Document:

Note and Warrant Purchase Agreement

 Exhibit 10.1 
 NOTE AND WARRANT PURCHASE AGREEMENT 
 This Note and
Warrant Purchase Agreement (this “Agreement”) is dated as of December 22, 2009, among MDRNA, Inc., a Delaware corporation (the “Company”), MDRNA Research, Inc., a Delaware corporation and a wholly-owned subsidiary
of the Company (“Research” and, together with the Company, the “Companies”)), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser”
and collectively the “Purchasers”). 
 WHEREAS, subject to the terms and conditions set forth in this Agreement
and, with respect to the Warrants and the Warrant Shares, pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, Notes and Securities as more fully described in this Agreement. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Companies
and each Purchaser agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 1.1 Definitions. In addition to the terms defined elsewhere
in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1: 
 “Acquiring Person” shall have the meaning ascribed to such term in Section 4.5. 
 “Action” shall have the meaning ascribed to such term in Section 3.1(j). 
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405
under the Securities Act. 
 “Board of Directors” means the board of directors of the Company. 
 “Business Day” means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any
day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
 “Closing” means the closing of the purchase and sale of the Notes and the Securities pursuant to Section 2.1. 
 “Closing Date” means the third day following the date hereof or such earlier day as agreed to by the parties. 
 “Closing Statement” means the Closing Statement in the form Annex A attached hereto. 
 “Commission” means the Securities and Exchange Commission. 
 “Common Stock” means the common stock of the Company, par value $0.006 per share, and any other class of securities into
which such securities may hereafter be reclassified or changed into. 

 “Common Stock Equivalents” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or
exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 
 “Company Counsel” means
Pryor Cashman LLP, with offices located at 7 Time Square, New York, New York 10036-6569. 
 “Disclosure
Schedules” means, if disclosure schedules of the Company are delivered concurrently herewith, such disclosure schedules. 
 “Discussion Time” shall have the meaning ascribed to such term in Section 3.2(e). 
 “Evaluation Date” shall have the meaning ascribed to such term in Section 3.1(r). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted for
such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise or exchange of or conversion
of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement and (c) securities issued pursuant to acquisitions or
strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with
the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities. 
 “FDA” shall have the meaning ascribed to such term
in Section 3.1(gg). 
 “FDCA” shall have the meaning ascribed to such term in Section 3.1(gg).

 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Indebtedness” shall have the meaning ascribed to such term in Section 3.1(z). 
 “IP Security Agreement” means that certain Intellectual Property Security Agreement, dated as of the date hereof, by the
Company and Research in favor of the Purchasers. 
 “Intellectual Property Rights” shall have the meaning
ascribed to such term in Section 3.1(o). 
 “Liens” means a lien, charge, security interest, encumbrance,
right of first refusal, preemptive right or other restriction. 
 “Material Adverse Effect” shall have the
meaning assigned to such term in Section 3.1(b). 
 “Material Permits” shall have the meaning ascribed to
such term in Section 3.1(m). 
 “Notes” means the Secured Promissory Notes issued to each Purchaser at the
Closing pursuant to this Agreement, which Notes shall be in the form of Exhibit A attached hereto. 

 “Person” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 “Pharmaceutical Product” shall have the meaning ascribed to such term in Section 3.1(gg). 
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
 “Prospectus”
means the final prospectus filed for the Registration Statement. 
 “Prospectus Supplement” means the
supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered by the Company to each Purchaser at the Closing. 
 “Purchaser Party” shall have the meaning ascribed to such term in Section 4.8. 
 “Registration Statement” means the effective registration statement with Commission file No. 333-148771 which
registers the sale of the Warrants and the Warrant Shares to and by the Purchasers. 
 “Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e). 
 “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Securities” means the Warrants and the Warrant Shares. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 “Security Agreement” means that certain Security Agreement, dated as of the date hereof, by the Company and
Research in favor of the Purchasers. 
 “Short Sales” means all “short sales” as defined in
Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 
 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Notes and Warrants purchased hereunder as specified below such Purchaser’s name on the
signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds. 
 “Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(a) , and shall, where applicable, also include any direct or indirect subsidiary of the Company formed
or acquired after the date hereof. 
 “Trading Day” means a day on which the New York Stock Exchange is open
for trading. 
 “Trading Market” means the following markets or exchanges on which the Common Stock is listed
or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange. 

 “Transaction Documents” means this Agreement, the Security Agreement, the
IP Security Agreement, the Notes, the Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder. 
 “Transfer Agent” means American Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address of 59 Maiden Lane, New York, New York 10038 and
a facsimile number of (718) 921-8331, and any successor transfer agent of the Company. 
 “VWAP” means,
for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the
nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b) if the
OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then listed or quoted for trading on the
OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price
per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers accounting for at least 80% of the
aggregate principal amount of all Notes then outstanding, or, if no Notes are then outstanding, at least 80% of the Warrants and Warrant Shares then outstanding, and reasonably acceptable to the Company, the fees and expenses of which shall be paid
by the Company. 
 “Warrants” means, collectively, the Common Stock purchase warrants delivered to the
Purchasers at the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be immediately exercisable on the Closing Date and have a term of five years from the Closing Date and shall otherwise be in the form of Exhibit B
attached hereto. 
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 ARTICLE II. 
 PURCHASE AND SALE 
 2.1 Closing. On the Closing Date, the Company and Research shall sell, and the Purchasers,
severally and not jointly, shall purchase, Notes in the aggregate principal amount of $1,000,000 and Warrants to purchase up to 1,075,269 shares of Common Stock. Each Purchaser shall deliver to the Company, via wire transfer of immediately available
funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser its respective Note and a Warrant as determined pursuant to
Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. The Closing shall occur at the offices of the Company’s counsel or such other location as the
parties shall mutually agree. 
 2.2 Deliveries. 
 (a) On or prior to the Closing Date, the Companies shall deliver or cause to be delivered to each Purchaser the following: 
 (i) this Agreement duly executed by the Company; 
 (ii) a legal opinion of Company Counsel, substantially in the form of Exhibit C attached hereto; 

 (iii) a Note registered in the name of such Purchaser in the aggregate principal amount of
100% of such Purchaser’s Subscription Amount (such Note may be delivered within three Trading Days of the Closing Date); 
 (iv) a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s Subscription Amount divided by $0.93, with an exercise price equal to $1.02, subject to
adjustment therein (such Warrant certificate may be delivered within three Trading Days of the Closing Date); 
 (v) the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act); 
 (vi)
a copy of all Code and similar financing statements in form and substance satisfactory to the Purchasers, which shall be filed at the appropriate offices to create a valid and perfected security interest in the Collateral (as such terms are defined
in the Security Agreement), along with evidence reasonably satisfactory to the Purchasers of the filing of such financing statements. 
 (b) On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following: 
 (i) this Agreement duly executed by such Purchaser; and 
 (ii) such Purchaser’s Subscription Amount by wire
transfer to the account as specified in writing by the Company. 
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES 
 3.1 Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or
otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Companies hereby make the following representations and warranties to each Purchaser: 
 (a) Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The
Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are
fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, then all other references to the Subsidiaries or any of them in the Transaction Documents shall be
disregarded. 
 (b) Organization and Qualification. The Company and each of the Subsidiaries is an entity duly
incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and
to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter
documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it
makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or
enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a
material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no
Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 

 (c) Authorization; Enforcement. Each of the Company and Research has the requisite
corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its respective obligations hereunder and thereunder. The execution and delivery of each of
the Transaction Documents by the Company and Research, and the consummation by each of them of the transactions contemplated hereby and thereby, have been duly authorized by all necessary action on the part of the Companies and no further action is
required by the Companies, the Boards of Directors or the stockholders of the Companies in connection therewith other than in connection with the Required Approvals. Each Transaction Document to which it is a party has been (or upon delivery will
have been) duly executed by each of the Companies and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of each of the Company and Research enforceable against such entity in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 
 (d) No Conflicts. The execution, delivery and performance by the Company and Research of the Transaction Documents, the issuance and
sale of the Notes and the Securities and the consummation by each such entity of the Transaction Documents to which it is a party of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any
provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time
or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or
asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of
each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect. 
 (e) Filings, Consents and Approvals. Neither the Company nor any Subsidiary is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company or such Subsidiary of the Transaction Documents, other than (i) the filings required pursuant to
Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Warrant Shares for trading thereon in the time and manner
as may be required thereby and (iv) such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”). 
 (f) Issuance of the Securities; Registration. The Notes and the Securities are duly authorized and, when issued and paid for in
accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Warrant Shares, when issued in accordance with the terms of the Warrants,
will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the Warrants.
The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on February 4, 2008 (the “Effective Date”), including the Prospectus, and such
amendments and supplements thereto as may have been required to the

 
date of this Agreement. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending
or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and
regulations of the Commission, proposes to file the Prospectus, with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing
Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at time the Prospectus or any amendment or supplement thereto was issued and at the
Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. 
 (g) Capitalization. The
Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of
Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the
Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents that have not been fully satisfied. Except as a
result of the purchase and sale of the Securities, and other than as set forth in the SEC Reports, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities,
rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as set forth on Schedule 3.1(g) of the Disclosure Schedule, the issuance and sale of the Securities will not obligate the Company to
issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Notes and the Securities. There
are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders. 
 (h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was
required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus, being collectively referred to herein as the “SEC
Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the
Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial

 
statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except
as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the
Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 (i) Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to
result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued
any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the
issuance of the Notes and the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial
condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this
representation is made. 
 (j) Litigation. There is no action, suit, inquiry, notice of violation, proceeding or
investigation pending or, to the knowledge of the Company or any Subsidiary, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency
or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents, the Notes or
the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject
of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the
Company or any Subsidiary under the Exchange Act or the Securities Act. 
 (k) Labor Relations. No material labor dispute
exists or, to the knowledge of the Company or any Subsidiary, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer
does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 (l) Compliance. Neither the Company nor any Subsidiary: (i) is in default under
or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all
foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect. 
 (m) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a
Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 
 (n) Title to Assets. Except as set forth in Schedule 3.1(n), the Company and the Subsidiaries have good and marketable
title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any
real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance. 
 (o) Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or material for use in connection with their respective businesses as
described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or
otherwise) that any of the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no
existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (p) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and
the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. 
 (q) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal

 
property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred
on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company. 
 (r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The
Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general
or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the
Company’s disclosure controls and procedures as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its
most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date,
there have been no changes in the Company’s internal control over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. 
 (s) Certain Fees. Except as may be set forth in the Prospectus Supplement, no brokerage or
finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction
Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents. 
 (t) Investment Company. The Company is not, and is not an Affiliate of, and
immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so
that it will not become subject to the Investment Company Act of 1940, as amended. 
 (u) Registration Rights. No Person
has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
 (v)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in
the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Trading Market. 

 (w) Application of Takeover Protections. The Company and the Board of Directors have
taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the
Company’s certificate of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of the Notes and the Securities and the Purchasers’ ownership of the Notes and the Securities. 
 (x) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public
information which is not otherwise disclosed in the Prospectus. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or
on behalf of the Company to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve
months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3.2 hereof. 
 (y) No Integrated Offering. Assuming the accuracy of the
Purchasers’ representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that would cause this offering of the Notes and the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Notes and the Securities hereunder does not contravene the rules and regulations of any Trading Market on which any of the securities
of the Company are listed or designated. 
 (z) Solvency. Based on the consolidated financial condition of the Company as
of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the issuance of the Notes and the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that will be
required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its
business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all
amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year
from the Closing Date. The SEC Reports set forth as of the date thereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this
Agreement, “Indebtedness” means (a) any liabilities for borrowed money or amounts owed in excess of $60,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements
and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by

 
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of
$50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness. 
 (aa) Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has
filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or
any Subsidiary. 
 (bb) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or
other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any
person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (cc) Accountants. The Company’s accounting firm is KPMG LLP. To the knowledge and belief of the Company, such accounting firm is
a registered public accounting firm as required by the Exchange Act. 
 (dd) Acknowledgment Regarding Purchasers’
Purchase of Securities. The Company acknowledges and agrees that each Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company
further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any
Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Notes and the Securities. The Company
further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its
representatives. In addition, the Company represents and warrants to each Purchaser that the Notes do not constitute “Securities,” as that term is defined in Section 2(a)(1) of the Securities Act. 
 (ee) Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company that (i) none of the Purchasers have been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing
or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Warrants or the Warrant Shares for any specified term; (ii) that past or future open market
or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively impact the market
price of the Company’s publicly-traded securities; (iii) that any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently may have a “short”
position in the Common Stock, and (iv) that each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands and
acknowledges that (a) one or more Purchasers may engage in hedging activities at various times during the period that the Warrants or the Warrant Shares are outstanding, including, without limitation, during the periods that the value of the
Warrant Shares deliverable with respect to the Warrants are being determined and (b) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the
hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents. 

 (ff) Regulation M Compliance. The Company has not, and to its knowledge no one
acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities,
(ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the
Company, other than, in the case of clauses (ii) and (iii), compensation, if any, that may be paid to the Company’s placement agent in connection with the placement of the Securities. 
 (gg) FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the
Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such
product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and
similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas,
labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company’s knowledge, threatened, action (including any
lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning
letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing
of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials
relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries,
(v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries,
and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules
and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has
the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company. 
 3.2 Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof to the Company as follows:

 (a) Organization; Authority. Such Purchaser, if such Purchaser not an individual, is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and
otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all
necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute
the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law. 

 (b) Purchaser Status. At the time such Purchaser was offered the Securities, it was,
and as of the date hereof it is, and on each date on which it exercises any Warrants for cash, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities
Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
 (c) Securities Act; No General Solicitation. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. 
 (d) Short Sales and Confidentiality Prior To The Date Hereof. Other than consummating the transactions contemplated hereunder, such
Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period
commencing from the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder until the date
hereof (“Discussion Time”). Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the
portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of this transaction). 
 (e) Legend. Such
Purchaser acknowledges and agrees that the Notes may not be transferred or assigned, and that each Note shall be stamped or otherwise imprinted with a legend to that effect. 

 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES 
 4.1 Warrant Shares. If all or any portion
of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant to any such exercise
shall be issued free of all legends. If at any time following the date hereof the Registration Statement (or any subsequent registration statement registering the Warrant Shares) is not effective or is not otherwise available for the sale or resale
of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify such holders when the registration statement is effective
again and available for the sale or resale of the Warrant Shares. The Company shall use best efforts to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares effective during
the term of the Warrants. Upon a cashless exercise of the Warrants, the holding period for purposes of Rule 144 shall tack back to the original date of issuance of such Warrant. 
 4.2 Furnishing of Information. Until the earliest of the time that (i) no Purchaser owns Warrants or Warrant Shares or
(ii) the Warrants have expired, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the
Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act. As long as any Purchaser owns Warrants or Warrant Shares, if the Company is not required to file reports pursuant to the Exchange Act, it will
prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Warrants or Warrant Shares under Rule 144. The Company further covenants that it
will take such further action as any holder of Warrants or Warrant Shares may reasonably request, to the extent required from time to time to enable such Person to sell such Warrants or Warrant Shares without registration under the Securities Act
within the requirements of the exemption provided by Rule 144. 
 4.3 Integration. The Company shall not sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of
any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 
 4.4 Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. (New York City time) on the Trading Day immediately
following the date hereof, issue a press release and file a Current Report on Form 8-K, disclosing the material terms of the transactions contemplated hereby, and shall promptly thereafter file a Form 8-K which shall include the Transaction
Documents as exhibits thereto. From and after the issuance of such press release, the Company shall have publicly disclosed all material, non-public information (if any) delivered to any of the Purchasers by the Company or any of its subsidiaries,
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. The Company and each Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement (other than filings with the Commission by any Purchaser) without the prior
consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be

 
withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior
written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing of final Transaction Documents (including signature pages thereto) with the Commission and (b) to the extent such disclosure
is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b). 
 4.5 Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person,
that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of purchasing Notes or receiving Securities under the Transaction Documents or under any other agreement between the
Company and the Purchasers. 
 4.6 Non-Public Information. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto and after the date hereof, such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that
each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. 
 4.7 Use
of Proceeds. The Company shall use the net proceeds from the sale of the Notes and the Securities hereunder for working capital purposes, and shall not be used for (a) the redemption of any Common Stock or Common Stock Equivalents or
(b) the settlement of any outstanding litigation. 
 4.8 Indemnification of Purchasers. Subject to the provisions of
this Section 4.8, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction
Documents or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions
contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with
any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any
Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own
choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense
of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to

 
employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for
any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is
attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. 
 4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep
available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Warrant Shares pursuant to any exercise of the Warrants. 
 4.10 Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing of the Common Stock on a Trading
Market and the Company shall list all of the Warrant Shares on such Trading Market no later than the date immediately following the date hereof. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading
Market, it will then include in such application all of the Warrant Shares, and will then take such other action as is necessary to cause all of the Warrant Shares to be listed on such other Trading Market as promptly as possible. The Company will
take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading
Market. 
 4.11 Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a
separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a
group with respect to the purchase, disposition or voting of the Notes or the Securities or otherwise. 
 4.12 Intentionally
Left Blank. 
 4.13 Intentionally Left Blank. 
 4.14 Short Sales and Confidentiality After The Date Hereof. Each Purchaser, severally and not jointly with the other Purchasers,
covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it, will execute any Short Sales during the period commencing with the Discussion Time and ending at such time the transactions contemplated by
this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the
information included in the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any
representation, warranty or covenant hereby that it will not engage in Short Sales in securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as
described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality to the Company or its Subsidiaries after the
issuance of the initial press release as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle

 
whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Notes and the
Securities covered by this Agreement. 
 4.15 Delivery of Notes and Warrants After Closing. The Company shall deliver, or
cause to be delivered, the respective Notes and Warrants purchased by each Purchaser to such Purchaser within 3 Trading Days of the Closing Date. 
 4.16 Registration Statement. The Company shall keep the Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) effective at all times and
available for use by the Company and the Purchasers until the earlier of the time at which (a) no Purchaser owns any Warrants or Warrant Shares or (b) the Warrants have expired. The Company shall ensure that the Registration Statement
(including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading, and the Company will immediately notify each of the Purchasers of such an untrue statement or omission. After the date hereof and during
any period in which a Prospectus or Prospectus Supplement relating to any of the Warrants or Warrant Shares is required to be delivered by any Purchaser under the Securities Act (including in circumstances where such requirement may be satisfied
pursuant to Rule 172 under the Securities Act), (i) the Company will notify the Purchasers promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the
Commission and/or has become effective or any subsequent supplement to the Prospectus that relates to any of the Warrants or Warrant Shares or any of the Purchasers or any subsequent amendment to the Prospectus or any supplement or amendment to the
Prospectus Supplement has been filed with the Commission and of any comment letter from the Commission or any request by the Commission for any amendment or supplement to the Registration Statement, any amendment to the Prospectus, any supplement to
the Prospectus that relates to any of the Warrants or Warrant Shares or any of the Purchasers or any amendment or supplement to the Prospectus Supplement or for additional information, (ii) the Company will prepare and file with the Commission,
promptly upon a Purchaser’s request, any amendments or supplements to the Registration Statement, Prospectus or Prospectus Supplement that, in such Purchaser’s reasonable opinion, may be necessary or advisable in connection with any
distribution (if any) of the Warrants or Warrant Shares by such Purchaser (provided however, that the failure of such Purchaser to make such request shall not relieve the Company of any obligation or liability hereunder, or affect such
Purchaser’s right to rely on the representations and warranties made by the Company in this Agreement); (iii) the Company will not file any amendment or supplement to the Registration Statement, Prospectus or Prospectus Supplement, other
than documents incorporated by reference, relating to the Securities unless a copy thereof has been submitted to each Purchaser within a reasonable period of time before the filing and no Purchaser has reasonably objected in writing thereto
(provided however, that (1) the failure of any Purchaser to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect any Purchaser’s right to rely on the representations and warranties made by
the Company in this Agreement, and (2) the Company has no obligation to provide a Purchaser any advance copy of such filing or to provide such Purchaser an opportunity to object to such filing if such filing does not name such Purchaser or
specifically discuss the Warrants or Warrant Shares as contemplated hereby) and the Company will furnish to each Purchaser at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the
Registration Statement, Prospectus or Prospectus Supplement, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus or the Prospectus Supplement, other than documents
incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act (without reliance on Rule 424(b)(8) of the Securities Act). 

 ARTICLE V. 
 MISCELLANEOUS 
 5.1 Termination. This Agreement may be terminated by
any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated
on or before December     , 2009; provided, however, that no such termination will affect the right of any party to sue for any breach by the other party (or parties). 
 5.2 Fees and Expenses. The Company shall deliver, prior to the Closing, a completed and executed copy of the Closing Statement,
attached hereto as Annex A. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of
the Notes or any Securities to the Purchasers. 
 5.3 Entire Agreement. The Transaction Documents, together with the
exhibits and schedules thereto, and the Prospectus, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which
the parties acknowledge have been merged into such documents, exhibits and schedules, provided that the foregoing shall not have any effect on any agreements any Purchaser has entered into with the Company or any of its Subsidiaries prior to the
date hereof with respect to any prior investment made by such Purchaser in the Company. 
 5.4 Notices. Any and all
notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the 2nd Trading Day following the date
of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the
signature pages attached hereto. 
 5.5 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed by the Company and Purchasers accounting for at least 80% of the aggregate principal amount of all Notes then outstanding, or, if no Notes are then outstanding, at least 80% of the Warrants and Warrant Shares
then outstanding. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 
 5.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 
 5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. Neither the Company nor Research may assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under
this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to
the “Purchasers.” For the avoidance of doubt, the Notes may not be transferred or assigned. 

 5.8 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8. 
 5.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the
other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 5.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Notes and the
Securities for the applicable statute of limitations. 
 5.11 Execution. This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 
 5.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ
an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed
the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 5.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any
Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however, that in the case of a rescission of an
exercise of a Warrant, the Purchaser shall be required to return any shares of Common Stock subject to with any such rescinded exercise notice. 

 5.14 Replacement of Instruments. If any certificate or instrument evidencing any
Notes or Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new
certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Notes or Securities. 
 5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.
The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific
performance of any such obligation the defense that a remedy at law would be adequate. 
 5.16 Payment Set Aside. To the
extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under
any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
 5.17 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant
thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and
negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchasers. It
is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and
among the Purchasers. 
 5.18 Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or
other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or
security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled. 
 5.19 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may
be exercised on the next succeeding Business Day. 
 5.20 Construction. The parties agree that each of them and/or their
respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of the Transaction Documents or any amendments hereto. 

 5.21 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION
BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

(Remainder of Page Intentionally Left Blank; Signature Pages Follow) 

 IN WITNESS WHEREOF, the parties hereto have caused this Note and Warrant Purchase Agreement
to be duly executed by their respective authorized signatories as of the date first indicated above. 
  

							
	MDRNA, INC.	 		 	Address for Notice:
		 		 		 	 3830 Monte Villa Parkway
 Bothell, WA 98021
 Fax: 206-830-9424

	By:	 	 /s/ J. Michael French
	 		 
	Name:	 	J. Michael French	 		 
	Title:	 	President and Chief Executive Officer	 		 	
		 		 		 	
		 		 		 	
	MDRNA RESEARCH, INC.	 		 	Address for Notice:
		 		 		 	 3830 Monte Villa Parkway
 Bothell, WA 98021
 Fax: 206-830-9424

	By:	 	 /s/ J. Michael French
	 		 
	Name:	 	J. Michael French	 		 
	Title:	 	President	 		 	

 In each case, with a copy to (which shall not constitute notice): 
 Pryor Cashman LLP 
 7 Times Square 
 New York, NY 10036-6569 
 Attn: Lawrence Remmel

 Fax: 212-798-6365 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGE FOR PURCHASER FOLLOWS] 

 [PURCHASER SIGNATURE PAGES TO NOTE AND WARRANT PURCHASE AGREEMENT] 
 IN WITNESS WHEREOF, the undersigned have caused this Note and Warrant Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 
  

					
	Name of Purchaser:	 	  
	 	

  

					
	 Signature of Authorized Signatory of Purchaser:
	 	  
	 	

  

					
	 Name of Authorized Signatory:
	 	  
	 	

  

					
	 Title of Authorized Signatory:
	 	  
	 	

  

					
	 Email Address of Authorized Signatory:
	 	  
	 	

  

					
	 Fax Number of Authorized Signatory:
	 	  
	 	

 Address for Notice of Purchaser: 
 Address for Delivery of Notes and Warrants for Purchaser (if not same as address for notice): 
 Subscription Amount: $
                                        
     
 Warrants:
                                     
 [SIGNATURE PAGES CONTINUE]Indenture, dated as of July 9, 2009

 Exhibit 4.1 
 TOYS “R” US PROPERTY COMPANY I, LLC, 
 TOYS
“R” US, INC. 
 and 
 THE GUARANTORS PARTY HERETO 
  
  
 10.75% SENIOR NOTES
DUE 2017 
  
  
 INDENTURE 
 DATED AS
OF JULY 9, 2009 
  
  
 THE BANK OF NEW YORK MELLON 
 as Trustee 

 CROSS-REFERENCE TABLE* 
  

					
	 Trust Indenture
 Act Section
	  	Indenture
Section
	 310
	 	(a)(1)	  	7.10
		 	(a)(2)	  	7.10
		 	(a)(3)	  	N.A.
		 	(a)(4)	  	N.A.
		 	(a)(5)	  	7.10
		 	(b)	  	7.3; 7.10
		 	(c)	  	N.A.
	 311
	 	(a)	  	7.11
		 	(b)	  	7.11
		 	(c)	  	N.A.
	 312
	 	(a)	  	2.5
		 	(b)	  	11.3
		 	(c)	  	11.3
	 313
	 	(a)	  	7.6
		 	(b)(1)	  	7.6
		 	(b)(2)	  	7.6; 7.7
		 	(c)	  	7.6; 11.2
		 	(d)	  	7.6
	 314
	 	(a)	  	4.3; 11.5
		 	(b)	  	N.A.
		 	(c)(1)	  	11.4
		 	(c)(2)	  	11.4
		 	(c)(3)	  	N.A.
		 	(d)	  	N.A.
		 	(e)	  	11.5
		 	(f)	  	N.A.
	 315
	 	(a)	  	7.1
		 	(b)	  	1.1, 7.5; 11.2
		 	(c)	  	7.1
		 	(d)	  	7.1
		 	(e)	  	6.11
	 316
	 	(a) (last sentence)	  	2.9
		 	(a)(1)(A)	  	6.5
		 	(a)(1)(B)	  	6.4
		 	(a)(2)	  	N.A.
		 	(b)	  	6.7
		 	(c)	  	2.13
	 317
	 	(a)(1)	  	6.8
		 	(a)(2)	  	6.9
		 	(b)	  	2.4
	 318
	 	(a)	  	11.1
		 	(b)	  	N.A.
		 	(c)	  	11.1

  
 N.A. means not applicable. 
  

	*	This Cross-Reference Table is not part of the Indenture. 

