Document:

EX-10.4

 Exhibit 10.4 
 EXECUTION VERSION 
 GUARANTEE AND COLLATERAL AGREEMENT 

dated as of 

June 11, 2013 

among 
 SCHOOL
SPECIALTY, INC. 
 THE GUARANTORS PARTY HERETO 
 and 
 CREDIT SUISSE AG 

as Collateral Agent 

 TABLE OF CONTENTS 

 
  

 

					
	 	  	PAGE	 
		
	 SECTION 1 . Definitions
	  	 	1	  
	 SECTION 2 . Guarantees by Guarantors
	  	 	9	  
	 SECTION 3 . Grant of Transaction Liens
	  	 	12	  
	 SECTION 4 . General Representations and Warranties
	  	 	14	  
	 SECTION 5 . Further Assurances; General Covenants
	  	 	17	  
	 SECTION 6 . Intellectual Property
	  	 	18	  
	 SECTION 7 . Investment Property
	  	 	19	  
	 SECTION 8 . Deposit Accounts
	  	 	22	  
	 SECTION 9 . Commercial Tort Claims
	  	 	23	  
	 SECTION 10 . Transfer of Record Ownership
	  	 	23	  
	 SECTION 11 . Right to Vote Securities; Right to Proceeds of Insurance
	  	 	23	  
	 SECTION 12 . Certain Cash Distributions
	  	 	24	  
	 SECTION 13 . Remedies upon Event of Default
	  	 	24	  
	 SECTION 14 . Application of Proceeds
	  	 	26	  
	 SECTION 15 . Fees and Expenses; Indemnification
	  	 	28	  
	 SECTION 16 . Authority to Administer Collateral
	  	 	29	  
	 SECTION 17 . Limitation on Duty in Respect of Collateral
	  	 	30	  
	 SECTION 18 . General Provisions Concerning the Collateral Agent
	  	 	31	  
	 SECTION 19 . Termination of Transaction Liens; Release of Collateral
	  	 	32	  
	 SECTION 20 . Additional Guarantors and Grantors
	  	 	33	  
	 SECTION 21 . Notices
	  	 	33	  
	 SECTION 22 . No Implied Waivers; Remedies Not Exclusive
	  	 	33	  
	 SECTION 23 . Successors and Assigns
	  	 	33	  
	 SECTION 24 . Amendments and Waivers
	  	 	33	  
	 SECTION 25 . Choice of Law
	  	 	34	  
	 SECTION 26 . Waiver of Jury Trial
	  	 	34	  
	 SECTION 27 . Severability
	  	 	34	  
	 SECTION 28 . ABL Intercreditor Agreement
	  	 	34	  

			
	SCHEDULES:	  	
		
	 Schedule 1
	  	 Equity Interests in Subsidiaries and Affiliates Owned by Original Grantors

		
	 Schedule 2
	  	 Other Investment Property Owned by Original Grantors

		
	 Schedule 3
	  	 Material Commercial Tort Claims

		
	EXHIBITS:	  	
		
	 Exhibit A
	  	 Security Agreement Supplement

		
	 Exhibit B
	  	 Notice of Grant of Security Interest in Copyrights

		
	 Exhibit C
	  	 Notice of Grant of Security Interest in Patents

		
	 Exhibit D
	  	 Notice of Grant of Security Interest in Trademarks

		
	 Exhibit E
	  	 Perfection Certificate

		
	 Exhibit F
	  	 Issuer Control Agreement

  
 ii 

 GUARANTEE AND COLLATERAL AGREEMENT 

GUARANTEE AND COLLATERAL AGREEMENT (this “Agreement”), dated as of June 11, 2013, among SCHOOL SPECIALTY, INC., as
the Borrower, the GUARANTORS party hereto and CREDIT SUISSE AG, as Collateral Agent. 
 WHEREAS, the Borrower is entering into
the Credit Agreement described in Section 1 hereof, pursuant to which the Borrower intends to borrow funds for the purposes set forth therein; 
 WHEREAS, (i) the Borrower is willing to secure its obligations under the Credit Agreement and (ii) the Borrower and the Guarantors are willing to secure their respective Secured Cash Management
Obligations and Secured Hedging Agreements by granting Liens on their assets to the Collateral Agent as provided in the Security Documents; 
 WHEREAS, the Borrower is willing to cause certain of its Subsidiaries to guarantee the foregoing obligations of the Borrower and to secure their guarantee thereof by granting Liens on their assets to the
Collateral Agent as provided in the Security Documents; 
 WHEREAS, the Lenders are not willing to make loans under the Credit
Agreement, the Cash Management Banks are not willing to provide Cash Management Obligations and the Qualified Counterparties are not willing to enter into Hedging Agreements unless (i) the foregoing obligations of the Borrower and the
Guarantors are secured and guaranteed as described above and (ii) each guarantee thereof is secured by Liens on assets of the relevant Guarantor as provided in the Security Documents; and 

WHEREAS, upon any foreclosure or other enforcement of the Security Documents, the net proceeds of the relevant Collateral are to be
received by or paid over to the Collateral Agent and applied as provided herein; 
 NOW, THEREFORE, in consideration of the
foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1. Definitions. 
 (a) Terms Defined in Credit
Agreement. Terms defined in the Credit Agreement and not otherwise defined in subsection (b) or (c) of this Section have, as used herein, the respective meanings provided for therein. The rules of construction specified in
Section 1.02 of the Credit Agreement also apply to this Agreement. 

 (b) Terms Defined in UCC. As used herein, each of the following terms has the meaning
specified in the UCC: 
  

			
	 Term
	  	 UCC

		
	 Account
	  	9-102
	 Authenticate
	  	9-102
	 Certificated Security
	  	8-102
	 Chattel Paper
	  	9-102
	 Commercial Tort Claim
	  	9-102
	 Commodity Account
	  	9-102
	 Commodity Customer
	  	9-102
	 Debtor
	  	9-102
	 Deposit Account
	  	9-102
	 Document
	  	9-102
	 Entitlement Holder
	  	8-102
	 Equipment
	  	9-102
	 Financial Asset
	  	8-102 & 103
	 General Intangibles
	  	9-102
	 Instrument
	  	9-102
	 Inventory
	  	9-102
	 Investment Property
	  	9-102
	 Letter-of-Credit Right
	  	9-102
	 Money
	  	1-201
	 Record
	  	9-102
	 Securities Account
	  	8-501
	 Securities Intermediary
	  	8-102
	 Security
	  	8-102 & 103
	 Security Entitlement
	  	8-102
	 Supporting Obligations
	  	9-102
	 Uncertificated Security
	  	8-102

 (c) Additional Definitions. The following additional terms, as used herein, have the following
meanings: 
 “Agent Professionals” means attorneys, accountants, appraisers, auditors, business valuation
experts, environmental engineers or consultants, turnaround consultants, and other professionals and experts retained by the Collateral Agent. 
 “Agreement” has the meaning specified in the preamble hereto. 

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing. 

  
 2 

 “Cash Distributions” means dividends, interest and other distributions and
payments (including proceeds of liquidation, sale or other disposition) made or received in cash upon or with respect to any Collateral. 
 “Collateral” means all property, whether now owned or hereafter acquired, on which a Lien is granted or purports to be granted to the Collateral Agent pursuant to the Security Documents.
When used with respect to a specific Grantor, the term “Collateral” means all its property on which such a Lien is granted or purports to be granted. 
 “Collateral Accounts” means the Controlled Deposit Accounts and the Controlled Securities Accounts. 
 “Contingent Obligation” means, at any time, any Obligation (or portion thereof) that is contingent in nature at such time, including any Obligation that is: 

(i) an obligation under an agreement relating to Secured Cash Management Obligations or Secured Hedging Agreements to make
payments that cannot be quantified at such time; 
 (ii) any other obligation (including any guarantee) that is
contingent in nature at such time; or 
 (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations. 
 “Control” has the meaning specified in UCC Section 8-106, 9-104, 9-105, 9-106 or
9-107, as may be applicable to the relevant Collateral. 
 “Controlled Deposit Account” means a Deposit Account
that is subject to a Deposit Account Control Agreement. 
 “Controlled Securities Account” means a Securities
Account that (i) is maintained in the name of a Grantor at an office of a Securities Intermediary located in the United States and (ii) together with all Financial Assets credited thereto and all related Security Entitlements, is subject
to a Securities Account Control Agreement among such Grantor, the Collateral Agent and such Securities Intermediary. 

“Copyright License” means any agreement now or hereafter in existence granting to any Grantor, or pursuant to which any
Grantor grants to any other Person, any right to use, copy, reproduce, distribute, prepare derivative works, display or publish any records or other materials on which a Copyright is in existence or may come into existence (excluding any Exclusive
Copyright License). 

  
 3 

 “Copyrights” means all the following: (i) all copyrights under the
laws of the United States or any other country (whether or not the underlying works of authorship have been published), all registrations and recordings thereof, all copyrightable works of authorship (whether or not published), and all applications
for copyrights under the laws of the United States or any other country, including registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any
other country or any political subdivision thereof, including those described in Schedule 1 to any Notice of Grant of Security Interest in Copyrights, (ii) all renewals of any of the foregoing, (iii) all claims for, and rights to sue for,
past or future infringements of any of the foregoing, and (iv) all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past or future infringements
thereof. 
 “Credit Agreement” means the Credit Agreement, dated as of June 11, 2013, among School
Specialty, Inc., the Lenders party thereto and Credit Suisse AG, as Administrative Agent and Collateral Agent. 

“Credit Parties” means the Collateral Agent or any other Lender. 

“Deposit Account Control Agreement” means a control agreement reasonably satisfactory to the Collateral Agent executed
by the relevant Grantor, each institution maintaining a Deposit Account for such Grantor, and the Collateral Agent. 

“Depositary Bank” means a bank at which a Controlled Deposit Account is maintained. 

“Equity Interest” means, with respect to any Person, (a) the Capital Stock of such Person and (b) any Security
Entitlement in respect of any Capital Stock of such Person. 
 “Excluded Accounts” means the account holding
the Prepetition Escrowed Amounts (as defined in the Plan of Reorganization), the Fee Claims Account and the DIP ABL Cash Collateral Account. 
 “Excluded Assets” has the meaning specified in Section 3. 

“Excluded Equity Interests” means (i) any Equity Interests of any Foreign Subsidiary other than a direct Foreign
Subsidiary of the Borrower or a Domestic Subsidiary, (ii) any voting Equity Interests of a direct Foreign Subsidiary of the Borrower or a Domestic Subsidiary in excess of 65% of the Equity Interests of such Foreign Subsidiary and (iii) any
Equity Interests of any Person that is not a direct Subsidiary of the applicable Grantor. 

  
 4 

 “Exclusive Copyright License” means any material agreement now or hereafter
in existence granting to any Grantor an exclusive right to use, copy, reproduce, distribute, prepare derivative works, display or publish any materials on which a United States Copyright is in existence or may come into existence. 

“Exempt Account” means any Deposit Account or Securities Account maintained by Grantors that is (x) exclusively
used for payroll, payroll taxes or employee benefits, (y) a zero balance disbursement account, or (z) an account containing not more than $150,000 at any one time, provided, however, that amounts on deposit in all such
accounts under this clause (z) do not exceed $1,000,000 at any time; provided, further, that any account subject to a control agreement for the benefit of the ABL Administrative Agent shall not be an Exempt Account. 

“Grantors” means the Borrower and the Guarantors. 

“Guarantors” means each Subsidiary listed on the signature pages hereof under the caption “Guarantors” and
each Subsidiary that shall, at any time after the date hereof, become a “Guarantor” pursuant to Section 20. 

“Intellectual Property” means all intellectual property and similar proprietary property of any Grantor of every kind
and nature now owned or hereafter acquired by any Grantor, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business information, know-how, show-how or other data or
information, software and databases and all embodiments or fixations thereof and related documentation, registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection with, any
of the foregoing. 
 “Intellectual Property Filing” means (i) with respect to any Patent or Trademark, the
filing of the applicable Notice of Grant of Security Interest in Patents or Notice of Grant of Security Interest in Trademarks with the United States Patent and Trademark Office, together with an appropriately completed recordation form, and
(ii) with respect to any Copyright or Exclusive Copyright License, the filing of the applicable Notice of Grant of Security Interest in Copyrights with the United States Copyright Office, together with an appropriately completed recordation
form. 
 “Intellectual Property Notice” means a Notice of Grant of Security Interest in Copyrights, a Notice of
Grant of Security Interest in Patents or a Notice of Grant of Security Interest in Trademarks. 
 “Issuer Control
Agreement” means an Issuer Control Agreement substantially in the form of Exhibit F (with any changes that the Collateral Agent and the Borrower shall have approved). 

  
 5 

 “License” means any Patent License, Trademark License, Copyright License,
Exclusive Copyright License or other license or sublicense agreement relating to Intellectual Property to which any Grantor is a party. 
 “Material Commercial Tort Claim” means a Commercial Tort Claim involving a claim for more than $500,000. 
 “Non-Contingent Obligation” means at any time any Obligation (or portion thereof) that is not a Contingent Obligation at such time. 

“Notice of Grant of Security Interest in Copyrights” means a Notice of Grant of Security Interest in Copyrights,
substantially in the form of Exhibit B (with any changes that the Collateral Agent and the Borrower shall have approved), executed and delivered by a Grantor in favor of the Agent for the benefit of the Secured Parties. 

“Notice of Grant of Security Interest in Patents” means a Notice of Grant of Security Interest in Patents, substantially
in the form of Exhibit C (with any changes that the Collateral Agent and the Borrower shall have approved), executed and delivered by a Grantor in favor of the Agent for the benefit of the Secured Parties. 

“Notice of Grant of Security Interest in Trademarks” means a Notice of Grant of Security Interest in Trademarks,
substantially in the form of Exhibit D (with any changes that the Collateral Agent and the Borrower shall have approved), executed and delivered by a Grantor in favor of the Agent for the benefit of the Secured Parties. 

“Obligor” means the obligor with respect to any Obligation. 

“Original Grantor” means any Grantor that grants a Lien on any of its assets hereunder on the Closing Date. 

“own” refers to the possession of sufficient rights in property to grant a security interest therein as contemplated by
UCC Section 9-203, and “acquire” refers to the acquisition of any such rights. 
 “Patent
License” means any agreement now or hereafter in existence granting to any Grantor, or pursuant to which any Grantor grants to any other Person, any right with respect to any Patent or any invention now or hereafter in existence, whether
patentable or not, whether a patent or application for patent is in existence on such invention or not, and whether a patent or application for patent on such invention may come into existence or not. 

“Patents” means (i) all letters patent and design letters patent of the United States or any other country and all
applications for letters patent or design letters patent of the United States or any other country, including applications in 

  
 6 

 
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, including those
described in Schedule 1 to any Notice of Grant of Security Interest in Patents, (ii) all reissues, divisions, continuations, continuations in part, revisions and extensions of any of the foregoing, (iii) all claims for, and rights to sue
for, past or future infringements of any of the foregoing and (iv) all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past or future infringements
thereof. 
 “Perfection Certificate” means, with respect to any Grantor, a certificate substantially in the
form of Exhibit E (with any changes that the Collateral Agent and the Borrower shall have approved), completed and supplemented with the schedules contemplated thereby to the satisfaction of the Collateral Agent, and signed by an officer of such
Grantor. 
 “Permitted Collateral Liens” means with respect to (a) the Pledged Equity Interests, Liens
imposed by law and Liens granted to the ABL Administrative Agent to secure the ABL Facility and any other Permitted First Lien Debt, and Liens in connection with the Prepetition Escrowed Amounts to the extent permitted under the Credit Agreement and
(b) all other Collateral, Permitted Liens. 
 “Pledged”, when used in conjunction with any type of asset,
means at any time an asset of such type that is included (or that creates rights that are included) in the Collateral at such time. For example, “Pledged Equity Interest” means an Equity Interest that is included in the Collateral at such
time. 
 “Proceeds” means all “proceeds” (as defined in Section 9-102 of the UCC) and including,
in any event, all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other disposition of, or other realization upon, any Collateral,
including all claims of the relevant Grantor against third parties for loss of, damage to or destruction of, or for proceeds payable under, or unearned premiums with respect to, policies of insurance in respect of, any Collateral, and any
condemnation or requisition payments with respect to any Collateral. 
 “Recordable Intellectual Property”
means (i) any material Patent issued or applied for issuance with the United States Patent and Trademark Office, (ii) any material Trademark registered or applied for registration with the United States Patent and Trademark Office,
(iii) any material Copyright registered or applied for registration with the United States Copyright Office, and (iv) any Exclusive Copyright License. 

  
 7 

 “Related Parties” means with respect to any specified Person, such
Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
 “Release Conditions” means the conditions for releasing all the Secured Guarantees and terminating all the Transaction Liens, which are specified in Section 9.21(a) of the Credit
Agreement. 
 “Secured Agreement”, when used with respect to any Obligation secured hereby, refers collectively
to each instrument, agreement or other document that sets forth obligations of the Borrower, obligations of any Subsidiary and/or rights of the holder with respect to such Obligation. 

“Secured Guarantee” means, with respect to each Guarantor, its guarantee of the Obligations under Section 2 hereof
or Section 1 of a Security Agreement Supplement. 
 “Secured Parties” means the holders from time to time
of the Obligations. 
 “Security Account Control Agreement” means a control agreement reasonably satisfactory
to the Collateral Agent executed by the relevant Grantor, each institution maintaining a Securities Account for such Grantor, and the Collateral Agent. 
 “Security Agreement Supplement” means a Security Agreement Supplement, substantially in the form of Exhibit A, signed and delivered to the Collateral Agent for the purpose of adding a
Subsidiary as a party hereto pursuant to Section 20 and/or adding additional property to the Collateral. 

“Security Documents” means this Agreement, the Security Agreement Supplements, the Deposit Account Control Agreements,
the Issuer Control Agreements, the Securities Account Control Agreements, the Intellectual Property Notices and all other supplemental or additional security agreements, control agreements or similar instruments now or hereafter securing (or given
with the intent to secure) any Obligations. 
 “Trademark License” means any agreement now or hereafter in
existence granting to any Grantor, or pursuant to which any Grantor grants to any other Person, any right to use any Trademark. 

“Trademarks” means: (i) all trademarks, trade names, corporate names, company names, business names, fictitious
business names, trade styles, service marks, logos, brand names, trade dress, prints and labels on which any of the foregoing have appeared or appear, package and other designs, and all other source or business identifiers, and all general
intangibles of like nature, and the 

  
 8 

 
rights in any of the foregoing which arise under applicable law, (ii) the goodwill of the business symbolized thereby or associated with each of them, (iii) all registrations and
applications in connection therewith, including registrations and applications 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, including those described in Schedule 1 to any Notice of Grant of Security Interest in Trademarks, (iv) all renewals of any of the foregoing, (v) all claims for, and rights to sue for, past or future infringements of
any of the foregoing and (vi) all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past or future infringements thereof. 

“Transaction Liens” means the Liens granted by the Grantors under the Security Documents. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that,
if perfection or the effect of perfection or non-perfection or the priority of any Transaction Lien on any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform
Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 

SECTION 2. Guarantees by Guarantors. 
 (a) Secured Guarantees. Each Guarantor unconditionally guarantees the full and punctual payment of each Obligation (other than the Obligations of such Guarantor) when due (whether at stated
maturity, upon acceleration or otherwise), which guarantees shall constitute a continuing guarantee of payment and not of collection. If the Borrower or any other Obligor fails to pay any Obligation punctually when due, each other Guarantor agrees
that it will forthwith on demand pay the amount not so paid at the place and in the manner specified in the relevant Secured Agreement. 
 (b) Secured Guarantees Unconditional. The obligations of each Guarantor under its Secured Guarantee shall be unconditional and absolute and, without limiting the generality of the foregoing, shall
not be released, discharged or otherwise affected by: 
 (i) any extension, renewal, settlement, compromise,
waiver or release in respect of any obligation of the Borrower, any other Guarantor or Obligor or any other Person under any Secured Agreement, by operation of law or otherwise (including by the Collateral Agent or any Lender); 

  
 9 

 (ii) the genuineness, validity, regularity, enforceability, subordination or
any future modification of, or change in, any Obligations or any Secured Agreement, or any other document, instrument or agreement to which any Obligor is or may become a party or be bound; 

(iii) any release, impairment, non-perfection or invalidity of any direct or indirect security for any obligation of the
Borrower, any other Guarantor or Obligor or any other Person under any Secured Agreement; 
 (iv) any change in
the corporate existence, structure or ownership of the Borrower, any other Guarantor or Obligor or any other Person or any of their respective subsidiaries, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the
Borrower, any other Guarantor or Obligor or any other Person or any of their assets or any resulting release or discharge of any obligation of the Borrower, any other Guarantor or Obligor or any other Person under any Secured Agreement; 

(v) the existence of any claim, set-off or other right that such Guarantor may have at any time against the Borrower, any
other Guarantor or Obligor, any Secured Party or any other Person, whether in connection with the Loan Documents or any unrelated transactions, provided that nothing herein shall prevent the assertion of any such claim by separate suit or
compulsory counterclaim; 
 (vi) any invalidity or unenforceability relating to or against the Borrower, any
other Guarantor or Obligor or any other Person for any reason of any Secured Agreement, or any provision of any applicable law, rule or regulation purporting to prohibit the payment of any Obligation by the Borrower, any other Guarantor or Obligor
or any other Person; or 
 (vii) any other act or omission to act or delay of any kind by the Borrower, any other
Guarantor or Obligor, any other party to any Secured Agreement, any Secured Party or any other Person, or any other circumstance whatsoever that might, but for the provisions of this clause (vii), constitute a legal or equitable discharge of or
defense of a surety or guarantor to any obligation of any Guarantor hereunder. 
 (c) Release of Secured Guarantees.
(i) All Secured Guarantees will be released when all Release Conditions are satisfied. If at any time any payment of a Obligation is rescinded or must be otherwise restored or returned upon the insolvency or receivership of the Borrower, any
other Obligor or otherwise, the Secured Guarantees shall be reinstated with respect thereto as though such payment had been due but not made at such time. 

  
 10 

 (ii) In addition, if any Guarantor shall cease to be a Subsidiary of the Borrower as
permitted by Section 9.21(b) of the Credit Agreement, the Collateral Agent, at the request of the Borrower, shall release such Guarantor from its Secured Guaranty and its other Obligations under the Loan Documents; 

(iii) Upon any termination of a Secured Guaranty, the Collateral Agent will, in accordance with Section 9.21(d) of the Credit
Agreement, execute and deliver to the Borrower such documents as it shall reasonably request to evidence the termination thereof. 
 (d) Waiver by Guarantors. Each Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any
action be taken by any Person against the Borrower, any other Guarantor or Obligor or any other Person. Each Guarantor expressly waives all rights that it may have now or in the future under any statute, at common law, in equity or otherwise, to
compel the Collateral Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or security for the payment or performance of any Obligations before, or as a condition to, proceeding against such Guarantor. Each Guarantor
waives all defenses available to a surety, guarantor or accommodation co-obligor other than payment in full of all Obligations and waives, to the maximum extent permitted by law, any right to revoke any guaranty of any Obligations as long as it is a
Guarantor. 
 (e) Subrogation. A Guarantor that makes a payment with respect to an Obligation hereunder shall be
subrogated to the rights of the payee against the Borrower or the applicable Obligor with respect to such payment; provided that no Guarantor shall enforce any payment by way of subrogation against the Borrower or the applicable Obligor, or
by reason of contribution against any other guarantor of such Obligation, until all the Release Conditions have been satisfied. 

(f) Stay of Acceleration. If acceleration of the time for payment of any Obligation by the Borrower or the applicable Obligor is
stayed by reason of the insolvency or receivership of the Borrower or the applicable Obligor or otherwise, all Obligations otherwise subject to acceleration under the terms of any Secured Agreement shall nonetheless be payable by the Guarantors
hereunder forthwith on demand by the Collateral Agent. 
 (g) Right of Set-Off. In addition to any rights and remedies of
the Secured Parties provided by law, each Secured Party shall have the right, upon any amount becoming due and payable by any Guarantor hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply
against such amount 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,
matured or unmatured at any time held or owing by such Secured 

  
 11 

 
Party or any branch or agency thereof to or for the credit or the account of such Guarantor. Each Secured Party agrees to promptly notify such Guarantor and the Collateral Agent after any such
setoff and application made by such Secured Party; provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 (h) Continuing Guarantee. Each Secured Guarantee is a continuing guarantee, shall be binding on the relevant Guarantor and its successors and assigns, and shall be enforceable by the Collateral
Agent or the Secured Parties. If all or part of any Secured Party’s interest in any Obligation is assigned or otherwise transferred, the transferor’s rights under each Secured Guarantee, to the extent applicable to the obligation so
transferred, shall automatically be transferred with such obligation. 
 (i) Limitation on Obligations of Guarantor. The
obligations of each Guarantor under its Secured Guarantee shall be limited to an aggregate amount equal to the largest amount that would not render such Secured Guarantee subject to avoidance under Section 548 of the Bankruptcy Code or any
comparable provisions of applicable law. 
 (j) Right of Contribution. Each Guarantor hereby agrees that to the extent
that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate
share of such payment. Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2(e) . The provisions of this Section 2(j) shall in no respect limit the obligations and liabilities of any
Guarantor to the Collateral Agent and the Secured Parties, and each Guarantor shall remain liable to the Collateral Agent and the Secured Parties for the full amount guaranteed by such Guarantor hereunder. 

SECTION 3. Grant of Transaction Liens. (a) The Borrower, in order to secure all Obligations, and each Guarantor party
hereto, in order to secure all Obligations, including its Obligations under its Secured Guarantee, grants to the Collateral Agent for the benefit of the Secured Parties a continuing security interest in all the following property of such Borrower or
such Guarantor, as the case may be, whether now owned or existing or hereafter acquired or arising and regardless of where located: 
 (i) all Accounts; 
 (ii) all Chattel Paper; 

(iii) all Money and Deposit Accounts; 

(iv) all Documents; 

  
 12 

 (v) all Equipment; 

(vi) all General Intangibles (including (x) any Equity Interests in other Persons that do not constitute Investment
Property and (y) any Intellectual Property); 
 (vii) all Instruments; 

(viii) all Inventory; 
 (ix) all Investment Property; 
 (x) the Commercial Tort Claims
described in Schedule 3; 
 (xi) all Letter-of-Credit Rights; 

(xii) all books and records (including customer lists, credit files, computer programs, printouts and other computer
materials and records) of such Grantor pertaining to any of its Collateral; 
 (xiii) all Proceeds of the
Collateral described in the foregoing clauses (i) through (xii); 
 provided that the following property is excluded from the
foregoing security interests (it being understood that such grant will be applicable at such time as any such property or assets ceases to constitute Excluded Assets): (A) motor vehicles the perfection of a security interest in which is
excluded from the Uniform Commercial Code in the relevant jurisdiction, (B) Excluded Equity Interests, (C) any lease, license or other agreement to the extent that a grant of a security interest therein would violate or invalidate such
lease, license or agreement or create a right of termination in favor of any other party thereto (other than the Borrower or Grantor) after giving effect to the applicable anti-assignment provisions of the UCC, (D) any properties and assets
with respect to which the Collateral Agent determines in its good faith judgment that the costs or other consequences of granting or perfecting a security interest therein are excessive in view of the benefits to be obtained by the Secured Parties,
(E) any United States intent-to-use Trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use Trademark
applications under applicable federal law, (F) any real property (which shall, notwithstanding anything herein to the contrary, be subject to the requirements of Section 5.11(c) and 5.13(a) of the Credit Agreement), (G) any letter of
credit rights to the extent any Grantor is required by applicable law to apply the proceeds of a drawing of such letter of credit for a specified purpose, (H) any governmental licenses or state or local franchises, charters and authorizations,
to the extent security interests in such licenses, franchises, charters or authorizations are prohibited or restricted thereby 

  
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after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code, (I) any property to the extent that the grant of a security interest therein is prohibited by
any applicable law or regulation, requires a consent not obtained of any Governmental Authority pursuant to any applicable law or regulation, or is prohibited by, or would constitute a breach or default under or would result in the termination,
invalidation or abandonment of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to such property or, in the case of any Investment Property, any applicable
shareholder or similar agreement and (J) the Excluded Accounts (the foregoing, collectively, the “Excluded Assets”), provided that the foregoing limitation in clause (I) shall not affect, limit, restrict or impair
the grant by a Grantor of a security interest pursuant to this Agreement in any asset or right to the extent that Sections 9-406 and 9-408 of the Uniform Commercial Code as in effect on the date hereof would permit (and excuse any default or
violation resulting therefrom) the creation of a security interest in such asset or right notwithstanding such law or regulation or the provision of such contract, license, agreement, instrument or other document or shareholder or similar agreement
prohibiting the creation of a security interest therein or shall render such provision unenforceable. Each Grantor shall upon request of the Collateral Agent use commercially reasonable efforts to obtain any such required consent that is reasonably
obtainable, it being understood and agreed that no Grantor shall be required to obtain any such consent if the Borrower reasonably determines in its good faith judgment that the costs of obtaining such consent are excessive in view of the benefits
to be obtained by the Secured Parties thereby. 
 (b) With respect to each right to payment or performance included in the
Collateral from time to time, the Transaction Lien granted therein includes a continuing security interest in (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to
payment or performance or (y) secures any such Supporting Obligation. 
 (c) The Transaction Liens are granted as security
only and shall not subject the Collateral Agent or any other Secured Party to, or transfer or in any way affect or modify, any obligation or liability of any Grantor with respect to any of the Collateral or any transaction in connection therewith.

 SECTION 4. General Representations and Warranties. Each Grantor represents and warrants that: 

(a) Such Grantor (a) is duly organized or formed, as the case may be, validly existing and in good standing under the laws of the
jurisdiction of its organization or formation, (b) has the requisite power and authority to own and operate its properties, to lease the properties it operates as lessee and to conduct the business in which it is currently engaged as it is
currently conducted, (c) is duly qualified as a foreign corporation and in good standing under the laws of 

  
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each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification except to the extent that the failure to so qualify could not,
in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all applicable laws, rules and regulations, 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) With respect to each Original Grantor, Schedule 1 lists all
Equity Interests in Subsidiaries and Affiliates of such Grantor owned by such Grantor as of the Closing Date. Such Grantor holds all such Equity Interests directly (i.e., not through a Subsidiary, a Securities Intermediary or any other
Person). 
 (c) With respect to each Original Grantor, Schedule 2 lists, as of the Closing Date, (i) all Securities owned
by such Grantor (except for Excluded Equity Interests and Securities evidencing Equity Interests in Subsidiaries and Affiliates of such Grantor) and (ii) all Securities Accounts (other than any one or more Securities Accounts comprising
Financial Assets of less than $250,000 in the aggregate) to which Financial Assets are credited in respect of which such Grantor owns Security Entitlements. 
 (d) As of the Closing Date, such Grantor owns no Commodity Account in respect of which such Grantor is the Commodity Customer. 
 (e) All Pledged Equity Interests owned by such Grantor are owned by it free and clear of any Lien other than (i) Permitted Collateral Liens, (ii) any Liens permitted by the ABL Facility and any
other Permitted First Lien Debt and (iii) any liens imposed by law. All shares of capital stock included in such Pledged Equity Interests (including shares of capital stock in respect of which such Grantor owns a Security Entitlement) have been
duly authorized and validly issued and are fully paid and non-assessable. None of such Pledged Equity Interests is subject to any option to purchase or similar right of any Person. 

(f) Such Grantor has good and marketable title to all its Collateral (subject to exceptions that are, in the aggregate, not material),
free and clear of any Lien other than Permitted Collateral Liens. 
 (g) Such Grantor has not performed any acts that are
reasonably likely to prevent the Collateral Agent from enforcing any of the provisions of the Security Documents or that would limit the Collateral Agent in any such enforcement. No financing statement, security agreement, mortgage or similar or
equivalent document or instrument covering all or part of the Collateral owned by such Grantor is on file or of record in any jurisdiction in which such filing or recording would be effective to perfect or record a Lien on such Collateral, except
financing statements, mortgages or other similar or equivalent documents with respect to Permitted Collateral Liens. After the Closing Date, no Collateral owned by such Grantor will be in the possession or under the Control of any other Person
having a claim thereto or security interest therein, other than a Permitted Collateral Lien. 

  
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 (h) The Transaction Liens on all Collateral owned by such Grantor (i) have been validly
created, (ii) will attach to each item of such Collateral on the Closing Date (or, if such Grantor first obtains rights thereto on a later date, on such later date) and (iii) when so attached, will secure all the Obligations, including the
Obligations under its Secured Guarantee, as the case may be. 
 (i) Such Grantor has delivered a Perfection Certificate to the
Collateral Agent. With respect to each Original Grantor, information set forth therein is correct and complete, in all material respects, as of the Closing Date. 
 (j) When UCC financing statements describing the Collateral as “all assets” or “all personal property now existing or hereinafter acquired” or other words to that effect have been
filed in the offices specified in such Perfection Certificate, the Transaction Liens will constitute perfected security interests in the Collateral owned by such Grantor to the extent that a security interest therein may be perfected by filing
pursuant to the UCC, prior to all Liens and rights of others therein except Permitted Collateral Liens. When, in addition to the filing of such UCC financing statements, the applicable Intellectual Property Filings have been made with respect to
such Grantor’s Recordable Intellectual Property (including any future filings required pursuant to Sections 5(a) and 6(a)), the Transaction Liens will constitute perfected security interests in all right, title and interest of such Grantor in
its Recordable Intellectual Property to the extent that security interests therein may be perfected by such filings, prior to all Liens and rights of others therein except Permitted Collateral Liens. Except for (x) the filing of such UCC
financing statements, (y) such Intellectual Property Filings, and (z) additional Intellectual Property Filings that may be necessary to perfect the Transaction Liens with respect to such Grantor’s Patents, Trademarks and Copyrights
that do not constitute Recordable Intellectual Property, no registration, recordation or filing with any governmental body, agency or official is required in connection with the execution or delivery of the Security Documents or is necessary for the
validity or enforceability thereof or for the perfection (other than in respect of deposit accounts) or due recordation of the Transaction Liens or for the enforcement of the Transaction Liens. Notwithstanding anything herein to the contrary, no
Grantor shall take any action to perfect any security interest in any part of the Collateral under the laws of any jurisdiction outside of the United States of America. 
 (k) Such Grantor has taken, and will continue to take, all actions necessary under the UCC to perfect its interest in any Accounts or Chattel Paper purchased or otherwise acquired by it, as against its
assignors and creditors of its assignors, except with respect to actions not required to taken until a specified period after the Closing Date. 

  
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 SECTION 5. Further Assurances; General Covenants. Each Grantor covenants as
follows: 
 (a) Such Grantor will, from time to time, at the Borrower’s expense, execute, deliver, file and record any
reasonable statement, assignment, instrument, document, agreement or other paper and take any other action (including any Intellectual Property Filing but solely with respect to Recordable Intellectual Property) that from time to time may be
necessary, or that the Collateral Agent may reasonably request, in order to: 
 (i) create, preserve, perfect,
confirm or validate the Transaction Liens on such Grantor’s Collateral; 
 (ii) in the case of
(a) Pledged Deposit Accounts (other than Exempt Accounts), Pledged Investment Property or Pledged Securities Accounts (other than Exempt Accounts) and (b) upon the occurrence and during the continuance of an Event of Default, Pledged
Letter-of-Credit Rights, cause the Collateral Agent to have Control thereof (subject to exclusions expressly set forth therein and in the Credit Agreement); 
 (iii) enable the Collateral Agent and the other Secured Parties to obtain the full benefits of the Security Documents; or 

(iv) enable the Collateral Agent to exercise and enforce any of its rights, powers and remedies with respect to any of
such Grantor’s Collateral. 
 Such Grantor authorizes the Collateral Agent to execute and file such financing statements or
continuation statements in such jurisdictions with such descriptions of collateral (including “all assets” or “all personal property now existing or hereinafter acquired” or other words to that effect) and other information set
forth therein as the Collateral Agent may deem necessary or desirable for the purposes set forth in the preceding sentence. Each Grantor also ratifies its authorization for the Collateral Agent to file in any such jurisdiction any initial financing
statements or amendments thereto if filed prior to the date hereof. The Collateral Agent is further authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office) such documents as
may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interests granted by each Grantor, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors and
the Collateral Agent as secured party. The Borrower will pay the costs of, or reasonably incidental to, any Intellectual Property Filings and any recording or filing of any financing or continuation statements or other documents recorded or filed
pursuant hereto. 

