Document:

Amendment No. 3 to Amended and Restated Loan and Security Agreement

 Exhibit 10.1(D) 
 AMENDMENT NO. 3 TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 AMENDMENT NO. 3 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Amendment No. 3”), dated as of May 15, 2006, by and among J.
Crew Operating Corp., a Delaware corporation (“Operating”), J. Crew Inc., a New Jersey corporation (“J. Crew”), Grace Holmes, Inc., a Delaware corporation doing business as J. Crew Retail (“Retail”), H.F.D. No. 55,
Inc., a Delaware corporation doing business as J. Crew Factory (“Factory”, and together with J. Crew, Retail and Operating, each individually a “Borrower” and collectively, “Borrowers”), J. Crew Group, Inc., a Delaware
corporation (“Parent”), Madewell Inc., a Delaware corporation (“Madewell”) and J. Crew International, Inc., a Delaware Corporation, (“JCI”, and together with Parent and Madewell, each individually a
“Guarantor” and collectively, “Guarantors”), the parties from time to time to the Loan Agreement (as hereinafter defined) as lenders (each individually, a “Lender” and collectively, “Lenders”) and Wachovia
Bank, National Association, successor by merger to Congress Financial Corporation, a national banking association, in its capacity as administrative agent and collateral agent for Lenders pursuant to the Loan Agreement (in such capacity,
“Agent”). 
 WITNESSETH: 
 WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered into financing arrangements pursuant to which Agent and Lenders have made and may make loans and advances and provide other financial accommodations to
Borrowers as set forth in the Amended and Restated Loan and Security Agreement, dated December 23, 2004, by and among Agent, Lenders, Borrowers and Guarantors, as amended by Consent to Amended and Restated Loan and Security Agreement dated as
of May 11, 2006, Amendment No. 1 to Amended and Restated Loan and Security Agreement dated as of October 10, 2005 and Amendment No. 2 to Amended and Restated Loan and Security Agreement dated as of May 15, 2006 (as the same
is amended and supplemented hereby and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”) and the agreements, documents and instruments at any time executed and/or
delivered in connection therewith or related thereto (collectively, together with the Loan Agreement, the “Financing Agreements”); 
 WHEREAS, Operating intends to obtain term loans under the Term Loan Credit Facility (as hereinafter defined) in the original principal amount of $285,000,000, which may be increased to $385,000,000 at Operating’s option in certain
circumstances; 
 WHEREAS, Parent intends to redeem all of the remaining balance of the Senior Discount Debentures held by third parties in
the aggregate principal amount not to exceed $22,000,000, using funds available to Parent for such purpose to the extent not prohibited under the Financing Agreements and to cancel the remaining balance of the Senior Discount Debentures held by
Parent in the aggregate principal amount not to exceed $121,000,000; 
 WHEREAS, Operating intends to repurchase all or a portion of the
9 3/4% Notes (as hereinafter defined) issued by Operating pursuant to a tender offer and consent solicitation by
Operating and thereafter to redeem any 9 3/4% Notes that remain outstanding; 

 WHEREAS, in connection with the transactions described above, Borrowers and Guarantors have requested
that Agent and Lenders consent thereto and agree to certain amendments to the Financing Agreements; and 
 WHEREAS, Agent and Lenders are
willing to provide such consents and agree to such amendments to the extent, and subject to, the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows: 
 Section 1. Definitions. 
 1.1 Additional Definitions. As used herein, the following terms shall have the respective meanings given to them below and the Loan Agreement shall be deemed and is hereby amended to include, in addition and
not in limitation of, each of the following definitions: 
 (a) “Amendment No. 3” shall mean Amendment No. 3 to Amended
and Restated Loan and Security Agreement, dated as of May 15, 2006, by and among Agent, Lenders, Borrowers and Guarantors, as the same now exists and may hereafter be further amended, modified, supplemented, extended, renewed, restated or
replaced. 
 (b) “Black Canyon Supplemental Indentures” shall mean, collectively, (i) the First Supplemental Indenture, dated
as of October 17, 2005, by and among, among Operating, as issuer, the Black Canyon Guarantors and Noteholder Collateral Agent in its capacity as trustee thereunder and (ii) the Second Supplemental Indenture, dated as October 17, 2005,
by and among Operating, as issuer, the Black Canyon Guarantors and Noteholder Collateral Agent in its capacity as trustee thereunder. 
 (c)
“Net Cash Proceeds” shall mean the aggregate cash proceeds payable to any Borrower or Guarantor as proceeds of any loans or other financial accommodations provided to any Borrower or Guarantor or as proceeds from the issuance and/or sale
of any Capital Stock, in each case net of the reasonable and customary direct costs relating to such loans or other financial accommodation or issuance and/or sale (including, without limitation, legal, accounting and investment banking fees, and
sales commissions) and taxes paid or payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements). Net Cash Proceeds shall exclude any non-cash proceeds received from any issuance
and/or sale or other transaction, but shall include such proceeds when and as converted by any Borrower or Guarantor to cash or other immediately available funds. 
 (d) “9 3/4% Note Redemption Date” shall mean the date on which all
remaining 9 3/4% Notes have been redeemed and cancelled, but in no event after June 30, 2006.

  

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 (e) “9 3/4% Note Redemption Documents” shall mean, collectively, the notices of redemption to be delivered in connection with the redemption of the 9 3/4% Notes and all other agreements, documents and instruments related thereto, as the same now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced. 
 (f) “5.0% Note Credit Agreement” shall mean the Amended and Restated
Credit Agreement, dated as of May 15, 2006, by and among TPG-MD, as lender, Operating, as borrower, and J. Crew, Retail, Factory and JCI, as guarantors, and Parent, as the same now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced. 
 (g) “Revolving Loan Priority Collateral” shall have the meaning set forth on Schedule A
to Amendment No. 3. 
 (h) “Senior Discount Debenture Notice Date” shall mean the date on which Parent delivers a notice of
redemption relating to the outstanding Senior Discount Debentures held by Persons other than Parent, but in no event after May 31, 2006. 
 (i) “Senior Discount Debenture Redemption Date” shall mean the date on which all the Senior Discount Debentures have been redeemed and cancelled, but in no event after July 31, 2006. 
 (j) “Senior Discount Debenture Redemption Documents” shall mean, collectively, the notices of redemption to be delivered in connection with the
redemption of the Senior Discount Debentures and all other agreements, documents and instruments related thereto, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 (k) “Term Loan Agent” shall mean Goldman Sachs Credit Partners, L.P., a limited partnership registered in Bermuda, and any successor or
replacement administrative agent under the Term Loan Documents. 
 (l) “Term Loan Agreement” shall mean the Credit Agreement, dated
on or about the Term Loan Closing Date, between Operating, as borrower, the Term Loan Guarantors, the lenders named therein and Term Loan Agent, as administrative agent, as the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced. 
 (m) “Term Loan Closing Date” shall mean the date on which the Term Loan Agreement has
been executed and delivered by the parties thereto and is in full force and effect, but in no event after May 31, 2006. 
 (n)
“Term Loan Collateral Account” shall mean the investment account which is a restricted account maintained by Operating with Term Loan Agent, an affiliate of Term Loan Agent or at a financial institution otherwise designated by Term Loan
Agent into which Parent or Operating shall have deposited (i) proceeds of the Term Loan Credit Facility in an amount not less than the amount necessary to prepay or redeem any 9 3/4% Notes that shall remain 
  

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 outstanding immediately following the Term Loan Closing Date and (ii) such other amounts to be utilized for such
purposes as expressly permitted under this Agreement; and which investment account is established and used solely for the purpose of holding such proceeds and such other amounts and at all times shall be subject to the first priority perfected
security interest of Term Loan Agent. 
 (o) “Term Loan Credit Facility” shall mean the financing arrangements provided to
Operating under the Term Loan Documents. 
 (p) “Term Loan Documents” shall mean, collectively the following (as the same may now
or hereafter exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced): (i) the Term Loan Agreement (including any loan notes and loan guarantees issued thereunder), (ii) the Term Loan Security
Agreement, (iii) the Term Loan Intercreditor Agreement, and (iv) all other agreements, documents and instruments now existing or at any time hereafter executed and/or delivered by Operating, any Term Loan Guarantor or any other person in
connection therewith; sometimes being referred to herein individually as a “Term Loan Document”. 
 (q) “Term Loan Funding
Date” shall mean the date of the initial funding of the term loans under the Term Loan Agreement, but in no event after May 31, 2006. 
 (r) “Term Loan Guarantors” shall mean, collectively, Parent, Factory, JCI, J. Crew, Retail, J. Crew Virginia, Inc. and any Restricted Subsidiary (as defined in the Term Loan Agreement) of Operating or its Subsidiaries formed after
the Term Loan Closing Date, that guarantees the Indebtedness under the Term Loan Agreement, and their respective successors and assigns; sometimes being referred to individually as a “Term Loan Guarantor”. 
 (s) “Term Loan Incremental Advance” shall mean a one-time advance of up to $100,000,000 as provided for in the Incremental Advance Commitment
Letter, dated April 24, 2006, among Operating, Term Loan Agent, Bear Stearns Corporate Lending Inc. and Wachovia Bank, National Association. 
 (t) “Term Loan Intercreditor Agreement” shall mean the Intercreditor Agreement, dated on or about the Term Loan Closing Date, by and among Agent, Term Loan Agent, Operating, and the Term Loan Guarantors, as the same now exists or
may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 (u) “Term Loan Security Agreements”
shall mean, collectively, (i) the Pledge and Security Agreement (Term Loan), dated on or about the Term Loan Closing Date, by Operating and the Term Loan Guarantors in favor of Term Loan Agent and (ii) any trademark, patent, copyright and
any other security agreements, documents and instruments entered into in connection therewith; sometimes being referred to individually as a “Term Loan Security Agreement”. 
 (v) “TPG-MD” shall mean TPG-MD Investment, LLC, a Delaware limited liability company, and its successors and assigns. 
  

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 1.2 Amendment to Definitions. 
 (a) As of the date hereof, all references to the term “Agreement” in the Loan Agreement and the other Financing Agreements shall be deemed and
each such reference is hereby amended to mean the Loan Agreement as such term is defined herein. 
 (b) As of the date hereof, all references
to the term “Black Canyon Guarantors” in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to include, in addition, and not in limitation, Parent. 
 (c) As of the Term Loan Funding Date, all references to the term “Borrowing Base” in the Loan Agreement and the other Financing Agreements
shall be deemed and each such reference is hereby amended to mean, at any time, the amount equal to: 
 (i) the lesser of:

 (A) the sum of: 
 (1) the amount equal to ninety (90%) percent of Eligible Credit Card Receivables; plus 
 (2) the amount equal to the lesser of: (aa) ninety (90%) percent multiplied by the Value of each category of Eligible Inventory of each Borrower or (bb) during the period from September 1 of any year through and including
November 30 of such year, ninety-two and one-half (92.5%) percent of the Net Recovery Percentage as to each category of Eligible Inventory of each Borrower multiplied by the Value of such category of Eligible Inventory of such Borrower,
and at all other times, ninety (90%) percent of the Net Recovery Percentage as to each category of Eligible Inventory of each Borrower multiplied by the Value of such category of Eligible Inventory of such Borrower; plus 
 (3) the Real Property Availability, and 
 (B) the Maximum Credit, 
 minus 
 (ii) Reserves. 
 (d) As of
the Term Loan Closing Date, all references to the term “Change of Control” in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to include, in addition, and not in limitation, a
“Change of Control” as such term is defined in the Term Loan Agreement. 
  

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 (e) As of the date hereof, all references to the term “Financing Agreements” in the Loan
Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to include, in addition and not in limitation, this Amendment No. 3, and all other agreements documents and instruments at any time executed
and/or delivered by any Borrower or Guarantor with, to or in favor of Agent, any Lender or any other person in connection with the Obligations. 
 (f) As of the Term Loan Funding Date, all references to the term “Real Property Availability” in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to mean $7,410,000;
provided, that, the Real Property Availability shall be reduced automatically and without further action by the parties effective as of the first day of each month, commencing on June 1, 2006 by an amount equal to $88,214.

 1.3 Interpretation. For purposes of this Amendment No. 3, all terms used herein, including those terms used or defined in the
recitals hereto, shall have the respective meanings assigned thereto in the Loan Agreement. 
 Section 2. Consents. 

2.1 Consent to Transactions. Subject to the terms and conditions contained herein, Agent and Lenders hereby consent to the following
(collectively, the “Transactions” and individually a “Transaction”): 
 (a) the execution and delivery by Borrowers and
Term Loan Guarantors of the Term Loan Documents and the grant of the security interests and the guaranties provided for therein and the incurrence of the obligation to pay any upfront, funding or commitment fees as provided for therein (but not for
purposes of this clause (a) any Indebtedness arising pursuant to the term loans contemplated thereunder); 
 (b) the Indebtedness of
Borrowers and Term Loan Guarantors arising pursuant to the initial funding of the term loans under the Term Loan Documents on the Term Loan Funding Date; 
 (c) the repurchase by Operating of the 9 3/4% Notes on the 9 3/4% Note Tender Offer Closing Date pursuant to the 9 3/4% Note Tender Offer Documents (and the cancellation of the notes so repurchased), using a portion of the Net Cash Proceeds of the Term Loan Credit Facility
and other funds available to Operating for such purpose; 
 (d) the redemption by Operating of the 9 3/4% Notes that remain outstanding, if any (and the cancellation of the notes so redeemed), after the repurchase of
the 9 3/4% Notes pursuant to the 9 3/4% Note Tender Offer Documents on the 9 3/4% Note Redemption Date pursuant to the 9 3/4% Note Redemption Documents, using a portion of the
Net Cash Proceeds of the Term Loan Credit Facility and other funds available to Operating for such purpose held in the Term Loan Collateral Account; 
 (e) the cancellation by Parent of the Senior Discount Debentures held by Parent, as successor by merger to J. Crew Intermediate LLC; 
  

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 (f) the redemption by Parent of all of the remaining balance of the Senior Discount Debentures on the
Senior Discount Debenture Redemption Date pursuant to the Senior Discount Debenture Redemption Documents, using funds available to Parent for such purpose; 
 (g) the execution and delivery of the 5.0% Note Credit Agreement and the execution and delivery of the notes, note guarantees and any other documents provided for thereunder; and 
 (h) as of the Term Loan Funding Date, (i) the establishment by Operating of the Term Loan Collateral Account, (ii) the grant of a security
interest thereon solely to Term Loan Agent, (iii) the deposit in the Term Loan Collateral Account by Operating of the Net Cash Proceeds from (A) the Term Loan Credit Facility and (B) other funds available to Operating for such purpose
to the extent not prohibited hereunder or under the other Financing Agreements, provided, that, the aggregate amount at any time deposited into the Term Loan Collateral Account shall be equal to the amount necessary to prepay or redeem
any 9 3/4% Notes that shall remain outstanding immediately following the Term Loan Funding Date and (iv) in
the event that any funds remain in the Term Loan Collateral Account on the date that is forty-five (45) days after the Term Loan Funding Date that have not been applied to prepay or redeem the 9 3/4% Notes, the prepayment of principal of the Indebtedness under the Term Loan Documents with such funds. 
 2.2 Limitations. Nothing contained in Section 2.1 shall be construed to waive, modify or limit any of the representations, warranties and
covenants with respect to any of the Transactions to the extent set forth in this Amendment No. 3. 
 Section 3. Amendments to
Loan Agreement. 
 3.1 Collateral. As of the Term Loan Funding Date, Section 5.1(b) of the Loan Agreement is hereby amended to
add a new subsection (b)(iii) as follows: “(iii) or the Term Loan Collateral Account”. 
 3.2 Financial Statements and Other
Information. As of the Term Loan Funding Date, Section 9.6 of the Loan Agreement is hereby amended by deleting subsection (a)(i) thereto in its entirety and substituting the following therefor: 
 “(i) within forty-five (45) days after the end of each fiscal quarter, quarterly unaudited consolidated financial statements
(including balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), and unaudited consolidating financial statements (consisting of balance sheets and statements of income and loss), all in
reasonable detail, fairly presenting in accordance with GAAP the financial position and the results of the operations of Parent and its Subsidiaries as of the end of and through such fiscal quarter, certified by the chief financial officer or
controller of Parent, subject to normal year-end adjustments and no footnotes and 
  

