Document:

Security Agreement

 Exhibit 10.14 
  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT (this “Agreement”) dated as of October 4, 2005 by and among each of: 
  
 BROOKSTONE COMPANY, INC., BROOKSTONE INTERNATIONAL HOLDINGS,
INC., BROOKSTONE HOLDINGS, INC., BROOKSTONE PROPERTIES, INC., BROOKSTONE PURCHASING, INC., BROOKSTONE RETAIL PUERTO RICO, INC., BROOKSTONE STORES, INC., and GARDENERS EDEN, INC. (collectively, the “Borrowers”); and 
  
 BROOKSTONE, INC. and ADVANCED AUDIO CONCEPTS, LIMITED
(collectively, the “Facility Guarantors”, and, together with the Borrowers, individually, a “Grantor” and collectively, the “Grantors”); and 
  
 BANK OF AMERICA, N.A., a national banking association, as
collateral agent (in such capacity, the “Collateral Agent” for the Secured Parties (as defined herein), in consideration of the mutual covenants contained herein and benefits to be derived herefrom. 
  
 WITNESSETH: 
  
 Reference is made to (a) that certain Credit Agreement dated as of even date herewith (as the same may be amended,
modified, supplemented or restated hereafter, the “Credit Agreement”) by, among others, (i) the Borrowers, (ii) the Lenders named therein, (iii) Bank of America, N.A., as Administrative Agent and Collateral Agent for
the Lenders and the Issuing Bank, as SwingLine Lender, and as Issuing Bank, and (iv) Goldman Sachs Credit Partners L.P., as Documentation Agent, (b) that certain Guaranty dated as of even date herewith (as the same may be amended,
modified, supplemented or restated hereafter, the “Facility Guaranty”) executed by the Facility Guarantor in favor of the Secured Parties, and (c) that certain Guaranty date as of even date herewith (as the same may be amended,
modified, supplemented, or restated hereinafter the “Borrower Guaranty”, together with the Facility Guaranty, collectively, the “Guaranty”) executed by the Borrower in favor of the Secured Parties. 
  
 The Lenders have agreed to make Loans to the Borrower, the SwingLine Lender
to make SwingLine Loans, and the Issuing Bank has agreed to issue Letters of Credit for the account of the Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement. Pursuant to the Guaranty, the
Facility Guarantor has guaranteed the Obligations of the Borrower. The obligations of the Lenders to make Loans, the SwingLine Lender to make SwingLine Loans, and of the Issuing Bank to issue Letters of Credit are each conditioned on, among other
things, the execution and delivery by the Grantors of an agreement in the form hereof to secure the Obligations (as defined herein). 

 Accordingly, the Grantors and the Collateral Agent, on behalf of itself and each other Secured Party (and
each of their respective successors and assigns) hereby agree as follows: 
  
 ARTICLE 1 Definitions 
  
 1.1 Generally. All references to the UCC shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if a term is defined in Article 9 of the UCC differently
than in another Article thereof, the term shall have the meaning set forth in Article 9, and provided further that if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of the Security
Interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be. 
  
 1.2 Definition of Certain Terms Used Herein. Unless the context otherwise requires, all capitalized terms used but
not defined herein shall have the meanings set forth in the Credit Agreement. As used herein, the following terms shall have the following meanings: 
  
 “Accessions” shall have the meaning given that term in the UCC. 
  
 “Account Debtor” shall have the meaning given that term in the UCC. 
  
 “Accounts” shall mean “accounts” as defined in the
UCC, and shall also include, without limitation, all: accounts, accounts receivable, receivables, and rights to payment (whether or not earned by performance) for: property that has been or is to be sold, leased, licensed, assigned, or otherwise
disposed of; services rendered or to be rendered; a policy of insurance issued or to be issued; a secondary obligation incurred or to be incurred; or arising out of the use of a credit or charge card or information contained on or used with that
card. 
  
 “Agents” shall mean the Administrative
Agent and Collateral Agent. 
  
 “Blue Sky Laws”
shall have the meaning assigned to such term in Section 6.1 of this Agreement. 
  
 “Chattel Paper” shall have the meaning given that term in the UCC. 
  