  

 -i- 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	ARTICLE I	  	
			
		  	DEFINITIONS AND INCORPORATION BY REFERENCE	  	
			
	 SECTION 1.1
	  	Definitions	  	1
	 SECTION 1.2
	  	Other Definitions	  	30
	 SECTION 1.3
	  	Incorporation by Reference of Trust Indenture Act	  	31
	 SECTION 1.4
	  	Rules of Construction	  	31
			
		  	ARTICLE II	  	
			
		  	THE NOTES	  	
			
	 SECTION 2.1
	  	Form and Dating	  	32
	 SECTION 2.2
	  	Execution and Authentication	  	34
	 SECTION 2.3
	  	Registrar; Paying Agent	  	35
	 SECTION 2.4
	  	Paying Agent to Hold Money in Trust	  	35
	 SECTION 2.5
	  	Holder Lists	  	36
	 SECTION 2.6
	  	Book-Entry Provisions for Global Securities	  	36
	 SECTION 2.7
	  	Replacement Notes	  	41
	 SECTION 2.8
	  	Outstanding Notes	  	41
	 SECTION 2.9
	  	Treasury Notes	  	42
	 SECTION 2.10
	  	Temporary Notes	  	42
	 SECTION 2.11
	  	Cancellation	  	42
	 SECTION 2.12
	  	Defaulted Interest	  	43
	 SECTION 2.13
	  	Record Date	  	43
	 SECTION 2.14
	  	Computation of Interest	  	43
	 SECTION 2.15
	  	CUSIP/ISIN Number	  	43
	 SECTION 2.16
	  	Special Transfer Provisions	  	43
			
		  	ARTICLE III	  	
			
		  	REDEMPTION AND PREPAYMENT	  	
			
	 SECTION 3.1
	  	Notices to Trustee	  	45
	 SECTION 3.2
	  	Selection of Notes to Be Redeemed	  	46
	 SECTION 3.3
	  	Notice of Redemption	  	46
	 SECTION 3.4
	  	Effect of Notice of Redemption	  	47
	 SECTION 3.5
	  	Deposit of Redemption Price	  	47
	 SECTION 3.6
	  	Notes Redeemed in Part	  	48
	 SECTION 3.7
	  	Optional Redemption	  	48

  

 -i- 

					
	 SECTION 3.8
	  	Mandatory Redemption	  	49
	 SECTION 3.9
	  	Offer to Purchase	  	49
			
		  	ARTICLE IV	  	
			
		  	COVENANTS	  	
			
	 SECTION 4.1
	  	Payment of Notes	  	50
	 SECTION 4.2
	  	Maintenance of Office or Agency	  	51
	 SECTION 4.3
	  	Provision of Financial Information	  	51
	 SECTION 4.4
	  	Compliance Certificate	  	52
	 SECTION 4.5
	  	Taxes	  	53
	 SECTION 4.6
	  	Stay, Extension and Usury Laws	  	53
	 SECTION 4.7
	  	Limitation on Restricted Payments	  	53
	 SECTION 4.8
	  	Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries	  	54
	 SECTION 4.9
	  	Limitation on Incurrence of Debt	  	56
	 SECTION 4.10
	  	Limitation on Asset Sales	  	56
	 SECTION 4.11
	  	Limitation on Transactions with Affiliates	  	57
	 SECTION 4.12
	  	Limitation on Liens	  	58
	 SECTION 4.13
	  	Offer to Purchase upon Change of Control	  	59
	 SECTION 4.14
	  	Corporate Existence; Amendments to Organizational Documents	  	59
	 SECTION 4.15
	  	Additional Note Guarantees	  	59
	 SECTION 4.16
	  	Books and Records	  	60
	 SECTION 4.17
	  	Conduct of Business / Amendments to the Master Lease	  	60
			
		  	ARTICLE V	  	
			
		  	SUCCESSORS	  	
			
	 SECTION 5.1
	  	Consolidation, Merger, Conveyance, Transfer or Lease	  	61
	 SECTION 5.2
	  	Successor Person Substituted	  	62
			
		  	ARTICLE VI	  	
			
		  	DEFAULTS AND REMEDIES	  	
			
	 SECTION 6.1
	  	Events of Default	  	62
	 SECTION 6.2
	  	Acceleration	  	64
	 SECTION 6.3
	  	Other Remedies	  	65
	 SECTION 6.4
	  	Waiver of Past Defaults	  	65
	 SECTION 6.5
	  	Control by Majority	  	65
	 SECTION 6.6
	  	Limitation on Suits	  	66
	 SECTION 6.7
	  	Rights of Holders of Notes to Receive Payment	  	66
	 SECTION 6.8
	  	Collection Suit by Trustee	  	66
	 SECTION 6.9
	  	Trustee May File Proofs of Claim	  	67

  

 -ii- 

					
	 SECTION 6.10
	  	Priorities	  	67
	 SECTION 6.11
	  	Undertaking for Costs	  	68
			
		  	ARTICLE VII	  	
			
		  	TRUSTEE	  	
			
	 SECTION 7.1
	  	Duties of Trustee	  	68
	 SECTION 7.2
	  	Rights of Trustee	  	69
	 SECTION 7.3
	  	Individual Rights of Trustee	  	71
	 SECTION 7.4
	  	Trustee’s Disclaimer	  	71
	 SECTION 7.5
	  	Notice of Defaults	  	71
	 SECTION 7.6
	  	Reports by Trustee to Holders of the Notes	  	71
	 SECTION 7.7
	  	Compensation and Indemnity	  	72
	 SECTION 7.8
	  	Replacement of Trustee	  	73
	 SECTION 7.9
	  	Successor Trustee by Merger, Etc.	  	74
	 SECTION 7.10
	  	Eligibility; Disqualification	  	74
	 SECTION 7.11
	  	Preferential Collection of Claims Against the Company	  	74
	 SECTION 7.12
	  	Trustee’s Application for Instructions from the Company	  	74
			
		  	ARTICLE VIII	  	
			
		  	DEFEASANCE AND COVENANT DEFEASANCE	  	
			
	 SECTION 8.1
	  	Option to Effect Defeasance or Covenant Defeasance	  	75
	 SECTION 8.2
	  	Defeasance and Discharge	  	75
	 SECTION 8.3
	  	Covenant Defeasance	  	76
	 SECTION 8.4
	  	Conditions to Defeasance or Covenant Defeasance	  	77
	 SECTION 8.5
	  	Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions	  	78
	 SECTION 8.6
	  	Repayment to Company	  	79
	 SECTION 8.7
	  	Reinstatement	  	79
			
		  	ARTICLE IX	  	
			
		  	AMENDMENT, SUPPLEMENT AND WAIVER	  	
			
	 SECTION 9.1
	  	Without Consent of Holders of the Notes	  	79
	 SECTION 9.2
	  	With Consent of Holders of Notes	  	80
	 SECTION 9.3
	  	Compliance with Trust Indenture Act	  	82
	 SECTION 9.4
	  	Revocation and Effect of Consents	  	82
	 SECTION 9.5
	  	Notation on or Exchange of Notes	  	82
	 SECTION 9.6
	  	Trustee to Sign Amendments, Etc.	  	82

  

 -iii- 

					
		  	ARTICLE X	  	
			
		  	NOTE GUARANTEES	  	
			
	 SECTION 10.1
	  	Note Guarantees	  	83
	 SECTION 10.2
	  	Execution and Delivery of Note Guarantee	  	84
	 SECTION 10.3
	  	Severability	  	85
	 SECTION 10.4
	  	Limitation of Guarantors’ Liability	  	85
	 SECTION 10.5
	  	Releases Following Sale of Assets	  	85
	 SECTION 10.6
	  	Benefits Acknowledged	  	86
	 SECTION 10.7
	  	Future Guarantors	  	86
			
		  	ARTICLE XI	  	
			
		  	MISCELLANEOUS	  	
			
	 SECTION 11.1
	  	Trust Indenture Act Controls	  	86
	 SECTION 11.2
	  	Notices	  	86
	 SECTION 11.3
	  	Communication by Holders of Notes with Other Holders of Notes	  	87
	 SECTION 11.4
	  	Certificate and Opinion as to Conditions Precedent	  	87
	 SECTION 11.5
	  	Statements Required in Certificate or Opinion	  	88
	 SECTION 11.6
	  	Rules by Trustee and Agents	  	88
	 SECTION 11.7
	  	No Personal Liability of Directors, Officers, Employees, Stockholders and the Trustee	  	88
	 SECTION 11.8
	  	Governing Law and Waiver of Jury Trial	  	89
	 SECTION 11.9
	  	No Adverse Interpretation of Other Agreements	  	89
	 SECTION 11.10
	  	Successors	  	89
	 SECTION 11.11
	  	Severability	  	89
	 SECTION 11.12
	  	Counterpart Originals	  	89
	 SECTION 11.13
	  	Table of Contents, Headings, Etc.	  	90
	 SECTION 11.14
	  	Qualification of Indenture	  	90
	 SECTION 11.15
	  	Force Majeure	  	90
			
		  	ARTICLE XII	  	
			
		  	COVENANTS APPLICABLE TO DELAWARE	  	
			
	 SECTION 12.1
	  	Limitation on Restricted Payments	  	90
	 SECTION 12.2
	  	Incurrence of Debt and Issuance of Preferred Stock	  	96
	 SECTION 12.3
	  	Provision of Financial Information	  	99
	 SECTION 12.4
	  	Suspension of Covenants Applicable to Delaware	  	100
	 SECTION 12.5
	  	Corporate Existence	  	101
	 SECTION 12.6
	  	Books and Records	  	101

  

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 EXHIBITS 
  

			
	 Exhibit A
	  	FORM OF 10.75% SENIOR NOTE
	 Exhibit B
	  	FORM OF NOTATIONAL GUARANTEE
	 Exhibit C
	  	FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A
	 Exhibit D
	  	FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

  

 -v- 

 This Indenture, dated as of July 9, 2009, is by and among Toys “R” Us
Property Company I, LLC (formerly known as TRU 2005 RE Holding Co. LLC), a Delaware limited liability company (the “Company”), the Guarantors (as defined herein), Toys “R” Us, Inc. (“Parent”) (with respect
to Article XII and provisions related thereto only) and The Bank of New York Mellon, as trustee (the “Trustee”). 
 Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the holders of (i) the Company’s 10.75% Senior Notes due 2017 issued on the date hereof that contain the restrictive legend
in Exhibit A (the “Initial Notes”) and (ii) Exchange Notes issued in exchange for the Initial Notes pursuant to the Registration Rights Agreement or pursuant to an effective registration statement under the Securities
Act without the restrictive legends in Exhibit A (the “Exchange Notes” and together with the Initial Notes, the “Notes”). 
 ARTICLE I 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 SECTION 1.1 Definitions. 
 “Accreted Value” means, as of any date of determination, the sum of (1) the initial Accreted Value (which is $973.99 per $1,000 in principal amount at maturity of Notes) and (2) the portion of the excess of the
principal amount at maturity of each Note over such initial Accreted Value which shall have been amortized up to but not including such date, such amount to be so amortized on a daily basis and compounded semiannually on January 15 and
July 15 at the rate of 10.75% per annum from the date of original issuance of the Notes up to but not including the date of determination, computed on the basis of a 360-day year of twelve 30-day months. 
 “Acquired Debt” means Debt (1) of a Person existing at the time such Person becomes a Subsidiary (in the case of
Delaware, a Restricted Subsidiary) or (2) assumed in connection with the acquisition of assets from such Person. Acquired Debt shall be deemed to have been Incurred, with respect to clause (1) of the preceding sentence, on the date such
Person becomes a Subsidiary (in the case of Delaware, a Restricted Subsidiary) and, with respect to clause (2) of the preceding sentence, on the date of consummation of such acquisition of assets. 
 “Additional Interest” means all additional interest then owing on the Notes pursuant to the Registration Rights Agreement.

 “Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or
under direct or indirect common control with such Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings that correspond to the foregoing. 

 “Agent” means any Registrar, Paying Agent (so long as Trustee serves in
such capacity) or co-Registrar. 
 “Agent’s Message” means a message transmitted by DTC to, and received
by, the Depositary and forming a part of the Book-Entry Confirmation, which states that DTC has received an express acknowledgment from each participant in DTC tendering the Notes that such participants have received the letter of transmittal and
agree to be bound by the terms of the letter of transmittal and the Company may enforce such agreement against such participants. 
 “Applicable Premium” means, with respect to a Note, the greater of 
 (1) 1.0% of the
then outstanding principal amount of such Note and 
 (2) (a) the present value of all remaining required
interest and principal payments due on such Note and all premium payments relating to such Note assuming a redemption date of July 15, 2013, computed using a discount rate equal to the Treasury Rate plus 50 basis points, minus 

 (b) the then outstanding principal amount of such Note minus  
 (c) accrued interest paid on the date of redemption. 
 “Asset Sale” means any transfer, conveyance, sale, lease or other disposition (including, without limitation, dispositions
pursuant to any consolidation or merger) by the Company or any of its Subsidiaries to any Person (other than to the Company or one or more of its Subsidiaries) in any single transaction or series of transactions of: 
 (i) Equity Interests in another Person; 
 (ii) any other property or assets; 
 provided, however, that the term “Asset Sale” shall exclude: 
 (a) any asset disposition permitted by Article V that constitutes a disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole; 
 (b) any transfer, conveyance, sale, lease or other disposition of Equity Interests or other property or assets, the gross
proceeds of which (exclusive of indemnities) do not exceed in any one or related series of transactions $5.0 million; 
 (c) sales or other dispositions of cash or Cash Equivalents or obsolete or worn out equipment in the ordinary course of business; 
 (d) a Restricted Payment or Permitted Investment that is otherwise permitted by this Indenture; 
  

 -2- 

 (e) the creation of a Lien (but not the sale or other disposition of the
property subject to such Lien); 
 (f) leases, assignments or subleases in the ordinary course of business to
third persons not interfering in any material respect with the business of the Company or any of its Subsidiaries and otherwise in accordance with the provisions of this Indenture; 
 (g) any disposition by a Subsidiary to the Company or by the Company or a Subsidiary to a Subsidiary; 
 (h) dispositions of accounts receivable in connection with the collection or compromise thereof in the ordinary course of
business and consistent with past practice; and 
 (i) foreclosures on assets to the extent it would not
otherwise result in a Default or Event of Default. 
 For purposes of this definition, any series of related transactions that,
if effected as a single transaction, would constitute an Asset Sale, shall be deemed to be a single Asset Sale effected when the last such transaction which is a part thereof is effected. 
 “Asset Sale Offer” means an Offer to Purchase required to be made by the Company pursuant to Section 4.10 to
all Holders. 
 “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time of
determination, the present value (discounted at the rate of interest implicit in such transaction) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction
(including any period for which such lease has been or may be extended). 
 “Bankruptcy Law” means Title 11,
U.S. Code or any similar federal or state law for the relief of debtors. 
 “Beneficial Owner” has the meaning
assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person,” as such term is used in Section 13(d)(3) of the Exchange Act, such
“person” shall be deemed to have beneficial ownership of all securities that such “person” has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent
condition. 
 “Board of Directors” means (i) with respect to a corporation (including Delaware), the board
of directors of such corporation or any duly authorized committee thereof; (ii) with respect to any limited liability company, the managing member(s) thereof and (iii) with respect to any other entity, the board of directors or similar
body of the general partner or managers of such entity or any duly authorized committee thereof. 
  

 -3- 

 “Board Resolution” means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company or any Subsidiary to have been duly adopted by the Board of Directors, and to be in full force and effect on the date of such certification and delivered to the Trustee. 
 “Business Day” means any day other than a Legal Holiday. 
 “Capitalized 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 and reflected as a liability on a balance sheet (excluding the footnotes thereto) in accordance with GAAP, including, for the avoidance of doubt, the Attributable Debt
in respect of Sale and Leaseback Transactions. 
 “Capital Stock” means (i) in the case of a corporation,
capital stock; (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock; (iii) in the case of a partnership or limited liability
company, partnership or membership interests (whether general or limited); 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. For the avoidance of doubt, non-economic interests held by “independent members” shall not constitute Capital Stock. 
 “Captive Insurance Subsidiary” means TRU (Vermont), Inc. and any successor thereto, to the extent such Person constitutes a Subsidiary of Delaware. 
 “Cash Equivalents” means: 
 (1) United States dollars; 
 (2) euros or any national currency of
any participating member state of the EMU or such local currencies held by Delaware and its Restricted Subsidiaries from time to time in the ordinary course of business; 
 (3) securities issued or directly and fully and unconditionally guaranteed or insured by the U.S. government (or any agency
or instrumentality thereof the securities of which are unconditionally guaranteed as a full faith and credit obligation of the U.S. government) with maturities of 24 months or less from the date of acquisition; 
 (4) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank having capital and surplus of not less than $500.0 million in the case of U.S. banks and $100.0 million
(or the U.S. dollar equivalent as of the date of determination) in the case of non-U.S. banks; 
 (5) repurchase
obligations for underlying securities of the types described in clauses (3) and (4) entered into with any financial institution meeting the qualifications specified in clause (4) above; 
  

 -4- 

 (6) commercial paper rated at least P-1 by Moody’s or at least A-1 by
S&P and in each case maturing within 24 months after the date of creation thereof; 
 (7) marketable
short-term money market and similar securities having a rating of at least P-2 or A-2 from either Moody’s or S&P, respectively (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24 months after the date of creation thereof; 
 (8)
investment funds investing at least 95% of their assets in securities of the types described in clauses (1) through (7) above; 
 (9) readily marketable direct obligations issued by any state, commonwealth or territory of the United States or any political subdivision or taxing authority thereof having an Investment Grade Rating
from either Moody’s or S&P with maturities of 24 months or less from the date of acquisition; 
 (10)
Debt or debt securities issued by Persons (other than Parent, Delaware or any of their respective subsidiaries) with a rating of A or higher from S&P or A2 or higher from Moody’s with maturities of 24 months or less from the date of
acquisition; and 
 (11) Investments with average maturities of 24 months or less from the date of acquisition in
money market funds rated AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or the equivalent thereof) or better by Moody’s. 
 Notwithstanding the foregoing, Cash Equivalents shall include amounts denominated in currencies other than those set forth in clauses (1) and (2) above; provided that such amounts are
converted into any currency listed in clauses (1) and (2) as promptly as practicable and in any event within ten Business Days following the receipt of such amounts. 
 “Certificated Notes” means Notes that are in the form of Exhibit A attached hereto, other than the Global Notes.

 “Change of Control” means: 
 (1) the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), other than one or more of the Permitted Holders,
in a single transaction or in a related series of transaction, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of
50% or more of the total voting power of the Voting Interests of Parent or any of its direct or indirect parent companies holding, directly or indirectly, 100% of the Voting Interests of Parent (together with Parent, a “Parent Company”),

  

 -5- 

 (2) a Parent Company ceases to own, directly or indirectly, more than 50% of
the Voting Interests in Delaware, 
 (3) the Company sells, conveys, transfers or leases (either in one
transaction or a series of related transactions) all or substantially all of its assets (determined on a consolidated basis) to, or merges or consolidates with, a Person other than a Subsidiary of the Company, or 
 (4) the Company ceases to be a direct or indirect, Wholly Owned Subsidiary of a Parent Company. 
 For the avoidance of doubt, the transactions contemplated by the Master Lease shall not be subject to the foregoing. 
 “Commission” means the U.S. Securities and Exchange Commission. 
 “Company” has the meaning set forth in the preamble hereto until a successor replaces it in accordance with the applicable
provisions of this Indenture and, thereafter, means the successor thereto. 
 “Consolidated Depreciation and
Amortization Expense” means with respect to any Person for any period, the total amount of depreciation and amortization expense, including the amortization of deferred financing fees, debt issuance costs, commissions, fees and expenses and
capitalized software expenditures, of such Person and its Subsidiaries (in the case of Delaware, its Restricted Subsidiaries) for such period on a consolidated basis and otherwise determined in accordance with GAAP. 
 “Consolidated Interest Expense” means, with respect to any Person for any period, without duplication, the sum of:

 (1) consolidated interest expense of such Person and its Restricted Subsidiaries for such period, to the
extent such expense was deducted (and not added back) in computing Consolidated Net Income (including (a) amortization of original issue discount resulting from the issuance of Debt at less than par, (b) all commissions, discounts and
other fees and charges owed with respect to letters of credit or bankers’ acceptances, (c) non-cash interest payments (but excluding any non-cash interest expense attributable to the movement in the mark to market valuation of Hedging
Obligations or other derivative instruments pursuant to GAAP), (d) the interest component of Capitalized Lease Obligations, and (e) net payments, if any, pursuant to interest rate Hedging Obligations with respect to Debt, and excluding
(x) any Additional Interest and any comparable “additional interest” with respect to other securities, (y) amortization of deferred financing fees, debt issuance costs, commissions, fees and expenses and (z) any expensing of
bridge, commitment and other financing fees; plus  
 (2) consolidated capitalized interest of such Person
and its Restricted Subsidiaries for such period, whether paid or accrued; less  
  

 -6- 

 (3) interest income for such period. 
 For purposes of this definition, interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by such
Person to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP. 
 “Consolidated Net Income” means, with respect to any Person for any period, the aggregate of the net income of such Person and its Restricted Subsidiaries for such period, on a consolidated basis, and otherwise determined
in accordance with GAAP; provided that 
 (1) any after-tax effect of extraordinary or non-recurring gains
or losses (less all fees and expenses relating thereto) shall be excluded; 
 (2) the net income for such period
shall not include the cumulative effect of a change in accounting principle(s) during such period; 
 (3) any net
after-tax gains or losses attributable to asset dispositions other than in the ordinary course of business (as determined in good faith by the Board of Directors of such Person) and any gain (or loss) realized upon the sale or other disposition of
any Capital Stock of any Person shall be excluded; 
 (4) the net income for such period of any Person that is
not a Subsidiary of such Person, or that is an Unrestricted Subsidiary, or that is accounted for by the equity method of accounting, shall be excluded; provided that, to the extent not already included, Consolidated Net Income of such Person shall
be (A) increased by the amount of dividends or other distributions that are actually paid in cash (or to the extent converted into cash) to the referent Person or a Restricted Subsidiary thereof in respect of such period and (B) decreased
by the amount of any equity of Delaware in a net loss of any such Person for such period to the extent Delaware has funded such net loss; 
 (5) non-cash compensation charges, including any such charges arising from stock options, restricted stock grants, stock appreciation rights or other equity-incentive programs shall be excluded;

 (6) any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to
the early extinguishment of Debt shall be excluded; 
 (7) the effect of any non-cash items resulting from any
amortization, write-up, write-down or write-off of assets (including intangible assets, goodwill and deferred financing costs but excluding inventory) in connection with any acquisition, merger, consolidation or similar transaction or any other
non-cash impairment changes incurred subsequent to the Issue Date (excluding any such non-cash item to the extent that it represents an accrual of or reserve for cash expenditures in any future period except to the extent such item is subsequently
reversed) shall be excluded; 
  

 -7- 

 (8) any fees and expenses incurred during such period, or any amortization
thereof for such period, in connection with any acquisition, disposition, recapitalization, Investment, Asset Sale, issuance or repayment of Debt, issuance of Equity Interests, refinancing transaction or amendment or modification of any debt
instrument (in each case, including any such transaction consummated prior to the Issue Date and any such transaction undertaken but not completed) and any charges or non-recurring merger costs incurred during such period as a result of any such
transaction shall be excluded; and 
 (9) effects of adjustments (including the effects of such adjustments
pushed down to such Person and its Subsidiaries) in the property and equipment, inventory and other intangible assets, deferred revenue and debt line items in such Person’s consolidated financial statements pursuant to GAAP resulting from the
application of purchase accounting in relation to any consummated acquisition or the amortization or write-off of any amounts thereof, net of taxes, shall be excluded. 
 Notwithstanding the foregoing, for the purpose of clause (3) of Section 12.1 only, there shall be excluded from Consolidated Net Income any income arising from any sale or other
disposition of Restricted Investments made by Delaware and its Restricted Subsidiaries, any repurchases and redemptions of Restricted Investments made by Delaware and its Restricted Subsidiaries, any repayments of loans and advances which constitute
Restricted Investments made by Delaware and any Restricted Subsidiary, any sale of the stock of an Unrestricted Subsidiary or any distribution or dividend from an Unrestricted Subsidiary, in each case only to the extent such amounts increase the
amount of Restricted Payments permitted under clause (3)(c) of the first paragraph of Section 12.1. 
 “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in Section 11.2 hereof or such other address as to which the Trustee may give notice to the Company. 
 “Credit Agreement” means that certain credit agreement, dated as of July 21, 2005 (as amended and restated as of
June 24, 2009) among Delaware, the additional borrowers party thereto, Bank of America, N.A., as Administrative Agents, and the lenders party thereto, including any related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended, restated, supplemented, modified, renewed, refunded, replaced (whether at maturity or thereafter) or refinanced from time to time in one or more agreements, commercial paper facilities
or indentures (in each case with the same or new agents, institutional lenders or institutional investors), including any agreement adding or changing the borrower or any guarantor or extending the maturity thereof or otherwise restructuring or
replacing all or any portion of the indebtedness thereunder or increasing the amount loaned or issued thereunder or altering the maturity thereof (provided that such increase in borrowings is permitted under Section 12.2). 
 “Credit Facilities” means, with respect to Delaware or any of its Restricted Subsidiaries, the Credit Agreement and one or
more debt facilities or other financing arrangements (including, without limitation, commercial paper facilities or indentures) providing for revolving credit loans, term loans, letters of credit or other indebtedness, including any notes,
mortgages, guarantees, collateral documents, instruments and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements or

  

 -8- 

 
refundings thereof and any indentures or credit facilities or commercial paper facilities that replace, refund or refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility or indenture that increases the amount permitted to be borrowed thereunder or alters the maturity thereof or adds Restricted Subsidiaries as additional borrowers or
guarantors thereunder thereof (provided that such increase in borrowings is permitted under Section 12.2) and whether by the same or any other agent, lender or group of lenders. 
 “Cumulative Free Cash Flow” means, for any period means the sum, without duplication, of: 
 (1) the consolidated net income of the Company and its Subsidiaries, in accordance with GAAP; provided that (i) the net
income for such period of any Person that is not a Subsidiary of the Company, or that is accounted for by the equity method of accounting, shall be excluded; provided that, to the extent not already included, the net income of the Company
shall be (A) increased by the amount of dividends or other distributions that are actually paid in cash (or to the extent converted into cash) to the Company or a Subsidiary thereof in respect of such period and (B) decreased by the amount
of any equity of the Company in a net loss of any such Person for such period to the extent the Company has funded such net loss, and (ii) the aggregate amount of (A) all other non-cash charges, expenses or losses reducing consolidated net
income (excluding any non-cash charge, expense or loss that results in an accrual of a reserve for cash charges in any future period and any non-cash charge, expense or loss relating to write-offs, write-downs or reserves with respect to accounts or
inventory) for such period, and (B) all non-cash gains or other items increasing consolidated net income (other than the accrual of revenue or recording of receivables in the ordinary course of business) for such period, shall be excluded,
plus 
 (2) Consolidated Depreciation and Amortization Expense of the Company and its Subsidiaries, in
accordance with GAAP, less  
 (3) capital expenditures made during such period (other than to the extent
such capital expenditures are paid by Delaware or any of its Subsidiaries pursuant to the Master Lease), plus  
 (4) the excess, if any, of the amount of net rent received or receivable in cash during such period over the amount of net rent income in accordance with GAAP for such period, less 
 (5) the excess, if any, of the amount of net rent income in accordance with GAAP for such period over the amount of net rent
received or receivable in cash during such period. 
 For purposes of clauses (4) and (5) above, “net rent” shall mean rent
income or rent received or receivable minus the amount of rent expense or rent paid or payable, as the case may be (whether a positive or negative number). 
  

 -9- 

 For the avoidance of doubt, Cumulative Free Cash Flow shall not include (x) any proceeds, gains or
losses from any sale or disposition of assets or (y) any payments from Delaware or any of its Subsidiaries pursuant to Section 1.3 of the Master Lease. 
 “Cumulative Free Cash Flow Offer Amount” means (x) 50% of Cumulative Free Cash Flow of the Company accrued on a cumulative basis during the period (taken as one accounting period)
from the beginning of the first full fiscal quarter after which the Issue Date occurs and ending on the last day of the fiscal quarter immediately preceding the date of calculation less (y) aggregate proceeds utilized to purchase Notes in each
Free Cash Flow Offer since the Issue Date less (z) the aggregate principal amount of Restricted Payments made pursuant to clause (4) of the first paragraph of Section 4.7. 
 “Debt” means with respect to any Person, without duplication: 
 (1) any indebtedness of such Person, whether or not contingent: 
 (a) in respect of borrowed money; 
 (b) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’ acceptances (or,
without duplication, reimbursement agreements in respect thereof); 
 (c) representing the balance deferred and
unpaid of the purchase price of any property (including Capitalized Lease Obligations), except (i) any such balance that constitutes a trade payable or similar obligation to a trade creditor, in each case accrued in the ordinary course of
business and (ii) any earn-out obligations until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP; or 
 (d) representing net obligations under any Hedging Obligations; 
 if and to the extent that any of
the foregoing Debt (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP; 
 (2) to the extent not otherwise included, any obligation by such Person to be liable for, or to pay, as obligor, guarantor or
otherwise on, the obligations of the type referred to in clause (1) of a third Person (whether or not such items would appear upon the balance sheet of the such obligor or guarantor), other than by endorsement of negotiable instruments for
collection in the ordinary course of business; 
 (3) to the extent not otherwise included, the obligations of
the type referred to in clause (1) of a third Person secured by a Lien on any asset owned by such first Person, whether or not such Indebtedness is assumed by such first Person; and 
 (4) the maximum fixed redemption or repurchase price of Disqualified Stock in such Person at the time of determination.

  

 -10- 

 For purposes of the foregoing: (a) the maximum fixed repurchase price of any Disqualified Stock that
does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were repurchased on any date on which Debt shall be required to be determined pursuant to the Indenture;
provided that, if such Disqualified Stock is not then permitted to be repurchased, the repurchase price shall be the book value of such Disqualified Stock; (b) the amount outstanding at any time of any Debt issued with original issue discount
is the principal amount of such Debt less the remaining unamortized portion of the original issue discount of such Debt at such time as determined in conformity with GAAP, but such Debt shall be deemed Incurred only as of the date of original
issuance thereof; (c) the amount of any Debt described in clause (1)(d) is the net amount payable (after giving effect to permitted set off) if such Swap Contracts or Hedging Obligations are terminated at that time due to default of such
Person; (d) the amount of any Debt described in clause (2) above shall be the maximum liability under any such Guarantee; (e) the amount of any Debt described in clause (3) above shall be the lesser of (I) the maximum amount
of the obligations so secured and (II) the Fair Market Value of such property or other assets; and (f) interest, fees, premium, and expenses and additional payments, if any, will not constitute Debt. 
 Notwithstanding the foregoing, in connection with the purchase of any business, the term “Debt” will exclude (x) customary
indemnification obligations and (y) post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment is otherwise contingent; provided that, at
the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid within 60 days thereafter. 
 The amount of Debt of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described
above and the maximum liability, only upon the occurrence of the contingency giving rise to the obligations, of any contingent obligations at such date; provided that in the case of Debt sold at a discount, the amount of such Debt at any time will
be the accreted value thereof at such time. If such Person or any of its Subsidiaries (in the case of Delaware, any of its Restricted Subsidiaries) directly or indirectly Guarantees Debt of a third Person, the amount of Debt of such Person shall
give effect to the Incurrence of such Guaranteed Debt as if such Person or such Subsidiary had directly Incurred or otherwise assumed such Guaranteed Debt. 
 “Default” means any event that is, or after notice or passage of time, or both, would be, an Event of Default. 
 “Delaware” means Toys “R” Us - Delaware, Inc. 
 “Delaware Permitted Investment” means 
 (1) any Investment by Delaware in any Restricted Subsidiary or by a Restricted Subsidiary in Delaware or another Restricted
Subsidiary; 
 (2) any Investment in cash and Cash Equivalents or Investment Grade Securities; 
  

 -11- 

 (3) any Investment in property or assets owned or used by Delaware in the
ordinary course of business; 
 (4) any Investment by Delaware or any Restricted Subsidiary in a Person that is
engaged in a Permitted Business if as a result of such Investment (A) such Person becomes a Restricted Subsidiary or (B) such Person, in one transaction or a series of related transactions, is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is liquidated into, Delaware or a Restricted Subsidiary and, in each case, any Investment held by such Person; provided, that such Investment was not acquired by such Person in
contemplation of such acquisition, merger, consolidation or transfer and that any Investment held by such Person does not constitute a material amount of the total purchase price or Fair Market Value of such Person; 
 (5) any Investment in securities or other assets received in connection with disposition of assets; 
 (6) any Investment existing on the Issue Date or required to be made pursuant to any agreement or obligation of Delaware or
any Restricted Subsidiary in effect on the Issue Date and any modification, replacement, renewal or extension thereof; provided that the amount of any such Investment may be increased (x) as required by the terms of such Investment as in
existence on the Issue Date or (y) as otherwise permitted under the Indenture; 
 (7) loans and advances to
employees and any guarantees thereof made in the ordinary course of business, but in any event not in excess of $5.0 million in the aggregate outstanding at any one time; 
 (8) any Investment acquired by Delaware or any Restricted Subsidiary (A) in exchange for any other Investment or
accounts receivable held by Delaware or Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the issuer of such other Investment or accounts receivable or (B) as a result of a
foreclosure by Delaware or Restricted Subsidiary with respect to any secured Investment or other transfer of title with respect to any secured Investment in default; 
 (9) Hedging Obligations permitted under clause (8) of the definition of “Permitted Debt” and any Swap
Contracts; 
 (10) loans and advances to officers, directors and employees for business-related travel expenses,
moving expenses and other similar expenses, in each case incurred in the ordinary course of business; 
 (11) any
Investment by Delaware or a Restricted Subsidiary having an aggregate fair market value, taken together with all other Investments made pursuant to this clause (11) that are at that time outstanding, not to exceed $150 million (with the fair
market value of each Investment being measured at the time made and without giving effect to subsequent changes in value); 
  

 -12- 

 (12) Investments the payment for which consists of Equity Interests of
Delaware or any of its direct or indirect parent corporations (exclusive of Disqualified Stock); 
 (13)
guarantees of Debt permitted under Section 12.2 and performance guarantees consistent with past practice; 
 (14) Investments consisting of licensing of intellectual property pursuant to joint marketing arrangements with other Persons; 
 (15) Investments to secure obligations of the Captive Insurance Subsidiary in the ordinary course of business; 
 (16) Investments consisting of earnest money deposits required in connection a purchase agreement or other acquisition; 
 (17) Investments consisting of purchases and acquisitions of inventory, supplies, material or equipment; and 
 (18) any Investment in any Subsidiary or any joint venture in connection with intercompany cash management arrangements or
related activities arising in the ordinary course of business. 
 “Depositary” means, with respect to the Notes
issuable or issued in whole or in part in global form, the Person specified in Section 2.3 hereof as the Depositary with respect to the Notes, until a successor shall have been appointed and become such pursuant to
Section 2.6 hereof, and, thereafter, “Depositary” shall mean or include such successor. 
 “DTC” means The Depository Trust Company. 
 “Disqualified Stock” means, with respect
to any Person, any Capital Stock of such Person which, by its terms (or by the terms of any security into which it is convertible or for which it is putable or exchangeable), or upon the happening of any event, matures or is mandatorily redeemable
(other than solely as a result of a change of control or asset sale), pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (other than solely as a result of a change of control or asset sale), in
whole or in part, in each case prior to the date 91 days after the earlier of the final maturity date of the Notes or the date the Notes are no longer outstanding; provided that if such Capital Stock is issued to any plan for the benefit of
employees of Delaware or any of its Subsidiaries or by any such plan to such employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be required to be repurchased by Delaware or any of its Subsidiaries in order to
satisfy applicable statutory or regulatory obligations. 
 “EBITDA” means, with respect to any Person for any
period, the Consolidated Net Income of such Person for such period. 
  