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 accompanied by a compliance certificate substantially in the form of Exhibit C hereto, along with a
schedule in a form satisfactory to Agent of the calculations used in determining, as of the end of such quarter, whether Borrowers and Guarantors are in compliance with the covenants set forth in Sections 9.18 and 9.19 of this Agreement for such
quarter; provided, that, (A) at any time after Excess Availability is less than $20,000,000 or a Default or Event of Default exists or has occurred, upon the request of Agent, Borrowers and Guarantors shall furnish, or cause to be
furnished, to Agent thereafter, within thirty (30) days after the end of each fiscal month, monthly unaudited consolidated financial statements (including balance sheets, statements of income and loss, statements of cash flow and statements of
shareholders’ equity), and unaudited consolidating financial statements (consisting of balance sheets and statements of income and loss), all in reasonable detail, fairly presenting in accordance with GAAP the financial position and the results
of the operations of Parent and its Subsidiaries as of the end of and through such fiscal month, certified by the chief financial officer or controller of Parent, subject to normal year-end adjustments and no footnotes and accompanied by a
compliance certificate substantially in the form of Exhibit C hereto, along with a schedule in a form satisfactory to Agent of the calculations used in determining, as of the end of such month, whether Borrowers and Guarantors are in compliance with
the covenants set forth in Sections 9.18 and 9.19 of this Agreement for such month and (B) Borrowers agree to furnish Agent with unaudited consolidated financial statements (including balance sheets, statements of income and loss, statements of
cash flow and statements of shareholders’ equity), and unaudited consolidating financial statements (consisting of balance sheets and statements of income and loss) of Parent and its Subsidiaries at such times as such information is required to
be furnished to the Term Loan Agent under the Term Loan Agreement if more frequently than quarterly.” 
 3.3 Encumbrances.

 (a) As of the 9 3/4% Note Tender Offer Closing Date, Section 9.8(n) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor: “intentionally omitted”. 
 (b) As of the Term Loan Closing Date, Section 9.8(o) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor:
“intentionally omitted”. 
 (c) As of the Term Loan Closing Date, Section 9.8 of the Loan Agreement is hereby amended by
adding the following new subsection (p) at the end thereof: 
 “(p) the security interests and liens of Term Loan
Agent in the Collateral pursuant to any Term Loan Security Agreement to secure the Indebtedness of Operating and the Term Loan Guarantors under the Term Loan Documents to the extent such Indebtedness is permitted under Section 9.9(w) hereof,
which security interests and liens of the Term Loan Agent are and shall at all times be junior and subordinate to the security interests and liens of Agent pursuant to and to the extent provided in the Term Loan Intercreditor Agreement as to the
Revolving Loan Priority Collateral.” 
  

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 3.4 Indebtedness. 
 (a) As of the Senior Discount Debenture Redemption Date, Section 9.9(j) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor: “intentionally omitted”.

 (b) As of the Term Loan Closing Date, Section 9.9(o) of the Loan Agreement is hereby amended by deleting the wording prior to the
proviso and substituting the following therefor: “(o) Indebtedness of Parent and Operating, as the case may be, arising after the date hereof issued in exchange for, or the proceeds of which are used to extend, refinance, replace or substitute
for Indebtedness permitted under Section 9.9(j), 9.9(q), 9.9(r), 9.9(s) or 9.9(w) hereof (the “Refinancing Indebtedness”);”. 
 (c) As of the 9 3/4% Note Redemption Date, Section 9.9(o) is hereby further amended by deleting the
wording prior to the proviso and substituting the following therefor: “(o) Indebtedness of Parent or Operating, as the case may be, arising after the date hereof issued in exchange for, or the proceeds of which are used to extend, refinance,
replace or substitute for Indebtedness permitted under Section 9.9(j), 9.9(q) or 9.9(w) hereof (the “Refinancing Indebtedness”);”. 
 (d) As of the Senior Discount Debenture Redemption Date, Section 9.9(o) is hereby further amended by deleting the wording prior to the proviso and substituting the following therefor: “(o) Indebtedness of
Parent or Operating, as the case may be, arising after the date hereof issued in exchange for, or the proceeds of which are used to extend, refinance, replace or substitute for Indebtedness permitted under Section 9.9(q) or 9.9(w) hereof (the
“Refinancing Indebtedness”);”. 
 (e) As of the 9 3/4% Note Redemption Date, Section 9.9(r) of the Loan Agreement is hereby deleted in its entirety and the following substitute therefor: “intentionally omitted”.

 (f) As of the 9 3/4% Note Redemption Date, Section 9.9(s) of the Loan Agreement is hereby deleted in its entirety and the following substitute therefor: “intentionally omitted”. 
 (g) As of the Term Loan Closing Date, Section 9.9(t) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor:
“intentionally omitted”. 
 (h) As of the Term Loan Closing Date, Section 9.9(u) of the Loan Agreement is hereby deleted in
its entirety and the following substituted therefor: “intentionally omitted”. 
 (i) As of the Term Loan Closing Date,
Section 9.9 of the Loan Agreement is hereby amended by adding a new Section 9.9(w) and 9.9(x) at the end thereof as follows: 
 “(w) Indebtedness of Operating and the Term Loan Guarantors for the upfront funding or commitment fees as provided under the Term Loan Documents and Indebtedness of Operating and the Term Loan Guarantors arising
under the Term Loan Agreement, provided, that: 
 (i) the aggregate principal amount of such Indebtedness
arising on the Term Loan Funding Date shall not exceed $285,000,000, less the aggregate amount of all repayments or redemptions, whether optional or mandatory, in respect 
  

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 thereof, plus interest thereon and fees accrued thereunder as provided for in the Term Loan Agreement,
except, that, at the option of Borrowers, the aggregate principal amount of such Indebtedness outstanding may be increased, provided, that, (A) Agent shall have received not less than three (3) Business Days’ prior
written notice of the intention of Borrowers to exercise such option, which notice shall specify the then current amounts of such Indebtedness, the amount of such increase and such other information with respect thereto as Agent may reasonably
request, (B) each of the conditions to any such increase under the terms of the Term Loan Agreement as in effect on date of Amendment No. 3 have been satisfied or waived and Agent shall have received from Borrowers such evidence thereof as
Agent may request, (C) such Indebtedness shall be on the same terms and conditions as the Indebtedness of Borrowers under the Term Loan Agreement or terms and conditions more favorable to Borrowers and Guarantors, (except that, an increase in
the “Applicable Margin” or similar component of the interest rate of any tranche thereof by up to three (3%) percent per annum from the rate specified for the “Applicable Margin” or such component of the interest rate in the
Term Loan Agreement as in effect on the date of Amendment No. 3 (excluding increases resulting from the accrual of interest at the default rate) shall be permitted) and subject in all respects to the Term Loan Intercreditor Agreement or other
intercreditor agreements no less favorable to Agent in any respect, (D) Agent shall receive written confirmation from Borrower Agent that Borrowers have received the proceeds of the loans in immediately available funds giving rise to such
increase in Indebtedness promptly upon the receipt thereof and the amount of such funds, (E) in no event shall the aggregate principal amount of all such increases exceed an amount equal to $100,000,000, (F) after giving effect to any such
increase, Excess Availability shall be not less than $20,000,000 and (G) as of the date of such increase and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be continuing, 
 (ii) Borrowers and Guarantors shall not, directly or indirectly, make any payments in respect of such Indebtedness, except
(A) regularly scheduled payments of interest and fees, if any, in respect of such Indebtedness when due in accordance with the terms of the Term Loan Agreement, and any reasonable and customary fees required to be paid to lenders or holders
of the Indebtedness of Operating under the Term Loan Documents, (B) regularly scheduled payments of principal, and mandatory prepayments of principal, together with accrued interest, fees and premiums, if any with respect to such mandatory
prepayment of principal (including in the event that any funds remain in the Term Loan Collateral Account on the date that is forty-five (45) days after the Term Loan Funding Date and have not been applied to prepay or redeem the 9 3/4% Notes, the prepayment of principal under the Term Loan Documents 
  

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 with such funds in the Term Loan Collateral Account), in respect of such Indebtedness in each case when
due in accordance with the terms of the Term Loan Agreement (except that for mandatory prepayments required pursuant to the sale or other disposition of assets or as a result of insurance proceeds, Operating shall exercise its option to reinvest
proceeds from such sale or other disposition or insurance rather than make a mandatory prepayment thereunder to the extent permitted under, and in accordance with, the terms of the Term Loan Agreement) and (C) payments permitted under clause
(iv) below of this Section 9.9(w), 
 (iii) Borrowers and Guarantors shall not, directly or indirectly, amend,
modify, alter or change, in each case, any terms of such Indebtedness or any of the Term Loan Documents or any related agreements, documents and instruments, so as to (A) increase the sum of the then outstanding aggregate principal amount of
such Indebtedness in excess of (1) $313,500,000 in the event Operating has not exercised its option to obtain the Term Loan Incremental Advance or (2) in the event that Operating has exercised its option to obtain the Term Loan Incremental
Advance, the sum of (1) $285,000,000 plus (2) the Term Loan Incremental Advance plus (3) an amount equal to ten (10%) percent of the sum of (x) 285,000,000 plus (y) the Term Loan Incremental Advance;
(B) increase the “Applicable Margin” or similar component of the interest rate by more than three (3%) percent per annum (excluding increases resulting from the accrual of interest at the default rate) or increase the aggregate
amount of any fees (other than one-time fees or fees charged in respect of amendments, waivers or consents) by more than $100,000 in any twelve (12) month period, or frequency of payment of any fees provided for in the Term Loan Agreement
(except that Operating may increase the frequency of payment of any fees from quarterly to monthly); (C) shorten the scheduled maturity of the Term Loan Agreement or any refinancing thereof; (D) modify (or have the effect of a modification
of) the terms of payment, including the regularly scheduled payments of principal or mandatory prepayment provisions of the Term Loan Agreement, in a manner that increases the amount of any of such payments or frequency of any of such payments, or
requires additional mandatory prepayments or limits the rights of Borrowers and Guarantors with respect thereto or is otherwise adverse to Agent and Lenders, except that Operating may modify such terms of payment to increase the aggregate amount of
regularly scheduled payments of principal in any year in respect thereof by no more than $500,000 in any year or (E) in any manner adverse to Agent and Lenders, modify (or have the effect of a modification of) the granting clauses (and the
exclusions therefrom) of any Term Loan Document that is a collateral document (or the definitions of the terms contained in any such granting clauses), and 
 (iv) Borrowers and Guarantors shall not, directly or indirectly, voluntarily prepay, redeem, retire, defease, purchase or otherwise acquire all or any part of such Indebtedness other than at maturity (as set forth in
the Term Loan Agreement), or set aside or otherwise deposit or invest any sums for such purpose, or otherwise make any optional prepayment in respect thereof, except that 
  

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 (A) Borrowers or Guarantors may prepay, redeem, retire, defease, purchase or otherwise
acquire all or any part of such Indebtedness with Refinancing Indebtedness with respect thereto to the extent permitted under Section 9.9(o) hereof, 
 (B) Borrowers or Guarantors may prepay, redeem, retire, defease, purchase or otherwise acquire all or any portion of such Indebtedness with the Net Cash Proceeds of the issuance and sale of Capital Stock of Parent or
Operating permitted hereunder received by such Borrower or Guarantor in cash or other immediately available funds; provided, that, as of the date of any such prepayment, redemption or purchase or any other payment in respect thereof
and after giving effect thereto, (1) Borrowers and Guarantors shall have complied with all of the requirements of Sections 9.7(b)(iii)(A), (B), (C) and (E) with respect to such issuance and sale of Capital Stock and in addition to
such requirements, the notice provided to Agent pursuant thereto shall specify that the proceeds are to be used for the redemption, retirement, defeasance, purchase or acquisition of all or any part all of such Indebtedness (and shall specify which
of the foregoing is intended), the maximum amount that Borrowers and Guarantors will pay in respect thereof and the range of the principal amount of such Indebtedness that Borrowers and Guarantors anticipate will be so redeemed, retired, defeased,
purchased or otherwise acquired, (2) the prepayment, redemption, retirement, defeasance, repurchase or acquisition of all or any part of such Indebtedness shall be substantially contemporaneous with the issuance and sale of the Capital Stock of
Parent or Operating subject to such notice provided to Agent, (3) as of the date of any such payment and after giving effect thereto, there shall be Excess Availability of not less than $20,000,000, and (4) as of the date of any such
payment and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be continuing, and 
 (C) Borrowers or Guarantors may prepay, redeem or repurchase such Indebtedness in cash or other immediately available funds (other than with the Net Cash Proceeds of the issuance and sale of Capital Stock of Parent or Operating as provided
in clause (B) above); provided, that, (1) Borrower Agent shall have provided to Agent not less than ten (10) Business Days’ notice of the intention of such Borrower or Guarantor to redeem or repurchase such
Indebtedness (specifying the amount to be paid by Borrowers or Guarantors and the principal amount of such Indebtedness that Borrowers and Guarantors anticipate will be so redeemed or repurchased), (2) for the two (2) consecutive month
period immediately prior to the date of any payment in respect of such redemption or repurchase, Excess Availability shall have been not less than $30,000,000, (3) Agent shall have received, not more than ten (10) Business Days prior to
such payment and not less than five (5) Business Days prior to such payment, current, updated projections of the amount of the Borrowing Base and Excess Availability for the one month period after the date of any payment in respect of such
redemption or repurchase, in a form reasonably satisfactory to Agent, representing Borrowers’ reasonable best estimate of the future Borrowing Base and Excess Availability for the period set forth therein as of the date not more than ten
(10) days 
  

 12 

 prior to the date of the payment in respect of such redemption and repurchase, which projections shall
have been prepared on the basis of the assumptions set forth therein which Borrowers believe are fair and reasonable as of the date of preparation in light of current and reasonably foreseeable business conditions, (4) the amount of the Excess
Availability as set forth in such projections for such one month period shall be not less than $20,000,000, and (5) as of the date of any such payment and after giving effect thereto, no Default or Event of Default exists or has occurred and is
continuing; and 
 (x) contingent Indebtedness arising pursuant to the guarantees existing on the Term Loan Closing Date by
the Term Loan Guarantors of the Indebtedness of Operating arising under the Term Loan Documents to the extent such Indebtedness of Operating is permitted hereunder, set forth in the Term Loan Agreement.” 
 3.5 Loans, Investments, Etc. As of the Term Loan Closing Date, Section 9.10 of the Loan Agreement is hereby amended by adding the following
new subsection (m) at the end thereof: 
 “(m) an intercompany loan by Operating to Parent on or before the Senior
Discount Debenture Redemption Date in an aggregate principal amount not to exceed $23,000,000 less the amount of any dividend paid by Operating to Parent pursuant to Section 9.11(j); provided, that, the Indebtedness arising pursuant to such
loan shall be evidenced by a promissory note or other instrument, which shall, to the extent required under the terms of the Term Loan Agreement be promptly delivered to Term Loan Agent to hold on behalf of Agent subject to the terms of the
Intercreditor Agreement or to Agent, and which note shall be unsecured and subordinated in right of payment to the payment in full in cash of the Obligations pursuant to the terms of such promissory note or an intercompany subordination agreement
that, in any such case, is satisfactory to Agent.” 
 3.6 Restricted Payments. As of the Term Loan Closing Date,
Section 9.11 of the Loan Agreement is hereby amended by adding the following new subsection (j) at the end thereof: 
 “(j) Operating may, on or before the Senior Discount Debenture Redemption Date, declare and pay a dividend to Parent in an amount not to exceed $23,000,000 less the amount of any loan outstanding from Operating to Parent pursuant to
Section 9.10(m).” 
 3.7 Limitation of Restrictions Affecting Subsidiaries. As of the Term Loan Closing Date,
Section 9.17(d) of the Loan Agreement is hereby amended by deleting the term “and” prior to subsection (vi) thereto and adding a new subsection (vii) thereto at the end of subsection (vi) thereof as follows: “and
(vii) the Term Loan Documents.” 
  

