms of this Supplemental Indenture, are not listed for trading on any of the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market (or any of their respective successors). 

“Fundamental Change Repurchase Date” has the meaning specified in Section 11.09(a). 

“Fundamental Change Repurchase Notice” has the meaning specified in Section 11.09(a)(i). 

“Fundamental Change Repurchase Price” has the meaning specified in Section 11.09(a). 

“Fundamental Change Repurchase Right Notice” has the meaning specified in Section 11.09(b).

 “Global Note” means a Note bearing the Global Note Legend that is registered in the
Securities Register in the name of a Depositary or a nominee thereof. 
 “Global Note Legend”
means the legend set forth in Section 2.02, which is required to be placed on all Global Notes issued under this Supplemental Indenture. 
 “Holder” means the Person in whose name the Note is registered in the Securities Register. 
 “Indenture” has the meaning specified in the first paragraph of this instrument. 

  
 6 

  

“Initial Notes” means the first $450,000,000 aggregate Original Principal Amount of the Notes issued
under this Supplemental Indenture on the date hereof. The Initial Notes and the Additional Notes shall be treated as a single class for all purposes under this Supplemental Indenture, and unless the context otherwise requires, all references to the
Notes shall include the Initial Notes and any Additional Notes. 
 “Interest” means Regular
Interest and Contingent Interest, if any. 
 “Interest Payment Date” means June 15 and
December 15 of each year, beginning on December 15, 2010 and ending on December 15, 2016. 

“Interest Period” has the meaning specified in Section 3.02. 

“Issue Date” means November 23, 2010. 

“Last Reported Sale Price” means, with respect to the Common Stock, on any date, the closing sale price
per share (or if no closing sale price is reported, the average of the last bid and ask prices or, if more than one in either case, the average of the average last bid and the average last ask prices) on such date as reported in composite
transactions for the principal United States national or regional securities exchange on which the Common Stock is traded, as determined by the Company. If the Common Stock is not listed for trading on a United States national or regional securities
exchange on the relevant date, the “Last Reported Sale Price” shall be the average of the last quoted bid and ask prices per share of Common Stock in the over-the-counter market on the relevant date, as reported by the National Quotation
Bureau or similar organization. If the Common Stock is not so quoted, the Last Reported Sale Price shall be the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from each of at least three nationally
recognized independent investment banking firms selected by the Company for that purpose. Any such determination shall be conclusive absent manifest error. The Last Reported Sale Price shall be determined without reference to extended or after hours
trading. 
 “Make-Whole Fundamental Change” means any transaction or event that occurs prior to
December 15, 2016 and that constitutes a Fundamental Change pursuant to clauses (1), (2) or (3) under the definition of Fundamental Change. 
 “Make-Whole Reference Date” means with respect to any Make-Whole Fundamental Change, the date on which such Make-Whole Fundamental Change occurs or becomes effective; provided that
for the purpose of determining the number of Additional Shares pursuant to Section 12.01(e), the “Make-Whole Reference Date” with respect to any Make-Whole Fundamental Change that constitutes a Fundamental Change pursuant to clauses
(1) or (2) under the definition of Fundamental Change shall be deemed to be the earlier of (i) the date on which such Make-Whole Fundamental Change occurs or becomes effective or (ii) the date of the first public announcement of
such Make-Whole Fundamental Change by the Company or any counterparty to such Make-Whole Fundamental Change. 

“Market Disruption Event” means the occurrence or existence on any Scheduled Trading Day for the Common
Stock of any suspension or limitation imposed on trading (by 

  
 7 

 
reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options contracts or futures contracts relating to the Common Stock, and
such suspension or limitation occurs or exists at any time within the 30 minutes prior to the closing time of the relevant exchange on such day. 
 “Maturity,” when used with respect to any Notes, means the date on which the principal of such Notes becomes due and payable as therein or herein provided, whether on the Maturity Date or
by declaration of acceleration, exercise of the repurchase right set forth in Article 11 or otherwise. 

“Maturity Date” means, with respect to the Notes, December 15, 2037. 

“Measurement Period” (i) for purposes of determining whether the Company is required to pay
Contingent Interest, has the meaning specified in Section 3.03(a) and (ii) for purposes of determining whether the Trading Price Condition has been met, the meaning specified in Section 12.01(a)(i). 

“Merger Event” has the meaning specified in Section 12.10. 

“Net Share Settlement Election” has the meaning specified in Section 12.02(b). 

“Notes” has the meaning ascribed to it in the first paragraph under the caption “Recitals of the
Company.” Unless the context otherwise requires, all references to the Notes shall include the Initial Notes and any Additional Notes. 
 “Notice of Conversion” has the meaning specified in Section 12.02(d). 
 “Observation Period” means, with respect to any Notes, 
 (a) with respect to any Conversion Date occurring on or after the
35th Scheduled Trading Day prior to the Maturity Date of
the Notes, the 30 consecutive VWAP Trading Day period beginning on, and including, the 32nd Scheduled Trading Day prior to the Maturity Date (or if such day is not a VWAP Trading Day, the next succeeding VWAP Trading Day); and 

(b) in all other instances, the 30 consecutive VWAP Trading Day period beginning on and including the third VWAP Trading
Day after the related Conversion Date in respect of such Notes. 
 “Opinion of Counsel” means a
written opinion of counsel, who may be an employee of or counsel to the Company, and who shall be reasonably acceptable to the Trustee. 
 “Optional Put Repurchase Offer” has the meaning specified in Section 11.08(a)(ii). 
 “Optional Put Repurchase Date” has the meaning specified in Section 11.08(a)(i). 
 “Optional Put Repurchase Notice” has the meaning specified in Section 11.08(a)(ii). 
 “Optional Put Repurchase Price” has the meaning specified in Section 11.08(a)(i). 

  
 8 

  

“Original Principal Amount” means (a) with respect to the Initial Notes, the principal amount of the
Initial Notes as of the Issue Date and (b) with respect to Additional Notes, if any, the principal amount of such Additional Notes on their date of issuance. 

“Outstanding,” when used with respect to the Notes, means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Supplemental Indenture, except: 
 (i) Notes theretofore
canceled by the Trustee or delivered to the Trustee for cancellation; 
 (ii) Notes for the payment of which
money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the
Holders of such Notes in accordance with the terms of this Supplemental Indenture; 
 (iii) Notes which have been
paid pursuant to Section 3.09 or in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Supplemental Indenture; 

(iv) Notes converted into Common Stock pursuant to Article 12; and 

(v) Notes redeemed or repurchased pursuant to Article 11; 

provided, however, that, in determining whether the Holders of the requisite principal amount of Outstanding Notes are
present at a meeting of Holders for quorum purposes or have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any other obligor upon the Notes or any Affiliate of the Company or
such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such determination as to the presence of a quorum or upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes which a Responsible Officer of the Trustee has been notified in writing to be so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee is not the Company or any other obligor upon the Notes or any Affiliate of the Company or such other obligor, and the Trustee shall be protected in relying upon an Officers’ Certificate to such effect. 

“Paying Agent” means any Person authorized by the Company to pay the principal of or Interest on any
Notes on behalf of the Company and, except as otherwise specifically set forth herein, such term shall include the Company if it shall act as its own Paying Agent. The Company has initially appointed the Trustee as its Paying Agent pursuant to
Section 10.02. 
 “Person” means any individual, corporation, limited liability company,
partnership, joint venture, trust, estate, unincorporated organization or government or any agency or political subdivision thereof and any syndicate or group that would be deemed a “person” under Section 13(d)(3) of the Exchange Act.

  
 9 

  

“Place of Payment” has the meaning specified in Section 3.01(e). 

“Predecessor Note” of any particular Note means every previous Note evidencing all or a portion of the
same debt as that evidenced by such particular Note; and, for the purposes of this definition, any Note authenticated and delivered under Section 3.09 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Note shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Note. 
 “Press Release”
means any press release issued by the Company and disseminated to a reputable national newswire service. 

“Record Date” means any Regular Record Date or Special Record Date. 

“Redemption Date” when used with respect to any Note to be redeemed, means the date fixed for such
redemption pursuant to this Indenture. 
 “Redemption Price” has the meaning specified in
Section 11.01. 
 “Reference Property” has the meaning specified in Section 12.10.

 “Registrar” means the Trustee, for the purpose of registering Notes and transfers of Notes.

 “Regular Interest” has the meaning specified in Section 3.02. 

“Regular Record Date” for Interest payable in respect of any Note on any Interest Payment Date means 5:00
p.m. New York time on June 1 or December 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. 
 “Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the principal United States national or regional securities exchange or market on which the Common Stock is
listed or admitted for trading or, if the Common Stock is not listed or admitted for trading on any exchange or market, a Business Day. 
 “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each case as amended from time to time. 

“Significant Subsidiary” means, with respect to any Person, a Subsidiary of such Person that would
constitute a “significant subsidiary” as such term is defined under Rule 1-02 of Regulation S-X under the Securities Act and the Exchange Act. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.10. 

“Specified Dollar Amount” means a dollar amount of cash to be delivered per $1,000 Original Principal
Amount of Notes specified in a notice pursuant to Section 12.02. 
 “Spin-Off” has the
meaning specified in Section 12.04(c). 

  
 10 

  

“Stock Price” means the price per share of Common Stock at the time of a Make-Whole Fundamental Change
pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in Section 12.01(e), which shall be equal to (i) if holders of Common Stock receive only cash consideration for their shares of Common Stock in
connection with a Make-Whole Fundamental Change, the cash amount paid per share of Common Stock and (ii) in all other cases, the average of the Daily VWAP of the Common Stock over the 10 VWAP Trading Day period ending on the Trading Day
preceding the effective date of such Make-Whole Fundamental Change. 
 “Supplemental Indenture”
has the meaning specified in the first paragraph of this instrument. 
 “Trading Day” means a
day during which (i) trading in the Common Stock generally occurs and (ii) there is no Market Disruption Event. 
 “Trading Price” with respect to any Notes, on any date of determination, means the average of the secondary market bid quotations obtained by the Trustee for $2.0 million in Original
Principal Amount of such Notes at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers selected by the Company; provided that if three such bids cannot
reasonably be provided (in the reasonable judgment of the Company) to the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and if only one such bid is obtained, that one bid shall be used. If at least one bid
for $2.0 million in Original Principal Amount of the Notes cannot reasonably be obtained, then the trading price per $1,000 in principal amount of Notes shall be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common
Stock and the applicable Conversion Rate. Any such determination shall be conclusive absent manifest error. Notwithstanding the foregoing, for purposes of Section 3.03 only, if two bids for $2.0 million in Original Principal Amount of the Notes
cannot reasonably be provided (in the reasonable judgment of the Company) to the Trustee, from nationally recognized securities dealers selected by the Company, but one such bid can reasonably be obtained (in the reasonable judgment of the Company)
by the Trustee, this one bid shall be used. If at least one bid for $2.0 million in Original Principal Amount of the Notes cannot reasonably be provided (in the reasonable judgment of the Company) to the Trustee, from a nationally recognized
securities dealer or in the Company’s reasonable judgment the bid quotations are not indicative of the secondary market value of the Notes, then the Trading Price of the Notes will be deemed to equal the product of (x) the Conversion Rate
then in effect and (y) the average closing sales price of Common Stock over the five Trading Day period ending on such determination date. 
 “Trading Price Condition” has the meaning specified in Section 12.01(a)(i). 
 “Trigger Event” has the meaning specified in Section 12.04(c). 
 “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which this instrument was executed; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 

  
 11 

  

“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. 

“VWAP Market Disruption Event” means (i) a failure by the principal U.S. national or regional
securities exchange or market on which the Common Stock is listed or admitted to trading to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading
Day for the Common Stock for an aggregate one half-hour period of any suspension or limitation imposed on trading, by reason of movements in price exceeding limits imposed by the stock exchange or otherwise, in the Common Stock or in any options
contracts or futures contracts relating to the Common Stock. 
 “VWAP Trading Day” means a day
during which (i) trading in the Common Stock generally occurs during the regular trading session on the principal U.S. national or regional securities exchange or market on which the Common Stock is listed or admitted for trading and
(ii) there is no VWAP Market Disruption Event. If the Common Stock is not so listed or traded, then VWAP Trading Day means a Business Day. 
 SECTION 1.02 [Reserved.] 
 SECTION 1.03
[Reserved.] 
 SECTION 1.04 Effect of Headings and Table of Contents. 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof. 
 SECTION 1.05 [Reserved.] 

SECTION 1.06 [Reserved.]. 
 SECTION 1.07 [Reserved.] 
 SECTION 1.08 Conflict
With Trust Indenture Act. 
 If any provision hereof limits, qualifies or conflicts with a provision of the
Trust Indenture Act that is made applicable to this Supplemental Indenture, the latter provision shall control. If any provision of this Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act that is made applicable to
this Supplemental Indenture, the latter provision shall be deemed to apply to this Supplemental Indenture as so modified or to be excluded, as the case may be. 
 SECTION 1.09 Successors and Assigns. 
 All
covenants and agreements in this Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

  
 12 

  

SECTION 1.10 Separability Clause. 

In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

SECTION 1.11 Benefits of Indenture. 

Nothing in this Supplemental Indenture or in the Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Supplemental Indenture. 
 SECTION 1.12 Governing Law. 
 This Supplemental
Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York. 

SECTION 1.13 Legal Holidays. 
 In any case where any Interest Payment Date, Redemption Date, Optional Put Repurchase Date, Fundamental Change Repurchase Date or the Maturity Date of any Note or the last date on which a Holder has the
right to convert his Notes shall not be a Business Day, then (notwithstanding any other provision of this Supplemental Indenture or of the Notes) payment of Interest or principal or conversion of the Notes need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date, Redemption Date, Optional Put Repurchase Date or Fundamental Change Repurchase Date, or at the Maturity Date, or on such last day for
conversion, provided that no Interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Optional Put Repurchase Date, Fundamental Change Repurchase Date or the Maturity Date, as the case may be.
Notwithstanding the foregoing, the right to convert a Note shall cease at the close of business on the third Scheduled Trading Day immediately preceding the Maturity Date. 
 SECTION 1.14 [Reserved.] 
 SECTION 1.15
Relationship with Base Indenture. 
 The terms and provisions contained in the Base Indenture shall
constitute, and are hereby expressly made, a part of this Supplemental Indenture and the Company and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of the Base Indenture conflicts with the express provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall govern and be controlling. 

The Trustee accepts the amendment of the Base Indenture effected by this Supplemental Indenture and agrees to execute the
trust created by the Base Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee in the performance
of the 

  
 13 

 
trust created by the Base Indenture, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the recitals
or statements contained herein, all of which recitals or statements are made solely by the Company, or for or with respect to (1) the validity or sufficiency of this Supplemental Indenture or any of the terms or provisions hereof, (2) the
proper authorization hereof by the Company, (3) the due execution hereof by the Company or (4) the consequences (direct or indirect and whether deliberate or inadvertent) of any amendment herein provided for, and the Trustee makes no
representation with respect to any such matters. 
 ARTICLE 2 

NOTE FORMS 
 SECTION 2.01 Form Generally. 
 The Notes shall
be in substantially the form set forth in this Article 2, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Supplemental Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange, the Code, and regulations thereunder, or as may, consistent herewith, be determined by the officers executing
such Notes, as evidenced by their execution thereof. The Company shall furnish any such legends and endorsements to the Trustee in writing. All Notes shall be in fully registered form. 

Notices of Conversion shall be in substantially the form set forth in Section 2.03. 

The Notes shall be printed, lithographed, typewritten or engraved or produced by any combination of these methods or may
be produced in any other manner permitted by the rules of any automated quotation system or securities exchange (including on steel engraved borders if so required by any securities exchange upon which the Notes may be listed) on which the Notes may
be listed for trading, as the case may be, all as determined by the officers executing such Notes, as evidenced by their execution thereof. 
 SECTION 2.02 Form of Note. 
 [FORM OF FACE OF NOTE]

 The following legend shall appear on the face of each Global Note: 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE SUPPLEMENTAL INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES. 

  
 14 

  

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE SUPPLEMENTAL INDENTURE, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

  
 15 

  
 HOLOGIC, INC.

 2.00% Convertible Exchange Senior Notes due 2037 
 No.                           

CUSIP No. 436440 AB7 
 HOLOGIC, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company,” which term includes any successor Person under the
Supplemental Indenture referred to on the reverse hereof), for value received, hereby promises to pay to                     , or registered
assigns, the principal sum of                      United States Dollars (U.S.
$            ) [if this Note is a Global Note, then insert — (which principal amount may from time to time be decreased to such other principal amounts by adjustments
made on the records of the Registrar hereinafter referred to in accordance with the Supplemental Indenture)] on December 15, 2037 (the “Maturity Date”), and to pay interest thereon, from
                    , or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on June 15 and December 15 in each year (each, an “Interest Payment Date”), commencing
                     at the rate of 2.00% per annum. The Notes will cease to bear interest (except Contingent Interest, as applicable) on
December 15, 2016, and instead from such date the principal amount of the Notes will accrete at a rate that provides Holders with an aggregate annual yield to maturity of 2.00% per year (computed on a semi-annual bond-equivalent basis).
The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest, which shall be the June 1 or December 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Except as otherwise provided in the Supplemental
Indenture, any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee pursuant to Section 3.10 of the Supplemental Indenture, notice whereof shall be given to Holders not less than 10
calendar days prior to the Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any automated quotation system or securities exchange on which the Notes may then be listed for trading, and
upon such notice as may be required by such exchange, all as more fully provided in the Supplemental Indenture. Payments of principal shall be made upon the surrender of this Note by the Holder thereof at the Corporate Trust Office of the Trustee,
or at such other office or agency of the Company as may be designated by it for such purpose in such lawful monies of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, or at
such other offices or agencies as the Company may designate. All amounts due in cash with respect to the Notes shall be paid (A) in the case this Note is in global form, by wire transfer of immediately available funds to the account designated
by the Depositary or its nominee; (B) in the case this Note is held, other than in global form, by a Holder in an aggregate principal amount of $5.0 million or less, by check mailed to such Holders; and (C) in the case this Note is held,
other than in global form, by a Holder in an aggregate principal amount of more than $5.0 million, either by check mailed to 

  
 16 

 
such Holder or, upon application by such Holder to the Registrar not later than the relevant record date (in the case of an installment of interest due on an Interest Payment Date) or 15 calendar
days prior to such other date on which such amounts are due, by wire transfer in immediately available funds to such Holder’s account within the United States, which application shall remain in effect until the Holder notifies, in writing, the
Registrar to the contrary. 
 The Notes were issued with original issue discount for United States federal income
tax purposes. The Company agrees, and by acceptance of a beneficial ownership interest in the Notes each Holder is deemed to have agreed, for United States federal income tax purposes, (a) to treat the Notes as indebtedness subject to United
States Treasury Regulations Section 1.1275-4 (the “Contingent Payment Debt Regulations”) and, for purposes of the Contingent Payment Debt Regulations, to treat cash and the fair market value of any Common Stock beneficially
received by a Holder upon conversion of such Note as a contingent payment under Treasury Regulation Section 1.1275-4(b); (b) to be bound by the Company’s application of the Contingent Payment Debt Regulations to the Notes, including
the Company’s determination of the comparable yield and projected payment schedule, as defined in the Contingent Payment Debt Regulations, with respect to the Notes; and (c) to use such comparable yield and projected payment schedule in
determining interest accruals with respect to such Holder’s Notes and in determining adjustments thereto. A Holder may obtain the issue price, Issue Date, comparable yield (which will be treated as the yield to maturity for United States
federal income tax purposes) and projected payment schedule by submitting a written request to the Company at the following address: Hologic, Inc., 35 Crosby Drive, Bedford, Massachusetts 01730, Attention: Investor Relations. 