 -13- 

 (1) increased (without duplication) by: 
 (a) provision for taxes based on income or profits or capital gains, including, without limitation, state, franchise and
similar taxes and foreign withholding taxes of such Person paid or accrued during such period to the extent the same was deducted (and not added back) in computing Consolidated Net Income; plus  
 (b) Fixed Charges of such Person for such period (including (x) net losses on Hedging Obligations or other derivative
instruments entered into for the purpose of hedging interest rate risk and (y) costs of surety bonds in connection with financing activities, in each case, to the extent included in Fixed Charges) to the extent the same was deducted (and not
added back) in calculating such Consolidated Net Income; plus  
 (c) Consolidated Depreciation and
Amortization Expense of such Person for such period to the extent the same were deducted (and not added back) in computing Consolidated Net Income; plus  
 (d) any other non-cash charges, including any write-offs or write-downs, reducing Consolidated Net Income for such period
(provided that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA to such extent, and excluding
amortization of a prepaid cash item that was paid in a prior period); plus  
 (e) the amount of any
minority interest expense consisting of Subsidiary income attributable to minority equity interests of third parties in any non-Wholly Owned Subsidiary deducted (and not added back) in such period in calculating Consolidated Net Income; plus 

 (f) the amount of management, monitoring, consulting, and advisory fees, and related expenses paid in such
period pursuant to the Management Agreement; plus  
 (g) any costs or expense incurred by the such Person
or a Restricted Subsidiary pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, to the extent that such cost or expenses are
funded with cash proceeds contributed to the capital of such Person or net cash proceeds of an issuance of Equity Interests of such Person (other than Disqualified Stock) solely to the extent that such net cash proceeds are excluded from the
calculation set forth in clause (3) of the first paragraph of Section 12.1; 
 (2) decreased by
(without duplication) non-cash gains increasing Consolidated Net Income of such Person for such period, excluding any non-cash gains to the extent they represent the reversal of an accrual or reserve for, a potential cash item that reduced EBITDA in
any prior period; and 
  

 -14- 

 (3) increased or decreased by (without duplication): 
 (a) any net gain or loss resulting in such period from Hedging Obligations and the application of Statement of Financial
Accounting Standards No. 133; plus or minus, as applicable, 
 (b) any net gain or loss resulting in such
period from currency translation gains or losses related to currency remeasurements of Debt (including any net loss or gain resulting from hedge agreements for currency exchange risk). 
 “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding
any debt security that is convertible into, or exchangeable for, Capital Stock). 
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 “Exchange Notes” has the meaning set forth in the Preamble.

 “Exchange Offer” means an offer that may be made by the Company pursuant to the Registration Rights
Agreement to exchange Initial Notes for the Exchange Notes. 
 “Existing Debt” means Debt of Delaware and its
Subsidiaries (other than Debt under the Credit Agreement) in existence on the Issue Date. 
 “Existing Parent
Debt” means (i) the $500.0 million aggregate principal amount of 7.625% Notes due 2011 of Parent outstanding on the Issue Date, issued under the indenture dated July 24, 2001 between Parent and The Bank of New York Mellon, as
trustee, (ii) the $400.0 million aggregate principal amount of 7.875% Notes due 2013 of Parent outstanding on the Issue Date, issued under the indenture dated May 28, 2002 between Parent and The Bank of New York Mellon, as trustee and
(iii) the $400.0 million aggregate principal amount of 7.375% Notes due 2018 of Parent outstanding on the Issue Date, issued under the indenture dated May 28, 2002 between Parent and The Bank of New York Mellon, as trustee. 
 “Expiration Date” has the meaning set forth in the definition of “Offer to Purchase.” 
 “Fair Market Value” means, with respect to the consideration received or paid in any transaction or series of transactions,
the fair market value thereof as determined in good faith by the Company or Parent, as applicable. 
 “Fixed Charge
Coverage Ratio” means, with respect to any Person for any period consisting of such Person and its Restricted Subsidiaries’ most recently ended four fiscal quarters for which internal financial statements are available, the ratio of
EBITDA of such Person for such period to the Fixed Charges of such Person for such period. In the event that Delaware or any Restricted Subsidiary incurs, assumes, guarantees or repays any Debt (other than Debt incurred under any revolving credit
facility unless such Debt has been permanently repaid and has not been replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated
but

  

 -15- 

 
on or prior to the date on which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated
giving pro forma effect to such incurrence, assumption, guarantee or repayment of Debt, or such issuance or redemption of Disqualified Stock or Preferred Stock, as if the same had occurred at the beginning of the applicable four-quarter period and
as if Delaware or Restricted Subsidiary had not earned the interest income actually earned during such period in respect of such cash used to repay, repurchase, defease or otherwise discharge such Debt. 
 If Investments, acquisitions, dispositions, mergers or consolidations (as determined in accordance with GAAP) have been made by Delaware or
any Restricted Subsidiary during the four-quarter reference period or subsequent to such reference period and on or prior to or simultaneously with the Calculation Date, then the Fixed Charge Coverage Ratio shall be calculated on a pro forma basis
assuming that all such Investments, acquisitions, dispositions, mergers or consolidations (and the change in any associated Fixed Charge obligations and the change in EBITDA resulting therefrom) had occurred on the first day of the four-quarter
reference period. 
 If since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was
merged with or into Delaware or any Restricted Subsidiary since the beginning of such period) shall have made any Investment, acquisition, disposition, merger or consolidation that would have required adjustment pursuant to this definition, then the
Fixed Charge Coverage Ratio shall be calculated giving pro forma effect thereto for such period as if such Investment, acquisition, disposition, merger or consolidation had occurred at the beginning of the applicable four-quarter period. 

For purposes of this definition, whenever pro forma effect is to be given to an Investment, acquisition, disposition, merger or
consolidation and the amount of income or earnings relating thereto, the pro forma calculations shall be determined in good faith by a responsible financial or accounting Officer of Delaware and shall comply with the requirements of Rule 11-02 of
Regulation S-X promulgated by the Commission. 
 If any Debt bears a floating rate of interest and is being given pro forma
effect, the interest on such Debt shall be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligations applicable to such Debt if the related hedge has a
remaining term in excess of twelve months). Interest on a Capitalized Lease Obligation shall be deemed to accrue at the interest rate reasonably determined by a responsible financial or accounting officer of Delaware to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP. Interest on Debt that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall
be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as Delaware may designate. 
 “Fixed Charges” means, with respect to any Person for any period, the sum of, without duplication, (a) Consolidated Interest Expense of such Person for such period, (b) all cash
dividends paid, accrued and/or scheduled to be paid or accrued during such period (excluding items eliminated in consolidation) on any series of Preferred Stock of such Person and its Subsidiaries and (c) all cash dividends paid, accrued and/or
scheduled to be paid or accrued during such period (excluding items eliminated in consolidation) on any series of Disqualified Stock of such Person and its Subsidiaries. 
  

 -16- 

 “GAAP” means generally accepted accounting principles in the United States,
which are in effect as of the Issue Date. 
 “Global Note Legend” means the legend identified as such in
Section 2.6(e)(ii) hereto. 
 “Global Notes” means the Notes in global form and registered in the
name of the Depositary or its nominee that are substantially in the form of Exhibit A attached hereto. 
 “Guarantee” means, as applied to any Debt of another Person, a guarantee (other than by endorsement of negotiable instruments for collection in the normal course of business), direct or indirect, in any manner, of any part
or all of such Debt, and any direct or indirect obligation, contingent or otherwise, of a Person guaranteeing or having the effect of guaranteeing the Debt of any other Person in any manner (and “Guaranteed” and
“Guaranteeing” shall have meanings that correspond to the foregoing). 
 “Guarantor” means any
Person that executes a Note Guarantee in accordance with the provisions of the Indenture and their respective successors and assigns. 
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, commodity swap agreement,
commodity cap agreement, commodity collar agreement, foreign exchange contract, currency swap agreement or similar agreement providing for the transfer, modification or mitigation of interest rate, commodity or currency risks either generally or
under specific contingencies. 
 “Holder” means a Person in whose name a Note is registered in the security
register. 
 “Incur” means, with respect to any Debt or other obligation of any Person, to create, issue, incur
(by conversion, exchange or otherwise), assume, Guarantee or otherwise become liable in respect of such Debt or other obligation or the recording, as required pursuant to GAAP or otherwise, of any such Debt or other obligation on the balance sheet
of such Person; provided that a change in GAAP or an interpretation thereunder that results in an obligation of such Person that exists at such time becoming Debt shall not be deemed an Incurrence of such Debt. Debt otherwise Incurred by a Person
before it becomes a Subsidiary of such Person shall be deemed to be Incurred at the time at which such Person becomes a Subsidiary of the Company. “Incurrence,” “Incurred,” “Incurrable” and “Incurring” shall
have meanings that correspond to the foregoing. A Guarantee (i) by the Company or a Subsidiary of Debt Incurred by the Company or a Subsidiary or (ii) by Delaware or a Restricted Subsidiary of Debt Incurred by Delaware or a Restricted
Subsidiary, as applicable, shall not be a separate Incurrence of Debt. In addition, the following shall not be deemed a separate Incurrence of Debt: 
 (1) amortization of debt discount or accretion of principal with respect to a non-interest bearing or other discount security; 
  

 -17- 

 (2) the payment of regularly scheduled interest in the form of additional
Debt of the same instrument or the payment of regularly scheduled dividends on Equity Interests in the form of additional Equity Interests of the same class and with the same terms; 
 (3) the obligation to pay a premium in respect of Debt arising in connection with the issuance of a notice of redemption or
making of a mandatory offer to purchase such Debt; and 
 (4) unrealized losses or charges in respect of Hedging
Obligations. 
 “Indenture” means this Indenture, as amended or supplemented from time to time. 
 “Initial Purchasers” means Banc of America Securities LLC and the other initial purchasers party to the Purchase Agreement
entered into in connection with the offer and sale of the Notes. 
 “Investment” by any Person means any direct
or indirect loan, advance, guarantee for the benefit of (or other extension of credit) or capital contribution to (by means of any transfer of cash or other property or assets to another Person or any other payments for property or services for the
account or use of another Person) another Person, including, without limitation, the following: (i) the purchase or acquisition of any Equity Interest or other evidence of beneficial ownership in another Person; (ii) the purchase,
acquisition or Guarantee of the Debt of another Person; and (iii) the purchase or acquisition of the business or assets of another Person substantially as an entirety but shall exclude: (a) accounts receivable and other extensions of trade
credit in accordance with the Company’s (or Delaware’s, as applicable) customary practices; (b) the acquisition of property and assets from suppliers and other vendors in the normal course of business; (c) the acquisition of Real
Property in the normal course of business (but not the acquisition of any Person that owns Real Property); and (d) prepaid expenses and workers’ compensation, utility, lease and similar deposits, in the normal course of business.

 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s
and BBB- (or the equivalent) by S&P, or an equivalent rating by any other Rating Agency; provided that, (i) when such term refers to a person, the applicable rating shall be the corporate credit or corporate family rating and
(ii) when such term refers to a debt instrument, the applicable rating shall be the rating of such instrument. 
 “Investment Grade Securities” means: 
 (1) securities issued or directly and fully
guaranteed or insured by the United States government or any agency or instrumentality thereof (other than Cash Equivalents); 
 (2) debt securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments constituting loans or advances among the Company and its Subsidiaries; 

 

 -18- 

 (3) investments in any fund that invests exclusively in investments of the
type described in clauses (1) and (2) which fund may also hold immaterial amounts of cash pending investment or distribution; and 
 (4) corresponding instruments in countries other than the United States customarily utilized for high quality investments. 
 “Issue Date” means July 9, 2009. 
 “Legal
Holiday” means a Saturday, a Sunday or a day on which banking institutions in The City of New York, the city in which the principal Corporate Trust Office of the Trustee is located or at a place of payment are authorized or required by law,
regulation or executive order to remain closed. If a payment date in a place of payment is a Legal Holiday, payment shall be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period. 
 “Lien” means, with respect to any property or other asset, any mortgage, deed of trust, deed to
secure debt, pledge, hypothecation, security interest, lien (statutory or otherwise), charge, easement, encumbrance, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever on or with respect to
such property or other asset (including, without limitation, any conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing), provided that in no event shall a lease be deemed to
constitute a Lien. 
 “Management Agreement” means the Management Agreement to be dated as of July 21,
2005, by and among Parent, Bain Capital Partners, LLC, Bain Capital, Ltd., Toybox Holdings, LLC and Vornado Truck LLC, as in effect on the Issue Date. 
 “Master Lease” means that master lease agreement, dated as of December 9, 2005, among MAP Real Estate, LLC, Wayne Real Estate Company, LLC, TRU 2005 RE I, LLC, TRU 2005 RE II Trust,
as landlords, and Parent, as tenant, as amended and restated on the Issue Date and amended from time to time in compliance with the terms of the Indenture. 
 “Moody’s” means Moody’s Investors Service, Inc. and any successor to its rating agency business. 
 “Net Cash Proceeds” means, with respect to Asset Sales of any Person, cash and Cash Equivalents received, net of: (i) all out-of-pocket costs and expenses of such Person incurred in
connection with such a sale, including, without limitation, all legal, accounting, title and recording tax expenses, commissions and other fees and expenses incurred and all federal, state, foreign and local taxes arising in connection with such an
Asset Sale that are paid or required to be accrued as a liability under GAAP by such Person; (ii) all payments made by such Person on any Debt that is secured by such properties or other assets in accordance with the terms of any Lien upon or
with respect to such properties or other assets or that must, by the terms of such Lien or such Debt, or in order to obtain a necessary consent to such transaction or by applicable law, be repaid to any other Person (other than the Company or a
Subsidiary thereof) in connection with such Asset Sale; and (iii) all contractually required distributions and other payments

  

 -19- 

 
made to minority interest holders in Subsidiaries of such Person as a result of such transaction; provided that: (a) in the event that any consideration for an Asset Sale (which would
otherwise constitute Net Cash Proceeds) is required by (I) contract to be held in escrow pending determination of whether a purchase price adjustment will be made or (II) GAAP to be reserved against other liabilities in connection with such
Asset Sale, such consideration (or any portion thereof) shall become Net Cash Proceeds only at such time as it is released to such Person from escrow or otherwise; and (b) any non-cash consideration received in connection with any transaction,
which is subsequently converted to cash, shall become Net Cash Proceeds only at such time as it is so converted. For the avoidance of doubt, Net Cash Proceeds shall not include any payments from Delaware or any of its Subsidiaries pursuant to
Section 1.3 of the Master Lease. 
 “Non-Toys Lease” means any lease with parties other than Parent or its
Subsidiaries; provided that the number of properties covered by such leases shall not exceed 25% of the 359 properties owned by the Company as of the Issue Date (whether as fee-owned property or pursuant to leases or ground leases). 
 “Note Custodian” means the Trustee when serving as custodian for the Depositary with respect to the Global Notes, or any
successor entity thereto. 
 “Note Guarantee” means any guarantee of the Notes by any Guarantor pursuant to
this Indenture. 
 “Notes” has the meaning set forth in the preamble to this Indenture. 
 “Obligations” means any principal, premium, interest (including any interest accruing subsequent to the filing of a
petition in bankruptcy, reorganization or similar proceeding at the rate provided for in the documentation with respect thereto, whether or not such interest is an allowed claim under applicable state, federal or foreign law), penalties, fees,
indemnifications, reimbursements (including reimbursement obligations with respect to letters of credit and banker’s acceptances), damages and other liabilities, and guarantees of payment of such principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities, payable under the documentation governing any Debt. 
 “Offer” has the meaning set forth in the definition of “Offer to Purchase.” 
 “Offer to Purchase” means a written offer (the “Offer”) sent by the Company by first class mail, postage prepaid, to each Holder at his address appearing in the security register on the date of the Offer,
offering to purchase up to the aggregate principal amount of Notes set forth in such Offer at the purchase price set forth in such Offer (as determined pursuant to the Indenture). Unless otherwise required by applicable law, the offer shall specify
an expiration date (the “Expiration Date”) of the Offer to Purchase which shall be, subject to any contrary requirements of applicable law, not less than 30 days or more than 60 days after the date of mailing of such Offer and a
settlement date (the “Purchase Date”) for purchase of Notes within five business days after the Expiration Date. The Company shall notify the Trustee at least 15 days (or such shorter period as is acceptable to the Trustee) prior to
the mailing of the Offer of the Company’s obligation to make an Offer to Purchase, and the Offer shall be mailed by the Company or, at the

  

 -20- 

 
Company’s request, by the Trustee in the name and at the expense of the Company. The Offer shall contain all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Offer to Purchase. The Offer shall also state: 
 (1) the Section of the Indenture pursuant to
which the Offer to Purchase is being made; 
 (2) the Expiration Date and the Purchase Date; 
 (3) the aggregate principal amount of the outstanding Notes offered to be purchased pursuant to the Offer to Purchase
(including, if less than 100%, the manner by which such amount has been determined pursuant to Section 3.9) (the “Purchase Amount”); 
 (4) the purchase price to be paid by the Company for each $2,000 principal amount of Notes (and integral multiples of $1,000
in excess thereof) accepted for payment (the “Purchase Price”); 
 (5) that the Holder may
tender all or any portion of the Notes registered in the name of such Holder and that any portion of a Note tendered must be tendered in a minimum amount of $2,000 principal amount (and integral multiples of $1,000 in excess thereof); 
 (6) the place or places where Notes are to be surrendered for tender pursuant to the Offer to Purchase, if applicable;

 (7) that, unless the Company defaults in making such purchase, any Note accepted for purchase pursuant to the
Offer to Purchase will cease to accrue interest on and after the Purchase Date, but that any Note not tendered or tendered but not purchased by the Company pursuant to the Offer to Purchase will continue to accrue interest at the same rate;

 (8) that, on the Purchase Date, the Purchase Price will become due and payable upon each Note accepted for
payment pursuant to the Offer to Purchase; 
 (9) that each Holder electing to tender a Note pursuant to the
Offer to Purchase will be required to surrender such Note or cause such Note to be surrendered at the place or places set forth in the Offer prior to the close of business on the Expiration Date (such Note being, if the Company or the Trustee so
requires, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing); 
 (10) that Holders will be entitled to withdraw all or any portion of Notes tendered if the Company (or its paying agent)
receives, not later than the close of business on the Expiration Date, a facsimile transmission or letter setting forth the name of the Holder, the aggregate principal amount of the Notes the Holder tendered, the certificate number of the Note the
Holder tendered and a statement that such Holder is withdrawing all or a portion of his tender; 
  

 -21- 

 (11) that (a) if Notes having an aggregate principal amount less than
or equal to the Purchase Amount are duly tendered and not withdrawn pursuant to the Offer to Purchase, the Company shall purchase all such Notes and (b) if Notes having an aggregate principal amount in excess of the Purchase Amount are tendered
and not withdrawn pursuant to the Offer to Purchase, the Company shall purchase Notes having an aggregate principal amount equal to the Purchase Amount on a pro rata basis (with such adjustments as may be deemed appropriate so that only Notes in
denominations of $2,000 principal amount or integral multiples of $1,000 in excess thereof shall be purchased); and 
 (12) if applicable, that, in the case of any Holder whose Note is purchased only in part, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new Note or Notes, of
any authorized denomination as requested by such Holder, in the aggregate principal amount equal to and in exchange for the unpurchased portion of the aggregate principal amount of the Notes so tendered. 
 “Offering Memorandum” means the offering memorandum related to the issuance of the Initial Notes on the Issue Date, dated
July 1, 2009. 
 “Officer” means the Chairman of the Board, the Chief Executive Officer, the President,
any Executive Vice President, Senior Vice President or Vice President, the Treasurer or the Secretary or any Person performing a similar function. 
 “Officers’ Certificate” means a certificate signed by two Officers of the Company or a Guarantor, as applicable, one of whom must be the principal executive officer, the principal
financial officer or the principal accounting officer of the Company or such Guarantor, as applicable, or any Person performing a similar function. 
 “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, and which opinion shall be addressed to the Trustee in its capacity as such, and
shall comply with any applicable provisions herein. The counsel may be an employee of or counsel to the Company or any Subsidiary of the Company. 
 “Original Issue Discount Legend” means the legend identified as such in Section 2.6(e)(v). 
 “Parent” means Toys “R” Us, Inc. 
 “Participant” means, with respect to DTC, a Person who has an account with DTC. 
 “Paying
Agent” means any Person authorized by the Company to pay the principal of, premium, if any, or interest on, or redemption, purchase, retirement, defeasance, covenant defeasance or similar payment with respect to, any Notes on behalf of the
Company. 
  

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 “Permitted Business” means the business and any services, activities or
businesses incidental, or directly related or similar to, any line of business engaged in by Delaware and its Subsidiaries as of the Issue Date or any business activity that is a reasonable extension, development or expansion thereof or ancillary
thereto. 
 “Permitted Holders” means each of the Sponsors and members of management of Parent (or its direct
or indirect parent or Subsidiaries) on the Issue Date who are holders of Equity Interests of Parent (or any of its direct or indirect parent companies) and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act or any successor provision) of which any of the foregoing are members; provided that, in the case of such group and without giving effect to the existence of such group or any other group, such Investors and members of management,
collectively, have beneficial ownership of more than 50% of the total voting power of the Voting Interests of Parent or any of its direct or indirect parent companies. 
 “Permitted Investments” means: 
 (a) Investments
in existence on the Issue Date; 
 (b) Investments required pursuant to any agreement or obligation of the
Company or a Subsidiary, in effect on the Issue Date, to make such Investments; 
 (c) Investments in cash and
Cash Equivalents or Investment Grade Securities; 
 (d) Investments in property and other assets, owned or used
by the Company or any Subsidiary in the normal course of business; 
 (e) Investments by the Company or any of
its Subsidiaries in the Company or any Subsidiary; 
 (f) Investments by the Company or any Subsidiary in a
Person, if as a result of such Investment (A) such Person becomes a Subsidiary or (B) such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated or wound-up
into, the Company or a Subsidiary; 
 (g) Swap Contracts and Hedging Obligations; 
 (h) Investments received in settlement of obligations owed to the Company or any Subsidiary and as a result of bankruptcy or
insolvency proceedings or upon the foreclosure or enforcement of any Lien in favor of the Company or any Subsidiary; 
 (i) Investments the payment for which consists solely of Equity Interests of the Company; 
 (j)
payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business and consistent with past practice;

  

 -23- 

 (k) guarantees by the Company or any Subsidiary of Debt of the Company or a
Subsidiary otherwise permitted by Section 4.9; and 
 (l) any Investment in any Subsidiary in
connection with intercompany cash management arrangements or related activities arising in the ordinary course of business. 
 “Permitted Liens” means, with respect to any Person: 
 (1) pledges or deposits by such
Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Debt) or leases to which such Person is a party, or
deposits to secure public or statutory obligations of such Person or deposits of cash or U.S. government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or for the
payment of rent, in each case incurred in the ordinary course of business; 
 (2) Liens imposed by law, such as
carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet overdue for a period of more than 30 days or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards
against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review if adequate reserves with respect thereto are maintained on the books of such Person in accordance with GAAP; 

(3) Liens for taxes, assessments or other governmental charges not yet overdue for a period of more than 30 days or
payable or subject to penalties for nonpayment or which are being contested in good faith by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of such Person in accordance with GAAP;

 (4) minor survey exceptions, minor encumbrances, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the
ownership of its properties which were not incurred in connection with Debt and which do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

 (5) Liens arising from Uniform Commercial Code financing statement filings regarding operating leases entered
into by the Company and its Subsidiaries in the ordinary course of business; 
 (6) Liens in favor of the Company
or any Subsidiary; 
 (7) deposits made in the ordinary course of business to secure liability to insurance
carriers; 
  

 -24- 

 (8) Liens securing judgments for the payment of money not constituting an
Event of Default under clause (7) of Section 6.1 so long as such Liens are adequately bonded and any appropriate legal proceedings that may have been duly initiated for the review of such judgment have not been finally terminated or
the period within which such proceedings may be initiated has not expired; 
 (9) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business; 
 (10) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code, or any comparable
or successor provision, on items in the course of collection, (ii) attaching to commodity trading accounts or other commodity brokerage accounts incurred in the ordinary course of business, and (iii) in favor of banking institutions
arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking industry; 
 (11) Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with banks
not given in connection with the issuance of Debt or (ii) relating to pooled deposit or sweep accounts of the Company or any of its Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of
business of the Company and its Subsidiaries; 
 (12) Liens existing on the Issue Date; 
 (13) Subleases and Non-Toys Leases existing on the Issue Date or entered into in accordance with the terms of the Indenture;
and 
 (14) any matters that would be disclosed by an accurate survey of the subject property which would not,
individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company or the subject property. 
 For
purposes of this definition, the term “Debt” shall be deemed to include interest on such Debt. 
 “Person” means any individual, corporation, limited liability company, partnership, joint venture, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Preferred Stock” means any Equity Interest with preferential rights of payment of dividends upon liquidation, dissolution
or winding up. 
 “Purchase Agreement” means the purchase agreement dated July 1, 2009 by and among the
Company, the Initial Purchasers and the Guarantors named therein. 
 “Purchase Amount” has the meaning set
forth in the definition of “Offer to Purchase.” 
 “Purchase Date” has the meaning set forth in the
definition of “Offer to Purchase.” 
  

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 “Purchase Price” has the meaning set forth in the definition of “Offer
to Purchase.” 
 “Qualified Equity Offering” means a public or private equity offering of Capital Stock
(other than Disqualified Stock and other than issuances to an Affiliate of the Company) of the Company or any direct or indirect parent company of the Company, of at least $50.0 million; provided that, in the case of an offering or sale by a
direct or indirect parent company of the Company, such parent company contributes to the capital of the Company the portion of the net cash proceeds of such offering or sale necessary to pay the aggregate Redemption Price (plus accrued interest to
the redemption date) of the Notes to be redeemed pursuant to the provisions described under the second paragraph of Section 3.7. 
 “Rating Agency” means (1) each of Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Group, Inc, in each case or any successor to such entities rating
agency business and (2) if Moody’s or S&P ceases to rate any referent Person for reasons outside of the control of such Person, a “nationally recognized statistical rating organization” within the meaning of Rule
15c-3-1(c)(2)(vi)(F) under the Exchange Act selected by Parent or Delaware, as applicable, as a replacement agency. 
 “Real Property” means, collectively, all right, title and interest (including any leasehold, mineral or other estate) in and to any and all parcels of or interests in real property owned, leased or operated by any Person,
whether by lease, license or other means, together with, in each case, all easements, hereditaments and appurtenances relating thereto, all buildings, structures, parking areas and improvements and appurtenant fixtures and equipment, all general
intangibles and contract rights and other property and rights incidental to the ownership, lease or operation thereof. 
 “Redemption Price,” when used with respect to any Note to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
 “Registration Rights Agreement” means the Registration Rights Agreement, to be dated as of the date of the Indenture, among the Company, the Guarantors and the Initial Purchasers.

 “Replacement Property” means one or more parcels of Real Property that are suitable for retail sales (or
associated manufacturing or distribution of products) and that are leased to Parent or one of its Subsidiaries pursuant to the Master Lease or other lease arrangements on similar terms as the Master Lease. 
 “Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of
this Indenture. 
 “Restricted Global Note” means a Global Note that is a Restricted Note. 
  

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 “Restricted Note” has the meaning set forth in Rule 144(a)(3) under the
Securities Act for the term “restricted securities”; provided, however, that the Trustee shall be entitled to request and conclusively rely upon an Opinion of Counsel with respect to whether any Note is a Restricted Note.
Restricted Notes are required to bear the Restricted Notes Legend. 
 “Restricted Notes Legend” means the
legend identified as such in Section 2.6(e)(i) hereto. 
 “Restricted Payment” is defined to mean
any of the following: 
 (a) any dividend or other distribution declared and paid on the Equity Interests in the
Company or on the Equity Interests in any Subsidiary of the Company that are held by, or declared and paid to, any Person other than the Company or a Subsidiary of the Company (other than dividends, distributions or payments made solely in Capital
Stock in the Company (other than Disqualified Stock)); 
 (b) any payment made by the Company or any of its
Subsidiaries to purchase, redeem, acquire or retire any Equity Interests in the Company (including the conversion into, or exchange for, Debt, of any Equity Interests) other than any such Equity Interests owned by the Company or any Subsidiary
(other than a payment made solely in Capital Stock in the Company (other than Disqualified Stock)); 
 (c) any
Investment by the Company or a Subsidiary in any Person, other than a Permitted Investment. 
 “Restricted
Subsidiary” means, at any time, any direct or indirect Subsidiary of Delaware that is not then an Unrestricted Subsidiary; provided that upon the occurrence of an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such
Subsidiary shall be included in the definition of Restricted Subsidiary. 
 “S&P” means Standard &
Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor to its rating agency business. 
 “Sale
and Leaseback Transaction” means any direct or indirect arrangement pursuant to which property is sold or transferred by the Company or a Subsidiary (or Delaware or a Restricted Subsidiary, as applicable) and is thereafter leased back as a
capital lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) in accordance with GAAP by the Company or a Subsidiary (or Delaware or a Restricted Subsidiary, as
applicable). 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Services Agreement” means the Domestic Services Agreement, dated as of January 29, 2006, between Delaware and certain
Subsidiaries of Parent as in effect on the Issue Date and amended from time to time. 
 “Shelf Registration
Statement” has the meaning set forth in the Registration Rights Agreement. 
  