 13 

 3.8 Events of Default. 
 (a) As of the Term Loan Closing Date, Section 10.1 of the Loan Agreement is hereby amended by deleting subsection (i) thereto in its entirety
and substituting the following therefor: 
 “(i) any default by any Borrower or any Obligor under any agreement, document
or instrument other than the Term Loan Documents relating to any Indebtedness owing to any person other than Lenders, or any capitalized lease obligations, contingent indebtedness in connection with any guarantee, letter of credit, indemnity or
similar type of instrument in favor of any person other than Lenders, in any case in an amount in excess of $5,000,000, which default continues for more than the applicable cure period, if any, with respect thereto, or any default by any Borrower or
any Obligor under any Material Contract (including, without limitation, any of the Credit Card Agreements), which default continues for more than the applicable cure period, if any, with respect thereto which default has or could reasonably be
expected to have a Material Adverse Effect, or any Credit Card Issuer or Credit Card Processor (other than with a Credit Card Issuer or Credit Card Processor where the sales using the applicable card are less than ten (10%) percent of all such
sales in the immediately preceding fiscal year) withholds payment of amounts otherwise payable to a Borrower to fund a reserve account or otherwise hold as collateral, or shall require a Borrower to pay funds into a reserve account or for such
Credit Card Issuer or Credit Card Processor to otherwise hold as collateral, or any Borrower shall provide a letter of credit, guarantee, indemnity or similar instrument to or in favor of such Credit Card Issuer or Credit Card Processor such that in
the aggregate all of such funds in the reserve account, other amounts held as collateral and the amount of such letters of credit, guarantees, indemnities or similar instruments shall exceed $2,000,000 or any such Credit Card Issuer or Credit Card
Processor shall debit or deduct any amounts in excess of $50,000 in the aggregate in any fiscal year of Borrowers and Guarantors from any deposit account of any Borrower;” 
 (b) As of the Term Loan Closing Date, Section 10.1 of the Loan Agreement is hereby amended by adding a new Section 10.1(p) at the end thereof
as follows: 
 “(p) (i) the failure of any Borrower or Guarantor to pay when due any principal of or interest on or
any other amount payable in respect of the Term Loan Documents beyond the grace period, if any provided therefore or (ii) any other default under the Term Loan Documents shall exist beyond the grace period, if any, provided therefor (including,
but not limited to, the failure of any party thereto to comply in any material respect with any of the terms thereof) if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness to cause, that
Indebtedness to become or be declared due and payable prior to its stated maturity. 
  

 14 

 Section 4. Additional Representations, Warranties and Covenants. In addition to the
continuing representations, warranties and covenants heretofore or hereafter made by Borrowers and Guarantors to Agent and Lenders pursuant to the other Financing Agreements, each of Borrowers and Guarantors, jointly and severally, hereby
represents, warrants and covenants with and to Agent and Lenders as follows (which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof and shall be incorporated into and made a part of the
Financing Agreements): 
 4.1 Due Execution; Non-Contravention. 
 (a) As of the date hereof, this Amendment No. 3 has been duly executed and delivered by all necessary action on the part of Borrowers and Guarantors
and, if necessary, their respective stockholders, and is in full force and effect as of the date hereof and the agreements and obligations of Borrowers and Guarantors contained herein constitute legal, valid and binding obligations of Borrowers and
Guarantors enforceable against Borrowers and Guarantors in accordance with their respective terms. 
 (b) As of the Term Loan Closing Date,
the execution, delivery and performance of the Term Loan Documents (i) are all within each Borrower’s and Guarantor’s corporate or limited liability company powers, (ii) have been duly authorized, (iii) to Borrowers’
and Guarantors’ knowledge, are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate of incorporation, certificate of formation, by-laws, membership agreement or other organizational documentation, or
any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound and (iv) will not result in the creation or imposition of, or require or give rise to any
obligation to grant, any lien, security interest, charge or other encumbrance upon any property of any Borrower or Guarantor (other than the security interests in favor of Term Loan Agent to the extent permitted under the Loan Agreement as amended
hereby). 
 (c) As of the Term Loan Funding Date, the execution, delivery and performance of the 9 3/4% Note Tender Offer Documents, the Senior Discount Debenture Redemption Documents, the 5.0% Note Credit Agreement,
and all other agreements in connection with the Transactions and all of the Transactions (i) are all within each Borrower’s and Guarantor’s corporate or limited liability company powers, (ii) have been duly authorized,
(iii) to Borrowers’ and Guarantors’ knowledge, are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate of incorporation, certificate of formation, by-laws, membership agreement or other
organizational documentation, or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound and (iv) will not result in the creation or imposition of, or
require or give rise to any obligation to grant, any lien, security interest, charge or other encumbrance upon any property of any Borrower or Guarantor (other than the security interests in favor of Term Loan Agent to the extent permitted under the
Loan Agreement as amended hereby). 
  

 15 

 4.2 Term Loan Arrangements. 
 (a) As of the Term Loan Closing Date: 
 (i)
All actions and proceedings required by the Term Loan Documents, applicable law and regulation shall have been taken and the transactions required thereunder shall have been duly and validly taken and consummated. 
 (ii) No court of competent jurisdiction shall have issued any injunction, restraining order or other order which prohibits consummation of the
transactions described in the Term Loan Documents and no governmental action or proceeding shall have been threatened or commenced seeking any injunction, restraining order or other order which seeks to void or otherwise modify the transactions
described in the Term Loan Documents. 
 (iii) No loans or advances have been made under the Term Loan Documents and no Indebtedness is or
will be outstanding under the Term Loan Documents prior to the Term Loan Funding Date. 
 (iv) Borrowers shall have delivered, or caused to
be delivered, to Agent, true, correct and complete copies of the Term Loan Documents. 
 (b) As of the Term Loan Funding Date: 
 (i) Operating has borrowed not less than $285,000,000 from the term loans under the Term Loan Documents. 
 (ii) Operating shall have deposited in the Term Loan Collateral Account the proceeds of the Term Loan Credit Facility in an amount not less than the
amount necessary to prepay or redeem any 9 3/4% Notes that shall remain outstanding immediately following the
Term Loan Funding Date. 
 (iii) All funds in the Term Loan Collateral Account shall only be used for (A) the repurchase of the
9 3/4% Notes pursuant to the 9 3/4% Note Tender Offer Documents on the 9 3/4% Note Tender Offer Closing Date and to the extent of any then remaining 9 3/4% Notes outstanding
thereafter, the redemption of such 9 3/4% Notes pursuant to the 9 3/4% Notes Redemption Documents on the 9 3/4% Note Redemption Date or (B) in the event that any funds remain in the Term Loan Collateral Account on the date that is forty-five (45) days after the Term Loan Funding Date, a mandatory prepayment of principal of
the Indebtedness under the Term Loan Documents. 
 4.3 Redemption of Senior Discount
Debentures. As of the Senior Discount Debenture Notice Date, Parent has executed and delivered, or caused to be executed and delivered, a notice of redemption and any other documents that may be required under the terms of the Senior Debenture
Indenture and taken such other actions as may be required thereunder in order for the Senior Discount Debentures to be redeemed on the Senior Discount Debenture Redemption Date pursuant to the Senior Discount Debentures Redemption Documents. As of
the Senior Discount Debenture Redemption Date: 
 (a) The Senior Discount Debenture Redemption Documents and the transactions contemplated
thereunder shall have been duly executed, delivered and performed in accordance with their terms by the respective parties thereto, including the fulfillment of 
  

 16 

 all conditions precedent set forth therein and after giving effect thereto on the Senior Discount Debenture Redemption
Date, Parent shall have redeemed, repurchased or cancelled all of the outstanding Senior Discount Debentures in the principal amount of not more than $143,000,000 and the Indebtedness and other obligations and liabilities of Parent or any of the
other Borrowers and Guarantors in respect thereof have been satisfied and performed and all of the Senior Discount Debentures shall have been cancelled. 
 (b) All actions and proceedings required by the Senior Discount Debenture Redemption Documents, applicable law and regulation shall have been taken and the transactions required thereunder shall have been duly and
validly taken and consummated. 
 (c) No court of competent jurisdiction shall have issued any injunction, restraining order or other order
which prohibits consummation of the transactions described in the Senior Discount Debenture Redemption Documents and no governmental action or proceeding shall have been threatened or commenced seeking any injunction, restraining order or other
order which seeks to void or otherwise modify the transactions described in the Senior Discount Debenture Redemption Documents. 
 (d)
Borrowers shall have delivered, or caused to be delivered, to Agent, true, correct and complete copies of the Senior Discount Debenture Redemption Documents, and Agent shall have received, in form and substance satisfactory to Agent, evidence that
all of the Senior Discount Debentures have been repurchased or redeemed and cancelled. 
 4.4 9 3/4% Notes Tender Offer and Redemption.

 (a) As of the Term Loan Funding Date and the 9 3/4% Tender Offer Closing Date: 
 (i) Operating has executed and
delivered, or caused to be executed and delivered, a notice of redemption and any other documents that may be required under the terms of the Black Canyon Indenture and any other Black Canyon Documents and taken such other actions as may be required
thereunder in order for all of the 9 3/4% Notes that have not been purchased by Operating pursuant to the 9 3/4% Notes Tender Offer on the 9 3/4% Note Tender Offer Closing Date to be redeemed on the 9 3/4% Note Redemption Date pursuant to the 9 3/4% Redemption Documents.

 (ii) The holders of not less than a majority in aggregate principal amount of the outstanding 9 3/4% Notes shall have agreed to tender, and shall have tendered, all of their 9 3/4% Notes pursuant to the 9 3/4% Note Tender Offer Documents and consented to the amendments and supplements to the Black Canyon Indentures set forth in the Black Canyon Supplemental Indentures, dated as of
October 17, 2005, true, correct and complete copies of which have been delivered to Agent prior to the date of this Amendment No. 3. 
  

 17 

 (iii) The 9 3/4% Note Tender Offer Documents and the transactions contemplated thereunder shall have been duly executed, delivered and performed in accordance with their terms by the respective parties thereto in all
respects, including the fulfillment of all conditions precedent set forth therein and after giving effect thereto and including (A) the amendment of the Black Canyon Indenture pursuant to the Black Canyon Supplemental Indentures, which shall be
in full force and effect, (B) the termination and release of all security interests and liens that secure the Indebtedness and other obligations and liabilities evidenced by or arising under the 9 3/4% Notes and the other Black Canyon Documents, and (C) the subordination of the Indebtedness and other obligations and liabilities evidenced by or
arising under the 9 3/4% Notes and the other Black Canyon Documents to the payment in full of the Obligations on
terms and conditions satisfactory to Agent. 
 (iv) All actions and proceedings required by the 9 3/4% Note Tender Offer Documents, applicable law and regulation shall have been taken and the transactions required
thereunder shall have been duly and validly taken and consummated. 
 (v) No court of competent jurisdiction shall have issued any
injunction, restraining order or other order which prohibits consummation of the transactions described in the 9 3/4% Note Tender Offer Documents and no governmental action or proceeding shall have been threatened or commenced seeking any injunction, restraining order or other order which seeks to void or otherwise modify the transactions
described in the 9 3/4% Note Tender Offer Documents. 
 (vi) Borrowers shall have delivered, or caused to be delivered, to Agent, true, correct and complete copies of the 9 3/4% Note Tender Offer Documents. 
 (b) As of the 9 3/4% Note Redemption Date: 
 (i) The 9 3/4% Note Redemption Documents and the transactions contemplated thereunder shall have been duly executed, delivered and performed in accordance with their terms by the respective
parties thereto in all respects, including the fulfillment of all conditions precedent set forth therein and after giving effect thereto, Operating has acquired or redeemed all of the then outstanding 9 3/4% Notes and all of the Indebtedness and other obligations and liabilities of Operating evidenced by or arising under such 9 3/4% Notes have been satisfied and performed and all such 9 3/4% Notes have been cancelled. 
 (ii) All actions and proceedings required by the 9 3/4% Note Redemption
Documents, applicable law and regulation shall have been taken and the transactions required thereunder had been duly and validly taken and consummated. 
 (iii) No court of competent jurisdiction shall have issued any injunction, restraining order or other order which prohibits consummation of the transactions described in the 9 3/4% Note Redemption Documents and no governmental action or proceeding shall have been threatened or commenced
seeking any injunction, restraining order or other order which seeks to void or otherwise modify the transactions described in the 9 3/4% Note Redemption Documents. 
  

 18 

 (iv) Borrowers shall have delivered, or caused to be delivered, to Agent, true, correct and complete
copies of the 9 3/4% Note Redemption Documents, and Agent shall have received, in form and substance satisfactory
to Agent, evidence that all of the 9 3/4% Notes have been repurchased or redeemed and cancelled.

 Section 5. Conditions. 
 5.1 General. Subject to Sections 5.2 and 5.3 hereof, the effectiveness of each of the consents and amendments set forth in this Amendment No. 3 shall be subject to the satisfaction of each of the following
conditions: 
 (a) Agent shall have received an original of this Amendment No. 3, duly authorized, executed and delivered by Borrowers
and Guarantors; 
 (b) Agent shall have received all consents of Lenders required for the consents and amendments provided for herein;

 (c) Agent shall have received evidence, in form and substance satisfactory to Agent, that Borrowers and Guarantors have obtained all
necessary consents and approvals to the execution, delivery and performance of this Amendment No. 3 and to the Transactions, which are and shall remain in full force and effect; 
 (d) Agent shall have received, in form and substance satisfactory to Agent, an amendment to the Deed of Trust relating to the Real Property located in
the Commonwealth of Virginia, duly authorized, executed and delivered by the owner of such Real Property; 
 (e) Agent shall have received,
in form and substance satisfactory to Agent, an endorsement (or a commitment to issue an endorsement) to the existing title insurance policy relating to the Real Property located in the Commonwealth of Virginia, (i) insuring the priority and
amount of the Deed of Trust (as so amended) relating to such Real Property and (ii) containing any legally available endorsements, assurances or affirmative coverage requested by Agent for the protection of its interest with respect to the Deed
of Trust (as so amended); 
 (f) Agent shall have received, in form and substance satisfactory to Agent, an endorsement (or a commitment to
issue an endorsement) to the existing title insurance policy relating to the Real Property located in the State of North Carolina, increasing the amount of coverage provided by such title insurance policy; 
 (g) Agent shall have received, in form and substance satisfactory to Agent, flood certifications relating to the Real Property located in the
Commonwealth of Virginia and the State of North Carolina; and 
 (h) after giving effect to each of the consents and amendments set forth
herein, no Default or Event of Default shall exist or have occurred. 
  