  
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 (b) Such Grantor shall furnish to the Collateral Agent 10 Business Days (or such shorter
period as Collateral Agent may agree) prior written notice of any change (1) in its name, (2) in its jurisdiction of organization or formation, (3) in its identity or corporate structure or (4) in its federal taxpayer
identification number. Such Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the Uniform Commercial Code or otherwise that are required in order for the Collateral Agent
to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral under the Loan Documents. 
 (c) If any of its Collateral is in the possession or control of a warehouseman, bailee or agent at any time, when an Event of Default shall have occurred and be continuing, such Grantor will, upon the
request of the Collateral Agent: (i) notify such warehouseman, bailee or agent of the relevant Transaction Liens, (ii) instruct such warehouseman, bailee or agent to hold all such Collateral for the Collateral Agent’s account subject
to the Collateral Agent’s instructions (which shall permit such Collateral to be removed by such Grantor in the ordinary course of business until the Collateral Agent notifies such warehouseman, bailee or agent that an Event of Default has
occurred and is continuing), (iii) cause such warehouseman, bailee or agent to Authenticate a Record acknowledging that it holds possession of such Collateral for the Collateral Agent’s benefit and (iv) make such Authenticated Record
available to the Collateral Agent. 
 (d) Such Grantor will promptly upon request, provide to the Collateral Agent all
information and evidence concerning such Grantor’s Collateral that the Collateral Agent may reasonably request from time to time to enable it to enforce the provisions of the Security Documents. 

(f) Except as permitted under the Credit Agreement, each Grantor shall defend its title to Collateral and the Collateral Agent’s
Liens therein against all Persons, claims and demands, except Permitted Collateral Liens. 
 SECTION 6. Intellectual
Property. Each Grantor covenants as follows: 
 (a) On the Closing Date (in the case of an Original Grantor) or the date on
which it signs and delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor will sign and deliver to the Collateral Agent Intellectual Property Notices with respect to all Recordable Intellectual Property
then owned by it; provided that the Original Grantors shall only be required to deliver Intellectual Property Notices with respect to Exclusive Copyright Licenses included in the Recordable Intellectual Property by the date specified for the
delivery thereof in Schedule 5.14 to the Credit Agreement. Within 45 calendar days after the last day of each fiscal quarter thereafter, it will sign and deliver to the Collateral Agent an appropriate Intellectual Property Notice covering any
Recordable Intellectual Property owned by it on the last day of such fiscal quarter that is not covered by any previous Intellectual Property 

  
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Notices so signed and delivered by it. In each case, it will, within 45 calendar days after the last day of each such fiscal quarter, make all Intellectual Property Filings necessary to record
the Transaction Liens on such Recordable Intellectual Property. 
 (b) Such Grantor will notify the Collateral Agent within 45
days after the last day of the fiscal quarter in which it learns that any application or registration relating to any Intellectual Property owned by it may become abandoned, or of any adverse, final and non-appealable determination (including any
final, non-appealable adverse determination in the United States Copyright Office, the United States Patent and Trademark Office or any court) regarding such Grantor’s ownership of such Intellectual Property, its right to register or patent the
same, or its right to keep and maintain the same, in each case of the foregoing, except to the extent that the loss of such Intellectual Property would not reasonably be expected to have a Material Adverse Effect. If any of such Grantor’s
rights to any Intellectual Property are materially infringed or misappropriated by a third party and such infringement or misappropriation would be reasonably expected to have a Material Adverse Effect, such Grantor will notify the Collateral Agent
within 45 calendar days after it learns thereof and will, unless such Grantor shall reasonably determine that such action would be of negligible value, economic or otherwise, promptly take such actions as such Grantor shall reasonably deem
appropriate under the circumstances to protect such Intellectual Property. 
 (c) Upon the occurrence and during the continuance
of an Event of Default, each Grantor shall, upon the request of the Collateral Agent therefor, use its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of each Exclusive Copyright License and each
material Copyright License, Patent License and Trademark License under which such Grantor is the licensee to effect the assignment of all such Grantor’s right, title and interest thereunder to the Collateral Agent, for the ratable benefit of
the Secured Parties, or its designee. 
 SECTION 7. Investment Property. Each Grantor represents, warrants and
covenants as follows: 
 (a) Certificated Securities. On the Closing Date (in the case of an Original Grantor) or the
date on which it signs and delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor will deliver to the Collateral Agent as Collateral hereunder all certificates representing Pledged Certificated Securities
then owned by such Grantor. Thereafter, whenever such Grantor acquires any other certificate representing a Pledged Certificated Security, such Grantor will promptly (and in any event within 10 Business Days) deliver such certificate to the
Collateral Agent as Collateral hereunder. The provisions of this subsection are subject to the limitation in Section 7(j) in the case of voting Equity Interests in a Foreign Subsidiary. 

  
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 (b) Uncertificated Securities. On the Closing Date (in the case of an Original
Grantor) or the date on which it signs and delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor will enter into (and cause the relevant issuer to enter into) an Issuer Control Agreement in respect of each
Pledged Uncertificated Security then owned by such Grantor and deliver such Issuer Control Agreement to the Collateral Agent (which shall enter into the same). Thereafter, whenever such Grantor acquires any other Pledged Uncertificated Security,
such Grantor will promptly (and in any event within 10 Business Days) enter into (and cause the relevant issuer to enter into) an Issuer Control Agreement in respect of such Pledged Uncertificated Security and deliver such Issuer Control Agreement
to the Collateral Agent (which shall enter into the same). The provisions of this subsection are subject to the limitation in Section 7(j) in the case of voting Equity Interests in a Foreign Subsidiary. 

(c) Security Entitlements. On the Closing Date (in the case of an Original Grantor) or the date on which it signs and delivers its
first Security Agreement Supplement (in the case of any other Grantor), such Grantor will, with respect to each Security Entitlement then owned by it, enter into (and cause the relevant Securities Intermediary to enter into) a Securities Account
Control Agreement in respect of such Security Entitlement and the Securities Account to which the underlying Financial Asset is credited and will deliver such Securities Account Control Agreement to the Collateral Agent (which shall enter into the
same); provided that the Grantors have the right not to comply with this section with respect to Exempt Accounts (and Financial Assets credited thereto and related Security Entitlements). Thereafter, whenever such Grantor acquires any other
Security Entitlement with respect to Financial Assets (other than a Financial Asset credited to an account that would be an Exempt Account immediately after such Financial Asset is so credited), promptly (and in any event within 10 Business Days)
cause the underlying Financial Asset to be credited to a Controlled Securities Account. 
 (d) Perfection as to Certificated
Securities. When such Grantor delivers the certificate representing any Pledged Certificated Security owned by it to the Collateral Agent and complies with Section 7(h) in connection with such delivery, (i) the Transaction Lien on such
Pledged Certificated Security will be perfected, subject to no prior Liens or rights of others (other than Permitted Collateral Liens), (ii) the Collateral Agent will have Control of such Pledged Certificated Security and (iii) assuming
the Collateral Agent does not have notice of any adverse claim to such perfected Certificated Security (it being understood and agreed that as of the Closing Date, the Collateral Agent does not have notice of any adverse claim to such Pledged
Certificated Security other than the ABL Administrative Agent’s claim under the Security Documents (as defined in the ABL Credit Agreement)), the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303)
thereof. 

  
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 (e) Perfection as to Uncertificated Securities. When such Grantor, the Collateral
Agent and the issuer of any Pledged Uncertificated Security owned by such Grantor enter into an Issuer Control Agreement with respect thereto, (i) the Transaction Lien on such Pledged Uncertificated Security will be perfected, subject to no
prior Liens or rights of others (other than Permitted Collateral Liens), (ii) the Collateral Agent will have Control of such Pledged Uncertificated Security and (iii) assuming the Collateral Agent does not have notice of any adverse claim
to such Pledged Uncertificated Security (it being understood and agreed that as of the Closing Date, the Collateral Agent does not have notice of any adverse claim to such Pledged Uncertificated Security other than the ABL Administrative
Agent’s claim under the Security Documents (as defined in the ABL Credit Agreement)), the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303) thereof. 

(f) Perfection as to Security Entitlements. So long as the Financial Asset underlying any Security Entitlement owned by such
Grantor is credited to a Controlled Securities Account, (i) the Transaction Lien on such Security Entitlement will be perfected, subject to no prior Liens or rights of others (except Liens and rights of the relevant Securities Intermediary that
are Permitted Collateral Liens), (ii) the Collateral Agent will have Control of such Security Entitlement and (iii) assuming the Collateral Agent acquires its Security Entitlement with respect thereto without notice of any adverse claim
thereto (it being understood and agreed that as of the Closing Date, the Collateral Agent does not have notice of any adverse claim to such Security Entitlement), no action based on an adverse claim to such Security Entitlement or such Financial
Asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may be asserted against the Collateral Agent or any other Secured Party. 
 (g) Agreement as to Applicable Jurisdiction. In respect of all Security Entitlements owned by such Grantor, and all Pledged Securities Accounts to which the related Financial Assets are credited,
the related Securities Account Control Agreement will provide that the Securities Intermediary’s jurisdiction (determined as provided in UCC Section 8-110(e)) will at all times be located in the United States. 

(h) Delivery of Pledged Certificates. All certificates representing Pledged Certificated Securities, when delivered to the
Collateral Agent, will be in suitable form for transfer by delivery, or accompanied by duly executed instruments of transfer or assignment in blank, with signatures appropriately guaranteed, all in form and substance reasonably satisfactory to the
Collateral Agent. 
 (i) Communications. Upon the reasonable request of the Collateral Agent, each Grantor will promptly
give to the Collateral Agent copies of any notices and other communications received by it with respect to (i) Pledged Securities registered in the name of such Grantor or its nominee and (ii) Pledged

  
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Security Entitlements as to which such Grantor is the Entitlement Holder; provided that, with respect to any such notice or other communication that could reasonably be expected to
adversely affect the security interest of the Collateral Agent in such Pledged Securities or Pledged Securities Entitlements granted hereunder or the perfection thereof, the Collateral Agent shall be deemed to have made such request on the last day
of each fiscal quarter of the Borrower. 
 (j) Foreign Subsidiaries. A Grantor will not be obligated to comply with the
provisions of this Section at any time with respect to any voting Equity Interest in a Foreign Subsidiary if and to the extent (but only to the extent) that such voting Equity Interest is excluded from the Transaction Liens at such time pursuant to
the definition of “Excluded Equity Interests” and/or the comparable provisions of one or more Security Agreement Supplements. 
 (k) Certification of Limited Liability Company and Partnership Interests. Any limited liability company and any partnership controlled by any Grantor shall either (a) not include in its
operative documents any provision that any Equity Interests in such limited liability company or such partnership be a “security” as defined under Article 8 of the Uniform Commercial Code, or (b) certificate any Equity Interests in
any such limited liability company or such partnership. To the extent an interest in any limited liability company or partnership controlled by any Grantor and pledged hereunder is certificated or becomes certificated, each such certificate shall be
delivered to the Collateral Agent pursuant to Section 7(a) and such Grantor shall fulfill all other requirements under Section 7 applicable in respect thereof. 
 SECTION 8. Deposit Accounts. Each Grantor represents, warrants and covenants as follows: 
 (a) All cash owned by such Grantor shall be deposited, upon or promptly after receipt thereof, in one or more Controlled Deposit Accounts or an account that would be an Exempt Account immediately after
such deposit. 
 (b) In respect of each Controlled Deposit Account, the related Deposit Account Control Agreement will provide
that the Depositary Bank’s jurisdiction (determined as provided in UCC Section 9-304) will at all times be a jurisdiction in which Article 9 of the Uniform Commercial Code is in effect. 

(c) So long as the Collateral Agent has Control of a Controlled Deposit Account, the Transaction Lien on such Controlled Deposit Account
will be perfected, subject to no prior Liens or rights of others (except (x) the Depositary Bank’s right to deduct its normal operating charges and any uncollected funds previously credited thereto, (y) Permitted Collateral Liens and
(z) as provided in the ABL Intercreditor Agreement). 
 (d) The Asset Sale Proceeds Pledge Account shall be a Controlled
Deposit Account and in no event shall any proceeds of ABL Priority Collateral (as defined in the ABL Intercreditor Agreement) be deposited in the Asset Sale Proceeds Pledged Account. 

  
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 SECTION 9. Commercial Tort Claims. Each Grantor represents, warrants and
covenants as follows: 
 (a) In the case of an Original Grantor, Schedule 3 accurately describes, with the specificity required
to satisfy Official Comment 5 to UCC Section 9-108, each Material Commercial Tort Claim with respect to which such Original Grantor is the claimant as of the Closing Date. In the case of any other Grantor, Schedule 3 to its first Security
Agreement Supplement will accurately describe, with the specificity required to satisfy said Official Comment 5, each Material Commercial Tort Claim with respect to which such Grantor is the claimant as of the date on which it signs and delivers
such Security Agreement Supplement. 
 (b) If any Grantor acquires a Material Commercial Tort Claim after the Closing Date (in
the case of an Original Grantor) or the date on which it signs and delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor will promptly (and in any event within 10 Business Days) sign and deliver to the
Collateral Agent a Security Agreement Supplement granting a security interest in such Commercial Tort Claim (which shall be described therein with the specificity required to satisfy said Official Comment 5) to the Collateral Agent for the benefit
of the Secured Parties. 
 SECTION 10. Transfer of Record Ownership. At any time when an Event of Default shall have
occurred and be continuing, the Collateral Agent may (and to the extent that action by it is required, the relevant Grantor, if directed to do so by the Collateral Agent, will as promptly as practicable) cause each of the Pledged Securities (or any
portion thereof specified in such direction) to be transferred of record into the name of the Collateral Agent or its nominee. Each Grantor will take any and all actions reasonably requested by the Collateral Agent to facilitate compliance with this
Section. If the provisions of this Section are implemented, Section 7(b) shall not thereafter apply to any Pledged Security that is registered in the name of the Collateral Agent or its nominee. The Collateral Agent will promptly give to the
relevant Grantor copies of any notices and other communications received by the Collateral Agent with respect to Pledged Securities registered in the name of the Collateral Agent or its nominee. 

SECTION 11. Right to Vote Securities; Right to Proceeds of Insurance. (a) Unless an Event of Default shall have occurred
and be continuing, each Grantor shall have the right, from time to time, to vote and to give consents, ratifications and waivers with respect to any Pledged Security owned by it and the Financial Asset underlying any Pledged Security Entitlement
owned by it, and the Collateral Agent will, upon receiving a written request from such Grantor, deliver 

  
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to such Grantor or as specified in such request such proxies, powers of attorney, consents, ratifications and waivers in respect of any such Pledged Security that is registered in the name of the
Collateral Agent or its nominee or any such Pledged Security Entitlement as to which the Collateral Agent or its nominee is the Entitlement Holder, in each case as shall be specified in such request and be in form and substance satisfactory to the
Collateral Agent. 
 (b) If an Event of Default shall have occurred and be continuing, upon written notice thereof to the
Borrower, the Collateral Agent shall have the exclusive right to the extent permitted by law to vote, to give consents, ratifications and waivers and to take any other action with respect to the Pledged Investment Property, the other Pledged Equity
Interests and the Financial Assets underlying the Pledged Security Entitlements, with the same force and effect as if the Collateral Agent were the absolute and sole owner thereof, and each Grantor shall take all such action as the Collateral Agent
may reasonably request from time to time to give effect to such right. 
 (c) Upon the receipt by Collateral Agent of a request
from a Grantor that the Agent (i) turn over the proceeds of any policy of insurance of such Grantor on which the Agent is named as a loss payee or (ii) provide written instructions to the related insurer directing the insurer to pay the
proceeds thereof directly to such Grantor or its designee, Collateral Agent shall promptly (and in any event within two Business Days) turn over such proceeds or provide such written instructions in accordance with the request of such Grantor,
unless and to the extent (x) such proceeds are required to be applied to the repayment of the Obligations under the Credit Agreement at such time or (y) an Event of Default shall have occurred and be continuing. 

SECTION 12. Certain Cash Distributions. Cash Distributions with respect to assets held in a Collateral Account shall be
deposited and held therein, or withdrawn therefrom, as provided herein and in the Credit Agreement. Funds held in any Collateral Account may, until withdrawn, be invested and reinvested in such Permitted Investments as the relevant Grantor shall
request from time to time; provided that if an Event of Default shall have occurred and be continuing, the Collateral Agent may select such Permitted Investments. 
 SECTION 13. Remedies upon Event of Default. (a) If an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise (or cause its sub-agents to exercise) any
or all of the remedies available to it (or to such sub-agents) under the Loan Documents. 
 (b) Without limiting the generality
of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise on behalf of the Secured Parties all the rights of a secured party under the UCC (whether or not in effect in the jurisdiction where
such rights are exercised) with respect to any Collateral and, in addition, the Collateral Agent may, without being 

  
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required to give any notice, except as herein provided or as may be required by mandatory provisions of law, sell or otherwise dispose of the Collateral or any part thereof in one or more parcels
at public or private sale, at any exchange, broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such other terms as
the Collateral Agent may deem commercially reasonable, irrespective of the impact of any such sales on the market price of the Collateral. To the maximum extent permitted by applicable law, any Secured Party may be the purchaser of any or all of the
Collateral at any such sale and the Collateral Agent (as administrative agent for and representative of the Secured Parties), for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral
sold at any such public sale, shall be entitled to use and apply all of any part of the Obligations as a credit on account of the purchase price of any Collateral payable at such sale. Upon any sale of Collateral by the Collateral Agent (including
pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such
purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof. Each purchaser at any such sale shall
hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal that it now has or may at any time in the future
have under any rule of law or statute now existing or hereafter enacted. The Collateral Agent shall not be obliged to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. To the maximum extent permitted by law, each Grantor hereby waives
any claim against any Secured Party arising because the price at which any Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even if the Collateral Agent accepts the first
offer received and does not offer such Collateral to more than one offeree. The Collateral Agent may disclaim any warranty, as to title or as to any other matter, in connection with such sale or other disposition, and its doing so shall not be
considered adversely to affect the commercial reasonableness of such sale or other disposition. 
 (c) If the Collateral Agent
sells any of the Collateral upon credit, the Grantors will be credited only with payment actually made by the purchaser, received by the Collateral Agent and applied in accordance with Section 14 hereof. In the event the purchaser fails to pay
for the Collateral, the Collateral Agent may resell the same, subject to the same rights and duties set forth herein. 

  
 25 

 (d) Notice of any such sale or other disposition shall be given as required by applicable
law, rule or regulation. Each Grantor hereby agrees that 10 days’ written notice of any proposed sale or other disposition of Collateral by the Collateral Agent shall be reasonable. 

(e) For the purpose of enabling the Collateral Agent to exercise rights and remedies under this Agreement at such time as the Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent a license (exercisable without payment of royalty or other compensation to the Grantors and subject to any prior rights granted
by such Grantor to third parties), to use, license or sublicense any of the Collateral consisting of Intellectual Property now owned or hereafter acquired by such Grantor, 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 (solely to the extent permitted by the relevant licenses therefor) used for the compilation or printout thereof; provided, however, that any trademarks or
service marks licensed pursuant to the foregoing may be used only in connection with goods and services of similar type and similar or greater quality than those theretofore sold by such Grantor under such trademark or service mark. The use of such
license by the Collateral Agent may be exercised only upon the occurrence and during the continuation of an Event of Default; provided, however, that any license or sublicense entered into by the Collateral Agent in accordance herewith
shall be binding upon each Grantor notwithstanding any subsequent cure of an Event of Default. 
 SECTION 14.
Application of Proceeds. (a) If an Event of Default shall have occurred and be continuing, the Collateral Agent may apply (i) any cash held in the Collateral Accounts and (ii) the proceeds of any sale or other
disposition of all or any part of the Collateral to the Obligations, which application shall be made by the Collateral Agent (as administrative agent for the Secured Parties) in the following order (subject to the terms of the ABL Intercreditor
Agreement): 
 First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (other than principal and interest, but including all reasonable fees, disbursements and other charges of counsel under Section 9.05 of the Credit Agreement and amounts payable under Sections 2.14 through 2.21 of the
Credit Agreement) payable to the Administrative Agent or the Collateral Agent in its capacity as such; 

Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders (including all reasonable fees, disbursements and other charges of counsel under Section 9.05 of the Credit Agreement and amounts payable under Sections 2.14 through 2.21 of the Credit Agreement),
ratably among them in proportion to the amounts described in this clause Second payable to them; 

  
 26 

 Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on, and unpaid principal of, the Term Loans, the Obligations under Secured Hedge Agreements and the Obligations under Secured Cash Management Obligations, ratably among the Secured Parties in proportion to the respective
amounts described in this clause Third held by them; 
 Fourth, to the payment of all other Obligations of
the Loan Parties that are due and payable to the Administrative Agent, the Collateral Agent and the other Secured Parties on such date, ratably based upon the respective aggregate amounts of all such Obligations owing to the Administrative Agent,
the Collateral Agent and the other Secured Parties on such date; and 
 Last, the balance, if any, after all of the
Obligations have been paid in full, to the Borrower or as otherwise required by applicable law, rule or regulation. 
 (b) If at
any time any portion of any monies collected or received by the Collateral Agent would, but for the provisions of this Section 14(b), be payable pursuant to Section 14(a) in respect of a Contingent Obligation, the Collateral Agent shall
not apply any monies to pay such Contingent Obligation but instead shall request the holder thereof, at least 10 days before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum amount of such Contingent Obligation
if then ascertainable (e.g., in the case of a letter of credit, the maximum amount available for subsequent drawings thereunder). If the holder of such Contingent Obligation does not notify the Collateral Agent of the maximum ascertainable
amount thereof at least two Business Days before such distribution, such holder will not be entitled to share in such distribution. If such holder does so notify the Collateral Agent as to the maximum ascertainable amount thereof, the Collateral
Agent will allocate to such holder a portion of the monies to be distributed in such distribution, calculated as if such Contingent Obligation were outstanding in such maximum ascertainable amount. However, the Collateral Agent will not apply such
portion of such monies to pay such Contingent Obligation, but instead will hold such monies or invest such monies in Permitted Investments. All such monies and Permitted Investments and all proceeds thereof will constitute Collateral hereunder, but
will be subject to distribution in accordance with this Section 14(b) rather than Section 14(a). The Collateral Agent will hold all such monies and Permitted Investments and the net proceeds thereof in trust until all or part of such
Contingent Obligation becomes a Non-Contingent Obligation, whereupon the Collateral Agent at the request of the relevant Secured Party will apply the amount so held in trust to pay such Non-Contingent Obligation; provided that, if the other
Secured Obligations theretofore paid pursuant to the same clause of Section 14(a) (i.e., clause second  

  
 27 

 
or third) were not paid in full, the Collateral Agent will apply the amount so held in trust to pay the same percentage of such Non-Contingent Obligation as the percentage of such other
Secured Obligations theretofore paid pursuant to the same clause of Section 14(a). If (i) the holder of such Contingent Obligation shall advise the Collateral Agent that no portion thereof remains in the category of a Contingent Obligation
and (ii) the Collateral Agent still holds any amount held in trust pursuant to this Section 14(b) in respect of such Contingent Obligation (after paying all amounts payable pursuant to the preceding sentence with respect to any portions
thereof that became Non-Contingent Obligations), such remaining amount will be applied by the Collateral Agent in the order of priorities set forth in Section 14(a). 
 (c) In making the payments and allocations required by this Section, the Collateral Agent may rely upon information supplied to it pursuant to Section 18(c). All distributions made by the Collateral
Agent pursuant to this Section shall be final (except in the event of manifest error) and the Collateral Agent shall have no duty to inquire as to the application by any Secured Party of any amount distributed to it. 

SECTION 15. Fees and Expenses; Indemnification. (a) All expenses of protecting, storing, warehousing, insuring,
handling, maintaining and shipping any Collateral, all Taxes payable with respect to any Collateral (including any sale thereof), and all other payments required to be made by Collateral Agent to any Person to realize upon any Collateral, shall be
borne and paid by the Grantors. The Borrower will forthwith upon demand pay to the Collateral Agent: 
 (i) the
amount of any taxes that the Collateral Agent may have been required to pay by reason of the Transaction Liens or to free any Collateral from any other Lien thereon; 

(ii) the amount of any reasonable and documented out-of-pocket costs and expenses incurred in connection with the
development, preparation, execution and administration of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the consummation and
administration of the Transactions, including, without limitation, the reasonable fees, charges and disbursements of a single counsel to the Collateral Agent and Lenders (which shall be selected by the Collateral Agent) and, if applicable, one
special or local counsel in each applicable jurisdiction, as appropriate and, in the case of a conflict of interest, Secured Parties may engage and be reimbursed for additional counsel; and 

(iii) the amount required to pay or reimburse each Secured Party and the Collateral Agent for all its reasonable costs and
expenses incurred in connection with the enforcement of any rights under this 

  
 28 

 
Agreement, the other Loan Documents and any such other documents, including, without limitation, the fees and disbursements of one counsel selected by the Collateral Agent and, at any time after
and during the continuance of an Event of Default, of one counsel to the Lenders and, if applicable, special or local counsel in each applicable jurisdiction, as appropriate, and, in the case of a conflict of interest, Secured Parties may engage and
be reimbursed for additional counsel, as appropriate. 
 Any such amount not paid to the Collateral Agent on demand will bear interest for each
day thereafter until paid at the rate provided for in Section 2.07 of the Credit Agreement. 
 (b) If any transfer tax,
documentary stamp tax or other tax is payable in connection with any transfer or other transaction provided for in the Security Documents, the Borrower will pay such tax and provide any required tax stamps to the Collateral Agent or as otherwise
required by law. 
 (c) The Borrower shall indemnify each of the Secured Parties, their respective affiliates and the respective
directors, officers, agents and employees of the foregoing (each an “Indemnitee”) in accordance with Section 9.05 of the Credit Agreement. 
 SECTION 16. Authority to Administer Collateral. Each Grantor irrevocably appoints the Collateral Agent (and all Persons designated by the Collateral Agent) as its true and lawful attorney (and
agent in fact), with full power of substitution, in its name or in the name of such Grantor, any Secured Party or otherwise, for the sole use and benefit of the Secured Parties, but at the Borrower’s sole cost and expense, to the extent
permitted by law and without notice, to exercise, at any time and from time to time, all or any of the following powers with respect to all or any of such Grantor’s Collateral: 

(i) endorse a Grantor’s name on any proceeds of Collateral (including proceeds of insurance) that come into the
Collateral Agent’s possession or control; or 
 (ii) during the continuance of any Event of Default:

 (A) notify any Account Debtors of the assignment of their Accounts, demand and enforce payment of Accounts by
legal proceedings or otherwise, and generally exercise any rights and remedies with respect to Accounts; 
 (B)
demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue thereof, 

  
 29 

 (C) settle, adjust, modify, compromise, compound, discharge, release,
prosecute or defend any Accounts or other Collateral or any action or proceeding with respect thereto, 
 (D)
collect, liquidate and receive balances in Pledged Deposit Accounts or Pledged Securities Accounts, and take control, in any manner, of proceeds of Collateral; 
 (E) prepare, file and sign a Grantor’s name to a proof of claim or other document in a bankruptcy of an Account Debtor, or to any notice, assignment or satisfaction of Lien or similar document;

 (F) receive, open and dispose of mail addressed to a Grantor, and notify postal authorities to deliver any
such mail to an address designated by the Collateral Agent; 
 (G) endorse any Chattel Paper, Document,
Instrument, bill of lading, or other document or agreement relating to any Accounts, Inventory or other Collateral; 
 (H) use a Grantor’s stationery and sign its name to verifications of Accounts and notices to Account Debtors; 
 (I) use information contained in any data processing, electronic or information systems relating to Collateral; 
 (J) make and adjust claims under insurance policies; 
 (K) take any
action as may be necessary or appropriate to obtain payment under any letter of credit, banker’s acceptance or other instrument for which a Grantor is a beneficiary; 

(L) sell, lease, license or otherwise dispose of the same or the proceeds or avails thereof, as fully and effectually as
if the Collateral Agent were the absolute owner thereof, 
 (M) extend the time of payment of any or all thereof
and to make any allowance or other adjustment with reference thereto; and 
 (N) take all other actions as the
Collateral Agent deems appropriate to fulfill any Grantor’s obligations under the Loan Documents. 
 SECTION 17.
Limitation on Duty in Respect of Collateral. Beyond the exercise of reasonable care in the custody and preservation thereof, the Collateral 

  
 30 

 
Agent will have no duty as to any Collateral in its possession or control or in the possession or control of any sub-agent or bailee or any income therefrom or as to the preservation of rights
against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession or control if such Collateral is accorded
treatment substantially equal to that which it accords its own property, and will not be liable or responsible for any loss or damage to any Collateral, or for any diminution in the value thereof, by reason of any act or omission of any sub-agent or
bailee selected by the Collateral Agent in good faith, except to the extent that such liability arises from the Collateral Agent’s gross negligence or willful misconduct. 
 SECTION 18. General Provisions Concerning the Collateral Agent. 
 (a)
The Collateral Agent. The provisions of Article 8 of the Credit Agreement shall inure to the benefit of the Collateral Agent, and shall be binding upon all Grantors and all Secured Parties, in connection with this Agreement and the other
Security Documents. Without limiting the generality of the foregoing, (i) the Collateral Agent shall not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default has occurred and is continuing,
(ii) the Collateral Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Security Documents that the Collateral Agent is
required in writing to exercise by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.07 of the Credit Agreement), and (iii) except as expressly
set forth in the Loan Documents, the Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to disclose, any information relating to any Grantor that is communicated to or obtained by the bank serving as the
Collateral Agent or any of its Affiliates in any capacity. The Collateral Agent shall not be responsible for the existence, genuineness or value of any Collateral or for the validity, perfection, priority or enforceability of any Transaction Lien,
whether impaired by operation of law or by reason of any action or omission to act on its part under the Security Documents. The Collateral Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.07 of the Credit Agreement) or in the absence of its own gross negligence or willful misconduct. The
Collateral Agent shall be deemed not to have knowledge of any Event of Default unless and until written notice thereof is given to the Collateral Agent by the Borrower or a Secured Party. 

(b) Sub-Agents and Related Parties. The Collateral Agent may perform any and all its duties and exercise its rights and powers by
or through any one or more employees and sub-agents appointed by the Collateral Agent. The Collateral Agent and any such sub-agent may perform any and all its duties and exercise its 

  
 31 

 
rights and powers through their respective Related Parties. The Collateral Agent may consult with and employ Agent Professionals, and shall be entitled to act upon, and shall be fully protected
in any action taken in good faith reliance upon, any advice given by an Agent Professional. The exculpatory provisions of Section 17 and this Section shall apply to any such sub-agent and to the Related Parties of the Collateral Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities as well as activities of the Collateral Agent. The Collateral Agent shall not be responsible for the negligence or misconduct
of any agents, employees or Agent Professionals selected by it with reasonable care. 
 (c) Information as to Obligations and
Actions by Secured Parties. For all purposes of the Security Documents, including determining the amounts of the Obligations and whether an Obligation is a Contingent Obligation or not, or whether any action has been taken under any Secured
Agreement, the Collateral Agent will be entitled to rely on information from (i) its own records for information as to the Credit Parties, their Obligations and actions taken by them, (ii) any Secured Party for information as to its
Obligations and actions taken by it, to the extent that the Collateral Agent has not obtained such information from its own records, and (iii) the Borrower, to the extent that the Collateral Agent has not obtained information from the foregoing
sources. 
 (d) Refusal to Act. The Collateral Agent may refuse to act on any notice, consent, direction or instruction
from any Secured Parties or any agent, trustee or similar representative thereof that, in the Collateral Agent’s opinion, (i) is contrary to law or the provisions of any Security Document, (ii) may expose the Collateral Agent to
personal liability or (iii) is unduly prejudicial to Secured Parties not joining in such notice, consent, direction or instruction. 
 SECTION 19. Termination of Transaction Liens; Release of Collateral. (a) The Transaction Liens granted by each Guarantor shall terminate when its Secured Guarantee is released pursuant to
Section 2(c). 
 (b) The Transaction Liens granted by the Borrower shall terminate when all the Release Conditions are
satisfied. 
 (c) Notwithstanding the foregoing, the Transaction Liens with respect to property of the Borrower or any Guarantor
securing the Obligations will be automatically released, in whole or in part, to the extent permitted in Section 9.21(c) of the Credit Agreement. 
 (d) Upon any termination of a Transaction Lien or release of Collateral, the Collateral Agent will, subject to the terms of Section 9.21(d) of the Credit Agreement, execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence the termination of such Transaction Lien or the release of such Collateral, as the case may be, and will duly assign and

  
 32 

 
transfer to such Grantor any such Collateral that may be in the possession of the Collateral Agent and has not theretofore been sold or otherwise applied or released pursuant to this Agreement.

 SECTION 20. Additional Guarantors and Grantors. Any Subsidiary may and to the extent required by
Section 5.11(b) of the Credit Agreement, shall become a party hereto by signing and delivering to the Collateral Agent a Security Agreement Supplement, whereupon such Subsidiary shall become a “Guarantor” and a “Grantor” as
defined herein. 
 SECTION 21. Notices. Each notice, request or other communication given to any party hereunder
shall be given in accordance with subsection 9.01 of the Credit Agreement, and in the case of any such notice, request or other communication to a Grantor other than the Borrower, shall be given to it in care of the Borrower. 

SECTION 22. No Implied Waivers; Remedies Not Exclusive. No failure to exercise and no delay in exercising, on the part of any
party hereto, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or privilege. Without limiting the generality of the foregoing, the making of the Loan shall not be construed as a waiver of any Default or Event of Default, regardless of
whether the Collateral Agent or any Lender may have had notice or knowledge of such Default or Event of Default at the time. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law. 
 SECTION 23. Successors and Assigns. This Agreement is for the benefit of the
Collateral Agent and the Secured Parties. If all or any part of any Secured Party’s interest in any Obligation is assigned or otherwise transferred, the transferor’s rights hereunder, to the extent applicable to the obligation so
transferred, shall be automatically transferred with such obligation. This Agreement shall be binding on the Grantors and their respective successors and assigns. 
 SECTION 24. Amendments and Waivers. Neither this Agreement nor any provision hereof may be waived, amended, modified or terminated except pursuant to an agreement or agreements in writing
entered into by the Collateral Agent, with the consent of such Lenders as are required to consent thereto under Section 9.07 of the Credit Agreement. No such waiver, amendment or modification shall (i) be binding upon any Grantor, except
with its written consent, or (ii) affect the rights of a Secured Party (other than a Lender) hereunder more adversely than it affects the comparable rights of the Lenders hereunder, without the consent of such Secured Party. 

  
 33 

 SECTION 25. Choice of Law. This Agreement and any claims, controversy, dispute
or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the Transactions shall be construed in accordance with and governed by the law of the State of New York, without giving effect
to any conflict of law principles that result in the application of laws of another jurisdiction. 
 SECTION 26. Waiver
of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY SECURITY DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION. 
 SECTION 27. Severability. Any provision of any Security Document 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. 
 SECTION 28. ABL
Intercreditor Agreement. Notwithstanding anything herein to the contrary, the Liens and security interests granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent hereunder, in
each case, with respect to the Collateral are subject to the limitations and provisions of the ABL Intercreditor Agreement. In the event of any conflict between the terms of the ABL Intercreditor Agreement and the terms of this Agreement with
respect to the Collateral, the terms of the ABL Intercreditor Agreement shall govern and control; provided that the ABL Intercreditor Agreement shall not be construed, by its terms, to modify any security interest granted pursuant to
Section 3 hereof. To the extent that any “ABL Priority Collateral” (as defined in the ABL Intercreditor Agreement) is required pursuant to the terms of this Agreement to be delivered to the Collateral Agent, so long as the ABL
Intercreditor Agreement is in effect, delivery of such ABL Priority Collateral (as defined in, and pursuant to the terms of, the ABL Intercreditor Agreement) to the ABL Administrative Agent shall be deemed to satisfy such requirement. 