 “Collateral” shall mean all personal and fixture property of every king and nature of each Grantor, including, without limitation, all:
(a) Accounts, (b) Chattel Paper, (c) Commercial Tort Claims, (d) Deposit Accounts, (e) Documents, (f) Equipment, (g) Fixtures, (h) General Intangibles (including Payment Intangibles), (i) Goods,
(j) Instruments, (k) Inventory, (l) Investment Property, (m) Letter-of-Credit Rights, (n) Software, (o) Supporting Obligations, (p) money, policies and certificates of insurance, deposits, cash, or other property,
(q) all books, records, and information relating to any of the foregoing and/or to the operation of any Grantor’s business, and all rights of access to such books, records, and information, and all property in which such books, records,
and information are stored, recorded and maintained, (r) all insurance proceeds, refunds, and premium rebates, including, without limitation, proceeds of fire and credit 

  

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insurance, whether any of such proceeds, refunds, and premium rebates arise out of any of the foregoing ((a) through (q)) or otherwise, (s) all liens,
guaranties, rights, remedies, and privileges pertaining to any of the foregoing ((a) through (r)), including the right of stoppage in transit, and (t) any of the foregoing whether now owned or now due, or in which any Grantor has an interest,
or hereafter acquired, arising, or to become due, or in which any Grantor obtains an interest, and all products, Proceeds, substitutions, and Accessions of or to any of the foregoing provided, that notwithstanding anything to the
contrary contained herein “Collateral” shall not include Excluded Property. 
  
 “Collateral Agent’s Rights and Remedies” shall have the meaning assigned to such term in Section 8.8. 
  

“Commercial Tort Claim” shall have the meaning given that term in the UCC. 
  
 “Credit Agreement” shall have the meaning assigned to such
term in the preliminary statement of this Agreement. 
  
 “Deposit Account” shall mean “deposit account” as defined in the UCC, and shall also include, without limitation, all demand, time, savings, or similar accounts maintained with a bank or other financial
institution. 
  
 “Documents” shall have the
meaning given that term in the UCC. 
  
 “Equipment” shall mean “equipment” as defined in the UCC, and also include, without limitation, all furniture, store fixtures, motor vehicles, machinery, office equipment, plant equipment, tools, dies and molds
which are used in the operation or furtherance of a Grantors’ business, and any and all Accessions or additions thereto, and substitutions therefor. 
  
 “Excluded Property” shall mean, collectively (i) any permit, lease, license, contract, instrument or other agreement held by any
Grantor that prohibits or requires the consent of any Person as a condition to the creation by such Grantor of a security interest or Lien thereon or that would be breached or give the other party the right to terminate it as a result thereof, or
any permit, lease, license contract or other agreement held by any Grantor to the extent that any Applicable Law, applicable thereto prohibits the creation of a security interest or Lien thereon or that would be breached or give the other party the
right to terminate it as a result thereof, but only, in each case, to the extent, and for so long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC (including Sections 9-406(a), 9-407(a),
9-408(a) and 9-409 of the UCC) or any other Applicable Law, and (ii) Equipment owned by any Grantor that is subject to a purchase money Lien or a capital lease which is permitted by the Credit Agreement if the contract or other agreement in
which such Lien is granted (or in the documentation providing for such capital lease) prohibits or requires the consent of any Person as a condition to the creation of any other Lien on such Equipment or that would be breached or give the other
party the right to terminate it as a result thereof provided, however, “Excluded Property” shall not include any Proceeds, substitutions or replacements of Excluded Property (unless such Proceeds, substitutions or
replacements would constitute Excluded Property). 
  

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 “Financing Statement” shall have the meaning given that term in the UCC. 
  
 “Fixture Filing” shall have the meaning given that term in
the UCC. 
  
 “General Intangibles” shall mean
“general intangible” as defined in the UCC, and shall also include, without limitation, all: Payment Intangibles; rights to payment for credit extended; deposits; amounts due to any Grantor; credit memoranda in favor of any Grantor;
warranty claims; tax refunds and abatements; insurance refunds and premium rebates; all means and vehicles of investment or hedging, including, without limitation, options, warrants, and futures contracts; records; customer lists; telephone numbers;
goodwill; causes of action; judgments; payments under any settlement or other agreement; literary rights; rights to performance; royalties; license and/or franchise fees; rights of admission; licenses; franchises; license agreements, including all
rights of any Grantor to enforce same; permits, certificates of convenience and necessity, and similar rights granted by any governmental authority; internet addresses and domain names; developmental ideas and concepts; proprietary processes;
blueprints, drawings, designs, diagrams, plans, reports, and charts; catalogs; technical data; computer software programs (including the source and object codes therefor), computer records, computer software, rights of access to computer record
service bureaus, service bureau computer contracts, and computer data; tapes, disks, semi-conductors chips and printouts; user, technical reference, and other manuals and materials; patents, patent applications and patents pending; trade secret
rights, copyrights, copyright applications, mask work rights and interests, and derivative works and interests; trade names, trademarks, trademark applications, service marks, and service mark applications, together with all goodwill connected with
and symbolized by any of the foregoing; all other general intangible property of any Grantor in the nature of intellectual property; proposals; cost estimates, and reproductions on paper, or otherwise, of any and all concepts or ideas, or connected
with, the design, development, manufacture, sale, marketing, leasing, or use of any or all property produced, sold, or leased, by or credit extended or services performed, by any Grantor, whether intended for an individual customer or the general
business of any Grantor, or used or useful in connection with research by any Grantor. 
  