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 “Significant Subsidiary” has the meaning set forth in Rule 1-02 of
Regulation S-X under the Securities Act and Exchange Act as such Regulation is in effect on the Issue Date. 
 “Sponsors” means Bain Capital (TRU) VIII, L.P., a Delaware limited partnership, Bain Capital (TRU) VIII-E, L.P., a Delaware limited partnership, Bain Capital (TRU) VIII Coinvestment, L.P., a Delaware limited partnership,
Bain Capital Integral Investors, LLC, a Delaware limited liability company, and BCIP TCV, LLC, a Delaware limited liability company, Kohlberg Kravis Roberts & Co., Toybox Holdings, LLC, Vornado Realty Trust and Vornado Truck, LLC, and each
of their respective Affiliates. 
 “Stated Maturity,” when used with respect to (i) any Note or any
installment of interest thereon, means the date specified in such Note as the fixed date on which the principal amount of such Note or such installment of interest is due and payable and (ii) any other Debt or any installment of interest
thereon, means the date specified in the instrument governing such Debt as the fixed date on which the principal of such Debt or such installment of interest is due and payable. 
 “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business
entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. 
 “Subsidiary Guarantor” means each Subsidiary of the Company that is a Guarantor. 
 “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions,
interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including, without limitation, any fuel price caps and fuel price collar or floor agreements and similar agreements or arrangements designed to protect against or manage fluctuations in fuel
prices and any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended, as in effect on the date hereof, until such time as this Indenture is qualified under the
TIA, and thereafter as in effect on the date on which this Indenture is qualified under the TIA, except as otherwise provided in Section 9.3 hereof. 
  

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 “Total Leverage Ratio” means, with respect to any Person, at any date the
ratio of (i) Debt of such Person and its Restricted Subsidiaries as of the last day of the fiscal quarter for which internal financial statements are available immediately preceding the date of calculation less total unrestricted cash and Cash
Equivalents as of such date, in each case determined on a consolidated basis in accordance with GAAP and as provided below to (ii) EBITDA of such Person for the four full fiscal quarters for which internal financial statements are available
immediately preceding the date of calculation. For purposes of calculating the Total Leverage Ratio for any period, the amount of Debt of any Person represented by outstanding letters of credit shall be excluded from the amount of Debt except to the
extent such letter of credit has been drawn and not reimbursed by such Person. In the event that Delaware or any of its Restricted Subsidiaries incurs or repays or redeems any Debt (other than Debt incurred or repaid under any revolving credit
facilities) subsequent to the end of the period for which the Total Leverage Ratio is being calculated and on or prior to the event for which the calculation of the Total Leverage Ratio is made, then the Total Leverage Ratio shall be calculated
giving pro forma effect to such incurrence or redemption or repayment of Debt as if the same had occurred on the last day of the applicable period. The Total Leverage Ratio shall be calculated in a manner consistent with the pro forma provision (to
the extent applicable) of the definition of “Fixed Charge Coverage Ratio.” The amount of Debt under revolving credit facilities and unrestricted cash and Cash Equivalents, shall be based on the average of the month-end balances of such
Debt and unrestricted cash and Cash Equivalents for the applicable period. It is agreed the EBITDA for each of the four quarters in the four fiscal quarter period ended May 2, 2009, is $88 million, $(19) million, $434 million and $82 million,
respectively. 
 “Treasury Rate” means the rate per annum equal to the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity most nearly equal to the period from such date of redemption to July 15, 2013; provided, however, that if the period from such date of redemption to July 15,
2013 is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are given, except that if the period from such date of redemption to July 15, 2013 is less than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used. 
 “Trustee” has the meaning set
forth in the preamble to this Indenture until a successor replaces it in accordance with the applicable provisions of this Indenture and, thereafter, means the successor. 
 “Unrestricted Definitive Note” means a Certificated Note than is an Unrestricted Note. 
 “Unrestricted Global Note” means a Global Note that is an Unrestricted Note. 
  

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 “Unrestricted Notes” means one or more Notes that do not and are not
required to bear the Restricted Notes Legend including, without limitation, the Exchange Notes and any Notes registered under the Securities Act pursuant to and in accordance with the Registration Rights Agreement. 
 “Unrestricted Subsidiary” means (i) any Subsidiary of Delaware that at the time of determination is an Unrestricted
Subsidiary (as designated by the Board of Directors of Parent, as provided below) and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of Parent may designate any Subsidiary of Delaware (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity Interests or Debt of, or owns or holds any Lien on, any property of, Delaware or any
Subsidiary of Delaware (other than any Subsidiary of the Subsidiary to be so designated); provided that (a) any Unrestricted Subsidiary must be an entity of which shares of the Capital Stock or other equity interests (including
partnership interests) entitled to cast at least a majority of the votes that may be cast by all shares or equity interests having ordinary voting power for the election of directors or other governing body are owned, directly or indirectly, by
Delaware, (b) such designation complies with Section 12.1 and (c) each of (I) the Subsidiary to be so designated and (II) its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with respect to any Debt pursuant to which the lender has recourse to any of the assets of Delaware or any Restricted Subsidiary. The Board of Directors of Parent may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that, immediately after giving effect to such designation, no Default or Event of Default shall have occurred and Delaware could incur $1.00 of additional Debt pursuant to the
Fixed Charge Coverage Ratio test described under the first paragraph of Section 12.2. 
 “Voting
Interests” means, with respect to any Person, securities of any class or classes of Equity Interests in such Person entitling the holders thereof generally to vote on the election of members of the Board of Directors. 
 “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person, 100% of the outstanding Capital Stock or other
ownership interests of which (other than directors’ qualifying shares and shares issued to foreign nationals under applicable law) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of such Person or by such
Person and one or more Wholly Owned Subsidiaries of such Person. 
  

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 SECTION 1.2 Other Definitions. 
  

			
	 Term
	  	Defined in
Section
	 “Affiliate Transaction”
	  	4.11
	 “Agent Members”
	  	2.6
	 “Authentication Order”
	  	2.2
	 “Change of Control Offer”
	  	4.13
	 “Change of Control Payment”
	  	4.13
	 “covenant defeasance”
	  	8.3
	 “defeasance”
	  	8.2
	 “Event of Default”
	  	6.1
	 “Excess Proceeds”
	  	4.10
	 “Free Cash Flow Offer”
	  	4.7
	 “Note Register”
	  	2.3
	 “Offer Amount”
	  	3.9
	 “Purchase Date”
	  	3.9
	 “QIB”
	  	2.1
	 “QIB Global Note”
	  	2.1
	 “redemption date”
	  	3.1
	 “Registrar”
	  	2.3
	 “Regulation S”
	  	2.1
	 “Regulation S Global Note”
	  	2.1
	 “Rule 144A”
	  	2.1
	 “Surviving Entity”
	  	5.1

 SECTION 1.3 Incorporation by Reference of Trust Indenture Act. 
 Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in, and made a part of, this Indenture.

 The following TIA term used in this Indenture has the following meaning: 
 “obligor” on the Notes and the Note Guarantees means the Company, and the Note Guarantors, respectively, and
any successor obligor upon the Notes and the Note Guarantees, respectively. 
 All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by the Commission rule under the TIA have the meanings so assigned to them therein. 
 SECTION 1.4 Rules of Construction. 
 Unless the context otherwise requires:

 (1) a term has the meaning assigned to it herein; 
 (2) an accounting term not otherwise defined herein has the meaning assigned to it in accordance with GAAP or a successor to
GAAP; 
 (3) “or” is not exclusive; 
 (4) words in the singular include the plural, and in the plural include the singular; 
 (5) unless otherwise specified, any reference to a Section or an Article refers to such Section or Article of this Indenture;

  

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 (6) provisions apply to successive events and transactions; 
 (7) references to sections of or rules under the Securities Act, the Exchange Act or the TIA shall be deemed to include
substitute, replacement or successor sections or rules adopted by the Commission from time to time; 
 (8) for
the avoidance of doubt, any references to “interest” shall include any Additional Interest that may be payable; and 
 (9) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not any particular article, section, clause or other
subdivision. 
 ARTICLE II 
 THE NOTES 
 SECTION 2.1 Form and Dating. 
 (a) The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto,
with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture. The Notes may have notations, legends or endorsements required by law, stock exchange rules and agreements to which the
Company or any Subsidiary Guarantor is subject or usage. Each Note shall be dated the date of its authentication. The Notes shall be issued only in denominations of $2,000 and any integral multiple of $1,000 in excess thereof. The Trustee shall
authenticate the Notes, upon a written order of the Company for the authentication and delivery of such Notes, which order shall set forth the number of separate notes, the principal amount of each such Note to be authenticated, the date on which
the original issue of Notes is to be authenticated, the registered holders of each of the said Notes and delivery instructions. 
 (b) The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly
agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling. 
 The Notes shall be issued initially in the form of one or more Global Notes substantially in the form attached as Exhibit A hereto
and shall be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee as Note Custodian, and registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. 
  

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 Each Global Note shall represent such of the outstanding Notes as shall be specified therein
and each shall provide that it shall represent the aggregate principal amount of out standing Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced
or increased, as appropriate, to reflect exchanges, redemptions and transfers of interests. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by
the Trustee or the Note Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.6. 
 Except as set forth in Section 2.6, the Global Notes may be transferred, in whole and not in part, only to another nominee of the Depositary or to a successor of the Depositary or its nominee.

 (c) The Initial Notes are being issued by the Company only (i) to “qualified institutional buyers” (as defined
in Rule 144A under the Securities Act (“Rule 144A”)) (“QIBs”) and (ii) in reliance on Regulation S under the Securities Act (“Regulation S”). After such initial offers, Initial Notes that are
Restricted Notes may be transferred to QIBs, in reliance on Rule 144A, outside the United States pursuant to Regulation S or to the Company, in accordance with certain transfer restrictions. Initial Notes that are offered in reliance on Rule 144A
shall be issued in the form of one or more permanent Global Notes substantially in the form set forth in Exhibit A (the “QIB Global Note”) deposited with the Trustee, as Note Custodian, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. Initial Notes that are offered in offshore transactions in reliance on Regulation S shall be issued in the form of one or more temporary Global Notes substantially in the form set forth in
Exhibit A, including the Regulation S Temporary Global Note Legend (the “Regulation S Temporary Global Note”) deposited with the Trustee, as Note Custodian, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. Reasonably promptly following the date that is 40 days after the later of the commencement of the offering of the Notes in reliance on Regulation S and the Issue Date, a single permanent Global Note in registered
form substantially in the form of Exhibit A (the “Regulation S Permanent Global Note,” and together with the Regulation S Temporary Global Note, the “Regulation S Global Note”) duly
executed by the Company and authenticated by the Trustee as hereinafter provided shall be deposited with the Trustee, as Note Custodian, and the Registrar shall reflect on its books and records the cancellation of the Regulation S Temporary Global
Note and the issuance of the Regulation S Permanent Global Note. The QIB Global Note and the Regulation S Global Note shall each be issued with separate CUSIP numbers. The aggregate principal amount of each Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as Note Custodian. Transfers of Notes between QIBs and to or by purchasers pursuant to Regulation S shall be represented by appropriate increases and decreases to the
respective amounts of the appropriate Global Notes, as more fully provided in Section 2.16. 
 Section 2.1(c) shall apply only to Global Notes deposited with or on behalf of the Depositary. 
 (d) The
Company shall execute and the Trustee shall, in accordance with Section 2.1(c) and this Section 2.1(d), authenticate and deliver the Global Notes that (i) shall be registered in the name of the Depositary or the nominee
of the Depositary and (ii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions or held by the Trustee as Note Custodian. 
  

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 Participants shall have no rights either under this Indenture with respect to any Global
Note held on their behalf by the Depositary or by the Note Custodian or under such Global Note, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Note for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any Agent or other agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its Participants, the operation of customary practices of such Depositary governing the exercise of the rights of an owner of a beneficial interest in any Global Note. 

The Trustee shall have no responsibility or obligation to any Holder, any member of (or a participant in) DTC or any other Person with
respect to the accuracy of the records of DTC (or its nominee) or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect to the delivery of any notice (including any notice of redemption) or the
payment of any amount or delivery of any Notes (or other security or property) under or with respect to the Notes. The Trustee may rely (and shall be fully protected in relying) upon information furnished by DTC with respect to its members,
participants and any Beneficial Owners in the Notes. 
 (e) Notes issued in certificated form, including Global Notes, shall be
substantially in the form of Exhibit A attached hereto. 
 SECTION 2.2 Execution and Authentication. 
 An Officer shall sign the Notes for the Company by manual or facsimile signature. 
 If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be
valid. 
 A Note shall not be valid until authenticated by the manual or facsimile signature of an authorized signatory of the
Trustee. The signature shall be conclusive evidence that the Note has been authenticated and delivered under this Indenture. 
 The Trustee shall, upon a written order of the Company signed by one Officer (an “Authentication Order”) directing the Trustee to authenticate and deliver the Notes and certifying that all conditions precedent to the issuance of
the Notes contained herein have been complied with, authenticate Notes for original issue up to the aggregate principal amount stated in paragraph 4 of the Notes. The aggregate principal amount of Notes outstanding at any time may not exceed such
amount. 
 The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. Unless limited by
the terms of such appointment, an authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with Holders or the Company or an Affiliate of the Company. 
  

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 SECTION 2.3 Registrar; Paying Agent. 
 The Company shall maintain (i) an office or agency where Notes may be presented for registration of transfer or for exchange
(“Registrar”) and (ii) an office or agency where Notes may be presented for payment to a Paying Agent. The Registrar shall keep a register of the Notes (the “Note Register”) and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional paying agents; provided, however, that at all times there shall be only one Note Register. The term “Registrar” includes any co-registrar and the
term “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company shall notify the Trustee in writing of the name and address of any Agent not a party
to this Indenture. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 
 The Company shall enter into
an appropriate agency agreement with any Agent not a party to this Indenture, which, in the case of a Paying Agent, shall incorporate the provisions of Section 317(b) of the TIA. The agreement shall implement the provisions of this Indenture
that relate to such Agent. 
 The Company initially appoints the Trustee to act as the Registrar and Paying Agent and initially
appoints the Corporate Trust Office of the Trustee as the office or agency of the Company for such purposes and as the office or agency of the Company where notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served and the Trustee as the agent of the Company to receive such notices and demands. 
 The Company initially appoints DTC to
act as the Depositary with respect to the Global Notes. 
 SECTION 2.4 Paying Agent to Hold Money in Trust. 
 The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust for the
benefit of the Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and shall notify the Trustee of any Default by the Company in making any such payment. While any such
Default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent
(if other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it
as Paying Agent. Upon the occurrence of events specified in Section 6.1(8) hereof, the Trustee shall serve as Paying Agent for the Notes. 
  

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 SECTION 2.5 Holder Lists. 
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses
of all Holders and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least five (5) Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders, and the Company shall otherwise comply with TIA § 312(a). 
 SECTION 2.6 Book-Entry Provisions for Global Securities. 
 (a) Each Global Note constituting a Restricted Note shall (i) be registered in the name of the Depositary for such Global Notes or the nominee of such Depositary, (ii) be delivered to the
Trustee as Note Custodian and (iii) bear legends as required by Section 2.6(e). 
 Members of, or participants
in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depositary, or the Trustee as its custodian, or under the Global Note, and the Depositary may
be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices governing
the exercise of the rights of a Holder of any Note. 
 (b) Transfers of a Global Note shall be limited to transfers of such
Global Note in whole, but not in part, to the Depositary, its successors or their respective nominees. Interests of Beneficial Owners (or the requesting Beneficial Owners in the case of clause (ii) immediately below) in a Global Note may be
transferred in accordance with Section 2.16 and the rules and procedures of the Depositary. In addition, Certificated Notes shall be transferred to all Beneficial Owners in exchange for their beneficial interests if (i) the
Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Global Notes or the Depositary ceases to be a “clearing agency” registered under the Exchange Act and a successor depositary is not appointed
by the Company within ninety (90) days of such notice or (ii) an Event of Default of which a Responsible Officer of the Trustee has actual notice has occurred and is continuing and the Registrar has received a request from the Depositary
or a Beneficial Owner in a Global Note to issue such Certificated Notes. 
 (c) In connection with the transfer of the entire
Global Note to Beneficial Owners pursuant to clause (b) of this Section, such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each
Beneficial Owner identified by the Depositary in exchange for its beneficial interest in such Global Note an equal aggregate principal amount of Certificated Notes of authorized denominations. 
  

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 (d) The registered holder of a Global Note may grant proxies and otherwise authorize any
person, including Agent Members and persons that may hold interest through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
 (e) Legends. The following legends shall appear on the face of all Global Notes and Certificated Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions of this Indenture: 
 (i) Restricted Notes
Legend. 
 (1) Unless and until (x) a Note is exchanged for an Exchange Note or sold in connection with
an effective registration statement pursuant to the Registration Rights Agreement or (y) the Company determines and there is delivered to the Trustee an Opinion of Counsel reasonably satisfactory to the Trustee and a letter of representation of
the Company reasonably satisfactory to the Trustee to the effect that the following legend and the related restrictions on transfer are not required in order to maintain compliance with the provisions of the Securities Act, each Global Note and each
Certificated Note (and all Notes issued in exchange therefor or substitution therefor) shall bear the legend in substantially the following form (such legend, the “Restricted Notes Legend”): 
 “THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES
FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (i) (a) TO A PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 903 OR RULE 904 UNDER THE SECURITIES ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF APPLICABLE), OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (ii) TO

  

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THE COMPANY OR A SUBSIDIARY OF THE COMPANY, OR (iii) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. NO
REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.” 
 (ii) Global Note Legend. Each Global Note, whether or not an Exchange Note, Restricted Global Note or Unrestricted Global Note, shall bear a legend in substantially the following form: 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6(e)(vi) OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(b) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.” 
  

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 (iii) Each Global Note shall bear the Global Note Legend on the face
thereof. 
 (iv) Regulation S Temporary Global Note Legend. Each temporary Note that is a Global Note
issued pursuant to Regulation S shall bear a legend in substantially the following form: 
 “THE RIGHTS ATTACHING TO THIS
REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN THE INDENTURE GOVERNING THIS NOTE. THE HOLDER OF THIS NOTE BY ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND
WARRANTS THAT IF IT IS A PURCHASER IN A SALE THAT OCCURS OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S OF THE SECURITIES ACT, IT ACKNOWLEDGES THAT, UNTIL EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” WITHIN THE
MEANING OF RULE 903 OF REGULATION S, ANY OFFER OR SALE OF THIS NOTE SHALL NOT BE MADE BY IT TO A U.S. PERSON TO OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON WITHIN THE MEANING OF RULE 902(k) UNDER THE SECURITIES ACT.” 
 (v) Original Issue Discount Legend. Each Global Note will bear a legend in substantially the following form:

 “THIS NOTE HAS BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” (WITHIN THE MEANING OF SECTION 1273 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED). UPON WRITTEN REQUEST, THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE THE FOLLOWING INFORMATION: (1) THE ISSUE PRICE AND ISSUE DATE OF THE NOTE, (2) THE AMOUNT OF ORIGINAL ISSUE
DISCOUNT ON THE NOTE AND (3) THE YIELD TO MATURITY OF THE NOTE.” 
 (vi) At such time as all beneficial
interests in Global Notes have been exchanged for Certificated Notes, redeemed, repurchased or cancelled, all Global Notes shall be returned to or retained and cancelled by the Trustee in accordance with Section 2.11 hereof. At any time
prior to such cancellation, if any beneficial interest in a Global Note is exchanged for Certificated Notes, redeemed, repurchased or cancelled, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an
endorsement shall be made on such Global Note, by the Trustee or the Note Custodian, at the direction of the Trustee, to reflect such reduction, and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect
such increase. 
  

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 (f) General Provisions Relating to Transfers and Exchanges. 
 (i) To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global
Notes and Certificated Notes at the Registrar’s request or upon the Company’s order. 
 (ii) No service
charge shall be made to a Holder for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any stamp or transfer tax or similar governmental charge payable in connection therewith (other than any
such stamp or transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.2, 2.10, 3.6, 4.10, 4.13 and 9.5 hereto). 
 (iii) All Global Notes and Certificated Notes issued upon any registration of transfer or exchange of Global Notes or
Certificated Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Certificated Notes surrendered upon such registration of transfer or exchange.

 (iv) The Registrar shall not be required (A) to issue, to register the transfer of or to exchange Notes
during a period beginning at the opening of fifteen (15) days before the day of any selection of Notes for redemption under Section 3.2 hereof and ending at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part, or (C) to register the transfer of or to exchange a Note between a record date and the next
succeeding interest payment date. 
 (v) [Reserved]. 
 (vi) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem
and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and neither the Trustee, any Agent nor the
Company shall be affected by notice to the contrary. 
 (vii) The Trustee shall authenticate Global Notes and
Certificated Notes in accordance with the provisions of Section 2.2 hereof. Except as provided in Section 2.6(b), neither the Trustee nor the Registrar shall authenticate or deliver any Certificated Note in exchange for a
Global Note. 
 (viii) Each Holder agrees to provide reasonable indemnity to the Company and the Trustee against
any liability that may result from the transfer, exchange or assignment of such Holder’s Note in violation of any provision of this Indenture and/or applicable United States federal or state securities law. 
 (ix) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Agent Members or Beneficial Owners of interests in any Global Note) other than to
require delivery of such certificates and other documentation

  

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or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with
the express requirements hereof. 
 (g) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue, and, upon receipt of an Authentication Order in accordance with Section 2.2, the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an aggregate principal
amount equal to the principal amount of the beneficial interests in the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable letters of transmittal or through an Agent’s Message through DTC’s Automated
Tender Offer Program that (x) they are not affiliates (as defined in Rule 144) of the Company, (y) they are not engaged in, and do not intend to engage in, and have no arrangement or understanding with any Person to participate in, a
distribution of the Exchange Notes to be issued in the Exchange Offer and (z) they are acquiring the Exchange Notes in their ordinary course of business and (ii) Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Notes that are Certificated Notes accepted for exchange in the Exchange Offer. Concurrently with the issuance of such Notes, the Trustee shall cause the aggregate principal amount of the Restricted Global Notes to
be reduced accordingly, and the Trustee shall deliver to the Persons designated by the Holders of Restricted Global Notes or Restricted Notes that are Certificated Notes so accepted the Unrestricted Global Notes or Unrestricted Definitive Notes
issued and authenticated in accordance with the preceding sentence in the appropriate principal amount. 
 SECTION 2.7 Replacement Notes.

 If any mutilated Note is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of
the destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Company and the Trustee may charge for their expenses in replacing a Note. 
 Every replacement Note is an
additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 
 SECTION 2.8 Outstanding Notes. 
 The Notes outstanding at any time are all
the Notes authenticated by the Trustee except for those cancelled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.8 as not outstanding. Except as set forth in Section 2.9 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note. 
  

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 If a Note is replaced pursuant to Section 2.7 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. 
 If
the principal amount of any Note is considered paid under Section 4.1 hereof, it ceases to be outstanding and interest on it ceases to accrue. 
 If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and
after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest. 
 SECTION 2.9 Treasury Notes.

 In determining whether the Holders of the required aggregate principal amount of Notes have concurred in any direction,
waiver or consent, Notes owned by the Company or by any Affiliate of the Company shall be considered as though not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction,
waiver or consent, only Notes shown on the register as being owned shall be so disregarded. Notwithstanding the foregoing, Notes that are to be acquired by the Company or an Affiliate of the Company pursuant to an exchange offer, tender offer or
other agreement shall not be deemed to be owned by such entity until legal title to such Notes passes to such entity. 
 SECTION 2.10
Temporary Notes. 
 Until Certificated Notes are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Notes upon an Authentication Order. Temporary Notes shall be substantially in the form of Certificated Notes but may have variations that the Company considers appropriate for temporary Notes. Without unreasonable delay, the
Company shall prepare and the Trustee shall upon receipt of an Authentication Order authenticate Certificated Notes in exchange for temporary Notes. 
 Holders of temporary Notes shall be entitled to all of the benefits of this Indenture. 
 SECTION
2.11 Cancellation. 
 The Company at any time may deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder or which the Company may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Trustee. All Notes surrendered for registration of transfer, exchange or payment, if
surrendered to any Person other than the Trustee, shall be delivered to the Trustee. The Trustee and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation. Subject to
Section 2.7 hereof, the Company may not issue new Notes to replace Notes that they have redeemed or paid or that have been delivered to the Trustee for cancellation. All cancelled Notes held by the Trustee shall be disposed of in
accordance with its customary practice, and certification of their disposal delivered to the Company, unless by a written order, signed by an Officer of the Company, the Company shall direct that cancelled Notes be returned to it. 
  

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 SECTION 2.12 Defaulted Interest. 
 If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, which date shall be at the earliest practicable date but in all events at least five (5) Business Days prior to the payment
date, in each case at the rate provided in the Notes and in Section 4.1 hereof. The Company shall fix or cause to be fixed each such special record date and payment date and shall promptly thereafter notify the Trustee of any such date.
At least fifteen (15) days before the special record date, the Company (or the Trustee, in the name and at the expense of the Company) shall deliver or cause to be delivered to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid. 
 SECTION 2.13 Record Date. 
 The record date for purposes of determining the identity of Holders entitled to vote or consent to any action by vote or consent authorized
or permitted under this Indenture shall be determined as provided for in TIA § 316 (c). 
 SECTION 2.14 Computation of Interest.

 Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 
 SECTION 2.15 CUSIP/ISIN Number. 
 The Company in issuing the Notes may use a CUSIP and/or ISIN or other similar number, and if it does so, the Company may use the CUSIP and/or ISIN or other similar number in notices of redemption or exchange as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP and/or ISIN or other similar number printed in the notice or on the Notes and that reliance may be placed only on the other
identification numbers printed on the Notes. The Company shall promptly notify the Trustee of any change in the CUSIP and/or ISIN or other similar number. 
 SECTION 2.16 Special Transfer Provisions. 
 Unless and until (i) a
Restricted Note is exchanged for an Exchange Note or sold in connection with an effective shelf registration statement pursuant to the Registration Rights Agreement or (ii) the Restricted Notes Legend is no longer required pursuant to
Section 2.6(e), the following provisions shall apply: 
 (a) Transfers to QIBs. The following
provisions shall apply with respect to the registration of any proposed transfer of a Restricted Note (other than pursuant to Regulation S): 
 (i) The Registrar shall register the transfer of a Restricted Note by a Holder to a QIB if such transfer is being made by a proposed transferor who has

  

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provided the Registrar with (a) an appropriately completed certificate of transfer in the form attached to the Note and (b) a letter substantially in the form set forth in Exhibit C
hereto. 
 (ii) If the proposed transferee is an Agent Member and the Restricted Note to be transferred consists
of an interest in the Regulation S Global Note, upon receipt by the Registrar of (x) the items required by paragraph (i) above and (y) instructions given in accordance with the Depositary’s and the Registrar’s procedures
therefor, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the QIB Global Note in an amount equal to the principal amount of the beneficial interest in the Regulation S Global Note to be so
transferred, and the Registrar shall reflect on its books and records the date and an appropriate decrease in the principal amount of such Regulation S Global Note. 
 (b) Transfers Pursuant to Regulation S. The following provisions shall apply with respect to registration of any
proposed transfer of a Restricted Note pursuant to Regulation S: 
 (i) The Registrar shall register any proposed
transfer of a Restricted Note pursuant to Regulation S by a Holder upon receipt of (a) an appropriately completed certificate of transfer in the form attached to the Note and (b) a letter substantially in the form set forth in Exhibit
D hereto from the proposed transferor. 
 (ii) If the proposed transferee is an Agent Member holding a
beneficial interest in a QIB Global Note and the Restricted Note to be transferred consists of an interest in a QIB Global Note, upon receipt by the Registrar of (x) the letter, if any, required by paragraph (i) above and
(y) instructions in accordance with the Depositary’s and the Registrar’s procedures therefor, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the Regulation S Global Note in an
amount equal to the principal amount of the beneficial interest in the QIB Global Note to be transferred, and the Registrar shall reflect on its books and records the date and an appropriate decrease in the principal amount of the QIB Global Note.

 (c) [reserved]. 
 (d) Restricted Notes Legend. Upon the transfer, exchange or replacement of Unrestricted Notes, the Registrar shall deliver Unrestricted Notes that do not bear the Restricted Notes Legend. Upon the
transfer, exchange or replacement of Restricted Notes, the Registrar shall deliver only Restricted Notes that bear the Restricted Notes Legend unless the Restricted Notes Legend is no longer required by Section 2.6(e), or the Company
determines and there is delivered to the Trustee an Opinion of Counsel reasonably satisfactory to the Trustee to the effect that neither such legend nor the related restrictions on transfer are required or appropriate in order to ensure that
subsequent transfers of the Notes are effected in compliance with the Securities Act. 
  

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 (e) General. By its acceptance of any Note bearing the Restricted
Notes Legend, each Holder of such a Note acknowledges receipt of a Restricted Note with restrictions on transfer of such Note set forth in this Indenture and in the Restricted Notes Legend and agrees that it shall transfer such Note only as provided
in this Indenture until such time as the Restricted Note Legend is no longer required pursuant to Section 2.6(e) and such Holder transfers such a Restricted Note to an Unrestricted Note. The Registrar shall not register a transfer of any
Note unless such transfer complies with the restrictions on transfer of such Note set forth in this Indenture. In connection with any transfer of Notes, each Holder agrees by its acceptance of the Notes to furnish the Registrar or the Company such
certifications, legal opinions or other information as either of them may reasonably require to confirm that such transfer is being made pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities
Act until such time as the Restricted Note Legend is no longer required pursuant to Section 2.6(e) and such Holder transfers such a Restricted Note to an Unrestricted Note; provided that the Registrar shall not be required to
determine (but may rely on a determination made by the Company with respect to) the sufficiency of any such certifications, legal opinions or other information. 
 ARTICLE III 
 REDEMPTION AND PREPAYMENT 
 SECTION 3.1 Notices to Trustee. 
 If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.7 hereof, it shall furnish to the Trustee, at least two (2) Business Days before notice of redemption is required to be
mailed or caused to be mailed to Holders pursuant to Section 3.3 hereof (or such shorter period as is acceptable to the Trustee), an Officers’ Certificate setting forth (i) the section of this Indenture pursuant to which the
redemption shall occur, (ii) the date fixed for redemption (the “redemption date”), (iii) the principal amount of Notes to be redeemed and (iv) the Redemption Price. 
 If the Company is required to make an Offer to Purchase pursuant to Section 4.10 or 4.13 hereof, it shall furnish to the
Trustee, at least five (5) Business Days before notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to Section 3.3 hereof (or such shorter period as is acceptable to the Trustee), an Officers’
Certificate setting forth (i) the section of this Indenture pursuant to which the offer to purchase shall occur, (ii) the terms of the offer, (iii) the principal amount of Notes to be purchased, (iv) the purchase price and
(v) the purchase date and further setting forth a statement to the effect that (a) the Company or one of its Subsidiaries has effected an Asset Sale and there are Excess Proceeds aggregating more than $10.0 million or (b) a Change of
Control has occurred, as applicable. 
  