  
 34 

 [SIGNATURES FOLLOW] 

  
 35 

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

					
		 	SCHOOL SPECIALTY, INC.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Collateral Agent
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
	
	Guarantors:
		
		 	CALIFONE INTERNATIONAL, INC.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	CLASSROOMDIRECT.COM, LLC
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

  
 36 

					
		 	CHILDCRAFT EDUCATION CORP.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	DELTA EDUCATION, LLC
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	SPORTIME, LLC
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	PREMIER AGENDAS, INC.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		
		 	BIRD-IN-HAND WOODWORKS, INC.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

  
 37 

 SCHEDULE 1 
 EQUITY INTERESTS IN SUBSIDIARIES AND AFFILIATES 
 OWNED BY ORIGINAL
GRANTORS 
 (as of the Closing Date) 
  

									
	 Issuer
	  	Jurisdiction
of
Organization	  	Owner of
Equity Interest	  	Percentage
Owned	  	Number of
Shares or
Units
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 S-1-1

 SCHEDULE 2 
 INVESTMENT PROPERTY 
 (other than Equity Interests in Subsidiaries and
Affiliates) 
 OWNED BY ORIGINAL GRANTORS 
 (as of the Closing Date) 
 PART 1 — Securities 

 

									
	 Issuer
	  	Jurisdiction
of
Organization	  	Owner of
Securities	  	Amount
Owned	  	Type of
Security
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 PART 2 — Securities Accounts 
 The Original Grantors own Security Entitlements with respect to Financial Assets credited to the following Securities Accounts: 

 

					
	 Owner
	  	Securities
Intermediary	  	Account
Number
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

 SCHEDULE 3 
 MATERIAL COMMERCIAL TORT CLAIMS 
 Describe each existing Material Commercial Tort Claim
with the specificity required to satisfy Official Comment 5 to UCC Section 9-108. 

  
 S-3-1

 EXHIBIT A 
 to Security Agreement 
 SECURITY AGREEMENT SUPPLEMENT 

SECURITY AGREEMENT SUPPLEMENT dated as of             ,
        , between [NAME OF GRANTOR] (the “Grantor”) and CREDIT SUISSE AG, as Collateral Agent. 
 WHEREAS, School Specialty, Inc. (the “Borrower”), the other Guarantors party thereto and Credit Suisse AG, as Collateral Agent are parties to a Guarantee and Collateral Agreement dated as
of June 11, 2013 (as heretofore amended and/or supplemented, the “Security Agreement”) under which the Borrower secures all Obligations (as defined therein) and the Guarantors guarantee the Obligations and secure their
respective guarantees thereof; 
 WHEREAS, [name of Grantor] desires to become [is] a party to the Security Agreement as a
Guarantor and Grantor thereunder; and 
 WHEREAS, terms defined in the Security Agreement (or whose definitions are incorporated
by reference in Section 1 of the Security Agreement) and not otherwise defined herein have, as used herein, the respective meanings provided for therein; 
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Secured Guarantee.1 The Grantor unconditionally guarantees the full and punctual payment of each Obligation when due (whether at stated
maturity, upon acceleration or otherwise). The Grantor acknowledges that, by signing this Security Agreement Supplement and delivering it to the Collateral Agent, the Grantor becomes a “Guarantor” and “Grantor” for all purposes
of the Security Agreement and that its obligations under the foregoing Secured Guarantee are subject to all the provisions of the Security Agreement (including those set forth in Section 2 thereof) applicable to the obligations of a Guarantor
thereunder. 
  

	1 	Delete this Section if the Grantor is a Guarantor that is already a party to the Security Agreement. 

  
 A-1

 2. Grant of Transaction Liens. (a) In order to secure Obligations, including the
Obligations under the Secured Guarantee, as applicable, the Grantor grants to the Collateral Agent for the benefit of the Secured Parties a continuing security interest in all the following property of the Grantor, whether now owned or existing or
hereafter acquired or arising and regardless of where located (the “New Collateral”): 
 [describe property
being added to the Collateral]2 

(b) With respect to each right to payment or performance included in the Collateral from time to time, the Transaction
Lien granted therein includes a continuing security interest in (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to payment or performance or (y) secures any
such Supporting Obligation. 
 (c) The foregoing Transaction Liens are granted as security only and shall not
subject the Collateral Agent or any other Secured Party to, or transfer or in any way affect or modify, any obligation or liability of the Grantor with respect to any of the New Collateral or any transaction in connection therewith. 

3. Delivery of Collateral. Concurrently with delivering this Security Agreement Supplement to the Collateral Agent, the Grantor is
complying with the provisions of Section 7 of the Security Agreement with respect to Investment Property, in each case if and to the extent included in the New Collateral at such time. 

4. Party to Security Agreement. Upon delivering this Security Agreement Supplement to the Collateral Agent, the Grantor will
become a party to the Security Agreement and will thereafter have all the rights and obligations of a Guarantor and a Grantor thereunder and be bound by all the provisions thereof as fully as if the Grantor were one of the original parties thereto.

 5. Representations and Warranties. (a) The Grantor (a) is duly organized or formed, as the case may be,
validly existing and in good standing under the laws of the jurisdiction of its organization or formation, (b) has the requisite power and authority to own and operate its properties, to lease the properties it operates as lessee and to conduct
the business in which it is currently engaged as it is currently conducted, (c) is duly qualified as a foreign corporation 

 

	2 	If the Grantor is not already a party to the Security Agreement, clauses (i) through (xiii) of, and the proviso to, Section 3(a) of the Security
Agreement may be appropriate. 

  
 A-2

 
and in good standing under the laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification except to the extent that
the failure to so qualify could not, in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all applicable laws, rules or regulations 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 Grantor has
delivered a Perfection Certificate to the Collateral Agent. The information set forth therein is correct and complete as of the date hereof. 
 (c) The execution and delivery of this Security Agreement Supplement by the Grantor and the performance by it of its obligations under the Security Agreement as supplemented hereby are within its
corporate or other powers, have been duly authorized by all necessary corporate or other action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not contravene, or constitute a default under,
any provision of applicable law or regulation or of its organizational documents, or of any agreement, judgment, injunction, order, decree or other instrument binding upon it or result in the creation or imposition of any Lien (except a Transaction
Lien) on any of its assets. 
 (d) The Security Agreement as supplemented hereby constitutes a valid and binding
agreement of the Grantor, enforceable in accordance with its terms, except as limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. 
 (e) Each of the representations and warranties set forth in Sections 4 through 10 of the
Security Agreement is true as applied to the Grantor and the New Collateral. For purposes of the foregoing sentence, references in said Sections to a “Grantor” shall be deemed to refer to the Grantor, references to “Schedules” to
the Security Agreement shall be deemed to refer to the corresponding Schedules to this Security Agreement Supplement, references to “Collateral” shall be deemed to refer to the New Collateral, and references to the “Closing Date”
shall be deemed to refer to the date on which the Grantor signs and delivers this Security Agreement Supplement. 
 6.
Governing Law. This Security Agreement Supplement and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Security Agreement Supplement and the
Transactions shall be construed in accordance with and governed by the law of the State of New York, without giving effect to any conflict of law principles that result in the application of laws of another jurisdiction. 

  
 A-3

 [The remainder of this page has been intentionally left blank.] 

  
 A-4

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

			
	[NAME OF GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:
	
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Collateral Agent
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-5

 Schedule 1 
 to Security Agreement 
 Supplement 

EQUITY INTERESTS IN SUBSIDIARIES AND AFFILIATES 
 OWNED BY GRANTOR 
  

							
	 Issuer
	  	Jurisdiction
of
Organization	  	Percentage
Owned	  	Number of
Shares or 
Units
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

  
 A-6

 Schedule 2 
 to Security Agreement 
 Supplement 

INVESTMENT PROPERTY 
 (other than Equity Interests in Subsidiaries and Affiliates) 
 OWNED BY
GRANTOR 
 PART 1 — Securities 
  

							
	 Issuer
	  	Jurisdiction
of
Organization	  	Amount
Owned	  	Type of
Security
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 PART 2 — Securities Accounts 
 The Grantor owns Security Entitlements with respect to Financial Assets credited to the following Securities Accounts: 
  

			
	 Securities Intermediary
	  	Account
Number
		  	
		  	
		  	
		  	
		  	
		  	
		  	
		  	

  
 A-7

 EXHIBIT B 
 to Security Agreement 
 NOTICE OF GRANT OF SECURITY INTEREST IN
COPYRIGHTS 
 (Copyrights, Copyright Registrations, and Copyright Licenses) 

[DATE] 

WHEREAS, [name of Grantor], a
                     [corporation]3 (herein referred to as the “Grantor”) owns, or in the case of licenses is a party to, the Copyright
Collateral (as defined below); 
 WHEREAS, School Specialty, Inc. (the “Company”), the subsidiaries of Company
party thereto as Borrowers (together with Company, collectively, the “Borrowers”), the other Guarantors party thereto, the Lenders party thereto, and Credit Suisse AG, as Collateral Agent, are parties to a Credit Agreement dated as
of June 11, 2013 (as amended from time to time, the “Credit Agreement”); and 
 WHEREAS, pursuant to
(i) a Guarantee and Collateral Agreement dated as of June 11, 2013 (as amended and/or supplemented from time to time, the “Security Agreement”) among the Borrowers, the Guarantors party thereto and Credit Suisse AG, as
Collateral Agent for the Secured Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (including this Notice of Grant of
Security Interest in Copyrights), the Grantor has secured certain of its Obligations (the “Secured Obligations”) and guaranteed certain obligations of the Borrowers and the other Guarantors, as applicable, and secured such guarantee
(the “Grantor’s Secured Guarantee”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of the Grantor, including all right, title and interest of the Grantor
in, to and under the Copyright Collateral (as defined below); 
 NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Grantor hereby grants to the Grantee, to secure its Secured Obligations, including its Obligations under the Grantor’s Secured Guarantee, a continuing security interest in all of
Grantor’s right, title and interest in, to and under the following (all of the following items or types of property being herein collectively referred to as the “Copyright Collateral”), whether now owned or existing or
hereafter acquired or arising: 
 (i) each Copyright (as defined in the Security Agreement) owned by the Grantor,
including, without limitation, each Copyright registration or application therefor referred to in Schedule 1 hereto; 
  

	3 	Modify if entity is not a corporation. 

  
 B-1

 (ii) each Exclusive Copyright License (as defined in the Security Agreement)
to which the Grantor is a party, including, without limitation, each Exclusive Copyright License referred to in Schedule 1 hereto; and 
 (iii) all proceeds of, revenues from, and accounts and general intangibles arising out of, the foregoing, including, without limitation, all proceeds of and revenues from any claim by the Grantor against
third parties for past, present or future infringement of any Copyright owned by the Grantor (including, without limitation, any Copyright identified in Schedule 1), and all rights and benefits of the Grantor under any Exclusive Copyright License
(including, without limitation, any Exclusive Copyright License identified in Schedule 1). 
 The foregoing security interest is
granted in conjunction with the security interests granted by the Grantor to the Grantee pursuant to the Security Agreement, and is expressly subject to the terms and conditions thereof. The Grantor acknowledges and affirms that the rights and
remedies of the Grantee with respect to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth
herein and which shall override the terms hereof in the event of a conflict. 
 This Notice of Grant of Security Interest in
Copyrights has been executed and delivered by the Grantor for the purpose of recording the grant of security interest herein with the United States Copyright Office (and any successor office). 

This Notice of Grant of Security Interest in Copyrights may be executed in counterparts, each of which will be deemed an original, but
all of which together constitute one original. 
 [The remainder of this page has been intentionally left blank.] 

  
 B-2

 IN WITNESS WHEREOF, the Grantor has caused this Notice of Grant of Security Interest in
Copyrights to be duly executed by its officer thereunto duly authorized as of the date first written above. 
  

			
	[NAME OF GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 as Collateral Agent

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 B-3

 Schedule 1 
 to Copyright 
 Security Agreement 

[NAME OF GRANTOR] 
 U.S. COPYRIGHT REGISTRATIONS 
  

			
	 Registration No.
	  	 Title

		  	
		  	
		  	
		  	
		  	
		  	

 EXCLUSIVE COPYRIGHT LICENSES 

 

							
	 Name, Date and
 Parties to
 Agreement
	  	 Title(s) of
 Works of
 Authorship
	  	 Copyright
 Registration
 No(s).
	  	 Copyright
 Owner(s)

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

  
 B-4

 EXHIBIT C 
 to Security Agreement 
 NOTICE OF GRANT OF SECURITY INTEREST IN PATENTS

 (Patents, Patent Applications and Patent Licenses) 

[DATE] 

WHEREAS, [name of Grantor], a
                     [corporation]4 (herein referred to as the “Grantor”) owns, or in the case of licenses is a party to, the Patent
Collateral (as defined below); 
 WHEREAS, School Specialty, Inc. (the “Company”), the subsidiaries of Company
party thereto as Borrowers (together with Company, collectively, the “Borrowers”), the other Guarantors party thereto, the Lenders party thereto, and Credit Suisse AG, as Collateral Agent, are parties to a Credit Agreement dated as
of June 11, 2013 (as amended from time to time, the “Credit Agreement”); and 
 WHEREAS, pursuant to
(i) a Guarantee and Collateral Agreement dated as of June 11, 2013 (as amended and/or supplemented from time to time, the “Security Agreement”) among the Borrowers, the Guarantors party thereto and Credit Suisse AG, as
Collateral Agent for the Secured Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (including this Notice of Grant of
Security Interest in Patents), the Grantor has secured certain of its Obligations (the “Secured Obligations”) and guaranteed certain obligations of the Borrowers and the other Guarantors, as applicable and secured such guarantee
(the “Grantor’s Secured Guarantee”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of the Grantor, including all right, title and interest of the Grantor
in, to and under the Patent Collateral (as defined below); 
 NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Grantor hereby grants to the Grantee, to secure its Secured Obligations, including its Obligations under the Grantor’s Secured Guarantee, a continuing security interest in all of the
Grantor’s right, title and interest in, to and under the following (all of the following items or types of property being herein collectively referred to as the “Patent Collateral”), whether now owned or existing or hereafter
acquired or arising: 
 (i) each Patent (as defined in the Security Agreement) owned by the Grantor, including,
without limitation, each Patent referred to in Schedule 1 hereto; and 
 (ii) all proceeds of and revenues from
the foregoing, including, without limitation, all proceeds of and revenues from any claim by the Grantor against third parties for past, present or future infringement of any Patent owned by the Grantor (including, without limitation, any Patent
identified in Schedule 1 hereto). 
  

	4 	Modify if entity is not a corporation. 

  
 C-1

 The foregoing security interest is granted in conjunction with the security interests
granted by the Grantor to the Grantee pursuant to the Security Agreement, and is expressly subject to the terms and conditions thereof. The Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect to the security
interest in the Patent Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein and which shall override the terms hereof in the
event of a conflict. 
 This Notice of Grant of Security Interest in Patents has been executed and delivered by the Grantor for
the purpose of recording the grant of security interest herein with the United States Patent and Trademark Office (and any successor office). 
 This Notice of Grant of Security Interest in Patents may be executed in counterparts, each of which will be deemed an original, but all of which together constitute one original. 

[The remainder of this page has been intentionally left blank.] 

  
 C-2

 IN WITNESS WHEREOF, the Grantor has caused this Notice of Grant of Security Interest in
Patents to be duly executed by its officer thereunto duly authorized as of the date first written above. 
  

			
	[NAME OF GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 as Collateral Agent

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 C-3

 Schedule 1 
 to Patent 
 Security Agreement 

[NAME OF GRANTOR] 
 U.S. PATENTS AND DESIGN PATENTS 
  

							
	 Patent No.
	  	Issue Date	  	Country	  	Title
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 U.S. PATENT APPLICATIONS 

 

							
	 Serial No.
	  	 Country
	  	 Application

Date
	  	 Title

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

  
 C-4

 EXHIBIT D 
 to Security Agreement 
 NOTICE OF GRANT OF SECURITY INTEREST IN
TRADEMARKS 
 (Trademarks, Trademark Registrations, Trademark 

Applications and Trademark Licenses) 
 [DATE] 
 WHEREAS, [name of Grantor], a
                     [corporation]5 (herein referred to as the “Grantor”) owns, or in the case of licenses is a party to, the Trademark
Collateral (as defined below); 
 WHEREAS, School Specialty, Inc. (the “Company”), the subsidiaries of Company
party thereto as Borrowers (together with Company, collectively, the “Borrowers”), the other Guarantors party thereto, the Lenders party thereto, and Credit Suisse AG, as Collateral Agent, are parties to a Credit Agreement dated as
of June 11, 2013 (as amended from time to time, the “Credit Agreement”); and 
 WHEREAS, pursuant to
(i) a Guarantee and Collateral Agreement dated as of June 11, 2013 (as amended and/or supplemented from time to time, the “Security Agreement”) among the Borrowers, the Guarantors party thereto and Credit Suisse AG, as
Collateral Agent for the Secured Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (including this Notice of Grant of
Security Interest in Trademarks), the Grantor has secured certain of its Obligations (the “Secured Obligations”) and guaranteed certain obligations of the Borrowers and the other Guarantors, as applicable, and secured such guarantee
(the “Grantor’s Secured Guarantee”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of the Grantor, including all right, title and interest of the Grantor
in, to and under the Trademark Collateral (as defined below); 
 NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Grantor hereby grants to the Grantee, to secure its Secured Obligations, including its Obligations under the Grantor’s Secured Guarantee, a continuing security interest in all of the
Grantor’s right, title and interest in, to and under the following (all of the following items or types of property being herein collectively referred to as the “Trademark Collateral”), whether now owned or existing or
hereafter acquired or arising: 
 (i) each Trademark (as defined in the Security Agreement) owned by the Grantor,
including, without limitation, each Trademark registration and application referred to in Schedule 1 hereto, and all of the goodwill of the business connected with the use of, or symbolized by, each Trademark; and 

(ii) all proceeds of and revenues from the foregoing, including, without limitation, all proceeds of and revenues from any
claim by the Grantor against third parties for past, present or future unfair competition with, or violation of intellectual property rights in connection with or injury to, or infringement or dilution of, any Trademark owned by the Grantor
(including, without limitation, any Trademark identified in Schedule 1 hereto); provided that no security interest shall be granted in any United States intent-to-use Trademark applications to the extent that, and solely during the period in
which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use Trademark applications under applicable federal law. 

 

	5 	Modify if entity is not a corporation. 

  
 D-1

 The foregoing security interest is granted in conjunction with the security interests
granted by the Grantor to the Grantee pursuant to the Security Agreement, and is expressly subject to the terms and conditions thereof. The Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect to the security
interest in the Trademark Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein and which shall override the terms hereof in
the event of a conflict. 
 This Notice of Grant of Security Interest in Trademarks has been executed and delivered by the
Grantor for the purpose of recording the grant of security interest herein with the United States Patent and Trademark Office (and any successor office). 
 This Notice of Grant of Security Interest in Trademarks may be executed in counterparts, each of which will be deemed an original, but all of which together constitute one original. 

IN WITNESS WHEREOF, the Grantor has caused this Notice of Grant of Security Interest in Trademarks to be duly executed by its officer
thereunto duly authorized as of the date first written above. 

  
 D-2

 
			
	[NAME OF GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 as Collateral Agent

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 D-3

 Schedule 1 
 to Trademark 
 Security Agreement 

[NAME OF GRANTOR] 
 U.S. TRADEMARK REGISTRATIONS 
  

					
	 TRADEMARK
	  	REG. NO.	  	REG. DATE
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

 U.S. TRADEMARK APPLICATIONS 

 

					
	 TRADEMARK
	  	APP. NO.	  	APP. DATE
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

  
 D-4

 EXHIBIT E 
 to Security Agreement 
 PERFECTION CERTIFICATE1 

June 11, 2013 
 Reference is hereby made to (i) that certain Guarantee and Collateral Agreement, dated as of the date hereof (the “ABL Security Agreement”), among SCHOOL SPECIALTY, INC., a Wisconsin
corporation (“Company”), as a borrower, the subsidiaries of Company party thereto as borrowers, the other guarantors party thereto and BANK OF AMERICA, N.A., as collateral agent (the “ABL Agent”), and (ii) that
certain Guarantee and Collateral Agreement, dated as of the date hereof (the “Term Loan Security Agreement” and the Term Loan Security Agreement, together with the ABL Security Agreement, each a “Security
Agreement”), among Company, as the borrower, the subsidiaries of Company party thereto as guarantors and CREDIT SUISSE AG, as collateral agent (the “Term Loan Agent” and the Term Loan Agent, together with the ABL Agent,
each an “Agent”). Capitalized terms used but not defined herein have the meanings assigned in each applicable Security Agreement. 
 As used herein, the term “Companies” means each Grantor (as defined in the Security Agreement). 
 The undersigned hereby certify to each Agent as follows: 
 1. Names.
(a) The exact legal name of each Company, as such name appears in its respective certificate of incorporation or any other organizational document, is set forth in Schedule 1(a). Each Company is (i) the type of entity disclosed next
to its name in Schedule 1(a) and (ii) a registered organization except to the extent disclosed in Schedule 1(a). Also set forth in Schedule 1(a) is the organizational identification number, if any, of each Company that is a
registered organization, the federal taxpayer identification number of each Company and the jurisdiction of formation of each Company. 
 (b) Set forth in Schedule 1(b) hereto is any other corporate or organizational names each Company has had in the past five years, together with the date of the relevant change. 

(c) Set forth in Schedule 1(c) is a list of all other names (including trade names or similar appellations) used by
each Company, or any other business or organization to which each Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, at any 

 

	1 	To be conformed to final agreed form of Perfection Certificate. 

  
 E-1

 
time in the past five years. Also set forth in Schedule 1(c) is the information required by Section 1 of this certificate for any other business or organization to which each
Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, at any time in the past five years. Except as set forth in Schedule 1(c), no Company has changed its
jurisdiction of organization at any time during the past twelve months. 
 2. Current Locations. (a) The chief
executive office of each Company is located at the address set forth in Schedule 2(a) hereto. 
 (b) Set
forth in Schedule 2(b) are all locations where each Company maintains any books or records relating to any Account. 
 (c) Set forth in Schedule 2(c) hereto are all other locations where each Company maintains any of the Collateral consisting of inventory or equipment, in each case with an aggregate value in excess
of $250,000 at any one location. 
 (d) Set forth in Schedule 2(d) hereto are the names and addresses of
all persons or entities other than each Company, such as lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper,
inventory or equipment, in each case with an aggregate value in excess of $250,000 at any one location. 
 3. Prior
Locations. (a) Set forth in Schedule 3(a) is the information required by Schedule 2(a) or Schedule 2(b) with respect to each location or place of business previously maintained by any Company at any time during the past
four months. 
 (b) Set forth in Schedule 3(b) is the information required by Schedule 2(c) or
Schedule 2(d) with respect to each other location at which, or other person or entity with which, any of the Collateral consisting of inventory or equipment has been previously held at any time during the past twelve months. 

4. UCC Filings. Financing statements attached as Schedule 4 have been prepared for filing in the proper Uniform Commercial
Code filing offices in the jurisdictions identified in Schedule 5 hereof. 
 5. Schedule of Filings. Attached
hereto as Schedule 5 is a schedule of the appropriate filing offices for the Uniform Commercial Code financing statements attached hereto as Schedule 4. 
 6. Termination Statements. Attached hereto as Schedule 6(a) are the duly authorized termination statements in the appropriate form for filing in each applicable jurisdiction identified in
Schedule 6(b) hereto with respect to each Lien described therein. 
 7. Stock Ownership and Other Equity
Interests. Attached hereto as Schedule 7(a) is a true and correct list of each of all of the authorized, and the issued and outstanding, stock, partnership interests, limited liability company membership interests or other equity interest
of each Company and its Subsidiaries and the record and beneficial owners of such stock, partnership interests, membership interests or other equity interests. 

  
 E-2

 8. Instruments and Tangible Chattel Paper. Attached hereto as Schedule 8 is a
true and correct list of all promissory notes, instruments (other than checks to be deposited in the ordinary course of business), tangible chattel paper, electronic chattel paper and other evidence of indebtedness, in each case in excess of
$250,000 on an individual basis, held by each Company as of the closing date, including all intercompany notes between or among any two or more Companies. 
 9. Intellectual Property. (a) Attached hereto as Schedule 9(a) is a schedule setting forth all of each Company’s Patents and Trademarks (each as defined in the Security Agreement)
issued, registered or applied for issuance or registration with the United States Patent and Trademark Office, including the name of the registered owner and the registration or application number, as applicable, of each such Patent and Trademark
owned by each Company. 
 (b) Attached hereto as Schedule 9(b) is a schedule setting forth all titles of
each Company’s United States Copyrights (as defined in the Security Agreement), including the name of the registered owner and the registration number of each such Copyright. 

(c) [Attached hereto as Schedule 9(c) is a schedule setting forth all of each Company’s Exclusive Copyright
Licenses (as defined in the Security Agreement) including in each case (i) the name and date of and the parties to such Exclusive Copyright License and (ii) to the extent referenced in such Exclusive Copyright License, the titles and the
United States Copyright registration numbers of all works of authorship or copyrights that are the subject of such Exclusive Copyright License.]2 
 10. Commercial Tort Claims. Attached hereto as Schedule 10 is a true and correct list of all Commercial Tort Claims (as defined in the Security Agreement) held by each Company, with a value
reasonably estimated to exceed $250,000 on an individual basis, including a brief description thereof. 
 11. Deposit
Accounts, Securities Accounts and Commodity Accounts. Attached hereto as Schedule 11 is a true and complete list of all Deposit Accounts, Securities Accounts and Commodity Accounts (each as defined in the Security Agreement) maintained by
each Company (excluding any bankruptcy reserve and distribution accounts established in connection with the Plan of Reorganization), including the name of each institution where each such account is held, the type of each such account and the name
of each entity that holds each account. 
  

	2 	Not required to be included in the Perfection Certificate delivered at Closing. 

  
 E-3

 12. Letter-of-Credit Rights. Attached hereto as Schedule 12 is a true and
correct list of all Letters of Credit issued in favor of each Company, as beneficiary thereunder, in each case with a face amount in excess of $250,000. 
 [The Remainder of this Page has been intentionally left blank] 

  
 E-4

 IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of the date first
written above. 
  

			
	[GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  
 E-5

 EXHIBIT F 
 to Security Agreement 
 ISSUER CONTROL AGREEMENT 

ISSUER CONTROL AGREEMENT dated as of             ,
         among                      (the “Grantor”), CREDIT SUISSE AG, as Collateral Agent
under the Guarantee and Collateral Agreement, dated as of June 11, 2013, among the Grantor, CREDIT SUISSE AG and the other parties thereto (as amended, restated, supplemented or otherwise modified from time to time, the “First Lien
Security Agreement”) (in such capacity, the “First Lien Agent”), BANK OF AMERICA, N.A., as Agent under the Guarantee and Collateral Agreement, dated as of June 11, 2013, among the Grantor, BANK OF AMERICA, N.A. and the
other parties thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Security Agreement” and, together with the First Lien Security Agreement, the “Security
Agreements”) (in such capacity, the “Second Lien Agent”, and together with the First Lien Agent, the “Agents”, and each, an “Agent”) and
                     (the “Issuer”). All references herein to the “UCC” refer to the Uniform Commercial Code as in
effect from time to time in [Issuer’s jurisdiction of incorporation]. 
 W I T N E S S E T H : 

WHEREAS, the Grantor is the registered holder of [specify Pledged Uncertificated Securities issued by the Issuer] issued by the Issuer
(the “Securities”); 
 WHEREAS, pursuant to the Security Agreements, the Grantor has granted to the Agents a
continuing security interest (the “Transaction Lien”) in all right, title and interest of the Grantor in, to and under the Securities, whether now existing or hereafter arising; and 

WHEREAS, the parties hereto are entering into this Agreement in order to perfect the Transaction Lien on the Securities; 

NOW, THEREFORE, the parties hereto agree as follows: 
 Section 1. Nature of Securities. The Issuer confirms that (i) the Securities are “uncertificated securities” (as defined in Section 8-102 of the UCC) and (ii) the
Grantor is registered on the books of the Issuer as the registered holder of the Securities. 
 Section 2. Instructions.
(i) The Issuer agrees to comply with any “instruction” (as defined in Section 8-102 of the UCC) originated by the Controlling Secured Party and relating to the Securities without further consent by the Grantor or any other
person; provided that notwithstanding the foregoing provisions of this Section 2 or any provisions herein to the contrary, prior to the Issuer’s receipt of a Notice of Termination (defined below) from the First Lien Agent, the
Issuer shall not comply with any such instructions from the Second Lien Agent unless such instructions are accompanied by a written approval thereof of the First Lien Agent. The Grantor consents to the foregoing agreement by the Issuer. 

(ii) As used herein, the term “Controlling Secured Party” means the First Lien Agent until such time as
the Issuer has received written notice, in substantially the form attached as Annex A hereto (a “Notice of Termination”), from the First Lien Agent stating in substance that henceforth the Second Lien Agent will be the Controlling
Secured Party, and has had a reasonable time (not to exceed one (1) Business Day) to act thereon, at which time the Second Lien Agent will replace the First Lien Agent as the Controlling Secured Party for purposes of this Agreement and the
First Lien Agent shall have no further rights (including, without limitation, ability to give instructions pursuant to Section 2(i)) or obligations under this Agreement, other than obligations which arose or which derive from events which
occurred while the First Lien Agent was the Controlling Secured Party. Until the First Lien Agent has delivered a Notice of Termination, the Second Lien Agent irrevocably instructs the Issuer to adhere to the instructions of the First Lien Agent.

  
 6 

 Section 3. Conflicting Orders or Instructions. Notwithstanding anything to the
contrary contained herein, if at any time the Issuer shall receive conflicting orders or instructions from the Grantor and either Agent, the Issuer shall follow the orders or instructions of such Agent, not the Grantor. 

Section 4. Waiver of Lien; Waiver of Set-off. The Issuer waives any security interest, lien or right of set-off that it may
now have or hereafter acquire in or with respect to the Securities. The Issuer’s obligations in respect of the Securities will not be subject to deduction, set-off or any other right in favor of any person other than the Agents. 

Section 5. Choice of Law. This Agreement shall be governed by the laws of [Issuer’s jurisdiction of incorporation].

 Section 6. Conflict with Other Agreements. There is no agreement (except this Agreement) between the Issuer and
the Grantor with respect to the Securities [except for [identify any other existing agreements] (the “Existing Other Agreements”)]. In the event of any conflict between this Agreement (or any portion hereof) and any other agreement
[(including any Existing Other Agreement)] between the Issuer and the Grantor with respect to the Securities, whether now existing or hereafter entered into, the terms of this Agreement shall prevail. 

Section 7. Amendments. No amendment or modification of this Agreement or waiver of any right hereunder shall be binding on
any party hereto unless it is in writing and is signed by all the parties hereto. 
 Section 8. Notice of Adverse
Claims. Except for the claims and interests of the Agents and the Grantor in the Securities, the Issuer does not know of any claim to, or interest in, the Securities. If any person asserts any lien, encumbrance or adverse claim (including any
writ, garnishment, judgment, attachment, execution or similar process) against the Securities, the Issuer will promptly notify the Secured Party and the Grantor thereof. 

  
 7 

 Section 9. Maintenance of Securities. In addition to, and not in lieu of, the
obligation of the Issuer to honor instructions as agreed in Section 2 hereof, the Issuer agrees as follows: 

(i) Grantor Instructions; Notice of Exclusive Control. So long as the Issuer has not received a Notice of Exclusive
Control (as defined below), the Issuer may comply with instructions of the Grantor or any duly authorized agent of the Grantor in respect of the Securities. After the Issuer receives a written notice from the Controlling Secured Party that it is
exercising exclusive control over the Securities (a “Notice of Exclusive Control”), the Issuer will cease complying with instructions of the Grantor or any of its agents.2 
 (ii) Non-Cash Dividends and Distributions. The Issuer shall deliver to the Controlling Secured Party all non-cash dividends, interest and other non-cash distributions paid or made upon or with
respect to the Securities. 
 (iii) Voting Rights. Until the Issuer receives a Notice of Exclusive
Control, the Grantor shall be entitled to direct the Issuer with respect to voting the Securities. 
 (iv)
Statements and Confirmations. The Issuer will promptly send copies of all statements and other correspondence concerning the Securities simultaneously to each of the Grantor and the Agents at their respective addresses specified in
Section 12 hereof. 
 (v) Tax Reporting. All items of income, gain, expense and loss recognized in
respect of the Securities shall be reported to the Internal Revenue Service and all state and local taxing authorities under the name and taxpayer identification number of the Grantor. 

Section 10. Representations, Warranties and Covenants of the Issuer. The Issuer makes the following representations,
warranties and covenants: 
 (i) This Agreement is a valid and binding agreement of the Issuer enforceable in
accordance with its terms. 
 (ii) The Issuer has not entered into, and until the termination of this Agreement
will not enter into, any agreement with any other person relating to the Securities pursuant to which it has agreed, or will agree, to comply with instructions (as defined in Section 8-102 of the UCC) of such person. The Issuer has not entered
into any other agreement with the Grantor or either Agent to limit or condition the obligation of the Issuer to comply with instructions as agreed in Section 2 hereof. 
 Section 11. Successors. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. 

Section 12. Notices. Each notice, request or other communication given to any party hereunder shall be in writing (which term
includes facsimile or other electronic transmission) 
  

	2 	Delete subsection (i) if the Grantor will not be permitted to sell the Securities. 

  
 8 

 
and shall be effective (i) when delivered to such party at its address specified below, (ii) when sent to such party by facsimile or other electronic transmission, addressed to it at
its facsimile number or electronic address specified below, and such party sends back an electronic confirmation of receipt or (iii) ten days after being sent to such party by certified or registered United States mail, addressed to it at its
address specified below, with first class or airmail postage prepaid: 
 Grantor: 

First Lien Agent: 
 Second Lien Agent: 
 Issuer: 

Any party may change its address, facsimile number and/or e-mail address for purposes of this Section by giving notice of such change to the other
parties in the manner specified above. 
 Section 13. Termination. The rights and powers granted herein to the
Agents (i) have been granted in order to perfect the Transaction Lien, (ii) are powers coupled with an interest and (iii) will not be affected by any bankruptcy of the Grantor or any lapse of time. The obligations of the Issuer to the
First Lien Agent hereunder shall continue in effect until the security interest of the First Lien Agent in the Securities has been terminated pursuant to the terms of the First Lien Security Agreement and the First Lien Agent has notified the Issuer
of such termination by delivering to the Issuer a Notice of Termination. The obligations of the Issuer to the Second Lien Agent pursuant to this Agreement shall continue in effect until the security interest of the Second Lien Agent in the
Securities has been terminated pursuant to the terms of the Second Lien Security Agreement and the Second Lien Agent has notified the Issuer of such termination by delivering to the Issuer a Notice of Termination. Each Agent agrees to provide a
Notice of Termination in substantially the form of Annex B hereto to the Issuer, with a copy to the Grantor, upon the request of the Grantor on or after the termination of such Agent’s security interest in the Securities pursuant to the terms
of the applicable Security Agreement. 
 Section 14. Counterparts. This Agreement may be executed in any number of
counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. 
 (remainder of page intentionally blank; signature pages follow) 

  
 9 

 
			
	[NAME OF GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:
	
	 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 as First Lien Agent

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
	
	 BANK OF AMERICA, N.A.,
 as Second Lien Agent

		
	By:	 	  

		 	Name:
		 	Title:
	
	[NAME OF ISSUER]
		
	By:	 	  

		 	Name:
		 	Title:

  
 10 

 Exhibit A 
 [Letterhead of Controlling Secured Party] 
 [Date] 

[Name and Address of Issuer] 
 Attention:
                     
 Re:
Notice of Exclusive Control 
 Ladies and Gentlemen: 
 As referenced in the Issuer Control Agreement dated as of             ,          among [name of
Grantor], CREDIT SUISSE AG, BANK OF AMERICA, N.A. and you (a copy of which is attached), we notify you that we will hereafter exercise exclusive control over [specify Pledged Uncertificated Securities] registered in the name of [name of Grantor]
(the “Securities”). You are instructed not to accept any directions or instructions with respect to the Securities from any person other than the undersigned unless otherwise ordered by a court of competent jurisdiction. 