 19 

 5.2 Term Loan Credit Facility Closing. The effectiveness of the consent set forth in
Section 2.1(a) shall be subject to the satisfaction of each of the following conditions: 
 (a) each of the conditions set forth in
Section 5.1 hereof shall have been and shall be satisfied; 
 (b) Agent shall have received, in form and substance satisfactory to
Agent, evidence that the Term Loan Documents (including, but not limited to, the Term Loan Intercreditor Agreement) have been duly authorized, executed and delivered by Borrowers and duly executed and delivered by the other parties thereto in
accordance with their term; 
 (c) Agent shall have received the Term Loan Documents, which shall be in form and substance satisfactory to
Agent; and 
 (d) each of the conditions set forth in this Section 5.2 hereof shall have been satisfied on or before May 31, 2006.

 5.3 Term Loan Credit Facility; 9 3/4% Note Tender Offer Closing. The effectiveness of the consents set forth in Sections 2.1(b), 2.1(c), 2.1(d), 2.1(e), 2.1(f), 2.1(g) and
2.1(h) shall be subject to the satisfaction of each of the following conditions: 
 (a) each of the conditions set forth in Sections
5.1 and 5.2 hereof shall have been and shall be satisfied; 
 (b) the aggregate Excess Availability of Borrowers as determined by Agent
(calculated based upon the Borrowing Base as in effect on the Term Loan Funding Date), as of the consummation of the initial funding of the term loans under the Term Loan Credit Facility, shall be not less than $35,000,000 after giving effect to the
initial funding of the term loans under the Term Loan Credit Facility and after giving effect to all payments required under the terms of the 9 3/4% Note Tender Offer Documents and the deposit of funds in the Term Loan Collateral Account as required under Section 5.3(c) below; 
 (c) Agent shall have received, in form and substance satisfactory to Agent, evidence that proceeds of the initial funding of the term loans under the
Term Loan Credit Facility in an amount not less than the amount necessary to repurchase, prepay or redeem any 9 3/4% Notes that shall remain outstanding immediately following the Term Loan Funding Date, shall have been deposited into the Term Loan Collateral Account or otherwise directed to repurchase, prepay or redeem the 9 3/4% Notes; 
 (d) Operating has borrowed not less than $285,000,000 of the loans pursuant to the Term Loan Documents; 
 (e) Agent shall have received, in form and substance satisfactory to Agent, evidence that the liens on and security interests in the assets of Operating and the Black Canyon Guarantors granted pursuant to the Black Canyon Security Agreement
will be released and terminated (including UCC termination statements with respect to financing statements filed of record with respect to such liens and security interests) upon the initial funding of the term loans under the Term Loan Documents;

  

 20 

 (f) Agent shall have received, in form and substance satisfactory to Agent, evidence that the 9 3/4% Note Tender Offer Documents have been duly authorized, executed and delivered by the parties thereto in
accordance with their terms and as stated in the Offer to Purchase for Cash Any and All Outstanding 9 3/4% Senior
Subordinated Notes due 2014 (CUSIP No. 46612GAC1) and Solicitation of Consents to Amendments to the Related Indenture, dated October 3, 2005, Operating has acquired 9 3/4% Notes in the principal amount of not less than a majority in principal amount of such 9 3/4% Notes and all 9 3/4% Notes tendered
pursuant thereto shall have been cancelled; 
 (g) Agent shall have received, in form and substance
satisfactory to Agent, evidence that the Senior Discount Debenture Redemption Documents (other than such documents that effectuate the redemption thereof) have been duly authorized, executed and delivered by the parties thereto in accordance with
their terms; 
 (h) Agent shall have received, each in form and substance reasonably satisfactory to Agent, each of the Term Loan Documents,
the Senior Discount Debenture Redemption Documents, the 9 3/4% Note Tender Offer Documents and the 5.0% Note
Credit Agreement, each as duly authorized, executed and delivered by the respective parties thereto; 
 (i) each of the conditions set
forth in this Section 5.3 shall have been satisfied by no later than May 31, 2006. 
 Section 6. Term Loan Intercreditor
Agreement. Each Lender (a) authorizes Agent to take any action reasonably related to the termination of any Black Canyon Document to which it is a party, (b) authorizes the execution, delivery and performance of the terms and
conditions of the Term Loan Intercreditor Agreement by Agent in form and substance satisfactory to Agent (including, but not limited to, the subordination of the security interests and liens of Agent with respect to Collateral other than the
Revolving Loan Priority Collateral to the security interests and liens of Term Loan Agent as provided therein) and (c) agrees to perform, comply with and be bound by all terms, conditions and covenants (as a Lender) of the Term Loan
Intercreditor Agreement as if it were a signatory thereto. 
 Section 7. Miscellaneous. 
 7.1 Effect of this Amendment No. 3. Except as modified pursuant hereto, no other changes or modifications to the Financing Agreements are
intended or implied, and in all other respects, the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of effective date hereof. The Loan Agreement and this Amendment No. 3 shall be read and
construed as one agreement. To the extent of conflict between the terms of this Amendment and the other Financing Agreements, the terms of this Amendment No. 3 shall control. 
  

 21 

 7.2 Further Assurances. The parties hereto shall execute and deliver such additional documents and
take such additional actions as may be necessary, in the reasonable discretion of Agent, to effectuate the provisions and purposes of this Amendment No. 3. 
 7.3 Governing Law. The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the laws of the State of New York without regard to
principles of conflicts of law or other rule of law that would result in the application of the law of any jurisdiction other than the laws of the State of New York. 
 7.4 Binding Effect. This Amendment No. 3 shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
 7.5 Counterparts. This Amendment No. 3 may be executed in any number of counterparts, but all of such counterparts shall together constitute
but one and the same agreement. In making proof of this Amendment No. 3, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties thereto. This Amendment No. 3 may be executed in
any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. In making proof of this Amendment No. 3, it shall not be necessary to produce or account for more than one counterpart thereof
signed by each of the parties hereto. Delivery of an executed counterpart of this Amendment No. 3 by telefacsimile or other electronic means shall have the same force and effect as delivery of an original executed counterpart of this Amendment
No. 3. Any party delivering an executed counterpart of this Amendment No. 3 by telefacsimile or other electronic means also shall deliver an original executed counterpart of this Amendment No. 3, but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment No. 3 as to such party or any other party. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 22 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to be duly executed and
delivered by their authorized officers as of the date and year first above written. 
  

			
	J. CREW OPERATING CORP.
	J. CREW INC.
	GRACE HOLMES, INC. d/b/a J. CREW RETAIL
	H.F.D. NO. 55, INC. d/b/a J. CREW FACTORY
	J. CREW GROUP, INC.
	MADEWELL INC.
		
	By:	  	 /s/ James S. Scully

	Name:	  	James S. Scully
	Title:	  	 Executive Vice President and
 Chief Financial
Officer

	
	J. CREW INTERNATIONAL, INC.
		
	By:	  	 /s/ Nicholas P. Lamberti

	Name:	  	Nicholas P. Lamberti
	Title:	  	Vice President and Controller
	
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION,
successor by merger to Congress
 Financial Corporation, as Agent and as Lender

		
	By:	  	 /s/ Jason Searle

	Name:	  	Jason Searle
	Title:	  	Vice President

 [Signature Page to Amendment No. 3 to Amended and Restated Loan and Security Agreement] 

			
	BANK OF AMERICA N.A.
		
	By:	  	 /s/ Kathleen Dimock

	Name:	  	Kathleen Dimock
	Title:	  	Managing Director

 [Signature Page to Amendment No. 3 to Amended and Restated Loan and Security Agreement] 

			
	SIEMEN’S FINANCIAL SERVICES, INC.
		
	By:	  	 /s/ Joseph Accardi

	Name:	  	Joseph Accardi
	Title:	  	Vice President

 [Signature Page to Amendment No. 3 to Amended and Restated Loan and Security Agreement] 

			
	THE CIT GROUP/BUSINESS CREDIT, INC.
		
	By:	  	 /s/ Steve Schuitt

	Name:	  	Steve Schuitt
	Title:	  	Vice President

 [Signature Page to Amendment No. 3 to Amended and Restated Loan and Security Agreement] 

			
	 LASALLE RETAIL FINANCE, a division of
 Lasalle Business Credit, as agent for Standard
 Federal Bank National Association

		
	By:	  	 /s/ Dan O’Rourke

	Name:	  	Dan O’Rourke

 [Signature Page to Amendment No. 3 to Amended and Restated Loan and Security Agreement] 
 SCHEDULE A TO 

 AMENDMENT NO. 3 TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 Revolving Loan Priority Collateral 
 The term “Revolving Loan Priority Collateral” shall mean all of the following property now owned or at any time hereafter acquired by a Borrower or Guarantor,
in which Borrower or Guarantor now has or at any time in the future may acquire any right, title or interests: 
 (a) all present and future
rights of each Borrower and Guarantor to payment of a monetary obligation, whether or not earned by performance, which is not evidenced by chattel paper or an instrument, and that (i) is for Inventory that has been or is to be sold, leased,
licensed, assigned, or otherwise disposed of, (ii) is for services rendered or to be rendered, or (iii) arises out of the use of a credit or charge card or information contained on or for use with the card (such assets described in this
paragraph (a) being referred to herein as “Accounts”); 
 (b) all of each Borrower’s and Guarantor’s now owned and
hereafter existing or acquired goods, wherever located, which (i) are held by Borrower or Guarantor for sale or lease in the ordinary course of business or to be furnished under a contract of service in the ordinary course of business; or
(ii) consist of raw materials, work in process, finished goods or materials used or consumed in its business (such assets described in this paragraph (b) being referred to herein as “Inventory”); 
 (c) all real property, including leasehold interests, together with all buildings, structures, and other improvements located thereon and all licenses,
easements and appurtenances relating thereto, wherever located, and any fixtures or equipment, such as pumps, pipes, plumbing, cleaning, call and sprinkler systems, fire extinguishing apparatuses and equipment, heating, ventilating, plumbing
incinerating, electrical, air conditioning and air cooling equipment and systems, pollution control equipment, security systems, disposals, water, gas, electrical, storm and sanitary sewer facilities, utility lines and equipment, all water tanks,
water supply, water power sites, fuel stations, fuel tanks, fuel supply, generators, UPS power, racks, HVAC, boilers, water heaters, light fixtures, ceiling and exhaust fans, and all other structures, together with all accessions, appurtenances,
additions, replacements, betterments and substitutions for any of the foregoing; 
 (d) all chattel paper (including all tangible and
electronic chattel paper) arising in connection with or related to any of the Accounts, Inventory or other Revolving Loan Priority Collateral, but not arising in connection with or related to the sale, license or other disposition of any
Intellectual Property (other than to the extent affixed to any Inventory or part of any Inventory and consistent with Borrowers’ and Guarantors’ past practices); 
 (e) all instruments (including all promissory notes) arising in connection with or related to any of the Revolving Loan Priority Collateral described in
clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A, but not arising in connection with or related to the sale, license or other disposition of any Intellectual Property (other than to the extent affixed to any Inventory or part
of any Inventory and consistent with Borrowers’ and Guarantors’ past practices); 

 (f) all documents arising in connection with or related to any of the Revolving Loan Priority Collateral
described in clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A, but not arising in connection with or related to the sale, license or other disposition of any Intellectual Property as defined in this Schedule A (other than to
the extent affixed to any Inventory or part of any Inventory and consistent with Borrowers’ and Guarantors’ past practices); 
 (g)
all deposit accounts and investment accounts used in connection with or related to any of the Accounts, Inventory or other Revolving Loan Priority Collateral (but excluding the Term Loan Collateral Account as defined below); 
 (h) all letters of credit, banker’s acceptances and similar instruments and including all letter of credit rights arising in connection with or
related to any of the Revolving Loan Priority Collateral described in clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A, but not arising in connection with or related to the sale, license or other disposition of any
Intellectual Property (other than to the extent affixed to any Inventory or part of any Inventory and consistent with Borrowers’ and Guarantors’ past practices); 
 (i) all supporting obligations and all present and future liens, security interests, rights, remedies, title and interest in, to and in respect of any of
the Revolving Loan Priority Collateral described in clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A, but not arising in connection with or related to the sale, license or other disposition of any Intellectual Property (other
than to the extent affixed to or part of any Inventory), including (i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit and credit and other insurance related to such Revolving Loan Priority
Collateral; (ii) rights of stoppage in transit, replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lienor or secured party; (iii) goods described in invoices, documents, contracts or instruments with
respect to, or otherwise representing or evidencing, other Revolving Loan Priority Collateral, including returned, repossessed and reclaimed goods; and (iv) deposits by and property of account debtors or other persons securing the obligations
of account debtors; 
 (j) all investment property (including securities, whether certificated or uncertificated, securities accounts,
security entitlements, commodity contracts or commodity accounts, but excluding Pledged Stock as defined below and excluding investment property in the Term Loan Collateral Account as defined below) and all monies, credit balances, deposits and
other property of Borrower or Guarantor now or hereafter held or received by or in transit to Agent or any Lender or its affiliates or at any other depository or other institution from or for the account of a Borrower or Guarantor, whether for
safekeeping, pledge, custody, transmission, collection or otherwise; 
 (k) all commercial tort claims arising from or in connection with any
of the Revolving Loan Priority Collateral described in clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A, but not arising in connection with or related to the sale, license or other disposition of any Intellectual Property
(other than to the extent affixed to any Inventory or part of any Inventory and consistent with Borrowers’ and Guarantors’ past practices); 

 (l) to the extent not otherwise described above, (i) all interest, fees, late charges, penalties,
collection fees and other amounts due or to become due or otherwise payable in connection with any Account; (ii) all payment intangibles of a Borrower or Guarantor; (iii) letters of credit, indemnities, guarantees, security or other
deposits and proceeds thereof issued payable to a Borrower or Guarantor or otherwise in favor of or delivered to a Borrower or Guarantor in connection with any Account; (iv) all other accounts, contract rights, chattel paper, instruments,
notes, general intangibles and other forms of obligations owing to a Borrower or Guarantor from the sale, lease or other disposition of any of the Revolving Loan Priority Collateral described in clauses (a), (b), (c), (d), (g), (j) or
(l) of this Schedule A, licensing of any other Revolving Loan Priority Collateral, rendition of services or otherwise relating to any Accounts, Inventory or other Revolving Loan Priority Collateral (including, without limitation, choses in
action, causes of action, or other rights and claims of a Borrower or Guarantor against carriers, shippers, processors, warehouses, bailees, custom brokers, freight forwarders, or other third parties at any time in possession or control of, or
using, any of the other Revolving Loan Priority Collateral or any sellers of any other Revolving Loan Priority Collateral and refunds of sales, use or excise taxes arising from the sale or other disposition of Inventory or other Revolving Loan
Priority Collateral); 
 (m) all books of account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of
lading and other shipping evidence, statements, correspondence, memoranda, credit files and other data relating to any of the Revolving Loan Priority Collateral described in clauses (a), (b), (c), (d), (g), (j) or (l) of this Schedule A,
or any account debtor (including customer lists), together with the tapes, disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the foregoing are stored (including any rights of a
Borrower or Guarantor with respect to the foregoing maintained with or by any other person); and 
 (n) all products and proceeds of the
foregoing, in any form, including insurance proceeds and all claims against third parties for loss or damage to or destruction of or other involuntary conversion of any kind or nature of any or all of the other Revolving Loan Priority Collateral

 For purposes of this Schedule A, the following terms shall have the meanings given to them below: 
 (i) “Intellectual Property” shall have the meaning given to such term in the Term Loan Intercreditor Agreement. 
 (ii) “Pledged Stock” shall mean Collateral consisting of shares of capital stock of a Borrower, Guarantor or Subsidiary of a Borrower or
Guarantor (whether denominated as common stock or preferred stock), beneficial, partnership or membership interests, participations or other equivalents (regardless of how designated) of or in a Borrower, Guarantor or Subsidiary of a Borrower or
Guarantor and all securities convertible into or exchangeable for any of the foregoing and all warrants, options or other rights to purchase or subscribe for any of the foregoing, whether or not presently convertible, exchangeable or exercisable.