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 SECTION 3.2 Selection of Notes to Be Redeemed. 
 The Trustee shall select the Notes to be redeemed among the Holders in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate (and in a manner that complies with applicable requirements of
the Depositary); provided that no Notes of $2,000 or less shall be redeemed in part except if all of the Notes of a Holder are to be redeemed or repurchased, the entire outstanding amount of Notes held by such Holder, even if not a multiple
of $1,000 or even if the Notes do not have denominations larger than $2,000, shall be redeemed or repurchased. Notices of redemption shall be sent electronically (to the extent permitted by applicable procedures or regulations) or mailed by first
class mail at least 30 but not more than 60 days before the redemption date to each Holder of Notes to be redeemed at its registered address. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note shall state
the portion of the principal amount thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note will be issued in the name of the Holder thereof upon cancellation of the original Note. Notes called for
redemption become due on the date fixed for redemption. On and after the redemption date, interest ceases to accrue on Notes or portions of them called for redemption. The Trustee shall make the selection from the Notes outstanding and not
previously called for redemption and shall promptly notify the Company in writing of the Notes selected for redemption. 
 SECTION 3.3 Notice
of Redemption. 
 At least 30 days but not more than 60 days before a redemption date, the Company shall send or cause to be
sent by electronic transmission or by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed. 
 The notice shall identify the Notes to be redeemed and shall state: 
 (1) the redemption date;

 (2) the Redemption Price; 
 (3) if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after
the redemption date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Note; 
 (4) the name and address of the Paying Agent; 
 (5) that Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; 
 (6) that, unless the Company defaults in making such redemption payment, interest, if any, on Notes called for redemption
ceases to accrue on and after the redemption date; 
  

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 (7) the paragraph of the Notes and/or Section of this Indenture pursuant to
which the Notes called for redemption are being redeemed; 
 (8) the conditions, if any, to the redemption of the
Notes; and 
 (9) that no representation is made as to the correctness or accuracy of the CUSIP number, if any,
listed in such notice or printed on the Notes. 
 At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at the Company’s expense; provided, however, that the Company shall have delivered to the Trustee at least 2 Business Days before notice of redemption is required to be mailed or caused to be mailed
to Holders pursuant to this Section (or such shorter period as is acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in the notices as provided in the
preceding paragraph. The notice sent in the manner herein provided shall be conclusively presumed to have been duly given whether or not a Holder receives such notice. In any case, failure to give such notice by electronic transmission or by mail or
any defect in the notice to the Holder of any Note shall not affect the validity of the proceeding for the redemption of any other Note. 
 SECTION 3.4 Effect of Notice of Redemption. 
 Once notice of redemption is sent in accordance with
Section 3.3 hereof, Notes called for redemption become due and payable on the redemption date at the Redemption Price plus accrued and unpaid interest, if any, to such date. Notwithstanding the foregoing, any notice of redemption may, at
the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of a Qualified Equity Offering or other corporate transaction. The notice sent in the manner herein provided shall be
conclusively presumed to have been duly given whether or not a Holder receives such notice. In any case, failure to give such notice by electronic transmission or by mail or any defect in the notice to the Holder of any Note shall not affect the
validity of the proceeding for the redemption of any other Note. 
 SECTION 3.5 Deposit of Redemption Price. 
 On or before 12:00 noon (New York City time) on each redemption date, the Company shall deposit with the Trustee or with the Paying Agent
(other than the Company or an Affiliate of the Company) money sufficient to pay the Redemption Price of and accrued and unpaid interest, if any, on all Notes to be redeemed on that date. The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the Redemption Price of (including any applicable premium), of and accrued and unpaid interest, if any, on, all Notes to be
redeemed or purchased. 
 If Notes called for redemption or tendered in an Asset Sale Offer or Change of Control Offer are paid
or if Company has deposited with the Trustee or Paying Agent money sufficient to pay the Redemption Price or purchase price of, and unpaid and accrued interest, if any, on, all Notes to be redeemed or purchased, on and after the redemption or
purchase date, interest, if any, shall cease to accrue on the Notes or the portions of Notes called for redemption or tendered and

  

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not withdrawn in an Asset Sale Offer or Change of Control Offer (regardless of whether certificates for such securities are actually surrendered). If a Note is redeemed or purchased on or after a
regular record date but on or prior to the related interest payment date, then any accrued and unpaid interest, if any, shall be paid to the Person in whose name such Note was registered at the close of business on such record date. If any Note
called for redemption or repurchase shall not be so paid upon surrender for redemption or repurchase because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal from the redemption or
purchase date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case, at the rate provided in the Notes and in Section 4.1 hereof. 
 SECTION 3.6 Notes Redeemed in Part. 
 Upon surrender of a Note that is redeemed in part, the Company shall issue and, upon the written request of an Officer of the Company, the Trustee shall authenticate for the Holder at the expense of the
Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered; provided that each new Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. 
 SECTION 3.7 Optional Redemption. 
 (a) The Notes are subject to redemption, at the option of the Company, in whole or in part, at any time on or after July 15, 2013, upon not less than 30 nor more than 60 days’ notice, at the following Redemption Prices
(expressed as percentages of the principal amount to be redeemed) set forth below, plus accrued and unpaid interest, if any, to, but not including, the redemption date (subject to the right of Holders of record on the relevant regular record date to
receive interest due on an interest payment date that is on or prior to the redemption date), if redeemed during the 12-month period beginning on July 15 of the years indicated below: 
  

				
	 Year
	  	Redemption Price	 
	 2013
	  	105.375	% 
	 2014
	  	102.688	% 
	 2015 and thereafter
	  	100.000	% 

 In addition, at any time prior to July 15, 2013, the Company may, upon not less
than 30 nor more than 60 days’ notice, redeem the Notes, in whole at any time or in part from time to time, at a Redemption Price equal to the principal amount of the Notes plus the Applicable Premium plus accrued and unpaid interest, if any,
to but not including the date of redemption (subject to the right of Holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the redemption date). 
 (b) In addition to the optional redemption of the Notes in accordance with the provisions of the preceding paragraphs, prior to
July 15, 2012, the Company may on one or more occasions, with the net proceeds of one or more Qualified Equity Offerings, redeem up to 35% of the aggregate principal amount of the outstanding Notes at a Redemption Price equal to 110.75% of the
principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but not

  

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including, the date of redemption (subject to the right of Holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the
redemption date); provided that at least 65% of the principal amount of Notes remains outstanding immediately after the occurrence of any such redemption (excluding Notes held by the Company or its Subsidiaries) and that any such redemption
occurs within 90 days following the closing of any such Qualified Equity Offering. 
 The Company or any of its Affiliates may,
at any time and from time to time, purchase Notes in the open market or otherwise, subject to compliance with this Indenture and compliance with all applicable securities laws. 
 Any redemption pursuant to this Section 3.7 shall be made pursuant to the provisions of Sections 3.1 through 3.6 hereof. 
 SECTION 3.8 Mandatory Redemption. 
 The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes. 
 SECTION 3.9
Offer to Purchase. 
 In the event that the Company shall be required to commence an Offer to Purchase pursuant to an
Asset Sale Offer or a Change of Control Offer, the Company shall follow the procedures specified below. 
 Unless otherwise
required by applicable law, an Offer to Purchase shall specify an expiration date (the “Expiration Date”) of the Offer to Purchase, which shall be, subject to any contrary requirements of applicable law, not less than 30 days or
more than 60 days after the date of delivering of such Offer, and a settlement date (the “Purchase Date”) for purchase of Notes within five Business Days after the Expiration Date. On the Purchase Date, the Company shall purchase
the aggregate principal amount of Notes required to be purchased pursuant to Section 4.10 hereof or Section 4.13 hereof (the “Offer Amount”), or if less than the Offer Amount has been tendered, all Notes
tendered in response to the Offer to Purchase. Payment for any Notes so purchased shall be made in the same manner as interest payments are made. If the Purchase Date is on or after the regular record date and on or before the related interest
payment date, any accrued and unpaid interest, if any, shall be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest, if any, shall be payable to the Holders who tender Notes
pursuant to the Offer to Purchase. The Company shall notify the Trustee at least 2 Business Days before notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to this Section (or such shorter period as is acceptable
to the Trustee in its sole discretion) prior to the delivering of the Offer of the Company’s obligation to make an Offer to Purchase, and the Offer shall be sent electronically or mailed by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company. The Offer shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Offer to Purchase. 
  

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 On or before 12:00 noon (New York City time) on each Purchase Date, the Company shall
irrevocably deposit with the Trustee or Paying Agent (other than the Company or an Affiliate of the Company) in immediately available funds the aggregate purchase price equal to the Offer Amount, together with accrued and unpaid interest, if any,
thereon, to be held for payment in accordance with the terms of this Section 3.9. On the Purchase Date, the Company shall, to the extent lawful, (i) accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Offer to Purchase, or if less than the Offer Amount has been tendered, all Notes tendered, (ii) deliver or cause the Paying Agent or depositary, as the case may be, to deliver to the
Trustee Notes so accepted and (iii) deliver to the Trustee an Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the Company in accordance with the terms of this Section 3.9. The
Company, the Depositary or the Paying Agent, as the case may be, shall promptly (but in any case not later than five (5) Business Days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase price of
the Notes tendered by such Holder and accepted by the Company for purchase, plus any accrued and unpaid interest, if any, thereon, and the Company shall promptly issue a new Note, and the Trustee, at the written request of the Company, shall
authenticate and mail or deliver at the expense of the Company such new Note to such Holder, equal in principal amount to any unpurchased portion of such Holder’s Notes surrendered; provided that each such new Note will be in a principal
amount of $2,000 or any integral multiple of $1,000 in excess thereof. Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company shall publicly announce in a newspaper of general circulation or
in a press release provided to a nationally recognized financial wire service the results of the Offer to Purchase on or promptly after the Purchase Date. 
 The Company shall comply with the requirements of any applicable securities laws and any regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of
the Notes as a result of an Asset Sale Offer or Change of Control Offer. To the extent that the provisions of any securities laws or regulations conflict with Sections 3.9, 4.10 or 4.13 of this Indenture, the Company will comply
with the applicable securities laws and regulations and will be deemed to have complied with its obligations under Section 3.9, 4.10 or 4.13, as applicable, by virtue of such compliance. 
 Other than as specifically provided in this Section 3.9, any purchase pursuant to this Section 3.9 shall be made
pursuant to the provisions of Sections 3.1 through 3.6 hereof. 
 ARTICLE IV 
 COVENANTS 
 SECTION 4.1 Payment
of Notes. 
 (a) The Company shall pay or cause to be paid the principal of, premium, if any, and interest on the Notes on
the dates and in the manner provided in the Notes. Principal, premium, if any, and interest shall be considered paid for all purposes hereunder on the date the Paying

  

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Agent, if other than the Company or a Subsidiary thereof, holds, as of 12:00 noon (New York City time), money deposited by the Company in immediately available funds and designated for and
sufficient to pay all such principal, premium, if any, and interest then due. 
 (b) The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful. 
 SECTION 4.2 Maintenance of Office or Agency. 
 The Company shall maintain
an office or agency (which may be an office of the Trustee or an affiliate of the Trustee or Registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of
the Notes and this Indenture may be served. The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. The Company hereby designates the Corporate Trust Office of the
Trustee as one such office or agency of the Company in accordance with Section 2.3 hereof. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee and the Company hereby appoints the Trustee its agent to receive all such presentations, surrenders, notices and demands.

 The Company may also from time to time designate one or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such designations. The Company shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other
office or agency. 
 SECTION 4.3 Provision of Financial Information. 
 Whether or not required by the Commission, so long as any Notes are outstanding, the Company shall furnish to the Holders of Notes and make
available on a public website, or file electronically with the Commission through the Commission’s IDEA System (f/k/a EDGAR) (or any successor system), within the time periods specified in the Commission’s rules and regulations for
non-accelerated filers: 
 (1) all quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the Company were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with
respect to the annual information only, a report on the annual financial statements by the Company’s certified independent accountants; and 
 (2) all current reports that would be required to be filed with the Commission on Form 8-K if the Company were required to file such reports. 
  

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 In addition, to the extent not satisfied by the foregoing the Company and the Guarantors
will for so long as any Restricted Notes remain outstanding furnish to the Holders and to prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 
 Notwithstanding the foregoing, such requirements shall be deemed satisfied prior to the commencement of the Exchange Offer or the
effectiveness of the Shelf Registration Statement by the filing with the Commission of the Exchange Offer registration statement or shelf registration statement, and any amendments thereto, in accordance with the requirements of Form S-11, S-4 or
S-3, as applicable, with such financial information that satisfies Regulation S-X of the Securities Act. 
 The Company will
also hold a quarterly conference call to discuss the financial results of the Company with holders of the Notes, beginning with a discussion of the quarter ending October 31, 2009. Such conference call may be part of or separate from any
conference call relating to the financial results of Parent or any of its Subsidiaries (including, for the avoidance of doubt, as part of the conference call contemplated by Section 12.3). The conference call will not be later than five
business days from the date on which the financial information of Delaware is filed or otherwise made available to holders of the Notes in accordance with this Indenture. No fewer than two days prior to the conference call, the Company shall issue a
press release to the appropriate wire services announcing the time, date and access details of such conference call. 
 SECTION 4.4
Compliance Certificate. 
 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year,
an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether each has kept,
observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that, to his or her knowledge, each entity is not in default in the performance or observance of any of
the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that, to his or her knowledge, no event has occurred and remains in existence by reason of which payments on account of the principal of, premium, if any, or interest on the Notes is prohibited or if such
event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto. 
 The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto. 
  

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 SECTION 4.5 Taxes. 
 The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency all material taxes, assessments and governmental levies, except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes. 
 SECTION 4.6 Stay, Extension and Usury Laws. 
 The Company covenants (to the extent that it may lawfully do so)
that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted. 
 SECTION 4.7 Limitation on Restricted Payments. 
 The Company shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly, make any Restricted Payment unless, at the time of and after giving effect to the proposed Restricted Payment: 
 (a) no Default in the payment in respect of principal or interest on the Notes or Event of Default shall have occurred and be
continuing or will occur as a consequence thereof; and 
 (b) after giving effect to such Restricted Payment on a
pro forma basis, the aggregate amount expended or declared for all Restricted Payments made on or after the Issue Date, shall not exceed the sum (without duplication) of: 
 (1) 50% of the Cumulative Free Cash Flow of the Company accrued on a cumulative basis during the period (taken as one
accounting period) from the beginning of the first full fiscal quarter after which the Issue Date occurs and ending on the last day of the fiscal quarter immediately preceding the date of such proposed Restricted Payment, plus 
 (2) 100% of the aggregate net cash proceeds received by the Company subsequent to the initial issuance of the Notes as a
contribution to its common equity capital or the sale of Equity Interests (other than Disqualified Stock), plus 
 (3) to the extent that any Investment (other than Permitted Investments) that was made on and after the Issue Date is sold for cash or otherwise disposed of, liquidated or repaid for cash or other assets, the lesser of (i) the initial
amount of such Investment, or (ii) to the extent not otherwise included in the calculation of Cumulative Free Cash Flow of the Company for such period, the net cash return of capital or net Fair Market Value of return of capital with respect to
such Investment, less the cost of any such disposition or liquidation, plus 
  

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 (4) Declined Offer Proceeds. 
 From time to time, the Company shall have the right (but not the obligation) to make an Offer to Purchase to all Holders of Notes utilizing
some or all of the Cumulative Free Cash Flow Offer Amount, at a Purchase Price not less than 100% of the Accreted Value of the Notes on the date of purchase, plus accrued and unpaid interest to but not including the date of purchase (each such
offer, a “Free Cash Flow Offer”), payable in cash. At the settlement of each Free Cash Flow Offer, the excess of (x) the Cumulative Free Cash Flow Offer Amount that was offered to Holders in such Free Cash Flow Offer over (y) the
total Cumulative Free Cash Flow Offer Amount actually used to purchase Notes in such Free Cash Flow Offer shall constitute “Declined Offer Proceeds” and such Declined Offer Proceeds shall be available to the Company to make Restricted
Payments pursuant to clause (4) of the preceding paragraph; provided that, 30 days after the expiration of any Free Cash Flow Offer, such amount shall no longer constitute “Declined Offer Proceeds.” If the Company’s purchase of
all Notes tendered into such Offer to Purchase as set forth above would exceed the Cumulative Free Cash Flow Offer Amount, the Trustee will select the Notes to be purchased on a pro rata basis. 
 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other applicable securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Offer to Purchase. 
 If the Company makes a Restricted Payment which, at the time of the making of such Restricted Payment, in the good faith determination of the Company, would be permitted under this
Section 4.7, such Restricted Payment shall be deemed to have been made in compliance with this Section 4.7 notwithstanding any subsequent adjustment made in good faith to the Company’s financial statements affecting
Cumulative Free Cash Flow. 
 SECTION 4.8 Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries. 
 The Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, cause or suffer to exist or become effective
or enter into any encumbrance or restriction (other than pursuant to this Indenture, any Note Guarantee or any law, rule, regulation or order) on the ability of any Subsidiary to (i) pay dividends or make any other distributions on its Equity
Interests owned by the Company or any Subsidiary or pay any Debt or other obligation owed to the Company or any Subsidiary, (ii) make loans or advances to the Company or any Subsidiary thereof or (iii) transfer any of its property or
assets to the Company or any Subsidiary. 
  

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 However, the preceding restrictions shall not apply to the following encumbrances or
restrictions existing under or by reason of: 
 (a) any encumbrance or restriction in existence on the Issue Date
and any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements, restructurings or refinancings, of any of the foregoing agreements or documents, provided that the amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or refinancings, in the good faith judgment of the Company, are no more restrictive, taken as a whole, with respect to such dividend or other payment restrictions in existence
on the Issue Date or refinancings thereof; 
 (b) any encumbrance or restriction pursuant to an agreement
relating to an acquisition of property or assets, so long as the encumbrances or restrictions in any such agreement relate solely to the property or assets so acquired (and are not or were not created in anticipation of or in connection with the
acquisition thereof); 
 (c) any encumbrance or restriction which exists with respect to a Person that becomes a
Subsidiary or merges with or into a Subsidiary of the Company on or after the Issue Date, which is in existence at the time such Person becomes a Subsidiary, but not created in connection with or in anticipation of such Person becoming a Subsidiary,
and which is not applicable to any Person or the property or assets of any Person other than such Person or the property or assets of such Person becoming a Subsidiary; 
 (d) any encumbrance or restriction by reason of applicable law, rule, regulation or order; 
 (e) any encumbrance or restriction under the sale of assets or Equity Interests, including, without limitation, any agreement
for the sale or other disposition of a Subsidiary that restricts distributions by that Subsidiary pending its sale or other disposition; 
 (f) any instrument governing Debt or Equity Interests of a Person acquired by the Company or any of the Subsidiaries as in effect at the time of such acquisition (except to the extent such Debt or Equity
Interests was Incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the
Person, so acquired, provided that, in the case of Debt, such Debt was permitted by the terms of this Indenture to be Incurred; and 
 (g) restrictions on cash or other deposits or net worth imposed by lessors in the ordinary course of business. 
 Nothing contained in this Section 4.8 shall prevent the Company or any Subsidiary from (i) creating, incurring, assuming or suffering to exist any Liens otherwise permitted pursuant to
Section 4.12 or (ii) restricting the sale or other disposition of property or assets of the Company or any of its Subsidiaries that secure Debt of the Company or any of its Subsidiaries Incurred in accordance with
Section 4.9 and Section 4.12. 
  

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 SECTION 4.9 Limitation on Incurrence of Debt. 
 The Company shall not, and shall not permit any of its Subsidiaries to, Incur any Debt (including Acquired Debt) or trade payables or issue
Preferred Stock (other than the Notes and the Note Guarantees and Debt or Preferred Stock issued to the Company or its Subsidiaries); provided that the Company and any of its Subsidiaries may Incur Debt or trade payables, in each case
incurred in the ordinary course of business, not secured by Liens, in an aggregate amount not to exceed $50.0 million at any one time outstanding. Notwithstanding anything set forth in this Indenture, in no event shall the Company or any Subsidiary
be permitted to guarantee the obligations of any other Person (other than the Company and its Subsidiaries). 
 SECTION 4.10 Limitation on
Asset Sales. 
 The Company shall not, and shall not permit any of its Subsidiaries to, consummate an Asset Sale unless:

 (1) the Company (or the Subsidiary, as the case may be) receives consideration at the time of the Asset Sale
at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; and 
 (2) at least 90% of the consideration received in the Asset Sale by the Company or such Subsidiary is in the form of cash, Cash Equivalents or Replacement Property. For purposes of this provision, (i) any liabilities, as shown on the
most recent consolidated balance sheet of the Company or any Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any Note Guarantee) that are assumed by the transferee of any such assets
pursuant to a customary assignment and assumption agreement that releases the Company or such Subsidiary from further liability; and (ii) any marketable securities received by the Company or any such Subsidiary from such transferee that are
converted by the Company into cash within 180 days of their receipt to the extent of the cash received in that conversion will be deemed to be cash. 
 Within 720 days after the receipt of any Net Cash Proceeds from an Asset Sale, the Company (or the applicable Subsidiary, as the case may be) may apply such Net Cash Proceeds at its option: 
 (i) to acquire all or substantially all of the assets of, or any Equity Interests of, another Person or make capital
expenditures, in compliance with Section 4.17; 
 (ii) to acquire Replacement Property; or

 (iii) any combination of the foregoing. 
 Any Net Cash Proceeds from Asset Sales that are not applied or invested as provided in the preceding paragraph of this
Section 4.10 will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will, within 30 days, commence an Offer to Purchase to all Holders of Notes equal to the
Excess Proceeds. The offer

  

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price in any Offer to Purchase will be equal to 100% of the principal amount plus accrued and unpaid interest to, but not including, the date of purchase, and will be payable in cash. If any
Excess Proceeds remain after consummation of an Offer to Purchase, the Company may use those funds for any purpose not otherwise prohibited by this Indenture and they will no longer constitute Excess Proceeds. If the aggregate principal amount of
Notes tendered exceeds the amount of Excess Proceeds, the Trustee will select the Notes to be purchased on a pro rata basis. Upon completion of each Offer to Purchase, the amount of Excess Proceeds will be reset at zero. 
 Pending the final application of any Net Cash Proceeds pursuant to this Section 4.10, the holder of such Net Cash Proceeds may
apply such Net Cash Proceeds temporarily to reduce Debt outstanding under a revolving credit facility or otherwise invest such Net Cash Proceeds in any manner not prohibited hereunder. 
 The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other applicable securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Offer to Purchase. To the extent that the provisions of any securities laws or regulations conflict with the Asset Sale
provisions of this Indenture, the Company shall comply with the applicable securities laws and regulations and will be deemed to have complied with its obligations under the Asset Sale provisions of this Indenture by virtue of such compliance.

 SECTION 4.11 Limitation on Transactions with Affiliates. 
 The Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction or series of related transactions, contract, agreement, loan, advance or guarantee with, or
for the benefit of, any Affiliate of the Company (each of the foregoing, an “Affiliate Transaction”) involving aggregate consideration in excess of $5.0 million, unless: 
 (i) such Affiliate Transaction is on terms that are not materially less favorable to the Company or the relevant Subsidiary
than those that could reasonably have been obtained in a comparable arm’s length transaction by the Company or such Subsidiary with an unaffiliated party; and 
 (ii) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration
in excess of $15.0 million, the Company delivers to the Trustee a resolution adopted in good faith by the majority of the Board of Directors of the Company approving such Affiliate Transaction and set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with clause (i) above; and 
 (iii) with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $40.0 million, the Company must obtain and deliver to the Trustee a written opinion of a nationally recognized investment banking,
accounting or appraisal firm stating that the transaction is fair to the Company or such Subsidiary, as the case may be, from a financial point of view. 
  

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 The foregoing limitations do not limit, and shall not apply to: 
 (1) Restricted Payments that are permitted by Section 4.7 hereof and Permitted Investments permitted under this
Indenture; 
 (2) the payment of reasonable and customary compensation and indemnities and other benefits to
members of the Board of Directors of the Company or a Subsidiary who are outside directors; 
 (3) the payment of
reasonable and customary compensation and other benefits (including retirement, health, option, deferred compensation and other benefit plans) and indemnities to officers and employees of the Company or any Subsidiary as determined by the Board of
Directors thereof in good faith; 
 (4) transactions between or among the Company and/or its Subsidiaries;

 (5) any agreement or arrangement as in effect on the Issue Date, including, without limitation, the Master
Lease and the Services Agreement and any amendment or modification thereto so long as such amendment or modification (taken as a whole) is not materially disadvantageous to the Holders of the Notes and in the case of the Master Lease, any amendments
or modification made in compliance with Section 4.17; 
 (6) any contribution of capital to the
Company; 
 (7) the issuance of Equity Interests (other than Disqualified Stock) of the Company to Parent or any
Permitted Holder or to any director, officer, employee or consultant; 
 (8) transactions permitted by, and
complying with, Article V; 
 (9) leases with any Affiliates (other than Parent or its Subsidiaries)
entered into in the ordinary course of business. 
 SECTION 4.12 Limitation on Liens. 
 The Company shall not, and shall not permit any of its Subsidiaries, directly or indirectly, to enter into, create, incur, assume or suffer
to exist any Liens of any kind securing Debt, other than Permitted Liens, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom. 
  

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 SECTION 4.13 Offer to Purchase upon Change of Control. 
 Upon the occurrence of a Change of Control, unless the Company has exercised its right to redeem all of the Notes pursuant to
Section 3.7, the Company will make an Offer to Purchase (the “Change of Control Offer”) all of the outstanding Notes at a Purchase Price in cash equal to 101% of the principal amount tendered, together with accrued
interest, if any, to but not including the Purchase Date (the “Change of Control Payment”). For purposes of the foregoing, an Offer to Purchase shall be deemed to have been made if (i) within 60 days following the date of the
consummation of a transaction or series of transactions that constitutes a Change of Control, the Company commences an Offer to Purchase for all outstanding Notes at the Purchase Price and (ii) all Notes properly tendered pursuant to the Offer
to Purchase are purchased on the terms of such Offer to Purchase. 
 The Change of Control provisions described above will be
applicable whether or not any other provisions of this Indenture are applicable. 
 The Company shall not be required to make a
Change of Control Offer upon a Change of Control if (i) a third party makes the Change of Control Offer contemporaneously with or upon a Change of Control, in the manner, at the times and otherwise in compliance with the requirements set forth
herein applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer or (ii) a notice of redemption has been given under Section 3.3. 

To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions of this Indenture,
the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.13 by virtue of such conflict. 
 In addition, an Offer to Purchase may be made in advance of a Change of Control, conditional upon such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of launching the Offer to Purchase. 
 SECTION 4.14 Corporate Existence.

 Subject to Article V hereof, as the case may be, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the corporate, partnership, limited liability company or other existence of each of its Subsidiaries in accordance with the respective organizational documents (as the same may
be amended from time to time) of the Company or any such Subsidiary and the rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries; provided that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of any of its Subsidiaries, if the Board of Directors of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders. 
 SECTION
4.15 Additional Note Guarantees. 
 If the Company or any of its Subsidiaries acquires or creates another Subsidiary
after the Issue Date, then that newly acquired or created Subsidiary shall become a Guarantor pursuant to Article X hereof within 60 days of the date on which it was acquired or created. 
  

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 SECTION 4.16 Books and Records. 
 The Company shall, and shall cause each Subsidiary to, keep proper books of record and account, in which full and correct entries shall be
made of all financial transactions of the Company and each of the Subsidiaries, in accordance with GAAP. 
 SECTION 4.17 Conduct of Business
/ Amendments to the Master Lease. 
 The Company and its Subsidiaries shall not hold any material assets, become liable for
any material obligations, engage in any trade or business, or conduct any business activity, other than (1) owning the equity interests of its Subsidiaries, (2) owning or leasing properties that are leased or sub-leased to Parent or one of
its Subsidiaries pursuant to the Master Lease or otherwise on terms (taken as a whole) that are similar to, in the reasonable judgment of the Company, the terms of the Master Lease or leased or subleased pursuant to a Non-Toys Lease, (3) the
incurrence of Debt that is permitted to be incurred under Section 4.9, (4) the sale of assets in compliance with Section 4.10 and (5) other activities incidental or relating thereto (which, for the avoidance of
doubt, may include the acquisition of additional properties or entities that engage solely in activities that fall within clauses (1) through (4)). 
 The Company shall not permit any amendments or waivers to the Master Lease that (taken as a whole) are materially adverse to the Holders; provided that any amendment or modification that decreases
the rent or other amounts due to the Company or other payment terms (including, without limitation, any changes to the time, manner, method or currency of payment) under the Master Lease shall be deemed to be materially adverse under all
circumstances; provided further that amendments of the Master Lease (and corresponding rent reduction) pursuant to the terms of the Master Lease either 
 (x) in connection with an asset sale made in accordance with Section 4.10 and pursuant to Section 1.3 of the
Master Lease, or 
 (y) pursuant to Section 10.2 or 10.3 of the Master Lease 
 shall be deemed not to be materially adverse to the Holders. 
 Neither the Company nor any of its Subsidiaries shall effect an amendment, modification or waiver of its organizational documents in any manner materially adverse to the Holders of the Notes, including,
without limitation, any amendment, modification or waiver to or of the provisions of Section 8(d) thereof or the analogous provisions of the organizational documents of any Subsidiary (“Limitation on Activities”) thereof. 

 

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 ARTICLE V 
 SUCCESSORS 
 SECTION 5.1 Consolidation, Merger, Conveyance, Transfer or Lease. 