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

 

					
	Very truly yours,
		
		 	 [CONTROLLING SECURED PARTY],
 as Controlling Secured Party

			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

 cc: [name of Grantor] 

  
 11 

 ANNEX A 
 TO ISSUER ACCOUNT CONTROL AGREEMENT 
 [Letterhead of the applicable Agent]

 [Date] 
 [Name and
Address of Issuer] 
 Attention: 
 Re: Notice of Termination of Issuer Control Agreement  
 This letter serves
as notice to the Issuer in accordance with Section 13 of the Issuer Control Agreement dated as of [—], [—] (the
“Agreement”) among [name of Grantor], you, CREDIT SUISSE AG and BANK OF AMERICA, N.A. (a copy of which is attached) (capitalized terms used but not defined herein shall have the meaning assigned thereto in the Agreement) that
[each Agent][the First Lien Agent][the Second Lien Agent] is hereby permanently releasing its control over the Securities and releases the Issuer from any further obligation to comply with instructions originated by [each Agent][the First Lien
Agent][the Second Lien Agent] with respect to the Securities. [[The Agreement is terminated and you have no further obligations to the Agents pursuant to the Agreement.]8 [The Agreement is terminated and you have no further obligations to the [First Lien Agent][Second Lien Agent] pursuant
to the Agreement.]9 Notwithstanding any previous
instructions to you, you are hereby instructed to accept all future directions with respect to the Securities from [name of Grantor]]10 [The Agreement shall remain in effect until you are in receipt of notices in the form of this letter from 

 

	8 	Use if from both Agents. 

	9 	Use if from one agent, and the other Agent has previously delivered a Notice of Termination to the Financial Institution. 

	10 	Use if from both Agents, or if the other Agent has previously delivered a Notice of Termination to the Financial Institution. 

  
 F-1

 
both the First Lien Agent and the Second Lien Agent. You have no further obligations to the [First Lien Agent][Second Lien Agent]]11. This notice terminates any obligations you may have to the undersigned with respect to the Securities, however
nothing contained in this notice shall alter any obligations which you may otherwise owe to [name of Grantor] pursuant to any other agreement. 
  

			
	Very truly yours,
	
	[CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as First Lien Agent
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:]
	
	[BANK OF AMERICA, N.A., as Second Lien Agent
		
	By:	 	  

		
	Name:	 	
	Title:]	 	

  

	11 	Use if from one Agent, and the other Agent has not delivered a Notice of Termination to the Financial Institution. 

  
 F-2EX-10.1

 Exhibit 10.1 
 EXECUTION VERSION 
  

 
 ASSET PURCHASE AGREEMENT

 Dated as of June 17, 2013 
 By and Among 
 Orchard Supply Company, LLC 

as Purchaser, 
 and 
 Orchard Supply Hardware Stores Corporation 

as Seller 

and 

Orchard Supply Hardware LLC and OSH Properties LLC 
 as Company Subsidiaries 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	ARTICLE I.	 	 PURCHASE AND SALE OF THE PURCHASED ASSETS; ASSUMPTION OF ASSUMED LIABILITIES
	  	 	2	  
			
	 1.1
	 	Purchase and Sale of the Purchased Assets	  	 	2	  
			
	 1.2
	 	Excluded Assets	  	 	4	  
			
	 1.3
	 	Assumption of Liabilities	  	 	5	  
			
	 1.4
	 	Excluded Liabilities	  	 	6	  
			
	 1.5
	 	Post Closing Liabilities	  	 	8	  
			
	 1.6
	 	Assumption/Rejection of Certain Contracts	  	 	8	  
			
	ARTICLE II.	 	 CONSIDERATION
	  	 	10	  
			
	 2.1
	 	Consideration	  	 	10	  
			
	 2.2
	 	Working Capital; Adjustment to Purchase Price	  	 	10	  
			
	 2.3
	 	Disputes Concerning Adjustment	  	 	11	  
			
	 2.4
	 	Deposit	  	 	12	  
			
	ARTICLE III.	 	 CLOSING AND TERMINATION
	  	 	12	  
			
	 3.1
	 	Closing	  	 	12	  
			
	 3.2
	 	Closing Deliveries by Sellers	  	 	12	  
			
	 3.3
	 	Closing Deliveries by Purchaser	  	 	14	  
			
	 3.4
	 	Termination of Agreement	  	 	14	  
			
	 3.5
	 	Procedures Upon Termination	  	 	16	  
			
	 3.6
	 	Effect of Termination	  	 	16	  
			
	ARTICLE IV.	 	 REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	  	 	16	  
			
	 4.1
	 	Organization and Qualification	  	 	16	  
			
	 4.2
	 	Authorization of Agreement	  	 	17	  
			
	 4.3
	 	Conflicts; Consents; Compliance with Law	  	 	17	  
			
	 4.4
	 	Brokers and Finders	  	 	18	  
			
	 4.5
	 	Title to Purchased Assets	  	 	18	  
			
	 4.6
	 	Real Property	  	 	18	  
			
	 4.7
	 	Tangible Personal Property	  	 	19	  
			
	 4.8
	 	Intellectual Property	  	 	19	  
			
	 4.9
	 	Litigation	  	 	20	  
			
	 4.10
	 	Permits	  	 	20	  

  
 -i-

							
	 4.11
	 	Inventory	  	 	20	  
			
	 4.12
	 	Contracts	  	 	20	  
			
	 4.13
	 	Tax Returns; Taxes	  	 	21	  
			
	 4.14
	 	Employees; Seller Benefit Plans	  	 	22	  
			
	 4.15
	 	Labor Matters	  	 	23	  
			
	 4.16
	 	Bank Accounts	  	 	24	  
			
	 4.17
	 	SEC Documents; Financial Statements	  	 	24	  
			
	 4.18
	 	Internal Controls	  	 	25	  
			
	 4.19
	 	WARN Act	  	 	26	  
			
	 4.20
	 	Environmental Matters	  	 	26	  
			
	 4.21
	 	Accounts Receivable	  	 	26	  
			
	 4.22
	 	Absence of Certain Changes	  	 	26	  
			
	 4.23
	 	No Other Representations or Warranties	  	 	28	  
			
	 ARTICLE V.
	 	 REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	 	28	  
			
	 5.1
	 	Organization and Qualification	  	 	28	  
			
	 5.2
	 	Authority	  	 	28	  
			
	 5.3
	 	No Inconsistent Obligations	  	 	29	  
			
	 5.4
	 	Conflicts; Consents	  	 	29	  
			
	 5.5
	 	Brokers	  	 	29	  
			
	 5.6
	 	Adequate Assurances Regarding Assigned Contracts	  	 	29	  
			
	 5.7
	 	No Litigation	  	 	29	  
			
	 5.8
	 	Due Diligence	  	 	29	  
			
	 ARTICLE VI.
	 	 EMPLOYEES
	  	 	30	  
			
	 6.1
	 	Employee Matters	  	 	30	  
			
	 ARTICLE VII.
	 	 BANKRUPTCY COURT MATTERS
	  	 	32	  
			
	 7.1
	 	Approval of Bid Protections and Overbid Protection	  	 	32	  
			
	 7.2
	 	Competing Bid and Other Matters	  	 	32	  
			
	 7.3
	 	Sale Order	  	 	33	  
			
	 7.4
	 	Contracts	  	 	33	  
			
	 7.5
	 	Bankruptcy Filings	  	 	33	  
			
	 7.6
	 	Sale Free and Clear	  	 	34	  
			
	 ARTICLE VIII.
	 	 COVENANTS AND AGREEMENTS
	  	 	34	  
			
	 8.1
	 	Conduct of Business of Sellers	  	 	34	  
			
	 8.2
	 	Access to Information	  	 	36	  
			
	 8.3
	 	Assignability of Certain Contracts	  	 	36	  

  
 -ii-

							
	 8.4
	 	Rejected Contracts	  	 	36	  
			
	 8.5
	 	Reasonable Efforts; Cooperation	  	 	36	  
			
	 8.6
	 	Further Assurances	  	 	38	  
			
	 8.7
	 	Notification of Certain Matters	  	 	38	  
			
	 8.8
	 	Confidentiality	  	 	38	  
			
	 8.9
	 	Preservation of Records	  	 	39	  
			
	 8.10
	 	Publicity	  	 	39	  
			
	 8.11
	 	Material Adverse Effect	  	 	39	  
			
	 8.12
	 	Casualty Loss	  	 	39	  
			
	 8.13
	 	No Successor Liability	  	 	39	  
			
	 8.14
	 	Change of Name	  	 	40	  
			
	 8.15
	 	Receivables	  	 	40	  
			
	 8.16
	 	Antitrust Approvals	  	 	40	  
			
	ARTICLE IX.	 	 CONDITIONS TO CLOSING
	  	 	41	  
			
	 9.1
	 	Conditions Precedent to the Obligations of Purchaser and Sellers	  	 	41	  
			
	 9.2
	 	Conditions Precedent to the Obligations of Seller	  	 	42	  
			
	 9.3
	 	Conditions Precedent to the Obligations of Purchaser	  	 	42	  
			
	ARTICLE X.	 	 ADDITIONAL DEFINITIONS
	  	 	43	  
			
	 10.1
	 	Definitions	  	 	43	  
			
	ARTICLE XI.	 	 TAXES
	  	 	55	  
			
	 11.1
	 	Certain Taxes	  	 	55	  
			
	 11.2
	 	Allocation of Purchase Price	  	 	55	  
			
	 11.3
	 	Cooperation on Tax Matters	  	 	55	  
			
	 11.4
	 	FIRPTA Certificate	  	 	55	  
			
	 11.5
	 	Tax Refunds	  	 	55	  
			
	ARTICLE XII.	 	 MISCELLANEOUS
	  	 	56	  
			
	 12.1
	 	Payment of Expenses	  	 	56	  
			
	 12.2
	 	Survival of Representations and Warranties; Survival of Confidentiality	  	 	56	  
			
	 12.3
	 	Entire Agreement; Amendments and Waivers	  	 	56	  
			
	 12.4
	 	Execution of Agreement; Counterparts; Electronic Signatures	  	 	56	  
			
	 12.5
	 	Governing Law	  	 	56	  
			
	 12.6
	 	Jurisdiction, Waiver of Jury Trial	  	 	57	  
			
	 12.7
	 	Notices	  	 	57	  
			
	 12.8
	 	Binding Effect; Assignment	  	 	58	  
			
	 12.9
	 	Severability	  	 	58	  

  
 -iii-

							
	 12.10
	 	Bulk Sales Laws	  	 	59	  
			
	 12.11
	 	Access and Right to Use	  	 	59	  

  
 -iv-

 INDEX OF EXHIBITS 

 

			
	EXHIBIT A	 	FORM OF BILL OF SALE
		
	EXHIBIT B	 	FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
		
	EXHIBIT C	 	FORM OF ASSUMPTION AND ASSIGNMENT OF LEASES
		
	EXHIBIT D	 	IP ASSIGNMENT AND ASSUMPTION AGREEMENT
		
	EXHIBIT E	 	BIDDING PROCEDURES ORDER
		
	EXHIBIT F	 	SALE ORDER
		
	EXHIBIT G	 	FORM OF SUPPORT AGREEMENT

 INDEX OF SCHEDULES 

 

			
	SCHEDULE 1.1	 	STORE LOCATIONS
		
	SCHEDULE 1.1(B)	 	ASSIGNED CONTRACTS
		
	SCHEDULE 1.1(C)	 	EXCLUDED ACCOUNTS RECEIVABLES
		
	SCHEDULE 1.1(D)	 	EXCLUDED CASH AND CASH EQUIVALENTS
		
	SCHEDULE 1.1(F)	 	ACQUIRED OWNED REAL PROPERTY
		
	SCHEDULE 1.1(G)	 	ACQUIRED BUILDINGS
		
	SCHEDULE 1.1(H)	 	ASSUMED LEASED REAL PROPERTY
		
	SCHEDULE 1.1(I)	 	EXCLUDED TANGIBLE ASSETS RELATING TO THE BUSINESS
		
	SCHEDULE 1.1(V)	 	CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENTS
		
	SCHEDULE 1.1(W)	 	ASSUMED PLANS
		
	SCHEDULE 1.1(BB)	 	CLAIMS AND RIGHTS RELATED TO EXCLUDED ASSETS
		
	SCHEDULE 1.2(K)	 	GOB STORE LOCATIONS
		
	SCHEDULE 1.2(M)	 	DEPOSITS AND PRE-PAID AMOUNTS
		
	SCHEDULE 1.3(C) -	 	TRADE PAYABLES
		
	SCHEDULE 1.3(D)	 	OPEN PURCHASE ORDERS
		
	SCHEDULE 1.3(F)	 	ADDITIONAL TRADE PAYABLE LIABILITIES

  
 -i-

			
	SCHEDULE 1.4(R)	 	ADDITIONAL EXCLUDED LIABILITIES
		
	SCHEDULE 1.6(A)	 	ASSIGNED CONTRACTS
		
	SCHEDULE 4.2	 	NOTICES, FILINGS AND CONSENTS
		
	SCHEDULE 4.3(A)	 	CONFLICTS WITH ORGANIZATIONAL DOCUMENTS
		
	SCHEDULE 4.3(B)	 	CONSENTS
		
	SCHEDULE 4.3(C)	 	COMPLIANCE EXCEPTIONS
		
	SCHEDULE 4.4	 	BROKERS AND FINDERS
		
	SCHEDULE 4.6(A)	 	LEASED REAL PROPERTY
		
	SCHEDULE 4.6(B)(i)	 	OWNED REAL PROPERTY
		
	SCHEDULE 4.6(B)(ii)	 	OWNED BUILDINGS
		
	SCHEDULE 4.7	 	PERSONAL PROPERTY LEASES
		
	SCHEDULE 4.8	 	PURCHASED INTELLECTUAL PROPERTY
		
	SCHEDULE 4.9	 	LITIGATION
		
	SCHEDULE 4.11(D)	 	INVENTORY HELD ON CONSIGNMENT
		
	SCHEDULE 4.13(A)	 	EXTENSIONS OF TIME
		
	SCHEDULE 4.13(E)	 	MATERIAL TAX PROCEEDINGS
		
	SCHEDULE 4.13(F)	 	TAX SHARING AGREEMENTS AND LIABILITIES
		
	SCHEDULE 4.14(B)	 	EMPLOYEE ACTIONS
		
	SCHEDULE 4.14(C)	 	BENEFIT PLANS
		
	SCHEDULE 4.15(A)	 	LABOR AGREEMENTS, ORGANIZATIONS, RECOGNITIONS AND REPRESENTATIONS
		
	SCHEDULE 4.15(F)	 	EMPLOYMENT AND CONSULTING AGREEMENTS
		
	SCHEDULE 4.16	 	BANK ACCOUNTS
		
	SCHEDULE 4.20	 	ENVIRONMENTAL MATTERS
		
	SCHEDULE 4.22(B)	 	CHANGES IN THE BUSINESS
		
	SCHEDULE 5.4(B)	 	PURCHASER CONSENTS
		
	SCHEDULE 6.1(B)	 	BASE COMPENSATION/ WAGE RATE INCREASES

  
 -ii-

			
	SCHEDULE 8.1(A)	 	CHANGES TO COMPENSATION/BENEFITS AND BONUSES
		
	SCHEDULE 8.1(C)	 	REMOVAL OF ASSETS OR INVENTORY
		
	SCHEDULE 8.1(I)	 	RELATED PARTY TRANSACTIONS
		
	SCHEDULE 8.1(Q)	 	AGREEMENTS TO CONSTRUCT OR REMODEL STORES

  
 -iii-

 ASSET PURCHASE AGREEMENT 

This Asset Purchase Agreement (this “Agreement”), dated as of June 17, 2013 (the “Agreement
Date”), by and among Orchard Supply Company, LLC, a Delaware limited liability company (“Purchaser”) and one or more other persons designated by the Purchaser (collectively, the “Purchaser
Designees”), and Orchard Supply Hardware Stores Corporation, a Delaware corporation (the “Company”), Orchard Supply Hardware LLC, a Delaware limited liability company and OSH Properties LLC (each a
“Company Subsidiary” and collectively, the “Company Subsidiaries”, and, together with the Company, each a “Seller” and collectively, the “Sellers”).
Purchaser and the Sellers are collectively referred to herein as the “Parties” and individually as a “Party”. For the purposes of this Agreement, capitalized terms used herein shall have the meanings
set forth herein or in Article X. 
 RECITALS 
 WHEREAS, on June 17, 2013, the Sellers intend to file voluntary petitions (the “Chapter 11 Petition”) for relief under Chapter 11 of the United States Bankruptcy Code (the
“Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) commencing chapter 11 cases (collectively, the “Bankruptcy
Cases”). 
 WHEREAS, the Sellers will continue to manage their properties and operate their businesses as
“debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code; 
 WHEREAS, the Sellers wish to sell the Business; 
 WHEREAS, Purchaser desires to
purchase the Purchased Assets and assume the Assumed Liabilities from the Sellers and the Sellers desire to sell, convey, assign and transfer to Purchaser the Purchased Assets together with the Assumed Liabilities, all in the manner and subject to
the terms and conditions set forth in this Agreement and in accordance with Sections 105, 363 and 365 and other applicable provisions of the Bankruptcy Code; 
 WHEREAS, the Purchased Assets and Assumed Liabilities shall be purchased and assumed by Purchaser pursuant to the Sale Order approving such sale, free and clear of all Claims and Encumbrances (other than
Permitted Encumbrances), pursuant to Sections 105, 363 and 365 of the Bankruptcy Code, and Rules 6004 and 6006 of the Federal Rules of Bankruptcy Procedure, which order will include the authorization for the assumption by Seller and assignment to
Purchaser of the Assigned Contracts and the liabilities thereunder in accordance with Section 365 of the Bankruptcy Code, all in the manner and subject to the terms and conditions set forth in this Agreement and the Sale Order and in accordance
with other applicable provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and the local rules for the Bankruptcy Court (together, the “Bankruptcy Rules”); and 

WHEREAS, the board of directors (or similar governing body) of each Seller has determined that it is advisable and in the best interests
of such Seller and its constituencies to enter into this Agreement and to consummate the transactions provided for herein, subject to entry of the Sale Order, and each has approved the same. 

  
 1 

 NOW, THEREFORE, in consideration of the foregoing and the mutual representations,
warranties, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Purchaser and Sellers hereby agree as
follows: 
 ARTICLE I. 
 PURCHASE AND SALE OF THE PURCHASED ASSETS; 
 ASSUMPTION OF ASSUMED LIABILITIES

 1.1 Purchase and Sale of the Purchased Assets. Pursuant to Sections 105, 363 and 365 of the Bankruptcy Code and on the
terms and subject to the conditions set forth herein, at the Closing Sellers shall sell, transfer, assign, convey and deliver to Purchaser or any Purchaser Designee, and Purchaser shall purchase, acquire and accept from Sellers all of Sellers’
right, title and interest in, to and under the business relating to the store support center, distribution center (“Distribution Center”) and at least 60 of the high-quality neighborhood home repair and maintenance, paint,
housewares and garden stores (the “Stores”) listed on Schedule 1.1 (the “Business”), including the following, but excluding the Excluded Assets, (the “Purchased Assets”) as
of the Closing: 
 (a) all of Sellers’ properties, rights, claims and assets (other than the Excluded Assets) of every kind
and description, wherever situated or located, real, personal or mixed, tangible or intangible, contingent, owned, leased, or licensed, for use in or relating to the Business, whether or not reflected on the books and records of Sellers, as the same
shall exist on the Closing Date; 
 (b) subject to Section 1.6, to the extent assignable pursuant to
Section 365 of the Bankruptcy Code, all rights under Contracts, agreements and purchase and sale orders that are not Rejected Contracts (as defined in Section 1.6(a)(i)), including all rights under any lease for Assumed Leased Real
Property and any customer contracts and any contract renewal rights, but excluding obligations under the DIP Financing Agreements and the Excluded Contracts (the “Assigned Contracts”), each as listed on
Schedule 1.1(b) and Schedule 4.7; 
 (c) to the extent related to the Business, except as set forth on
Schedule 1.1(c), all trade and non-trade accounts receivable, notes receivable and negotiable instruments of Sellers, but excluding any intercompany Indebtedness among the Sellers (the “Accounts Receivable”);

 (d) all of each Seller’s Cash and Cash Equivalents other than as set forth on Schedule 1.1(d); 

(e) all Documents relating to the Purchased Assets or Assumed Liabilities, including, without limitation, customer lists; 

(f) the Owned Real Property listed on Schedule 1.1(f) (the “Acquired Owned Real Property”); 

(g) the Owned Buildings, subject to ground leases, listed on Schedule 1.1(g) (the “Acquired Buildings”);

 (h) the Leased Real Property listed on Schedule 1.1(h) (the “Assumed Leased Real Property”),
including any security deposits or other deposits delivered in connection therewith; 
 (i) all tangible assets of Sellers
relating to the Business, other than the assets set forth on Schedule 1.1(i), including, without limitation, the tangible assets of Seller located at any Assumed Leased Real Property or at the Locations listed on Schedule 1.1(i);

  
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 (j) all personnel files for Transferred Employees except as required under Law;
provided, however, that Sellers have the right to retain copies at Seller’s expense to the extent required by Law; 
 (k) any chattel paper owned or held by Sellers relating to the Business or the Purchased Assets other than the Excluded Assets; 
 (l) any lock boxes to which account debtors of the Sellers remit payment relating to the Business or the Purchased Assets other than the Excluded Assets; 

(m) all other or additional assets, properties, privileges, rights (including prepaid expenses) and interests of Sellers relating to the
Business or the Purchased Assets other than the Excluded Assets of every kind and description and wherever located, whether known or unknown, fixed or unfixed, accrued, absolute, contingent or otherwise, and whether or not specifically referred to
in this Agreement; 
 (n) all Permits and all pending applications therefor; 

(o) all express or implied guarantees, warranties, representations, covenants, indemnities, rights, claims, counterclaims, defenses,
credits, causes of action or rights of set off against third parties relating to the Purchased Assets (including, for the avoidance of doubt, those arising under, or otherwise relating to the Assigned Contracts) or Assumed Liabilities, including
rights under vendors’ and manufacturers’ warranties, indemnities, guaranties and avoidance claims and causes of action under the Bankruptcy Code or applicable Law that are possessed by the Sellers; 

(p) the Intellectual Property; 
 (q) all goodwill, payment intangibles and general intangible assets and rights of Seller to the extent associated with the Business or the Purchased Assets other than the Excluded Assets; 

(r) all Inventory, including raw materials, work in process, parts, subassemblies and finished goods, wherever located and whether or not
obsolete or carried on the Sellers’ books of account, in each case with any transferable warranty and service rights of the applicable Seller with respect to such Purchased Assets to the extent owned by Sellers; 

(s) to the extent permitted by Law, the Sellers’ Documents, and without limiting the foregoing, each of the following: financial
accounting and other books and records, correspondence, and all customer sales, marketing, advertising, packaging and promotional materials, files, data, software (whether written, recorded or stored on disk, film, tape or other media, and including
all computerized data), drawings, engineering and manufacturing data and other technical information and data, and all other business and other records, in each case arising under or relating to the Purchased Assets, the Assumed Liabilities or the
Business provided, however, that Sellers have the right to retain copies of all of the foregoing at Purchaser’s expense; 

(t) to the extent transferable, all rights and obligations under or arising out of all insurance policies relating to the Business or any
of the Purchased Assets or Assumed Liabilities (including returns and refunds of any premiums paid, or other amounts due back to Sellers, with respect to cancelled policies); 

  
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 (u) all Tax assets net of any liability (including all state and federal Tax refunds (or the
right to such state and federal refunds of Taxes, whether claimed or unclaimed) for all taxable periods (or portions thereof), whether ending on, prior to, or after the Closing Date (the “Tax Refunds”)); 

(v) except to the extent set forth on Schedule 1.1(v), all rights and obligations under non-disclosure or confidentiality, key
employee retention plans and similar arrangements with (or for the benefit of) employees and agents of Sellers or with third parties (including any non-disclosure or confidentiality agreements or any key employee retention plans or similar
arrangements entered into in connection with or in contemplation of the filing of the Bankruptcy Cases and the Auction contemplated by the Bidding Procedures Order); 
 (w) all Assumed Plans (including all assets, trusts, insurance policies and administration service contracts related thereto) listed on Schedule 1.1(w); 

(x) to the extent owned by any Seller, all fixed assets and other personal property and interests related to the Business or Purchased
Assets, wherever located, including all vehicles, tools, parts and supplies, fuel, machinery, equipment, furniture, furnishing, appliances, fixtures, office equipment and supplies, owned and licensed computer hardware and related documentation,
stored data, communication equipment, trade fixtures and leasehold improvements, in each case with any freely transferable warranty and service rights of the applicable Seller with respect to such Purchased Assets; 

(y) telephone, fax numbers and email addresses; 
 (z) all of Sellers’ rights to receive refunds, payments or overpayments, clawbacks or other amounts (whether from a workers’ compensation administrator or otherwise) in respect of any and all
workers’ compensation matters, claims, potential claims, purported claims and similar related items with respect to any Transferred Employee; 
 (aa) all avoidance claims or causes of action under the Bankruptcy Code or applicable Law (including, without limitation, any preference or fraudulent conveyance), and all other claims or causes of action
under any other provision of the Bankruptcy Code or applicable laws relating to the Purchased Assets and/or Assumed Liabilities, including all actions relating to vendors and service providers used in the Business that are counterparties to Assumed
Contracts or relating to Assumed Liabilities (the “Avoidance Actions”); and 
 (bb) except to the extent
set forth on Schedule 1.1(bb), any and all claims, deposits, prepayments, refunds, rebates, causes of action, rights of recovery, rights of set-off and rights of recoupment relating to or in respect of an Excluded Asset. 

1.2 Excluded Assets. Notwithstanding anything to the contrary in this Agreement, in no event shall Sellers be deemed to sell,
transfer, assign or convey, and Sellers shall retain all right, title and interest to, in and under only the following assets, properties, interests and rights of such Seller (collectively, the “Excluded Assets”): 

(a) any asset of Sellers that otherwise would constitute a Purchased Asset but for the fact that it is sold or otherwise disposed of in
the Ordinary Course of Business of such Sellers and in conformity with the terms and conditions of this Agreement, during the time from the Agreement Date until the Closing Date, or Purchaser otherwise agrees to such disposition; 

  
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 (b) copies of any and all information not relating to the Business that is stored on any
Seller’s computer systems, data networks or servers; 
 (c) all agreements and contracts of Sellers other than the Assigned
Contracts; 
 (d) all Documents and all personnel records of Seller’s employees that any Seller is required by Law to
retain and is prohibited by Law from providing a copy thereof to Purchaser; 
 (e) the Seller’s Organizational Documents,
corporate charter, minute and stock record books, Tax Returns, corporate seal, checkbooks and canceled checks; 
 (f) all shares
of capital stock or other equity interests issued by any Seller or securities convertible into, exchangeable or exercisable for any such shares of capital stock or other equity interests; 

(g) any avoidance claims or causes of action under the Bankruptcy Code or applicable Law (including, without limitation, any preference
or fraudulent conveyance), and all other claims or causes of action under any other provision of the Bankruptcy Code or applicable laws, solely relating to Excluded Assets or Excluded Liabilities; 

(h) all Claims that any of the Sellers may have against any Person solely with respect to any Excluded Assets or any Excluded
Liabilities; 
 (i) Sellers’ rights under this Agreement, the Purchase Price hereunder, any agreement, certificate,
instrument or other document executed and delivered by Purchaser to any Seller in connection with the transactions contemplated hereby, or any side agreement between any Seller and Purchaser entered into on or after the Agreement Date; 

(j) all current and prior director and officer insurance policies of the Sellers and all rights of any nature with respect thereto,
including all insurance recoveries thereunder and rights to assert claims with respect to any such insurance recoveries; 
 (k)
any assets in the store locations listed in Schedule 1.2(k), which the Sellers plan to sell in going-out-of business sales (the “GOB Sales”); 
 (l) any proceeds received by the Sellers from the GOB Sales; 
 (m) all deposits or
pre-paid amounts funded by the Sellers for the purpose of the Bankruptcy Cases set forth on Schedule 1.2(m); and 

(n) all Benefit Plans (including all assets, trusts, insurance policies and administration service contracts related thereto) except for
the Assumed Plans; 
 1.3 Assumption of Liabilities. On the terms and subject to the conditions set forth in this
Agreement and the Sale Order, effective as of the Closing, Purchaser shall assume from the Sellers (and pay, perform, discharge or otherwise satisfy in accordance with their respective terms), and the Sellers shall irrevocably convey, transfer and
assign to Purchaser, the following Liabilities (and only the following Liabilities) (collectively, the “Assumed Liabilities”): 
 (a) all Liabilities of Sellers arising from the ownership of the Purchased Assets, arising after the Closing Date; 

  
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 (b) all Liabilities and obligations of Sellers under the Purchased Assets and under the
Assigned Contracts, including, without limitation, (i) all pre-petition cure costs required to be paid pursuant to Section 365 of the Bankruptcy Code in connection with the assumption and assignment of the Assigned Contracts (such
pre-petition cure costs are, collectively, the “Cure Costs”) and (ii) any post-Closing liabilities; 
 (c) any Liabilities for trade payables arising out of the conduct of the Business and incurred after the Petition Date but on or before the Closing Date, each as listed on Schedule 1.3(c);

 (d) all open purchase orders set forth on Schedule 1.3(d) arising out of the conduct of the Business and Liabilities
arising under drafts or checks outstanding at the Closing incurred in the Ordinary Course of Business; 
 (e) the obligations to
provide benefits or payments under the Assumed Plans; 
 (f) all Liabilities for trade payables arising out of the conduct of
the Business incurred on or prior to the Petition Date, set forth on Schedule 1.3(f), including, but not limited to, liability for goods under Section 503(b)(9) of the Bankruptcy Code; 

(g) 50% of the amount approved by the Bankruptcy Court to be paid by the Sellers to their employees pursuant to the Motion of the Debtors
and Debtors in Possession for an Order Authorizing and Approving Performance-Based Incentives for Key Employees, up to a maximum of $1.6 million; and 
 (h) 50% of the first $250,000 of Taxes owed by Sellers and arising in connection with the consummation of the transactions contemplated by this Agreement and 100% of any such amount above $250,000.

 The assumption by Purchaser of the Assumed Liabilities shall not, in any way, enlarge the rights of any third parties
relating thereto. 
 1.4 Excluded Liabilities. Notwithstanding any provision in this Agreement to the contrary, Purchaser
is assuming only the Assumed Liabilities and is not assuming, and shall not be deemed to have assumed, any other Liabilities of any Seller of whatever nature (whether arising prior to, at the time of, or subsequent to Closing), whether absolute,
accrued, contingent or otherwise, whether due or to become due and whether or not assets, and whether or not known or unknown or currently existing or hereafter arising or matured or unmatured, direct or indirect, and the Sellers shall be solely and
exclusively liable for any and all such Liabilities, including those relating to, arising out of or in connection with the operation of the Business or the Purchased Assets (including the use and ownership thereof) at any time prior to the Closing
Date, and including, without limitation, those Liabilities set forth below (collectively, the “Excluded Liabilities”): 
 (a) all Liabilities of the Sellers relating to or otherwise arising, whether before, on or after the Closing, out of, or in connection with, any of the Excluded Assets; 

(b) any and all Liabilities for Indebtedness with respect to borrowed money and any intercompany Indebtedness among the Sellers;

  
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 (c) all guarantees of third party obligations and reimbursement obligations to guarantors of
Sellers’ obligations or under letters of credit; 
 (d) except as provided in Section 1.3(h), any and all
(i) Liabilities of the Sellers for any Taxes (including any Taxes owed by Sellers and arising in connection with the consummation of the transactions contemplated by this Agreement), (ii) any Taxes imposed on any Person that are the
responsibility of the Sellers pursuant to Section 11.1, (iii) Taxes attributable to the Purchased Assets or the operation of the Business for any Pre-Closing Tax Period and (iv) any Taxes arising from or in connection with an
Excluded Asset; 
 (e) any and all Liabilities of the Sellers in respect of Contracts that are not Assigned Contracts;

 (f) except for any employment Contract that is an Assumed Contract, all Liabilities with respect to compensation, severance
or benefits of any nature owed to any current or former employee, officer, director, member, partner or independent contractor of any Seller or any ERISA Affiliate (or any beneficiary or dependent of any such individual), whether or not employed by
Purchaser or any of its Affiliates after the Closing, that (A) arises out of or relates to the employment, service provider or other relationship between any Seller or ERISA Affiliate and any such individual, including the termination of such
relationship, (B) arises out of or relates to any Benefit Plan or (C) arises out of or relates to events or conditions occurring on or before the Closing Date; 
 (g) draft or checks outstanding at the Closing (except to the extent an Assumed Liability or relating to an Assumed Contract); 
 (h) all Liabilities under any futures contracts, options on futures, swap agreements or forward sale agreements; 
 (i) all Liabilities for fees, costs and expenses that have been incurred or that are incurred or owed by Sellers in connection with this Agreement or the administration of the Bankruptcy Cases (including
all fees and expenses of professionals engaged by Sellers) and administrative expenses and priority claims accrued through the Closing Date and specified post-closing administrative wind-down expenses of the bankrupt estates pursuant to the
Bankruptcy Code (which such amounts shall be paid by the Sellers from the proceeds collected in connection with the Excluded Assets) and all costs and expenses incurred in connection with (i) the negotiation, execution and consummation of the
transactions contemplated under this Agreement and each of the other documents delivered in connection herewith, (ii) the preparation and submission of any filing or notice required to be made or given in connection with any of the transactions
contemplated by this Agreement, and the obtaining of any consent required to be obtained in connection with any of such transactions; (iii) the negotiation, execution and consummation of the DIP Financings, and (iv) the consummation of the
transactions contemplated by this Agreement, including any retention bonuses, “success” fees, change of control payments and any other payment obligations of Sellers payable as a result of the consummation of the transactions contemplated
by this Agreement and the documents delivered in connection herewith; 
 (j) all Liabilities related to the WARN Act, to the
extent applicable, with respect to Employees, and for any action resulting from Employees’ separation of employment prior to or on the Closing Date; 
 (k) all Liabilities with respect to severance, compensation or benefits of any nature owed by Sellers to any current or former employee, consultant or independent contractor or any

  
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beneficiary or dependent thereof, whether or not any such individual enters into employment or other service with Purchaser after Closing that (i) arises out of or relates to the employment
or service-provider relationship between the Sellers or any ERISA Affiliate and any such individuals, including the termination of such relationship, (ii) arises out of or relates to any Benefit Plan or (iii) arises out of or relates to
events or conditions occurring on or before the Closing Date; 
 (l) all Liabilities of any Seller to its equity holders
respecting dividends, distributions in liquidation, redemptions of interests, option payments or otherwise, and any liability of any Seller pursuant to any Affiliate Agreement; 

(m) all Liabilities arising out of or relating to any business or property formerly owned or operated by any Seller, any Affiliate or
predecessor thereof, but not presently owned and operated by the Sellers; 
 (n) all Liabilities relating to claims, actions,
suits, arbitrations, litigation matters, proceedings or investigations (in each case whether involving private parties, Authorities, or otherwise) involving, against, or affecting any Purchased Asset, the Business, any Seller, or any assets or
properties of any Seller, whether commenced, filed, initiated, or threatened before or after the Closing and whether relating to facts, events, or circumstances arising or occurring before or after the Closing; 

(o) all obligations of the Sellers arising and to be performed prior to the Closing Date arising from or related to the Business or the
Purchased Assets; 
 (p) all Environmental Liabilities and Obligations; 

(q) all Liabilities of any Seller or their predecessors arising out of any contract, agreement, Permit, franchise or claim that is not
transferred to Purchaser as part of the Purchased Assets or, is not transferred to Purchaser because of any failure to obtain any third-party or governmental consent required for such transfer; and 

(r) all Liabilities set forth on Schedule 1.4(r). 
 1.5 Post Closing Liabilities. Purchaser acknowledges that Purchaser shall be responsible for all Liabilities and obligations relating to Purchaser’s ownership or use of, or right to use, the
Purchased Assets and the Assumed Liabilities after the Closing Date, including without limitation all Taxes arising out of or related to the Purchased Assets or the operation of conduct of the Business acquired pursuant to this Agreement for all Tax
periods beginning on or after the Closing Date. 
 1.6 Assumption/Rejection of Certain Contracts. 

(a) Assignment and Assumption at Closing. 
 (i) Schedule 1.6(a) sets forth a list of all executory Contracts (including all leases with respect to Leased Real Property) to which, to the Sellers’ Knowledge, one or more of the Sellers are
party and which are to be included in the Assigned Contracts. From and after the date hereof until two (2) Business Days prior to Closing, the Sellers shall make such deletions to Schedule 1.6(a) as Purchaser shall, in its sole
discretion, request in writing. Any such deleted Contract shall be deemed to no longer be an Assigned Contract. All Contracts of Sellers that are not listed on Schedule 1.6(a) shall not be considered an Assigned Contract or Purchased Asset
and shall be deemed “Rejected Contracts.” 