Except as specifically provided herein and in the Supplemental Indenture, the Company shall not be required to make any
payment with respect to any tax, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein. 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof or an Authenticating Agent by the manual signature of one of their respective authorized signatories, this Note shall not be entitled to any benefit under the
Supplemental Indenture or be valid or obligatory for any purpose. 
 [Remainder of page intentionally left blank]

  
 17 

  
 IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed. 
  

					
	HOLOGIC, INC.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

					
	 Attest:

		
	 By:
	  	  

		  	Name:	 	
		  	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes referred to in the within-mentioned Supplemental Indenture. 

 

			
	 Dated:
	 	  

 

			
	 WILMINGTON TRUST COMPANY,

as Trustee

		
	 By:
	  	  

		  	Authorized Signatory

  
 18 

  
 [FORM OF REVERSE OF
NOTE] 
 HOLOGIC, INC. 
 2.00% Convertible Exchange Senior Notes due 2037 
 This Note is
one of a duly authorized issue of Notes of the Company designated as its “2.00% Convertible Exchange Senior Notes due 2037” (herein called the “Notes”) issued and to be issued under the Indenture (the “Base
Indenture”), dated as of December 10, 2007, between the Company and Wilmington Trust Company, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture (as defined below)),
as supplemented and modified by the Second Supplemental Indenture (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), dated as of November 23, 2010, between the Company and
the Trustee, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. As provided in the Supplemental Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate Accreted
Principal Amount of Notes of any authorized denominations as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged, at the Corporate Trust Office of the Trustee. The Trustee upon such surrender by the
Holder hereof and the satisfaction of any requirements therefor set forth in the Supplemental Indenture shall issue the new Notes in the requested denominations. Additional Notes may be issued in an unlimited aggregate principal amount, subject to
certain conditions specified in the Supplemental Indenture. 
 No sinking fund is provided for in the Notes.

 In any case where any Interest Payment Date, Redemption Date, Optional Put Repurchase Date, Fundamental Change
Repurchase Date or the Maturity Date of any Note or the last date on which a Holder has the right to convert his Notes shall not be a Business Day, then (notwithstanding any other provision of the Supplemental Indenture or of the Notes) payment of
Interest or Accreted Principal Amount or conversion of the Notes need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date, Redemption Date, Optional Put
Repurchase Date or Fundamental Change Repurchase Date, or at the Maturity Date, or on such last day for conversion, provided that no Interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Optional Put
Repurchase Date, Fundamental Change Repurchase Date or the Maturity Date, as the case may be. 
 The Supplemental
Indenture contains provisions permitting the Company and the Trustee in certain circumstances, without the consent of the Holders of the Notes, and in other circumstances, with the consent of the Holders of not less than a majority in aggregate
Accreted Principal Amount of the Notes at the time outstanding, evidenced as in the Supplemental Indenture provided, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the
Supplemental Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Notes; 

  
 19 

 
provided, however, that no such supplemental indenture shall make any of the changes set forth in Section 8.02 of the Supplemental Indenture, without the consent of each Holder
of an outstanding Note affected thereby. It is also provided in the Supplemental Indenture that, prior to any declaration accelerating the maturity of the Notes, the Holders of a majority in Accreted Principal Amount of the Notes at the time
outstanding may on behalf of the Holders of all of the Notes waive any past Default or Event of Default under the Supplemental Indenture and its consequences except as provided in the Supplemental Indenture. Any such consent or waiver by the Holder
of this Note (unless revoked as provided in the Supplemental Indenture) shall be conclusive and binding upon such Holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution hereof,
irrespective of whether or not any notation thereof is made upon this Note or such other Notes. 
 No reference
herein to the Supplemental Indenture and no provision of this Note or of the Supplemental Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Accreted Principal Amount of, and accrued and
unpaid Interest on, this Note, at the place, at the respective times, at the rate and in the lawful money herein prescribed. 
 Subject to the provisions of the Supplemental Indenture, upon the occurrence of a Fundamental Change or on an Optional Put Repurchase Date, the Holder has the right, at such Holder’s option, to
require the Company to repurchase all of such Holder’s Notes or any portion thereof (in Original Principal Amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase Date or Optional Put Repurchase Date, as
applicable, at a price equal to 100% of the Accreted Principal Amount of the Notes such Holder elects to require the Company to repurchase, together with accrued and unpaid Interest to, but excluding, the Fundamental Change Repurchase Date or
Optional Put Repurchase Date, as applicable, unless such Fundamental Change Repurchase Date or Optional Put Repurchase Date, as applicable, falls after a Regular Record Date and on or prior to the corresponding Interest Payment Date, in which case
the Company shall pay the full amount of accrued and unpaid Interest payable on such Interest Payment Date to the Holder of record at the close of business on the corresponding Regular Record Date. No later than 20 Business Days prior to each
Optional Put Repurchase Date, the Company shall give notice to each Holder (and to beneficial owners as required by applicable law) of their related repurchase right. The Company or, at the written request of the Company, the Trustee shall mail to
all Holders of record of the Notes a notice of the occurrence of a Fundamental Change and of the repurchase right arising as a result thereof after the occurrence of any Fundamental Change, but on or before the 10th calendar day following such
occurrence. 
 The Holder hereof has the right, at its option, (i) upon the occurrence of certain conditions
specified in the Supplemental Indenture, at any time prior to the close of business on the Scheduled Trading Day immediately preceding September 15, 2037, or (ii) on or after September 15, 2037, at any time prior to the close of
business on the second Scheduled Trading Day immediately preceding the Maturity Date, to convert any Notes or portion thereof which is $1,000 in Original Principal Amount or an integral multiple thereof, into shares of Common Stock (or cash or
combination of cash and shares of Common Stock, at the election of the Company, as set forth in Section 12.02 of the Supplemental Indenture) or Reference Property, in 

  
 20 

 
each case at the Conversion Rate specified in the Supplemental Indenture, as adjusted from time to time as provided in the Supplemental Indenture, upon satisfaction of certain requirements set
forth in the Supplemental Indenture, including, if applicable, the surrender of this Note, together with a Notice of Conversion, a form of which is contained under Section 2.03 of the Supplemental Indenture, as provided in the Supplemental
Indenture and this Note, to the Company at the office or agency of the Company maintained for that purpose, or at the option of such Holder, the Corporate Trust Office, and, unless the shares of Common Stock or Reference Property, as the case may
be, issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the Company duly executed by, the Holder or by his duly authorized attorney. The initial
Conversion Rate shall be 43.4216 shares of Common Stock for each $1,000 in Original Principal Amount of Notes. No fractional shares of Common Stock or Reference Property, as the case may be, shall be issued upon any conversion, but an adjustment in
cash shall be paid to the Holder, as provided in the Supplemental Indenture, in respect of any fraction of such share which would otherwise be issuable upon the surrender of any Note or Notes for conversion. No adjustment shall be made for dividends
or any such shares issued upon conversion of such Notes except as provided in the Supplemental Indenture. 
 Upon
due presentment for registration of transfer of this Note at the office or agency of the Company, a new Note or Notes of authorized denominations for an equal aggregate Accreted Principal Amount shall be issued to the transferee in exchange thereof,
subject to the limitations provided in the Supplemental Indenture, without charge except for any tax, assessments or other governmental charge imposed in connection therewith. 

The Company, the Trustee, any Authenticating Agent, any Paying Agent, any Conversion Agent and any Registrar may deem and
treat the registered Holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment hereof, or on account
hereof, for the conversion hereof and for all other purposes, and neither the Company nor the Trustee nor any other authenticating agent nor any Paying Agent nor any other Conversion Agent nor any Registrar shall be affected by any notice to the
contrary. All payments made to or upon the order of such registered Holder shall, to the extent of the sum or sums paid, satisfy and discharge liability for monies payable on this Note. 

No recourse for the payment of the Accreted Principal Amount of, or accrued and unpaid Interest on, this Note, or for any
claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Supplemental Indenture or any indenture supplemental thereto or in any Note, or because of the creation of
any Indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through
the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released. 

  
 21 

  
 Terms
used in this Note and defined in the Supplemental Indenture are used herein as therein defined. 
 In the case of
any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. 
 The Indenture and this Note shall be governed by and construed in accordance with the laws of the State of New York. 

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TENANT
(=tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform gift to Minors Act). 

  
 22 

  
 FORM OF OPTIONAL PUT
REPURCHASE NOTICE AND FUNDAMENTAL 
 CHANGE REPURCHASE NOTICE 

To: Hologic, Inc. 
 The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Hologic, Inc. (the “Company”) as to the occurrence of (check the appropriate box): 

 

			
	 ̈      a Fundamental Change with respect to the Company;
	
	 ̈      an Optional Put Repurchase Date;

and hereby directs the Company to pay, or cause the Trustee to pay, it or
                     an amount in cash equal to 100% of the Accreted Principal Amount, or the portion thereof (which is $1,000 in Original
Principal Amount or an integral multiple thereof) below designated, to be repurchased plus interest accrued to, but excluding, the Optional Put Repurchase Date or the Fundamental Change Repurchase Date, as applicable, except as provided in the
Supplemental Indenture. 
  

			
	 Dated:

	  

	
	  

	  
 Signature(s)

 
 Signature(s) must be guaranteed by an Eligible Guarantor
Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.

	
	  

	 Signature Guaranteed

	
	 Certificate number(s), if applicable, of Note(s) tendered for repurchase:
                    

	
	 Principal amount to be repurchased (at least U.S. $1,000 Original Principal Amount or an integral multiple of $1,000 in excess thereof):
                    

	
	 Remaining principal amount following such repurchase (not less than U.S. $1,000 Original Principal Amount):

		
	 By:
	 	  

		 	Authorized Signatory

  
 23 

  

SECTION 2.03 Form of Notice of Conversion. 
 NOTICE OF CONVERSION 
 The undersigned Holder of this Note hereby
irrevocably exercises the option to convert this Note, or any portion of the Accreted Principal Amount hereof (which is U.S. $1,000 Original Principal Amount or an integral multiple of U.S. $1,000 in excess thereof, provided that the
unconverted portion of such Original Principal Amount is U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof) below designated, into shares of Common Stock or Reference Property in accordance with the terms of the Supplemental
Indenture referred to in this Note, and directs that the consideration due upon such conversion (including a check in payment for any fractional share and any Notes representing any unconverted principal amount hereof), be delivered to and be
registered in the name of the undersigned unless a different name has been indicated below. If shares of Common Stock, Reference Property or Notes are to be registered in the name of a Person other than the undersigned, (a) the undersigned
shall pay all transfer taxes payable with respect thereto and (b) signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities
Exchange Act of 1934. Any amount required to be paid by the undersigned on account of interest accompanies this Note. 
  

											
		 	 Dated:
	 	  
	 		  	  

		 		 		 		  	Signature(s)	  	

  

			
		 	If shares or Notes are to be registered in the name of a Person other than the Holder, please print such Person’s name and address:
		
		 	  

		 	(Name)
		
		 	  

		 	  

		 	(Address)
		
		 	  

		 	Social Security or other Identification Number, if any
		
		 	  

		 	[Signature Guaranteed]

 If
only a portion of the Notes is to be converted, please indicate: 
  

	 	1.	Accreted Principal Amount to be converted: U.S. $
                     

  
 24 

  

	 	2.	Accreted Principal Amount and denomination of Notes representing unconverted Accreted Principal Amount to be issued:
                     

 Amount: U.S. $                     Denominations: U.S.
$                     

(U.S. $1,000 Original Principal Amount or any integral multiple of U.S. $1,000 in excess thereof, provided that the unconverted
portion of such principal amount is U.S. $1,000 Original Principal Amount or any integral multiple of U.S. $1,000 in excess thereof). 
 SECTION 2.04 Form of Assignment. 
 ASSIGNMENT 

For value received,
                     hereby sell(s), assign(s) and transfer(s) unto
                     (Please insert Social Security or other identifying number of assignee) the within note, and hereby irrevocably
constitutes and appoints                      as attorney to transfer the said note on the books of the Company, with full power of
substitution in the premises. 
  

															
		 	Dated:	 	  
	 		 		 	Signature(s)	 	  

Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 
  

	
	  

	 Signature Guaranteed

  
 25 

  
 ARTICLE 3 

THE NOTES 
 SECTION 3.01 Title And Terms. 
 (a) The Notes shall be known and
designated as the “2.00% Convertible Exchange Senior Notes due 2037” of the Company. Their Maturity Date shall be December 15, 2037 and they shall bear Regular Interest on the Original Principal Amount in accordance with
Section 3.02. 
 (b) Commencing on or after December 15, 2016, Contingent Interest shall be paid, if applicable, in
accordance with Section 3.03. 
 (c) Commencing on December 15, 2016, the Accreted Principal Amount shall increase in
accordance with Section 3.04. 
 (d) The Company shall pay Interest on overdue Accreted Principal Amount at the rate borne
by the Notes, and it shall pay Interest on overdue installments of Interest at the same rate, in each case to the extent lawful. 
 (e) The Notes shall be subject to repurchase by the Company at the option of the Holders as provided in Section 11.08 and Section 11.09 hereof. 

(f) The Accreted Principal Amount of and Interest on the Notes shall be payable as provided in the form of Notes set forth in
Section 2.02. The Optional Put Repurchase Price or the Fundamental Change Repurchase Price, as applicable, shall be payable at such place as is identified in the Optional Put Repurchase Notice or the Fundamental Change Repurchase Right Notice,
as applicable, given pursuant to Section 11.08 and Section 11.09, respectively (such city in which the identified Paying Agent is located being herein called a “Place of Payment”). 

(g) The Notes shall be senior unsecured obligations of the Company and shall rank pari passu with all of the Company’s other
senior unsecured obligations. 
 (h) The Notes may be redeemed at the option of the Company prior to Maturity pursuant to
Section 11.01 hereof. 
 (i) The Notes shall be convertible as provided in Article 12. 

(j) Article 14 of the Base Indenture shall not be applicable to the Notes. 

SECTION 3.02 Regular Interest. 

Subject to the last paragraph of Section 3.10, Regular Interest will accrue on the Notes at the
rate of 2.00% per year (“Regular Interest”) during any six-month period from and including December 15th to and including June 14th or from and including June 15th to and including December 14th (each, an “Interest Period”), commencing December 15, 2010; provided that the initial
Interest Period shall commence on November 23, 2010 and run to and including December 14, 2010. Regular Interest will be payable semi-annually in arrears on each Interest 

  
 26 

 
Payment Date (subject to Section 1.13) to the Holder of record at the close of business on the Regular Record Date preceding such Interest Payment Date; provided that the Notes will
cease to accrue Regular Interest as of December 15, 2016. 
 SECTION 3.03 Contingent Interest.

 (a) The Company will pay Contingent Interest in cash to Holders during any Interest Period beginning with the six-month
Interest Period commencing December 15, 2016, during any Interest Period if the Trading Price of the Notes for each of the five Trading Days ending on the second Trading Day immediately preceding the first day of the applicable Interest Period
(as used in this Section, the “Measurement Period”) equals or exceeds 120% of the Accreted Principal Amount of the Notes. 
 (b) During any Interest Period when Contingent Interest shall be payable with respect to the Notes, the Contingent Interest payable per $1,000 in Original Principal Amount of Notes will equal 0.40% of the
average Trading Price of $1,000 in Original Principal Amount of the Notes for the applicable Measurement Period. 
 (c) The
Company will promptly (and in any event prior to the applicable Interest Payment Date) notify Holders upon determination that they will be entitled to receive Contingent Interest during an Interest Period. 

(d) The Company shall pay Contingent Interest owed pursuant to this Section 3.03 for any Interest Period on the Interest Payment
Date immediately succeeding the applicable Interest Period, to Holders of the Notes as of the Regular Record Date related to such Interest Payment Date. 
 SECTION 3.04 Accretion. 
 Commencing on
December 15, 2016, the Original Principal Amount shall accrete at a rate that provides Holders with an aggregate annual yield to Maturity of 2.00% per annum (computed on a semi-annual bond-equivalent yield basis). Schedule B hereto
sets forth the Accreted Principal Amounts as of specified dates during the period from December 15, 2016 through the Maturity Date. 
 SECTION 3.05 Denominations. 
 The Notes shall be
issuable only in registered form, without coupons, in denominations of U.S. $1,000 of Original Principal Amount and integral multiples of U.S. $1,000 in excess thereof. 
 SECTION 3.06 Execution, Authentication, Delivery and Dating. 
 The Notes shall be executed on behalf of the Company by its Chief Executive Officer, its President or one of its Vice Presidents, attested by its Secretary or one of its Assistant Secretaries. The
signature of any of these officers on the Notes may be manual or facsimile. 

  
 27 

  
 Notes
bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices at the date of such Notes. 
 At any time
and from time to time after the execution and delivery of this Supplemental Indenture, the Company may deliver Notes executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such
Notes; and the Trustee in accordance with such Company Order shall authenticate and deliver such Notes as provided in this Indenture and not otherwise. 
 Each Note shall be dated the date of its authentication. 
 No Note
shall be entitled to any benefit under this Supplemental Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Trustee by
manual signature, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
 SECTION 3.07 Global Notes; Non-Global Notes; Book-entry Provisions. 
 (a) Global Notes 
 (i) Each Global Note issued and authenticated
under this Supplemental Indenture shall be registered in the name of the Depositary designated by the Company for such Global Note or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such Global
Note shall constitute a single Note for all purposes of this Indenture. The Company hereby appoints DTC as the initial Depositary. 
 (ii) Except for exchanges of Global Notes for definitive, non-Global Notes at the sole discretion of the Company, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer
of a Global Note in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Note or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Note, or (ii) has ceased to be a clearing agency registered as such under the Exchange Act, has ceased to be a “clearing corporation” within the meaning of the Uniform Commercial Code, or
announces an intention permanently to cease business or does in fact do so or (B) there shall have occurred and be continuing an Event of Default with respect to such Global Note and the maturity of the Notes shall have been accelerated in
accordance with Section 5.02 and any Holder shall have given written notice to the Company requesting the issuance of definitive Notes. In such event set forth in clause (A) above, if a successor Depositary for such Global Note is not
appointed by the Company within 90 calendar days after the Company receives such notice or becomes aware of such ineligibility, the Company shall execute, and the Trustee, upon receipt of a Company Order directing the authentication and delivery of
Notes, shall authenticate and deliver, Notes, in any authorized denominations in an aggregate principal amount equal to the Accreted Principal Amount of such Global Note in exchange for such Global Note. 