The Company shall not, in any transaction or series of transactions, consolidate with or merge into any other Person (other than a merger
of a Subsidiary into the Company in which the Company is the continuing Person or the merger of a Subsidiary into or with another Subsidiary or another Person that as a result of such transaction becomes or merges into a Subsidiary), or sell,
assign, convey, transfer, lease or otherwise dispose of all or substantially all of the assets of the Company and its Subsidiaries (determined on a consolidated basis), taken as a whole, to any other Person, unless: 
 (i) either: (a) the Company shall be the continuing Person or (b) the Person (if other than the Company) formed by
such consolidation or into which the Company is merged, or the Person that acquires, by sale, assignment, conveyance, transfer, lease or other disposition, all or substantially all of the property and assets of the Company (such Person, the
“Surviving Entity”), (1) shall be a corporation, partnership, limited liability company or similar entity organized and validly existing under the laws of the United States, any political subdivision thereof or any state
thereof or the District of Columbia and (2) shall expressly assume, by a supplemental indenture, the due and punctual payment of all amounts due in respect of the principal of (and premium, if any) and interest on all the Notes and the
performance of the covenants and obligations of the Company under this Indenture and the Registration Rights Agreement; 
 (ii) immediately after giving effect to such transaction or series of transactions on a pro forma basis (including, without limitation, any Debt Incurred or anticipated to be Incurred in connection with or in respect of such
transaction or series of transactions), no Default or Event of Default shall have occurred and be continuing or would result therefrom (including, without limitation, no Default or Event of Default related to the failure to comply with
Section 4.17); and 
 (iii) the Company delivers, or causes to be delivered, to the Trustee, in form
satisfactory to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, conveyance, assignment, transfer, lease or other disposition complies with the requirements of this Indenture.

 For the avoidance of doubt, the transactions contemplated by the Master Lease shall not be subject to the foregoing.

 Notwithstanding the foregoing, the Company shall not be required to satisfy the requirements of the preceding clauses
(ii) and (iii) in connection with: 
 (a) a merger between the Company and a Subsidiary that is a
Wholly Owned Subsidiary of the Company; or 
  

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 (b) a merger between the Company and an Affiliate organized solely for the
purpose of converting the Company into an entity organized under the laws of the United States or any political subdivision or state thereof, so long as, in each case, the amount of Debt of the Company and its Subsidiaries is not increased thereby.

 For all purposes of this Indenture and the Notes, upon such transaction or series of transactions, all Debt and all Liens on
property or assets, of the Surviving Entity and its Subsidiaries that was not Debt, or were not Liens on property or assets, of the Company and its Subsidiaries immediately prior to such transaction or series of transactions shall be deemed to have
been Incurred upon such transaction or series of transactions. 
 SECTION 5.2 Successor Person Substituted. 
 Upon any consolidation or merger, or any sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of
the assets of the Company in accordance with Section 5.1 hereof, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, conveyance, transfer, lease or other
disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this Indenture referring to the “Company” shall
refer instead to the successor corporation and not to the Company), and shall exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein and when such
successor Person duly assumes all the obligations and covenants of the Company pursuant to this Indenture and the Notes the predecessor Person shall be relieved of all such obligations; provided, however, that in the event of a lease,
the predecessor shall not be released from the payment of principal and interest or other obligations on the Notes. 
 ARTICLE VI

 DEFAULTS AND REMEDIES 
 SECTION 6.1 Events of Default. 
 Each of the following constitutes an “Event of Default”:

 (1) default in the payment in respect of the principal of (or premium, if any, on) any Note when due and
payable (whether at Stated Maturity or upon repurchase, acceleration, optional redemption or otherwise); 
 (2)
default in the payment of any interest upon any Note when it becomes due and payable, and continuance of such default for a period of 30 days; 
 (3) failure to perform or comply with Section 4.3 or Section 12.3 hereof after 15 days after the time periods specified therein and continuance of such failure to perform or comply
for a period of 120 days after written notice thereof has been given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 30% in aggregate principal amount of the outstanding Notes; 
  

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 (4) except as permitted by this Indenture, any Note Guarantee of any
Significant Subsidiary (or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary) shall for any reason cease to be, or it shall be asserted by any Guarantor or the Company not to be, in full force and effect and
enforceable in accordance with its terms other than by reason of the termination of this Indenture or the release of such Guarantee in compliance with this Indenture; 
 (5) default in the performance, or breach, of any covenant or agreement of the Company, any Guarantor or Parent in this
Indenture (other than a covenant or agreement a default in whose performance or whose breach is specifically dealt with in clauses (1), (2) (3) or (4) above), and continuance of such default or breach for a period of 60 days after
written notice thereof has been given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 30% in aggregate principal amount of the outstanding Notes; 
 (6) a default or defaults under any bonds, debentures, notes or other evidences of Debt (other than the Notes) by the Company
or its Subsidiaries having, individually or in the aggregate, a principal or similar amount outstanding of at least $20.0 million, whether such Debt now exists or shall hereafter be created, which default or defaults shall have resulted in the
acceleration of the maturity of such Debt prior to its express maturity or shall constitute a failure to pay at least $20.0 million of such Debt when due and payable after the expiration of any applicable grace period with respect thereto;

 (7) the entry against the Company or any Significant Subsidiary of the Company of a final judgment or final
judgments for the payment of money in an aggregate amount in excess of $20.0 million, by a court or courts of competent jurisdiction, which judgments remain undischarged, unwaived, unstayed, unbonded or unsatisfied for a period of 60 consecutive
days; 
 (8) (i) Delaware, the Company or any Significant Subsidiary of the Company (or any group of Subsidiaries
that, taken together, would constitute a Significant Subsidiary), pursuant to or within the meaning of any Bankruptcy Law: 
 (a) commences a voluntary case, 
 (b) consents to the entry of an
order for relief against it in an involuntary case, 
 (c) consents to the appointment of a custodian of it or
for all or substantially all of its property, 
 (d) makes a general assignment for the benefit of its creditors,
or 
 (e) generally is not paying its debts as they become due; or 
  

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 (ii) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: 
 (a) is for relief against Delaware, the Company or any Significant Subsidiary of the
Company (or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary), in an involuntary case; 
 (b) appoints a custodian of Delaware, the Company or any Significant Subsidiary of the Company (or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary); or

 (c) orders the liquidation of Delaware, the Company or any Significant Subsidiary of the Company (or any group
of Subsidiaries that, taken together, would constitute a Significant Subsidiary); 
 and the order or decree remains unstayed and
in effect for 60 consecutive days; or 
 (9) any payment Event of Default in excess of $15.0 million under the
Master Lease beyond the period of grace set forth in the Master Lease, the Master Lease terminates in full or otherwise ceases to be in effect or any responsible officer of Delaware denies its obligations under the Master Lease or gives notice that
the Master Lease is not in effect 
 SECTION 6.2 Acceleration. 
 If an Event of Default (other than an Event of Default specified in clause (8) of Section 6.1 with respect to the Company)
occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 30% in aggregate principal amount of the outstanding Notes may declare the principal of the Notes and any accrued interest on the Notes to be due and
payable immediately by a notice in writing to the Company (and to the Trustee if given by Holders); provided, however, that after such acceleration, but before a judgment or decree based on acceleration, the Holders of a majority in
aggregate principal amount of the outstanding Notes may, under certain circumstances, rescind and annul such acceleration if all Events of Default, other than the nonpayment of accelerated principal of or interest on the Notes, have been cured or
waived as provided in this Indenture. 
 In the event of a declaration of acceleration of the Notes solely because an Event of
Default described in clause (6) of Section 6.1 has occurred and is continuing, the declaration of acceleration of the Notes shall be automatically rescinded and annulled if the event of default or payment default triggering such
Event of Default pursuant to clause (6) of Section 6.1 shall be remedied or cured by the Company or one of its Subsidiaries or waived by the holders of the relevant Debt within 20 Business Days after the declaration of acceleration
with respect thereto and if the rescission and annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction obtained by the Trustee for the payment of amounts due on the Notes.

  

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 If an Event of Default specified in clause (8) of Section 6.1 occurs with
respect to the Company, the principal of and any accrued interest on the Notes then outstanding shall ipso facto become immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. The Trustee may
withhold from Holders notice of any Default (except Default in payment of principal of, premium, if any, and interest) if the Trustee determines that withholding notice is in the interests of the Holders to do so. 
 No Holder of any Note will have any right to institute any proceeding with respect to this Indenture or for any remedy thereunder, unless
such Holder shall have previously given to the Trustee written notice of a continuing Event of Default and unless also the Holders of at least 30% in aggregate principal amount of the outstanding Notes shall have made written request to the Trustee,
and provided indemnity reasonably satisfactory to the Trustee, to institute such proceeding as Trustee, and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of the outstanding Notes a direction
inconsistent with such request and shall have failed to institute such proceeding within 60 days. Such limitations do not apply, however, to a suit instituted by a Holder of a Note directly (as opposed to through the Trustee) for enforcement of
payment of the principal of (and premium, if any) or interest on such Note on or after the respective due dates expressed in such Note. 
 SECTION 6.3 Other Remedies. 
 If an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal, premium, if any, interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 
 The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative to
the extent permitted by law. 
 SECTION 6.4 Waiver of Past Defaults. 
 The Holders of not less than a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf
of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under this Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the Notes (other than as
a result of an acceleration), which shall require the consent of all of the Holders of the Notes then outstanding (provided that the Holders of a majority in aggregate principal amount of the then outstanding Notes may rescind an acceleration and
its consequences, including any related payment default that resulted from such acceleration). 
 SECTION 6.5 Control by Majority.

 The Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the time, method and place
of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust power conferred on it. However, (i) the Trustee

  

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may refuse to follow any direction that conflicts with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders or that may involve the Trustee
in personal liability, and (ii) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 
 SECTION 6.6 Limitation on Suits. 
 A Holder may pursue a remedy with respect to this Indenture or the Notes
only if: 
 (a) the Holder gives to the Trustee written notice of a continuing Event of Default or the Trustee receives such
notice from the Company; 
 (b) the Holders of at least 30% in aggregate principal amount of the then outstanding Notes make a
written request to the Trustee to pursue the remedy; 
 (c) such Holder or Holders offer and, if requested, provide to the
Trustee indemnity or security reasonably satisfactory to the Trustee against any loss, liability or expense; 
 (d) the Trustee
does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of such indemnity or security; and 
 (e) during such 60-day period the Holders of a majority in aggregate principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent with the request. 
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder.

 SECTION 6.7 Rights of Holders of Notes to Receive Payment. 
 Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal, premium, if any, and
interest on or after the respective due dates expressed in the Note (including in connection with an offer to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder. 
 SECTION 6.8 Collection Suit by Trustee. 
 If an Event of Default specified in Section 6.1(1) or (2) hereof occurs and is continuing, the Trustee is authorized
to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest
and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  

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 SECTION 6.9 Trustee May File Proofs of Claim. 
 The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relative to the Company (or any other
obligor upon the Notes), its creditors or its property, shall be entitled to participate as a member, voting or otherwise, of any official committee of creditors appointed in such matter, and shall be entitled and empowered to collect, receive and
distribute any money or other securities or property payable or deliverable upon the conversion or exchange of the Notes or on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money and securities that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding. 
 SECTION 6.10 Priorities. 
 Any money collected by the Trustee pursuant to this Article VI and any money or other property distributable in respect of the
Company’s obligations under this Indenture after an Event of Default shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any)
or interest, if any, upon presentation of the Notes and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 First: to the Trustee (including any predecessor Trustee), its agents and attorneys for amounts due under
Section 7.7 hereof, including payment of all reasonable compensation, expense and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection; 
 Second: to Holders of Notes for amounts due and unpaid on the Notes for principal, premium, if any, and interest
ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, and interest respectively; and 
  

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 Third: to the Company or to such party as a court of competent
jurisdiction shall direct. 
 The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10. 
 SECTION 6.11 Undertaking for Costs. 
 In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder of a Note pursuant to Section 6.7 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 
 ARTICLE VII 
 TRUSTEE 
 SECTION 7.1 Duties of Trustee. 
 (a) If an Event of Default of which the Trustee has knowledge has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
 (b)
Except during the continuance of an Event of Default of which the Trustee has knowledge: 
 (i) the duties of the
Trustee shall be determined solely by the express provisions of this Indenture and the TIA and the Trustee need perform only those duties that are specifically set forth in this Indenture or the TIA and no others, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and 
 (ii) in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However,
the Trustee shall be under a duty of reasonable care to examine the certificates and opinions specifically required to be furnished to it to determine whether or not they conform as to form with the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts or conclusions stated therein). 
  

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 (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that: 
 (i) this paragraph does not limit the
effect of paragraphs (b) or (e) of this Section 7.1; 
 (ii) the Trustee shall not be
liable for any error of judgment made in good faith by an officer of the Trustee, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
 (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.5 hereof. 
 (d) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c), (e) and (f) of this Section 7.1. 
 (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and powers under
this Indenture at the request or direction of any Holders, unless such Holder shall have offered to the Trustee security or indemnity reasonably satisfactory to it against any loss, liability or expense. 
 (f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law and except for money held in trust pursuant to Article VIII. 
 (g) The Trustee shall not be charged with knowledge of any Event of Default unless either (1) a Responsible Officer shall have actual
knowledge of such Event of Default or (2) written notice of such Event of Default shall have been received by a Responsible Officer in accordance with the provisions of this Indenture. 
 SECTION 7.2 Rights of Trustee. 
 (a) The Trustee, as Trustee and acting in each of its capacities hereunder, may conclusively rely and shall be fully protected in acting or refraining from acting on any document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or matter stated in any such document. 
 (b) Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion of Counsel. The Trustee may consult with counsel of the Trustee’s own choosing and the Trustee shall be fully protected from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and
in reliance on the written advice or opinion of such counsel or on any Opinion of Counsel. 
  

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 (c) The Trustee may act through its attorneys and agents and shall not be responsible for
the misconduct or negligence of any attorney or agent appointed with due care. 
 (d) The Trustee shall not be liable for any
action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture. Any request or direction of the Company mentioned herein shall be sufficiently evidenced by an
Officers’ Certificate and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution. Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate. 
 (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company or a Guarantor shall
be sufficient if signed by an Officer of the Company or such Guarantor. 
 (f) The Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee security and indemnity reasonably satisfactory to the Trustee against the
costs, expenses and liabilities that might be incurred by it in compliance with such request or direction. 
 (g) The Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or documents, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine during normal business hours the books, records and premises of the Company or any Guarantor, personally or by agent or attorney at the sole cost of the Company, and shall incur no liability or additional liability of any kind
by reason of such inquiry or investigation. 
 (h) The rights, privileges, protections and benefits given to the Trustee,
including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Persons employed to act hereunder. 
 (i) The Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in
any such certificate previously delivered and not superseded. 
  

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 (j) Delivery of reports, information and documents to the Trustee under
Section 4.3 and Section 12.3 is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 
 (k) In no event shall the Trustee be responsible or liable for special, punitive, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless if the form of action. 
 SECTION 7.3 Individual Rights of Trustee. 
 The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if
it were not Trustee. However, in the event that the Trustee acquires any conflicting interest as defined in Section 310(b) of the TIA, it must eliminate such conflict within 90 days, apply to the Commission for permission to continue as Trustee
or resign. Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof. 
 SECTION 7.4 Trustee’s Disclaimer. 
 The Trustee shall not be responsible for and makes no representation
as to the validity or adequacy of this Indenture or the Notes, and it shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company’s or upon the Company’s direction under any provision
of this Indenture, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes, any
statement or recital in any document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication on the Notes. 
 SECTION 7.5 Notice of Defaults. 
 If a Default occurs and is continuing and
if it is actually known to a Responsible Officer of the Trustee, the Trustee shall send electronically or mail to Holders a notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal of, premium, if
any, or interest on any Note, the Trustee may withhold the notice if and so long as the Trustee in good faith determines that withholding the notice is in the interests of the Holders. 
 SECTION 7.6 Reports by Trustee to Holders of the Notes. 
 Within 60 days
after each May 15 beginning with May 15, 2010, and for so long as Notes remain outstanding, the Trustee shall send to the Holders a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event
described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). The Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail all reports as required
by TIA § 313(c). 
  

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 A copy of each report at the time of its delivery to the Holders shall be mailed or
delivered to the Company and filed with the Commission and each stock exchange on which the Company has informed the Trustee in writing the Notes are listed in accordance with TIA § 313(d). The Company shall promptly notify the Trustee when the
Notes are listed on any stock exchange and of any delisting thereof. 
 SECTION 7.7 Compensation and Indemnity. 
 The Company shall pay to the Trustee from time to time compensation for its acceptance of this Indenture and services hereunder as the
parties shall agree in writing from time to time. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses shall include, but not limited to, the reasonable compensation, disbursements and expenses of the Trustee’s agents and
counsel. 
 The Company and the Guarantors, jointly and severally, shall indemnify the Trustee (which for purposes of this
Section 7.7 shall include its officers, directors, employees and agents) against any and all claims, damages, losses, liabilities or expenses (including attorneys’ fees) incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company (including this Section 7.7) and defending itself against any claim (whether asserted by
the Company or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder except to the extent any such loss, claim, damage, liability or expense may be attributable to its
negligence, willful misconduct or bad faith. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The
Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of one such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. 
 The obligations of the Company and the Guarantors under this Section 7.7 shall survive the satisfaction and discharge or
termination for any reason of this Indenture or the resignation or removal of the Trustee. 
 To secure the Company’s and
the Guarantors’ payment obligations in this Section 7.7, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal or interest, if any, on
particular Notes. Such Lien shall survive the satisfaction and discharge or termination for any reason of this Indenture and the resignation or removal of the Trustee. 
  

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 In addition, and without prejudice to the rights provided to the Trustee under any of the
provisions of this Indenture, when the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(8) hereof occurs, the expenses and the compensation for the services (including the fees and expenses
of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 
 “Trustee” for the purposes of this Section 7.7 shall include any predecessor Trustee and the Trustee in each of its capacities hereunder and each agent, custodian and other person employed to act hereunder;
provided, however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not affect the rights of any other Trustee hereunder. 
 The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable. 
 SECTION 7.8 Replacement of Trustee. 
 A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.8. 
 The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company in writing. The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 
 (a) the Trustee fails to comply with Section 7.10 hereof; 
 (b) the Trustee is adjudged a bankrupt or an
insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 
 (c) a Custodian or public
officer takes charge of the Trustee or its property; or 
 (d) the Trustee becomes incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall notify each Holder of
such event and shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of all then outstanding Notes may appoint a successor Trustee to replace the successor
Trustee appointed by the Company. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Promptly after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided in Section 7.7 hereof, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall deliver notice of its succession to each Holder. 
  

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 If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in aggregate principal amount of all outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

If the Trustee fails to comply with Section 7.10 hereof, any Holder may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee. 
 Notwithstanding replacement of the Trustee pursuant to
this Section 7.8, the Company’s and Guarantors’ obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee. 
 SECTION 7.9 Successor Trustee by Merger, Etc. 
 If the Trustee or any Agent
consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another Person, the successor Person without any further act shall be the successor Trustee or any Agent, as applicable. 
 SECTION 7.10 Eligibility; Disqualification. 
 There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws
to exercise corporate trustee power and that is subject to supervision or examination by federal or state authorities. The Trustee together with its affiliates shall at all times have a combined capital and surplus of at least $50.0 million as set
forth in its most recent annual report of condition. 
 This Indenture shall always have a Trustee who satisfies the
requirements of TIA §§ 310(a)(l), (2) and (5). If this Indenture becomes qualified under the TIA, the Trustee shall be subject to TIA § 310(b) including the provision in § 310(b)(1); provided that there
shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities, or certificates of interest or participation in other securities, of the Company or the Guarantors are outstanding if the
requirements for exclusion set forth in TIA § 310(b)(1) are met. 
 SECTION 7.11 Preferential Collection of Claims Against the
Company. 
 The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
 SECTION 7.12 Trustee’s Application for Instructions from the Company. 
 Any application by the Trustee for
written instructions from the Company may, at the option of the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such
omission shall be effective. 
  

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 ARTICLE VIII 
 DEFEASANCE AND COVENANT DEFEASANCE 
 SECTION 8.1 Option to Effect Defeasance or Covenant
Defeasance. 
 The Company may, at the option of its Board of Directors evidenced by a Board Resolution set forth in an
Officers’ Certificate, at any time, elect to have either the first paragraph of Section 8.2 or 8.3 hereof applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII. 

SECTION 8.2 Defeasance and Discharge. 
 Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.2, the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.4 hereof, be deemed to have been discharged from its obligations (and discharged Parent from all its obligations hereunder) with respect to all outstanding Notes and all obligations of the Guarantors discharged with respect to the
Note Guarantees (and all covenants of Parent shall terminate) on the date the conditions set forth below are satisfied (hereinafter, “defeasance”). For this purpose, defeasance means that the Company and the Note Guarantors shall be
deemed to have paid and discharged the entire Debt represented by the outstanding Notes and Note Guarantees, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 hereof and the other Sections of
this Indenture referred to in (a) and (b) below, and to have satisfied all of its other obligations under such Notes and this Indenture (and all covenants of Parent shall be terminated) (and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
payments in respect of the principal of, premium, if any, and interest, if any, on such Notes when such payments are due from the trust referred to in Section 8.4(l); (b) the Company’s obligations with respect to such Notes under
Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.10 and 4.2 hereof; (c) the rights, powers, trusts, benefits and immunities of the Trustee, including without limitation thereunder, under Section 7.7, 8.5 and 8.7 hereof and the Company’s
obligations in connection therewith; (d) the Company’s rights pursuant to Section 3.7; and (e) the provisions of this Article VIII. Subject to compliance with this Article VIII, the Company may exercise its option under this
Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 hereof. 
 In addition, the Company,
the Guarantors and Parent may terminate the obligations under this Indenture when: 
 (1) either: (A) all
Notes theretofore authenticated and delivered have been delivered to the Trustee for cancellation, or (B) all such Notes not theretofore delivered to the Trustee for cancellation (i) have become due and payable or (ii) will become due
and payable within one year or are to be called for redemption within one year (a “Discharge”) under irrevocable arrangements satisfactory to the Trustee for the giving of notice

  

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of redemption by the Trustee in the name, and at the expense, of the Company, and the Company has irrevocably deposited or caused to be deposited with the Trustee funds in an amount sufficient to
pay and discharge the entire indebtedness on the Notes, not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest to the Stated Maturity or date of redemption; 
 (2) the Company has paid or caused to be paid all other sums then due and payable under this Indenture by the Company;

 (3) the deposit will not result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Guarantor is a party or by which the Company or any Guarantor is bound; 
 (4) the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Notes at maturity or on the redemption date, as the case may be; and 
 (5) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel reasonably acceptable to
the Trustee, each stating that all conditions precedent under this Indenture relating to the Discharge have been complied with. 
 SECTION 8.3
Covenant Defeasance. 
 Upon the Company’s exercise under Section 8.1 hereof of the option applicable to
this Section 8.3, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be released from its obligations (and Parent shall be released from its obligations) under the covenants
contained in Sections 4.3, 4.4, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.16, 4.17, 5.1, and Parent shall be released from its obligations under Sections
12.1, 12.2, 12.3, 12.4, 12.5 and 12.6 hereof with respect to the outstanding Notes on and after the date the conditions set forth below are satisfied (hereinafter, “covenant defeasance”),
and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to
be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, covenant defeasance means that, with respect to the outstanding
Notes, the Company or any of its Subsidiaries (or, as applicable, Parent) may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason
of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under
Section 6.1 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.1 hereof of the option applicable
to this Section 8.3, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, Sections 6.1(3), (5), (6), (7) and (8) (except with respect to the Company) and
(9) hereof shall not constitute Events of Default. 
  

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 SECTION 8.4 Conditions to Defeasance or Covenant Defeasance. 
 The following shall be the conditions to the application of the election pursuant to Section 8.1 of defeasance pursuant to
Section 8.2 or covenant defeasance pursuant to 8.3 hereof to the outstanding Notes: 
 In order to exercise
either defeasance or covenant defeasance: 
 (1) the Company must irrevocably have deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to the benefits of the Holders of such Notes: (A) money in an amount, or
(B) U.S. government obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than the due date of any payment, money in an amount or (C) a
combination thereof, in each case sufficient without reinvestment, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and
which shall be applied by the Trustee to pay and discharge, the entire indebtedness in respect of the principal of and premium, if any, and interest on such Notes on the Stated Maturity thereof or (if the Company has made irrevocable arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name and at the expense of the Company) the redemption date thereof, as the case may be, in accordance with the terms of this Indenture and such Notes;

 (2) in the case of defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel stating
that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of this Indenture, there has been a change in the applicable United States federal income tax law, in
either case (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the Holders of such Notes will not recognize gain or loss for United States federal income tax purposes as a result of the deposit, defeasance
and discharge to be effected with respect to such Notes and will be subject to United States federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit, defeasance and discharge were not to
occur; 
 (3) in the case of covenant defeasance, the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of such outstanding Notes will not recognize gain or loss for United States federal income tax purposes as a result of the deposit and covenant defeasance to be effected with respect to such Notes and will be
subject to federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit and covenant defeasance were not to occur; 
 (4) no Default or Event of Default with respect to the outstanding Notes shall have occurred and be continuing at the time of
such deposit after giving effect thereto (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit and the grant of any Lien to secure such borrowing); 
  

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 (5) such defeasance or covenant defeasance shall not cause the Trustee to
have a conflicting interest within the meaning of the TIA (assuming all Notes are in default within the meaning of the TIA); 
 (6) such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, any material agreement or material instrument (other than this Indenture) to which
the Company is a party or by which the Company is bound; and 
 (7) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent with respect to such defeasance or covenant defeasance have been complied with. 
 Notwithstanding the foregoing, the Opinion of Counsel required by clause (2) above with respect to a defeasance need not to be
delivered if all Notes not therefore delivered to the Trustee for cancellation (x) have become due and payable, or (y) will become due and payable at Stated Maturity within one year under arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense, of the Company. 
 SECTION 8.5 Deposited Money and Government
Securities to Be Held in Trust; Other Miscellaneous Provisions. 
 Subject to Section 8.6 hereof, all money and
non-callable U.S. government obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”) pursuant to
Section 8.4 hereof in respect of the outstanding Notes shall be held in trust, shall not be invested, and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company or any Subsidiary acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest,
but such money need not be segregated from other funds except to the extent required by law. 
 The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable U.S. government obligations deposited pursuant to Section 8.4 hereof or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes. 
 Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the written request of the Company and be relieved of all liability with respect to any money or
non-callable U.S. government obligations held by it as provided in Section 8.4 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.4(1) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent defeasance or covenant defeasance. 
  

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 SECTION 8.6 Repayment to Company. 
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of,
premium, if any, or interest, if any, on any Note and remaining unclaimed for one year after such principal and premium, if any, or interest has become due and payable shall be paid to the Company on its written request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company
cause to be published once, in The New York Times or The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of
such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Company. 
 SECTION 8.7
Reinstatement. 
 If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable U.S.
government obligations in accordance with Section 8.2 or 8.3 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application,
then the obligations of the Company under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.2 or 8.3 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent. 
 ARTICLE IX 
 AMENDMENT, SUPPLEMENT AND WAIVER 
 SECTION 9.1 Without Consent of Holders of the Notes. 
 Without the consent of any Holders, the Company, the Guarantors and the Trustee, at any time and from time to time, may enter into one or
more indentures supplemental to this Indenture and the Note Guarantees for any of the following purposes: 
 (1)
to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company in this Indenture, the Note Guarantees and the Notes; 
  

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 (2) to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power herein conferred upon the Company; 
 (3) to add additional Events of Default;

 (4) to provide for uncertificated Notes in addition to or in place of the certificated Notes; 
 (5) to evidence and provide for the acceptance of appointment under this Indenture by a successor Trustee; 
 (6) to add a Guarantor or to release a Guarantor in accordance with this Indenture; 
 (7) to cure any ambiguity, defect, omission, mistake or inconsistency; 
 (8) to conform the text of this Indenture or the Notes to any provision of the “Description of Notes” in the
Offering Memorandum to the extent that that such provision was indented to be a verbatim recitation of the corresponding provision in the “Description of Notes”; 
 (9) to effect or maintain the qualification of this Indenture under the Trust Indenture Act; or 
 (10) to add security to the Notes or the Note Guarantees. 
 SECTION 9.2 With Consent of Holders of Notes. 
 With the consent of the
Holders of not less than a majority in aggregate principal amount of the outstanding Notes (including consents obtained in connection with a purchase of or tender offer or exchange offer for the Notes), the Company, the Guarantors and the Trustee
may enter into an indenture or indentures supplemental to this Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or the Notes or of modifying in any manner the
rights of the Holders under this Indenture, including the definitions herein; provided that (i) the consent of the Holders of not less than two-thirds of the aggregate principal amount of the outstanding Notes (including consents
obtained in connection with a purchase of or tender offer or exchange offer for the Notes) shall be required for any amendment to Section 4.9 and Section 4.17 hereof and (ii) no such supplemental indenture shall, without
the consent of the Holder of each outstanding Note affected thereby: 
 (1) change the Stated Maturity of any
Note or of any installment of interest on any Note, or reduce the amount payable in respect of the principal thereof or the rate of interest thereon or any premium payable thereon, or reduce the amount that would be due

  

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and payable on acceleration of the maturity thereof, or change the place of payment where, or the coin or currency in which, any Note or any premium or interest thereon is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof, or change the date on which any Notes may be subject to redemption or reduce the Redemption Price therefor (other than the provisions set forth
in Section 4.10 and Section 4.13 hereof), 
 (2) reduce the percentage in aggregate
principal amount of the outstanding Notes, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture, 
 (3) modify the obligations of the
Company to make Offers to Purchase upon a Change of Control or from the Excess Proceeds of Asset Sales if such modification was done after the occurrence of such Change of Control or such Asset Sale, 
 (4) modify or change any provision of this Indenture affecting the ranking of the Notes or any Note Guarantee in a manner
adverse to the Holders of the Notes, 
 (5) modify any of the provisions of this paragraph or provisions relating
to waiver of defaults or certain covenants, except to increase any such percentage required for such actions or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each
outstanding Note affected thereby, or 
 (6) release any Note Guarantees required to be maintained under this
Indenture (other than in accordance with the terms of this Indenture). 
 The Holders of not less than a majority in aggregate
principal amount of the outstanding Notes on behalf of the Holders of all the Notes may consent (including consents obtained in connection with a purchase of or tender offer or exchange offer for the Notes) to the waiver of any past default under
this Indenture and its consequences, except a default: 
 (1) in any payment in respect of the principal of (or
premium, if any) or interest on any Notes (other than any Note which is required to have been purchased pursuant to an Offer to Purchase which has been made by the Company), or 
 (2) in respect of a covenant or provision hereof which under this Indenture cannot be modified or amended without the consent
of the Holder of each outstanding Note affected. 
 The consent of the Holders is not necessary under the Indenture to approve the particular
form of any proposed amendment. It is sufficient if such consent approves the substance of the proposed amendment. 
  

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 Notwithstanding anything to the contrary herein, no supplemental indenture shall modify or
change any provision of this Indenture affecting the covenants of Parent without Parent’s prior written consent. 
 SECTION 9.3
Compliance with Trust Indenture Act. 
 Every amendment or supplement to this Indenture or the Notes shall be set forth
in an amended or supplemental indenture that complies with the TIA as then in effect. 
 SECTION 9.4 Revocation and Effect of Consents.

 Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by
the Holder and every subsequent Holder of that Note or portion of the Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on the Note. However, any such Holder or subsequent Holder may
revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective. When an amendment, supplement or waiver becomes effective in accordance with its terms, it
thereafter binds every Holder. 
 The Company may, but shall not be obligated to, fix a record date for determining which
Holders consent to such amendment, supplement or waiver. If the Company fixes a record date, the record date shall be fixed at (i) the later of 30 days prior to the first solicitation of such consent or the date of the most recent list of
Holders furnished for the Trustee prior to such solicitation pursuant to Section 2.5 hereof or (ii) such other date as the Company shall designate. 
 SECTION 9.5 Notation on or Exchange of Notes. 
 The Trustee may place an
appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee shall authenticate new Notes that reflect the amendment, supplement or waiver.

 Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver. 
 SECTION 9.6 Trustee to Sign Amendments, Etc. 
 The Trustee shall sign any amended or supplemental indenture authorized pursuant to this Article IX if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee. In signing or refusing to sign any amendment or supplemental indenture the Trustee shall be entitled to receive and (subject to Section 7.1 hereof) shall be
fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amendment or supplemental indenture is authorized or permitted by this Indenture, that all conditions precedent thereto have
been met or waived, that such amendment or supplemental indenture is not inconsistent herewith, and that it will be valid and binding upon the Company and Guarantors, enforceable against them in accordance with its terms, subject to customary
exceptions. 
  

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 ARTICLE X 
 NOTE GUARANTEES 
 SECTION 10.1 Note Guarantees. 
 (a) Subject to this Article X, each Guarantor hereby jointly and severally, fully and unconditionally guarantees the Notes and obligations
of the Company hereunder and thereunder, and guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee on behalf of such Holder, that: (i) the principal of and premium, if any and interest on the Notes
shall be paid in full when due, whether at Stated Maturity, by acceleration, call for redemption or otherwise (including, without limitation, the amount that would become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code), together with interest on the overdue principal, if any, and interest on any overdue interest, to the extent lawful, and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder shall be paid
in full or performed, all in accordance with the terms hereof and thereof; and (ii) in case of any extension of time of payment or renewal of any Notes or of any such other obligations, the same shall be paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise. Each of the Note Guarantees shall be a guarantee of payment and not of collection. 
 (b) Each Guarantor hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. 
 (c) Each Guarantor hereby waives the benefits of diligence, presentment, demand for payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company
or any other Person, protest, notice and all demands whatsoever and covenants that the Note Guarantee of such Guarantor shall not be discharged as to any Note except by complete performance of the obligations contained in such Note and such Note
Guarantee or as provided for in this Indenture. Each of the Guarantors hereby agrees that, in the event of a default in payment of principal or premium, if any or interest on such Note, whether at its Stated Maturity, by acceleration, call for
redemption, purchase or otherwise, legal proceedings may be instituted by the Trustee on behalf of, or by, the Holder of such Note, subject to the terms and conditions set forth in this Indenture, directly against each of the Guarantors to enforce
such Guarantor’s Note Guarantee without first proceeding against the Company or any other Guarantor. Each Guarantor agrees that if, after the occurrence and during the continuance of an Event of Default, the Trustee or any of the Holders are
prevented by applicable law from exercising their respective rights to accelerate the maturity of the Notes, to collect interest on the Notes, or to enforce or exercise any other right or remedy with respect to the Notes, such Guarantor shall pay to
the Trustee for the account of the Holders, upon demand therefor, the amount that would otherwise have been due and payable had such rights and remedies been permitted to be exercised by the Trustee or any of the Holders. 
  

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 (d) If any Holder or the Trustee is required by any court or otherwise to return to the
Company or any Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the Company or any Guarantor, any amount paid by any of them to the Trustee or such Holder, the Note Guarantee of each of the Guarantors,
to the extent theretofore discharged, shall be reinstated in full force and effect. This paragraph (d) shall remain effective notwithstanding any contrary action which may be taken by the Trustee or any Holder in reliance upon such amount
required to be returned. This paragraph (d) shall survive the termination of this Indenture. 
 (e) Each Guarantor further
agrees that, as between each Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Section 6.2 hereof for the purposes
of the Note Guarantee of such Guarantor, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any acceleration of such obligations as
provided in Section 6.2 hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by each Guarantor for the purpose of the Note Guarantee of such Guarantor. 
 SECTION 10.2 Execution and Delivery of Note Guarantee. 
 To evidence its Note Guarantee set forth in Section 10.1, each Guarantor agrees that a notation of such Note Guarantee substantially in the form attached hereto as Exhibit B shall be
endorsed on each Note authenticated and delivered by the Trustee. Such notation of Note Guarantee shall be signed on behalf of such Guarantor by an officer of such Guarantor (or, if an officer is not available, by a board member or director or
another authorized person) on behalf of such Guarantor by manual or facsimile signature. In case the officer, board member or director of such Guarantor who shall have signed such notation of Note Guarantee shall cease to be such officer, board
member or director before the Note on which such Note Guarantee is endorsed shall have been authenticated and delivered by the Trustee, such Note nevertheless may be authenticated and delivered as though the Person who signed such notation of Note
Guarantee had not ceased to be such officer, board member or director. 
 Each Guarantor agrees that its Note Guarantee set
forth in Section 10.1 shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a notation of such Note Guarantee. The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of any Note Guarantee set forth in this Indenture on behalf of the Guarantors. 
 The failure to endorse a Note Guarantee shall not affect or impair the validity thereof. 
  

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 SECTION 10.3 Severability. 
 In case any provision of any Note Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 10.4 Limitation of Guarantors’ Liability.

 Each Guarantor and by its acceptance of Notes, each Holder, confirms that it is the intention of all such parties that the
Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of the Federal Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law relating
to fraudulent transfer or conveyance. To effectuate the foregoing intention, the Trustee, the Holders and Guarantors hereby irrevocably agree that the obligations of such Guarantor under its Note Guarantee shall be limited to the maximum amount that
will not, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of
the obligations of such other Guarantor under its Note Guarantee, result in the obligations of such Guarantor under its Note Guarantee constituting a fraudulent transfer or conveyance. 
 SECTION 10.5 Releases Following Sale of Assets. 
 Any Guarantor shall be
released and relieved of any obligations under this Note Guarantee, (1) in connection with any sale or other disposition by the Company or any Subsidiary of the Company of all or substantially all of the assets of that Guarantor (including by
way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) an Affiliate, if the Company or the Guarantor applies the Net Proceeds of that sale or other disposition in accordance with the
provisions of Section 4.10 hereof; or (2) in connection with any sale of all of the Equity Interests of a Guarantor by the Company or any Subsidiary of the Company to a Person that is not (either before or after giving effect to
such transaction) an Affiliate, if the Company applies the Net Cash Proceeds of that sale in accordance with the provisions of Section 4.10 hereof. Upon delivery to the Trustee of an Officers’ Certificate and an Opinion of Counsel
to the effect that such sale or other disposition was made by the Company in accordance with the provisions of this Indenture, including without limitation Section 4.10 hereof, the Trustee shall execute any documents reasonably required
in order to evidence the release of any Guarantor from its obligations under its Note Guarantee. 
 Except as set forth in
Articles IV and V hereof, nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor, or shall prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor. 
 Any Guarantor not
released from its obligations under this Note Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article X.

  

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 SECTION 10.6 Benefits Acknowledged. 
 Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Indenture
and that its guarantee and waivers pursuant to its Note Guarantee are knowingly made in contemplation of such benefits. 
 SECTION 10.7
Future Guarantors. 
 Each Person that is required to become a Guarantor after the Issue Date pursuant to
Section 4.15 shall promptly execute and deliver to the Trustee a supplemental indenture pursuant to which such Person shall become a Guarantor. Concurrently with the execution and delivery of such supplemental indenture, the Company
shall deliver to the Trustee an Opinion of Counsel and an Officers’ Certificate to the effect that such supplemental indenture has been duly authorized, executed and delivered by such Person and that, subject to the application of bankruptcy,
insolvency, moratorium, fraudulent conveyance or transfer and other similar laws relating to creditors’ rights generally and to the principles of equity, whether considered in a proceeding at law or in equity, the Guarantee of such Guarantor is
a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms and/or to such other matters as the Trustee may reasonably request. 
 ARTICLE XI 
 MISCELLANEOUS 
 SECTION 11.1 Trust Indenture Act Controls. 
 If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties shall control. 
 SECTION 11.2 Notices. 
 Any
notice or communication by the Company, any Guarantor, Parent or the Trustee to the others is duly given if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight
air courier guaranteeing next day delivery, to the others address: 
 If to the Company, any Guarantor or Parent: 
 Toys “R” Us Property Company I , LLC 
 Toys “R” Us, Inc. 
 One Geoffrey Way 
 Wayne, NJ 07470 
 Facsimile: (973) 617-4006 
 Attention: Chief Financial Officer and General Counsel 
  

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 If to the Trustee: 
 The Bank of New York Mellon 
 Corporate Finance Unit 
 101 Barclay Street, Floor 8W 
 New York, New York 10286 
 Facsimile: 212-815-5706 
 Attention: Toys “R” Us Property - Trustee 
 The Company, the Guarantors and the Trustee, by notice to the others, may designate additional or different addresses for subsequent notices
or communications. 
 All notices and communications (other than those sent to Holders and the Trustee) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier promising next Business Day delivery. 
 Any notice or communication to a Holder
shall be sent electronically or mailed by first class mail or by overnight air courier promising next Business Day delivery to its address shown on the register kept by the Registrar. Any notice or communication shall also be so sent to any Person
described in TIA § 313(c), to the extent required by the TIA. Failure to send a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 
 If a notice or communication is mailed or delivered in the manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it, except in the case of notices or communications given to the Trustee, which shall be effective only upon actual receipt. 
 If the Company mails or delivers a notice or communication to Holders, it shall mail or deliver a copy to the Trustee and each Agent at the same time. 
 SECTION 11.3 Communication by Holders of Notes with Other Holders of Notes. 
 Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the
Notes. The Company, the Guarantor, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
 SECTION
11.4 Certificate and Opinion as to Conditions Precedent. 
 Upon any request or application by the Company to the Trustee
to take any action under this Indenture (other than the initial issuance of the Notes), the Company shall furnish to the Trustee upon request: 
 (a) an Officers’ Certificate (which shall include the statements set forth in Section 11.5 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if
any, provided for in this Indenture relating to the proposed action have been satisfied; and 
  

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 (b) an Opinion of Counsel (which shall include the statements set forth in
Section 11.5 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 
 SECTION 11.5 Statements Required in Certificate or Opinion. 
 Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include: 
 (a) a statement that the Person making such certificate or opinion has read such covenant or condition; 
 (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; 
 (c) a statement that, in the opinion of such Person, he or
she has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been satisfied; and 
 (d) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied.

 SECTION 11.6 Rules by Trustee and Agents. 
 The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions. 
 SECTION 11.7 No Personal Liability of Directors, Officers, Employees, Stockholders and the Trustee. 
 No director, officer, employee, stockholder, member, general or limited partner or incorporator, past, present or future, of the Company or
any of its Subsidiaries, or Parent or any of its Subsidiaries, as such or in such capacity, shall have any personal liability for any obligations of the Company under the Notes, any Note Guarantee or this Indenture or of Parent under this Indenture
by reason of his, her or its status as such director, officer, employee, stockholder, member, general or limited partner or incorporator. Each Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and release are
part of the consideration for the issuances of the Notes and the Note Guarantees. 
  

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 No recourse may, to the full extent permitted by applicable law, be taken, directly or
indirectly, with respect to the obligations of the Company or the Guarantors on the Notes or under this Indenture or of Parent under this Indenture or any related documents, any certificate or other writing delivered in connection therewith, against
(i) the Trustee in its individual capacity, or (ii) any partner, owner, beneficiary, agent, officer, director, employee, agent, successor or assign of the Trustee, each in its individual capacity, or (iii) any holder of equity in the
Trustee. 
 Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Notes. 
 SECTION 11.8 Governing Law and Waiver of Jury Trial. 
 THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES, IF ANY. EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE
TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 11.9 No Adverse Interpretation of Other Agreements. 
 This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other
Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
 SECTION 11.10 Successors. 

All agreements of the Company and the Guarantors in this Indenture and the Notes and the Note Guarantees and of Parent in this Indenture,
as applicable, shall bind their respective successors and assigns. All agreements of the Trustee in this Indenture shall bind its successors and assigns. 
 SECTION 11.11 Severability. 
 In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 11.12 Counterpart Originals. 
 The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
  

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 SECTION 11.13 Table of Contents, Headings, Etc. 
 The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 
 SECTION 11.14 Qualification of Indenture. 
 (a) The Company and the Guarantors shall pay all reasonable costs
and expenses (including attorneys’ fees and expenses for the Company, the Guarantors and the Trustee) incurred in connection with the qualification of this Indenture under the TIA in accordance with the terms and conditions of the Registration
Rights Agreement, including, but not limited to, costs and expenses of qualification of this Indenture and the Notes and printing this Indenture and the Notes. The Trustee shall be entitled to receive from the Company and the Guarantors any such
Officers’ Certificates, Opinions of Counsel or other documentation as it may reasonably request in connection with any such qualification of this Indenture under the TIA. The TIA shall not apply to this Indenture prior to such qualification,
and all references herein to compliance with the TIA refer to such compliance following any such qualification. 
 SECTION 11.15 Force
Majeure. 
 In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its
obligations under this Indenture arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services. 
 ARTICLE XII 
 COVENANTS APPLICABLE TO DELAWARE 
 SECTION 12.1 Limitation on Restricted Payments. 
 Parent shall not permit Delaware or any of Delaware’s Restricted Subsidiaries to, directly or indirectly: 
 (a) declare or pay any dividend or make any other distribution on account of Delaware’s or any of its Restricted Subsidiaries’ Equity Interests, including any dividend or distribution payable in
connection with any merger or consolidation (other than (A) dividends or distributions by Delaware payable in Equity Interests (other than Disqualified Stock) of Delaware, (B) dividends or distributions by a Restricted Subsidiary payable
to Delaware or any other Restricted Subsidiary or (C), in the case of any dividend or distribution payable on or in respect of any class or series of securities issued by a Restricted Subsidiary other than a Wholly Owned Subsidiary, pro rata
dividends or distributions

  

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to minority stockholders of such Restricted Subsidiary (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation), provided that Delaware
or one of its Restricted Subsidiaries receives at least its pro rata share of such dividend or distribution in accordance with its Equity Interests in such class or series of securities); 
 (b) purchase, redeem or otherwise acquire or retire for value any Equity Interests of Delaware or any direct or indirect
parent entity of Delaware held by any Person (other than by a Restricted Subsidiary), including in connection with any merger or consolidation; or 
 (c) make any Investment that is not a Delaware Permitted Investment (“Restricted Investments”); 
 (all such payments and other actions set forth in these clauses (a) through (c) being collectively referred to as “Delaware Restricted Payments”), unless, at the time of and
after giving effect to such Delaware Restricted Payment: 
 (1) no Default or Event of Default has occurred and
is continuing or would occur as a consequence of such Delaware Restricted Payment; 
 (2) Delaware would, at the
time of such Delaware Restricted Payment and after giving pro forma effect thereto as if such Delaware Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of
additional Debt pursuant to the first paragraph of Section 12.2; and 
 (3) such Delaware Restricted
Payment, together with the aggregate amount of all other Delaware Restricted Payments made by Delaware and its Restricted Subsidiaries after the Issue Date (including Delaware Restricted Payments permitted pursuant to clause (1) of the next
succeeding paragraph but excluding any other Delaware Restricted Payments permitted by the next succeeding paragraph), is less than the sum, without duplication, of 
 (a) 50% of the Consolidated Net Income of Delaware for the period (taken as one accounting period) from August 2, 2009
to the end of Delaware’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Delaware Restricted Payment (or, in the case such Consolidated Net Income for such period is a deficit, minus
100% of such deficit), plus 
 (b) 100% of the aggregate net cash proceeds, and the fair market value, as
determined in good faith by the Board of Directors of Delaware, of property and marketable securities, received by Delaware after the Issue Date from the issue or sale of (x) Equity Interests of Delaware (including Retired Capital Stock (as
defined below) but excluding (i) cash proceeds received from the sale of Equity Interests of Delaware and, to the extent actually contributed to Delaware, Equity Interests of Delaware’s direct or indirect parent corporations to

  

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members of management, directors or consultants of Delaware, any direct or indirect parent corporation of Delaware and the Subsidiaries of Delaware after the Issue Date to the extent such amounts
have been applied to Delaware Restricted Payments made in accordance with clause (3) of the next succeeding paragraph, (ii) cash proceeds received from the sale of Refunding Capital Stock (as defined below) to the extent such amounts have
been applied to Delaware Restricted Payments made in accordance with clause (2) of the next succeeding paragraph, and (iii) Disqualified Stock or (y) debt securities of Delaware that have been converted into such Equity Interests of
Delaware (other than Refunding Capital Stock or Equity Interests or convertible debt securities of Delaware sold to a Restricted Subsidiary or Delaware, as the case may be, and other than Disqualified Stock or debt securities that have been
converted into Disqualified Stock), plus 
 (c) without duplication of any amounts included in clause
(3) of the paragraph below and to the extent not already included in Consolidated Net Income, upon (A) the sale or other disposition (other than to Delaware or a Restricted Subsidiary) of Restricted Investments made by Delaware or its
Restricted Subsidiaries after the Issue Date and repurchases and redemptions of such Restricted Investments from Delaware or its Restricted Subsidiaries and repayments of loans or advances which constitute Restricted Investments of Delaware or its
Restricted Subsidiaries or (B) the sale (other than to Delaware or a Restricted Subsidiary) of the Capital Stock of an Unrestricted Subsidiary (other than to the extent such Investment constituted a Permitted Investment) or a dividend from an
Unrestricted Subsidiary, the lesser of (i) the amount of cash received or the fair market value, as determined in good faith of the Board of Directors of Delaware in the case of property and marketable securities, received after the Issue Date
from such sale or disposition and (ii) the initial amount of such Restricted Investment or fair market value of such Unrestricted Subsidiary at the time of the original designation thereof, plus 
 (d) in the case of the redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary or the merger or consolidation
of an Unrestricted Subsidiary into Delaware or a Restricted Subsidiary or the transfer of assets of an Unrestricted Subsidiary to Delaware or a Restricted Subsidiary, the lesser of (i) the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Board of Directors of Delaware in good faith at the time of the redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary or at the time of such merger, consolidation or transfer of assets
and (ii) the fair market value of such Unrestricted Subsidiary at the time of the original designation thereof (other to the extent such Investment constituted a Permitted Investment), plus 
 (e) 100% of the aggregate amount of cash and the fair market value, as determined in good faith by the Board of Directors of
Delaware, of property and marketable securities contributed to the capital of Delaware after the Issue Date (other than (i) by a Restricted Subsidiary, (ii) made in respect of any Disqualified Stock, (iii) made in respect of any
Refunding Capital Stock and (iv) cash proceeds applied to Restricted Payments made in accordance with clause (3) of the next succeeding paragraph). 
  

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 The preceding provisions will not prohibit: 
 (1) the payment of any dividend or other distribution within 60 days after the date of declaration thereof, if at the date of
declaration such payment would have complied with the provisions of the Indenture; 
 (2) the redemption,
repurchase, retirement or other acquisition of any Equity Interests of Delaware or any direct or indirect parent corporation of Delaware (“Retired Capital Stock”) in exchange for or out of the net cash proceeds of the substantially
concurrent sale (other than to a Restricted Subsidiary or Delaware) of Equity Interests of Delaware or contributions to the equity capital of Delaware (in each case, other than Disqualified Stock) (“Refunding Capital Stock”);

 (3) a Delaware Restricted Payment to pay for the repurchase, retirement or other acquisition or retirement for
value of Equity Interests of Delaware or any of its direct or indirect parent corporations held by any present or former employee, director or consultant of Delaware, any Subsidiary or any of its direct or indirect parent corporations (or their
permitted transferees, assigns, estates or heirs) upon death, disability or termination of employment, provided, however, that the aggregate amount of Delaware Restricted Payments made under this clause (3) does not exceed in any
calendar year $15.0 million (with unused amounts in any calendar year carried forward and available under this clause (3) in the next calendar year; and provided, further, that such amount in any calendar year may be
increased by an amount not to exceed (A) the cash proceeds from the sale of Equity Interests (other than Disqualified Stock) of Delaware and, to the extent contributed to Delaware, Equity Interests of any of its direct or indirect parent
corporations, in each case to members of management, directors or consultants of Delaware, any of its Subsidiaries or any of its direct or indirect parent corporations and any of their Subsidiaries that occurs after the Issue Date plus (B) the
cash proceeds of “key man” life insurance policies received by Delaware or its Restricted Subsidiaries after the Issue Date; 
 (4) the declaration and payment of dividends to holders of any class or series of Disqualified Stock of Delaware or any Restricted Subsidiary issued or incurred in accordance with Section 12.2
to the extent such dividends are included in the definition of Fixed Charges for such entity; 
 (5) repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such options or warrants; 
 (6) other Delaware Restricted Payments in an aggregate amount not to exceed $100.0 million; 
  

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 (7) the declaration and payment of dividends to, or the making of loans to,
a direct or indirect parent Person of Delaware in amounts required for such Person to pay, without duplication: 
 (A) franchise taxes and other fees, taxes and expenses required to maintain the corporate existence of such Person; 
 (B) income taxes of such Person; 
 (C) customary salary, bonus,
severance, indemnification obligations and other benefits payable to officers and employees of such Person; 
 (D) general corporate overhead and operating expenses of such Person; 
 (E) reasonable fees and
expenses incurred in connection with any unsuccessful debt or equity offering or other financing transaction by such Person; 
 (F) obligations under the Management Agreement (as in effect on the Issue Date); 
 (G) audit costs, professional fees and expenses and other costs incurred in connection with reporting obligations under or otherwise incurred in connection with compliance with applicable law (including
applicable rules or regulations of any governmental, regulatory or self-regulatory body or stock exchange); 
 (H) obligations under or in respect of director and officer insurance policies or indemnification obligations to directors or officers and directors’ fees and expenses, and 
 (I) trade payables and other operating expenses incurred in the ordinary course of business and attributable to the
operations of Delaware and its Restricted Subsidiaries and which are reasonably expected to be, and appropriately should be payable by, Delaware and its Restricted Subsidiaries. 
 (8) cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other
securities convertible into or exchangeable for Capital Stock of Delaware; provided that any such cash payment shall not be for the purpose of evading the limitation of the covenant described under this subheading (as determined in good faith
by the Board of Directors of Delaware); 
 (9) the payment of dividends and other distributions to Parent
necessary to pay interest expense in respect of Existing Parent Debt when due or any Debt incurred by Parent to refinance the Existing Parent Debt or any refinancing thereof (so long as such Debt does not have a Stated Maturity earlier than the
Existing Parent Debt that is refinanced); 
  

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 (10) the payment of dividends and other distributions, or making of loans,
to Parent to fund the redemption or other repayment of Existing Parent Debt or Debt of Subsidiaries of Parent existing on the Issue Date or Debt that refinances any such existing Parent or Subsidiary Debt, so long as Delaware’s Total Leverage
Ratio is less than 4.0x; or 
 (11) the distribution, by dividend or otherwise, of shares of Capital Stock of, or
Indebtedness owed to Delaware or a Restricted Subsidiary by, Unrestricted Subsidiaries (other than Unrestricted Subsidiaries, the primary assets of which are cash and/or Cash Equivalents); 
 provided that at the time of, and after giving effect to, any Delaware Restricted Payment permitted under clauses 6 and 10 of this
Section 12.1, no Event of Default under clause (9) of Section 6.1 shall have occurred and be continuing or would occur as a consequence thereof. 
 The amount of all Delaware Restricted Payments (other than cash) will be the fair market value on the date of the Delaware Restricted
Payment of the asset(s) or securities proposed to be transferred or issued by Delaware or such Subsidiary, as the case may be, pursuant to the Delaware Restricted Payment. The fair market value of any assets or securities that are required to be
valued by this covenant will be determined in good faith by the Board of Directors of Delaware. Such determination must be based upon an opinion or appraisal issued by an independent accounting, appraisal or investment banking firm of national
standing if the fair market value exceeds $40.0 million. 
 As of the Issue Date, all of Delaware’s Subsidiaries will be
Restricted Subsidiaries. Delaware will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary except pursuant to the second to last sentence of the definition of Unrestricted Subsidiary. For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding investments by Delaware and the Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so designated will be deemed to be Delaware Restricted Payments in an amount determined
as set forth in the preceding paragraph. Such designation will be permitted only if a Delaware Restricted Payment in such amount would be permitted at such time under this covenant or the definition of Delaware Permitted Investments and if such
Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. 
 For the avoidance of doubt, any dividend or
distribution otherwise permitted pursuant to this Section 12.1 may be in the form of a loan. 
 If Delaware or a
Restricted Subsidiary makes a Restricted Payment which, at the time of the making of such Restricted Payment, in the good faith determination of Parent, would be permitted under this Section 12.1, such Restricted Payment shall be deemed to have
been made in compliance with this Section 12.1 notwithstanding any subsequent adjustment made in good faith to Delaware’s financial statements. 
  

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 SECTION 12.2 Incurrence of Debt and Issuance of Preferred Stock. 
 Parent shall not cause or permit Delaware or any of Delaware’s Restricted Subsidiaries to, directly or indirectly, Incur any Debt
(including Acquired Debt) and will not permit any of Delaware’s Restricted Subsidiaries to issue any shares of Preferred Stock; provided that Delaware and any Restricted Subsidiary may Incur Debt (including Acquired Debt) and issue
Preferred Stock if the Fixed Charge Coverage Ratio of Delaware and its Restricted Subsidiaries (on a consolidated combined basis) for Delaware’s most recently ended four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Debt is incurred or such Preferred Stock is issued would have been at least 2.0 to 1 determined on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Debt had been incurred or the Preferred Stock had been issued, as the case may be, and the application of proceeds therefrom had occurred at the beginning of such four-quarter period. 
 The first paragraph of this Section 12.2 will not prohibit the incurrence of any of the following (collectively,
“Permitted Debt”): 
 (1) the incurrence by Delaware or a Restricted Subsidiary of Debt under
Credit Facilities together with the incurrence by Delaware or any Restricted Subsidiary of the guarantees thereunder and the issuance and creation of letters of credit and bankers’ acceptances thereunder (with letters of credit and
bankers’ acceptances being deemed to have a principal amount equal to the face amount thereof), up to an aggregate principal amount, equal to $2,500 million outstanding at any one time, less the amount of all mandatory principal payments (with
respect to revolving borrowings and letters of credit, only to the extent revolving commitments are correspondingly reduced) actually made by the borrower thereunder in respect of Debt thereunder with net proceeds from asset sales; 
 (2) Existing Debt (other than Debt under the Credit Agreement as described in clause (1)); 
 (3) Debt (including Capitalized Lease Obligations) or Preferred Stock incurred by Delaware or any Restricted Subsidiary to
finance the purchase, lease or improvement of property (real or personal) or equipment that is used or useful in a Permitted Business (whether through the direct purchase of assets or the Capital Stock of any Person owning such assets) in an
aggregate principal amount that, when aggregated with the principal amount of all other Debt, then outstanding and incurred pursuant to this clause (3) does not exceed $250.0 million; 
 (4) Debt incurred by Delaware or any Restricted Subsidiary constituting reimbursement obligations with respect to letters of
credit issued in the ordinary course of business, including without limitation letters of credit in respect of workers’ compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or
self-insurance or other Debt with respect to reimbursement-type obligations regarding workers’ compensation claims; provided that upon the drawing of such letters of credit or the incurrence of such Debt, such obligations are reimbursed
within 30 days following such drawing or incurrence; 
  

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 (5) Debt arising from agreements of Delaware or a Restricted Subsidiary
providing for indemnification, adjustment of purchase price, earn-outs or similar obligations, in each case, incurred or assumed in connection with the disposition or acquisition of any business, assets or a Subsidiary, other than guarantees of Debt
incurred by any Person acquiring all or any portion of such business, assets or a Subsidiary for the purpose of financing such acquisition; provided that in the case of a disposition, the maximum assumable liability in respect of all such
Debt shall at no time exceed the gross proceeds including noncash proceeds (the fair market value of such noncash proceeds being measured at the time received and without giving effect to any subsequent changes in value) actually received by
Delaware and any Restricted Subsidiaries in connection with a disposition; 
 (6) Debt of Delaware owed to and
held by any Restricted Subsidiary or Debt of a Restricted Subsidiary owed to and held by Delaware or any other Restricted Subsidiary; provided that any subsequent issuance or transfer of any Capital Stock or any other event that results in
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of any such Debt (except to Delaware or a Restricted Subsidiary) shall be deemed, in each case, to constitute the incurrence of such Debt by the issuer
thereof; 
 (7) shares of Preferred Stock of a Restricted Subsidiary issued to Delaware or a Restricted
Subsidiary; provided that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such shares of
Preferred Stock (except to Delaware or a Restricted Subsidiary) shall be deemed in each case to be an issuance of such shares of Preferred Stock; 
 (8) Hedging Obligations of Delaware or any Restricted Subsidiary (excluding Hedging Obligations entered into for speculative purposes) for the purpose of limiting, hedging or managing (A) interest
rates with respect to any Debt that is permitted by the terms of the Indenture to be outstanding, (B) currency exchange rates or (C) commodity prices or otherwise entered into in the ordinary course of business; 
 (9) obligations in respect of performance and surety bonds, appeal bonds and other similar types of bonds and performance and
completion guarantees provided by Delaware or any Restricted Subsidiary or obligations in respect of letters of credit related thereto, in each case in the ordinary course of business or consistent with past practice; 
 (10) Debt of Delaware or any Restricted Subsidiary or Preferred Stock of any Restricted Subsidiary not otherwise permitted
hereunder in an aggregate principal amount or liquidation preference which, when aggregated with the principal amount and liquidation preference of all other Debt and Preferred Stock then outstanding and incurred pursuant to this clause (10), does
not at any one time outstanding exceed $100.0 million; 
  

 -97- 

 (11) any guarantee by Delaware or a Restricted Subsidiary of Debt or other
obligations of Delaware or any Restricted Subsidiary so long as the incurrence of such Debt or other obligations incurred by such Restricted Subsidiary is permitted under the terms of the Indenture; 
 (12) the incurrence by Delaware or any Restricted Subsidiary of Debt or Preferred Stock that serves to refund or refinance
any Debt incurred as permitted under the first paragraph of this covenant and clause (2) above and this clause (12) or any Debt issued to so refund or refinance such Debt including additional Debt incurred to pay accrued interest, premiums
and fees and expenses in connection therewith (the “Refinancing Debt”) prior to its respective maturity; provided that such Refinancing Debt (A) has a weighted average life to maturity at the time such Refinancing Debt
is incurred which is not less than the weighted average life to maturity of the Debt being refunded or refinanced, (B) shall not include Debt or Preferred Stock of Delaware or a Restricted Subsidiary that refinances Debt or Preferred Stock of
an Unrestricted Subsidiary, and (C) shall not be in a principal amount in excess of the principal amount of, premium, if any, accrued interest on, and related fees and expenses of, the Debt being refunded or refinanced; 
 (13) Debt arising from the honoring by a bank or financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business; 
 (14) Debt consisting of promissory notes issued by
Delaware or any Restricted Subsidiary to current or former officers, directors and employees, their respective estates, spouses or former spouses to finance the purchase or redemption of Equity Interests of Delaware or any of its direct or indirect
parent corporations permitted by Section 12.1; 
 (15) Debt of Delaware or any Restricted Subsidiary
consisting of the financing of insurance premiums in the ordinary course of business or take or pay obligations contained in supply agreements incurred in the ordinary course of business; 
 (16) Debt of Delaware or any of its Restricted Subsidiaries supported by a letter of credit issued pursuant to any Credit
Facility, in a principal amount not in excess of the stated amount of such letter of credit; 
 (17) Debt
consisting of deferred purchase price or notes issued to officers, directors and employees of Restricted Subsidiaries to purchase or redeem equity interests (or option or warrants or similar instruments) of Delaware or a Restricted Subsidiary;

 (18) Debt issued as consideration for the repurchase or redemption of Capital Stock (other than Disqualified
Stock) of Parent in transactions to repurchase or redeem Capital Stock (other than Disqualified Stock) of Parent (or its direct parent company) held by officers, directors or employees or former officers, directors or employees (or their
transferees, estates or beneficiaries under their estates) of Parent or any Subsidiary thereof, upon their death, disability, retirement, severance or termination of employment or service; and 
  

 -98- 

 (19) guarantees constituting Investments permitted under the terms of the
Indenture. 
 For purposes of determining compliance with this Section 12.2, in the event that an item of proposed
Debt or Preferred Stock meets the criteria of more than one of the categories of Permitted Debt described in clauses (1) through (19) above, or is entitled to be incurred pursuant to the first paragraph of this Section 12.2,
Delaware will be permitted to classify and later reclassify such item of Debt or Preferred Stock in any manner that complies with this Section 12.2, and such item of Debt or Preferred Stock will be treated as having been incurred
pursuant to only one of such categories. Accrual of interest, the accretion of accreted value and the payment of interest in the form of additional Debt or Preferred Stock will not be deemed to be an incurrence of Debt or Preferred Stock for
purposes of this Section 12.2. 
 For purposes of determining compliance with any U.S. dollar restriction on the
incurrence of Debt where the Debt incurred is denominated in a different currency, the amount of such Debt will be the U.S. dollar equivalent determined on the date of the incurrence of such Debt; provided that if any such Debt denominated in
a different currency is subject to a currency agreement with respect to U.S. dollars covering all principal, premium, if any, and interest payable on such Debt, the amount of such Debt expressed in U.S. dollars will be as provided in such currency
agreement. The principal amount of any refinancing Debt incurred in the same currency as the Debt being refinanced will be the U.S. Dollar Equivalent of the Debt being refinanced, except to the extent that (1) such U.S. Dollar
Equivalent was determined based on a currency agreement, in which case the refinancing Debt will be determined in accordance with the preceding sentence, and (2) the principal amount of the refinancing Debt exceeds the principal amount of the
Debt being refinanced, in which case the U.S. Dollar Equivalent of such excess will be determined on the date such refinancing Debt is incurred. The maximum amount of Debt that Delaware and its Restricted Subsidiaries may incur pursuant to
Section 12.2 shall not be deemed to be exceeded, with respect to any outstanding Debt, solely as a result of fluctuations in the exchange rate of currencies. 
 SECTION 12.3 Provision of Financial Information. 
 Whether or not required
by the Commission so long as any Notes are outstanding, Parent shall furnish to the Holders of Notes, and make available on a public website, or file with the Commission through the Commission’s IDEA System (f/k/a/ EDGAR) (or any successor
system), within the time periods specified in the Commission’s rules and regulations for non-accelerated filers, all quarterly and annual financial statements of Delaware that would be required to be contained in a filing with the Commission on
Forms10-Q and 10-K if Delaware were required to file such Forms, and with respect to the annual financial statements only, a report on the annual financial statements, a report on the annual financial statements by Delaware’s certified
independent accountants. 
  