  
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 (ii) Sellers shall take all actions required to assume and assign the
Assigned Contracts to Purchaser (other than payment of Cure Costs, if so required), including taking all actions required to facilitate any negotiations with the counterparties to such Assigned Contracts and to obtain an Order containing a finding
that the proposed assumption and assignment of the Assigned Contracts to Purchaser satisfies all applicable requirements of Section 365 of the Bankruptcy Code. 

(iii) At Closing, (x) Sellers shall, pursuant to the Sale Order and the Assumption and Assignment Agreement or the
Assumption and Assignment of Leases, as applicable, assume and assign to Purchaser (the consideration for which is included in the Purchase Price) each of the Assigned Contracts that is capable of being assumed and assigned, and (y) Purchaser
shall pay promptly all Cure Costs (if any) in connection with such assumption and assignment (as agreed to among the various counterparties, Purchaser and Sellers, or as determined by the Bankruptcy Court) and assume and perform and discharge the
Assumed Liabilities (if any) under the Assigned Contracts, pursuant to the Assumption and Assignment Agreement or the Assumption and Assignment of Leases, as applicable. 
 (b) Previously Omitted Contracts. 
 (i) If prior to or
following Closing, it is discovered that a Contract should have been listed on Schedule 1.6(a) but was not listed on Schedule 1.6(a), or if Purchaser desires in its sole discretion to acquire any Contract to which one or more of the
Sellers are party (including any Rejected Contract prior to the entry by the Bankruptcy Court of an order with respect thereto) (any such Contract, a “Previously Omitted Contract”), Sellers shall, promptly following the
discovery thereof or receipt of notice from Purchaser of its desire to acquire any such Contract (but in no event later than two (2) Business Days following the discovery thereof or receipt of such notice), notify Purchaser in writing of such
Previously Omitted Contract and all Cure Costs (if any) for such Previously Omitted Contract. Purchaser shall thereafter deliver written notice to Sellers, no later than five (5) Business Days following notification of such Previously Omitted
Contract from Sellers, designating such Previously Omitted Contract as “Assumed” or “Rejected” (a “Previously Omitted Contract Designation”). A Previously Omitted Contract designated in accordance with
this Section 1.6(b)(i) as “Rejected,” or with respect to which Purchaser fails to timely deliver a Previously Omitted Contract Designation, shall be a Rejected Contract. 

(ii) If Purchaser designates a Previously Omitted Contract as “Assumed” in accordance with
Section 1.6(b)(i), (i) Schedule 1.6(a) shall be amended to include such Previously Omitted Contract and (ii) Sellers shall serve a notice (the “Previously Omitted Contract Notice”) on the
counterparties to such Previously Omitted Contract notifying such counterparties of the Cure Costs with respect to such Previously Omitted Contract and Sellers’ intention to assume and assign such Previously Omitted Contract in accordance with
this Section 1.6. The Previously Omitted Contract Notice shall provide the counterparties to such Previously Omitted Contract with fifteen (15) Business Days to object, in writing to the Sellers and Purchaser, to the Cure Costs or
the assumption of its Contract. If the counterparties, Sellers and Purchaser are unable to reach a consensual resolution with respect to the objection, the Sellers will seek an expedited hearing before Bankruptcy Court to determine the Cure Costs
and approve the assumption. If no objection is timely served on the Sellers and Purchaser, Sellers shall obtain an order of the Bankruptcy Court fixing the Cure Costs and approving the assumption of the Previously Omitted Contract. 

  
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 ARTICLE II. 
 CONSIDERATION 
 2.1 Consideration. 

(a) The aggregate consideration (collectively, the “Purchase Price”) to be paid for the purchase of the Purchased
Assets, and subject to adjustment in accordance with Section 2.2 below, shall be: (i) the assumption of Assumed Liabilities and (ii) a cash payment of $205,000,000 (the “Cash Payment”). 

(b) On the Closing Date the Purchaser shall deliver the Cash Payment less the Deposit (the “Closing Date
Payment”) and any payment required to be made pursuant to any other provision hereof in cash by wire transfer of immediately available funds to such bank account as shall be designated in writing by the Company. 

2.2 Working Capital; Adjustment to Purchase Price. 
 (a) At least five (5) Business Days prior to the Closing Date, the Company shall deliver to Purchaser a working capital statement (the “Estimated Working Capital Statement”),
setting forth the Company’s calculation of Closing Working Capital with respect to the Business as of the opening of business on the Closing Date (“Estimated Working Capital”). For purposes of this Agreement,
“Closing Working Capital” shall mean the amount by which (i) Current Assets exceed (ii) Current Liabilities. Closing Working Capital will exclude any and all inter-company receivables, payables or other balances
between the Company or any Subsidiary, on the one hand, and the Company or any Subsidiary, on the other hand. To the extent Current Liabilities exceed Current Assets, Estimated Working Capital shall be stated as a negative number. The term
“Current Assets” means the receivables, owned inventory, prepaid inventory and Specified Prepaid Expenses included in the Purchased Assets. The term “Specified Prepaid Expenses” means prepaid
royalties, fees or other payments treated under GAAP as a prepaid expense of the Business as of the Closing under the Assigned Contracts specified on Schedule 1.6(a) to the extent such Seller Contracts are included in the Purchased Assets.
The term “Current Liabilities” means the total closing trade payables included in the Assumed Liabilities. The Estimated Working Capital Statement shall be prepared in accordance with the same accounting principles,
practices, methodologies and policies used to prepare the Unaudited Financial Statements and, to the extent consistent with the foregoing, in accordance with GAAP. Notwithstanding the foregoing, (A) any assets of the Company or a Subsidiary
that are not part of the Purchased Assets shall not under any circumstances be deemed a Current Asset and (B) any Liabilities of the Company or a Subsidiary that are not part of the Assumed Liabilities shall not under any circumstances be
deemed a Current Liability. 
 (b) Within forty-five (45) days after the Closing Date, Purchaser shall deliver to the
Company a working capital statement (the “Working Capital Statement”), setting forth Purchaser’s calculation of Closing Working Capital with respect to the Business as of the opening of business on the Closing Date. The
Working Capital Statement shall be prepared in accordance with the same accounting principles, practices, methodologies and policies used to prepare the Unaudited Financial Statements and, to the extent consistent with the foregoing, in accordance
with GAAP. The Company shall cause its employees to assist Purchaser and its representatives in the preparation of the Working Capital Statement and shall provide Purchaser and its representatives reasonable access, during normal business hours and
upon reasonable prior notice, to the personnel, properties, books and records of the Company and its Seller Subsidiaries for such purpose. 

  
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 (c) If Final Working Capital (as defined in Section 2.3 below) exceeds Estimated
Working Capital, then Purchaser shall pay to the Company an amount equal to the difference between Final Working Capital and Estimated Working Capital. If Estimated Working Capital exceeds Final Working Capital, then the Company shall pay to
Purchaser an amount equal to the difference between Estimated Working Capital and Final Working Capital. Any payment required to be made pursuant to this Section 2.2(c) shall be made within five (5) Business Days after the
Company’s acceptance of the Working Capital Statement or, if applicable, within five (5) Business Days after receipt of a determination and resolution of any dispute over the Working Capital Statement as provided in Section 2.3
below. Any such amount payable by Purchaser pursuant to this Section 2.2(c) shall be paid by wire transfer of immediately available funds (in U.S. Dollars) to an account or accounts designated in writing by the Party entitled to receive
such payment (or by such other means as are mutually agreeable to the Parties). 
 2.3 Disputes Concerning Adjustment.

 (a) If the Company does not deliver a Dispute Notice to Purchaser within ten (10) Business Days of receiving the Working
Capital Statement, the Company shall be deemed to have agreed with the Working Capital Statement presented by Purchaser and the Closing Working Capital set forth on the Working Closing Statement shall be deemed the “Final Working
Capital” for purposes of this Agreement. “Final Working Capital” shall have the meaning assigned to such term in Section 2.3(b) below. 

(b) If the Company delivers a Dispute Notice to Purchaser within ten (10) Business Days of receiving the
Working Capital Statement, then the Company and Purchaser shall negotiate in good faith to resolve the dispute. If, after twenty (20) days from the date a Dispute Notice is given hereunder, the Company and Purchaser cannot agree on the
resolution of the dispute, then the Arbitrating Accountant shall be jointly engaged to arbitrate the dispute. Within twenty (20) days after the Arbitrating Accountant accepts the engagement, as evidenced by an engagement letter signed by the
Arbitrating Accountant and the Parties (the date of such acceptance being referred to herein as the “Engagement Date”), Purchaser, on the one hand, and the Company, on the other hand, shall prepare and submit to the
Arbitrating Accountant a written brief stating their respective positions on the disputed issue(s). Such briefs shall be submitted simultaneously by the Parties. Within ten (10) days thereafter, Purchaser, on the one hand, and the Company, on
the other hand, shall prepare and submit to the Arbitrating Accountant a reply brief to the brief submitted by the other Party or Parties, as applicable. Such reply briefs shall be submitted simultaneously. Within forty (40) days after the
Engagement Date, the Arbitrating Accountant shall determine whether disputed issues of material fact exist between the Parties and, if such determination is made, shall require that an evidentiary hearing be held and completed not later than the
fifty-fifth (55th) day after the Engagement Date. The
Arbitrating Accountant shall render its final decision and award regarding the disputed matters not later than the fifth
(5th) day after the evidentiary hearing is held or,
if no evidentiary hearing is to be held, not later than the fifty-fifth (55th) day after the Engagement Date. When acting pursuant to this Section 2.3(b), the Arbitrating Accountant shall determine whether and to what extent, if any, Purchaser’s calculation
of the Closing Working Capital (determined based on the Working Capital Statement) requires adjustment. The Arbitrating Accountant shall address only those issues in dispute, and may not assign a value to any item greater than the greatest value for
such item claimed by a Party or less than the smallest value for such item claimed by a Party. In addition, the Arbitrating Accountant shall apportion its fees and expenses between the Company, on the one hand, and Purchaser, on the other hand, in
proportion to the difference between the relative position of each Party and the Arbitrating Accountant’s ultimate determination with respect to the amount of the Closing Working Capital. Absent fraud or self-dealing, the decision and award of
the Arbitrating Accountant, including the apportionment of its fees, shall be final and binding on the Parties and shall be subject to confirmation and entry of judgment in accordance with applicable Law. In no event shall the Arbitrating

  
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Accountant award either Party consequential, incidental or punitive damages. Purchaser and the Company shall make all books, records and work papers reasonably requested by the Arbitrating
Accountant in connection with the resolution of the item(s) disputed hereunder available to the Arbitrating Accountant. The Closing Working Capital as determined pursuant to the terms of this Section 2.3(b) shall be deemed the
“Final Working Capital” for purposes of this Agreement. 
 2.4 Deposit. No later than three
Business Days following the entry of the Bidding Procedures Order, Purchaser will make an earnest money deposit (the “Deposit”) in the amount of $15 million to the Escrow Agent. The Deposit shall be applied against payment of
the Purchaser Price on the Closing Date. If this Agreement shall be terminated by any Party hereto pursuant to Sections 3.4(a), (b), (c), (d), (e), (f),
(g) or (i) hereof, or in the event that a party other than Purchaser or an Affiliate of Purchaser purchases all or a significant portion of the Purchased Assets, then the Deposit shall be returned to Purchaser within five
(5) Business Days after Seller’ receipt of Purchaser’s written request therefore, except in the case of termination of this Agreement pursuant to Section 3.4 (h) hereof, in which case Seller shall return the Deposit
to Purchaser upon the closing of the Alternative Transaction. If this Agreement shall be terminated by the Company pursuant to Sections 3.4 (i), (j), or (k) hereof or otherwise by reason of the failure of any condition
precedent under Section 9.2 hereof resulting primarily from Purchaser breaching any representation, warranty or covenant contained herein, then Seller shall retain the Deposit. The Parties agree that the Company right to retain the
Deposit, as set forth herein, is not a penalty, but rather is liquidated damages in a reasonable amount that will compensate the Sellers for their respective efforts and resources expended and the opportunities foregone while negotiating this
Agreement and in reliance on this Agreement and on the expectation of the consummation of the transactions contemplated hereby, which amount would otherwise be impossible to calculate with precision. 

ARTICLE III. 

CLOSING AND TERMINATION 
 3.1 Closing. Subject to the satisfaction or waiver by the appropriate Party of the conditions set forth in Article IX, the closing of the purchase and sale of the Purchased Assets, the
payment of the Purchase Price, the assumption of the Assumed Liabilities and the consummation of the other transactions contemplated by this Agreement (the “Closing”) shall occur as soon as practicable following the
satisfaction or waiver of all conditions set forth in this Agreement (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions). The Closing shall take place at
the offices of DLA Piper LLP (US), 1251 Avenue of the Americas, 27th Floor, New York, NY 10020 or at such other place as the Parties may agree. Unless otherwise agreed by the Parties in writing, the Closing shall be deemed effective and all right,
title and interest of each of the Sellers in the Purchased Assets to be acquired by Purchaser hereunder shall be deemed to have passed to Purchaser and the assumption of all of the Assumed Liabilities shall be deemed to have occurred as of 12:01
a.m. Eastern Time on the Closing Date. 
 3.2 Closing Deliveries by Sellers. At or prior to the Closing, the Sellers
shall deliver to Purchaser: 
 (a) bill of sale substantially in the form of Exhibit A (the “Bill of
Sale”) duly executed by the Sellers; 
 (b) assignment and assumption agreement substantially in the form of
Exhibit B (the “Assignment and Assumption Agreement”) duly executed by the Sellers; 

  
 12 

 (c) a certified copy of the Sale Order; 

(d) copies of all instruments, certificates, documents and other filings (if applicable) necessary to release the Purchased Assets from
all Encumbrances, including any applicable UCC termination statements and releases of Mortgages, all in a form reasonably satisfactory to Purchaser; 
 (e) copies of the waivers, consents and approvals for those executory contracts on Schedule 1.1(b), where such waivers, consents and approvals are required to operate the Business in the ordinary
course; 
 (f) an officer’s certificate, dated as of the Closing Date, executed by a duly authorized officer of each of the
Sellers certifying that the conditions set forth in Section 9.3 have been satisfied; 
 (g) a copy of the
resolutions adopted by the Board of Directors of each of the Sellers evidencing the authorization of the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, certified by an authorized officer of
such Seller; 
 (h) instrument of assumption and assignment of the Assumed Leases substantially in the form of
Exhibit C (the “Assumption and Assignment of Leases”), duly executed by the Sellers, in form for recordation with the appropriate public land records, if necessary; 

(i) an Intellectual Property Assignment and Assumption Agreement substantially in the form of Exhibit D (the “IP
Assignment and Assumption Agreement”), executed accordingly by the Sellers; 
 (j) possession of each Owned Real
Property, together with duly executed deeds for each Owned Real Property conveying the Owned Real Property, existing surveys, legal descriptions and title policies that are in the possession of the Sellers, subject only to Permitted Encumbrances;

 (k) a quit claim deed conveying all right, title, and interest of Sellers in the Acquired Buildings; 

(l) policies of title insurance dated as of the Closing Date in respect of Owned Real Property for the benefit of Purchaser; 

(m) possession of the Purchased Assets and the Business; 
 (n) certificates executed by each Seller, in the form prescribed under Treasury Regulation Section 1.1445-2(b), that such Seller is not a foreign person within the meaning of Section 1445(0(3)
of the Code; 
 (o) such other bills of sale, deeds, endorsements, assignments and other good and sufficient instruments of
conveyance and transfer, in form reasonably satisfactory to Purchaser, as Purchaser may reasonably request to vest in Purchaser all of Sellers’ right, title and interest of Sellers in, to or under any or all the Purchased Assets, including all
Owned Real Property; 
 (p) such ordinary and customary documents (including any factually accurate affidavits) as may be
required by any title company or title insurance underwriter to enable Purchaser to acquire, at Purchaser’s sole election and Purchaser’s sole cost and expense, one or more owner policies of title insurance issued by such title company
covering any or all of the Owned Real Property; 

  
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 (q) a duly completed FIRPTA Certificate; 

(r) the most recent final Phase I Environmental Site Assessment reports for the Acquired Owned Real Property and Acquired Buildings;

 (s) a support agreement executed by the Term Administrative Agent and Required Lenders (the “Term Lenders”)
under the Amended and Restated Senior Secured Term Loan Agreement, dated as of December 22, 2011, by and among Orchard Supply Hardware LLC, Orchard Supply Hardware Stores Corporation, and the other guarantors from time to time party thereto,
substantially in the form attached hereto as Exhibit G; and 
 (t) such other documents as Purchaser may reasonably
request that are not inconsistent with the terms of this Agreement and customary for a transaction of this nature and necessary to evidence or consummate the transactions contemplated by this Agreement. 

3.3 Closing Deliveries by Purchaser. At the Closing, Purchaser shall deliver to (or at the direction of) the Company: 

(a) the Assignment and Assumption Agreement duly executed by Purchaser; 

(b) the Intellectual Property Assignment and Assumption Agreement, executed by Purchaser; 

(c) satisfactory evidence of payment of the Cure Costs; 
 (d) an officer’s certificate, dated as of the Closing Date, executed by a duly authorized officer of Purchaser certifying that the conditions set forth in Sections 9.2(a) and 9.2(b)
have been satisfied; 
 (e) other agreements required by the terms of the Agreement; and 

(f) all other certificates, agreements and other documents required by this Agreement (or as the Sellers may reasonably request that are
customary for a transaction of this nature and necessary to evidence or consummate the transactions contemplated by this Agreement) to be delivered by Purchaser at or prior to the Closing in connection with the transactions contemplated by this
Agreement. 
 3.4 Termination of Agreement. This Agreement may be terminated only in accordance with this
Section 3.4. This Agreement may be terminated at any time prior to the Closing, as follows: 
 (a) by the mutual
written consent of the Company and Purchaser; 
 (b) by written notice of either the Company or Purchaser to such other Party,
if the Closing shall not have been consummated prior to October 1, 2013 (the “Outside Date”); provided, however, that the Outside Date may be extended by the mutual written consent of Company and Purchaser,
for a period up to thirty (30) days to the extent that all conditions to Closing set forth in this Agreement are capable of being satisfied as of such time; provided further, however, that a Party shall not

  
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be permitted to terminate this Agreement pursuant to this Section 3.4(b) if such Party is in material breach of this Agreement; provided, however, that if the Closing has not occurred
by the Outside Date, but on such date all of the conditions set forth in Article 9 have been satisfied or waived (to the extent such conditions may be waived) other than the condition set forth in Section 9.1(c), then the Outside Date
shall automatically be extended until ninety (90) days after such initial Outside Date (and such extended date shall be deemed to be the “Outside Date” for all purposes hereunder) unless two (2) Business Days prior to the end of
the second month following the original Outside Date, Purchaser provides written notice to Seller that it is no longer extending the Outside Date pursuant to this Section 3.4(b); 

(c) by written notice from Purchaser to the Company, if (i) any Seller seeks to have the Bankruptcy Court enter an Order dismissing,
or converting into cases under chapter 7 of the Bankruptcy Code, any of the cases commenced by Sellers under chapter 11 of the Bankruptcy Code and comprising part of the Bankruptcy Cases, or appointing a trustee in the Bankruptcy Cases or appointing
a responsible officer or an examiner with enlarged power relating to the operation of the Business (beyond those set forth in Section 1106(a)(3) or (4) of the Bankruptcy Code) under Bankruptcy Code Section 1106(b), or (ii) an
order of dismissal, conversion or appointment is entered for any reason and is not reversed or vacated within fourteen (14) days after entry thereof; 
 (d) by written notice from Purchaser, if (i) the Bidding Procedures Order shall not have been approved by the Bankruptcy Court by the close of business on the date that is fourteen (14) days
after the Petition Date, (ii) the Bankruptcy Court issues an order granting leave to any Person to commence an appeal of the Bidding Procedures Order or (iii) following its entry, the Bidding Procedures Order shall fail to be in full force
and effect or shall have been stayed, reversed, modified or amended in any respect without the prior written consent of Purchaser; 
 (e) by written notice from Purchaser if (i) the Sale Hearing has not taken place on or prior to the date that is seventy-five (75) days after the Petition Date, (ii) the Bankruptcy Court
has not entered the Sale Order on or prior to the date that is ninety (90) days following the Petition Date, or (iii) the Sale Order shall have been stayed (and such stay results in the Closing not being consummated prior to the Outside
Date), vacated, modified or supplemented without Purchaser’s prior written consent; 
 (f) by written notice from
Purchaser, if (i) the Sale Order has not become a Final Order within fourteen (14) days after the entry thereof or (ii) following its entry, the Sale Order shall fail to be in full force and effect or shall have been stayed (and such
stay results in the Closing not being consummated prior to the Outside Date), reversed, modified or amended in any respect without the prior written consent of Purchaser; 
 (g) by written notice of either the Company or Purchaser, if Sellers have entered into an Alternative Transaction; 
 (h) automatically upon the consummation of an Alternative Transaction; 
 (i) by
written notice from the Company to Purchaser, if Purchaser breaches or fails to perform in any respect any of its representations, warranties or covenants contained in this Agreement and such breach or failure to perform: (i) would give rise to
the failure of a condition set forth in Article IX, (ii) cannot be or has not been cured within thirty (30) days following delivery of notice to Purchaser of such breach or failure to perform and (iii) has not been waived
by the; 
 (j) by written notice from Purchaser to the Company, if any Seller breaches or fails to perform in any respect any of
its representations, warranties or covenants contained in this Agreement 

  
 15 

 
and such breach or failure to perform: (i) would give rise to the failure of a condition set forth in Article IX, (ii) cannot be or has not been cured within thirty
(30) days following delivery of notice to the Company of such breach or failure to perform and (iii) has not been waived by Purchaser; or 
 (k) by written notice from the Purchaser to the Company if the Purchaser elects to terminate this Agreement pursuant to Section 8.16(c). 

Each condition set forth in this Section 3.4, pursuant to which this Agreement may be terminated shall be considered separate and distinct
from each other such condition. If more than one of the termination conditions set forth in this Section 3.4 is applicable, the applicable Party shall have the right to choose the termination condition pursuant to which this Agreement is
to be terminated. The Parties acknowledge and agree that no notice of termination or extension of the Outside Date provided pursuant to this Section 3.4 shall become effective until two (2) Business Days after the delivery of such
notice to the other Parties, and only if such notice shall not have been withdrawn during such two (2) Business Day period. 
 3.5 Procedures Upon Termination. In the event of termination and abandonment by Purchaser or Sellers, or both such Parties, pursuant to Section 3.4 hereof, written notice thereof shall
forthwith be given to the other Party or Parties, and this Agreement shall terminate, and the purchase of the Purchased Assets and the assumption of the Assumed Liabilities hereunder shall be abandoned, without further action by Purchaser or
Sellers. If this Agreement is terminated as provided herein, each Party shall return all documents, work papers and other material of any other Party relating to the transactions contemplated hereby, whether so obtained before or after the execution
hereof, to the Party furnishing the same. If this Agreement is terminated pursuant to Sections 3.4(a), (c), (d), (e), (f), (g), (h) or (j), Sellers shall pay to Purchaser the Expense
Reimbursement, plus, only if this Agreement is terminated pursuant to Sections 3.4(g), (h) or (j), the Break-Up Fee, and the Parties shall have no further obligations to one another except for any obligations that, by their
terms, survive the termination of this Agreement, as described in Section 3.6. 
 3.6 Effect of Termination.
In the event of termination of this Agreement pursuant to Section 3.4, this Agreement shall forthwith become null and void and there shall be no liability on the part of any Party or any of its partners, officers, directors or
shareholders; provided, however, that (a) this Section 3.6, Section 2.4, the Sellers’ obligation to pay the Bid Protections pursuant to Section 7.1, Article XII (Miscellaneous), and
the Bidding Procedures Order (if entered) shall survive any such termination. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by Law. Each Party acknowledges that the agreements contained in this
Section 3.6 and in Section 3.5 are an integral part of the transactions contemplated by this Agreement, that without these agreements such Party would not have entered into this Agreement, and that any amounts payable
pursuant to this Section 3.6 and Section 3.5 do not constitute a penalty. 
 ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES OF THE SELLERS 
 Subject to the exceptions noted in the schedules delivered by the Sellers concurrently herewith, each of the Sellers jointly and severally represents and warrants to Purchaser as follows as of the date
hereof and as of the Closing Date: 
 4.1 Organization and Qualification. Each Seller is a corporation duly incorporated
or organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation. 

  
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Such Seller has all requisite power and authority to own, lease and operate its properties and to carry on its business (including the Business) as it is now being conducted, subject to the
provisions of the Bankruptcy Code. Seller has previously delivered to Purchaser complete and correct copies of its Organizational Documents, as amended and in effect on the Agreement Date. Each Seller is duly qualified or licensed to do business and
is in good standing in each jurisdiction where the character of the Business or the nature of its properties makes such qualification or licensing necessary, except for such failures to be so qualified or licensed or in good standing as would not,
individually or in the aggregate, have a Material Adverse Effect. 
 4.2 Authorization of Agreement. Subject to the entry
of the Sale Order, each Seller has all requisite power and authority to execute and deliver this Agreement and each of the Ancillary Documents to which it is a party, to perform its obligations hereunder and thereunder, and to consummate the
transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each of the Ancillary Documents to which it is a party, the performance by each Seller of its obligations hereunder and thereunder and the consummation of
the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary action on the part of each Seller. This Agreement has been, and at or prior to the Closing, each of the Ancillary Documents to which it is a
party will be, duly and validly executed and delivered by each Seller and (assuming the due authorization, execution and delivery by the other Parties, and the entry of the Sale Order) this Agreement constitutes, and each Ancillary Document to which
it is a party when so executed and delivered (assuming the due authorization, execution and delivery by the other parties thereto) will constitute, legal, valid and binding obligations of each Seller, enforceable against each Seller in accordance
with its terms. Subject to entry of the Sale Order, except (a) as required to comply with the HSR Act, (b) for entry of the Sale Order, (c) for notices, filings and consents required in connection with the Bankruptcy Cases and
(d) for the notices, filings and consents set forth on Schedule 4.2, Sellers are not required to give any notice to, make any registration, declaration or filing with or obtain any consent, waiver or approval from, any Person (including
any Governmental Body) in connection with the execution and delivery of this Agreement and each of the Ancillary Documents or the consummation or performance of any of the transactions contemplated hereby and thereby, other than such notices,
registrations, declarations, filings, consents, waivers, or approvals, the failure of which to make or obtain would not have a Material Adverse Effect. 
 4.3 Conflicts; Consents; Compliance with Law. 
 (a) Except as set forth on
Schedule 4.3(a), the execution, delivery and performance by each Seller of this Agreement or any Ancillary Document to which it is a party, the compliance by Sellers with any of the provisions hereof or thereof, the consummation of the
transactions contemplated hereby or thereby and the taking by Sellers of any other action contemplated hereby or thereby, do not and will not contravene, violate or conflict with any term or provision of its respective Organizational Documents.

 (b) Except (i) for the entry of the Sale Order, (ii) for filings as may be required under the HSR Act, and
(iii) as set forth on Schedule 4.3(b), no filing with, notice to or consent from any Person is required in connection with the execution, delivery and performance by each Seller Subsidiary of this Agreement or the Ancillary Documents to
which it is a party, the compliance by Seller with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, or the taking by any Seller of any other action contemplated hereby or thereby, other
than such filings, notices or consents, the failure of which to make or obtain would not have a Material Adverse Effect. 
 (c)
Each Seller is in compliance, in all material respects with all applicable Laws. Except as set forth on Schedule 4.3(c), neither Seller nor any Subsidiary has received any outstanding 

  
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written notice from any Governmental Body regarding any actual or possible material violation of, or failure to comply in any material respect with, any Law. No Seller is in default in any
material respect of any order, writ, injunction, judgment or decree applicable to the Business or the Purchased Assets. 
 4.4
Brokers and Finders. Except as set forth on Schedule 4.4, no Person has acted, directly or indirectly, as a broker, finder or financial advisor for Sellers in connection with the transactions contemplated by this Agreement and
Purchaser is not or will not become obligated to pay any fee or commission or like payment to any broker, finder or financial advisor as a result of the consummation of the transactions contemplated by this Agreement based upon any arrangement made
by or on behalf of Sellers. 
 4.5 Title to Purchased Assets. Other than the Leased Real Property and the personal
property subject to the Personal Property Leases and except for Permitted Encumbrances, Sellers have good title to the Purchased Assets and, at the Closing, Purchaser, pursuant to the Sale Order, shall acquire good and marketable title in, and under
all of such Purchased Assets, in each case free and clear of all Liens to the fullest extent permissible under Section 363(f) of the Bankruptcy Code. The Purchased Assets include all of the properties and assets required to operate, in all
material respects, the Business in the Ordinary Course of Business. For the sake of clarity, the right to use any assets included in the Purchased Assets in which Sellers have leasehold or non-ownership rights to use shall be assigned to Purchaser
only through the assumption and assignment of the Assigned Contracts in accordance with and subject to this Agreement. 
 4.6
Real Property. 
 (a) Schedule 4.6(a) contains a list and brief description of all Leased Real Property held or
used for, or necessary to the operation of the Business. Sellers have made available true and complete copies of all leases with respect to such Leased Real Property (individually, a “Lease” and collectively, the
“Leases”) to Purchaser. Schedule 4.6(a) also identifies each ground lease between Sellers and the owner of the fee title to the demised premises (each, a “Ground Lease”). Other than as set forth
on Schedule 4.6(a), Sellers are not in breach of any material term or in “default” under any Lease and, to Sellers’ Knowledge, no party to any Lease has given Sellers written notice of or made a claim with respect to any
breach or default thereunder. To Sellers’ Knowledge, there are no conditions that currently exist or with the passage of time will (i) result in a default or breach of any material term by any party to a Lease or (ii) give rise to the
right of the lessor to accelerate the obligations thereunder or modify the terms thereof. To Sellers’ Knowledge, other than as noted on Schedule 4.6(a), none of the Leased Real Property is subject to any sublease or grant to any Person
of any right to the use, occupancy or enjoyment of the Leased Real Property or any portion thereof that would materially impair the use of the Leased Real Property in the operation of the Business. To Sellers’ Knowledge, the Leased Real
Property is not subject to any Encumbrances (other than Permitted Encumbrances) that were placed on the Leased Real Property through the action or inaction of Sellers and materially impact the Business use of the Leased Real Property. To
Sellers’ Knowledge, the Leased Real Property is not subject to any use restrictions, exceptions, reservations or limitations which in any material respect interfere with or impair the present and continued use thereof in the Ordinary Course of
Business. To Sellers’ Knowledge, there are no pending or threatened condemnation or other proceedings or claims relating to any of the Leased Real Property. To Sellers’ Knowledge, the Leases with respect to the Assumed Leased Real Property
will continue to be legal, valid, binding, enforceable and in full force and effect on the same material terms immediately following the consummation of the transactions contemplated hereby. No rent under any Lease has been paid more than one month
in advance. 

  
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 (b) Schedule 4.6(b)(i) sets forth a true, correct and complete list of all Owned Real
Property, specifying the street address, the current owner and the current use of each parcel of Owned Real Property in which any of the Sellers has any title interest and which is related to, used, useful or held for use in the conduct of the
Business (the “Owned Real Property”). Except for Permitted Encumbrances, Sellers have good and marketable title in the Owned Real Property set forth on Schedule 4.6(b). To Sellers’ Knowledge, other than as
noted on Schedule 4.6(b)(i), none of the Owned Real Property is subject to any lease or grant to any Person of any right to the use, purchase, occupancy or enjoyment of such Owned Real Property or any portion thereof required to conduct the
Business. Except for Permitted Encumbrances, the Owned Real Property is not subject to any Encumbrances or to any use restrictions, exceptions, reservations or limitations, which in any material respect interfere with or impair the present and
continued use thereof in the Ordinary Course of Business and in the same manner after the Closing as conducted by Sellers prior to Closing. There are no pending or, to Sellers’ Knowledge, threatened condemnation proceedings relating to any of
the Owned Real Property. Schedule 4.6(b)(ii) sets forth a true, correct and complete list of buildings owned by Sellers which are subject to a Ground Lease (the “Owned Buildings”), specifying the street address
and applicable Ground Lease. Each of the Owned Buildings is subject to the applicable Ground Lease landlord’s automatic reversionary interest upon expiration or termination of the Ground Lease. Other than as noted in Schedule 4.6(b)(ii),
none of the Owned Buildings are subject to any sublease or grant to any Person of any right to the use, purchase, occupancy or enjoyment of such Owned Buildings or any portion thereof required to conduct the Business. Except for Permitted
Encumbrances, the Owned Buildings are not subject to any Encumbrances or to any use restrictions, exceptions, reservations or limitations, which in any material respect interfere with or impair the present and continued use thereof in the Ordinary
Course of Business and in the same manner after the Closing as conducted by Sellers prior to Closing. There are no pending or, to Sellers’ Knowledge, threatened condemnation proceedings relating to any of the Owned Buildings. There are no
unrecorded outstanding options, rights of first offer or rights of first refusal to Purchase Owned Real Properties or any properties thereof or interest therein. There are no physical defects in the Owned Buildings that would interfere with their
current use or operation. 
 (c) To the Sellers’ Knowledge, neither the Owned Real Property nor Leased Real Property serves
any adjoining property for any purpose inconsistent with the use of the Owned Real Property or Leased Real Property, as the case may be and, to Sellers’ Knowledge, neither the Owned Real Property nor the Leased Real Property is located within
an flood plain or subject to any similar type of construction for which Permits necessary to the use thereof have not been obtained. To the Sellers’ Knowledge, neither the current use of the Owned Real Property and Leased Real Property nor the
operation of the Business violates any instrument of record or agreement or any applicable legal requirements, building code or zoning ordinance. To the Sellers’ Knowledge, neither the whole nor any material portion of any Owned Real Property
or Leased Real Property has been damaged or destroyed by fire or casualty. 
 (d) No Seller is a “foreign person,”
foreign trust” or “foreign corporation” within the meaning of the Code. 
 4.7 Tangible Personal Property.
Schedule 4.7 sets forth all leases of personal property (“Personal Property Leases”) relating to personal property used by Sellers or to which any Seller is a party or by which the properties or assets of any Seller
are bound, in each case relating to the Business. Each Seller has a valid and enforceable leasehold interest under each Personal Property Lease under which it is a lessee. 
 4.8 Intellectual Property. Schedule 4.8 sets forth an accurate and complete list of all Intellectual Property necessary to the Business as currently conducted (the “Purchased
Intellectual 

  
 19 

 
Property”). The Sellers own all right, title and interest to the Purchased Intellectual Property, such rights, title and interest are valid and enforceable, and the Sellers can
convey the Purchased Intellectual Property free and clear of Liens pursuant to the Sale Order. To the Knowledge of Sellers, (i) no Person is engaging in any activity that infringes any Purchased Intellectual Property and (ii) no claim has
been asserted to any Seller that the use of any Purchased Intellectual Property or the operation of the Business infringes or violates the Intellectual Property of any third party. The Purchased Intellectual Property and the rights under the
Assigned Contracts necessarily include the rights to use all Intellectual Property required to operate the Business as currently conducted. 
 4.9 Litigation. Except as set forth on Schedule 4.9 and other than in connection with the Bankruptcy Cases, there is no suit, action, litigation, arbitration proceeding or governmental
proceeding or audit, including appeals and applications for review, in progress, pending or, to the best of Sellers’ Knowledge, threatened against or relating to any Seller or any judgment, decree, injunction, deficiency, rule or order of any
court, governmental department, commission, agency, instrumentality or arbitrator which, in any case, might adversely affect the ability of any Seller to enter into this Agreement or to consummate the transactions contemplated hereby and Sellers
have no Knowledge of any existing ground on which any such action, suit or proceeding may be commenced with any reasonable likelihood of success. 
 4.10 Permits. Sellers are in compliance with the material terms of all material Permits used by Sellers in the Business, and all such Permits are valid and in full force and effect, and no
proceeding is pending or, to the Knowledge of Sellers, threatened, the object of which is to revoke, limit or otherwise affect any such Permit. 
 4.11 Inventory. 
 (a) All Inventory of Sellers, whether or not reflected on
the Audited Financial Statements included in the SEC Documents, consists of items of a good and merchantable quality useable or saleable in the Ordinary Course of Business, for the purposes for which they are intended, subject to normal, customary,
or non-material allowances for damage and obsolescence. To Sellers’ Knowledge, no Inventory is materially damaged in any significant way, including but not limited to damage caused by water, except for any such damage which would not have a
Material Adverse Effect on the Inventory taken as a whole; 
 (b) To Sellers’ Knowledge, the Inventory is not part of a
current or past recall; 
 (c) The Inventory is in working condition except for such failure to be in working condition which
would not have a Material Adverse Effect on the Inventory taken as a whole. 
 (d) Except as set forth on Schedule
4.11(d), Sellers do not hold any Inventory on consignment. 
 4.12 Contracts. The Assigned Contracts include all
Contracts material to the ownership and/or operation of the Business. Except as set forth on Schedule 4.9, Sellers have not, and, to Sellers’ Knowledge, no other party to any Assigned Contract has, commenced any action against any
of the parties to any Assigned Contract or given or received any written notice of any default or violation under any Assigned Contract that has not been withdrawn or dismissed except to the extent such default or violation will be cured as a result
of the payment of the applicable Cure Costs. Assuming payment of the Cure Costs, each Assigned Contract is, or will be upon the Closing, valid, binding and in full force and effect in accordance with its terms. 