 (iii) “Term Loan Collateral Account” shall mean the investment account which is a restricted
account maintained by Operating with Term Loan Agent, an affiliate of Term Loan Agent or at a financial institution otherwise designated by Term Loan Agent into which Parent or Operating shall have deposited (a) proceeds of the Term Loan Credit
Facility in an amount not less than the amount necessary to prepay or redeem any 9 3/4% Notes that shall remain
outstanding immediately following the Term Loan Funding Date and (b) such other amounts to be utilized for such purposes as expressly permitted under the Term Loan Intercreditor Agreement; and which investment account is established and used
solely for the purpose of holding such proceeds and such other amounts and at all times shall be subject to the perfected security interest of Term Loan Agent.Amended and Restated Credit Agreement dated as of May 15, 2006

 Exhibit 10.2 
 EXECUTION VERSION 
 AMENDED AND RESTATED CREDIT AGREEMENT (as amended, supplemented or restated from
time to time, this “Agreement”), dated as of May 15, 2006 by and among TPG-MD INVESTMENT, LLC, a Delaware limited liability company (the “Lender”), J. CREW OPERATING CORP., a Delaware corporation (the
“Borrower”), J. CREW GROUP, INC., a Delaware corporation (the “Parent”), and each of GRACE HOLMES INC., a Delaware corporation doing business as J. Crew Retail, H.F.D. NO. 55, INC., a Delaware corporation doing
business as J. Crew Factory, J. CREW, INC., a New Jersey corporation, and J. CREW INTERNATIONAL, INC., a Delaware corporation, as guarantors (each, a “Guarantor”) and together with any subsidiary that executes a Note Guarantee (the
“Guarantors”). 
 WHEREAS, the Borrower, the Lender, the Parent and the Guarantors were parties to that certain Credit
Agreement, dated as of February 4, 2003, as amended by the Amendment No. 1 to Credit Agreement dated as of November 21, 2004 (the “Original Credit Agreement”); 
 WHEREAS, the each of the parties thereto and hereto desire to amend and restate the Original Credit Agreement in its entirety on the terms and conditions
set forth herein; 
 NOW, THEREFORE, the Lender, the Borrower, the Parent and the Guarantors hereby agree as follows: 
 ARTICLE I 
 THE LOANS 
 SECTION 1.01. The Loans. Subject to the terms and conditions of this Agreement, the Lender agrees to make (a) a Tranche A loan (the
“Tranche A Loan”) to the Borrower on the first Business Day following the first date on which each of the conditions set forth in Section 4.01 has been satisfied (the “Funding Date”) in an aggregate principal
amount of $10,000,000.00 (the “Tranche A Loan Principal Amount”) and (b) a Tranche B loan (the “Tranche B Loan” and, together with the Tranche A Loan, the “Loans”) to the Borrower on the
Funding Date in an aggregate principal amount of $10,000,000.00 (the “Tranche B Loan Principal Amount” and, together with the Tranche A Loan Principal Amount, the “Principal Amount”). 
 SECTION 1.02. The Notes. The obligation of the Borrower to repay the Tranche A Loan shall be evidenced by a promissory note of the Borrower,
substantially in the form of Exhibit A (the “Tranche A Note”), payable to the order of the Lender. The obligation of the Borrower to repay the Tranche B Loan shall be evidenced by a promissory note of the Borrower,
substantially in the form of Exhibit B (the “Tranche B Note” and, together with the Tranche A Note, the “Notes”), payable to the order of the Lender. The Notes shall be dated the Funding Date and shall mature
on the Maturity Date (as hereinafter defined). Each of the Tranche A Note and the Tranche B Note shall have an executed Note Guarantee from the Guarantors substantially in the form of Exhibit C (the “Note Guarantee”) attached
thereto. The Principal Amount of the Loans, the Funding Date, the payment of principal with respect thereto, and the unpaid interest accrued on the Loans, shall be determined from the records of the Lender, which records shall be presumptively
conclusive as to the accuracy of such information. 

 SECTION 1.03. Procedure for the Loans. The Principal Amount of the Loans shall be made available
to the Borrower in immediately available funds on the Funding Date to an account designated by the Borrower. 
 SECTION 1.04. Method of
Payment. 
 (a) The payment or prepayment by the Borrower of the principal amount of and unpaid interest accrued on the Loans shall be
made to the Lender in lawful money of the United States and in immediately available funds, to an account designated by the Lender. 
 (b)
Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the
computation of payment of interest or fees, as the case may be; provided, however, if such extension would cause payment of interest on or principal of the Loans to be made in the next succeeding calendar month, such payment shall be made on the
next preceding Business Day. 
 SECTION 1.05. Interest. The Loans shall bear interest on the Principal Amount thereof at a fixed rate
per annum equal 5.0% (the “Interest Rate”). 
 SECTION 1.06. Capitalization of Interest. Interest on
the Loans shall be payable semi-annually in arrears on each January 31 and July 31 (each, an “Interest Payment Date”), commencing on July 31, 2003. Interest payable on the Loans on any Interest Payment Date, shall
compound and be capitalized and added to the principal amount of the Loans on each Interest Payment Date, until the principal amount of the Loans has been repaid or prepaid, and shall be due and payable on the date of repayment or prepayment, as
applicable, of the unpaid principal amount of the Loans. For the avoidance of doubt, the compounding and capitalization of interest as aforesaid shall not constitute a default for purposes of Section 5.01(a) until such interest shall fail to be
paid on the date of such repayment or prepayment, as applicable. 
 SECTION 1.07. Computation of Interest. Interest on the Loans shall
be calculated on the basis of a 365-day year for the actual number of days elapsed. 
 SECTION 1.08. Post Maturity Interest. After the
Maturity Date or the date on which a Loan shall otherwise become due and payable, such Loan shall bear interest, payable on demand, at a rate per annum (on the basis of a 365-day year for the actual number of days elapsed) equal to the
sum of (a) the Interest Rate and (b) 2.0%. 
 SECTION 1.09. Illegality. If the Lender determines at any time that any law or
regulation or any change therein or in the interpretation or application thereof makes or will make it unlawful for the Lender to maintain the Loans or to claim or receive any amount payable to it hereunder, the Lender shall give notice of such
determination to the Borrower, whereupon the obligations of the Lender hereunder shall terminate. In such event, the Borrower shall prepay the Loans by paying the outstanding principal amount of and unpaid interest accrued on the Notes within five
Business Days after the date such notice is given (or on such earlier date as the Lender determines is necessary in order to enable it to comply with such law or regulation or change). 
  

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 SECTION 1.10. Withholding or Deduction; Gross-Up. 
 (a) Each payment by the Borrower under this Agreement or under the Notes shall, except as required by law, be made without withholding or deduction for or
on account of any present or future taxes, levies, imposts, duties, charges, assessments or fees of any nature (including interest, penalties and additions thereto) that are imposed by any government or other taxing authority (collectively,
“Taxes”) from or through which the Borrower makes payment hereunder. If any Taxes are required to be withheld or deducted from any such payment, the Borrower shall pay such additional amounts as may be necessary to ensure that the
net amount actually received by the Lender after such withholding or deduction is equal to the amount that the Lender would have received had no such withholding or deduction been required, provided, however, that no such additional
amounts shall be payable in respect of any Taxes imposed on the net income of the Lender and franchise taxes imposed on the Lender by the jurisdiction under the laws of which the Lender is organized or has its principal place of business.

 (b) The Borrower shall pay all Taxes referred to in Section 1.10(a) before penalties are payable or interest accrues thereon, but if
any such penalties are payable or interest accrues, the Borrower shall make payment thereof when due to the appropriate governmental authority within 30 days after each such payment of Taxes, and the Borrower shall deliver to the Lender an official
receipt or a certified copy thereof evidencing such payment. 
 (c) The Lender agrees to comply with any certification, identification,
information, documentation or other reporting requirement if (i) such compliance is required by law, regulation, administrative practice or an applicable treaty as a precondition to exemption from, or reduction in the rate of, deduction or
withholding of any Taxes for which Borrower is required to pay additional amounts pursuant to Section 1.10(a) and (ii) at least 30 days prior to the first payment date with respect to which the Borrower shall apply this paragraph (c), the
Borrower shall have notified the Lender that the Lender will be required to comply with such requirement, provided, however, that the exclusion set forth in this paragraph (c) shall not apply in respect of any certification,
identification, information, documentation or other reporting requirement if such requirement would be materially more onerous, in form, in procedure or in the substance of information disclosed, to the Lender than comparable information or other
reporting requirements imposed under U.S. tax law, regulation and administrative practice (such as IRS Forms W-8BEN and W-9). 
 (d) The
Borrower shall pay any present or future stamp, transfer or documentary taxes or any other excise or property taxes, charges or similar levies, and any penalties, additions to tax or interest due with respect thereto, that may be imposed by any
jurisdiction in connection with the execution, delivery or registration of this Agreement and the Notes or the filing, registration, recording or perfection of any security interest contemplated by this Agreement and the Notes. 
 (e) If the Lender pays any Taxes or other amounts that the Borrower is required to pay pursuant to this Section 1.10, Borrower shall indemnify it on
demand in full in the currency in which such Taxes or other amounts are paid together with interest thereon from and including the date of payment to but excluding the date of reimbursement at a rate per annum determined in accordance with
Section 1.08. 
  

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 SECTION 1.11. Increased Costs. The Borrower shall pay to the Lender on demand the amount the
Lender reasonably determines to be necessary to compensate it fully for all costs incurred and reductions in amounts received or receivable that are attributable to the Loans made hereunder or the performance by the Lender of its obligations under
this Agreement and that occur by reason of the adoption of, or any change in, any law, regulation or treaty or in the application or interpretation thereof or compliance by the Lender with any direction, requirement or request of any governmental
authority, including, without limitation, any such cost or reduction resulting from the imposition, amendment or change in the application or basis of any Taxes other than (a) any Taxes referred to in Section 1.10 or (ii) any Taxes
imposed on or measured by the net income of the Lender and imposed by the jurisdiction in which the Lender’s principal office is situated. 
 SECTION 1.12. Register. The Borrower shall maintain a register where the Notes are registered as to both the principal and any stated interest on the Notes and such principal and stated interest shall be paid only to the registered
holders of the Notes. The transfer of the Notes may be effected only by the surrender of the Notes to the Borrower and either the reissuance by the Borrower of the Notes to the new holder or the issuance by the Borrower of a new Note to the new
holder. 
 ARTICLE II 
 PREPAYMENTS

 SECTION 2.01. Prepayment at the Lender’s Option. 
 (a) Upon the occurrence of the Termination Event and subject to the EBITDA (as defined in the Revolving Loan Agreement) of the Parent and its subsidiaries for the immediately preceding twelve (12) consecutive
month period (treated as a single accounting period) ending on the last day of the most recent month prior to the Date of Termination (as defined in the Services Agreement) being not less than the amount set forth in Schedule 2.01 hereto with
respect to such period then ending, the Lender shall have the right to require the Borrower to prepay the Tranche B Loan, in whole but not in part, without premium or penalty. 
 (b) In the event the Lender elects to exercise such right, the Lender shall deliver written notice to the Borrower not less than five Business Days prior
to the first Prepayment Date occurring after the date of such notice. The Borrower shall prepay the principal of and interest on the Tranche B Loan on such Prepayment Date; provided that, on such Prepayment Date, (i) the Borrower has,
immediately prior to making such prepayment, Excess Availability (as defined in the Revolving Loan Agreement) of not less than $30.0 million and (ii) after giving effect to such prepayment, there shall exist no default or event of default under
any agreement, contract, instrument, indenture or mortgage of the Borrower or the Parent, including, without limitation, the Revolving Loan Agreement and the Term Loan Documents. 
 (c) In the event that the conditions specified in clauses (i) and (ii) of Section 2.01(b) above have not been satisfied, the principal of
and interest on the Tranche B Loan shall be due and payable on the first Prepayment Date immediately following the date on which the conditions specified in clauses (i) and (ii) of Section 2.01(b) above have been satisfied (but in no

  

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event later than the Maturity Date); provided that, if (A) the condition in clause (i) of Section 2.01(b) above is satisfied and
(B) a portion of the principal of and interest on the Tranche B Loan could be paid on the Prepayment Date set forth in the Lender’s written notice to the Borrower without causing the condition in clause (ii) of Section 2.01(b)
not to be satisfied, then (x) the maximum amount of such portion (but only if such maximum amount is equal to or greater than $1.0 million) shall be due and payable on the Prepayment Date set forth in such written notice and (y) the unpaid
amount of the Tranche B Loan shall become due and payable as provided in this Section 2.01(c), except that the $30.0 million of Excess Availability required pursuant to clause (i) of Section 2.01(b) above shall be reduced by the
amount of any prepayment made by the Borrower to the Lender pursuant to clause (x) of this Section 2.01(c). 
 SECTION 2.02.
Mandatory Prepayments. 
 (a) Upon the occurrence of a Change of Control, the Borrower shall prepay the Loans, in whole but not in
part, without premium or penalty. As promptly as practicable following any Change of Control, the Borrower shall deliver written notice to the Lender describing the transaction or transactions that constitute the Change of Control and specifying the
date of prepayment, which date shall be no earlier than 30 days and no later than 60 days from the date of such notice. The principal amount of the Loans shall be due and payable on the date specified in such notice, together with interest accrued
thereon to such date. 
 (b) Upon the consummation of an IPO, the Borrower shall prepay the Loans, in whole but not in part, without premium
or penalty. As promptly as practicable following any IPO, the Borrower shall deliver written notice to the Lender setting forth the date of consummation of such IPO and the date of prepayment, which date shall be no earlier than 30 days and no later
than 60 days from the date of the consummation of such IPO. The principal amount of the Loans shall be due and payable on the date specified in such notice, together with interest accrued thereon to such date, provided that, on the date of
such payment, the Borrower has, immediately prior to giving effect thereto, Excess Availability of not less than $30.0 million. 
 ARTICLE III

 REPRESENTATIONS AND WARRANTIES 
 SECTION 3.01. Representations and Warranties. 
 (a) The Borrower, the Parent and the Guarantors makes to the Lender as of the
date hereof and the Funding Date the representations and warranties of the Borrower, the Parent and the Guarantors contained in Section 8 (other than Section 8.14(d)) of the Congress Loan and Security Agreement. The terms of Section 8
(other than Section 8.14(d)) of the Congress Loan and Security Agreement are incorporated herein by reference (including the definitions of the terms used in such Article). 
 (b) Each of the Borrower and the Guarantors severally represents and warrants to the Lender as of the date hereof and the Funding Date that such Borrower
or Guarantor, as the case maybe, is Solvent (as defined in the Congress Loan and the Security Agreement) and will continue to be Solvent after the creation of the obligations hereunder and the Notes. 
  