  
 28 

  
 (iii)
If any Global Note is to be exchanged for other Notes or canceled in whole, it shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as Registrar, for exchange or cancellation, as provided in this Article 3. If any
Global Note is to be exchanged for other Notes or canceled in part, or if another Note is to be exchanged in whole or in part for a beneficial interest in any Global Note, in each case as provided in this Article 3, then either (A) such Global
Note shall be so surrendered for exchange or cancellation, as provided in this Article 3, or (B) the Accreted Principal Amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or
equal to the principal amount of such other Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Trustee, as Registrar, whereupon the Trustee, in accordance
with the Applicable Procedures, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Note, the Trustee shall, upon receipt of a Company
Order, subject to this Article 3, authenticate and deliver any Notes issuable in exchange for such Global Note (or any portion thereof) to or upon the order of, and registered in such names as may be directed by, the Depositary or its authorized
representative. The Trustee shall be entitled to receive from the Depositary the names, addresses and tax identification numbers of the Persons in whose names the Notes are to be registered prior to such authentication and delivery. Upon the request
of the Trustee in connection with the occurrence of any of the events specified in the preceding paragraph, the Company shall promptly make available to the Trustee a reasonable supply of Notes that are not in the form of Global Notes. The Trustee
shall be entitled to rely upon any order, direction or request of the Depositary or its authorized representative which is given or made pursuant to this Article 3 if such order, direction or request is given or made in accordance with the
Applicable Procedures. 
 (iv) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this Article 3 or otherwise, shall be authenticated and delivered in the form of, and shall be, a registered Global Note, unless such Note is to be registered in
accordance with this Article 3 in the name of a Person other than the Depositary for such Global Note or a nominee thereof, in which case such Note shall be authenticated and delivered in definitive, fully registered form, without interest coupons.

 (v) The Depositary or its nominee, as registered owner of a Global Note, shall be the Holder of such Global
Note for all purposes under this Supplemental Indenture and the Notes, and owners of beneficial interests in a Global Note shall hold such interests pursuant to the Applicable Procedures. Accordingly, any such owner’s beneficial interest in a
Global Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Agent Members and such owners of beneficial interests in a Global Note shall not be
considered the owners or holders thereof. 

  
 29 

  
 (b) Non-Global Notes.
Notes issued pursuant to Section 3.07(a)(ii) shall be in definitive, fully registered form, without interest coupons. 

SECTION 3.08 Persons Deemed Owners. 

Prior to due presentment of a Note for registration of transfer, the Company, the Trustee, any agent of the Company, the
Trustee or any Paying Agent may treat the Person in whose name such Note is registered as the owner of such Note for the purpose of receiving payment of principal of, and (subject to Section 3.10) Interest on, such Note, and for all other
purposes whatsoever, whether or not such Note be overdue, and none of the Company, the Trustee, any agent of the Company, the Trustee or any Paying Agent shall be affected by notice to the contrary. 

SECTION 3.09 Mutilated, Destroyed, Lost and Stolen Notes. 

If any mutilated Note is surrendered to the Trustee, the Company shall execute, and upon receipt of a Company Order, the
Trustee shall authenticate and deliver in exchange therefor, a new Note of like tenor and Accreted Principal Amount and bearing a number not contemporaneously outstanding. 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction,
loss or theft of any Note and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Note has been
acquired by a bona fide purchaser, the Company shall execute, and upon receipt of a Company Order, the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Note, a new Note of like tenor and principal amount
and bearing a number not contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen
Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note. 
 Upon the issuance of any new Note under this Section 3.09, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new
Note issued pursuant to this Section 3.09 in lieu of any destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Supplemental Indenture equally and proportionately with any and all other Notes duly issued hereunder. 

The provisions of this Section 3.09 are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 

  
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SECTION 3.10 Payment of Interest; Interest Rights Preserved. 

Interest on any Note which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such Interest. 

Any Interest on any Note which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in clause (a) or (b) below: 
 (a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on a special record date for the payment of such Defaulted Interest (a “Special Record Date”), which
shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall deposit with
the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder at his address as it
appears in the Securities Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid
to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (b). 

(b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee. 
 Subject to the foregoing provisions of this Section 3.10, each Note
delivered under this Supplemental Indenture upon registration of transfer of or in exchange for or in lieu of any other Note shall carry the rights to Interest accrued and unpaid, and to accrue, which were carried by such other Note, as provided for
in this Indenture and the Notes. 

  
 31 

  

SECTION 3.11 Cancellation. 
 All Notes surrendered for payment, registration of transfer or exchange or conversion shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Notes so delivered shall be
promptly cancelled by the Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 3.11, except as expressly permitted by this Supplemental Indenture. All cancelled Notes held by the
Trustee shall be disposed of as directed by a Company Order. 
 SECTION 3.12 Computation of Interest.

 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

ARTICLE 4 

DISCHARGE 
 SECTION 4.01 Discharge of Liability on Notes. 

When (1) the Company shall deliver to the Registrar for cancellation all Notes then Outstanding not theretofore
delivered to the Registrar for cancellation or (2) all the Notes then Outstanding not theretofore delivered to the Registrar for cancellation shall have (a) been deposited for conversion and the Company shall deliver to the Holders shares
of Common Stock (or, at the election of the Company, cash or a combination of cash and shares of Common Stock) sufficient to pay all amounts owing in respect of all such Notes or (b) become due and payable on the Maturity Date, Redemption Date,
Optional Put Repurchase Date, Fundamental Change Repurchase Date or otherwise, and the Company shall deposit with the Trustee cash sufficient to pay all amounts owing in respect of all such Notes, including the Accreted Principal Amount and Interest
accrued and unpaid to the Maturity Date, Redemption Date, Optional Put Repurchase Date, Fundamental Change Repurchase Date or other such date, and if in either case of clauses (1) or (2) above, no Event of Default set forth in
Section 5.01(h) or (i) hereof or event (including resulting from such deposit) that, with lapse of time or notice or both, would become an Event of Default set forth in Section 5.01(h) or (i) hereof with respect to the Notes
shall have occurred and be continuing, and the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Supplemental Indenture with respect to the Notes shall cease to be of further effect (except as to
(i) remaining rights of registration of transfer, substitution and exchange and conversion of Notes, (ii) rights hereunder of Holders to receive from the Trustee payments of the amounts then due, including Interest with respect to the
Notes and the other rights, duties and obligations of Holders, as beneficiaries hereof solely with respect to the amounts, if any, so deposited with the Trustee, and (iii) the rights, obligations and immunities of the Trustee, Authenticating
Agent, Paying Agent, Conversion Agent and Registrar under this Supplemental Indenture with respect to the Notes), and the Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by
Section 4.03 and at the cost and expense of the Company, shall execute proper instruments 

  
 32 

 
acknowledging satisfaction of, and discharging this Supplemental Indenture with respect to, the Notes; provided, however, the Company hereby agrees to reimburse the Trustee,
Authenticating Agent, Paying Agent, Conversion Agent and Registrar for any costs or expenses thereafter reasonably and properly incurred by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar and to compensate the
Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar for any services thereafter reasonably and properly rendered by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar in connection with this
Supplemental Indenture with respect to the Notes. 
 SECTION 4.02 Reinstatement. 

If the Trustee or the Paying Agent is unable to apply any money to the Holders entitled thereto by reason of any order or
judgment of any court of governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Supplemental Indenture with respect to the Notes shall be revived and reinstated as though no
deposit had occurred pursuant to Section 4.01 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with this Supplemental Indenture and the Notes to the Holders entitled thereto; provided,
however, that if the Company makes any payment of the Accreted Principal Amount of or Interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent. 
 SECTION 4.03 Officers’ Certificate; Opinion
of Counsel. 
 Upon any application or demand by the Company to the Trustee to take any action under
Section 4.01, the Company shall furnish to the Trustee an Officers’ Certificate and Opinion of Counsel stating that all conditions precedent, if any, provided for in this Supplemental Indenture relating to the proposed action have been
complied with. 
 ARTICLE 5 
 REMEDIES 
 SECTION 5.01 Events of Default.

 “Event of Default,” wherever used herein, means any one of the following events with respect
to the Notes (whatever the reason for such Event of Default or whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body): 
 (a) default in any payment of Interest on any Note when due and payable and the default
continues for a period of 30 calendar days; or 
 (b) default in the payment of Accreted Principal Amount of any Note when due
and payable at Maturity, upon required repurchase, upon redemption, upon acceleration or otherwise; or 

  
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 (c) failure by the
Company for 5 calendar days to comply with its obligation to convert the Notes into shares of Common Stock (or, at the election of the Company, cash or a combination of cash and shares of Common Stock) upon exercise of a Holder’s conversion
right; or 
 (d) failure by the Company to comply with its obligations under Section 7.01; or 

(e) failure by the Company to comply with its notice requirements under Section 11.09(b) when due; or 

(f) failure by the Company for 60 calendar days after written notice from the Trustee or the Holders of at least 25% aggregate Accreted
Principal Amount of the Outstanding Notes has been received by the Company to comply with any of its other agreements contained in the Notes or the Indenture; or 
 (g) default by the Company or any Subsidiary of the Company with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced,
any debt for money borrowed in excess of $100.0 million in the aggregate of the Company and/or any such Subsidiary of the Company, whether such debt now exists or shall hereafter be created, which default results (i) in such debt becoming or
being declared due and payable and such debt has not been discharged in full or such declaration rescinded or annulled within 30 calendar days or (ii) from a failure to pay the principal of any such debt when due and payable at its stated
maturity, upon required repurchase, upon declaration or otherwise, and such defaulted payments shall not have been made, waived or extended within 30 calendar days; or 
 (h) the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or any of its Significant Subsidiaries or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any of its Significant Subsidiaries or any
substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become due; or 
 (i) an involuntary case or other
proceeding shall be commenced against the Company or any of its Significant Subsidiaries seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any of its Significant Subsidiaries or any substantial part of its property, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of 60 consecutive calendar days. 
 (j) For the avoidance of
doubt, Section 5.1 of the Base Indenture shall not be applicable to the Notes. 

  
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SECTION 5.02 Acceleration of Maturity; Rescission and Annulment. 

If an Event of Default (other than an Event of Default specified in Section 5.01(h) or Section 5.01(i) with
respect to the Company) occurs and is continuing, then in every such case (except as provided in the immediately following paragraph) the Trustee or the Holders of not less than 25% in aggregate Accreted Principal Amount of the Outstanding Notes may
declare 100% of the aggregate Accreted Principal Amount of and accrued and unpaid Interest on all the Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such
declaration of acceleration, all principal and all accrued and unpaid Interest on the Notes shall become immediately due and payable. If an Event of Default specified in Section 5.01(h) or Section 5.01(i) with respect to the Company
occurs, the aggregate accreted principal of, and accrued and unpaid Interest, if any, on, all of the Notes shall become due and payable immediately without any declaration or other Act of the Holders or any act on the part of the Trustee.

 Notwithstanding the foregoing, at the election of the Company, the sole remedy of Holders for an Event of
Default specified in Section 5.01(f) relating to the failure by the Company to comply with its obligations under Section 10.06 and for any failure by the Company to comply with the requirements of Section 314(a)(1) of the Trust
Indenture Act, shall for the first 90 calendar days after the occurrence of such an Event of Default consist exclusively of the right (the “Extension Right”) to receive an extension fee on the Notes in an amount equal to 0.25% of
the principal amount of the Notes (the “Extension Fee”). If the Company elects to pay the Extension Fee as the sole remedy for an Event of Default specified in Section 5.01(f) relating to the failure by the Company to comply
with its obligations under Section 10.06 and for any failure by the Company to comply with the requirements of Section 314(a)(1) of the Trust Indenture Act, the Company (i) shall notify, in the manner provided for in Section 1.6
of the Base Indenture, the Holders, the Trustee and Paying Agent of such election prior to the first Business Day following the date on which such Event of Default first occurs and (ii) pay the Extension Fee, on or before the close of business
on the date on which such Event of Default first occurs, on all Notes then Outstanding. Upon the Company’s failure to give such notice or to pay the Extension Fee when due, the Notes shall be subject to acceleration as provided in the first
paragraph of this Section 5.02. On and after the 91st calendar day after such Event of Default occurs, if such Event of Default is not cured or waived prior to such 91st calendar day, the Notes shall be subject to acceleration as provided in
the first paragraph of this Section 5.02. If an Extension Fee is payable under this Section 5.02, the Company shall deliver to the Trustee a certificate to that effect stating (i) the amount of such Extension Fee that is payable and
(ii) the date on which such Extension Fee is payable. Unless and until a Responsible Officer of the Trustee receives at the Corporate Trust Office such a certificate, the Trustee may assume without inquiry that the Extension Fee is not payable.
If the Extension Fee has been paid by the Company directly to the Holders, the Company shall deliver to the Trustee a certificate setting forth the particulars of such payment. 

Notwithstanding the foregoing paragraph, if an Event of Default (as defined therein) occurs under any series of the
Company’s debt securities (other than the Notes) issued subsequent to the Issue Date resulting from the Company’s failure to comply with obligations similar to those contained in Section 10.06 or the requirements of
Section 314(a)(1) of the Trust 

  
 35 

 
Indenture Act, and such Event of Default is not subject to extension on terms similar to those set forth in the foregoing paragraph, then the Extension Right shall no longer apply and the Notes
shall be subject to acceleration as provided in the first paragraph of this Section 5.02. 
 This
Section 5.02, however, is subject to the conditions that if, at any time after the Accreted Principal Amount of the Notes shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall
have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay installments of accrued and unpaid Interest upon all Notes and the Accreted Principal Amount of any and all Notes
that shall have become due otherwise than by acceleration (with Interest on installments of accrued and unpaid Interest (to the extent that payment of such Interest is enforceable under applicable law) and on such Accreted Principal Amount at the
rate borne by the Notes during the period of such Default) and amounts due to the Trustee pursuant Section 6.6 of the Base Indenture, and if (1) rescission would not conflict with any judgment or decree of a court of competent jurisdiction
and (2) any and all Events of Defaults under this Supplemental Indenture with respect to such Notes, other than the nonpayment of Accreted Principal Amount of and accrued and unpaid Interest on such Notes that shall have become due solely by
such acceleration, shall have been cured or waived pursuant to Section 5.04, then and in every such case the Holders of a majority in aggregate principal amount of the Outstanding Notes, by written notice to the Company and to the Trustee, may
waive all Defaults or Events of Default with respect to the Notes and rescind and annul such declaration and its consequences and such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall impair any right consequent thereon. 

SECTION 5.03 Unconditional Right of Holders to Receive Principal and Interest and to Convert. 

Notwithstanding any other provision in this Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the Accreted Principal Amount of and (subject to Section 3.10) Interest on such Note on the Maturity Date, and to convert such Note in accordance with Article 12, and to institute suit for the enforcement of
any such payment and right to convert, and such rights shall not be impaired without the consent of such Holder. 

SECTION 5.04 Waiver of Past Defaults and Rescission of Acceleration. 

With the consent of the Holders of not less than a majority in the aggregate Accreted Principal Amount of the Outstanding
Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes), any past Default hereunder and its consequences may be waived on behalf of the Holders of all of the Notes,
except a Default (A) in the payment of the Accreted Principal Amount of or Interest on any Note or in the delivery of amounts due upon conversion, or (B) in respect of a covenant or provision hereof which under Article 8 cannot be modified
or amended without the consent of the Holder of each Outstanding Note affected, and rescind any such acceleration with respect to the Notes and its consequences if (1) rescission would not conflict with any judgment or decree of a court

  
 36 

 
of competent jurisdiction and (2) all existing Events of Default, other than the nonpayment of Accreted Principal Amount of and Interest on the Notes or failure to deliver amounts due upon
conversion that have become due solely by such declaration of acceleration, have been cured or waived. 
 Upon
the waiver of any such Default, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of the Indenture; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon. 
 SECTION 5.05 Waiver of Stay, Usury or Extension Laws. 

The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay, usury or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of the Indenture; and the Company (to the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it shall not hinder, delay or impede by reason of such law the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law had been enacted. 
 SECTION 5.06
Control by Holders. 
 The Holders of a majority in aggregate Accreted Principal Amount of the Outstanding
Notes shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee, provided that 

(a) such direction shall not be in conflict with any rule of law or with the Indenture; 

(b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and 

(c) the Trustee may refuse to follow any direction that conflicts with law or the Indenture, or that the Trustee determines is unduly
prejudicial to the rights of any other Holder or would involve the Trustee in personal liability, 
 provided further
that, prior to taking any action under the Indenture, the Trustee will be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action. 

SECTION 5.07 Collection of Indebtedness and Suits for Enforcement by Trustee. 

The Company covenants that if: 
 (1) default is made in the payment of any Interest on any Note when such Interest becomes due and payable and such default continues for a period of 30 days, or 

  
 37 

  
 (2)
default is made in the payment of the Accreted Principal Amount of (or premium, if any, on) any Note at the Maturity thereof, 

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Notes, the whole amount then due and
payable on such Notes for Accreted Principal Amount and Interest, and, to the extent that payment of such Interest shall be legally enforceable, Interest on any overdue Accreted Principal Amount and on any overdue Interest, at the rate borne by the
Notes, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in the
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

SECTION 5.08 Trustee May File Proofs of Claim. 

In case of any judicial proceeding relative to the Company (or any other obligor upon the Notes), its property or its
creditors, the Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.6 of the Base Indenture. 

No provision of the Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 SECTION 5.09 Trustee May Enforce Claims Without Possession of Notes. 

All rights of action and claims under the Indenture or the Notes may be prosecuted and enforced by the Trustee without the
possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes in respect of which such judgment has been recovered.

  
 38 

  

SECTION 5.10 Application of Money Collected. 

Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or Interest, upon presentation of the Notes and the notation thereon of the payment if only partially paid and upon surrender thereof if
fully paid: 
 FIRST: To the payment of all amounts due the Trustee under Section 6.6 of the Base Indenture;
and 
 SECOND: To the payment of the amounts then due and unpaid for Accreted Principal Amount of and Interest on
the Notes in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Notes for Accreted Principal Amount and Interest,
respectively. 
 SECTION 5.11 Limitation on Suits. 