  
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 4.13 Tax Returns; Taxes. 

(a) All Tax Returns required to have been filed by the Sellers have been duly and timely filed and are true, correct and complete in all
material respects, and no material fact has been omitted therefrom. Except as set forth on Schedule 4.13(a), no Seller is currently the beneficiary of any extension of time within which to file any Tax Return. True, correct and complete
copies of such Tax Returns have been delivered to Purchaser (or its representatives) prior to the Agreement Date. 
 (b) All
Taxes due and payable by the Sellers have been paid in full. To the Sellers’ Knowledge, the Sellers have established adequate reserves on their book and records in accordance with GAAP for any Taxes that are not yet due and payable with respect
to any Pre-Closing Tax Period. All Taxes of the Sellers attributable to Tax periods (or portions thereof) commencing after the date hereof have arisen in the ordinary course of business. 

(c) No Seller has waived any statute of limitations affecting any Liability for Taxes or agreed to any extension of time during which a
Tax assessment or deficiency assessment may be made or extending the time within which to file any Tax Return. 
 (d) No amount
of income (or deduction) will be required to be included in (or excluded from) taxable income by any Person for any Post-Closing Tax Period with respect to the Purchased Assets or the Business as a result of any prepaid amount received during a
Pre-Closing Tax Period, or for any other reason. 
 (e) Except as set forth on Schedule 4.13(e), no material Tax
Proceeding is being asserted in writing with respect to any of the Sellers, nor to the Knowledge of the Sellers has any claim with respect to Taxes been threatened or asserted. All deficiencies for Taxes asserted or assessed against any Seller have
been fully and timely paid or settled. 
 (f) Except as set forth on Schedule 4.13(f), no Seller is party to any Tax
sharing, indemnity or similar agreement (written or otherwise), and no Seller has any Liability for the Taxes of any other Person as a transferee or successor, or by Contract or otherwise. To Sellers’ Knowledge, no Seller has received any Tax
Refund to which it is not entitled, either pursuant to applicable Law or any Contract. 
 (g) No Encumbrances or other liens
with respect to Taxes have been filed on or with respect to the Purchased Assets or the Business. 
 (h) The Sellers have
properly and timely imposed, collected and paid all sales, use and similar Taxes as required by Law with respect to the sale, rental or lease of any product or service in connection with the Purchased Assets and the Business. 

(i) No transaction contemplated by this Agreement is subject to withholding under any Law (including Section 1445 of the Code), and
the Purchaser’s acquisition of the Purchased Assets will not otherwise result in any Tax liability to the Purchaser (or any direct or indirect owner thereof). 
 (j) No Seller has ever been subject to Tax in a jurisdiction in which it does not currently file Tax Returns or pay Taxes, and no claim has been made by any Governmental Body in a jurisdiction where any
Seller does not file Tax Returns that it is or may be subject to Tax by that jurisdiction. No Seller has, or has ever had, a permanent establishment in any country other than the United States. 

  
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 (k) Solely for federal income Tax purposes, (i) the Company is, and has always been,
subject to Tax as a corporation, (ii) Orchard Supply is, and has always been, an entity disregarded from the Company (which is the direct and sole owner of Orchard Supply), and (iii) OSH Properties is, and has always been, an entity
disregarded from Orchard Supply (which is the direct and sole owner of OSH Properties). Each of the Sellers is a “U.S. person” within the meaning of Section 7701(a)(30) of the Code. 

For purposes of this Section 4.13, any reference to any Seller shall be deemed to include any Person that merged, or was merged, with or was
liquidated into such Seller. 
 4.14 Employees; Seller Benefit Plans. 

(a) Sellers have provided Purchaser with a true, complete and correct list of the Employees as of the Agreement Date, specifying their
position, annual salary and date of hire. The Sellers are in compliance in all material respects with all Laws relating to the employment or termination of employment of the Employees. 

(b) Except as set forth on Schedule 4.14(b), there are no material Actions pending or, to the Knowledge of any Seller, threatened,
against any Seller by any Employee. 
 (c) Set forth on Schedule 4.14(c) is a true and complete list of each Benefit
Plan. As applicable with respect to each Benefit Plan, the Sellers have delivered to Purchaser true and complete copies of (i) each Benefit Plan, including all amendments thereto, and in the case of an unwritten Benefit Plan, a written
description thereof, (ii) all current trust documents, investment management contracts, custodial agreements and insurance contracts relating thereto, (iii) the current summary plan description and each summary of material modifications
thereto, (iv) the annual report (Form 5500 and all schedules thereto) for the past two years, (v) the most recent Internal Revenue Service (“IRS”) determination or opinion letter and (vi) the annual report,
actuarial report, financial statement and trustee report for the past two years. 
 (d) Each Benefit Plan has been maintained,
operated and administered in compliance in all material respects with its terms and any related documents or agreements and the applicable provisions of ERISA, the Code and all other Laws. All contributions or other amounts payable by the Sellers
with respect to each Benefit Plan in respect of current or prior plan years have been paid or accrued on the Financial Statements (other than with respect to amounts not yet due). 

(e) The Benefit Plans which are “employee pension benefit plans” within the meaning of Section 3(2) of ERISA and which are
intended to meet the qualification requirements of Section 401(a) of the Code (each, a “Pension Plan”) have received determination letters from the IRS to the effect that such plans are qualified and exempt from federal
income taxes under Sections 401(a) and 501(a) of the Code, respectively, and nothing has occurred that would reasonably be expected to adversely affect the qualification of such Benefit Plan. 

(f) No Benefit Plan is subject to Part 3, Subtitle B of Title I of ERISA or Title IV of ERISA. Neither the Sellers nor any ERISA
Affiliate has ever contributed to, or been required to contribute to, any “multiemployer plan” (within the meaning of Section 3(37) of ERISA) and neither the Sellers nor any ERISA Affiliate has any liability (contingent or otherwise)
relating to the withdrawal or partial withdrawal from such a multiemployer plan. 

  
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 (g) There are no pending audits or investigations by any governmental agency involving any
Benefit Plan, and no pending or threatened claims (except for individual claims for benefits payable in the normal operation of the Benefit Plans), suits or proceedings involving any Benefit Plan, any trust or other funding medium thereof, fiduciary
thereof or service provider thereto, nor to the Knowledge of the Sellers is there any reasonable basis for any such claim, suit or proceeding. There has not been any nonexempt prohibited transaction, within the meaning of Section 406 of ERISA
or Section 4975 of the Code, with respect to any Benefit Plan. 
 (h) No Benefit Plan provides benefits, including, without
limitation, death or medical benefits, beyond termination of service or retirement other than (A) coverage mandated by law or (B) death or retirement benefits under a Benefit Plan qualified under Section 401(a) of the Code and neither
the Sellers nor any ERISA Affiliate has made a written or oral representation promising the same. 
 (i) The Sellers’
execution of, and performance of the transactions contemplated by this Agreement will not either alone or in connection with any other event(s) (I) result in any payment or benefit, or increase in payments or benefits or acceleration in the
timing of payments or benefits becoming due to any current or former employee, director, officer, or independent contractor of any Seller, (II) limit the right to merge, amend or terminate any Benefit Plan or (III) result in the payment or
provision of an “excess parachute payment” under Section 280G of the Code, whether under a Benefit Plan or otherwise. 
 (j) Each Benefit Plan that constitutes a “non-qualified deferred compensation plan” within the meaning of Section 409A of the Code, complies in both form and operation with the requirements
of Section 409A of the Code so that no amounts paid pursuant to any such Benefit Plan is subject to Tax under Section 409A of the Code. 
 (k) The Sellers have performed all obligations required to be performed by them and are not in any respect in default under or in violation of any Benefit Plan, nor do the Sellers have any Knowledge of
any such default or violation by any other party to any Benefit Plan. 
 4.15 Labor Matters. 

(a) Other than as set forth on Schedule 4.15(a), (i) no Seller is a party to any labor or collective bargaining agreement
with respect to its Employees, (ii) no Employee of any Seller is represented by any labor organization, (iii) no labor organization or group of Employees of any Seller has made a pending demand for recognition or request for certification,
(iv) and there are no representation or certification proceedings or petitions seeking a representation election presently pending or, to the Knowledge of Sellers, threatened, to be brought or filed with the National Labor Relations Board or
other labor relations tribunal involving any Seller. 
 (b) There are no strikes, lockouts, work stoppages or slowdowns pending
or, to the Knowledge of Sellers, threatened against or involving any Seller. 
 (c) There are no unfair labor practice charges,
arbitrations, grievances or complaints pending or, to the Knowledge of Sellers, threatened in writing against any Seller relating to the employment or termination of employment of any individual by any Seller except those which, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
 (d) There are no complaints, charges,
administrative proceedings or claims against any Seller pending or, to the Knowledge of Sellers, threatened in writing to be brought or filed with any 

  
 23 

 
Governmental Body based on or arising out of the employment by any Seller of any Employee except those which, individually or in the aggregate would not reasonably be expected to have a Material
Adverse Effect. 
 (e) Sellers have not incurred any liability or obligation under the WARN Act or similar state Laws, which
remains unpaid or unsatisfied. 
 (f) Except as set forth on Schedule 4.15(f), the employment of each Employee of Sellers
is at-will. Schedule 4.15(f) lists all written (and includes a summary of all legally binding oral) employment and consulting agreements to which any Seller is a party or by which it is bound. Complete and correct copies of the agreements or
arrangements listed and summarized on Schedule 4.15(f) have been provided or made available to Purchaser. 
 4.16 Bank
Accounts. Schedule 4.16 sets forth a complete list of all bank accounts (including any deposit accounts, securities accounts and any sub-accounts) of Sellers. 
 4.17 SEC Documents; Financial Statements. (a) Sellers have delivered to Purchaser the consolidated balance sheets of the Company and the Company Subsidiaries as of, and consolidated statements
of operations, stockholder’s equity (deficit) and cash flows for, the fiscal years ended February 2, 2013, January 28, 2012 and January 29, 2011 (collectively, the “Audited Financial Statements”). The
Audited Financial Statements have been prepared in accordance GAAP consistently applied in accordance with the Company’s past practice throughout the periods indicated. Sellers have also delivered to Purchaser unaudited condensed consolidated
balance sheets for the Company and the Company Subsidiaries as of May 4, 2013, and the condensed consolidated statements of operations, stockholder’s equity (deficit) and cash flows for the period then ending May 4, 2013
(collectively, the “Unaudited Financial Statements”). The Unaudited Financial Statements have been prepared in accordance with GAAP consistently applied in accordance with Sellers’ past practice except for the absence of
footnotes and customary year-end adjustments (none of which will be material). The Audited Financial Statements and the Unaudited Financial Statements (together the “Financial Statements”) (i) are true, correct and
complete in all material respects, (ii) are in accordance in all material respects with the books and records of Sellers, and (iii) fairly present in all material respects the financial position of Sellers at the dates specified and the
results of their operations for the period covered. The copies of the Financial Statements delivered to Purchaser are true, correct and complete copies. 
 (b) The Company has filed on a timely basis all forms, reports, statements, certifications and other documents (including all exhibits, amendments and supplements thereto) required to be filed by it with
the SEC since December 19, 2011 (all such forms, reports, statements, certificates, and other documents filed, since December 19, 2011 and prior to the date hereof, collectively, the “SEC Documents”), and the
Company has furnished on a timely basis all reports and other documents (including all exhibits, amendments and supplements thereto) required to be furnished by them with the SEC since December 19, 2011 (all such reports and other documents
furnished, since December 19, 2011 and prior to the date hereof, collectively, the “Furnished Reports”). None of the Company Subsidiaries is required to file periodic reports under the Exchange Act. As of the date
hereof, there are no outstanding or unresolved comments in comment letters received from the SEC staff with respect to the SEC Documents or Furnished Reports. No executive officer of the Company has failed to make the certifications required of him
or her under Section 302 or 906 of the Sarbanes-Oxley Act with respect to any SEC Documents. None of the Sellers nor any of their executive officers has received written notice from any Governmental Body challenging or questioning the accuracy,
completeness or manner of filing of the certifications required by the Sarbanes-Oxley Act and made by its principal executive officer and principal financial officer. 

  
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 (c) The SEC Documents and the Furnished Reports (i) have been prepared in all material
respects in accordance with the requirements of the Securities Act and the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder, and (ii) did not, when filed or furnished, as the case may be, contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 

(d) Each of the audited consolidated financial statements included in or incorporated by reference into the SEC Documents (including any
related notes and schedules) has been prepared in accordance with GAAP (except as may be indicated in the notes thereto) and fairly presents in all material respects the consolidated financial position of the Company and the Company Subsidiaries at
the respective dates thereof and the results of operations, changes in equity and cash flows. Each of the unaudited condensed consolidated financial statements included in or incorporated by reference into the SEC Documents (including any related
notes) has been prepared in accordance with GAAP permitted by the SEC under the Exchange Act and fairly presents in all material respects the consolidated financial positions of the Company and the Company Subsidiaries as of the respective dates
thereof and the results of their operations, changes in equity and cash flows for the periods indicated (subject to notes and normal period-end adjustments that will not be material in amount or effect). 

(e) No Seller or any of their respective consolidated subsidiaries has, as of the date of this Agreement, any material Liabilities or
material obligations, in each case of a nature required by GAAP to be reflected in a consolidated balance sheet or the notes thereto, except for Liabilities or obligations (i) reflected or adequately reserved against in the Audited Financial
Statements, (ii) contemplated by or under this Agreement or incurred in connection herewith in compliance with the terms of this Agreement or (iii) incurred in the Ordinary Course of Business. 

4.18 Internal Controls. 
 (a) The Company has designed and maintains a system of internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) sufficient to provide reasonable
assurances regarding the reliability of financial reporting. The Company (i) has designed and maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) to provide reasonable assurance that
information required to be disclosed by the Company in the reports that it files or submits with the Commission is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules, regulations and forms,
and is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure, and (ii) has disclosed, based on its most recent evaluation of internal control over financial
reporting, to the Company’s outside auditors and the audit committee of the Company’s board of directors (x) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
that would reasonably be expected to adversely affect the Company’s ability to record, process, summarize and report financial information and (y) any fraud, whether or not material, that involves management or other employees who have a
significant role in the Company’s internal control over financial reporting, all of which information described in clauses (x) and (y) above has been disclosed by the Company to Purchaser prior to the date hereof. Any material change
in internal control over financial reporting required to be disclosed in any SEC Document has been so disclosed. 
 (b) Since
December 19, 2011, to the Knowledge of Sellers, neither the Company nor any of its subsidiaries has received any complaint, allegation, assertion or claim regarding the accounting or auditing practices, procedures, methodologies or methods of
the Company or any of its subsidiaries or 

  
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their respective internal accounting controls relating to periods after December 19, 2011, except for any complaints, allegations, assertions or claims that have not had, and would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 4.19 WARN Act. Except in
relation to the GOB Sales, no Seller has, within the ninety (90) days immediately prior to the Closing Date, in whole or in part taken any action or actions which would, independently of the transaction contemplated hereby, result in a plant
closing or mass layoff, temporary or otherwise, within the meaning of the WARN Act, or any similar Legal Requirement. 
 4.20
Environmental Matters. Except as set forth on Schedule 4.20 and except for facts, circumstances or conditions that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (a) with
respect to the Purchased Assets, there is no Order with any Governmental Body nor have Sellers received any verbal or written notice, complaint or inquiry from a Governmental Body respecting Environmental Laws, (b) there is no investigation,
action or proceeding pending, or, to the Knowledge of Sellers, threatened that could reasonably be expected to result in Sellers or Purchase incurring any Environmental Liabilities or Obligations, (c) Sellers are not aware of and have not
caused or allowed the Release of Hazardous Materials at, on or under the Acquired Owned Real Property, the Assumed Leased Real Property, the Acquired Buildings, the Stores or the Distribution Center, and (d) Sellers maintain, have obtained and
have complied with all Permits, and all Permits remain effective which are required under or pursuant to Environmental Laws for the operation of the Purchased Assets. Sellers have delivered or made available to Purchaser copies of all Permits,
Permit applications, reports, assessments or tests with respect to compliance of the Purchased Assets with any Environmental Laws or the presence of Hazardous Material which are in the Sellers’ possession, custody or control, including the
following records: (i) reports concerning the removal of underground storage tanks from the Acquired Owned Real Property, the Acquired Buildings, and Assumed Leased Real Property and Remedial Actions (ii) correspondence from Government
Bodies informing Sellers that no further action is required to address Releases which have been the subject of Remedial Action conducted by or on behalf of Sellers; (iii) the most recent final Phase I Environmental Site Assessment reports for
the Acquired Owned Real Property, the Acquired Buildings, Assumed Leased Real Property, Stores and Distribution Center; (v) Permits, Permit applications, and Permit disapprovals; and (iv) inventories of asbestos and asbestos-containing
materials, if any, for the Purchased Assets. 
 4.21 Accounts Receivable. The Accounts Receivable reflected on the
Audited Financial Statements in the SEC Documents and the Accounts Receivable arising after the date thereof (i) have arisen from bona fide transactions entered into by Sellers involving the sale of goods or the rendering of services in the
Ordinary Course of Business; and (ii) constitute only valid, undisputed claims of Seller not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the ordinary court of business consistent
with past practice. The Accounts Receivable reflected on the Audited Financial Statements in the SEC Documents, subject to a reserve for bad debts shown in the Audited Financial Statements included in the SEC Documents, and the Accounts Receivable
arising after the date thereof, subject to a reserve for bad debts on the accounting records of the Business, are due within 90 days after billing. The reserve for bad debts shown on the Audited Financial Statements included in the SEC Documents or,
with respect to Accounts Receivable arising after the date of such financial statements included in the SEC Documents, on the accounting records of the Business have been determined in accordance with GAAP, subject to normal year-end adjustments and
the absence of disclosures normally made in footnotes. 
 4.22 Absence of Certain Changes. 

(a) Since February 3, 2013, there has not been a Material Adverse Effect. 

  
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 (b) Except as set forth on Schedule 4.22(b) or as contemplated by this Agreement,
from the February 3, 2013 to the Agreement Date, Sellers have not: 
 (i) except for executory contracts and
unexpired leases rejected by Sellers pursuant to the Sale Order with the prior written consent of Purchaser, terminated, modified or amended any material Assigned Contract or taken any action which materially violates, materially conflicts with or
resulted in a material breach of any provision of, or constitutes a default under, or give rise to the right of any counterparty to accelerate the obligations under or modify the terms of, any Assigned Contract; 

(ii) purchased or otherwise acquired any material properties or assets (tangible or intangible) or sold, leased,
transferred or otherwise disposed of any Purchased Assets, except for purchases of materials and sales of Inventory in the Ordinary Course of Business, (i) permitted, allowed or suffered any of the Purchased Assets to be subjected to any
Encumbrance (other than Permitted Encumbrances), or (ii) removed any equipment or other material assets (other than Inventory) from the Owned Real Property or Leased Real Property other than in the Ordinary Course of Business; 

(iii) waived or released any claim or rights included in or related to the Purchased Assets or the Business with a value
individually or in the aggregate in excess of $50,000 or revalued any of the Purchased Assets, except for adjustments to the value of Inventory in the Ordinary Course of Business; 

(iv) entered into any material contractual relationship with any third party related to the Purchased Assets or the
Business, other than in the Ordinary Course of Business; 
 (v) made any material commitments for capital
expenditures other than in accordance with the DIP Budget; 
 (vi) other than in the Ordinary Course of Business,
increased the benefits of or compensation (whether in the form of salary, bonus or otherwise) payable to any employee, contractor or consultant of Sellers, or granted any bonus, benefit, payment (contingent or otherwise) or other direct or indirect
compensation to any employee, contractor or consultant of Sellers; 
 (vii) except as required by Law, adopted,
amended or terminated any Seller Plan; 
 (viii) except for consequences relating to the filing of the Bankruptcy
Cases, introduced any material change with respect to the operations of the Business; 
 (ix) suffered any damage
or destruction to or loss of any assets or properties relating to the Purchased Assets or the Business except for any such damage as would not have a Material Adverse Effect on the Business taken as a whole whether or not covered by insurance;

 (x) changed in any way Sellers’ accounting methods, principles or practices other than required by
changes in GAAP; 
 (xi) incurred any Indebtedness or paid, discharged or satisfied any claims, liabilities or
obligations, other than the incurrence of Indebtedness under the DIP Financing Agreements and the payment, discharge or satisfaction in the Ordinary Course of Business of Liabilities incurred in the Ordinary Course of Business; 

  
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 (xii) allowed any Permit held by any Seller to terminate, expire or lapse
relating to the Purchased Assets or the Business except for any such damage as would not have a Material Adverse Effect on the Business taken as a whole; or 
 (xiii) agreed or committed to do any of the foregoing. 
 4.23 No Other
Representations or Warranties. Except for the representations, warranties and covenants of Sellers expressly contained herein, neither Sellers nor their representatives, nor any other Person, makes any other express or implied warranty
(including, without limitation, any implied warranty of merchantability or fitness for a particular purpose) on behalf of Sellers, including, without limitation, (a) the probable success or profitability of ownership, use or operation of the
Purchased Assets by Purchaser after the Closing, (b) the probable success or results in connection with the Bankruptcy Court and the Sale Order, (c) the value, use or condition of the Purchased Assets, which are being conveyed hereby on an
“As Is”, “Where Is” condition at the Closing Date, without any warranty whatsoever (including, without limitation, any implied warranty of merchantability or fitness for a particular purpose). 

ARTICLE V. 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 Subject to the exceptions noted in the schedules delivered by Purchaser concurrently herewith, Purchaser represents and warrants to the Sellers as follows as of the date hereof and as of the Closing Date:

 5.1 Organization and Qualification. Purchaser is duly organized, validly existing and in good standing under the Laws
of its jurisdiction of organization. Purchaser has all requisite power and authority to own, lease and operate its properties and to carry on its business (including the Business) as it is now being conducted, except as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect on the Purchaser’s ability to consummate the transactions contemplated hereby. 
 5.2 Authority. Purchaser has the requisite power and authority to execute and deliver this Agreement and each of the Ancillary Documents to which it is a party, to perform its obligations hereunder
and thereunder, to consummate the transactions contemplated hereby and thereby and to assume and perform the Assumed Liabilities. The execution and delivery of this Agreement by Purchaser and each of the Ancillary Documents to which it is a party,
the performance by Purchaser of its obligations hereunder and thereunder, the consummation of the transactions contemplated hereby and thereby and the assumption and performance of the Assumed Liabilities have been duly and validly authorized by all
necessary actions on the part of Purchaser. This Agreement has been, and at or prior to the Closing, each of the Ancillary Documents to which it is a party will be, duly and validly executed and delivered by Purchaser. Assuming the due
authorization, execution and delivery of this Agreement and the Ancillary Documents by the Sellers and subject to the effectiveness of the Sale Order, this Agreement constitutes, and each Ancillary Document to which Purchaser is a party when so
executed and delivered will constitute, legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with its terms. 

  
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 5.3 No Inconsistent Obligations. Neither the execution and delivery of this Agreement
or any other documents contemplated hereby, nor the consummation of the transactions contemplated herein or therein in accordance with the Sale Order, will, to Purchaser’s knowledge, result in a violation or breach of, or constitute a default
under, (a) the certificate of incorporation, as amended, the bylaws, or other organizational instruments of Purchaser, (b) any applicable ruling or order of any Governmental Authority, (c) any term or provision of any contract or
agreement, (d) any writ, order, judgment, decree, law, rule, regulation or ordinance, (e) any other commitment or restriction to which Purchaser is a party, nor will such actions result in the creation of a Lien. 

5.4 Conflicts; Consents. 
 (a) The execution, delivery and performance by Purchaser of this Agreement or any Ancillary Document to which it is a party, the compliance by Purchaser with any of the provisions hereof or thereof, the
consummation of the transactions contemplated hereby or thereby and the taking by Purchaser of any other action contemplated hereby or thereby, do not and will not contravene, violate or conflict with any term or provision of its Organizational
Documents. 
 (b) Except (i) as set forth on Schedule 5.4(b) and (ii) for filings as may be required under the
HSR Act, no consent, waiver, approval, order or authorization of, or registration, qualification, designation or filing with any Person or Governmental Body is required in connection with the execution, delivery and performance by Purchaser of this
Agreement or the Ancillary Documents to which it is a party, the compliance by Purchaser with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, the assumption and performance of the Assumed
Liabilities or the taking by Purchaser of any other action contemplated hereby or thereby, other than such filings, notices or consents, the failure of which to make or obtain would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on Purchaser’s ability to perform its obligations under this Agreement and the Ancillary Documents to which it is a party, to assume and perform the Assumed Liabilities or to consummate on a timely basis the
transactions contemplated hereby or thereby. 
 5.5 Brokers. Except for Goldman Sachs & Co., no Person has
acted, directly or indirectly, as a broker, finder or financial advisor for Purchaser in connection with the transactions contemplated by this Agreement and Seller are not or will not become obligated to pay any fee or commission or like payment to
any broker, finder or financial advisor as a result of the consummation of the transactions contemplated by this Agreement based upon any arrangement made by or on behalf of Purchaser. 

5.6 Adequate Assurances Regarding Assigned Contracts. As of the Closing, Purchaser will be capable of satisfying the conditions
contained in Sections 365(b)(1)(C) and 365(f) of the Bankruptcy Code with respect to the Assigned Contracts. 
 5.7 No
Litigation. To Purchaser’s knowledge, there are no material actions, suits, claims, investigations, hearings, or proceedings of any type pending (or, to the knowledge of Purchaser, threatened) instituted against Purchaser challenging the
legality of the transactions contemplated in this Agreement (other than with respect to any objection which may be filed in connection with the Bankruptcy Cases). 
 5.8 Due Diligence. 
 (a) AS-IS WHERE-IS SALE; DISCLAIMERS; RELEASE.
EXCEPT AS OTHERWISE PROVIDED IN ARTICLE V, IT IS UNDERSTOOD AND AGREED THAT, UNLESS 

  
 29 

 
EXPRESSLY STATED HEREIN, SELLERS ARE NOT MAKING AND HAVE NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PURCHASED ASSETS,
INCLUDING BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

(b) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, PURCHASER ACKNOWLEDGES AND AGREES THAT, UPON THE CLOSING, SELLERS SHALL
SELL AND CONVEY TO PURCHASER, AND PURCHASER SHALL ACCEPT, THE PURCHASED ASSETS “AS IS, WHERE IS, WITH ALL FAULTS.” 
 ARTICLE VI. 
 EMPLOYEES 

6.1 Employee Matters. 
 (a) The Purchaser intends to extend offers of employment (which may be for employment with Purchaser or any of its Affiliates) to all of the Sellers’ employees related to the Purchased Assets as of
the date hereof who have not been terminated or otherwise left the employ of the Sellers prior to the Closing Date. Sellers have made available to Purchaser a correct and complete list of all their current employees. The Sellers shall provide
Purchaser access to their personnel records and personnel files, and shall provide such other information regarding their employees as Purchaser may reasonably request. All such employees who accept such offers of employment with Purchaser or its
Affiliates are hereinafter referred to as the “Transferred Employees” and such acceptance of offers shall be effective immediately after the Closing. Effective as of immediately before the Closing, each Seller shall terminate
the employment of its respective employees who are Transferred Employees. Each Transferred Employee shall be eligible to participate in all of Purchaser’s employee benefit plans in accordance with the terms of those plans, to the same extent
and in the same manner as new employees of Purchaser or, at Purchaser’s sole discretion, Purchaser may permit or require the Transferred Employees to continue to participate in the Assumed Plans. 

(b) Subject to Purchaser’s right to terminate any Transferred Employees, for a period of one year from and after the Closing Date,
Purchaser shall provide each Transferred Employee with (i) base compensation/wage rate that is no lower than that provided to such Transferred Employees as of the date of this Agreement; (ii) bonus opportunity that is no less favorable
than that would have existed if Transferred Employee were still employed by Seller; (iii) other employee benefits that are no less favorable in the aggregate than those provided by Seller, including, but not limited to, vacation days and other
paid-time-off; and (iv) any base compensation/wage rate increases that Sellers have committed to providing to any Transferred Employees, but which increases have not been enacted as of the Closing Date, as set forth in Schedule 6.1(b).
For purposes of eligibility, vesting, participation and benefit accrual under any Purchaser plans and programs providing employee benefits to Transferred Employees after the Closing Date (the “Post-Closing Plans”), each
Transferred Employee shall be credited with his or her years of service with Sellers before the Closing Date to the same extent as such Transferred Employee was entitled, before the Closing Date, to credit for such service under substantially
similar Seller Employee Benefit Plans in which such Transferred Employees participated before the Closing Date, except to the extent such credit would result in a duplication of benefits. 

(c) For purposes of each Post-Closing Plan providing medical, dental, hospital, pharmaceutical or vision benefits to any Transferred
Employee, Purchaser shall use reasonable efforts to 

  
 30 

 
cause to be waived all pre-existing condition exclusions and actively-at-work requirements of such Post-Closing Plan for such Transferred Employee and his or her covered dependents (unless such
exclusions or requirements were applicable under comparable Benefit Plans). In addition, Purchaser shall use reasonable efforts to cause any co-payments, deductible and other eligible expenses incurred by such Transferred Employee and/or his or her
covered dependents under any Benefit Plan providing, medical, dental, hospital, pharmaceutical or vision benefits during the plan year ending on the Closing Date to be credited for purposes of satisfying all deductible, coinsurance and maximum
out-of-pocket requirements applicable to such Transferred Employee and his or her covered dependents for the applicable plan year of each comparable Post-Closing Plan in which he or she participates. 

(d) Purchaser shall assume and honor all vacation days and other paid-time-off accrued or earned during the one (1) year period
ending on the Petition Date, but not yet taken, by each Transferred Employee as of the Closing Date, which shall be delivered by Sellers to Purchaser no later than five (5) Business Days after the Closing Date. 

(e) The Sellers shall be responsible for the payment of any severance payment or benefits that become due to any current or former
employee, officer, director, member, partner or independent contractor as a result of the termination of such individual by any Seller or ERISA Affiliate thereof. The Sellers shall be responsible for all legally mandated health care continuation
coverage for their, and their Affiliates’, current and former employees (and their qualified beneficiaries) who had or have a loss of coverage due to a “qualifying event” (within the meaning of Section 603 of ERISA) which
occurred or occurs on or prior to the Closing Date including, without limitation, any loss of coverage that results directly or indirectly from the transactions contemplated by this Agreement. The Purchaser or its Affiliates shall be responsible for
any severance benefits for any Transferred Employee who terminates employment with the Purchaser or such Affiliate after the Closing Date. 
 (f) At least two days prior to the Closing, Purchaser will provide the Sellers a list of the Benefit Plans that it will assume, if any (the “Assumed Plans”). Purchaser, on the one
hand, and the Sellers, on the other, shall take such actions as are necessary and reasonably requested by the other Party to cause Purchaser to assume sponsorship of the Assumed Plans as of the Closing and to effect the transfer of all assets and
benefit liabilities of the Assumed Plans together with all related trust, insurance policies and administrative services agreements, effective as soon as practicable following the Closing; provided, however, that Purchaser shall not be assuming or
be responsible for any liabilities or obligations arising with respect to or in connection with such Assumed Plans to the extent such liabilities or obligations arose prior to Closing or with respect to any employee or former employee of the Sellers
who does not become a Transferred Employee (except to cause payment for any claim appropriately covered by a transferred insurance policy). 
 (g) On and following the Agreement Date, Seller and Purchaser shall reasonably cooperate in all matters reasonably necessary to effect the transactions contemplated by this Section 6.1,
including exchanging information and data relating to workers’ compensation, employee benefits and employee benefit plan coverage, and in obtaining any governmental approvals required hereunder, except as would result in the violation of any
applicable Legal Requirement, including without limitation, any Legal Requirement relating to the safeguarding of data privacy. 

(h) The provisions of this Section 6.1 are for the sole benefit of the parties to this Agreement only and shall not be
construed to grant any rights, as a third party beneficiary or otherwise, to any person who is not a party to this Agreement, nor shall any provision of this Agreement be deemed to be the adoption of, or an amendment to, any employee benefit plan,
as that term is defined in Section 3(3) of ERISA, or otherwise to limit the right of Purchaser or the Sellers to amend, modify or terminate any 

  
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such employee benefit plan. In addition, nothing contained herein shall be construed to (i) prohibit any amendments to or termination of any employee benefit plans or (ii) prohibit the
termination or change in terms of employment of any employee (including any Transferred Employee) as permitted under applicable law. Nothing herein, expressed or implied, shall confer upon any employee (including any Transferred Employee) any rights
or remedies (including, without limitation, any right to employment or continued employment for any specified period) of any nature or kind whatsoever, under or by reason of any provision of this Agreement. 

ARTICLE VII. 

BANKRUPTCY COURT MATTERS 
 7.1 Approval of Bid Protections and Overbid Protection. Subject to the entry of the Bidding Procedures Order, in consideration for Purchaser having expended considerable time and expense in
connection with this Agreement and the negotiation hereof and the identification and quantification of assets of Sellers, Sellers shall pay to Purchaser promptly upon the effective date of termination of this Agreement in accordance with, and only
to the extent provided in, the provisions of Section 3.5, the Expense Reimbursement and the payment of a break-up fee of 3% of the Purchase Price (calculated solely by reference to Section 2.1(a)(ii)) (the
“Break-Up Fee”, together with the Expense Reimbursement, the “Bid Protections”). In addition, the Bidding Procedures Order shall provide for an initial overbid protection in the amount of five
million Dollars ($5,000,000) over and above the aggregate of the Purchase Price and the Bid Protections, and minimum bid increments thereafter of two million Dollars ($2,000,000) (the “Overbid Protection”). The obligations of
Seller to pay the Bid Protections (i) shall be entitled to administrative expense claim status under Sections 503(b)(1)(A) and 507(a)(2) of the Bankruptcy Code, (ii) shall not be subordinate to any other administrative expense claim
against the Sellers, other than any adequate protection order in existence at the time the Bid Protections are approved, and (iii) shall survive the termination of this Agreement in accordance with Section 3.6. The Bidding
Procedures Order shall approve the Bid Protections as set forth in this paragraph. 
 7.2 Competing Bid and Other
Matters. 
 (a) Within two business days following the Petition Date, Seller shall file with the Bankruptcy Court an
application or motion seeking approval of (i) the Bidding Procedures Order and (ii) the form of this Agreement (a true and complete copy of which shall be attached to such application or motion without schedules) and the Sellers’
authority to enter into this Agreement (the “Sale and Bidding Procedures Motion”); provided, that such application or motion and all exhibits thereto shall be in form and substance acceptable to Purchaser, in its sole
discretion. 
 (b) This Agreement and the transactions contemplated hereby are subject to Sellers’ right and ability to
consider higher or better competing bids with respect to the Business and a material portion of the Purchased Assets pursuant to the Bidding Procedures Order (each a “Competing Bid”). Following completion of the Auction, if
Purchaser is the Prevailing Bidder, Sellers shall not initiate contact with, solicit or encourage submission of any inquiries, proposals or offers by, any Person in connection with any sale or other disposition of the Purchased Assets. In addition,
unless otherwise directed by the Bankruptcy Court, Sellers shall not after completion of the Auction respond to or pursue any proposed Alternative Transaction or perform any other acts related thereto. 