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 ARTICLE IV 
 CONDITIONS TO FUNDING 
 SECTION 4.01. Conditions to Funding. The obligation of the Lender to make the
Loans is subject to: 
 (a) The Lender having received the Tranche A Note duly executed and delivered by the Borrower with a duly executed
Note Guarantee attached thereto. 
 (b) The Lender having received the Tranche B Note duly executed and delivered by the Borrower with a duly
executed Note Guarantee attached thereto. 
 (c) The Boards of Directors of Operating and Parent having received an opinion or opinions in
form and substance satisfactory to such Boards as to the fairness to the holders of the Subordinated Senior Notes, the holders of the Senior Discount Debentures and the shareholders (other than TPG) of Operating and Parent of the transactions
contemplated by this Agreement and the Notes from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing reasonably satisfactory to such Boards. 
 (d) The execution of an intercreditor agreement between the Lender and the Agent (as defined in the Congress Loan and Security Agreement) pursuant to
Section 9.09(i) of the Congress Loan and Security Agreement. 
 (e) There existing no Default or Event of Default (each as defined in
the Congress Loan and Security Agreement) under the Congress Loan and Security Agreement. 
 (f) Each of the representations and warranties
set forth in Section 3.01 being true and correct as of the date of this Agreement and as of the Funding Date. 
 ARTICLE V 
 EVENTS OF DEFAULT; ABSENCE OF RIGHT TO SET-OFF 
 SECTION 5.01. Events of Default. If any one or more of the following events (each, an “Event of Default”) shall have occurred and be continuing: 
 (a) if default shall be made in the due and punctual payment of the principal amount of or the interest on the Notes, when and as the same shall become
due and payable, whether on the applicable Interest Payment Date, the Maturity Date, by acceleration, by notice of prepayment or otherwise, and such default shall have continued for three Business Days; 
 (b) if any representation or warranty made by the Borrower, the Parent or any Guarantor in this Agreement shall prove to have been false or misleading in
any material respect on the date as of which made; 
 (c) if an involuntary case or other proceeding shall be commenced against the Borrower
or any Guarantor seeking liquidation, reorganization or other relief with respect to it or 

  

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its debts under any applicable Federal or State bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar law now or hereafter in
effect or seeking the appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and
unstayed, or an order or decree approving or ordering any of the foregoing shall be entered and continued unstayed and in effect, in any such event, for a period of 60 days; 
 (d) if the Borrower or any Guarantor shall commence a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar law or any other case or proceeding to be adjudicated a bankrupt or insolvent, or shall consent to the entry of a decree or order for relief in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or if it shall file a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or consent to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of it or any substantial part of its property, or shall make an assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or shall
take corporate action in furtherance of any such action; 
 (e) if the Borrower or any Guarantor shall default under any mortgage, indenture
or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for borrowed money by the Borrower or such Guarantor whether such Indebtedness now exists or is created after the date hereof, which default
(A) is caused by a failure to pay principal of such Indebtedness after giving effect to any grace period provided in such Indebtedness (a “Payment Default”) or (B) results in the acceleration of such Indebtedness prior to
its stated maturity and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated,
aggregates $20 million or more; or 
 (f) if the Borrower, the Parent or any Guarantor shall fail to observe any of its respective covenants
or agreements set forth herein or under any of the Notes or the Note Guarantees, as applicable (in each case, other than those described in paragraphs (a) or (b) of this Section 5.01), and such failure shall continue unremedied for
five Business Days following receipt of written notice from the Lender of such failure; 
 then and in any such event the Lender may at its option, exercised
by written notice given at any time (unless all Events of Default shall theretofore have been remedied) to the Borrower declare the Notes to be due and payable, whereupon the same shall mature and become payable, together with interest accrued
thereon, without the necessity of any presentment, demand, protest or further notice, all of which are hereby waived by the Borrower; provided that upon the happening of any event specified in paragraph (c) or (d) above, all amounts
owing hereunder and under the Notes shall automatically become immediately due and payable, all without declaration or any notice to the Borrower. 
  

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 SECTION 5.02. Absence of Right to Set-off. The Borrower hereby waives, and agrees that it will not
seek to avoid payment of the Notes in whole or in part by exercising, any right of set-off it may assert or possess whether created by contract, statute or otherwise. 
 ARTICLE VI 
 SUBORDINATION 
 SECTION 6.01. Subordination. The Borrower agrees, and the Lender agrees, that all Obligations evidenced by the Loans are, to the extent and in the manner provided in this Article VI, subordinated in right of
payment to the prior payment in full of all Senior Debt (whether outstanding on the Funding Date or created, incurred, assumed or guaranteed thereafter), and that the subordination is for the benefit of the holders of Senior Debt. 
 SECTION 6.02. Liquidation; Dissolution; Bankruptcy. 
 (a) The holders of Senior Debt will be entitled to receive payment in full in cash of all Obligations due in respect of such Senior Debt (including interest after the commencement of any bankruptcy proceeding at the
rate that would be applicable under the terms of the documentation governing the applicable Senior Debt and other reasonable fees, costs or charges provided for under the applicable Senior Debt which would accrue and become due under the terms of
the applicable Senior Debt but for the commencement of any case in bankruptcy, in each case as to such interest or other amounts whether or not allowed or allowable in whole or in part in such case) before the Lender will be entitled to receive any
payment (by setoff or otherwise) with respect to the Loans: 
 (i) in a liquidation or dissolution of the Borrower;

 (ii) in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to the Borrower or its
property; 
 (iii) in an assignment for the benefit of the Borrower’s creditors; or 
 (iv) in any marshaling of the Borrower’s assets and liabilities. 
 and, if any of the foregoing shall have occurred, until all Obligations with respect to Senior Debt are paid in full in cash, any payment or distribution to which the Lender would be entitled with respect to the Loans
shall be made to the holders of Senior Debt. 
 SECTION 6.03. Default On Designated Senior Debt. 
 (a) The Borrower shall not make any payment (by setoff or otherwise) in respect of the Loans if (i) a default in the payment of the principal or
premium, if any, or interest on any Designated Senior Debt occurs and is continuing beyond any applicable grace period or (ii) any other default occurs and is continuing with respect to Designated Senior Debt that permits holders of any
Designated Senior Debt to accelerate its maturity, and the Lender receives a notice of such default (a “Payment Blockage Notice”) from the holders of such Designated Senior Debt or any agent or trustee for such holders. Payments on
the Loans may and shall be 

  

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resumed (x) in the case of a payment default, upon the date on which such default is cured or waived and (y) in case of a nonpayment default, the
earlier of the date on which such nonpayment default is cured or waived or 179 days after the date on which the applicable Payment Blockage Notice is received, unless a payment default has occurred and is continuing (as a result of the maturity of
any Designated Senior Debt having been accelerated). No new period of payment blockage (other than for a payment default) may be commenced by the holders of any Designated Senior Debt or any agent or trustee for such holders unless and until
(A) 360 days have elapsed since the effectiveness of the immediately prior Payment Blockage Notice delivered by the holders of such Designated Debt or any agent or trustee for such holders and (B) all scheduled payments of principal,
premium, if any, and interest on the Loans that have come due have been paid in full in cash. No nonpayment default in respect of the applicable holder of the Designated Senior Debt that existed or was continuing on the date of delivery of any
Payment Blockage Notice in respect of the applicable holder of the Designated Senior Debt to the Lender shall be, or be made, the basis for a subsequent Payment Blockage Notice in respect of the applicable holder of the Designated Senior Debt unless
such default shall have been cured or waived for a period of not less than 90 days. 
 (b) Whenever the Borrower is prohibited from making
any payment in respect of the Loans, the Borrower also shall be prohibited from making, directly or indirectly, any payment of any kind on account of the purchase or other acquisition of the Loans. If the Lender receives any payment or distribution
that the Lender is not entitled to receive with respect to the Loans, the Lender shall be required to pay the same over to the holders of Designated Senior Debt, pro rata, or, in the event there are not any such holders, to the holders of Senior
Debt, or any representative of such holders under the indenture or other agreement (if any) pursuant to which such Designated Senior Debt or Senior Debt, as the case may be, may have been issued (the “Representative”). 

SECTION 6.04. Acceleration of Loans. If payment of the Loans is accelerated because of an Event of Default, the Borrower shall promptly notify
holders of Senior Debt of the acceleration. 
 SECTION 6.05. When Distribution Must Be Paid Over. 
 (a) In the event that the Lender receives any payment (including a payment by a Guarantor under its Note Guarantee) of any Obligations with respect to the
Loans at a time when the Lender has actual knowledge that such payment is prohibited by Section 6.03 hereof, such payment shall be held by the Lender, in trust for the benefit of, and shall be paid forthwith over and delivered, upon written
request, to, the holders of Designated Senior Debt, pari passu, or, in the event there are not any such holders, to the holders of Senior Debt, in each case as their interests may appear, or their respective Representative, as their respective
interests may appear, for application to the payment of all Obligations with respect to such Designated Senior Debt, pro rata, or such Senior Debt, as the case may be, remaining unpaid to the extent necessary to pay such Obligations in full in
accordance with their terms, after giving effect to any concurrent payment or distribution to or for the holders of such Designated Senior Debt or such Senior Debt, as the case may be. 
  

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 (b) With respect to the holders of Designated Senior Debt and Senior Debt, the Lender undertakes to
perform only such obligations on the part of the Lender as are specifically set forth in this Article VI, and no implied covenants or obligations with respect to the holders of Designated Senior Debt or Senior Debt shall be read into this Agreement
against the Lender. The Lender shall not be deemed to owe any fiduciary duty to the holders of Designated Senior Debt. 
 SECTION 6.06.
Notice by the Borrower. The Borrower shall promptly notify the Lender of any facts known to the Borrower that would cause a payment of any Obligations with respect to the Loans to violate this Article VI, but failure to give such notice shall
not affect the subordination of the Loans to Senior Debt as provided in this Article VI. 
 SECTION 6.07. Subrogation. After all
Senior Debt is paid in full in cash and all commitments to make loans under such Senior Debt have been terminated and until the Loans are paid in full, the Lender shall be subrogated (equally and ratably with all other Indebtedness pari passu with
the Loans) to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent that distributions otherwise payable to the Lender have been applied to the payment of Senior Debt. A distribution made under this
Article VI to holders of Senior Debt that otherwise would have been made to Lender is not, as between the Borrower and Lender, a payment by the Borrower on the Loans. 
 SECTION 6.08. Relative Rights. 
 (a) This Article VI defines the relative rights of the Lender and
holders of Senior Debt. Nothing in this Agreement shall: 
 (i) impair, as between the Borrower and the Lender, the
obligations of the Borrower, which are absolute and unconditional, to pay principal of and interest on the Loans in accordance with their terms; 
 (ii) affect the relative rights of the Lender and creditors of the Borrower other than their rights in relation to holders of Senior Debt; or 
 (iii) prevent the Lender from exercising its available remedies upon a Default or Event of Default, subject to the rights of holders of
Senior Debt to receive distributions and payments otherwise payable to the Lender. 
 (b) If the Borrower fails because of this Article VI to
pay principal of or interest on a Loan on the due date, the failure is still a Default or Event of Default. 
 SECTION 6.09. Subordination
May Not Be Impaired by the Borrower. No right of any holder of Senior Debt to enforce the subordination of the Indebtedness evidenced by the Loans shall be impaired by any act or failure to act by the Borrower, any Subsidiary of the Borrower,
the Lender or by the failure of the Borrower, any Subsidiary of the Borrower or the Lender to comply with this Agreement. 
  

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 SECTION 6.10. Distribution or Notice of Representative. 
 (a) Whenever a distribution is to be made or a notice given to holders of Designated Senior Debt or Senior Debt, as the case may be, the distribution may
be made and the notice given to the Representative of such holders. 
 (b) Upon any payment or distribution of assets of the Borrower
referred to in this Article VI, the Lender shall be entitled to rely upon any order or decree made by any court of competent jurisdiction or upon any certificate of such Representative or of the liquidating trustee or agent or other Person making
any distribution to the Lender for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other Indebtedness of the Borrower, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to this Article VI. 
 SECTION 6.11. Amendments. Any
amendment to the provisions of this Article VI shall require the consent of (i) the majority of the holders of the Designated Senior Debt outstanding under the Term Loan Documents, (ii) the majority of the holders of the Designated Senior
Debt outstanding under the Revolving Loan Documents and (iii) the majority of the holders of other Senior Debt, in each case if such amendment would adversely affect the rights of the holders of such Designated Senior Debt or such other Senior
Debt then outstanding (or any group or representative thereof authorized to give such consent). 
 SECTION 6.12. Reliance by Holders of
Senior Debt on Subordination Provisions. The Lender acknowledges and agrees that the foregoing subordination provisions are, and are intended to be an inducement and a consideration to each holder of any Senior Debt, whether such Senior Debt was
created or acquired before or after funding of the Loans, to acquire and continue to hold, or to continue to hold, such Senior Debt and such holder of such Senior Debt shall be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Debt. 
 ARTICLE VII 
 EXCHANGE RIGHT 
 SECTION 7.01. Exchange
Right. 
 (a) The Lender will have the right to exchange (the “Exchange Right”) the Loans into the shares of common stock
of Parent, par value $0.01 per share (“Common Stock”), on any Business Day (the “Exercise Date”) during the period commencing the Funding Date and ending one Business Day immediately preceding to the Maturity Date
(the “Exercise Period”). The Lender may exercise the Exchange Right with respect to the Tranche A Loan and the Tranche B Loan separately; provided, however, if the Lender elects to exercise the Exchange Right with
respect to the Tranche A Loan or the Tranche B Loan, as the case may be, the Lender must exercise the Exchange Right with respect to the entire principal amount thereof and the unpaid interest accrued thereon. 
 (b) Upon the exercise of the Exchange Right, the number of shares of Common Stock to be issued to the Lender will be determined by dividing the aggregate
principal amount 

  

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of and the unpaid interest accrued on the Tranche A Note and/or the Tranche B Note as of the Exercise Date divided by $6.82 (the “Exercise
Price”), rounding the resulting number down to the nearest whole number of shares of the Common Stock. The Exercise Price is subject to adjustment pursuant to the provisions of Section 7.02, in which case, the “Exercise
Price” shall be the Exercise Price so adjusted. 
 (c) In order to exercise the Exchange Right, the Lender shall deliver written
notice to the Parent setting forth the aggregate principal amount of and the unpaid interest accrued on the Tranche A Note and/or the Tranche B Note as of the Exercise Date, the Exercise Price and the number of shares of Common Stock to be issued by
the Parent upon the exercise of the Exchange Right, together with the Tranche A Note and/or the Tranche B Note, or, in lieu thereof, a lost Note affidavit together with an indemnity against third party claims reasonably satisfactory to Parent.