No Holder of any Note shall have any right to institute any proceeding, judicial or otherwise, with respect to the
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
 (1)
such Holder has previously given written notice to the Trustee of a continuing Event of Default; 
 (2) the
Holders of not less than 25% in aggregate Accreted Principal Amount of the Outstanding Notes shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 (3) such Holder or Holders have offered to the Trustee security or indemnity satisfactory to it against any
costs, liability or expense; 
 (4) the Trustee for 60 calendar days after its receipt of such notice, request
and offer of security or indemnity has failed to institute any such proceeding; and 
 (5) no direction that, in
the opinion of the Trustee, is inconsistent with such written request has been given to the Trustee during such 60 calendar day period by the Holders of a majority in aggregate Accreted Principal Amount of the Outstanding Notes; 

it being understood and intended that no one or more Holders shall have any right in any manner whatever by virtue of, or by availing of,
any provision of this Supplemental Indenture to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under the Indenture, except in the
manner herein provided and for the equal and ratable benefit of all the Holders. 

  
 39 

  

SECTION 5.12 Restoration of Rights and Remedies. 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under the Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders
shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 

SECTION 5.13 Rights and Remedies Cumulative. 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in
the last paragraph of Section 3.09, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy. 
 SECTION 5.14 Delay or Omission
Not Waiver. 
 No delay or omission of the Trustee or of any Holder of any Note to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
 SECTION 5.15 Undertaking for Costs. 
 In any
suit for the enforcement of any right or remedy under the Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the
costs of such suit, and may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any such party litigant, in the manner and to the extent provided in the Trust Indenture Act; provided, that neither this
Section 5.15 nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit instituted by the Company or in any suit for the enforcement of the right to convert any
Note in accordance with Article 12. 

  
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 ARTICLE 6 

[RESERVED.] 
 ARTICLE 7 
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE 
 SECTION 7.01 Company
May Consolidate, Etc., Only on Certain Terms. 
 The Company shall not consolidate with or merge with or into
any other Person or convey, transfer or lease all or substantially all of its properties and assets to any Person, unless: 
 (1) the resulting, surviving or transferee Person, if not the Company, is a corporation, partnership, limited liability company or other business entity organized and existing under the laws of the United
States of America, any State thereof or the District of Columbia, and such Person, if not the Company, expressly assumes by supplemental indenture all of the Company’s obligations under the Notes and the Indenture; 

(2) immediately after giving effect to such transaction, no Default has occurred and is continuing; and 

(3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with. 
 SECTION 7.02 Successor Substituted. 

Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or
lease of all or substantially all of the properties and assets of the Company in accordance with Section 7.01, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease
is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of
a lease, the predecessor Person shall be relieved of all obligations and covenants under the Indenture and the Notes. 
 ARTICLE
8 
 SUPPLEMENTAL INDENTURES 

SECTION 8.01 Supplemental Indentures Without Consent of Holders. 

Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, upon receipt of a
Company Request, at any time and from time to time, may enter into one or more indentures supplemental hereto for any of the following purposes: 
 (a) to (i) cure any ambiguity, manifest error or defect or (ii) cure any omission or inconsistency, provided, in the case of clause (ii), the rights of the Holders are not adversely
affected in any material respect; or 

  
 41 

  
 (b) to provide for the
assumption by a successor corporation of the Company’s obligations under the Supplemental Indenture; or 
 (c) to add
guarantees with respect to the Notes; or 
 (d) to secure the Notes; or 

(e) to add to the covenants of the Company for the benefit of the Holders or to surrender any right or power herein conferred upon the
Company; or 
 (f) to provide for the conversion of Notes in accordance with the terms of this Supplemental Indenture; or

 (g) to make any changes to this Supplemental Indenture or the Notes that does not adversely affect the rights of any Holder
in any material respect; or 
 (h) to comply with the requirements of the Trust Indenture Act or the rules and regulations of
the Commission thereunder in order to effect or maintain the qualification of this Supplemental Indenture under the Trust Indenture Act, as contemplated by this Supplemental Indenture or otherwise; or 

(i) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee; or 

(j) to provide for the issuance of Additional Notes in accordance with the terms and conditions of this Supplemental Indenture.

 Upon a Company Request, accompanied by a Board Resolution authorizing the execution of any such supplemental
indenture, and subject to and upon receipt by the Trustee of the documents described in Section 9.3 of the Base Indenture, the Trustee shall (subject to the last sentence Section 9.3 of the Base Indenture) join with the Company in the
execution of any supplemental indenture authorized or permitted by the terms of this Supplemental Indenture and to make any further appropriate agreements and stipulations that may be therein contained. 

SECTION 8.02 Supplemental Indentures With Consent of Holders. 

With the written consent of the Holders of not less than a majority in aggregate Accreted Principal Amount of the
Outstanding Notes (including without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for Notes), by the Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Supplemental Indenture or of modifying
in any manner the rights of the Holders under this Supplemental Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby: 

(a) reduce the percentage in aggregate Accreted Principal Amount of Notes the Holders of which must consent to an amendment; or

  
 42 

  
 (b) reduce the rate,
or change the stated time for payment, of Interest on any Note or reduce the amount, or extend the stated time for payment, of the Extension Fee; or 
 (c) reduce the Original Principal Amount or Accreted Principal Amount, or extend the Maturity Date, of any Note; or 
 (d) make any change that adversely affects the conversion rights of any Note; or 

(e) reduce the Fundamental Change Repurchase Price, Optional Put Repurchase Price or Redemption Price of any Note or amend or modify in
any manner adverse to the Holders of the Notes the Company’s obligations to make such payments, whether through an amendment or waiver of provisions in the covenants, definitions or otherwise; or 

(f) change the place or currency of payment of Accreted Principal Amount, Interest, Optional Put Repurchase Price, Fundamental Change
Repurchase Price, Redemption Price or the Extension Fee in respect of any Note; or 
 (g) impair the right of any Holder to
receive payment of Accreted Principal Amount of, and Interest on, such Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Note; or 

(h) contractually subordinate the Notes in right of payment to any other Indebtedness of the Company; or 

(i) make any change in the provisions of this Article 8 that require each Holder’s consent or in the waiver provisions in
Section 5.02 or Section 5.04. 
 It shall not be necessary for the consent of Holders under this
Section 8.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 

This Section 8.02 shall be subject to Section 9.3 of the Base Indenture. 

SECTION 8.03 Notice of Supplemental Indentures. 

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of
Section 8.02, the Company shall promptly give notice in the manner provided in Section 1.6 of the Base Indenture briefly setting forth in general terms the substance of such supplemental indenture. Any failure of the Company to give such
notice, or any defect therein, shall not in any way impair or affect the validity of any such supplemental indenture. 

  
 43 

  

SECTION 8.04 Effect of Supplemental Indentures. 

Upon the execution of any supplemental indenture under this Article 8, this Supplemental Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this Supplemental Indenture for all purposes; and every Holder theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

SECTION 8.05 Conformity with Trust Indenture Act. 

Every supplemental indenture executed pursuant to this Article 8 shall conform to the requirements of the Trust Indenture
Act. 
 ARTICLE 9 
 HOLDERS LISTS AND BY TRUSTEE AND COMPANY 

SECTION 9.01 Company to Furnish Trustee Names and Addresses of Holders. 

The Company will furnish or cause to be furnished to the Trustee 

(a) semi-annually, not more than 15 calendar days after each Regular Record Date, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of such Regular Record Date, and 
 (b) at such other times as the Trustee
may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; 

excluding from any such list names and addresses received by the Trustee in its capacity as Registrar. 

SECTION 9.02 Preservation of Information. 
 (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 9.01 and the names and addresses of Holders received by the Trustee in its capacity as Registrar. The Trustee may dispose of any list furnished to it as provided in Section 9.01 upon receipt of a new list so furnished. 

(b) The rights of Holders to communicate with other Holders with respect to their rights under this Supplemental Indenture or under the
Notes, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act. 
 (c) Every
Holder, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the Trust Indenture Act. 

  
 44 

  
 ARTICLE 10 

COVENANTS 
 SECTION 10.01 Payment of Principal and Interest. 

The Company covenants and agrees that it shall duly and punctually pay the Accreted Principal Amount of and Interest on
the Notes in accordance with the terms of the Notes and this Supplemental Indenture. The Company shall deposit or cause to be deposited with the Trustee or its nominee, no later than 1:00 p.m., New York City time, on the Maturity Date of the Notes
or no later than 1:00 p.m., New York City time, on the due date for any installment of Interest, all payments so due, which payments shall be in immediately available funds on the date of such Maturity Date or due date, as the case may be.

 SECTION 10.02 Maintenance of Offices or Agencies. 

The Company shall maintain in an office or agency where the Notes may be surrendered for registration of transfer or
exchange or for presentation for payment or for conversion or repurchase and where notices and demands to or upon the Company in respect of the Notes and this Supplemental Indenture may be served. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office. 
 The Company may at any time and from time to time vary or terminate the appointment of any such agent or appoint any additional agents for any or all of such purposes; provided, however,
that until all of the Notes have been delivered to the Trustee for cancellation, or moneys sufficient to pay the principal of and Interest on the Notes have been made available for payment and either paid or returned to the Company pursuant to the
provisions of Section 10.05, the Company shall maintain an office or agency where Notes may be presented or surrendered for payment and conversion, where Notes may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Notes and this Supplemental Indenture may be served. The Company shall give prompt written notice to the Trustee, and notice to the Holders in accordance with Section 1.6 of the Base Indenture,
of the appointment or termination of any such agents and of the location and any change in the location of any such office or agency. 
 The Company hereby initially designates the Trustee as Paying Agent, Registrar, and Conversion Agent, and the Corporate Trust Office of the Trustee as the office or agency of the Company for each of the
aforesaid purposes. 
 Any rights or immunities of the Trustee under the Indenture shall apply to the Trustee
when acting under any or all of the aforementioned capacities. 

  
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SECTION 10.03 Existence. 
 Subject to Section 7.01, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence. 

SECTION 10.04 Annual Statement by Officers. 

The Company shall deliver to the Trustee, within 120 calendar days after the end of each fiscal year, an Officers’
Certificate as to the signing officers’ knowledge of the Company’s compliance with all conditions and covenants on its part contained in this Supplemental Indenture. For purposes of this Section 10.04, such compliance shall be
determined without regard to any grace period or requirement of notice provided under this Supplemental Indenture. 
 Any notice required to be given under this Section 10.04 shall be delivered to the Trustee at its Corporate Trust Office. 
 SECTION 10.05 Money for Note Payments to Be Held in Trust. 
 If the Company shall at any time act as its own Paying Agent, it will, on or before each due date of the Accreted Principal Amount of or Interest on any of the Notes, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay all amounts payable to the Trustee under Section 6.6 of the Base Indenture and the Accreted Principal Amount or Interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act. 
 Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of the Accreted Principal Amount of or Interest on any Notes, deposit with a Paying Agent a sum sufficient to pay
such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

The Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 10.05, that such Paying Agent will (i) comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(ii) during the continuance of any default by the Company (or any other obligor upon the Notes) in the making of any payment in respect of the Notes, upon the written request of the Trustee, forthwith pay to the Trustee all sums held in trust
by such Paying Agent as such. 
 The Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as
those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

  
 46 

  
 Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of or Interest on any Note and remaining unclaimed for two years after such Accreted Principal Amount or Interest has become
due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a Press Release, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 calendar days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
 SECTION 10.06 Reports by Company. 
 (a) The Company shall file
any documents or reports that it is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act with the Trustee within 30 calendar days after the same are required to be filed with the Commission. Documents filed
by the Company with the Commission via the EDGAR system (or any successor thereto) will be deemed filed with the Trustee as of the time such documents are filed via EDGAR (or any successor thereto). 

(b) Delivery of such reports, information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt
of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on an Officers’ Certificate). Notwithstanding anything to the contrary in this Section 10.06, the Company, to the extent permitted under the Trust Indenture Act, shall not be required to deliver to
the Trustee or the Holders any material for which the Company has sought and received confidential treatment by the Commission. 

SECTION 10.07 [Reserved] 
 SECTION 10.08 Tax Treatment of Notes. 
 The
Company agrees, and by acceptance of a beneficial ownership interest in the Notes each Holder is deemed to have agreed, for United States federal income tax purposes, 
 (a) to treat the Notes as indebtedness subject to United States Treasury Regulation Section 1.1275-4 (the “Contingent Payment Debt Regulations”) and, for purposes of the Contingent
Payment Debt Regulations, to treat cash and the fair market value of any Common Stock beneficially received by a Holder upon conversion of such Note as a contingent payment under Treasury Regulation Section 1.1275-4(b); 

(b) to be bound by the Company’s application of the Contingent Payment Debt Regulations to the Notes, including the Company’s
determination of the comparable yield and projected payment schedule, as defined in the Contingent Payment Debt Regulations, with respect to the Notes. A Holder may obtain the issue price, issue date, comparable yield (which will be treated as the
yield to 

  
 47 

 
maturity for United States federal income tax purposes) and projected payment schedule by submitting a written request to the Company at the following address: Hologic, Inc., 35 Crosby Drive,
Bedford, Massachusetts 01730, Attention: Investor Relations; 
 (c) that the comparable yield and the projected payment schedule
are not determined for any purpose other than for the purpose of applying Treasury Regulation Section 1.1275-4(b) to the Notes, and the comparable yield and the projected payment schedule do not constitute a projection or representation
regarding the actual amounts payable on the Notes; 
 (d) to use the projected payment schedule referred to in
Section 10.08(b) above, as required by United States Treasury Regulations Section 1.1275-4(b)(4)(iv), to determine its interest accruals and adjustments as provided by United States Treasury Regulation Section 1.1275-4(b); and

 (e) the Company and each Holder shall not take any position on a tax return inconsistent with (a), (b), (c) or (d),
unless otherwise required by applicable law. 
 ARTICLE 11 

REDEMPTION AND REPURCHASE OF NOTES 

SECTION 11.01 Right to Redeem; Notice to Trustee. 

At any time on or after December 19, 2016, the Company may redeem any or all of the Notes, except for the Notes that
the Company is required to repurchase pursuant to Section 11.08 and Section 11.09, in cash at the Redemption Price (as defined below). 
 The redemption price will equal 100% of the Accreted Principal Amount of the Notes being redeemed, plus accrued and unpaid Interest, if any, to, but not including, the Redemption Date (the
“Redemption Price”). However, if the Redemption Date is after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the Company shall pay the full amount of accrued and unpaid Interest payable on such
Interest Payment Date to the Holder of record at the close of business on the corresponding Regular Record Date. 

If the Company elects to redeem Notes pursuant to this Section 11.01, it shall notify the Trustee at least 45
calendar days prior to the Redemption Date, as fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), of the Redemption Date and the Accreted Principal Amount of Notes to be redeemed. 

Notwithstanding the foregoing, the Company may not redeem any Notes if the Company has failed to pay any Interest due on
the Notes and such failure to pay is continuing. 
 SECTION 11.02 Selection of Notes to Be Redeemed.

 If less than all of the outstanding Notes are to be redeemed, the Trustee will select the Notes to be redeemed
in Original Principal Amounts of $1,000 or multiples of $1,000 by lot, pro rata or by another method the Trustee considers reasonable. If a portion of a Holder’s Notes is selected for redemption and such Holder converts a portion of its Notes,
the converted portion will be deemed to be of the portion selected for redemption. Provisions of this Supplemental 

  
 48 

 
Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. If any Note selected for partial redemption is converted in part before termination of
the conversion right with respect to the portion of the Note so selected, the converted portion of such Note shall be deemed to be taken from the portion selected for redemption. Notes which have been converted during a selection of Notes to be
redeemed shall be treated by the Trustee as Outstanding for the purpose of such selection. 
 SECTION 11.03
Notice of Redemption. 
 Not more than 60 calendar days but not less than 30 calendar days prior to the
Redemption Date, the Company shall give a Notice of Redemption to all record Holders at their addresses set forth in the Securities Register of the Registrar. 
 The notice shall identify the Notes to be redeemed and shall state: 
 (a) that the
Holder has a right to convert the Notes called for Redemption, and the Conversion Rate then in effect; 
 (b) the Redemption
Date; 
 (c) the Redemption Price; 
 (d) the name and address of each Paying Agent and Conversion Agent; 
 (e) that
Notes called for redemption must be presented and surrendered to a Paying Agent to collect the Redemption Price; 
 (f) that
Holders who wish to convert Notes must surrender such Notes for conversion no later than 5:00 p.m., New York City time, on the Scheduled Trading Day immediately preceding the Redemption Date and must satisfy the other requirements set forth in
Article 12 (which shall be specified in such notice); 
 (g) that, unless the Company defaults in making the payment of the
Redemption Price, Interest on Notes called for redemption shall cease accruing on and after the Redemption Date and subject to the provisions of Sections 11.01 and 11.04, the only remaining right of the Holder shall be to receive payment of the
Redemption Price upon presentation and surrender to a Paying Agent of the Notes; and 
 (h) if any Note is being redeemed in
part, the portion of the Accreted Principal Amount of such Note to be redeemed and that, after the Redemption Date, upon presentation and surrender of such Note, new Notes in an aggregate Accreted Principal Amount equal to the unredeemed portion
thereof will be issued. 
 If any of the Notes to be redeemed is in the form of a Global Security, then the
Company shall modify such notice to the extent necessary to accord with the procedures of the Depositary applicable to redemptions. At the Company’s written request, the Trustee shall give the notice of redemption in the Company’s name and
at the Company’s expense. 

  
 49 

  

SECTION 11.04 Effect of Notice of Redemption. 

Once notice of redemption is mailed, Notes called for redemption become due and payable on the Redemption Date and at the
Redemption Price stated in the notice except for Notes that are converted in accordance with the terms of this Supplemental Indenture. Upon presentation and surrender to a Paying Agent, Notes called for redemption shall be paid in cash at the
Redemption Price stated in the notice and from and after the Redemption Date such Notes shall cease to bear Interest and the rights of the Holders therein shall terminate (other than the right to receive the Redemption Price). 

SECTION 11.05 Deposit of Redemption Price. 

Prior to 1:00 p.m., New York City time, on the Redemption Date, the Company shall deposit with a Paying Agent (or, if the
Company acts as Paying Agent, shall segregate and hold in trust) an amount of money (in immediately available funds if deposited on such Redemption Date) sufficient to pay the Redemption Price of all Notes to be redeemed on that date, other than
Notes or portions thereof called for redemption on that date which have been delivered by the Company to the Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable return to the Company any money not
required for that purpose or, if such money is then held by the Company in trust and is not required for such purpose, it shall be discharged from the trust. 
 If the Paying Agent holds on a Redemption Date cash sufficient to pay the Redemption Price payable on that date, then on and after such Redemption Date, such Notes (or portions thereof, as the case may
be) shall cease to be outstanding, the Accreted Principal Amount shall cease to accrete and Interest (if any) on them shall cease to accrue; provided that if such Notes are to be redeemed, notice of such redemption has been duly given
pursuant to this Supplemental Indenture or provision therefor satisfactory to the Trustee has been made. 