(c) If an Auction is conducted, and Purchaser is not the prevailing party at the conclusion of such Auction (such prevailing party, the
“Prevailing Bidder”), Purchaser shall, if its bid is determined to be the next highest bid, have the option, in its sole discretion, to serve as a back-up bidder 

  
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(the “Back-up Bidder”) and keep Purchaser’s bid to consummate the transactions contemplated by this Agreement on the terms and conditions set forth in this Agreement
(as the same may be improved upon in the Auction) open and irrevocable until the earlier of (i) 5:00 p.m. (prevailing Eastern time) on the date which is fifteen (15) days after the date of the Sale Hearing (the “Outside Back-up
Date”); provided, however, that notwithstanding the foregoing, in no event shall the Outside Back-up Date be later than September 16, 2013 or (ii) the date of closing of an Alternative Transaction with the Prevailing Bidder.
Following the Sale Hearing and prior to the Outside Back-up Date, if the Prevailing Bidder fails to consummate the applicable Alternative Transaction as a result of a breach or failure to perform on the part of such Prevailing Bidder, the Back-up
Bidder will be deemed to have the new prevailing bid, and Seller will be authorized, without further order of the Bankruptcy Court, to consummate the transactions contemplated by this Agreement on the terms and conditions set forth in this Agreement
(as the same may be improved upon in the Auction) with the Back-up Bidder. 
 (d) The Sellers shall promptly serve true and
correct copies of the Sale and Bidding Procedures Motion and all related pleadings in accordance with the Bidding Procedures Order, the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Rules for the United States Bankruptcy
Court for the District of Delaware and any other applicable order of the Bankruptcy Court. 
 7.3 Sale Order. The Sale
Order shall be entered by the Bankruptcy Court. The Sale Order shall, among other things, (i) approve, pursuant to Sections 105, 363 and 365 of the Bankruptcy Code, (A) the execution, delivery and performance by Sellers of this Agreement,
(B) the sale of the Purchased Assets to Purchaser on the terms set forth herein and free and clear of all Encumbrances (other than Encumbrances included in the Assumed Liabilities and Permitted Encumbrances), and (C) the performance by
Sellers of their respective obligations under this Agreement; (ii) authorize and empower Sellers to assume and assign to Purchaser the Assigned Contracts; and (iii) find that Purchaser is a “good faith” buyer within the meaning
of Section 363(m) of the Bankruptcy Code, not a successor to any Sellers and grant Purchaser the protections of Section 363(m) of the Bankruptcy Code. Purchaser agrees that it will promptly take such actions as are reasonably requested by
Sellers to assist in obtaining Bankruptcy Court approval of the Sale Order, including furnishing affidavits or other documents or information for filing with the Bankruptcy Court for purposes, among others, of (a) demonstrating that Purchaser
is a “good faith” purchaser under Section 363(m) of the Bankruptcy Code, and (b) establishing adequate assurance of future performance within the meaning of Section 365 of the Bankruptcy Code. 

7.4 Contracts. Sellers shall serve on all non-Seller counterparties to all of their Contracts a notice specifically stating that
Sellers are or may be seeking the assumption and assignment of such Contracts and shall notify such non-Seller counterparties of the deadline for objecting to the Cure Costs, if any, which deadline shall not be less than three (3) Business Days
prior to the Sale Hearing. 
 7.5 Bankruptcy Filings. From and after the Agreement Date and until the Closing Date,
Sellers shall deliver to Purchaser drafts of any and all material pleadings, motions, notices, statements, schedules, applications, reports and other papers to be filed or submitted in connection with this Agreement for Purchaser’s prior review
and comment, including any Tax motions, and such filings shall be acceptable to Purchaser in its sole discretion to the extent they relate to the Purchased Assets, any Assumed Liabilities or any of Purchaser’s obligations hereunder. Sellers
agree to diligently prosecute the entry of the Bidding Procedures Order and the Sale Order. In the event the entry of the Bidding Procedures Order or the Sale Order shall be appealed, Sellers shall use their best efforts to defend such appeal.
Sellers shall comply with all notice requirements (i) of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure, or (ii) imposed by the Sale Order, in each case, in connection with any pleading, notice or motion to be filed in
connection herewith. 

  
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 7.6 Sale Free and Clear. Sellers acknowledge and agree, and the Sale Order shall
provide that, on the Closing Date and concurrently with the Closing, all then existing or thereafter arising obligations, Liabilities and Encumbrances of, against or created by Sellers or their bankruptcy estate, to the fullest extent permitted by
Section 363 of the Bankruptcy Code, shall be fully released from and with respect to the Purchased Assets. On the Closing Date, the Purchased Assets shall be transferred to Purchaser free and clear of all obligations, Liabilities and
Encumbrances, other than Permitted Encumbrances and the Assumed Liabilities to the fullest extent permitted by Section 363 of the Bankruptcy Code. 
 ARTICLE VIII. 
 COVENANTS AND AGREEMENTS 

8.1 Conduct of Business of Sellers. During the Pre-Closing Period, Sellers shall use commercially reasonable efforts, except as
otherwise required, authorized or restricted pursuant to the Bankruptcy Code or an Order of the Bankruptcy Court, to operate the Business in the Ordinary Course of Business (among other things, Sellers will not incur unreasonable liabilities,
including, without limitation, inappropriate increases in Inventory or factoring of accounts receivable). Sellers shall use commercially reasonable efforts to (A) preserve intact their respective business organizations, (B) maintain the
Business and the Purchased Assets (normal wear and tear excepted), (C) keep available the services of their respective officers and Employees, (D) maintain satisfactory relationships with licensors, licensees, suppliers, contractors,
distributors, consultants, customers, vendors and others having business relationships with Sellers in connection with the operation of the Business (other than payment of pre-petition claims), (E) pay all of their respective post-petition
obligations in the Ordinary Course of Business, and (F) continue to operate the Business and Purchased Assets in all material respects in compliance with all Laws applicable to the Business and Sellers. Without limiting the generality of the
foregoing, and except (i) as otherwise expressly provided in or contemplated by this Agreement, or (ii) required, authorized or restricted pursuant to the Bankruptcy Code or an Order of the Bankruptcy Court, on or prior to the Closing
Date, Sellers may not, without the prior written consent of Purchaser, take any of the following actions with respect to the Business or the Purchased Assets: 
 (a) other than as set forth in Schedule 8.1(a), (i) modify in any manner the compensation of any of the Employees or officers, or accelerate the payment of any such compensation (other than
such that the liability associated with such modification is excluded from the Assumed Liabilities), (ii) grant any (a) bonuses, whether monetary or otherwise, (b) increase wages or salary or (c) increase other compensation or
material benefits, in any case, in respect of any current or former employee, independent contractor, director or officer of the Sellers; 
 (b) engage any new Employee other than in the Ordinary Course of Business, provided, however, that Sellers shall not engage any new Employee whose aggregate annual salary exceeds $100,000;

 (c) except as set forth in Schedule 8.1(c), remove or permit to be removed from any building, facility, or real
property any asset or any Inventory (other than in connection with the sale of Inventory in the Ordinary Course of Business and the sale of fixtures, equipment and related assets in connection with the closing of stores in an amount not to exceed
$50,000); 
 (d) sell, lease or otherwise dispose of, mortgage, hypothecate or otherwise encumber any asset (other than sales of
Inventory in the Ordinary Course of Business and other than any liens provided for in the DIP Order); 

  
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 (e) amend, terminate or renew any Contract other than (i) in the Ordinary Course of
Business or (ii) outside of the Ordinary Course of Business, which results in an increase in the term of any such Contract by more than one (1) year or results in an obligation of any Seller in excess of $75,000; 

(f) fail to use commercially reasonable efforts to maintain the validity of Sellers’ rights in, to or under any Intellectual
Property; 
 (g) fail to use commercially reasonable efforts to maintain all material Permits of Sellers, used in the operation
of the Business or the Purchased Assets; 
 (h) make any unusual or extraordinary efforts to collect any outstanding Accounts
Receivable or intercompany obligation, liability or Indebtedness, give any discounts or concessions for early payment of such accounts receivable or intercompany obligation, liability or Indebtedness, other than the usual discounts given by the
Business in the Ordinary Course of Business and make any sales of, or, other than liens provided for in the DIP Order, convey any interest in, any accounts receivable or intercompany obligation, liability or Indebtedness to any third party;

 (i) other than transactions pursuant to agreements or arrangements in effect on the Petition Date as set forth on
Schedule 8.1(i), engage in any transaction with any Affiliate, subsidiary, shareholder, officer or director of any Seller (other than in the Ordinary Course of Business), incur or assume any long term or short term debt with or on behalf
of any such Person or guarantee, endorse or otherwise be liable or responsible (whether directly, indirectly, contingently or otherwise) for the obligations of any such Person; 

(j) make any change in their method of accounting, except in accordance with GAAP; 

(k) fail to maintain any insurance policy in effect on the date hereof or amend any such policy other than extensions in the Ordinary
Course of Business; 
 (l) accelerate the payment of any obligation, Liability or Indebtedness of any Seller; 

(m) file any Tax Return (other than consistent with past practice and applicable Law) or make, change or rescind any Tax election or file
any amended Tax Return or change its fiscal year or financial or Tax accounting methods, policies or practices or settle any Tax Liability, except in each case as would not reasonably be expected to result in any Liability to, or have any adverse
effect on, the Purchaser or the Business.; 
 (n) enter into, termination of, adoption of or amendment to Plan (other than
amendments required by law or to maintain the tax qualified status of any Benefit Plan under Section 401(a) of the Code), any change in control or severance agreement or any other Benefit Plan or collective bargaining agreement; 

(o) loan to, or entry into any other transaction (other than in the Ordinary Course of Business) with, any employee, officer, director or
independent contractor; 
 (p) settle or agree to settle any pending or threatened litigation, except to the extent that such
settlement is either (i) pursuant to an insured claim or (ii) less than $50,000; 

  
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 (q) other than transactions pursuant to agreements or arrangements in effect as set forth in
Schedule 8.1(q), enter into new agreements to construct or remodel any of Seller’s stores; 
 (r) engage in
substantive discussion with any Governmental Body related to any alleged or actual non-compliance with Environmental Laws without at least three days advance notice to Purchaser or enter into any settlement thereof including fines or payments in
excess of $50,000 or otherwise providing for injunctive relief of any kind; 
 (s) agree with the applicable landlord to a
modification of terms of the existing lease for any Assumed Leased Real Property; and 
 (t) agree, whether in writing or
otherwise, to do any of the foregoing. 
 8.2 Access to Information. Sellers agree that, between the Agreement Date and
the earlier of the Closing Date and the date on which this Agreement is terminated in accordance with Section 3.4, Purchaser shall be entitled, through its officers, employees, legal counsel, accountants and other authorized
representatives, agents and contractors (“Representatives”), to have such reasonable access to and make such reasonable investigation and examination of the books and records, properties, businesses, assets, Employees,
accountants, auditors, counsel and operations of Sellers as Purchaser’s Representatives may reasonably request. Any such investigations and examinations shall be conducted during regular business hours upon reasonable advance notice and under
reasonable circumstances. Each Seller shall use commercially reasonable efforts to cause its Representatives to reasonably cooperate with Purchaser and Purchaser’s Representatives in connection with such investigations and examinations, and
Purchaser shall, and use its commercially reasonably efforts to cause its Representatives to, reasonably cooperate with the Sellers and their respective Representatives, and shall use its commercially reasonable efforts to minimize any disruption to
the Business. 
 8.3 Assignability of Certain Contracts. To the extent that the assignment to Purchaser of any Assigned
Contract pursuant to this Agreement is not permitted without the consent of a third party and such restriction cannot be effectively overridden or canceled by the Sale Order or other related order of the Bankruptcy Court, then this Agreement will
not be deemed to constitute an assignment of or an undertaking or attempt to assign such Contract or any right or interest therein unless and until such consent is obtained; provided, however, that the Parties will use their
commercially reasonable efforts, before the Closing, to obtain all such consents; provided, further, that if any such consents are not obtained prior to the Closing Date, Sellers and Purchaser will reasonably cooperate with each other
in any lawful and feasible arrangement designed to provide Purchaser with the benefits and obligations of any such Contract and Purchaser shall be responsible for performing all obligations under such Contract required to be performed by Sellers on
or after the Closing Date to the extent set forth in this Agreement. 
 8.4 Rejected Contracts. Sellers shall not reject
any Assigned Contract in any bankruptcy proceeding following the Agreement Date without the prior written consent of Purchaser, which Purchaser may withhold, condition or delay, in its sole discretion. 

8.5 Reasonable Efforts; Cooperation. 
 (a) Subject to the other provisions hereof, each Party shall use its commercially reasonable efforts to perform its obligations hereunder and to take, or cause to be taken, and do, or cause to be done,
all things necessary, proper or advisable under applicable Law to cause the transactions contemplated herein to be effected as soon as practicable, but in any event on or prior to the Outside Date, in accordance with the terms hereof and shall
cooperate in a commercially reasonable manner with each other Party and its Representatives in connection with any step required to be taken as a part of its obligations hereunder. 

  
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 (b) In the event that any of the Parties to this Agreement discovers a Contract related to
the Business, the Purchased Assets or the Assumed Liabilities during the period from and after the Agreement Date, and such Contract (i) was unknown as of the Agreement Date, (ii) is a Contract that Purchaser wishes to assume the rights
and obligations of and (iii) such Contract would not be deemed a Rejected Contract by Seller, Purchaser and Seller shall execute, acknowledge and deliver such other instruments and take such further actions as are reasonably practicable for
Purchaser to assume the rights and obligations under such Contract. 
 (c) The obligations of Seller pursuant to this
Section 8.5 shall be subject to any orders entered, or approvals or authorizations granted or required, by or under the Bankruptcy Court or the Bankruptcy Code (including in connection with the Bankruptcy Cases), and each of Seller’
obligations as a debtor-in-possession to comply with any order of the Bankruptcy Court (including the Bidding Procedures Order and the Sale Order) and Sellers’ duty to seek and obtain the highest or otherwise best price for the Business as
required by the Bankruptcy Code. 
 (d) Sellers, on the one hand, and Purchaser, on the other hand, will provide each other with
such cooperation and information as either of them may reasonably request of the other in connection with filing any Tax Return, amended Tax Return or claim for refund, determining a liability for Taxes or a right to a refund of Taxes, or
participating in or conducting any audit or other proceeding in respect of Taxes (such cooperation and information shall include providing copies of relevant Tax Returns or portions thereof, together with accompanying schedules, related work papers
and documents relating to rulings and other determinations by Tax authorities). In addition, Purchaser shall make available to Sellers, without charge to Sellers, such office space and employee support reasonably necessary to assist Sellers to wind
up Sellers’ operations following the Closing, resolve the Bankruptcy Cases, dissolve any or all of the Sellers and prepare and file the Tax Returns. Any information obtained under this Section 8.5(d) shall be kept confidential
except as may be otherwise necessary in connection with the filing of Tax Returns or claims for refund or in conducting any audit or other proceeding. 
 (e) Sellers, on the one hand, and Purchaser, on the other hand, (i) shall promptly inform each other of any communication from any Governmental Body concerning this Agreement, the transactions
contemplated hereby, and any filing, notification or request for approval and (ii) shall permit the other to review in advance any proposed written or material oral communication or information submitted to any such Governmental Body in
response thereto. In addition, none of Parties shall agree to participate in any meeting with any Governmental Body in respect of any filings, investigation or other inquiry with respect to this Agreement or the transactions contemplated hereby,
unless such Party consults with the other Parties in advance and, to the extent permitted by any such Governmental Body, gives the other Parties the opportunity to attend and participate thereat, in each case to the maximum extent practicable.
Subject to restrictions under any Law, each of Purchaser, on the one hand, and Sellers, on the other hand, shall furnish the other with copies of all correspondence, filings and communications (and memoranda setting forth the substance thereof)
between it and its Affiliates and their respective Representatives on the one hand, and the Governmental Body or members of its staff on the other hand, with respect to this Agreement, the transactions contemplated hereby (excluding documents and
communications which are subject to preexisting confidentiality agreements or to the attorney-client privilege or work product doctrine or which refer to valuation of the Business) or any such filing, notification or request for approval. Each Party
shall also furnish the other Party with such necessary information and assistance as such other Party and its Affiliates may reasonably request in connection with their preparation of necessary filings, registration or submissions of information to
the Governmental Body in connection with this Agreement, the transactions contemplated hereby and any such filing, notification or request for approval. 

  
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 8.6 Further Assurances. Each Party shall execute and cause to be delivered to each
other Party such instruments and other documents, and shall take such other actions, as such other Party may reasonably request (prior to, at or after the Closing) for the purpose of carrying out or evidencing any of the transactions contemplated by
this Agreement. After the Closing, each Seller shall promptly transfer or deliver to Purchaser cash, checks (which shall be properly endorsed) or other property that any Seller may receive in respect of any deposit, prepaid expense, receivable or
other item that constitutes part of the Purchased Assets or relates to the Assumed Liabilities. 
 8.7 Notification of
Certain Matters. Sellers shall give prompt notice to Purchaser, and Purchaser shall give prompt notice to Sellers, of (i) any notice or other communication from any Person alleging that the consent of such Person which is or may be required
in connection with the transactions contemplated by this Agreement or the Ancillary Documents is not likely to be obtained prior to Closing, (ii) any written objection or proceeding that challenges the transactions contemplated hereby or the
entry of the approval of the Bankruptcy Court and (iii) the status of matters relating to the completion of the transactions contemplated hereby, including promptly furnishing the other with copies of notices or other communications received by
Sellers or Purchaser or by any of their respective Affiliates (as the case may be), from any third party and/or any Governmental Body with respect to the transactions contemplated by this Agreement. 

8.8 Confidentiality. 
 (a) Purchaser acknowledges that the confidential information provided to them in connection with this Agreement, including under Section 8.2, and the consummation of the transactions
contemplated hereby, is subject to the terms and conditions of the Confidentiality Agreement. 
 (b) Following the completion of
the Auction, Sellers agree to maintain, unless disclosure is required by applicable Law, the confidentiality of any confidential information regarding the Business which is in Sellers’ possession or of which Sellers are aware. Sellers hereby
further agree, unless disclosure is required by applicable Law, to take all appropriate steps, consistent with Sellers’ past practice, to safeguard such confidential information and to protect it against disclosure, misuse, loss and theft. In
furtherance and not in limitation of the foregoing, Sellers shall not, unless required by applicable Law, disclose to any Person (a) any confidential information regarding the Business, provided, that confidential information shall not
include information that becomes generally available to the public other than as a result of the breach of this Section 8.8(b) or information not otherwise known by the Sellers that becomes available to any Seller from a Person other
than Purchaser, or (b) any of the discussions or negotiations conducted with Purchaser in connection with this Agreement, provided, that Sellers shall be entitled to disclose (i) any information required to be disclosed by Sellers
to the Bankruptcy Court, the United States Trustee, parties in interest in the Bankruptcy Cases, other Persons bidding on assets of Sellers, (ii) any information required to be disclosed by Sellers pursuant to any applicable Law (including,
without limitation, the Bankruptcy Code), legal proceeding or Governmental Authority, or (iii) any information to Sellers’ counsel and financial advisor; provided, that, in each case, such disclosure shall be limited to the
information that is so required to be disclosed and the Person(s) to whom such disclosure is required. Notwithstanding anything in this Section 8.8 to the contrary, unless disclosure is required by applicable Law, the confidentiality of
any trade secrets of the Business shall be maintained for so long as such trade secrets continue to be entitled to protection as trade secrets of the Business. 

  
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 8.9 Preservation of Records. Sellers (or any subsequently appointed bankruptcy estate
representative, including, but not limited to, a trustee, a creditor trustee or a plan administrator) and Purchaser agree that each of them shall preserve and keep the books and records held by it relating to the pre-Closing Business for a period of
three (3) months from the Closing Date and shall make such books and records available to the other Parties (and permit such other Party to make extracts and copies of such books and records at its own expense) as may be reasonably required by
such Party in connection with, among other things, any insurance claims by, legal proceedings or Tax audits against or governmental investigations of Sellers or Purchaser or in order to enable Sellers or Purchaser to comply with their respective
obligations under this Agreement and each other agreement, document or instrument contemplated hereby or thereby. In the event Sellers, on the one hand, or Purchaser, on the other hand, wish to destroy such records during such three (3) month
period, such Party shall first give twenty (20) days’ prior written notice to the other and such other Party shall have the right at its option and expense, upon prior written notice given to such Party within that twenty (20) day
period, to take possession of the records within thirty (30) days after the date of such notice. 
 8.10 Publicity.
Neither Seller nor Purchaser shall issue any press release or public announcement concerning this Agreement or the transactions contemplated hereby without obtaining the prior written approval of the other party hereto, which approval will not be
unreasonably withheld or delayed, unless, in the sole judgment of Purchaser or Seller, disclosure is otherwise required by applicable Law or by the Bankruptcy Court with respect to filings to be made with the Bankruptcy Court in connection with this
Agreement or by the applicable rules of any stock exchange on which Purchaser or Seller lists securities, provided that the party intending to make such release shall use its best efforts consistent with such applicable Law or Bankruptcy
Court requirement to consult with the other party with respect to the text thereof. 
 8.11 Material Adverse Effect.
Sellers shall promptly inform Purchaser in writing of the occurrence of any event that has had, or is reasonably expected to have, a Material Adverse Effect. 
 8.12 Casualty Loss. Notwithstanding any provision of this Agreement to the contrary, if, before the Closing, all or any portion of the Purchased Assets is (a) condemned or taken by eminent
domain, or (b) is damaged or destroyed by fire, flood or other casualty, Seller shall notify Purchaser promptly in writing of such fact, (i) in the case of condemnation or taking, Seller shall assign or pay, as the case may be, any
proceeds thereof to Purchaser at the Closing, and (ii) in the case of fire, flood or other casualty, Seller shall assign the insurance proceeds therefrom to Purchaser at Closing. Notwithstanding the foregoing, the provisions of this
Section 8.12 shall not in any way modify Purchaser’s other rights under this Agreement, including any applicable right to terminate the Agreement if any condemnation, taking, damage or other destruction resulted in a Material
Adverse Effect. 
 8.13 No Successor Liability. The Parties intend that, except where expressly prohibited under
applicable Law, upon the Closing, Purchaser shall not be deemed to: (i) be the successor of Sellers, (ii) have, de facto, or otherwise, merged with or into Sellers, (iii) be a mere continuation or substantial continuation of
Sellers or the enterprise(s) of Sellers, or (iv) be liable for any acts or omissions of Sellers in the conduct of the Business or arising under or related to the Purchased Assets other than as set forth in this Agreement. Without limiting the
generality of the foregoing, and except as otherwise provided in this Agreement, the Parties intend that Purchaser shall not be liable for any Encumbrance (other than Assumed Liabilities and Permitted Encumbrances) against Sellers or any of Sellers
predecessors or Affiliates, and Purchaser shall have no successor or vicarious liability of any kind or character whether known or unknown as of the Closing Date, whether now existing or hereafter arising, or whether fixed or contingent, with
respect to the Business, the Purchased Assets or any Liabilities of Sellers arising prior to the Closing Date. The Parties agree that the provisions substantially in the form of this Section 8.13 shall be reflected in the Sale Order.

  
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 8.14 Change of Name. Promptly following the Closing, each Seller shall, and shall
cause its direct and indirect Subsidiaries to, discontinue the use of its current name (and any other trade names or “d/b/a” names currently utilized by each Seller or its direct or indirect Subsidiaries) and shall not subsequently change
its name to or otherwise use or employ any name which includes the words “Orchard”, “Orchard Supply Hardware” and/or “OSH” without the prior written consent of Purchaser, and each Seller shall cause the names of Sellers
in the caption of the Bankruptcy Cases to be changed to the new names of each Seller as provided in the last sentence of this Section 8.14. Notwithstanding the above, Sellers and their Subsidiaries may continue to use their current names
and any other names or DBA’s currently utilized by the Sellers or their subsidiaries in relation to the wind-down of stores or GOB Sales, which will proceed as quickly as possible. 

8.15 Receivables. From and after the Closing, if any Seller receives or collects any funds relating to Accounts Receivable, in
respect of the Purchased Assets, such Seller shall remit such funds to Purchaser within Five Business Days after its receipt thereof. 
 8.16 Antitrust Approvals. (a) Purchaser and Sellers will (i) make or cause to be made all filings required of each of them or any of their respective Affiliates under the HSR Act or other
Antitrust Laws with respect to the transactions contemplated hereby as promptly as practicable and, in any event, within 10 Business Days after the entry of the Bidding Procedure Order in the case of all filings required under the HSR Act and within
four weeks in the case of all other filings required by other Antitrust Laws, (ii) comply at the earliest practicable date with any request under the HSR Act or other Antitrust Laws for additional information, documents or other materials
received by each of them or any of their respective subsidiaries from Federal Trade Commission (the “FTC”), the Antitrust Division of the United States Department of Justice (the “Antitrust Division”)
or any other Governmental Body in respect of such filings or such transactions, and (iii) cooperate with each other in connection with any such filing (including, to the extent permitted by applicable Law and subject to reasonable
confidentiality considerations, providing copies of all such documents to the non-filing parties prior to filing and considering all reasonable additions, deletions or changes suggested in connection therewith) and in connection with resolving any
investigation or other inquiry of any of the FTC, the Antitrust Division or other Governmental Body under any Antitrust Laws with respect to any such filing or any such transaction. Subject to applicable Law, the Parties hereto will consult and
cooperate with one another in connection with any analyses, appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any Party hereto relating to proceedings under the HSR Act or other
Antitrust Laws. Sellers and Purchaser may, as each deems advisable and necessary, reasonably designate any competitively sensitive material provided to the other under this Section 8.16 as “outside counsel only.” Such materials
and the information contained therein will be given only to the outside legal counsel of the recipient and will not be disclosed by such outside counsel to employees, officers or directors of the recipient, unless express written permission is
obtained in advance from the source of the materials (Sellers or Purchaser, as the case may be). 
 (b) Each of Purchaser and
Sellers will use its commercially reasonable efforts to resolve such objections, if any, as may be asserted by any Governmental Body with respect to the transactions contemplated by this Agreement under the HSR Act, the Sherman Act, as amended, the
Clayton Act, as amended, the Federal Trade Commission Act, as amended, and any other United States federal or state or foreign treaties, statutes, rules, regulations, orders, decrees, administrative or judicial doctrines or other Laws that are
designed to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade (collectively, the “Antitrust Laws”). In 

  
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connection therewith, if any Action is instituted (or threatened to be instituted) challenging any transaction contemplated by this Agreement is in violation of any Antitrust Law, each of
Purchaser and Sellers will cooperate and use its commercially reasonable efforts to contest and resist any such Action, and to have vacated, lifted, reversed, or overturned any decree, judgment, injunction or other order whether temporary,
preliminary or permanent (“Antitrust Order”), that is in effect and that prohibits, prevents, or restricts consummation of the transactions contemplated by this Agreement, including by pursuing all available avenues of
administrative and judicial appeal and all available legislative action, unless, by mutual agreement, Purchaser and Sellers decide that litigation is not in their respective best interests. Each of Purchaser and Sellers will use its commercially
reasonable efforts to take such action as may be required to cause the expiration of the notice or waiting periods under the HSR Act or other Antitrust Laws with respect to such transactions as promptly as possible after the execution of this
Agreement. 
 (c) Notwithstanding anything to the contrary with respect to any actions, non-actions, clearances, waivers,
consents, approvals or Permits from any Governmental Body with respect to any Antitrust Laws that are required to be obtained in connection with this Agreement, Purchaser and its Affiliates shall not be required to, and the Sellers shall not,
without the prior written consent of Purchaser (which may be withheld in Purchaser’s sole discretion), (i) enter into any hold separate order, (ii) sell, divest, lease, license, transfer, dispose of or otherwise encumber or hold
separate, before or after the Closing Date, any of their respective assets, licenses, operations, rights, businesses or interests therein (or agree to take or consent to any of the foregoing actions) or (iii) agree to any changes or
restrictions on, or other impairment of, the ability of Purchaser, the Sellers or any of their Affiliates to own or operate any of their respective assets, licenses, operations, rights, product lines, businesses or interests therein (collectively,
the “Antitrust Condition”). 
 (d) Purchaser shall be responsible for the payment of the applicable
filing fees under the HSR Act and all other Antitrust laws. 
 ARTICLE IX. 

CONDITIONS TO CLOSING 
 9.1 Conditions Precedent to the Obligations of Purchaser and Sellers. The respective obligations of each Party to this Agreement to consummate the transactions contemplated by this Agreement are
subject to the satisfaction (or to the extent permitted by Law, written waiver by each of the Sellers and Purchaser) on or prior to the Closing Date, of each of the following conditions: 

(a) there shall not be in effect any order, writ, injunction, judgment or decree entered by a Governmental Body of competent
jurisdiction, or any Law preventing, enjoining, restraining, making illegal or otherwise prohibiting the consummation of the transactions contemplated by this Agreement or the Ancillary Documents; 

(b) the Bankruptcy Court shall have entered the Bidding Procedures Order and the Sale Order (as provided in Article VII) and each
of such orders shall be a Final Order and in form and substance reasonably satisfactory to Sellers and Purchaser, which orders shall not have been reversed, modified, amended or stayed; and 

(c) any waiting period (including any extension thereof) applicable to the purchase and sale of the Purchased Assets under the HSR Act or
under any other applicable Antitrust Laws shall have expired or been terminated. 

  
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 9.2 Conditions Precedent to the Obligations of Seller. The obligations of Sellers to
consummate the transactions contemplated by this Agreement are subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may be waived in writing by Sellers in their sole discretion: 

(a) the representations and warranties made by Purchaser in this Agreement or in any Ancillary Document shall be true and correct in all
material respects (without giving effect to any materiality or similar qualification contained therein), in each case as of the Agreement Date and as of the Closing Date, with the same force and effect as though all such representations and
warranties had been made as of the Closing Date (other than representations and warranties that by their terms address matters only as of another specified date, which shall be so true and correct only as of such other specified date), except where
the failure of such representations or warranties to be so true and correct has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Purchaser’s ability to consummate the
transactions contemplated hereby; 
 (b) Purchaser shall have performed and complied in all material respects with all
obligations and agreements required by this Agreement to be performed or complied with by Purchaser on or prior to the Closing Date; and 
 (c) Purchaser shall have delivered, or caused to be delivered, to Sellers all of the items set forth in Section 3.3. 
 9.3 Conditions Precedent to the Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated by this Agreement are subject to the fulfillment, on or prior to
the Closing Date, of each of the following conditions, any of which may be waived in writing by Purchaser in its sole discretion: 
 (a) Sellers shall have delivered to Purchaser (i) a certified copy of the Sale Order (which shall contain the terms described in Section 7.3) and (ii) copies of all affidavits of
service of the Sale Motion or notice of such motion filed by or on behalf of Sellers (which service shall comply with Section 7.2(d)); 
 (b) the representations and warranties made by Sellers in this Agreement or in any Ancillary Document shall be true and correct in all material respects (provided that any such representation or warranty
that is subject to any materiality, Material Adverse Effect or similar qualification shall be true and correct in all respects after giving effect to any such qualification), in each case as of the Agreement Date and as of the Closing Date, with the
same force and effect as though all such representations and warranties had been made as of the Closing Date (other than representations and warranties that by their terms address matters only as of another specified date, which shall be so true and
correct only as of such other specified date); 
 (c) Sellers shall have performed and complied in all material respects with
all obligations and agreements required in this Agreement to be performed or complied with by them on or prior to the Closing Date; 
 (d) Sellers shall have delivered, or caused to be delivered, to Purchaser, all of the items set forth in Section 3.2; and 

(e) Sellers shall have complied with the sale process deadlines set forth in the Bidding Procedures Order. 

  
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 ARTICLE X. 
 ADDITIONAL DEFINITIONS 
 10.1 Definitions. As used herein: 

(a) “Accounts Receivable” shall have the meaning set forth in Section 1.1(c). 

(b) “Acquired Buildings” shall have the meaning set forth in Section 1.1(g). 

(c) “Acquired Owned Real Property” shall have the meaning set forth in Section 1.1(f).

 (d) “Action” means any action, claim, complaint, grievance, summons, suit, litigation, arbitration,
mediation, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation by or before any Governmental Body. 

(e) “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or
more intermediaries, controls, or is controlled by, or is under common control with, such Person, and the term “control” (including the terms “controlled by” and “under common control with”) means (i) the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by Contract or otherwise or (ii) an officer, director, or any
Person that has the power, directly or indirectly, to vote 5% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person. 

(f) “Affiliate Agreement” means any agreement or contract between any director, officer, employee or greater than
five percent (5%) stockholder of any Seller or Affiliate of any such Person, on one hand, and any Seller, on the other hand, related to the Business, including any contract providing for the employment of, furnishing of services by, rental of
real or personal property from or otherwise requiring payments to any such Person or firm, other than employment-at-will arrangements in the ordinary course of business. 
 (g) “Agreement” shall have the meaning set forth in the preamble. 
 (h) “Agreement Date” shall have the meaning set forth in the preamble. 
 (i) “Allocation” shall have the meaning set forth in Section 11.2. 
 (j) “Alternative Transaction” means (i) the approval by the Bankruptcy Court of a sale or sales of a material portion of the Purchased Assets to a Person other than Purchaser,
or (ii) the filing of a plan of reorganization that does not contemplate the sale of the Purchased Assets to Purchaser in accordance with the terms hereof. 
 (k) “Ancillary Documents” means any certificate, agreement, document or other instrument (other than this Agreement) to be executed and delivered by a Party in connection with the
consummation of the transactions contemplated this Agreement. 
 (l) “Antitrust Condition” has the
meaning set forth in Section 8.16(c). 

  
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 (m) “Antitrust Division” has the meaning set forth in
Section 8.16(a). 
 (n) “Antitrust Laws” has the meaning set forth in
Section 8.16(b). 
 (o) “Antitrust Order” has the meaning set forth in
Section 8.16(b). 
 (p) “Arbitrating Accountant” means (a) a nationally recognized
certified public accounting firm jointly selected by Purchaser and the Company that is not then engaged to perform accounting, tax or auditing services for the Company or Purchaser or (b) if the Company and Purchaser are unable to agree on an
accountant, then a nationally recognized certified public accounting firm jointly selected by the Company’s accounting firm and Purchaser’s accounting firm. 
 (q) “Assigned Contracts” shall have the meaning set forth in Section 1.1(b). 
 (r) “Assignment and Assumption Agreement” shall have the meaning set forth in Section 3.2(b). 
 (s) “Assumed Leased Real Property” shall have the meaning set forth in Section 1.1(h). 
 (t) “Assumed Liabilities” shall have the meaning set forth in Section 1.3. 
 (u) “Assumed Plans” shall have the meaning set forth in Section 6.1(e). 
 (v) “Assumption and Assignment of Leases” shall have the meaning set forth in Section 3.2(h). 
 (w) “Auction” has that meaning ascribed to such term by the Bidding Procedures Order. 
 (x) “Audited Financial Statements” shall have the meaning set forth in Section 4.17(a). 
 (y) “Avoidance Actions” shall have the meaning set forth in Section 1.1(aa). 
 (z) “Back-up Bidder” shall have the meaning set forth in Section 7.2(c). 
 (aa) “Bankruptcy Cases” shall have the meaning set forth in the Recitals. 
 (bb) “Bankruptcy Code” shall have the meaning set forth in the Recitals. 
 (cc) “Bankruptcy Court” shall have the meaning set forth in the Recitals. 
 (dd) “Bankruptcy Rules” shall have the meaning set forth in the Recitals. 
 (ee) “Benefit Plan” means (i) all “employee benefit plans” (including, without limitation, as defined in Section 3(3) of ERISA), including all
employee benefit plans which are “pension plans” (including, without limitation, as defined in Section 3(2) of ERISA) and any other employee benefit arrangements or payroll practices (including severance pay, vacation
pay, company awards, salary continuation for disability, sick leave, death benefit, hospitalization, welfare benefit, group or individual 

  
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health, dental, medical, life, insurance, fringe benefit, deferred compensation, profit sharing, retirement, retiree medical, supplemental retirement, bonus or other incentive compensation, stock
purchase, equity-based, stock option, stock appreciation rights, restricted stock and phantom stock arrangements or policies) and (ii) all other employment, termination, bonus, severance, change in control, collective bargaining or other
similar plans, programs, contracts, or arrangements (whether written or unwritten), in each case, maintained, contributed to, or required to be contributed to by any Seller or any ERISA Affiliate for the benefit of any current or former employee,
director, officer or independent contractor of any Seller or under which any Seller or any ERISA Affiliate has any liability. 

(ff) “Bid Protections” shall have the meaning set forth in Section 7.1. 