 (d) Upon receipt of such notice and the Tranche A Note and/or the Tranche B Note (or, if applicable, a lost Note affidavit and indemnity
as described in Section 7.01(c)), the Parent shall deliver to the Lender the share certificates evidencing such number of shares of the Common Stock relating to the exercise of the Exchange Right, in accordance to the delivery instruction of
the Lender. 
 (e) Unless exercised during the Exercise Period, the Exchange Right shall automatically expire and be void on the Maturity
Date, and all rights of the Lender under this Agreement with respect thereto shall cease. 
 SECTION 7.02. Adjustment of Exercise
Price. 
 The Exercise Price will be subject to adjustment upon the occurrence of the following events: 
 (a) If the Parent declares a dividend or makes a distribution on the Common Stock payable in shares of its Capital Stock (whether shares of Common Stock
or of Capital Stock of any other class), then the Exercise Price in effect at the opening of business on the date following the date fixed for the determination of holders of Common Stock entitled to receive such dividend or other distribution (the
“Record Date”) shall be reduced by multiplying such Exercise Price by a fraction, the numerator which will be the number of shares of Common Stock outstanding at the close of business on the Record Date and the denominator of which
will be the sum of (x) the number of shares of Common Stock outstanding at the close of business on the Record Date and (y) the total number of shares constituting such dividend or other distribution. 
 (b) If the Parent (x) subdivides shares of Common Stock into a greater number of shares, (y) combines its outstanding Common Stock into a
smaller number of shares or (z) issues by reclassification of the Common Stock (including any such reclassification in connection with a consolidation or merger in which the Parent is the continuing corporation) other securities of the Parent;
then the Exercise Price in effect immediately prior to the date on which such corporate action becomes effective will be increased or decreased (as the case may be) to a price obtained by multiplying such Exercise Price by a fraction, the numerator
of which will be the 

  

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number of shares of Common Stock outstanding (exclusive of any treasury shares) on the date of, and immediately prior to, the date on which such corporate
action becomes effective, and the denominator of which will be the number of shares of Common Stock outstanding (exclusive of any treasury shares) immediately after the date on which such corporate action becomes effective. 
 ARTICLE VIII 
 NOTE GUARANTEES 
 SECTION 8.01. Note Guarantees. Subject to Section 8.04, each of the Guarantors hereby, jointly and severally, unconditionally guarantees to
the Lender and its successors and assigns, irrespective of the validity and enforceability of this Agreement, the Notes and the obligations of the Borrower hereunder and thereunder, that: (a) the principal of and the interest on the Notes will
be promptly paid in full when due, subject to any applicable grace period, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal and interest on any interest, if any, on the Notes, and all other payment
obligations of the Borrower to the Lender hereunder or thereunder will be promptly paid in full and performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or
any of such other obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at stated maturity, by acceleration, redemption or
otherwise. An Event of Default under this Agreement or the Notes shall constitute an event of default under the Note Guarantees, and shall entitle the Lender to accelerate the obligations of the Guarantors hereunder in the same manner and to the
same extent as the obligations of the Borrower. The Guarantors hereby agree that their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Agreement, the absence of any action
to enforce the same, any waiver or consent by the Lender with respect to any provisions hereof or thereof, the recovery of any judgment against the Borrower, any action to enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a Guarantor. The parties agree that the Note Guarantees are guarantees of payment and not of collection. Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Borrower, any right to require a proceeding first against the Borrower, protest, notice and all demands whatsoever and covenants that the Note Guarantees will not be discharged except by complete
performance of the obligations contained in the Notes and this Agreement. If the Lender is required by any court or otherwise to return to the Borrower, the Guarantors, or liquidator or other similar official acting in relation to either the
Borrower or the Guarantors, any amount paid to the Lender, the Note Guarantees, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor agrees that it shall not be entitled to, and hereby waives, any right
of subrogation in relation to the Lender in respect of any obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Lender, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article V for the purposes of the Note Guarantees, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any declaration of acceleration of such obligations as provided in Article V, such obligations 

  

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(whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of the Note Guarantees. The Guarantors shall have
the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Lender under the Note Guarantees. 
 SECTION 8.02. Guarantors May Consolidate, Etc. on Certain Terms. No Guarantor may consolidate with or merge with or into (whether or not such Guarantor is the surviving Person), another corporation, Person or
entity whether or not affiliated with such Guarantor unless, subject to the provisions of the following paragraph, (a) the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) assumes all the obligations
of such Guarantor pursuant to a supplemental agreement in form and substance reasonably satisfactory to the Lender, under this Agreement and the Note Guarantees; and (b) immediately after giving effect to such transaction, no Default or Event
of Default exists. 
 SECTION 8.03. Release Following Sale of Assets, Merger, Sale of Capital Stock Etc. In the event (a) of a
sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the Capital Stock of any Guarantor, or (b) that the Borrower designates a Guarantor to be an
Unrestricted Subsidiary (as defined in the Credit and Guaranty Agreement), or such Guarantor ceases to be a Subsidiary of the Borrower, then such Guarantor (in the event of a sale or other disposition, by way of such a merger, consolidation or
otherwise, of all of the Capital Stock of such Guarantor or any such designation) or the entity acquiring the property (in the event of a sale or other disposition of all of the assets of such Guarantor) shall be released and relieved of any
obligations under this Agreement and its Note Guarantees upon the assumption provided for in clause (a) of Section 8.02. 
 SECTION
8.04. Limitation on Guarantor Liability. For purposes hereof, each Guarantor’s liability shall be limited to the lesser of (a) the aggregate amount of the obligations of the Borrower under the Notes and this Agreement and
(b) the amount, if any, which would not have (i) rendered such Guarantor “insolvent” (as such term is defined in the Bankruptcy Law and in the Debtor and Creditor Law of the State of New York) or (ii) left such Guarantor
with unreasonably small capital at the time its Note Guarantees of the Notes was entered into; provided that, it will be a presumption in any lawsuit or other proceeding in which a Guarantor is a party that the amount guaranteed pursuant to
the Note Guarantees is the amount set forth in clause (a) above unless any creditor, or representative of creditors of such Guarantor, or debtor-in-possession or trustee in bankruptcy of the Guarantor, otherwise proves in such a lawsuit that
the aggregate liability of the Guarantor is the amount set forth in clause (b) above. In making any determination as to solvency or sufficiency of capital of a Guarantor in accordance with the previous sentence, the right of such Guarantor to
contribution from other Guarantors, and any other rights such Guarantor may have, contractual or otherwise, shall be taken into account. 
 ARTICLE IX 
 MISCELLANEOUS 
 SECTION 9.01. Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings. 
  

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 “Affiliate” means, with respect to any Person, any other Person directly or indirectly
Controlling or Controlled by or under direct or indirect common Control with such Person. 
 “Agreement” has the meaning
specified in the preamble. 
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors. 
 “Borrower” has the meaning specified in the preamble. 
 “Business Day” means any day on which commercial banks are open for domestic and international business (including dealings in dollar
deposits) in New York City. 
 “Capital Lease Obligation” means, at the time any determination thereof is to be made, the
amount of the liability in respect of a capital lease that would at such time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent or any
other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 
 “Capital Stock” means, (i) in the case of a corporation, corporate stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited liability company, partnership (whether general or limited) or membership interests and (iv) any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any
right of participation with Capital Stock. 
 “Change of Control” means the occurrence of any of the following: 

(i) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of the Borrower and its Subsidiaries taken as a whole to any “person” (as such term is used in Section 13(d)(3) of the Exchange Act),
other than Permitted Holders; 
 (ii) the adoption of a plan relating to the liquidation or dissolution of the Borrower; or

 (iii) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which
is that any “person” (as defined above), other than the Permitted Holders, becomes the “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of 50% or more of
the Voting Securities of the Borrower (measured by voting power rather than number of shares); provided, however, for purposes of this clause (iii), each Person will be deemed to beneficially own any Voting Securities of another Person
held by one or more of its Subsidiaries. 
  

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 “Common Stock” has the meaning specified in Section 7.01. 
 “Congress Loan and Security Agreement” means the Loan and Security Agreement dated December 23, 2002, by and among the Borrower and
other borrowers named therein, the guarantors named therein, the lenders named therein and the arranger and the agent named therein. 
 “Control” when used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of Voting
Securities, by contract or otherwise. 
 “Credit and Guaranty Agreement” means the Credit and Guaranty Agreement dated as of
the Term Loan Closing Date, by and among Borrower as borrower, Parent, and the Term Loan Guarantors, various lenders party thereto, GSCP and Bear Sterns &Co. Inc., as joint lead arrangers and joint bookrunners, GSCP, as administrative agent and
collateral agent, Bear Sterns Corporate Lending Inc., as syndication agent and Wachovia Bank, National Association, as documentation agent, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced. 
 “Credit Facilities” means one or more debt facilities (including, without limitation, the Revolving Loan
Documents and the Term Loan Documents) or commercial paper facilities, in each case, with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit or any other Indebtedness, in each case, as amended, restated, modified, renewed, refunded, replaced (whether upon or after
termination or otherwise) or refinanced (including by means of sales of debt securities and including any amendment, restatement, modification, renewal, refunding, replacement or refinancing that increases the amount borrowed thereunder or extends
the maturity thereof) in whole or in part from time to time, whether or not by the same or any other agent, lender or group of lenders. 
 “Designated Senior Debt” means (i) any Senior Debt outstanding under any Credit Facility and (ii) any other Senior Debt permitted under the Revolving Loan Agreement and the Credit and Guaranty Agreement the
principal amount of which is $25.0 million or more and that has been designated as “Designated Senior Debt.” 
 “Event of
Default” has the meaning specified in Section 5.01. 
 “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 “Executive Officer” means any of the Chief Executive Officer, President, Chief Operating Officer, Chief
Financial Officer, Controller, Chief Administrative Officer, Principal Accounting Officer, Treasurer or General Counsel or any Executive Vice President of the Borrower. 
 “Exercise Date” has the meaning specified in Section 7.01. 
 “Exercise
Period” has the meaning specified in Section 7.01. 
  

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 “Exercise Price” has the meaning specified in Section 7.01. 
 “Funding Date” has the meaning specified in Section 1.01. 
 “GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting
profession, which are in effect on the Funding Date. 
 “GSCP” means Goldman Sachs Credit Partners L.P. 
 “Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business,
direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise). 
 “Guarantor” has the meanings specified in the preamble. 
 “Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under (i) interest rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements; (ii) other agreements or arrangements designed to manage interest rates or interest rate risk; and (iii) other agreements or arrangements designed to protect such
Person against fluctuations in currency exchange rates or commodity prices. 
 “Indebtedness” means, with respect to any
specified Person, the principal and premium (if any) of any indebtedness of such Person (excluding accrued expenses and trade payables), whether or not contingent: 
 (i) in respect of borrowed money; 
 (ii) evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) (other than letters of credit issued in respect of trade payables); 

(iii) in respect of banker’s acceptances; 
 (iv) representing Capital Lease Obligations; 
 (v) representing the balance deferred and unpaid of the purchase price of any property or services due more than twelve months after such property is acquired or such services are completed (except any such balance
that constitutes a trade payable or similar obligation to a trade creditor); or 
  

 17 

 (vi) representing the net obligations under any Hedging Obligations, 
 if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person. 
 “Intercreditor Agreement” means the Intercreditor Agreement, dated as of the Term Loan Closing Date, by and among GSCP as administrative agent and collateral agent, the administrative agent and the collateral agent under
the Revolving Loan Agreement, the Borrower and the Term Loan Guarantors, and as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 “Interest Payment Date” has the meaning specified in Section 2.02. 
 “Interest Rate” has the meaning specified in Section 2.01. 
 “IPO” means a bona fide underwritten initial public offering of Common Stock of the Parent as a direct result of which at least
$50,000,000 of proceeds, net of all investment banking, legal, accounting and other fees and commissions, costs, expenses and taxes paid or payable as a result thereof or in connection with such initial public offering, is received by Parent.

 “Lender” has the meaning specified in the preamble. 
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of
such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, and any option or other agreement to sell or give a security
interest therein). 
 “Loans” has the meaning specified in Section 1.01. 
 “Maturity Date” means the fifth anniversary of the Funding Date, or if such day is not a Business Day, the next succeeding day that is a
Business Day. 
 “Notes” has the meaning specified in Section 1.02. 
 “Note Guarantee” has the meaning specified in Section 1.02. 
 “Obligations” means, with respect to any Indebtedness, any principal, interest, penalties, fees, indemnifications, reimbursements,
damages, costs, expenses and other liabilities payable under the documentation governing any Indebtedness, including the payment of interest at the rate provided in such documentation that would be applicable and other reasonable fees, costs or
charges which would accrue and become due but for the commencement of any case in bankruptcy, in each case as to such interest or other amounts whether or not allowed or allowable in whole or in part in such case. 
  

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 “Payment Blockage Notice” has the meaning specified in Section 6.03(a). 

“Payment Default” has the meaning specified in Section 5.01(e). 
 “Parent” has the meaning specified in the preamble. 
 “Permitted Holders” means, collectively, (i) TPG Partners II, L.P. and its Affiliates, (ii) Millard S. Drexler and his immediate family members and (iii) trusts for the benefit of any
of the foregoing Persons, or any of their heirs, executors, successors or legal representatives. 
 “Person” means any
individual, partnership, joint venture, corporation, limited liability company, association, trust or any other entity or any government or political subdivision or an agency, department or instrumentality thereof. 
 “Pledge and Security Agreement (Term Loan)” means the Pledge and Security Agreement dated as of the Term Loan Closing Date by and among
Borrower and each guarantor, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 “Prepayment Date” means each of January 16, April 16, July 16 and October 16 of each year. 
 “Principal Amount” has the meaning specified in Section 1.01. 
 “Record Date” has the
meaning specified in Section 7.02. 
 “Representative” has the meaning specified in Section 6.03(b). 

“Revolving Loan Agreement” means the Amended and Restated Loan and Security Agreement, dated December 23, 2004, as amended as of
October 10, 2005 by the First Amendment to the Amended and Restated Loan and Security Agreement, as amended as of the date hereof by Amendment No.2 to the Amended and Restated Loan and Security Agreement and as amended as of the date hereof by
Amendment No.3 to the Amended and Restated Loan and Security Agreement, by and among the Borrower, the Parent, Guarantors, the lenders party thereto, Wachovia, National Association, as administrative agent, Congress Financial Corporation, as
collateral agent and Bank of America, N.A., as syndication agent, and certain other parties, as the same may be amended, supplemented or modified from time to time in accordance with the Intercreditor Agreement. 
 “Revolving Loan Documents” means collectively the following (as the same may now or hereafter exist or may hereafter be amended,
modified, supplemented, extended, reviewed, restated or replaced) the Revolving Loan Agreement (including any loan notes and loan guarantees issued thereunder), the Intercreditor Agreement and all other agreements documents and instruments now or at
any time hereafter executed and/or delivered by the Borrower or any other person in connection therewith. 
  