SECTION 11.06 Notes Redeemed in Part. 

Upon presentation and surrender of a Note that is redeemed in part, the Company shall execute and, upon receipt of a
Company Order, the Trustee shall authenticate and deliver to the Holder, without charge, new Notes of authorized denominations as requested by such Holder in aggregate Accreted Principal Amount equal to the unredeemed portion of the Note
surrendered. 
 SECTION 11.07 No Redemption of Notes Upon Occurrence of Acceleration. 

Notwithstanding anything herein to the contrary, the Company will not redeem any Notes on any date if the Accreted
Principal Amount of the Notes has been accelerated, and such acceleration has not been rescinded on or prior to the Redemption Date (except in the case of an acceleration resulting from a default by the Company in the payment of the Redemption Price
with respect to such Notes). 

  
 50 

  

SECTION 11.08 Repurchase of Notes at the Option of Holders. 

 

	 	(a)	Optional Put (i) On December 15, 2016, December 15, 2020, December 15, 2025, December 13, 2030 and December 14, 2035
(each, an “Optional Put Repurchase Date”), each Holder shall have the right, at such Holder’s option, to require the Company to repurchase all of such Holder’s Notes or any portion of the Original Principal Amount thereof
that is equal to $1,000 or an integral multiple of $1,000, for cash at a repurchase price equal to 100% of the Accreted Principal Amount thereof, together with accrued and unpaid Interest thereon to, but excluding, such Optional Put Repurchase Date
(the “Optional Put Repurchase Price”) (subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 11.08(a)(iii)), unless such Optional Put Repurchase Date falls after a Regular Record Date
and on or prior to the corresponding Interest Payment Date, in which case the Company shall pay the full amount of accrued and unpaid Interest payable on such Interest Payment Date to the Holder of record at the close of business on the
corresponding Regular Record Date. 

 (ii) No later than 20 Business Days prior to each Optional
Put Repurchase Date, the Company shall give notice of the repurchase right under Section 11.08(a)(i) (an “Optional Put Repurchase Offer”) to all record Holders at their addresses set forth in the Securities Register of the
Registrar (and to beneficial owners as required by applicable law). The notice shall include a form of notice to be completed by the Holder and returned to the Company in the event that the Holder elects to exercise such right to such repurchase
(the “Optional Put Repurchase Notice”) and shall briefly state, as applicable: 
 (A) the date
by which the Optional Put Repurchase Notice must be delivered to the Paying Agent in order for a Holder to exercise the repurchase right; 
 (B) the Optional Put Repurchase Date; 
 (C) the Optional Put
Repurchase Price; 
 (D) the name and address of the Paying Agent and the Conversion Agent; 

(E) the Conversion Rate; 
 (F) the conversion rights, if any, of the Notes; 
 (G) that the
Notes as to which an Optional Put Repurchase Notice has been given may be converted if they are otherwise convertible pursuant to Article 12 only if the Optional Put Repurchase Notice has been withdrawn in accordance with the terms of this
Supplemental Indenture; 
 (H) that the Notes must be surrendered to the Paying Agent to collect payment;

  
 51 

  
 (I)
that the Optional Put Repurchase Price for any Note as to which an Optional Put Repurchase Notice has been duly given and not withdrawn will be paid promptly following the later of the Optional Put Repurchase Date and the time of surrender of such
Note; 
 (J) the procedures the Holder must follow to exercise its put right under this Section 11.08(a);

 (K) the procedures for withdrawing an Optional Put Repurchase Notice; 

(L) that, unless the Company defaults in making payment of such Optional Put Repurchase Price, Interest on Notes
surrendered for repurchase by the Company will cease to accrue on and after the Optional Put Repurchase Date; and 
 (M) the CUSIP number(s) of the Notes. 
 At the Company’s
request, the Trustee shall give the Optional Put Repurchase Offer Notice in the Company’s name and at the Company’s expense; provided, however, that the Company makes such request at least three Business Days (unless a shorter
period shall be satisfactory to the Trustee) prior to the date by which such Optional Put Repurchase Offer Notice must be given to the Holder in accordance with this Section 11.08(a)(ii); provided, further, that the text of the Optional
Put Repurchase Offer Notice shall be prepared by the Company. 
 (iii) A Holder may exercise its right specified
in Section 11.08(a)(i) upon delivery of a properly completed Optional Put Repurchase Notice to the Paying Agent at any time during the period beginning at 9:00 a.m., New York City time, on the date that is 20 Business Days immediately preceding
the relevant Optional Put Repurchase Date until 5:00 p.m., New York City time, on the Business Day immediately preceding such Optional Put Repurchase Date, stating: 

(A) if certificated, the certificate numbers of Notes to be delivered for repurchase; 

(B) the portion of the Original Principal Amount of Notes to be repurchased, which portion must be $1,000 or an integral
multiple of $1,000 thereof; and 
 (C) that the Notes shall be repurchased by the Company pursuant to the
applicable provisions of the Notes and this Supplemental Indenture. 
 The book-entry transfer or delivery of
such Note to the Paying Agent with, or at any time after delivery of, the Optional Put Repurchase Notice (together with all necessary endorsements) at the offices of the Paying Agent shall be a condition to the receipt by the Holder of the Optional
Put Repurchase Price therefor; provided, however, that such Optional Put Repurchase Price shall be so paid pursuant to this Section 11.08(a) only if the Note so delivered to the Paying Agent shall conform in all respects to the
description thereof in the related Optional Put Repurchase Notice. 

  
 52 

  
 The
Company shall repurchase from the Holder thereof, pursuant to this Section 11.08(a), a portion of a Note, so long as the Original Principal Amount of such portion is $1,000 Original Principal Amount or an integral multiple of $1,000 Original
Principal Amount. Provisions of this Supplemental Indenture that apply to the repurchase of all of a Note also apply to the repurchase of such portion of such Note. 

The Paying Agent shall promptly notify the Company of the receipt by it of any Optional Put Repurchase Notice or written
notice of withdrawal thereof. 
 (b) Effect of Optional Put Repurchase Notice. Upon receipt by the Paying Agent of the
Optional Put Repurchase Notice specified in Section 11.08(a)(iii), the Holder of the Note in respect of which such Optional Put Repurchase Notice was given shall (unless such Optional Put Repurchase Notice is withdrawn as specified in the
following paragraph) thereafter be entitled to receive solely the Optional Put Repurchase Price with respect to such Note. Such Optional Put Repurchase Price shall be paid to such Holder, subject to receipt of cash by the Paying Agent from the
Company, on the later of (1) the Optional Put Repurchase Date with respect to such Note (provided the conditions in Section 11.08(a)(iii) have been satisfied) and (2) the time of book-entry transfer or delivery of such Note to the
Paying Agent by the Holder thereof in the manner required by Section 11.08(a)(iii). Notes in respect of which an Optional Put Repurchase Notice has been given by the Holder thereof may not be converted pursuant to Article 12 on or after the
date of the delivery of such Optional Put Repurchase Notice unless such Optional Put Repurchase Notice has first been validly withdrawn as specified in the following paragraph. 

An Optional Put Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of
the Paying Agent in accordance with the Optional Put Repurchase Notice at any time prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Optional Put Repurchase Date, specifying: 

(i) the Original Principal Amount of such Note with respect to which such notice of withdrawal is being submitted;

 (ii) if certificated Notes have been issued, the certificate numbers of the withdrawn Notes; and 

(iii) the Original Principal Amount, if any, of such Note which remains subject to the Optional Put Repurchase Notice,
which portion must be in Original Principal amounts of $1,000 or an integral multiple of $1,000. 
 provided,
however, that with respect to Global Notes, the notice must comply with the Applicable Procedures. 
 (c) Deposit of
Optional Put Repurchase Price. Prior to 1:00 p.m., New York City time, on the applicable Optional Put Repurchase Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of any of them is acting as
the Paying Agent, shall 

  
 53 

 
segregate and hold in trust as provided in Section 10.05) an amount of cash (in immediately available funds if deposited on such Business Day) sufficient to pay the aggregate Optional Put
Repurchase Price of all the Notes or portions thereof which are to be repurchased on such Optional Put Repurchase Date. 
 If the Paying Agent (other than the Company or an Affiliate of the Company) holds, in accordance with the terms hereof, at 1:00 p.m., New York City time, on the applicable Optional Put Repurchase Date,
cash sufficient to pay the Optional Put Repurchase Price of any Notes for which an Optional Put Repurchase Notice has been tendered and not withdrawn pursuant to Section 11.08(b), then, on and after such Optional Put Repurchase Date, such Notes
will cease to be outstanding, the Accreted Principal Amount shall cease to accrete and Interest, if any, on such Notes will cease to accrue, whether or not such Notes are delivered to the Paying Agent, and the rights of the Holders in respect
thereof shall terminate (other than the right to receive the Optional Put Repurchase Price upon delivery of such Notes, together with any necessary endorsement) and the repurchased Notes shall be cancelled. 

(d) Notes Repurchased in Part. Any Certificated Note which is to be repurchased only in part shall be surrendered at the office of
the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing) and the Company shall execute and upon receipt of a Company Order the Trustee shall authenticate and deliver to the Holder of such Note, without charge, new Notes, of any authorized denomination as requested by such Holder in
aggregate Accreted Principal Amount equal to, and in exchange for, the portion of the Accreted Principal Amount of the Note so surrendered which is not repurchased. 
 (e) Covenant to Comply with Securities Laws upon Repurchase of Notes. In connection with any repurchase of the Notes pursuant to this Section 11.08, the Company shall: 

(i) comply with the provisions of Rule 13e-4, Rule 14e-1 (or any successor provision) and any other tender offer rules
under the Exchange Act that may then be applicable; and 
 (ii) otherwise comply with all federal and state
securities laws. 
 To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section 11.08, the Company’s compliance with such laws and regulations shall not in and of itself cause a breach of its obligations under this Section 11.08. 

(f) Repayment to the Company. The Paying Agent shall return to the Company any cash that remains unclaimed for two years, together
with Interest, if any, thereon, held by it for the payment of the Optional Put Repurchase Price; provided, however, to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 11.08(c) exceeds the
aggregate Optional Put Repurchase Price of the Notes or portions thereof which the Company is obligated to repurchase on the Optional Put Repurchase Date, then, promptly after the Optional Put Repurchase Date, the Paying Agent shall return any such
excess to the Company. 

  
 54 

  
 (g) No Repurchase
Upon Acceleration. Notwithstanding anything herein to the contrary, there shall be no purchase of any Notes pursuant to this Section 11.08 if the Accreted Principal Amount of the Notes has been accelerated, and such acceleration has not
been rescinded, on or prior to the Optional Put Repurchase Date (except in the case of an Event of Default resulting from a default by the Company in the payment of the Optional Put Repurchase Price with respect to such Notes). 

SECTION 11.09 Right to Require Repurchase Upon a Fundamental Change. 

(a) If a Fundamental Change occurs at any time, then each Holder shall have the right, at such Holder’s option, to require the
Company to repurchase all of such Holder’s Notes or any portion of the Original Principal Amount thereof that is equal to $1,000 or an integral multiple of $1,000, for cash on the date (the “Fundamental Change Repurchase Date”)
specified by the Company that is not less than 20 calendar days and not more than 35 calendar days after the date of the Fundamental Change Repurchase Right Notice at a repurchase price equal to 100% of the Accreted Principal Amount thereof,
together with accrued and unpaid Interest thereon to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless such Fundamental Change Repurchase Date falls after a Regular Record
Date and on or prior to the corresponding Interest Payment Date, in which case the Company shall pay the full amount of accrued and unpaid Interest payable on such Interest Payment Date to the Holder of record at the close of business on the
corresponding Regular Record Date. 
 However, notwithstanding the foregoing, Holders shall not have the right to
require the Company to repurchase any Notes under this Section 11.09 based on a Fundamental Change described in clause (1) or (2) of the definition thereof (and the Company shall not be required to deliver the Fundamental Change
Repurchase Right Notice incidental thereto) if at least 90% of the consideration paid for the Common Stock (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights and cash dividends) in a
merger or consolidation or such other transaction otherwise constituting a Fundamental Change described in clause (1) or (2) of the definition thereof consists of shares of Common Stock or American Depositary Receipts in respect of shares
of Common Stock traded on any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market (or any of their respective successors) (or that will be so traded or quoted immediately following
the completion of such merger or consolidation or such other transaction) and, as a result of the completion of such merger or consolidation or such other transaction, the Notes become convertible into shares of such Common Stock or such American
Depositary Receipts pursuant to Section 12.10 (or cash or a combination of cash and shares of such Common Stock or such American Depositary Receipts pursuant to Section 12.10, if the Company so elects or has so elected). 

Repurchases of Notes under this Section 11.09 shall be made, at the option of the Holder thereof, upon: 

(i) if the Notes are held in certificated form, delivery to the Trustee (or other Paying Agent appointed by the Company)
by a Holder of a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form set forth on the reverse of the Note or, if the Notes are held in global form, a notice that complies with the Applicable Procedures,
prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date; and 

  
 55 

  
 (ii)
delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent appointed by the Company) prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date (together with all necessary
endorsements) at the Corporate Trust Office of the Trustee (or other Paying Agent appointed by the Company), such delivery being a condition to receipt by the Holder of the Fundamental Change Repurchase Price therefor; provided that such
Fundamental Change Repurchase Price shall be so paid pursuant to this Section 11.09 only if the Note so delivered to the Trustee (or other Paying Agent appointed by the Company) shall conform in all respects to the description thereof in the
related Fundamental Change Repurchase Notice. 
 The Fundamental Change Repurchase Notice shall state:

 (A) if certificated, the certificate numbers of Notes to be delivered for repurchase; 

(B) the portion of the Original Principal Amount of Notes to be repurchased, which must be $1,000 or an integral multiple
thereof; and 
 (C) that the Notes are to be repurchased by the Company pursuant to the applicable provisions of
the Notes and this Supplemental Indenture. 
 Any purchase by the Company contemplated pursuant to the provisions
of this Section 11.09 shall be consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Fundamental Change Repurchase Date and the time of the book-entry transfer or delivery of the Note.

 The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company of the receipt
by it of any Fundamental Change Repurchase Notice or written notice of withdrawal thereof in accordance with the provisions of subsection (c) of this Section 11.09. 

Any Note that is to be repurchased only in part shall be surrendered to the Trustee (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and, upon
receipt of a Company Order, the Trustee shall authenticate and make available for delivery to the Holder of such Note without service charge, a new Note or Notes, containing identical terms and conditions, each in an authorized denomination in
aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal of the Note so surrendered. 

(b) After the occurrence of a Fundamental Change, but on or before the 10th calendar day after the Effective Date of such Fundamental
Change, the Company shall provide to all Holders of record of the Notes and the Trustee and Paying Agent a notice (the “Fundamental Change Repurchase Right Notice”) on the occurrence of such Fundamental Change and of the resulting
repurchase right, if any, at the option of the Holders arising as a result thereof. 

  
 56 

  
 Each
Fundamental Change Repurchase Right Notice shall specify (if applicable): 
 (i) the events causing the
Fundamental Change; 
 (ii) the date of the Fundamental Change; 

(iii) the last date on which a Holder may exercise the repurchase right arising as a result of a Fundamental Change, if
applicable; 
 (iv) the Fundamental Change Repurchase Price, if applicable; 

(v) the Fundamental Change Repurchase Date, if applicable; 

(vi) the name and address of the Paying Agent and the Conversion Agent, if applicable; 

(vii) the applicable Conversion Rate and any adjustments to the applicable Conversion Rate; 

(viii) that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered by a Holder may be
converted only if the Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of this Supplemental Indenture; and 
 (ix) the procedures that Holders must follow to require the Company to repurchase their Notes. 
 No failure of the Company to give the foregoing notices and no defect therein shall limit the Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the Notes
pursuant to this Section 11.09. 
 (c) A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice
of withdrawal delivered to the Paying Agent in accordance with the Fundamental Change Repurchase Right Notice at any time prior to the close of business on the Business Day prior to the Fundamental Change Repurchase Date, specifying: 

(i) the Original Principal Amount of the Notes with respect to which such notice of withdrawal is being submitted;

 (ii) if certificated Notes have been issued, the certificate numbers of the withdrawn Notes; and 

(iii) the Original Principal Amount, if any, of such Note that remains subject to the original Fundamental Change
Repurchase Notice, which portion must be in Original Principal Amounts of $1,000 or an integral multiple of $1,000; 

  
 57 

  
 provided,
however, that if the Notes are not in certificated form, the notice must comply with the Applicable Procedures. 
 (d) In
connection with any repurchase of the Notes pursuant to this Section 11.09, the Company shall 
 (i) comply
with the provisions of Rule 13e-4, Rule 14e-1 (or any successor provision) and any other tender offer rules under the Exchange Act that may then be applicable; and 

(ii) otherwise comply with all applicable federal and state securities laws. 

To the extent that the provisions of any securities laws or regulations conflict with the provisions of this
Section 11.09, the Company’s compliance with such laws and regulations shall not in and of itself cause a breach of its obligations under this Section 11.09. 
 (e) On or prior to 1:00 p.m., New York City time, on the Fundamental Change Repurchase Date, the Company shall deposit with the Trustee (or other Paying Agent appointed by the Company or if the Company is
acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 10.05) an amount of money sufficient to repurchase all of the Notes to be repurchased on such date at the Fundamental Change Repurchase Price. Subject
to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by the Company) from the Company or the Holders, as applicable, payment for Notes surrendered for repurchase (and not withdrawn) prior to the close of business on the
Business Day prior to the Fundamental Change Repurchase Date shall be made promptly after the later of (x) the Fundamental Change Repurchase Date with respect to such Note (provided the Holder has satisfied the conditions to the payment
of the Fundamental Change Repurchase Price in this Section 11.09), and (y) the time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the Holder thereof in the manner
required by this Section 11.09. The Trustee shall, promptly after such payment and upon written demand by the Company, return to the Company any funds in excess of the Fundamental Change Repurchase Price. 