(gg) “Bidding Procedures Order” means an order substantially in the form attached hereto as Exhibit E and
otherwise in form and substance reasonably satisfactory to Seller and Purchaser. 
 (hh) “Bill of Sale”
shall have the meaning set forth in Section 3.2(a). 
 (ii) “Break-Up Fee” shall have
the meaning set forth in Section 7.1. 
 (jj) “Business” shall have the meaning set forth in
the Section 1.1. 
 (kk) “Business Day” means any day other than a Saturday, Sunday or other
day on which banks in New York City, New York are authorized or required by Law to be closed. 
 (ll) “Cash and Cash
Equivalents” means all of Seller’s cash (including petty cash and checks received prior to the close of business on the Closing Date), checking account balances, marketable securities, certificates of deposits, time deposits,
bankers’ acceptances, commercial paper, security entitlements, securities accounts, commodity Contracts, commodity accounts, government securities and any other cash equivalents, whether on hand, in transit, in banks or other financial
institutions, or otherwise held (but specifically excluding any cash payable by Purchaser to Seller pursuant to this Agreement). 
 (mm) “Cash Payment” shall have the meaning set forth in Section 2.1(a). 
 (nn) “Chapter 11 Petition” shall have the meaning set forth in the Recitals. 
 (oo) “Claim” has the meaning given that term in Section 101(5) of the Bankruptcy Code and includes, inter alia, all rights, claims, causes of action,
defenses, debts, demands, damages, offset rights, setoff rights, recoupment right, obligations, and liabilities of any kind or nature under contract, at law or in equity, known or unknown, contingent or matured, liquidated or unliquidated, and all
rights and remedies with respect thereto. 
 (pp) “Closing” shall have the meaning set forth in
Section 3.1. 
 (qq) “Closing Date” means the date on which the Closing occurs. 

(rr) “Closing Date Payment” shall have the meaning set forth in Section 2.1(b). 

(ss) “Closing Working Capital” shall have the meaning set forth in Section 2.2(a). 

  
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 (tt) “Code” means the United States Internal Revenue Code of 1986,
as the same may be amended from time to time. 
 (uu) “Company” shall have the meaning set forth in the
preamble. 
 (vv) “Company Subsidiary” shall have the meaning set forth in the preamble. 

(ww) “Competing Bid” shall have the meaning set forth in Section 7.2(b). 

(xx) “Confidentiality Agreement” means that certain Confidentiality Agreement between the Company and Purchaser
dated December 7, 2012. 
 (yy) “Contract” means any written or oral contract, purchase order,
service order, sales order, indenture, note, bond, lease, sublease, license, understanding, instrument or other agreement, arrangement or commitment that is binding upon a Person or its property, whether express or implied. 

(zz) “Cure Costs” shall have the meaning set forth in Section 1.3(b). 

(aaa) “Current Assets” shall have the meaning set forth in Section 2.2(a). 

(bbb) “Current Liabilities” shall have the meaning set forth in Section 2.2(a). 

(ccc) “Deposit” shall have the meaning set forth in Section 2.4. 

(ddd) “DIP Financing Agreements” means the Senior Secured, Super-Priority Debtor-In-Possession Credit Agreement
among Orchard Supply Hardware LLC, Orchard Supply Hardware Stores Corporation, OSH Properties LLC, certain subsidiaries of Orchard Supply Hardware LLC, lenders and issuing banks from time to time party thereto, Wells Fargo Bank, National Association
(as ABL Administrative Agent and Collateral Agent), Bank of America, N.A. (as Syndication Agent), Wells Fargo Bank, National Association (as Supplemental Term Agent), and Wells Fargo Capital Finance, LLC and Merrill Lynch, Pierce Fenner &
Smith Incorporated (as Joint Lead Arrangers and Joint Bookrunners) and post-petition debtor-in-possession financing provided by certain of the lenders party to the Sellers’ Amended and Restated Senior Secured Term Loan Agreement dated as of
December 22, 2011 with Gleacher Products Corp. (as successor in interest to JPMorgan Chase Bank, N.A.), as administrative agent and collateral agent for itself, certain Lenders and other secured parties. 

(eee) “DIP Budget” means the pro forma budget delivered to the Purchaser prior to the date hereof specifying the
Sellers’ operating budget as debtor-in-possession. 
 (fff) “DIP Order” means an order or orders
entered by the Bankruptcy Court which approve the DIP Financing Agreements on a final basis. 
 (ggg) “Dispute
Notice” means a notice delivered by the Company to Purchaser in which the Company (a) disputes the calculation of Closing Working Capital included in the Working Capital Statement and (b) provides the basis of such dispute in
reasonable detail. 
 (hhh) “Distribution Center” has the meaning set forth in Section 1.1.

  
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 (iii) “Documents” means all of Seller’s written files,
documents, instruments, papers, books, reports, records, tapes, microfilms, photographs, letters, budgets, forecasts, plans, operating records, safety and environmental plans and reports, data, Permits and Permit applications, studies and documents,
Tax Returns, ledgers, journals, title policies, customer lists, regulatory filings, operating data and plans, research material, technical documentation (design specifications, engineering information, test results, maintenance schedules, functional
requirements, operating instructions, logic manuals, processes, flow charts, etc.), user documentation (installation guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures, flyers,
pamphlets, web pages, etc.), and other similar materials, in each case whether or not in electronic form relating to the Business. 
 (jjj) “Employee” means an individual who, as of the applicable date, is employed by any Seller in connection with the Business. 

(kkk) “Employer” shall mean any of the Sellers. 

(lll) “Encumbrance” means any lien (as defined in Section 101(37) of the Bankruptcy Code), encumbrance,
claim (as defined in Section 101(5) of the Bankruptcy Code), right, demand, charge, mortgage, deed of trust, option, pledge, security interest or similar interests, title defects, hypothecations, easements, rights of way, restrictive covenants,
encroachments, rights of first refusal, preemptive rights, judgments, conditional sale or other title retention agreements and other impositions, imperfections or defects of title or restrictions on transfer or use of any nature whatsoever.

 (mmm) “Engagement Date” shall have the meaning set forth in Section 2.3(b). 

(nnn) “Environmental Law” means any foreign, federal, state or local statute, regulation, ordinance rule of
common law or agency guidance or policies relating to the protection of human health, safety, the environment, natural resources or consumer products. 
 (ooo) “Environmental Liabilities and Obligations” means all Liabilities arising from any actual or threatened impairment, impact or damage to the environment, health or safety, or
any actual or threatened failure to comply with Environmental Law in connection with the prior or ongoing ownership or operation of the Business, the Purchased Assets, or the Assumed Leased Real Property or the Acquired Owned Real Property where the
Business is currently located, including Liabilities related to: (i) the transportation, storage, use, arrangement for disposal or disposal of Hazardous Materials; (ii) the Release of Hazardous Materials, including migration onto or from
the real property where the Business is located; (iii) any other pollution or contamination of the surface, substrata, soil, air, ground water, surface water or marine environments; (iv) any other obligations imposed under Environmental
Law including all applicable Permits; (v) Orders, notices to comply, notices of violation, alleged non-compliance and inspection reports; and (vi) all obligations with respect to personal injury, property damage, wrongful death and other
damages and losses arising under applicable Law as a result of any of the matters identified in clauses (i)-(v) of this definition. 
 (ppp) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. 

(qqq) “ERISA Affiliate” means any entity which is a member of (A) a controlled group of corporations (as
defined in Section 414(b) of the Code), (B) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), (C) an affiliated service group (as defined under Section 414(m) of the Code) or
(D) any group specified in Treasury Regulations promulgated under Section 414(o) of the Code, any of which includes or included any Seller. 

  
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 (rrr) “Escrow Agent” means a third-party entity approved by the
parties hereto, which entity will have fiduciary obligations with respect to the transfer of funds related to this Agreement and whose actions will be governed by an escrow agreement approved by the parties hereto. 

(sss) “Estimated Working Capital” shall have the meaning set forth in Section 2.2(a). 

(ttt) “Estimated Working Capital Statement” shall have the meaning set forth in Section 2.2(a).

 (uuu) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(vvv) “Excluded Assets” shall have the meaning set forth in Section 1.2. 

(www) “Excluded Liabilities” shall have the meaning set forth in Section 1.4. 

(xxx) “Expense Reimbursement” shall mean the reasonable out-of-pocket fees, costs and expenses of
the Purchaser, subject to a cap of $850,000. 
 (yyy) “Final Order” means an order or judgment of the
Bankruptcy Court or any other court of competent jurisdiction entered by the Clerk of the Bankruptcy Court or such other court on the docket in Seller’ Bankruptcy Cases or the docket of such other court, which has not been modified, amended,
reversed, vacated or stayed and as to which (a) the time to appeal, petition for certiorari, or move for a new trial, reargument or rehearing has expired and as to which no appeal, petition for certiorari or motion for new trial,
reargument or rehearing shall then be pending or (b) if an appeal, writ of certiorari new trial, reargument or rehearing thereof has been sought, such order or judgment of the Bankruptcy Court or other court of competent jurisdiction
shall have been affirmed by the highest court to which such order was appealed, or certiorari shall have been denied, or a new trial, reargument or rehearing shall have been denied or resulted in no modification of such order, and the time to
take any further appeal, petition for certiorari or move for a new trial, reargument or rehearing shall have expired, as a result of which such order shall have become final in accordance with Rule 8002 of the Federal Rules of Bankruptcy
Procedure; provided, that the possibility that a motion under Rule 60 of the Federal Rules of Civil Procedure, or any analogous rule under the Bankruptcy Rules, may be filed relating to such order, shall not cause such order not to be a Final Order.

 (zzz) “Final Working Capital” shall have the meaning set forth in Section 2.3(a).

 (aaaa) “Financial Statements” shall have the meaning set forth in Section 4.17(a).

 (bbbb) “FIRPTA Certificate” shall have the meaning set forth in Section 11.4. 

(cccc) “FTC” has the meaning set forth in Section 8.16(a). 

(dddd) “Furnished Reports” has the meaning set forth in Section 4.17(b). 

(eeee) “GAAP” means United States generally accepted accounting principles as in effect from time to time.

  
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 (ffff) “GOB Sales” shall have the meaning set forth in
Section 1.2(k). 
 (gggg) “Governmental Body” means any government, quasi governmental
entity, or other governmental or regulatory body, agency or political subdivision thereof of any nature, whether foreign, federal, state or local, or any agency, branch, department, official, entity, instrumentality or authority thereof, or any
court or arbitrator (public or private) of applicable jurisdiction. 
 (hhhh) “Ground Lease”
shall have the meaning set forth in Section 4.6(a). 
 (iiii) “Hazardous Material” means
any substance, material or waste which is regulated by any Governmental Body, including petroleum and its by-products, asbestos, and any material or substance which is defined or identified as a “hazardous waste,” “hazardous
substance,” “hazardous material,” “restricted hazardous waste,” “industrial waste,” “solid waste,” “contaminant,” “pollutant,” “toxic waste” or “toxic substance” or
otherwise regulated under or the subject of any provision of Environmental Law. 
 (jjjj) “HSR Act”
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations promulgated thereunder. 

(kkkk) “Indebtedness” of any Person means, without duplication, (i) the interest in respect of, principal of
and premium (if any) in respect of (x) indebtedness of such Person for money borrowed and (y) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable;
(ii) all obligations of such Person with respect to any Contracts relating to the deferred and unpaid purchase price of property or services, including any interest accrued thereon and prepayment or similar penalties and expenses;
(iii) all obligations of such Person under leases required to be capitalized in accordance with GAAP; (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar
credit transaction; (v) all obligations of the type referred to in clauses (i) through (iv) of any Persons for the payment of which such Person is responsible or liable, directly or indirectly, as obligor, guarantor, surety or
otherwise, including guarantees of such obligations; and (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons secured by any Encumbrance (other than Permitted Encumbrances), on any property or asset
of such Person (whether or not such obligation is assumed by such Person). 
 (llll) “Intellectual
Property” means all intellectual property and proprietary rights of any kind, including the following: (i) trademarks, service marks, trade names, slogans, logos, designs, symbols, trade dress, internet domain names, uniform
resource identifiers, rights in design, brand names, any fictitious names, d/b/a’s or similar filings related thereto, or any variant of any of them, and other similar designations of source or origin, together with all goodwill, registrations
and applications related to the foregoing; (ii) copyrights and copyrightable subject matter (including any registration and applications for any of the foregoing); (iii) trade secrets and other confidential or proprietary business
information (including manufacturing and production processes and techniques, research and development information, technology, intangibles, drawings, specifications, designs, plans, proposals, technical data, financial, marketing and business data,
pricing and cost information, business and marketing plans, customer and supplier lists and information), know how, proprietary processes, formulae, algorithms, models, industrial property rights, and methodologies; (iv) computer software,
computer programs, and databases (whether in source code, object code or other form); and (v) all rights to sue for past, present and future infringement, misappropriation, dilution or other violation of any of the foregoing and all remedies at
law or equity associated therewith. 

  
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 (mmmm) “Inventory” means all inventory (including finished goods,
supplies, raw materials, work in progress, spare, replacement and component parts) related to the Business maintained or held by, stored by or on behalf of, or in transit to, any of the Sellers. 

(nnnn) “IP Assignment and Assumption Agreement” shall have the meaning set forth in Section 3.2(i).

 (oooo) “IRS” shall have the meaning set forth in Section 4.14(c). 

(pppp) “Knowledge” or (“Knowledge of Seller” or “Seller
Knowledge”) means the actual knowledge of a natural person, or, with respect to a Person that is not a natural person, the actual knowledge of the officers or management of any person, in each case, including facts of which any such
individual should be aware in the reasonably prudent exercise of his or her duties. 
 (qqqq) “Law”
means any federal, state, local, municipal, foreign or international, multinational or other law, statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted,
adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Body, including but not limited to Environmental Laws. 
 (rrrr) “Lease” shall have the meaning set forth in Section 4.6(a). 
 (ssss) “Leased Real Property” means all of the real property leased, subleased, used or occupied by any of the Sellers, together with all buildings, structures, fixtures and
improvements erected thereon, and any and all rights privileges, easements, licenses, hereditaments and other appurtenances relating thereto, and used, or held for use, in connection with the operation of the Business. 

(tttt) “Liability” means, as to any Person, any debt, adverse claim, liability (including any liability that
results from, relates to or arises out of tort or any other product liability claim), duty, responsibility, obligation, commitment, assessment, cost, expense, loss, expenditure, charge, fee, penalty, fine, contribution or premium of any kind or
nature whatsoever, whether known or unknown, asserted or unasserted, absolute or contingent, direct or indirect, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and regardless of when sustained, incurred or asserted or
when the relevant events occurred or circumstances existed. 
 (uuuu) “Material Adverse Effect” means
any event, change, occurrence or state of facts that has had, or is reasonably likely to have, individually or in the aggregate, a material adverse effect on the (i) assets, Liabilities, Business, properties, financial condition or results of
operations of the Sellers, taken as a whole, provided, however, that in no event shall any of the following, alone or in combination, be deemed to constitute, or be taken into account, in determining whether there has been, or
would be, a Material Adverse Effect: (a) changes in the U.S. economy or capital markets in general but that do not have a disproportionate effect on the Sellers relative to other participants in the industry in which the Sellers conduct the
Business, (b) changes that affect generally the industry in which the Sellers operate but that do not have a disproportionate effect on the Sellers relative to other participants in the industry in which the Sellers conduct the Business,
(c) changes after the Agreement Date in any applicable Law or GAAP, (d) the commencement of the Bankruptcy Cases and Sellers’ inability to pay certain obligations as a result of the filing of the Bankruptcy Cases, (e) any actions
taken or proposed to be taken by Purchaser or any of its Affiliates, or (f) any effect resulting the public announcement of this Agreement, compliance with terms of this Agreement or the consummation of the transactions contemplated by this
Agreement. 

  
 50 

 (vvvv) “Order” means any award, writ, injunction, judgment, order,
ruling, decision, subpoena, mandate, precept, command, directive, consent, approval, award, decree or similar determination or finding entered, issued, made or rendered by any Governmental Body. 

(wwww) “Ordinary Course of Business” means the ordinary and usual course of normal day to day operations of the
Business consistent with past practice. 
 (xxxx) “Organizational Documents” means, with respect to a
particular entity Person, (i) if a corporation, the articles or certificate of incorporation and bylaws, (ii) if a general partnership, the partnership agreement and any statement of partnership, (iii) if a limited partnership, the
limited partnership agreement and certificate of limited partnership, (iv) if a limited liability company, the articles or certificate of organization or formation and any limited liability company or operating agreement, (v) if another
type of Person, all other charter and similar documents adopted or filed in connection with the creation, formation or organization of the Person, and (vi) all amendments or supplements to any of the foregoing. 

(yyyy) “Outside Back-up Date” shall have the meaning set forth in Section 7.2(c). 

(zzzz) “Outside Date” shall have the meaning set forth in Section 3.4(b). 

(aaaaa) “Overbid Protection” shall have the meaning set forth in Section 7.1. 

(bbbbb) “Owned Buildings” shall have the meaning set forth in Section 4.6(b). 

(ccccc) “Owned Real Property” shall have the meaning set forth in Section 4.6(b). 

(ddddd) “Party” shall have the meaning set forth in the preamble. 

(eeeee) “Pension Plan” shall have the meaning set forth in Section 4.14(e). 

(fffff) “Permits” means to the fullest extent permitted under applicable law, all notifications, licenses,
permits (including environmental, construction and operation permits), franchises, certificates, approvals, consents, waivers, clearances, exemptions, classifications, registrations, variances, orders, tariffs, rate schedules and other similar
documents and authorizations issued by any Governmental Body to any of the Sellers and used, or held for use, in connection with the operation of the Business or applicable to ownership of the Purchased Assets or assumption of the Assumed
Liabilities. 
 (ggggg) “Permitted Encumbrances” means (i) Encumbrances for utilities and current
Taxes not yet due and payable or being contested in good faith; (ii) easements, rights of way, restrictive covenants, encroachments and similar non-monetary encumbrances or non-monetary impediments against any of the Purchased Assets which do
not, individually or in the aggregate, adversely affect the operation of the Business and, in the case of the Owned Real Property and Leased Real Property, which do not, individually or in the aggregate, adversely affect the use or occupancy of such
Owned Real Property or Leased Real Property as it relates to the operation of the Business or materially detract from the value of the Owned Real Property or Leased Real Property, (iii) applicable zoning Laws, building codes, land use
restrictions and other similar restrictions imposed by Law, (iv) materialmans’, mechanics’, artisans’, shippers’, warehousemans’ or other similar common law or statutory liens incurred in the Ordinary Course of
Business, (v) licenses granted on a non-exclusive basis , (vi) Encumbrances arising from the transfer of Intellectual Property pursuant to this Agreement relating to the past acts or prior commitments of Seller and all previous owners of
such Intellectual Property and 

  
 51 

 
(vii) such other Encumbrances or title exceptions as Purchaser may approve in writing in its sole discretion or which do not, individually or in the aggregate, materially and adversely affect the
operation of the Business. 
 (hhhhh) “Person” means an individual, corporation, partnership, limited
liability company, joint venture, association, trust, unincorporated organization, labor union, estate, Governmental Body or other entity or group. 
 (iiiii) “Personal Property Leases” shall have the meaning set forth in Section 4.7. 
 (jjjjj) “Petition Date” means the date on which the Sellers commenced the Bankruptcy Cases. 
 (kkkkk) “Post-Closing Plans” shall have the meaning set forth in Section 6.1(b). 
 (lllll) “Post-Closing Tax Period” means any taxable period (or portion thereof) beginning after the Closing Date. 

(mmmmm) “Pre-Closing Period” means the period commencing on the Agreement Date and ending on the earlier of the
date upon which this Agreement is terminated pursuant to Section 3.4 or the Closing Date. 
 (nnnnn)
“Pre-Closing Tax Period” means any taxable period (or portion thereof) ending on or before the Closing Date. 
 (ooooo) “Prevailing Bidder” shall have the meaning set forth in Section 7.2(c). 
 (ppppp) “Previously Omitted Contract” shall have the meaning set forth in Section 1.6(b)(i). 

(qqqqq) “Previously Omitted Contract Designation” shall have the meaning set forth in
Section 1.6(b)(i). 
 (rrrrr) “Previously Omitted Contract Notice” shall have the meaning
set forth in Section 1.6(b)(ii). 
 (sssss) “Purchase Price” shall have the meaning set
forth in Section 2.1(a). 
 (ttttt) “Purchased Assets” shall have the meaning set forth in
Section 1.1. 
 (uuuuu) “Purchased Intellectual Property” shall have the meaning set forth
in Section 4.8. 
 (vvvvv) “Purchaser” shall have the meaning set forth in the preamble.

 (wwwww) “Purchaser Designee” shall have the meaning set forth in the preamble. 

(xxxxx) “Regulatory Approvals” means any consents, waivers, approvals, orders Permits or authorizations of any
Governmental Body required in connection with the execution, delivery and performance of this Agreement of any Ancillary Document and the consummation of the transactions contemplated hereby and thereby. 

  
 52 

 (yyyyy) “Release” means any actual or threatened release, spill,
emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal or leaching into the indoor or outdoor environment, or including migration to or from a property, including but not limited to any Owned Real Property or Leased Real
Property. 
 (zzzzz) “Remedial Action” means all actions to (i) investigate, clean up, remove,
treat or in any other way address any Hazardous Material; (ii) prevent the Release of any Hazardous Material; (iii) perform pre-remedial studies and investigations or post-remedial monitoring and care; or (iv) to correct a condition
of noncompliance with Environmental Laws. 
 (aaaaaa) “Rejected Contracts” shall have the meaning set
forth in Section 1.6(a)(i). 
 (bbbbbb) “Representatives” shall have the meaning set forth
in Section 8.2. 
 (cccccc) “Sale and Bidding Procedures Motion” shall have the meaning set
forth in Section 7.2(a). 
 (dddddd) “Sale Hearing” means the hearing to approve this
Agreement and seeking entry of the Sale Order. 
 (eeeeee) “Sale Motion” means the motion or motions of
Seller, in form and substance reasonably acceptable to Seller and Purchaser, seeking approval and entry of the Bidding Procedures Order and Sale Order. 
 (ffffff) “Sale Order” means an order substantially in the form attached hereto as Exhibit F and otherwise in form and substance reasonably satisfactory to Seller and
Purchaser. 
 (gggggg) “SEC Documents” has the meaning set forth in Section 4.17(b).

 (hhhhhh) “Securities Act” means the Securities Act of 1933, as amended. 

(iiiiii) “Sellers” shall have the meaning set forth in the preamble. 

(jjjjjj) “Specified Prepaid Expenses” shall have the meaning set forth in Section 2.2(a). 

(kkkkkk) “Stores” has the meaning set forth in Section 1.1. 

(llllll) “Straddle Period” shall have the meaning set forth in Section 11.1(b). 

(mmmmmm) “Subsidiary” or “Subsidiaries” means, with respect to any Person, any
corporation, limited liability company, joint venture or partnership of which such Person (a) beneficially owns, either directly or indirectly, more than fifty percent (50%) of (i) the total combined voting power of all classes of
voting securities of such entity, (ii) the total combined equity interests, or (iii) the capital or profit interests, in the case of a partnership; or (b) otherwise has the power to vote or to direct the voting of sufficient
securities to elect a majority of the board of directors or similar governing body. 

  
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 (nnnnnn) “Tax” and “Taxes” mean (a) any
and all taxes, including any federal, state, provincial, local, foreign or other income, gross receipts, sales, value added, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding,
payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, capital, production, recapture, net worth, surplus, customs, duties,
levies, surtaxes or other taxes, fees, assessments, reassessments or charges of any kind whatsoever, together with any interest, additions, installments or penalties with respect thereto and any interest in respect of such additions or penalties,
(b) any Liability for the payment of any items described in clause (a) above as a result of being (or ceasing to be) a member of an affiliated, consolidated, combined, unitary or aggregate group (or being included (or being required to be
included)) in any Tax Return related to such group (including any Liability pursuant to Section 1.1502-6 of the Treasury Regulations, or any similar provision of state, local or non-U.S. law), and (c) any Liability for the payment of any
amounts as a result of any express or implied obligation to indemnify any other Person, or any successor or transferee liability, by contract or otherwise in respect of any items described in clause (a) or (b) above. 

(oooooo) “Tax Proceeding” means any action, suit, investigation, audit, Claim, investigation, or other action or
proceeding with respect to Taxes. 
 (pppppp) “Tax Refunds” shall have the meaning set forth in
Section 1.1(u). 
 (qqqqqq) “Tax Return” means any return, report, information return,
declaration, claim for refund or other document (including any schedule or related or supporting information) supplied or required to be supplied to any Governmental Body with respect to Taxes, including amendments thereto. 

(rrrrrr) “Term Lenders” shall have the meaning set forth in Section 3.2(s). 

(ssssss) “Transferred Employee” shall have the meaning set forth in Section 6.1(a). 

(tttttt) “Treasury Regulations” means the regulations promulgated under the Code by the United States Department
of the Treasury (whether in final, proposed or temporary form), as the same may be amended from time to time. 
 (uuuuuu)
“Unaudited Financial Statements” shall have the meaning set forth in Section 4.17(a). 

(vvvvvv) “WARN Act” means the United States Worker Adjustment and Retraining Notification Act, and the rules and
regulations promulgated thereunder. 
 (wwwwww) “Working Capital Statement” shall have the meaning set
forth in Section 2.2(b). 

  
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 ARTICLE XI. 
 TAXES 
 11.1 Certain Taxes. 

(a) Except as provided in Section 1.3(h), any sales, use, purchase, transfer, franchise, deed, fixed asset, stamp,
documentary stamp, use or other Taxes and recording charges which may be payable by reason of the sale of the Purchased Assets or the assumption of the Assumed Liabilities under this Agreement or the transactions contemplated hereby, and that are
not exempt under Section 1146(a) of the Bankruptcy Code, shall be borne and timely paid by the Sellers. The Sellers shall, at their own expense, timely file any Tax Return or other document required to be filed with respect to such Taxes, and
Purchaser shall join in the execution of any such Tax Return if required by Law. 
 (b) In the case of any taxable period that
begins before, and ends after, the Closing Date (a “Straddle Period”), any real property, personal property, ad valorem and similar Taxes allocable to the portion of such Straddle Period ending with the end of the day on the
Closing Date shall be equal to the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of days during the Straddle Period that is in the Pre-Closing Tax Period and the denominator of
which is the number of days in the entire Straddle Period, which amount shall be an Excluded Liability. 
 11.2 Allocation of
Purchase Price. As soon as reasonably practicable after the Closing Date, the Purchaser shall determine the allocation of (a) the Purchase Price, plus (b) the Assumed Liabilities, plus (c) all other items required to be treated as
consideration for federal income Tax purposes, among the Purchased Assets and the agreements provided for herein, for all purposes (including financial, accounting and Tax) (the “Allocation”). The Purchaser and the Sellers
shall each report the federal, state and local income and other Tax consequences of the transactions contemplated hereby in a manner consistent with the Allocation, including, if applicable, the preparation and filing of Forms 8594 under
Section 1060 of the Code (or any successor form or successor provision of any future Tax Law) with their respective federal income Tax Returns for the taxable year which includes the Closing Date, and neither will take any position inconsistent
with the Allocation unless otherwise required under applicable Law. The Sellers shall provide the Purchaser and the Purchaser shall provide Seller with a copy of any information required to be furnished to the Secretary of the Treasury under Code
Section 1060. 
 11.3 Cooperation on Tax Matters. The Purchaser and the Sellers agree to provide each other with
such information and assistance as is reasonably necessary, including access to records, Tax Returns and personnel, for the preparation of any Tax Returns or for the defense of any Tax claim or assessment, whether in connection with a Tax Proceeding
or otherwise. 
 11.4 FIRPTA Certificate. The Sellers shall deliver to the Purchaser on the date hereof a properly
executed affidavit of non-foreign status, reasonably satisfactory to Purchaser, that complies with Section 1445 of the Code and Section 1.1445-2(b)(2) of the Treasury Regulations (the “FIRPTA Certificate”). If the
Purchaser does not so receive a properly executed FIRPTA Certificate from the Sellers, then the Purchaser shall be permitted to withhold from any payment to be made (or deemed to be made) pursuant to this Agreement to the Sellers any required
withholding Tax under Section 1445 of the Code as determined by the Purchaser. Any amounts withheld shall be treated for all purposes of this Agreement as having been paid to the Sellers in respect of which such withholding was made.

 11.5 Tax Refunds. The Sellers agree to cooperate with the Purchaser in all respects, and take or cause to be taken any
steps necessary, in order to apply for and obtain any Tax Refunds with respect to any Seller for any taxable year, provided that the Purchaser pays all reasonable expenses incurred in connection therewith. 

  
 55 

 ARTICLE XII. 
 MISCELLANEOUS 
 12.1 Payment of Expenses. Except as otherwise provided in
this Agreement (including, but not limited to Section 3.5 and Section 7.1) and whether or not the transactions contemplated hereby are consummated, Sellers and the Purchaser shall bear their own expenses incurred or to be
incurred in connection with the negotiation and execution of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated hereby and thereby. 

12.2 Survival of Representations and Warranties; Survival of Confidentiality. The Parties agree that the representations and
warranties contained in this Agreement shall expire upon the Closing Date. The Parties agree that the covenants contained in this Agreement to be performed at or after the Closing shall survive in accordance with the terms of the particular covenant
or until fully performed. 
 12.3 Entire Agreement; Amendments and Waivers. This Agreement, together with the
Confidentiality Agreement and the Ancillary Documents, represents the entire understanding and agreement between the Parties with respect to the subject matter hereof. This Agreement may be amended, supplemented or changed, and any provision hereof
may be waived, only by written instrument making specific reference to this Agreement signed by the Party against whom enforcement of any such amendment, supplement, modification or waiver is sought; provided, that the Schedules hereto may be
amended in accordance with Section 1.6. No action taken pursuant to this Agreement, including any investigation by or on behalf of any Party shall be deemed to constitute a waiver by the Party taking such action of compliance with any
representation, warranty, condition, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of
any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or
remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by applicable Law. 

12.4 Execution of Agreement; Counterparts; Electronic Signatures. 

(a) This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute
one and the same instrument, and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Parties; it being understood that all Parties need not sign the same counterparts. 

(b) The exchange of copies of this Agreement and of signature pages by facsimile transmission (whether directly from one facsimile device
to another by means of a dial-up connection or whether mediated by the worldwide web), by electronic mail in “portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the
original graphic and pictorial appearance of a document, or by combination of such means, shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.
Signatures of the Parties transmitted by facsimile shall be deemed to be their original signatures for all purposes. 
 12.5
Governing Law. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH FEDERAL BANKRUPTCY LAW, TO THE EXTENT APPLICABLE, AND 

  
 56 

 
WHERE STATE LAW IS IMPLICATED, THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF (EXCEPT FOR ANY LAWS OF THAT STATE WHICH WOULD RENDER
SUCH CHOICE OF LAWS INEFFECTIVE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 
 12.6 Jurisdiction,
Waiver of Jury Trial. 
 (a) THE BANKRUPTCY COURT WILL HAVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE
PARTIES, WHETHER AT LAW OR IN EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY; PROVIDED, HOWEVER, THAT IF THE BANKRUPTCY COURT IS UNWILLING OR UNABLE TO HEAR ANY SUCH DISPUTE, THE COURTS OF THE
STATE OF NEW YORK AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN MANHATTAN, NEW YORK, NEW YORK WILL HAVE SOLE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES, WHETHER AT LAW OR IN EQUITY, ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY. 
 (b) EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 12.7 Notices. Unless otherwise set forth herein, any notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a
Party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid), or (b) sent by facsimile or e-mail, in each case, if sent during the normal business hours of the recipient,
with confirmation of transmission by the transmitting equipment confirmed with a copy delivered as provided in clause (a), in the case of each of clauses (a) and (b), to the following addresses, facsimile numbers or e-mail addresses and marked
to the attention of the person (by name or title) designated below (or to such other address, facsimile number, e-mail address or person as a Party may designate by notice to the other Parties): 

If to Seller, to: 
 Orchard Supply Hardware 
 Address: 6450 Via Del Oro 

San Jose, CA 95119 
 Fax no.: (408) 365-2799 
 Attention: Michael Fox 

Senior Vice President, General Counsel and Secretary 
 E-mail address: michael.fox@osh.com 
 With a copy (which shall not constitute
effective notice) to: 
 DLA Piper LLP (US) 
 203 North LaSalle Street, Suite 1900 
 Chicago, Illinois 60601 

Fax no.: (312) 236-7516 
 Attention:    Richard Chesley 

                    Chun Jang

 E-mail address:    Richard.Chesley@dlapiper.com 

                       
      Chun.Jan@dlapiper.com 

  
 57 

 If to Purchaser, to: 

Orchard Supply Company, LLC 
 c/o Lowe’s Companies, Inc. 
 1000 Lowe’s Boulevard 

Mooresville, NC 28117 
 Attention: Business Development Executive 
 Mail Code: NB7BD 

Fax no.: 704-757-0805 
 E-mail Address: Richard.d.maltsbarger@lowes.com 
 and 

Lowe’s Companies, Inc. 
 1000 Lowe’s Boulevard 
 Mooresville, NC 28117 

Attention: Chief Legal Officer, Secretary and Chief Compliance Officer 

Mail Code: NB7LG 
 Fax no.: 704-757-0675 
 E-mail
Address: gaither.m.keener@lowes.com 
 With a copy (which shall not constitute effective notice) to: 

Hunton & Williams LLP 
 2200 Pennsylvania Ave., NW 
 Washington, DC 20037 

Fax no.: (202) 778-2201 
 Attention:    J. Steven Patterson 

                    Scott H. Kimpel

 E-mail address:    spatterson@hunton.com 

                       
      skimpel@hunton.com 
 12.8 Binding Effect; Assignment. This Agreement shall be binding
upon Purchaser and, subject to entry of the Bidding Procedures Order (with respect to the matters covered thereby) and the Sale Order, Seller, and inure to the benefit of the Parties and their respective successors and permitted assigns, including
any trustee or estate representative appointed in the Bankruptcy Cases or any successor Chapter 7 case. Nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any Person or entity not a party to this
Agreement except as provided below. No assignment of this Agreement or of any rights or obligations hereunder may be made by Seller or Purchaser (by operation of law or otherwise) without the prior written consent of the other Parties and any
attempted assignment without such required consents shall be void. 
 12.9 Severability. Whenever possible, each
provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or
unenforceable 

  
 58 

 
in any respect under any applicable Law in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction
and in lieu of such invalid, illegal or unenforceable provision or portion of any provision, there will be added automatically as a part of this Agreement a valid legal and enforceable provision as similar in terms to such invalid, illegal or
unenforceable provision as may be possible. 
 12.10 Bulk Sales Laws. Each Party hereby waives compliance by the Parties
with the “bulk sales,” “bulk transfers” or similar Laws and all other similar Laws in all applicable jurisdictions in respect of the transactions contemplated by this Agreement or any Ancillary
Document. 
 12.11 Access and Right to Use. Purchaser shall, upon reasonable advance notice, afford to Sellers’
officers, independent public accountants, attorneys, consultants and other representatives, reasonable access during normal business hours to the Purchased Assets and all records pertaining to the Purchased Assets on a royalty-free basis solely for
the purpose of enabling the Sellers to conduct an orderly wind-down of the Sellers’ operations until such time as the wind-down is completed on or before the one-year anniversary of this Agreement. Sellers expressly acknowledge that nothing in
this Section is intended to give rise to any contingency to Sellers’ obligations to proceed with the transactions contemplated herein. 
 [Remainder of page intentionally left blank] 

  
 59 

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

					
	ORCHARD SUPPLY HARDWARE STORES CORPORATION
		
	By:	 	 /s/ Michael W. Fox

		 	Name:	 	Michael W. Fox
		 	Title:	 	Senior Vice President, General Counsel and Secretary
	
	ORCHARD SUPPLY HARDWARE LLC
		
	By:	 	 /s/ Michael W. Fox

		 	Name:	 	Michael W. Fox
		 	Title:	 	Senior Vice President, General Counsel and Secretary
	
	OSH PROPERTIES LLC
		
	By:	 	 /s/ Michael W. Fox

		 	Name:	 	Michael W. Fox
		 	Title:	 	Senior Vice President, General Counsel and Secretary
	
	ORCHARD SUPPLY COMPANY, LLC
		
	By:	 	 /s/ Richard D. Maltsbarger

		 	Name:	 	Richard D. Maltsbarger
		 	Title:	 	Manager

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