 -99- 

 In the event that any direct or indirect parent company of Delaware becomes a guarantor of
the Master Lease, Parent may satisfy its obligations under this Section 12.3 by furnishing financial statements with respect to such parent; provided that the same is accompanied by consolidating information that explains in
reasonable detail the differences between the information relating to such parent, on the one hand, and the information relating to Delaware and its Restricted Subsidiaries on a standalone basis, on the other hand. 
 Notwithstanding the foregoing, such requirements shall be deemed satisfied prior to the commencement of the Exchange Offer or the
effectiveness of the Shelf Registration Statement by the filing with the SEC of the exchange offer registration statement or shelf registration statement, and any amendments thereto, in accordance with the requirements of Form S-11, S-4 or S-3, as
applicable, with such financial statements that satisfy Regulation S-X of the Securities Act. 
 Parent will also hold a
quarterly conference call to discuss the financial results of Delaware and the Company with holders of the Notes, beginning with a discussion of the quarter ending October 31, 2009. Such conference call may be part of or separate from any
conference call relating to the financial results of Parent or any of its Subsidiaries (including for the avoidance of doubt, the conference call of the Company contemplated by Section 4.3). The conference call will not be later than
five business days from the date on which the financial information of Delaware is filed or otherwise made available to holders of the Notes in accordance with this Indenture. No fewer than two days prior to the conference call, Parent shall issue a
press release to the appropriate wire services announcing the time, date and access details of such conference call. 
 SECTION 12.4
Suspension of Covenants Applicable to Delaware. 
 Beginning on the date that: 
 (1) one or both of Parent or Delaware has Investment Grade Ratings from both Rating Agencies; and 
 (2) no Default or Event of Default shall have occurred and be continuing, 
 and ending on the date (the “Reversion Date”) that neither Parent nor Delaware possesses Investment Grade Ratings from both Rating Agencies
(such period of time, the “Suspension Period”), Sections 12.1 and 12.2 shall not apply. During a Suspension Period, Parent’s Board of Directors may not designate any of Delaware’s Subsidiaries as Unrestricted
Subsidiaries. 
 On the Reversion Date, all Debt incurred by Delaware and its Restricted Subsidiaries during the Suspension
Period will be classified to have been incurred pursuant to and permitted under the Consolidated Fixed Charge Coverage Ratio or one of the clauses set forth in the definition of Permitted Debt (to the extent such Debt would be permitted to be
incurred thereunder as of the Reversion Date and after giving effect to Debt incurred prior to the Suspension Period and outstanding on the Reversion Date). To the extent any Debt would not be permitted to be incurred pursuant to the Consolidated
Fixed Charge Coverage Ratio or any of the clauses set forth in the definition of Permitted Debt, such Debt will be deemed to have been outstanding on the Issue Date, so that it is classified as Permitted Debt under clause (2) of the definition
of Permitted Debt and permitted to be refinanced under clause (12) of the definition of Permitted Debt. 
  

 -100- 

 Notwithstanding the fact that covenants suspended during a Suspension Period may be
reinstated, no Default or Event of Default will be deemed to have occurred as a result of a failure to comply with the covenants during the Suspension Period or at the time the covenants are reinstated. 
 SECTION 12.5 Corporate Existence. 
 Parent shall cause Delaware to do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the corporate in accordance with its organizational documents (as the same may be amended
from time to time) and the rights (charter and statutory), licenses and franchises of Delaware; provided that Delaware shall not be required to preserve any such right, license or franchise, or the corporate existence, if the Board of
Directors of Delaware shall determine that the preservation thereof is no longer desirable in the conduct of the business of Delaware, and that the loss thereof is not adverse in any material respect to the Holders. 
 SECTION 12.6 Books and Records. 
 Parent shall cause Delaware to keep proper books of record and account, in which full and correct entries shall be made of all financial transactions of Delaware, in accordance with GAAP. 
 [Signatures on following page] 
  

 -101- 

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

			
	TOYS “R” US PROPERTY COMPANY I, LLC (formerly known as TRU 2005 RE Holding Co. I, LLC).
		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer

  

			
	 TOYS “R” US, INC. (with respect to Article XII
 and provisions related thereto only)

		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer

  

 S-1 

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

			
	MAP Real Estate, LLC
		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer
	
	Wayne Real Estate Company, LLC
		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer
	
	TRU 2005 RE I, LLC
		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer
	
	TRU 2005 RE II Trust
		
	By:	 	Toys “R” Us Property Company I, LLC, as Managing Trustee
		
	By:	 	/S/    F. CLAY CREASEY, JR.
		 	Name: F. Clay Creasey, Jr.
		 	Title: Executive Vice President—Chief Financial Officer

  

 S-2 

			
	THE BANK OF NEW YORK MELLON, as Trustee
		
	By:	 	/S/    CHRISTOPHER GREENE
		 	Name: Christopher Greene
		 	Title: Vice President

  

 S-3 

 EXHIBIT A 
 FORM OF % SENIOR NOTE 
 (Face of Note) 
 % Senior Notes due 2017 
 [Global Notes Legend] 
 [Insert the Global Note Legend, if applicable, pursuant to the provisions of the Indenture] 
 [Restricted Notes Legend] 
 [Insert
the Restricted Notes Legend, if applicable, pursuant to the provisions of the Indenture] 
 [Regulation S Temporary Global Note
Legend] 
 [Insert the Regulation S Temporary Global Note Legend from Section 2.6(e)(iv), if applicable, pursuant to the provisions of the
Indenture] 
 [Original Issue Discount Legend] 
 [Insert the Original Issue Discount Legend, if applicable, pursuant to the provisions of the Indenture] 
  

 A-1 

 TOYS “R” US PROPERTY COMPANY I, LLC. 
 10.75% SENIOR NOTES DUE 2017 
  

			
	 No.             
	  	 144A CUSIP:
 144A
ISIN:
  
 REG S CUSIP:
 REG S ISIN:

 TOYS “R” US PROPERTY COMPANY I, LLC (formerly known as
TRU 2005 RE Holding Co. I, LLC) promises to pay to             , or registered assigns, the principal sum of Dollars
($             ), [as the same may be revised from time to time on the Schedule of Exchanges of Interests in the Global Note,]1 on July 15, 2017. 
 Interest Payment Dates: January 15 and July 15, beginning January 15, 2010. 
 Record Dates: January 1 and July 1 
 Reference is made to further
provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefits under the Indenture
referred to on the reverse hereof or be valid or obligatory for any purpose. 
  
  

	1	 To be included in Global Notes only. 

  

 A-2 

 In WITNESS HEREOF, the Company has caused this instrument to be duly executed. 
 Dated: July 9, 2009 
  

			
	TOYS “R” US PROPERTY COMPANY, I LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

 A-3 

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
 This is one of the Notes
 referred to in the within-mentioned Indenture:
 Dated: July 9, 2009
  
 THE BANK OF NEW YORK MELLON,
     as Trustee

		
	By:	 	 
		 	Authorized Signatory

  

 A-4 

 (Reverse of Note) 
 10.75% Senior Notes due 2017 
 TOYS “R” US PROPERTY
COMPANY I, LLC 
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated. 
 (1) Interest. 
 (a) Toys “R” Us Property Company I, LLC (formerly known as TRU 2005 RE Holding Co. I, LLC), a Delaware Limited Liability Company,
or its successor (together, the “Company “), promises to pay interest on the principal amount of this Note (the “Notes”) at a fixed rate. The Company will pay interest in United States dollars (except as otherwise
provided herein) semiannually in arrears on January 15 and July 15 of each year, commencing on January 15, 2010 or, if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment
Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including July 9, 2009; provided that if there is no existing Default or Event of
Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date (but after July 9, 2009), interest shall accrue from such next succeeding
Interest Payment Date, except in the case of the original issuance of the Notes, in which case interest shall accrue from the date of authentication. The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. The interest rate on the Notes will in no
event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application. 
 (2) Method of Payment. The Company will pay interest on the Notes (except defaulted interest) on the applicable Interest Payment Date to the Persons who are registered Holders of the Notes at the
close of business on the January 1 and July 1 preceding the Interest Payment Date, even if such Notes are cancelled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the
Indenture with respect to defaulted interest. The Notes shall be payable as to principal, premium and interest at the office or agency of the Company maintained for such purpose within or without the City and State of New York, or, at the option of
the Company, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds shall be required with respect to
principal of, premium, if any, and interest on, all Global Notes and all other Notes in an aggregate principal amount in excess of $5,000,000 the Holders of which shall have provided written wire transfer instructions to the Company and the Paying
Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  

 A-5 

 Any payments of principal of and interest on this Note prior to Stated Maturity shall be
binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. The amount due and payable at the maturity of this Note shall be
payable only upon presentation and surrender of this Note at an office of the Trustee or the Trustee’s agent appointed for such purposes. 
 (3) Paying Agent and Registrar. Initially, The Bank of New York Mellon, the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 
 (4)
Indenture. The Company issued the Notes under an Indenture, dated as of July 9, 2009 (the “Indenture”), among the Company, the Guarantors, Parent and the Trustee. The terms of the Notes include those stated in the
Indenture and those made a part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”). To the extent the provisions of this Note are inconsistent with
the provisions of the Indenture, the Indenture shall govern. The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. The Notes issued on the Issue Date are senior unsecured
Obligations of the Company limited to $950,000,000 in aggregate principal amount. 
 The payment of principal and interest on
the Notes is unconditionally guaranteed on a senior basis by the Guarantors. 
 (5) Optional Redemption. 
 (i) The Notes are subject to redemption, at the option of the Company, in whole or in part, at any time on or after July 15, 2013 upon
not less than 30 nor more than 60 days’ notice at the following Redemption Prices (expressed as percentages of the principal amount to be redeemed) set forth below, plus accrued and unpaid interest, if any, to, but not including, the
redemption date (subject to the right of Holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the redemption date), if redeemed during the 12-month period beginning on
July 15 of the years indicated below: 
  

				
	 2013
	  	105.375	% 
	 2014
	  	102.688	% 
	 2015 and thereafter
	  	100.000	% 

 (ii) In addition, at any time prior to July 15, 2013, the Company may redeem the
Notes, in whole or in part, at a Redemption Price equal to the principal amount of the Notes plus the Applicable Premium plus accrued and unpaid interest, if any, to but not including the date of redemption (subject to the right of Holders of record
on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the redemption date). 
  

 A-6 

 (iii) In addition to the optional redemption of the Notes in accordance with the provisions
of the preceding paragraphs, prior to July 15, 2012, the Company may, with the net proceeds of one or more Qualified Equity Offerings, redeem up to 35% of the aggregate principal amount of the outstanding Notes at a Redemption Price equal to
110.75% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but not including, the date of redemption (subject to the right of Holders of record on the relevant regular record date to receive interest due on an
interest payment date that is on or prior to the redemption date); provided that at least 65% of the principal amount of Notes remains outstanding immediately after the occurrence of any such redemption (excluding Notes held by the Company or
its Subsidiaries) and that any such redemption occurs within 90 days following the closing of any such Qualified Equity Offering. 
 (6) Mandatory Redemption. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes. 
 (7) Repurchase at Option of Holder. 
 (a) Upon the occurrence of a Change
of Control, the Company will make an Offer to Purchase for all of the outstanding Notes at a purchase price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest thereon to but not including the date of
purchase. Within 60 days following any Change of Control, the Company will mail or deliver a notice to each Holder describing the transaction or transactions that constitute the Change of Control setting forth the procedures governing the Change of
Control Offer required by the Indenture. 
 (b) Upon the occurrence of certain Asset Sales, the Company may be required to offer
to purchase the Notes. 
 (c) Holders of the Notes that are the subject of an Offer to Purchase will receive notice of an Offer
to Purchase pursuant to an Asset Sale or a Change of Control from the Company prior to any related Purchase Date and may elect to have such Notes purchased by completing the form titled “Option of Holder to Elect Purchase” appearing below.

 (8) Notice of Redemption. Notice of redemption shall be delivered at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $2,000 may be redeemed in part but only in a minimum amount of $2,000 principal amount (and integral multiples of $1,000
in excess thereof), unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date, interest ceases to accrue on the Notes or portions hereof called for redemption. If less than all of the Notes are to be redeemed, the
Trustee will select the Notes or portions thereof to be redeemed by lot, pro rata or by any other method the Trustee shall deem fair and appropriate (subject to the Depository Trust Company, Euroclear and/or Clearstream procedures as applicable).

 (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in initial denominations of
$2,000 and any integral multiple of $1,000 in excess thereof.

  

 A-7 

 
The transfer of the Notes may be registered and the Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period
between a record date and the corresponding Interest Payment Date. 
 (10) Persons Deemed Owners. The registered holder
of a Note may be treated as its owner for all purposes. 
 (11) Amendment, Supplement and Waiver. Subject to certain
exceptions, the Indenture and the Notes may be amended or supplemented with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any existing Default or compliance with any
provision may be waived with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Notes
to, among other things, cure any ambiguity, defect, omission or mistake or inconsistency in the Indenture, provide for uncertificated Notes in addition to certificated Notes or to comply with any requirements of the Commission in connection with the
qualification of the Indenture under the TIA. 
 (12) Defaults and Remedies. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 30% in principal amount of the then outstanding Notes generally may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising
from certain events of bankruptcy or insolvency with respect to the Company as set forth in the Indenture, all outstanding Notes will become due and payable without further action or notice. Holders of the Notes may not enforce the Indenture or the
Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of
the Notes notice of any continuing Default (except a Default relating to the payment of principal or interest) if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default and its consequences under the Indenture except a continuing Default in the payment of interest on, or the principal of, or the premium
on, the Notes. 
 (13) Trustee Dealings with the Company. The Trustee, in its individual or any other capacity, may make
loans to, accept deposits from, and perform services for the Company, the Guarantors or their respective Affiliates, and may otherwise deal with the Company, the Guarantors or their respective Affiliates, as if it were not the Trustee. 

(14) No Recourse Against Others. No director, officer, employee, stockholder, member, general or limited partner or incorporator,
past, present or future, of the Company, the Guarantors or any of their respective Subsidiaries, or Parent or its Subsidiaries, as such or in such

  

 A-8 

 
capacity, shall have any personal liability for any obligations of the Company under the Notes, any Guarantee or the Indenture or Parent under the Indenture by reason of his, her or its status as
such director, officer, employee, stockholder, member, general or limited partner or incorporator. Each Holder of the Notes by accepting the Note waives and releases all such liability. The waiver and release are part of the consideration for the
issuances of the Notes. 
 No recourse may, to the full extent permitted by applicable law, be taken, directly or indirectly,
with respect to the obligations of the Company or the Guarantors on the Notes or under the Indenture or Parent under the Indenture or any related documents, any certificate or other writing delivered in connection therewith, against (i) the
Trustee in its individual capacity, or (ii) any partner, owner, beneficiary, agent, officer, director, employee, agent, successor or assign of the Trustee, each in its individual capacity, or (iii) any holder of equity in the Trustee.

 Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes. 
 (15) Authentication. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent. 
 (16) Abbreviations. Customary abbreviations may be
used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform
Gifts to Minors Act). 
 (17) CUSIP, ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP, ISIN or other similar numbers in notices of redemption as a convenience to the Holders. No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
 (18) THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES, IF ANY. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE
TRANSACTIONS CONTEMPLATED HEREBY 
 [(19) Additional Rights of Holders of Restricted Notes. Pursuant to, but subject to
the exceptions in, the Registration Rights Agreement, the Company will be obligated to consummate an Exchange Offer pursuant to which the Holder of this Note shall have the right to exchange this Note for a 10.75% Senior Note due 2017 of the Company
which shall have been registered under the Securities Act, in like principal amount and having terms identical in all material respects to this Note (except that such note shall not be entitled to Additional Interest). The Holders shall be entitled
to receive certain Additional Interest in the event the such exchange offer is not consummated or the Notes are

  

 A-9 

 
not offered for resale and upon certain other conditions, all pursuant to and in accordance with the terms of the Registration Rights Agreement.]2 
 The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 
 Toys “R” Us Property Company I , LLC 
 Toys “R” Us, Inc. 
 One Geoffrey Way Wayne, NJ 07470 
 Facsimile:     (973) 617-4006 
 Attention:      Chief Financial Officer and General Counsel 
  
  

	2	 To be included in Restricted Notes only. 

  

 A-10 

 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 
 ___________________________ 
 (Insert
assignee’s soc. sec. or tax I.D. no.) 
 ___________________________ 
 ___________________________ 
 ___________________________ 
 (Print or type assignee’s name, address and zip code) 
 and irrevocably appoint
                                         
                                    to transfer this Note on the books
of the Company. The agent may substitute another to act for him. 
 Date:
                     
  

			
	Your Signature:	 	 
	(Sign exactly as your name appears on the face of this Note)

  

			
	Signature guarantee:	 	 

 (Signature must be guaranteed by a participant in a recognized signature guarantee
medallion program) 
  

 A-11 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Note purchased by Toys “R” Us Property Company I , LLC pursuant to Section 4.10 (Asset
Sale) or 4.13 (Change of Control) of the Indenture, check the box below: 
  ̈    Section 4.10          ̈    Section 4.13 
 If you want to elect to have only part of the Note purchased by Toys “R” Us Property Company I , LLC pursuant to Section 4.10
or 4.13 of the Indenture, state the amount you elect to have purchased: 
 $                             
  

									
	Date:                     	 		 	Your Signature:	 	 
		 		 		 	(Sign exactly as your name appears on the Note)
				
		 		 		 	 Tax Identification Number:
                        

  

			
	Signature guarantee:	 	 

 (Signature must be guaranteed by a participant in a recognized signature guarantee
medallion program) 
  

 A-12 

 CERTIFICATE TO BE DELIVERED UPON 
 EXCHANGE OR REGISTRATION 
 OF RESTRICTED NOTES 
 Toys “R” Us Property Company I, LLC 
 One
Geoffrey Way 
 Wayne, NJ 07470 
 Attention:     Chief Financial Officer and General Counsel 
 The Bank of New York Mellon 
 Corporate Finance Unit 
 101 Barclay Street, Floor
8W 
 New York, New York 10286 
 Attention: Toys “R” Us Property - Trustee 
  

	 	Re:	Toys “R” Us Property Company I , LLC 10.75% Senior Notes due 2017 

 Reference is hereby made to that certain Indenture dated July 9, 2009 (the “Indenture”) among Toys “R” Us
Property Company I , LLC (“the Company”), the Guarantors party thereto, Toys “R” Us, Inc. and The Bank of New York Mellon, as trustee (the “Trustee”). Capitalized terms used but not defined herein shall
have the meanings set forth in the Indenture. 
 This certificate relates to
$             principal amount of Notes held in (check applicable space)              book-entry or
             definitive form by the undersigned. 
 The undersigned (transferor) (check one box below): 
  ̈     hereby requests the Registrar to deliver in exchange for its beneficial interest in the Global Note held by the Depositary a Note or Notes in definitive, registered form of
authorized denominations and an aggregate principal amount equal to its beneficial interest in such Global Note (or the portion thereof indicated above), in accordance with Section 2.6 of the Indenture; 
  ̈     hereby requests the Trustee to exchange or register the transfer
of a Note or Notes to              (transferee). 
 In
connection with any transfer of any of the Notes evidenced by this certificate occurring prior to the expiration of the periods referred to in Rule 144(d) under the Securities Act of 1933, as amended, the undersigned confirms that such Notes are
being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW: 
 (1)      ̈     to the Company or any of its
subsidiaries, subject to Section 2.6 of the Indenture; or 
  

 A-13 

 (2)      ̈     inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended) that purchases for its own account or
for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A under the Securities Act of 1933, as amended, in each case pursuant to and in compliance with Rule 144A thereunder;
or 
 (3)      ̈     outside the United
States in an offshore transaction within the meaning of Regulation S under the Securities Act of 1933, as amended, in compliance with Rule 904 thereunder; or 
 (4)      ̈     pursuant to an effective registration statement under the Securities Act of 1933, as amended.

  

 A-14 

 Unless one of the boxes is checked, the Registrar will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered holder thereof. 
  

	
	  
	Signature

  

			
	Signature Guarantee:	 	 
	 (Signature must be guaranteed by a participant
 in a recognized signature guarantee medallion program)

 TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”), and is aware that the sale to it
is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that
the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
		 		 	[Name of Transferee]
			
	 Dated:
                    
	 		 	 

 NOTICE: To be executed by an executive officer 
  

 A-15 

 SCHEDULE A 
 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE 
 The following exchanges of
a part of this Global Note for other 10.75% Senior Notes have been made: 
  

									
	 Date of Exchange
	  	Amount of
Decrease in
Principal Amount
of this Global Note	  	Amount of
Increase in
Principal Amount
of this Global Note	  	Principal Amount
of this Global Note
Following Such
Decrease (or
Increase)	  	Signature of
Authorized Officer
of Trustee or Note
Custodian

  

 A-16 

 EXHIBIT B 
 FORM OF NOTATIONAL GUARANTEE 
 Each Guarantor listed below (hereinafter referred
to as the “Guarantor,” which term includes any successors or assigns under that certain Indenture, dated as of July 9, 2009, by and among Toys “R” Us Property Company I , LLC (“the Company”), the
Guarantors party thereto, Toys “R” Us, Inc. and the Trustee (as amended and supplemented from time to time, the “Indenture”) and any additional Guarantors) has guaranteed the 10.75% Senior Notes due 2017 (the
“Notes”) and the obligations of the Company under the Indenture, which include (i) the due and punctual payment of the principal of, premium, if any, and interest on the Notes of the Company, whether at stated maturity, by
acceleration or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law) interest on any interest, if any, on the Notes, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee, (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same will be promptly paid in full when due or performed in accordance
with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise, and (iii) the payment of any and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any Holder in
enforcing any rights under this Note Guarantee or the Indenture, all in accordance with the terms set forth in Article X of the Indenture. 
 The obligations of each Guarantor to the Holders and to the Trustee pursuant to this Note Guarantee and the Indenture are expressly set forth in Article X of the Indenture and reference is hereby made to
such Indenture for the precise terms of this Note Guarantee. 
 No stockholder, employee, officer, director or incorporator, as
such, past, present or future of each Guarantor shall have any liability under this Note Guarantee by reason of his or its status as such stockholder, employee, officer, director or incorporator. 
 This is a continuing Note Guarantee and shall remain in full force and effect and shall be binding upon each Guarantor and its successors
and assigns until full and final payment of all of the Company’s obligations under the Notes and Indenture or until released in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the
Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to
the terms and conditions hereof. This is a Note Guarantee of payment and not of collection. 
 This Note Guarantee shall not be
valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Note Guarantee is noted shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized officers.
The Obligations of each Guarantor under its Note Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance or fraudulent transfer under applicable law. 
  

 B-1 

 THE TERMS OF ARTICLE X OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 
 Capitalized terms used herein have the same meanings given in the Indenture unless otherwise indicated. 
 Dated as of                     

  

			
	[NAME OF GUARANTOR]
		
	By:	 	 
	Name:	 	
	Title:	 	

  

 B-2 

 EXHIBIT C 
 [FORM OF CERTIFICATE TO BE DELIVERED 
 IN CONNECTION WITH TRANSFERS PURSUANT TO RULE
144A] 
 Toys “R” Us Property Company I, LLC 
 One Geoffrey Way 
 Wayne, NJ 07470 
 Attention:     Chief Financial Officer and General Counsel 
 The Bank of New
York Mellon 
 Corporate Finance Unit 
 101 Barclay Street, Floor 8W 
 New York, New York 10286 
 Attention: Toys “R” Us Property - Trustee 
  

	Re:	Toys “R” Us Property Company I , LLC 10.75% Senior Notes due 2017 (the “Notes”) 

 Ladies and Gentlemen: 
 In
connection with our proposed sale of $             aggregate principal amount at maturity of the Notes, we hereby certify that such transfer is being effected pursuant to and in
accordance with Rule 144A (“Rule 144A”) under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we hereby further certify that the Notes are being transferred to a person that we
reasonably believe is purchasing the Notes for its own account, or for one or more accounts with respect to which such person exercises sole investment discretion, and such person and each such account is a “qualified institutional buyer”
within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such Notes are being transferred in compliance with any applicable blue sky securities laws of any state of the United States. 
 You and Toys “R” Us Property Company I , LLC are entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  

			
	Very truly yours,
	
	 
	 [Name of Transferor]

		
	By:	 	 
		 	Authorized Signature
	
	 Signature guarantee:
                                         
       

 (Signature must be guaranteed by a participant in a recognized signature guarantee medallion
program) 
  

 C-1 

 EXHIBIT D 
 [FORM OF CERTIFICATE TO BE DELIVERED 
 IN CONNECTION WITH TRANSFERS 
 PURSUANT TO REGULATION S] 
 Toys
“R” Us Property Company I, LLC 
 One Geoffrey Way 
 Wayne, NJ 07470 
 Attention:     Chief Financial Officer and General Counsel

 The Bank of New York Mellon 
 Corporate Finance Unit 
 101 Barclay Street, Floor 8W 
 New York, New York 10286 
 Attention: Toys “R” Us Property - Trustee 
  

	Re:	Toys “R” Us Property Company I , LLC 10.75% Senior Notes due 2017 (the “Notes”) 

 Ladies and Gentlemen: 
 In
connection with our proposed sale of $             aggregate principal amount of the Notes, we confirm that such sale has been effected pursuant to and in accordance with Regulation
S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that: 
 (1) the offer of the Notes was not made to a person in the United States; 
 (2) either (a) at the time the buy order was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States or (b) the
transaction was executed in, on or through the facilities of a designated off-shore securities market and neither we nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 

(3) no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S, as applicable; and 
 (4) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act. 
  

 D-1 

 In addition, if the sale is made during a restricted period and the provisions of Rule
903(b) or Rule 904(b) of Regulation S are applicable thereto, we confirm that such sale has been made in accordance with the applicable provisions of Rule 903(b) or Rule 904(b), as the case may be. 
  

 D-2 

 Toys “R” Us Property Company I , LLC and you are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the
meanings set forth in Regulation S. 
  

			
	Very truly yours,
	
	 
	 [Name of Transferor]

		
	By:	 	 
		 	Authorized Signature

 Signature guarantee:
                                     
 (Signature must be guaranteed by a participant in a recognized signature guarantee medallion program) 
  

 D-3 

  

 cxxvii

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