(f) Subject to a Holder’s right to receive Interest on the related Interest Payment Date where the Fundamental Repurchase Date falls
between a Regular Record Date and the Interest Payment Date to which it relates, if the Trustee (or other Paying Agent appointed by the Company) holds money sufficient to repurchase on the Fundamental Change Repurchase Date all the Notes or portions
thereof that are to be purchased as of the Business Day following the Fundamental Change Repurchase Date, then on and after the Fundamental Change Repurchase Date (i) such Notes shall cease to be outstanding, (ii) the Accreted Principal
Amount shall cease to accrete, (iii) Interest shall cease to accrue on such Notes, and (iv) all other rights of the Holders of such Notes shall terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been
delivered to the Trustee or Paying Agent, other than the right to receive the Fundamental Change Repurchase Price upon delivery of the Notes. 

  
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 ARTICLE 12 

CONVERSION OF NOTES 
 SECTION 12.01 Conversion Privilege and Conversion Rate. 
 (a)
Subject to the conditions described in clauses (i), (ii), (iii) and (iv) below, and upon compliance with the provisions of this Article 12, a Holder shall have the right, at such Holder’s option, to convert all or any portion (if the
portion to be converted is $1,000 in Original Principal Amount or an integral multiple thereof) of any Notes at any time prior to the close of business on the Scheduled Trading Day immediately preceding September 15, 2037, into shares of Common
Stock (or, at the election of the Company, cash or a combination of cash and shares of Common Stock as described herein) at a rate of 43.4216 shares of Common Stock (subject to adjustment by the Company as provided in Sections 12.01(e) and 12.04
hereof) per $1,000 in Original Principal Amount of the Notes (the “Conversion Rate”) under the circumstances and during the periods set forth below. On and after September 15, 2037 regardless of the conditions described in
clauses (i), (ii), (iii) and (iv) below, and upon compliance with the provisions of this Article 12, a Holder shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 in
Original Principal Amount or an integral multiple thereof) of any Notes at the applicable Conversion Rate at any time prior to the close of business on the second Scheduled Trading Day immediately preceding the Maturity Date. 

(i) The Notes shall be convertible prior to September 15, 2037, during the five Business Day period after any five
consecutive Trading Day period (as used in this Section 12.01(a)(i), the “Measurement Period”) in which the Trading Price per $1,000 in Original Principal Amount of the Notes for each Trading Day of such Measurement Period was
less than 98% of the product of the Last Reported Sale Price of the Common Stock on such Trading Day and the applicable Conversion Rate in effect on such Trading Day, as determined by the Trustee and subject to compliance with the procedures and
conditions described below concerning the Trustee’s obligation to make such determination (the “Trading Price Condition”). If a Holder provides the Company with reasonable evidence that the Trading Price per $1,000 in Original
Principal Amount of the Notes would be less than 98% of the product of (a) the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price at such time, then the Company shall instruct in writing the Trustee to
determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the date on which the Trading Price per $1,000 in Original Principal Amount of the Notes is greater than or equal to 98% of the
product of (a) the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price (as provided to the Trustee by the Company on each such date). If the Trading Price Condition has been met in accordance with the
foregoing, the Company shall so notify the Holders of the Notes and the Trustee. If, at any time after the Trading Price Condition has been met in accordance with the foregoing, the Trading Price per $1,000 in Original Principal Amount of the Notes
is greater than 98% of the product of (a) the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price on such date, the Company shall so notify the Holders of the Notes and the Trustee, and the Trustee shall have
no further obligation to determine the Trading Price of the Notes unless requested by the Company to do so again in writing pursuant to 

  
 59 

 
this Section 12.01(a)(i). Furthermore, if the Company does not, when obligated to do so pursuant to this clause (i), instruct the Trustee to determine the Trading Price of the Notes, or if
the Company so instructs the Trustee, but the Trustee does not make such determination, then the Trading Price per $1,000 in Original Principal Amount of the Notes shall be deemed to be less than 98% of the product of (a) the then-applicable
Conversion Rate of the Notes and (b) the Last Reported Sale Price on such date. 
 (ii) The Notes shall be
convertible prior to September 15, 2037, during any calendar quarter after the calendar quarter ending December 31, 2010 (and only during such calendar quarter), if the Last Reported Sale Price of the Common Stock for 20 or more Trading
Days in a period of 30 consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar quarter exceeds 130% of the applicable Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter. For each calendar quarter, the Company, or at the written request of the Company, the Conversion Agent, will determine if the Notes are convertible as the result of the satisfaction of the condition in this Section 12.01(a)(ii) in the
preceding calendar quarter and the Company will promptly notify the Holders and the Trustee if this condition was satisfied. 
 (iii) In the event the Company calls the Notes for redemption pursuant to Section 11.01, the Notes shall be convertible pursuant to subsection (f) of this Section. 

(iv) The Notes shall be convertible prior to September 15, 2037, as provided in subsections (b), (c) and
(d) of this Section 12.01. 
 (b) In the event that the Company elects to: 

(i) distribute to all or substantially all holders of Common Stock any rights or warrants entitling them, for a period of
not more than 60 calendar days after the record date for such distribution, to subscribe for or purchase Common Stock at a price per share less than the Last Reported Sale Price of the Common Stock for the Trading Day immediately preceding the
declaration date of such distribution; or 
 (ii) distribute to all or substantially all holders of Common Stock
assets (including cash) or debt securities of the Company or certain rights to purchase the Company’s securities, which distribution has a per share value (as determined by the Board of Directors) exceeding 10% of the Last Reported Sale Price
of the Common Stock on the Trading Day immediately preceding the date of declaration of such distribution, 
 the Company shall
notify Holders and the Trustee in writing with respect to any distribution referred to in either clause (i) or clause (ii) above and of the resulting conversion right no later than the 35th Scheduled Trading Day prior to the Ex-Date for
such distribution. Once the Company has given such notice, Holders may surrender the Notes for conversion at any time until the earlier of 5:00 p.m., New York City time, on the Business Day immediately preceding the Ex-Date for such distribution or
the date the Company announces that such distribution will not take place. A Holder may not exercise this right if such Holder is permitted to participate (as a result of holding the Notes, and at the same time as holders of the Common Stock
participate) 

  
 60 

 
in any distribution referred to in clause (i) or clause (ii) above as if such Holder held a number of shares of Common Stock equal to the then-applicable Conversion Rate, multiplied by
the principal amount (expressed in thousands) of Notes held by such Holder, without having to convert its Notes. 
 (c) If the
Company is a party to a combination, merger, recapitalization, reclassification, binding-share exchange or other similar transaction or sale or conveyance of all or substantially all of its properties and assets, in each case pursuant to which the
Common Stock would be converted into cash, securities and/or other property and that does not also constitute a Fundamental Change, then the Holders shall have the right to convert Notes at any time beginning on the effective date of such
transaction and ending on the 30th Scheduled Trading Day following the effective date of such transaction. The Company shall notify Holders and the Trustee in writing at least 10 Scheduled Trading Days prior to the anticipated effective date of any
such transaction. The Board of Directors shall determine the anticipated effective date of the transaction, and such determination shall be conclusive and binding on the Holders. 

(d) If the Company is a party to any transaction or event described in the definition of Fundamental Change, a Holder may surrender Notes
for conversion at any time, after the Company gives the notice referred to in the last sentence of this Section 12.01(d), from the effective date of such event until (i) the Fundamental Change Repurchase Date corresponding to such events
or (ii) if there is no such Fundamental Change Repurchase Date, 30 Scheduled Trading Days following the effective date of such transaction or event. The Company shall notify in writing, in the manner provided for in Section 1.6 of the Base
Indenture, each of the Holders and the Trustee of the Fundamental Change on or before the date such event occurs or becomes effective or, if later, within 2 Business Days after the date the Company becomes aware of such occurrence or effectiveness.

 (e) If a Holder elects to convert Notes in connection with a Make-Whole Fundamental Change, the Conversion Rate applicable to
each $1,000 in Original Principal Amount of Notes so converted shall be increased by an additional number of shares of Common Stock (the “Additional Shares”) as described below; provided, however that no increase shall
be made in the case of a transaction or event constituting a Fundamental Change described in clauses (1) or (2) of such definition where 90% or more of the consideration for the Common Stock (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters’ appraisal rights) in such transaction consists of shares of Common Stock or American Depositary Receipts in respect of shares of Common Stock traded on any of the New York Stock Exchange, the
American Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market (or any of their respective successors) (or that will be so traded or quoted immediately following the transaction) and as a result of such transaction or
transactions the Notes become convertible (to the extent otherwise convertible into shares of Common Stock) into cash and, if applicable, such shares of such Capital Stock or such American Depositary Receipts. Settlement of Notes tendered for
conversion to which Additional Shares shall be added to the Conversion Rate as provided in this subsection (e) shall be settled pursuant to Section 12.02(e). For purposes of this subsection (e), a conversion shall be deemed to be
“in connection with” such Make-Whole Fundamental Change if such conversion occurs on or after the Make-Whole Reference Date until the related Fundamental Change Repurchase Date for such Make-Whole Fundamental Change or, if there is
no such Fundamental Change Repurchase Date, 30 Scheduled Trading Days following the Make-Whole Reference Date, but in no event later than the 

  
 61 

 
second Scheduled Trading Day prior to the Maturity of the Notes. The Company will notify Holders and the Trustee in writing of the occurrence of any Make-Whole Fundamental Change applicable to
this subsection (e) on the Make-Whole Reference Date. 
 (i) The number of Additional Shares by which the
Conversion Rate will be increased in the event of a Make-Whole Fundamental Change shall be determined by the Company by reference to the table attached as Schedule A hereto, based on the Make-Whole Reference Date and the Stock Price;
provided that, for purposes of determining the number of Additional Shares, the Make-Whole Reference Date of a transaction described in clause (1) or (2) of the definition of Fundamental Change shall be deemed to be the earlier of
(x) the date on which such transaction occurs or becomes effective and (y) the date of the first public announcement of such transaction by the Company or the counterparty to the transaction; provided, that if the actual Stock Price
is between two Stock Price amounts in the table or the Make-Whole Reference Date is between two Make-Whole Reference Dates in the table, the number of Additional Shares by which the Conversion Rate will be increased shall be determined by a
straight-line interpolation between the number of Additional Shares set forth for the next higher and next lower Stock Price amounts and the two nearest Make-Whole Reference Dates, as applicable, based on a 365-day year; provided, further,
that if (1) the Stock Price is greater than $46.50 per share of Common Stock (subject to adjustment in accordance with clause (ii) below), no adjustments will be made in the Conversion Rate, and (2) the Stock Price is less than $16.50
per share (subject to adjustment in accordance with clause (ii) below), no adjustments will be made in the Conversion Rate. Notwithstanding the foregoing, in no event shall the Conversion Rate exceed 60.6061 shares per $1,000 in Original
Principal Amount of Notes (subject to adjustment in the same manner as set forth in Section 12.04). In addition, if Holders convert their Notes prior to any applicable Make-Whole Reference Date, and the related Make-Whole Fundamental Change
does not occur, Holders will not be entitled to an increased Conversion Rate in connection with such conversion. 

(ii) The Stock Prices set forth in the first row of the tables in Schedule A hereto shall be adjusted by the
Company as of any date on which the Conversion Rate of the Notes is adjusted (except pursuant to this Section 12.01(e)). The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such adjustment, multiplied by a
fraction, the numerator of which is the applicable Conversion Rate in effect immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares within the table shall be adjusted in the same manner as the Conversion Rate as set forth in Section 12.04 (other than by operation of an adjustment to the Conversion Rate by adding Additional Shares). 

(f) In the event the Company calls the Notes for redemption pursuant to Section 11.01, the Notes shall be convertible
until 5:00 p.m., New York City time, on the Business Day preceding the applicable Redemption Date (after which time the Holders’ right to convert will expire unless the Company defaults in the payment of the applicable Redemption Price).

  
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SECTION 12.02 Exercise of Conversion Privilege. 

(a) The Company shall satisfy the Conversion Obligation by delivering, as applicable: 

(i) on or before the third Business Day immediately following the Conversion Date, a number of shares of Common Stock
equal to (i) (A) the aggregate Original Principal Amount of Notes to be converted, divided by (B) 1,000 multiplied by (ii) the Conversion Rate in effect on the relevant Conversion Date; 

(ii) on the third Business Day immediately following the last day of the related Observation Period, for each $1,000 in
Original Principal Amount of Notes tendered for conversion, cash in an amount equal to the sum of the Daily Conversion Values for each of the 30 VWAP Trading Days during the related Observation Period; or 

(iii) on the third Business Day immediately following the last day of the related Observation Period, for each $1,000 in
Original Principal Amount of Notes tendered for conversion, cash and shares of Common Stock, if any, equal to the sum of the Daily Settlement Amounts for each of the 30 VWAP Trading Days during the related Observation Period, 

in each case subject, if applicable, to Section 12.02(c) and Section 12.03 hereof. The applicable settlement method for any
particular conversion of Notes (pursuant to clause (i), (ii) or (iii) above) shall be determined pursuant to Section 12.02(b). 
 (b) Prior to the 35th Scheduled Trading Day prior to the Maturity Date, the Company may elect to settle conversions in respect of the Conversion Obligation pursuant to clause (i), (ii) or
(iii) of Section 12.02(a) (or, if the Company has made the Net Share Settlement Election on or prior to the applicable Conversion Date, clause (ii) or (iii) of Section 12.02(a)) by providing notice (a “Consideration
Notice”) to the converting Holders through the Trustee (by requesting in writing that the Trustee provide the Consideration Notice) of the applicable settlement method no later than the second Business Day immediately following the related
Conversion Date or by making the Net Share Settlement Election. If the Consideration Notice designates settlement pursuant to clause (iii) of Section 12.02(a), it will state the Specified Dollar Amount. If the Company does not provide a
Consideration Notice in respect of a conversion and has not made the Net Settlement Election, conversion of the applicable Notes will be settled pursuant to clause (i) of Section 12.02(a). 

At any time prior to the 35th Scheduled Trading Day prior to the Maturity Date, the Company may deliver a one-time
Consideration Notice to the Holders designating the settlement method (clause (i), (ii) or (iii) of Section 12.02(a) or, if the Company has made the Net Share Settlement Election, clause (ii) or (iii) of
Section 12.02(a)) for all conversions that occur on or after the 35th Scheduled Trading Day prior to the Maturity Date. For conversions that occur on or after the 35th Scheduled Trading Day prior to the Maturity Date, 

(1) if the Company has not delivered the one-time Consideration Notice referred to in this Section 12.02(b) and has
not made the Net Share Settlement Election, conversion of the applicable Notes will be settled in accordance with clause (i) of Section 12.02(a); and 

  
 63 

  
 (2) if
the Company has not delivered the one-time Consideration Notice referred to in this Section 12.02(b) and has made the Net Share Settlement Election, conversion of the applicable Notes will be settled in accordance with clause (iii) of
Section 12.02(a), and the Specified Dollar Amount for all such conversions will be deemed to be the Accreted Principal Amount as of the Maturity Date. 

At any time prior to the 35th Scheduled Trading Day prior to the Maturity Date, the Company may
deliver a one-time irrevocable notice to the Holders electing to settle all conversions of the Notes from the date of such notice pursuant to either clause (ii) or (iii) of Section 12.02(a) (the “Net Share Settlement
Election”). If the Company has made the Net Share Settlement Election and elected to settle all conversions pursuant to clause (iii) above, the notice of such Net Share Settlement Election shall state the Specified Dollar Amount
applicable to all conversions of such Notes, which shall be at least the Accreted Principal Amount of such Notes as of the Conversion Date, provided that the Specified Dollar Amount applicable to all conversions of such Notes converted on or
after the 35th Scheduled Trading Day prior to the Maturity
Date shall be at least the Accreted Principal Amount of such Notes as of the Maturity Date. Upon making the Net Share Settlement Election, the Company will issue a Press Release or post such information on its website, or otherwise publicly disclose
such information, and will provide written notice to the Holders in the manner contemplated by this Supplemental Indenture, including through the facilities of the DTC. 

The Company will settle all conversions by Holders converting on the same Trading Day in the same manner. Except for all
conversions that occur on or after the 35th Scheduled Trading Day prior to the Maturity Date and, if the Company has made the Net Share Settlement Election (to the extent such election restricts the method of conversion), all conversions that occur
on or after the date of such Net Share Settlement Election, the Company will have no obligation to settle Conversion Obligations arising on different Trading Days in the same manner. 

(c) Notwithstanding any of the foregoing to the contrary, in lieu of settling the Conversion Obligation in the manner set
forth in Section 12.02(a) above, the Company may elect (the “Exchange Election”) to direct the Conversion Agent in writing to surrender, on or prior to the second Business Day following the Conversion Date, Notes tendered for
conversion to a financial institution designated by the Company (the “Financial Institution”) for exchange in lieu of conversion. In order to accept any Notes surrendered for conversion, the Financial Institution must agree to
timely deliver, in exchange for such Notes, the shares of Common Stock and/or cash which would otherwise be due upon conversion as set forth in Section 12.02(a) (the “Conversion Consideration”). If the Company makes the
Exchange Election, the Company will, by the close of business on the second Business Day following the relevant Conversion Date, notify Holders surrendering Notes for conversion that the Company has made the Exchange Election and will notify the
Financial Institution of the Conversion Consideration to be delivered pursuant to Sections 12.02(a) and (b) and the relevant deadline for delivery of the Conversion Consideration. Any Notes exchanged by the Financial Institution will remain
outstanding. If the Financial Institution agrees to accept Notes for exchange but does not timely deliver the related Conversion Consideration, or if such Financial Institution does not accept such Notes for exchange, the Company will deliver the
Conversion Consideration as if the Company had not made the Exchange Election. 

  
 64 

  
 (d)
Before any Holder of a Note shall be entitled to convert the same as set forth above, such Holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary in effect at that time and, if required, pay funds equal to
Interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in subsection (i) of this Section 12.02(a) and, if required, pay all taxes or duties, if any, in connection therewith and (2) in the
case of a Note issued in certificated form, (A) complete and manually sign and deliver an irrevocable written notice to the Conversion Agent in the form set forth under Section 2.03 (or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and shall state in writing therein the Accreted Principal Amount of Notes to be converted and the name or names (with addresses) in which such Holder wishes the certificate or certificates
for any shares of Common Stock, if any, to be delivered upon settlement of the Conversion Obligation to be registered, (B) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer
documents), at the office of the Conversion Agent, (C) if required, pay funds equal to Interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in subsection (i) of Section 12.02(a), and
(D) if required, pay all taxes or duties, if any, in connection therewith. As used herein, “Conversion Date” shall mean the date that the Holder has complied with the requirements set forth in this subsection (d). 

No Notice of Conversion with respect to any Notes may be tendered by a Holder thereof if such Holder has also tendered a
Fundamental Change Repurchase Notice and not validly withdrawn such Fundamental Change Repurchase Notice in accordance with the applicable provisions of Section 11.09. 