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 “Senior Debt” means: 
 (i) all Indebtedness of the Borrower or any Guarantor outstanding under the Revolving Loan Documents or the Term Loan Documents (including
post-petition interest at the rate provided in the documentation with respect thereto, whether or not allowed as a claim in any bankruptcy proceeding) and all Hedging Obligations and Treasury Management Obligations with respect thereto; 

(ii) any other Indebtedness of the Borrower or any Guarantor permitted to be incurred under the terms of the Revolving Loan Documents
or the Term Loan Documents, unless the instrument under which such Indebtedness is incurred expressly provides that it is on a parity with or subordinated in right of payment to the Loans; and 
 (iii) all Obligations with respect to the foregoing. 
 Notwithstanding anything to the contrary in the foregoing, Senior Debt will not include (A) the Loans and the Note Guarantees, (B) any liability for federal, state, local or other taxes owed or owing by the
Borrower, (C) any Indebtedness of the Borrower to any of its Subsidiaries or other Affiliates, (D) any trade payables and (E) Indebtedness which is classified as non-recourse in accordance with GAAP or any unsecured claim arising in
respect thereof by reason of the application of Section 1111(b)(1) of the Bankruptcy Law. 
 “Senior Discount
Debentures” means Parent’s 13 1/8% Senior Discount Debentures due 2008. 
 “Services Agreement” means the Services Agreement, dated as of January 24, 2003, among the Parent, the Borrower, Millard S.
Drexler, Inc. and Millard S. Drexler. 
 “Stated Maturity” means, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the Effective Date, and shall not include any contingent obligations to repay,
redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
 “Subsidiary” means, with respect to any specified Person, (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard
to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association
or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and (ii) any partnership (A) the sole general partner
or the managing general partner of which is such Person or a Subsidiary of such Person or (B) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 
  

 20 

 “Taxes” has the meaning specified in Section 1.10. 
 “Termination Event” means a termination of the Services (as defined in the Services Agreement) by the Borrower or the Parent without
Cause (as defined in the Services Agreement), or a termination of the Services by Millard S. Drexler or Millard S. Drexler, Inc., in either case, for Good Reason (as defined in the Services Agreement). 
 “Term Loan Closing Date” shall mean the date of the execution of the Credit and Guaranty Agreement. 
 “Term Loan Documents” means collectively the following (as the same may now or hereafter exist or may hereafter be amended, modified,
supplemented, extended, reviewed, restated or replaced): (i) the Credit and Guaranty Agreement (including any loan notes and loan guarantees issued thereunder), (ii) the Pledge and Security Agreement (Term Loan) (and all supplemental
security agreements executed and registrations filed in conjunction therewith), (iv) the Intercreditor Agreement and (v) all other agreements, documents and instruments now or at any time hereafter executed and/or delivered by the Borrower
or any other person in connection therewith. 
 “Term Loan Guarantors” shall mean, collectively, the guarantors and any
subsidiary of the Borrower or its subsidiaries formed after the Term Loan Closing Date that guarantees the indebtedness under the Credit and Guaranty Agreement, to the extent required to do so under the terms thereof, and their respective successors
and assigns, sometimes being referred to individually as a “Term Loan Guarantor”. 
 “Tranche A Loan” has the
meaning specified in Section 1.01. 
 “Tranche A Loan Principal Amount” has the meaning specified in Section 1.01.

 “Tranche A Note” has the meaning specified in Section 1.02. 
 “Tranche B Loan” has the meaning specified in Section 1.01. 
 “Tranche B Loan Principal Amount” has the meaning specified in Section 1.01. 
 “Tranche B Note” has the meaning specified in Section 1.02. 
 “Treasury Management Obligations” means obligations under any agreement governing the provision of treasury or cash management services,
including deposit accounts, funds transfer, automated clearing house, zero balance accounts, returned check concentration, controlled disbursement, lock box, account reconciliation and reporting and trade finance services. Treasury Management
Obligations shall not constitute Indebtedness. 
 “Voting Securities” means securities or interests entitling the holder
thereof to vote or to designate directors or individuals performing a similar function. 
 SECTION 9.02. No Recourse. The obligations
of the Borrower hereunder are solely the obligations of the Borrower, and no recourse shall be had for the payment of any sum 

  

 21 

 
hereunder against any Affiliate, member, manager, officer, employee, attorney or agent of the Borrower other than as provided in Article VIII or in the Note
Guarantees. 
 SECTION 9.03. Expenses. The Borrower agrees, in the case of an Event of Default, to pay all reasonable expenses
incurred by the Lender in connection with the enforcement of any provision of this Agreement and the collection of the Notes. 
 SECTION
9.04. Cumulative Rights and No Waiver. Each and every right granted to the Lender hereunder or under any other document delivered hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be exercised
from time to time. No failure on the part of the Lender to exercise, and no delay in exercising, any right will operate as a waiver thereof, nor will any single or partial exercise of any right preclude any other or future exercise thereof or the
exercise of any other right. 
 SECTION 9.05. Notices. Any communication, demand or notice to be given hereunder or with respect to
the Notes will be duly given when delivered in writing or sent by tested telex to a party at its address as indicated below. 
 A
communication, demand or notice given pursuant to this Section 9.05 shall be addressed: 

					
		
		 	 If to the Lender, at

		
		 	         TPG-MD Investment, LLC
         c/o Corporation Trust Center
         1209 Orange Street
         Wilmington, County of New Castle, Delaware 19801

			
		 	 with a copy to:
	 	 MDJC LLC
 c/o Willkie Farr & Gallagher
 787 Seventh Avenue
 New York, New York 10019-6099
 Attention: Stephen Lindo, Esq.
 Telecopy: 212-728-8111

			
		 	 with a copy to:
	 	 Willkie Farr & Gallagher
 787 Seventh Avenue
 New York, New York 10019-6099
 Attention: Stephen Lindo, Esq.
 Telecopy: 212-728-8111

			
		 	 with a copy to:
	 	 TPG Partners II, L.P.
 TPG Parallel II, L.P.
 TPG Investors II, L.P.
 TPG 1999 Equity II, L.P.
 301 Commerce Street, Suite 3300
 Fort Worth, Texas 76102

  

 22 

					
			
		  		 	 Attention: David A. Spuria, Esq.
 Telecopy: 817-871-4010

			
		  	 with a copy to:
	 	 Cleary, Gottlieb, Steen & Hamilton
 One Liberty Plaza
 New York, New York 10006
 Attention: Sang Jin Han, Esq.
 Telecopy: 212-225-3999

		
		  	 If to the Borrower or to the Parent, at

		
		  	         J. Crew Group, Inc.
         770 Broadway
         New York, New York 10003
         Attention: Chief Financial Officer
         Telephone No.: 212-209-2545
  
 With a copy to:
  
         J. Crew
Group, Inc.
         770 Broadway
         New York, New York 10003
         Attention: General Counsel
         Telephone No.: 212-209-8254

 SECTION 9.06. Amendments. This Agreement or the terms of any Note may only be amended in a
writing executed by the parties hereto (which writing shall, in the case of the Lender, be executed by each member thereof). 
 SECTION 9.07.
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Borrower, the Parent and the Lender and their respective successors and assigns; provided, however, that (a) the Borrower or the Parent
may not assign any of its respective rights or delegate any of its respective obligations hereunder or under the Notes without the prior written consent of the Lender and (b) any assignment by the Lender of its rights or obligations hereunder
shall be made only pursuant to a writing signed by each member of the Lender. Any assignment purported to be made in contravention of this Section 9.07 shall be null and void. 
 SECTION 9.08. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 
 SECTION 9.09. Separability. In case any one or more of the provisions
contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

  

 23 

 SECTION 9.10. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, and all the counterparts shall together constitute one and the same instrument. 
 *             *             *

  

 24 

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

			
	 TPG-MD INVESTMENT, LLC
  
 By: TPG Partners II, L.P., its Member
 By: TPG GenPar II, L.P., as General Partner
 By: TPG Advisors II, Inc.

		
	 By:
	 	 /s/: John E. Viola

	 Name:
 Title:
	 	 John E. Viola
 Vice President

	
	 J. CREW OPERATING CORP.

		
	By:	 	 /s/: James S. Scully

	 Name:
 Title:
	 	 James S. Scully
 Executive Vice President and
 Chief Financial Officer

	
	 J. CREW GROUP, INC.

		
	 By:
	 	 /s/: James S. Scully

	 Name:  
 Title:
	 	 James S. Scully
 Executive Vice President and
 Chief Financial Officer

	
	 GRACE HOLMES, INC. d/b/a
 J. CREW RETAIL

		
	 By:
	 	 /s/: James S. Scully

	 Name:
 Title:
	 	 James S. Scully
 Executive Vice President and
 Chief Financial Officer

  
  
  
  
  

			
	 H.F.D. NO 55, INC. d/b/a J. CREW
 FACTORY

		
	By:	  	 /s/: James S. Scully

	 Name:
 Title:
	  	 James S. Scully
 Executive Vice President
and
 Chief Financial Officer

		
	By:	  	 /s/: James S. Scully

	 Name:
 Title:
	  	 James S. Scully
 Executive Vice President
and
 Chief Financial Officer

	
	J. CREW INTERNATIONAL, INC.
		
	By:	  	 /s/: Nicholas P. Lamberti

	 Name:
 Title:
	  	 Nicholas P. Lamberi
 Vice President and
Controller

  

 EXHIBIT A 
 [FORM OF TRANCHE A NOTE] 
 NOTE 
                     , 2006 
 Principal Amount: $10,000,000.00 
 J. CREW OPERATING CORP., a Delaware corporation (the “Borrower”), for value received, hereby promises to pay to TPG-MD INVESTMENT, LLC (the “Lender”) or its registered assigns, at the office and to an
account designated by the Lender, in lawful money of the United States, on the Maturity Date, the principal amount of $10,000,000.00 (Ten million United States dollars). This Note shall bear interest on the unpaid principal amount hereof at the rate
set forth in the Agreement. Interest on such unpaid principal amount shall be payable and compound and be capitalized and added to such unpaid principal amount as provided for in the Agreement. Capitalized terms used herein have the same meanings
given in the Agreement specified below unless otherwise indicated. 
 The Borrower shall maintain a register where the Note is registered as
to both the principal and any stated interest on the Note and such principal and stated interest shall be paid only to the registered holder of the Note. The transfer of the Notes may be effected only by the surrender of the Notes to the Borrower
and either the reissuance by the Borrower of the Notes to the new holder or the issuance by the Borrower of a new note to the new holder. 
 Except as provided in the Agreement, the Borrower waives presentment, demand, protest or other notice of any kind. 
 This Note is
the Note referred to in an Amended and Restated Credit Agreement dated even date herewith by and among the Lender, the Borrower, the Parent and the Guarantors named therein (the “Agreement”), and is entitled to the benefits provided
therein, including, without limitation, the Exchange Right described therein. This Note is subject to prepayment in whole but not in part and the maturity of this Note is subject to acceleration upon the terms provided for in the Agreement.

 The payment of the Loan evidenced by this Note is subordinated in accordance with the provisions of Article VI of the Agreement in right
of payment to the prior payment in full in cash of Senior Debt (whether outstanding on the Funding Date or created, incurred, assumed or guaranteed thereafter), and this subordination is for the benefit of the holders of Senior Debt. 
  

			
	J. CREW OPERATING CORP.
		
	By:	  	  

	Name:	  	
	Title:	  	

  

 A-1 

 EXHIBIT B 
 [FORM OF TRANCHE B NOTE] 
 NOTE 
                     , 2006 
 Principal Amount: $10,000,000.00 
 J. CREW OPERATING CORP., a Delaware corporation (the “Borrower”), for value received, hereby promises to pay to TPG-MD INVESTMENT, LLC (the “Lender”) or its registered assigns, at the office and to an
account designated by the Lender, in lawful money of the United States, on the Maturity Date, the principal amount of $10,000,000.00 (Ten million United States dollars). This Note shall bear interest on the unpaid principal amount hereof at the rate
set forth in the Agreement. Interest on such unpaid principal amount shall be payable and compound and be capitalized and added to such unpaid principal amount as provided for in the Agreement. Capitalized terms used herein have the same meanings
given in the Agreement specified below unless otherwise indicated. 
 The Borrower shall maintain a register where the Note is registered as
to both the principal and any stated interest on the Note and such principal and stated interest shall be paid only to the registered holder of the Note. The transfer of the Notes may be effected only by the surrender of the Notes to the Borrower
and either the reissuance by the Borrower of the Notes to the new holder or the issuance by the Borrower of a new note to the new holder. 
 Except as provided in the Agreement, the Borrower waives presentment, demand, protest or other notice of any kind. 
 This Note is
the Note referred to in an Amended and Restated Credit Agreement dated even date herewith by and among the Lender, the Borrower, the Parent and the Guarantors named therein (the “Agreement”), and is entitled to the benefits provided
therein, including, without limitation, the Exchange Right described therein. This Note is subject to prepayment in whole but not in part and the maturity of this Note is subject to acceleration upon the terms provided for in the Agreement.

 The payment of the Loan evidenced by this Note is subordinated in accordance with the provisions of Article VI of the Agreement to the
prior payment in full of all Senior Debt (whether outstanding on the Funding Date or created, incurred, assumed or guaranteed thereafter), and that this subordination is for the benefit of the holders of Senior Debt of the Borrower. 
  

			
	J. CREW OPERATING CORP.
		
	By:	  	  

	Name:	  	
	Title:	  	

  

 B-1 

 EXHIBIT C 
 NOTE GUARANTEE 
 Each of the undersigned Guarantors hereby, jointly and severally, unconditionally
guarantees to the Lender and its successors and assigns, irrespective of the validity and enforceability of the Amended and Restated Credit Agreement dated even date herewith by and among the Borrower, the Lender and the Parent (as amended,
supplemented or restated from time to time the “Agreement”), the Notes and the obligations of the Borrower hereunder and thereunder, that: (a) the principal of and the interest on the Notes will be promptly paid in full when
due, subject to any applicable grace period, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal and interest on any interest, if any, on the Notes, and all other payment obligations of the Borrower
to the Lender hereunder or thereunder will be promptly paid in full and performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at stated maturity, by acceleration, redemption or otherwise.

 An Event of Default under the Agreement or the Notes shall constitute an event of default under this Note Guarantee, and shall entitle the
Lender to accelerate the obligations of the Guarantors hereunder in the same manner and to the same extent as the obligations of the Borrower. 
 THE TERMS OF ARTICLES VI AND VIII OF THE AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE. 
 Capitalized terms used herein have the
same meanings given in the Agreement unless otherwise indicated. 
 Dated: 
  

			
	 GRACE HOLMES, INC. d/b/a
 J. CREW RETAIL

		
	 By:
	  	  

	 Name:
 Title:
	  	
	
	 H.F.D. NO 55, INC. d/b/a J. CREW
 FACTORY

		
	 By:
	  	  

	 Name:
 Title:
	  	

  

 C-1 

			
	J. CREW, INC.
		
	 By:
	  	  

	 Name:
 Title:
	  	

  
  

			
	J. CREW INTERNATIONAL, INC.
		
	 By:
	  	  

	 Name:
 Title:
	  	

  

 C-2 

 SCHEDULE 2.01 
  
  

				
	 Date of Termination
	  	EBITDA
	 Funding Date to January 31, 2004
	  	$	0
	 February 1, 2004 to January 31, 2005
	  	$	41,100,000
	 February 1, 2005 to January 31, 2006
	  	$	90,300,000
	 February 1, 2006 to January 31, 2007
	  	$	115,800,000
	 February 1, 2007 to the Maturity Date
	  	$	146,300,000

  

 1

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