If more than one Note shall be surrendered for conversion at one time by the same Holder, the Conversion Obligation with
respect to such Notes, if any, that shall be payable upon conversion shall be computed on the basis of the aggregate Accreted Principal Amount of the Notes (or specified portions thereof to the extent permitted thereby) so surrendered. 

(e) Delivery of the amounts owing in satisfaction of the Conversion Obligation shall be made by the Company in no event later than the
date specified in subsection (a) of this Section 12.02, except to the extent specified in subsection (b) of this Section 12.02. The Company shall make such delivery by issuing, or causing to be issued, and delivering to such
Holder, or such Holder’s nominee or nominees, certificates or a book-entry transfer through the Depositary for the number of full shares of Common Stock to which such Holder shall be entitled as part of such Conversion Obligation (together with
any cash in lieu of fractional shares). 
 (f) In case any Note shall be surrendered for partial conversion, the Company shall
execute and the Trustee shall, as provided in a Company Order, authenticate and deliver to or upon the written order of the Holder of the Note so surrendered, without charge to such Holder, a new Note or Notes in authorized denominations in an
aggregate Accreted Principal Amount equal to the unconverted portion of the surrendered Notes. 
 (g) If a Holder submits a Note
for conversion, the Company shall pay all documentary, stamp or similar issue or transfer tax due, if any, which may be imposed by the United States or any political subdivision thereof or taxing authority thereof or therein with respect to the
issuance of shares of Common Stock, if any, upon the conversion. However, the Holder shall pay any such tax which is 

  
 65 

 
due because the Holder requests any shares of Common Stock to be issued in a name other than the Holder’s name. The Company may refuse to deliver the certificates representing the shares of
Common Stock being issued in a name other than the Holder’s name until the Company receives a sum sufficient to pay any tax which will be due because the shares are to be issued in a name other than the Holder’s name. Nothing herein shall
preclude any tax withholding required by law or regulations. 
 (h) Except as provided in Section 12.04, no adjustment
shall be made for dividends on any shares issued upon the conversion of any Note as provided in this Article 12. 
 (i) Upon the
conversion of an interest in a Global Note, the Trustee, or the Custodian at the direction of the Trustee, shall make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the
Trustee in writing of any conversion of Notes effected through any Conversion Agent other than the Trustee. 

(j) Upon conversion, a Holder shall not receive any separate cash payment for accrued and unpaid Interest except as set
forth below. The Company’s settlement of the Conversion Obligation as described above shall be deemed to satisfy its obligation to pay the principal amount of the Notes and accrued and unpaid Interest to, but not including, the Conversion Date.
As a result, accrued and unpaid Interest on the Notes to, but not including, the Conversion Date shall be deemed to be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the preceding sentence, if Notes are converted
after 5:00 p.m., New York City time, on a Regular Record Date, Holders of such Notes as of 5:00 p.m., New York City time, on such Regular Record Date shall receive the Interest payable on such Notes on the corresponding Interest Payment Date
notwithstanding the conversion. Notes surrendered for conversion during the period from 5:00 p.m., New York City time, on any Regular Record Date to 9:00 a.m., New York City time, on the corresponding Interest Payment Date must be accompanied by
payment of an amount in cash equal to the Interest payable, on such Interest Payment Date, on the Notes so converted; provided, however, that no such payment need be made (i) if the Company has specified a Fundamental Change
Repurchase Date that is after a Regular Record Date and on or prior to the corresponding Interest Payment Date; or (ii) to the extent of any overdue Interest remains unpaid at the time of conversion with respect to such Note. Except as
described above, no payment or adjustment shall be made for accrued Interest on converted Notes. The Company shall not be required to convert any Notes that are surrendered for conversion without payment of Interest as required by this
Section 12.02(j). The Conversion Rate will not be adjusted for accrued and unpaid Interest or accreted principal in excess of the $1,000 Original Principal Amount of the Notes. 

SECTION 12.03 Fractions of Shares. 

No fractional shares of Common Stock shall be issued upon conversion of any Note or Notes. If more than one Note shall be
surrendered for conversion at one time by the same Holder, the number of full shares which shall be issuable upon conversion thereof shall be computed on the basis of the aggregate Accreted Principal Amount of the Notes (or specified portions
thereof) so surrendered. Instead of any fractional share of Common Stock that would otherwise be issuable upon conversion of any Note or Notes (or specified portions thereof), the Company shall calculate and pay a cash adjustment in respect of such
fraction (calculated to the 

  
 66 

 
nearest 1/100th of a share) based on the Daily VWAP on (x) the last VWAP Trading Day of the applicable Observation Period in the case of conversions following any Net Share Settlement
Election or conversions settled in accordance with clause (iii) of Section 12.02(a) above and (y) the Conversion Date (or, if the Conversion Date is not a Trading Day, the next following Trading Day) if the Company elects to settle in
accordance with clause (i) of Section 12.02(a) above. 
 SECTION 12.04 Adjustment of Conversion
Rate. 
 The Conversion Rate shall be adjusted from time to time by the Company as follows; provided
that the Company shall not make any adjustments to the Conversion Rate if Holders of the Notes participate (as a result of holding the Notes, and at the same time as holders of the Common Stock participate) in any of the transactions described below
as if such Holders held a number of shares of Common Stock equal to the applicable Conversion Rate, multiplied by the Original Principal Amount (expressed in thousands) of Notes held by such Holders, without having to convert their Notes:

 (a) In case the Company shall issue shares of Common Stock as a dividend or distribution on shares of Common Stock, or shall
effect a share split or share combination, the Conversion Rate shall be adjusted based on the following formula: 
  

							
		 	CR’ = CR0 ×	  	 OS’
	  	
	 	  	OS0	  	

 where, 
 CR0 = the
Conversion Rate in effect immediately prior to the close of business on the Ex-Date for such dividend or distribution or the effective date of such share split or combination, as the case may be; 

CR’ = the Conversion Rate in effect immediately after the close of business on the Ex-Date for such dividend or distribution or the
effective date of such share split or combination, as the case may be; 
 OS0 = the number of shares of Common Stock outstanding immediately prior to
the Ex-Date for such dividend or distribution or the effective date of such share split or combination, as the case may be; and 

OS’ = the number of shares of Common Stock that will be outstanding as of the Ex-Date for such dividend or distribution and
immediately after giving effect to such dividend or distribution or immediately after the effective date of such share split or combination, as the case may be. 
 Such adjustment shall become effective immediately after the close of business on the Ex-Date fixed for such dividend or distribution, or the effective date for such share split or share combination. If
any dividend or distribution of the type described in this Section 12.04(a) is declared but not so paid or made, or the outstanding shares of Common Stock are not split or combined, as the case may be, the Conversion Rate shall be immediately
readjusted, effective as 

  
 67 

 
of the date the Board of Directors determines not to pay such dividend or distribution, or split or combine the outstanding shares of Common Stock, as the case may be, to the Conversion Rate that
would then be in effect if such dividend, distribution, share split or share combination had not been declared. 
 (b) In case
the Company shall distribute to all or substantially all holders of its outstanding shares of Common Stock any rights or warrants entitling them for a period expiring not more than 60 calendar days after the Ex-Date of such distribution to subscribe
for or purchase shares of Common Stock at a price per share less than the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the declaration date of such distribution, the Conversion Rate shall be adjusted based on
the following formula; provided that the Conversion Rate will be readjusted to the extent that such rights or warrants are not exercised prior to their expiration: 

 

							
		 	CR’ = CR0 ×	  	 (OS0 + X)
	  	
	 	  	(OS0 + Y)	  	

 where, 
 CR0 = the
Conversion Rate in effect immediately prior to the close of business on the Ex-Date for such distribution; 
 CR’ = the
Conversion Rate in effect immediately after the close of business on the Ex-Date for such distribution; 

OS0 = the number of shares of Common Stock outstanding immediately prior to the Ex-Date for such distribution; 

X = the total number of shares of Common Stock issuable pursuant to such rights or warrants; and 

Y = the number of shares of Common Stock equal to the aggregate price payable to exercise such rights or warrants divided by the average
of the Daily VWAP of Common Stock over the 10 consecutive VWAP Trading Day period ending on the VWAP Trading Day immediately preceding the Ex-Date for such distribution. 

Such adjustment shall be successively made whenever any such rights or warrants are distributed and shall become effective
immediately after the close of business on the Ex-Date for such distribution. The Company shall not issue any such rights or warrants in respect of shares of the Common Stock held in treasury by the Company. To the extent that shares of the Common
Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on
the basis of delivery of only the number of shares of Common Stock actually delivered. If such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such Ex-Date
for such distribution had not been fixed. 

  
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 In
determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of
Directors. 
 (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially all holders of its
Common Stock shares of any class of Capital Stock of the Company, evidences of its Indebtedness or other assets or property of the Company (excluding (i) dividends and distributions covered by subsections (a), (b) or (d) of this
Section 12.04 and distributions described below in this subsection (c) with respect to Spin-Offs) (any of such shares of Capital Stock, Indebtedness, or other asset or property hereinafter in this subsection (c) called the
“Distributed Property”), then, in each such case the Conversion Rate shall be adjusted based on the following formula: 
  

							
		 	CR’ = CR0 ×	  	 SP0
	  	
	 	  	SP0 – FMV	  	

 where, 
 CR0 = the
Conversion Rate in effect immediately prior to the close of business on the Ex-Date for such distribution; 
 CR’ = the
Conversion Rate in effect immediately after the close of business on the Ex-Date for such distribution; 

SP0 = the average of the Daily VWAP of Common Stock over the ten (10) consecutive VWAP Trading Day period ending on the
VWAP Trading Day immediately preceding the Ex-Date for such distribution; and 
 FMV = the fair market value as determined by the
Board of Directors or a committee thereof of the Distributed Property with respect to each outstanding share of Common Stock on the Ex-Date for such distribution. 

Such adjustment shall become effective immediately after the close of business on the Ex-Date for such
distribution; provided that if “FMV” as set forth above is equal to or greater than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder has the right to receive, for each $1,000 in principal amount of Notes, the amount of
Distributed Property such Holder would have received had such Holder owned a number of shares of Common Stock equal to the Conversion Rate on the Ex-Date for such distribution, without being required to convert the Notes. If such distribution is not
so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. If the Board of Directors determines “FMV” for purposes of this
Section 12.04(c) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market over the same period used in computing the Last Reported Sale Prices of the Common Stock over
the ten consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Date for such distribution. 

  
 69 

  
 With
respect to an adjustment pursuant to this subsection (c) where there has been a payment of a dividend or other distribution on the Common Stock, in shares of Capital Stock of any class or series, or similar equity interest, of or relating to a
Subsidiary or other business unit (a “Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the 10th Trading Day immediately following, and including, the effective date of the Spin-Off shall
be increased based on the following formula: 
  

							
		 	CR’ = CR0 ×	  	 FMV0 + MP0
	  	
	 	  	MP0	  	

 where, 
 CR0 = the
Conversion Rate in effect immediately prior to the close of business on the 10th Trading Day immediately following the effective date of the Spin-Off; 
 CR’ = the Conversion Rate in effect immediately after the close of business on the 10th Trading Day immediately following the effective date of the Spin-Off; 

FMV0 = the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of
Common Stock applicable to one share of Common Stock over the first 10 consecutive VWAP Trading Day period immediately following, and including, the effective date of the Spin-Off; and 

MP0 = the average of the Daily VWAP of Common Stock over the first 10 consecutive VWAP Trading Day period immediately
following, and including, the effective date of the Spin-Off. 
 Such adjustment to the Conversion Rate under
this subsection (c) shall occur on the 10th Trading Day from, and including, the effective date of the Spin-Off; provided that for any conversion within the 10 Trading Days immediately following, and including, the effective date of any
Spin-Off, the Conversion Rate shall be adjusted based on the number of Trading Days between the effective date of such Spin-Off and the Conversion Date. 
 Rights or warrants distributed by the Company to all holders of Common Stock, entitling the holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including Common Stock
(either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock;
(ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this Section 12.04 (and no adjustment to the Conversion Rate under this
Section 12.04 shall be required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be
made under this subsection (c). If any such rights or warrants are subject to events, upon the occurrence of which such rights or warrants become exercisable to 

  
 70 

 
purchase different securities, evidences of Indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date
with respect to new rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of
rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 12.04 was made, (1) in the case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such
rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 
 For purposes of this subsection (c) and subsections (a) and (b) of this Section 12.04, any dividend or distribution to which this subsection (c) is applicable that also includes
shares of Common Stock to which subsection (a) of this Section 12.04 applies or rights or warrants to subscribe for or purchase shares of Common Stock to which subsection (a) or (b) of this Section 12.04 applies (or both),
shall be deemed instead to be (1) a dividend or distribution of the evidences of Indebtedness, assets or shares of Capital Stock other than such shares of Common Stock or rights or warrants to which this subsection (c) applies (and any
Conversion Rate adjustment required by this subsection (c) with respect to such dividend or distribution shall then be made), immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants
(and any further Conversion Rate adjustment required by subsections (a) and (b) of this Section 12.04 with respect to such dividend or distribution shall then be made), except (A) the Ex-Date of such dividend or distribution
shall under this subsection (c) be substituted as the “Ex-Date” within the meaning of subsection (a) and subsection (b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed
“outstanding immediately prior to the Ex-Date for such dividend or distribution or immediately prior to the effective date of such share split or combination, as the case may be” within the meaning of subsection (a) or
“outstanding immediately prior to the Ex-Date for such distribution” within the meaning of subsection (b). 
 (d) In
case the Company shall pay any cash dividends or distributions to all or substantially all holders of its Common Stock, the Conversion Rate shall be adjusted based on the following formula: 

 

							
		 	CR’ = CR0 ×	  	 SP0
	  	
	 	  	SP0 - C	  	

  
 71 

  
 where, 

CR0 = the Conversion Rate in effect immediately prior to the close of business on the Ex-Date for such distribution;

 CR’ = the Conversion Rate in effect immediately after the close of business on the Ex-Date for such distribution;

 SP0 = the average of the Daily VWAP of Common Stock for the 10 consecutive VWAP Trading Day period immediately preceding the
Ex-Date for such distribution; and 
 C = the amount in cash per share the Company distributes to holders of Common Stock in such
distribution. 
 Such adjustment shall become effective immediately after the close of
business on the Ex-Date for such dividend or distribution; provided that if the portion of the cash so distributed applicable to one share of the Common Stock is equal to or greater than SP0 as set forth above, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall receive on the date on which such cash dividend is distributed to holders of Common Stock, for each $1,000 in principal amount of Notes, the amount of cash such Holder would have received had such
Holder owned a number of shares equal to the Conversion Rate on the Ex-Date for such distribution, without being required to convert the Notes. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 

For the avoidance of doubt, for purposes of this subsection (d), in the event of any reclassification of the Common Stock,
as a result of which the Notes become convertible into more than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to this subsection (d), references in this subsection (d) to one share of Common Stock or
Daily VWAP of one share of Common Stock shall be deemed to refer to a unit or to the price of a unit consisting of the number of shares of each class of Common Stock into which the Notes are then convertible equal to the numbers of shares of such
class issued in respect of one share of Common Stock in such reclassification. The above provisions of this paragraph shall similarly apply to successive reclassifications. 
 (e) In case the Company or any of its Subsidiaries make a payment in respect of a tender offer or exchange offer for all or any portion of the Common Stock, to the extent that the cash and value of any
other consideration included in the payment per share of Common Stock exceeds the Daily VWAP of the Common Stock on the VWAP Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange
offer, the Conversion Rate shall be increased based on the following formula: 
  

			
	 CR’ = CR0 ×
	  	    AC + (SP’ × OS’)    
	  	          OS0 × SP’

 where, 
 CR0 = the Conversion Rate in effect on the date such tender or exchange
offer expires; 

  
 72 

  
 CR’ = the
Conversion Rate in effect on the day next succeeding the date such tender or exchange offer expires; 
 AC = the aggregate value
of all cash and any other consideration as determined by the Board of Directors or a committee thereof paid or payable for shares purchased in such tender or exchange offer; 

OS0 = the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires;

 OS’ = the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires
(after giving effect to such tender offer or exchange offer); and 
 SP’ = the Last Reported Sale Price of Common Stock on
the Trading Day next succeeding the date such tender or exchange offer expires. 
 Such adjustment shall become
effective immediately after close of business on the Trading Day next succeeding the date such tender or exchange offer expires. If the Company or its Subsidiary is obligated to purchase shares of Common Stock pursuant to any such tender or exchange
offer, but the Company or its Subsidiary is permanently prevented by applicable law from effecting all or any such purchases or all or any portion of such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made or had only been made in respect of the purchases that had been effected. 
 If the application of any of the foregoing formulas (other than in respect of a share combination) would result in a decrease in the Conversion Rate, no adjustment to the Conversion Rate will be made.

 For purposes of this Section 12.04 the term “record date” shall mean, with respect to
any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted
into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or
otherwise). 
 (f) (i)In addition to those increases required by subsections (a), (b), (c), (d) and (e) of this
Section 12.04, and to the extent permitted by applicable law and the rules of the NASDAQ Global Select Market or any other securities exchange on which the Common Stock is then listed, the Company from time to time may increase the Conversion
Rate by any amount for a period of at least 20 Business Days if the Board of Directors determines that such increase would be in the Company’s best interest. If the Company makes such determination, it will be conclusive and the Company will
notify the Holders of the Notes and the Trustee of the increased Conversion Rate and the period during which it will be in effect at least 15 calendar days prior to the date the increased Conversion Rate takes effect, in accordance with applicable
law. The Company may also, but is not required to, 

  
 73 

 
increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock in connection with a dividend or distribution of shares or rights to
acquire shares or similar event. The Company shall not increase the Conversion Rate pursuant to this Section 12.04(f)(i), if such increase would cause the Company to be in violation of Rule 5635 of the NASDAQ Stock Market or any successor
provision thereto, with respect to requirements of obtaining shareholder approval prior to the issuance of securities. 
 (ii) If the Company has in effect a rights plan upon a conversion of the Notes into Common Stock and the rights have not separated from the Common Stock, Holders will receive, upon a conversion of the
Notes in respect of which the Company is required to deliver shares of Common Stock, in addition to such shares of Common Stock, rights under the Company’s rights plan. If prior to any conversion, the rights have separated from the Common
Stock, the Conversion Rate will be adjusted at the time of separation as if the Company had distributed to all holders of Common Stock, capital stock, evidences of indebtedness or other assets or property pursuant to Section 12.02(d) hereof,
subject to readjustment upon the subsequent expiration, termination or redemption of such rights. If the Company’s rights plan existing at the date of this Supplemental Indenture is terminated, no adjustment in the Conversion Rate will be
required upon issuance of rights under any replacement plan. 
 (g) Except as described in this Section 12.04 or in
Section 12.01(e), the Company will not adjust the Conversion Rate. Without limiting the foregoing, no adjustment to the Conversion Rate need be made: 
 (i) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on securities of the Company and the investment
of additional optional amounts in shares of Common Stock under any plan; 
 (ii) upon the issuance of any shares
of Common Stock or options or rights to purchase or acquire those shares of Common Stock pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries; 

(iii) upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable
or convertible security not described in clause (ii) above and outstanding as of the date of this Supplemental Indenture; 
 (iv) for a change in the par value of the Common Stock; 
 (v) for
accrued and unpaid Interest; 
 (vi) for accreted principal in excess of the $1,000 Original Principal Amount of
the Notes; or 
 (vii) as a result of a tender offer solely to holders of fewer than 100 shares of the Common
Stock. 

  
 74 

  
 (h) All calculations
and other determinations under this Article 12 shall be made by the Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a share, as the case may be. No adjustment shall be made to the Conversion Rate
unless such adjustment would require a change of at least 1% in the Conversion Rate then in effect at such time. The Company shall carry forward any adjustments that are less than 1% of the Conversion Rate and make such carried forward adjustments,
regardless of whether the aggregate adjustment is less than 1%, to any Notes that are converted upon such conversion. 
 (i) In
any case in which this Section 12.04 provides that an adjustment shall become effective immediately after (1) the Ex-Date for an event or (2) the last date on which tenders or exchanges may be made pursuant to any tender or exchange
offer pursuant to subsection (e) of this Section 12.04 (each an “Adjustment Determination Date”), the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined)
(x) issuing to the Holder of any Note converted after such Adjustment Determination Date and before the occurrence of such Adjustment Event, the additional cash and, if applicable, shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over and above the amounts deliverable upon such conversion before giving effect to such adjustment and (y) paying to such Holder any amount in cash in lieu of any
fraction pursuant to Section 12.03. For purposes of this subsection (i), the term “Adjustment Event” shall mean: 
 (i) in any case referred to in clause (1) hereof, the date any dividend or distribution of Common Stock, shares of Capital Stock, evidences of Indebtedness, other assets or property or cash is paid
or made, the effective date of any share split or combination or the date of expiration of any rights or warrants; and 
 (ii) in any case referred to in clause (2) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange offer is consummated and becomes irrevocable. 

(j) For purposes of this Section 12.04, the number of shares of Common Stock at any time outstanding shall not include shares held
in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. 
 (k) For the avoidance of doubt, if a Holder converts Notes prior to the effective date of a Fundamental Change, and the Fundamental Change does not occur, the Holder shall not be entitled to Additional
Shares in connection with such conversion. 
 (l) With respect to a conversion of Notes pursuant to this Article 12, on the date
the Shares issuable upon conversion of the Notes are delivered to the converting Holder pursuant to Section 12.02(a) (the “Delivery Date”), the Person in whose name any certificate representing any shares of Common Stock
issuable upon such conversion is registered shall be treated as a stockholder of record of the Company on such Delivery Date. On and after the Delivery Date with respect to a conversion of Notes pursuant hereto, all rights of the Holders of such
Notes shall terminate. A Holder of a Note is not entitled, as such, to any rights of a holder of Common Stock unless and until such Holder converts such Note and receives shares of Common Stock in respect of such conversion on the Delivery Date with
respect to such conversion. 

  
 75 

  
 (m) Whenever any
provision of this Article 12 requires a calculation of Last Reported Sale Prices over a span of multiple days, the Company shall make appropriate adjustments to account for any adjustment to the Conversion Rate that becomes effective, or any event
requiring an adjustment to the Conversion Rate where the Ex-Date of the event occurs, at any time during the period from which such calculation is to be calculated; provided that such adjustments shall only be made to the Conversion Rate
relating to days prior to the date that the adjustment to the Conversion Rate becomes effective. 
 (n) If the effective date of
any adjustment event described in this Section 12.04 occurs during an Observation Period for any Notes, the Company shall make proportional adjustments to the number of Deliverable Shares (in the same manner as the Conversion Rate) for each
VWAP Trading Day during the portion of the Observation Period preceding the effective date of such adjustment event. 

SECTION 12.05 Notice of Adjustments of Conversion Rate. 

Whenever the Conversion Rate is adjusted as herein provided: 
 (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 12.04 and shall prepare a certificate signed by the Chief Financial Officer of the Company setting forth the
adjusted Conversion Rate and showing in reasonable detail the facts upon which such adjustment is based, and such certificate shall promptly be filed with the Trustee and with each Conversion Agent (if other than the Trustee); and 

(b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and setting forth the adjusted Conversion Rate
shall be required, such notice shall be provided by the Company to all Holders in accordance with Section 1.6 of the Base Indenture. 
 Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such certificate or the information and calculations contained therein, except to exhibit the
same to any Holder desiring inspection thereof at its office during normal business hours or in such other manner of inspection as the Trustee deems practicable. 
 SECTION 12.06 Company to Reserve Common Stock. 

The Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued
Common Stock, for the purpose of effecting the conversion of Notes, the full number of shares of Common Stock then issuable upon the conversion of all Outstanding Notes. 
 SECTION 12.07 Taxes on Conversions. 
 Except as
provided in the next sentence, the Company shall pay all documentary, stamp or similar issue or transfer tax due that may be payable in respect of the issue or delivery of shares of Common Stock on conversion of Notes pursuant hereto. The Company
shall not, however, be required, and the Holder shall instead be required, to pay any tax or duty that may be payable in respect of (i) income of the Holder, or (ii) any transfer involved in the issue and

  
 76 

 
delivery of shares of Common Stock in a name other than that of the Holder of the Note or Notes to be converted, and no such issue or delivery shall be made unless and until the Person requesting
such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been paid. 
 SECTION 12.08 Certain Covenants. 
 Before taking
any action which would cause an adjustment reducing the Conversion Rate below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Company shall take all corporate action, if any, which it reasonably
determines may be necessary in order that the Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 
 The Company covenants that all shares of Common Stock issued upon conversion of Notes shall be fully paid and non-assessable by the Company and free from all liens created by the Company. 

SECTION 12.09 Cancellation of Converted Notes. 

All Notes delivered for conversion shall be delivered to the Trustee or its agent and canceled by the Trustee as provided
in Section 3.11. 
 SECTION 12.10 Provision in Case of Effect of Reclassification, Consolidation, Merger or
Sale. 
 If there shall occur (i) any Fundamental Change described in clause (2) of the definition
of Fundamental Change, (ii) any reclassification or change of the outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a split, subdivision
or combination), (iii) any consolidation, binding share exchange, recapitalization, reclassification, merger, combination or other similar event, or (iv) any sale or conveyance of all or substantially all of the property and assets of the
Company to any other Person, in any case as a result of which holders of Common Stock shall be entitled to receive cash, securities or other property or assets with respect to or in exchange for their shares of Common Stock (any such event described
in clauses (i) through (iv) a “Merger Event”), then: 
 (a) the Company or the successor or
purchasing Person, as the case may be, shall execute with the Trustee (subject to the Trustee’s rights as provided herein) a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture if such supplemental indenture is then required to so comply) permitted under Section 8.01(f) providing for the conversion and settlement of the Notes as set forth in this Supplemental Indenture. Such supplemental
indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 12 and the Trustee may conclusively rely on the determination by the Company of the equivalency of such
adjustments. If, in the case of any Merger Event, the Reference Property includes shares of stock or other securities and assets of a company other than the successor or purchasing company, as the case may be, in such change of control,
consolidation, binding share exchange, recapitalization, reclassification, merger, 

  
 77 

 
combination, sale or conveyance or Fundamental Change described in clause (2) of the definition of Fundamental Change, then such supplemental indenture shall also be executed by such other
company and shall contain such additional provisions to protect the interests of the Holders of the Notes as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent required by the Board of
Directors and practicable the provisions providing for the repurchase rights set forth in Article 11. 
 In the
event a supplemental indenture is executed pursuant to this Section 12.10, the Company shall promptly file with the Trustee an Officers’ Certificate (and the documents and information provided for in Section 9.3 of the Base Indenture)
briefly stating the reasons therefore, the kind or amount of cash, securities, property or assets that will constitute the Reference Property after any such Merger Event, any adjustment to be made with respect thereto and that all conditions
precedent have been complied with, and shall promptly mail notice thereof to all Holders, and the Trustee shall be protected in relying on such Officers’ Certificate; it being understood that the Trustee shall have no responsibility to
determine the correctness of any provisions contained in any supplemental indenture executed pursuant to this Section 12.10. 
 If any securities to be provided for the purpose of conversion of Notes hereunder require registration with or approval of any governmental authority under any federal or state law before such securities
may be validly issued upon conversion, each supplemental indenture executed pursuant to this Section 12.10 shall provide that the Company or the successor or the purchasing Person, as the case may be, or if the Reference Property includes
shares of stock or other securities and assets of a company other than the successor or purchasing company, as the case may be, then such company, shall use all commercially reasonable efforts, to the extent then permitted by the rules and
interpretations of the Commission (or any successor thereto), to secure such registration or approval in connection with the conversion of Notes. 
 Notwithstanding the provisions of Section 12.02 and Section 12.03, and subject to the provisions of Section 12.01, at the effective time of such Merger Event, the right to convert each
$1,000 in principal amount of Notes shall be changed to a right to convert such Notes by reference to the kind and amount of cash, securities, or other property that a holder of a number of shares of Common Stock equal to the Conversion Rate
immediately prior to such transaction would have owned or been entitled to receive (the “Reference Property”) such that from and after the effective time of such transaction, a Holder shall be entitled thereafter to convert its
Notes into the same type (and in the same proportion) of Reference Property, subject to the Company’s right to elect to settle conversions, in whole or in part, in shares of Common Stock, cash or a combination of cash and shares of Common
Stock, provided that if the Company makes the Net Share Settlement Election, upon conversion, Holders will receive Reference Property as follows: (x) either (i) all cash or (ii) cash up to the Specified Dollar Amount, and
(y) in lieu of the shares of Common Stock otherwise deliverable, Reference Property. The amount of consideration, and, consequently, Reference Property, Holders receive upon conversion will be based on the Daily Conversion Values of Reference
Property and the applicable Conversion Rate, as described in Section 12.02. For purposes of determining the constitution of Reference Property, the type and amount of consideration that a holder of Common Stock would have been entitled to in
the case of any Merger Event that causes the Common Stock to be converted into the right to receive more than a single type of consideration determined, based in part upon any 

  
 78 

 
form of stockholder election, such consideration will be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively
make such an election, or (ii) if no holders of Common Stock affirmatively make such an election, the types and amount of consideration actually received by such holders. The Company shall not become a party to any such transaction unless its
terms are consistent with the preceding. None of the foregoing provisions shall affect the right of a Holder to convert its Notes in accordance with the provisions of this Article 12 prior to the effective date. 

(b) The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at his address appearing
on the Securities Register provided for in this Supplemental Indenture, within 20 calendar days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 

(c) The above provisions of this Section 12.10 shall similarly apply to successive Merger Events. 

SECTION 12.11 Company Responsible for Making Calculations. 

Except as otherwise provided herein, the Company will be responsible for making all calculations required under the Notes
and this Supplemental Indenture. The Company will make these calculations in good faith and absent manifest error, these calculations will be final and binding on the Holders. The Company will provide a schedule of such calculations to each of the
Trustee and the Conversion Agent, and each of the Trustee and the Conversion Agent is entitled to conclusively rely upon the accuracy of such calculations without independent verification. The Trustee will forward the Company’s calculations to
any Holder upon the written request of such Holder. 
 SECTION 12.12 Responsibility of Trustee for Conversion
Provisions. 
 The Trustee and any Conversion Agent shall not at any time be under any duty or responsibility
to any Holder to determine whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to the nature or extent of any such adjustment when made, or with respect to the method employed, herein or in any
supplemental indenture provided to be employed, in making the same, or whether a supplemental indenture need be entered into. Neither the Trustee nor any Conversion Agent shall be accountable with respect to the validity or value (or the kind or
amount) of any Common Stock, or of any other securities or property or cash, which may at any time be issued or delivered upon the conversion of any Notes; and it or they do not make any representation with respect thereto. Neither the Trustee nor
any Conversion Agent shall be responsible for any failure of the Company to make or calculate any cash payment or to issue, transfer or deliver any shares of Common Stock or share certificates or other securities or property or cash upon the
surrender of any Note for the purpose of conversion; and the Trustee and any Conversion Agent shall not be responsible for any failure of the Company to comply with any of the covenants of the Company contained in this Article 12. 

 
  

  
 79 

  
 This
instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

  
 80 

  
 IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed all as of the day and year first above written. 
  

			
	HOLOGIC, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	 WILMINGTON TRUST COMPANY,
 as Trustee

		
	By:	 	  

		 	Name:
		 	Title:

  
 81 

  
 SCHEDULE A

 The following table sets forth the hypothetical “Stock Price,” “Make-Whole Reference Date” and the
adjustments to the Conversion Rate, expressed as a number of Additional Shares by which the Conversion Rate shall be increased in the event of a Fundamental Change (other than events described in clauses (3) and (5) of the definition of a
Fundamental Change), in accordance with the Supplemental Indenture: 
  

																																																					
	  	  	Stock Price	 
	 Make-Whole
 Reference Date
	  	$16.50	 	  	$19.00	 	  	$21.50	 	  	$24.00	 	  	$26.50	 	  	$29.00	 	  	$31.50	 	  	$34.00	 	  	$36.50	 	  	$39.00	 	  	$41.50	 	  	$44.00	 	  	$46.50	 
														
	 November 23, 2010
	  	 	16.3663	 	  	 	12.5995	 	  	 	9.9598	 	  	 	8.0492	 	  	 	6.6312	 	  	 	5.5474	 	  	 	4.7054	 	  	 	4.0372	 	  	 	3.4989	 	  	 	3.0605	 	  	 	2.6989	 	  	 	2.3966	 	  	 	2.1719	 
														
	 Decmber 15, 2011
	  	 	16.4892	 	  	 	12.0901	 	  	 	8.9274	 	  	 	6.8396	 	  	 	5.6347	 	  	 	4.7137	 	  	 	3.9983	 	  	 	3.4305	 	  	 	2.9731	 	  	 	2.6005	 	  	 	2.2933	 	  	 	2.0364	 	  	 	1.8456	 
														
	 Decmber 15, 2012
	  	 	16.6051	 	  	 	11.6101	 	  	 	7.9545	 	  	 	5.6997	 	  	 	4.6956	 	  	 	3.9281	 	  	 	3.3319	 	  	 	2.8588	 	  	 	2.4776	 	  	 	2.1671	 	  	 	1.9111	 	  	 	1.6970	 	  	 	1.5380	 
														
	 Decmber 15, 2013
	  	 	16.7210	 	  	 	11.1301	 	  	 	6.9816	 	  	 	4.5598	 	  	 	3.7565	 	  	 	3.1425	 	  	 	2.6655	 	  	 	2.2870	 	  	 	1.9821	 	  	 	1.7337	 	  	 	1.5289	 	  	 	1.3576	 	  	 	1.2304	 
														
	 Decmber 15, 2014
	  	 	16.8368	 	  	 	10.6500	 	  	 	6.0087	 	  	 	3.4198	 	  	 	2.8174	 	  	 	2.3569	 	  	 	1.9991	 	  	 	1.7153	 	  	 	1.4866	 	  	 	1.3003	 	  	 	1.1467	 	  	 	1.0182	 	  	 	0.9228	 
														
	 Decmber 15, 2015
	  	 	16.9527	 	  	 	10.1700	 	  	 	5.0358	 	  	 	2.2799	 	  	 	1.8782	 	  	 	1.5712	 	  	 	1.3328	 	  	 	1.1435	 	  	 	0.9910	 	  	 	0.8668	 	  	 	0.7644	 	  	 	0.6788	 	  	 	0.6152	 
														
	 Decmber 15, 2016
	  	 	17.1845	 	  	 	9.2100	 	  	 	3.0900	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 	  	 	0.0000	 

  
 SCHEDULE B

 The following table sets forth the Accreted Principal Amounts as of the specified dates during the period
from December 15, 2016 through the Maturity Date. 
  

					
	 Date
	  	Accreted Principal Amount	 
		
	 December 15, 2016
	  	$	1,000.00	  
	 June 15, 2017
	  	$	1,010.00	  
	 December 15, 2017
	  	$	1,020.10	  
	 June 15, 2018
	  	$	1,030.30	  
	 December 15, 2018
	  	$	1,040.60	  
	 June 15, 2019
	  	$	1,051.01	  
	 December 15, 2019
	  	$	1,061.52	  
	 June 15, 2020
	  	$	1,072.14	  
	 December 15, 2020
	  	$	1,082.86	  
	 June 15, 2021
	  	$	1,093.69	  
	 December 15, 2021
	  	$	1,104.62	  
	 June 15, 2022
	  	$	1,115.67	  
	 December 15, 2022
	  	$	1,126.83	  
	 June 15, 2023
	  	$	1,138.09	  
	 December 15, 2023
	  	$	1,149.47	  
	 June 15, 2024
	  	$	1,160.97	  
	 December 15, 2024
	  	$	1,172.58	  
	 June 15, 2025
	  	$	1,184.30	  
	 December 15, 2025
	  	$	1,196.15	  
	 June 15, 2026
	  	$	1,208.11	  
	 December 15, 2026
	  	$	1,220.19	  
	 June 15, 2027
	  	$	1,232.39	  
	 December 15, 2027
	  	$	1,244.72	  
	 June 15, 2028
	  	$	1,257.16	  
	 December 15, 2028
	  	$	1,269.73	  
	 June 15, 2029
	  	$	1,282.43	  
	 December 15, 2029
	  	$	1,295.26	  
	 June 15, 2030
	  	$	1,308.21	  
	 December 15, 2030
	  	$	1,321.29	  
	 June 15, 2031
	  	$	1,334.50	  
	 December 15, 2031
	  	$	1,347.85	  
	 June 15, 2032
	  	$	1,361.33	  
	 December 15, 2032
	  	$	1,374.94	  
	 June 15, 2033
	  	$	1,388.69	  
	 December 15, 2033
	  	$	1,402.58	  
	 June 15, 2034
	  	$	1,416.60	  
	 December 15, 2034
	  	$	1,430.77	  
	 June 15, 2035
	  	$	1,445.08	  
	 December 15, 2035
	  	$	1,459.53	  
	 June 15, 2036
	  	$	1,474.12	  
	 December 15, 2036
	  	$	1,488.86	  
	 June 15, 2037
	  	$	1,503.75	  
	 December 15, 2037
	  	$	1,518.79	  

  
 The
accreted principal amount of a note between the dates listed above will include an amount reflecting the additional principal accretion that has accrued as of such date since the immediately preceding date in the table.

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