 “Goods” shall have the meaning given that term in the UCC. 
  
 “Guaranty” shall have the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 “Guaranty Obligations” shall mean the obligations and
liabilities guarantied by the Facility Guarantor and Borrower pursuant to the Facility Guaranty and Borrower Guaranty, respectively. 
  
 “Indemnitee” shall have the meaning assigned to such term in Section 8.6 of this Agreement. 
  
 “Instruments” shall have the meaning given that term in the
UCC. 
  

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 “Inventory” shall mean “inventory” as defined in the UCC, and shall also
include, without limitation, all: (a) Goods which (i) are leased by a Person as lessor, (ii) are held by a Person for sale or lease or to be furnished under a contract of service, (iii) are furnished by a Person under a contract
of service, or (iv) consist of raw materials, work in process, or materials used or consumed in a business; (b) Goods of said description in transit; (c) Goods of said description which are returned, repossessed and rejected;
(d) packaging, advertising, and shipping materials related to any of the foregoing; (e) all names, marks, and General Intangibles affixed or to be affixed thereto or associated therewith; and (f) Documents which represent any of the
foregoing. 
  
 “Investment Property” shall have
the meaning given that term in the UCC. 
  
 “Letter-of-Credit Right” shall mean “letter-of-credit” as defined in the UCC and shall also include, without limitation, all rights to payment or performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand payment or performance. 
  
 “Obligations” shall mean “Obligations” as defined in the Credit Agreement and the Guaranty Obligations. 
  
 “Payment Intangible” shall mean “payment intangible” as defined in the UCC, and shall also refer
to any General Intangible under which the Account Debtor’s primary obligation is a monetary obligation. 
  
 “Proceeds” shall include, without limitation, “Proceeds” as defined in the UCC and each type of property described in the
definition of Collateral. 
  
 “Secured Parties”
shall mean (a) the Lenders, (b) the Agents, (c) the Issuing Bank, (d) Bank of America, N.A. or any of its respective Affiliates with respect to any transaction entered into by any Grantor with any such Person which arises out of
any cash management, depository, investment, letter of credit, Hedging Agreement, or other banking or financial services provided by any such Person, (f) any other Person to whom Obligations under the Credit Agreement and other Loan Documents
are owing, and (g) the successors and assigns of each of the foregoing. 
  
 “Securities Act” shall have the meaning assigned to such term in Section 6.1 of this Agreement. 
  
 “Security” shall have the meaning given that term in the UCC. 
  
 “Security Interest” shall have the meaning assigned to such term in Section 2.1 of this Agreement.

  
 “Software” shall have the meaning given that
term in the UCC. 
  

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 “Supporting Obligation” shall mean “supporting obligation” as defined in the
UCC and shall also refer to a Letter-of-Credit Right or secondary obligation that supports the payment or performance of an Account, Chattel Paper, a Document, a General Intangible, an Instrument, or Investment Property. 
  
 1.3 Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Credit Agreement shall be applicable to this Agreement. 
  
 ARTICLE 2 Security Interest 
  
 2.1 Security Interest. As security for the payment or performance, as the case may be, in full of the Obligations, each Grantor hereby bargains,
collaterally assigns, mortgages, pledges and hypothecates to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the
Secured Parties, a security interest in, all of such Grantor’s right, title and interest in, to and under the Collateral, wherever located, whether now owned or hereafter acquired or arising, (the “Security Interest”). Without
limiting the foregoing, each Grantor hereby designates the Collateral Agent as such Grantor’s true and lawful attorney, exercisable by the Collateral Agent whether or not an Event of Default exists, with full power of substitution, at the
Collateral Agent’s option, to file one or more Financing Statements (including Fixture Filings), continuation statements, or to sign other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security
Interest granted by each Grantor, without the signature of any Grantor and naming any Grantor or the Grantors as debtors and the Collateral Agent as secured party. 
  
 2.2 No Assumption of Liability. The Security Interest is granted as security only and shall not subject the
Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to or arising out of the Collateral. 
  
 ARTICLE 3 Representations and Warranties 
  
 The Grantors jointly and severally represent and warrant to the Collateral
Agent and the other Secured Parties that: 
  
 3.1
Representations and Warranties Incorporated by Reference. Each Grantor hereby makes each of the representations and warranties set forth in Article III of the Credit Agreement applicable to such Grantor as a Loan Party. Each such warranty and
representation is incorporated herein by reference. 
  
 3.2
Title and Authority. Each Grantor has good and valid rights in, and title to, the Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Collateral Agent the
Security Interest in such Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval which has
been obtained. 
  

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 3.3 Filings. UCC Financing Statements (including Fixture Filings, as applicable) or other
appropriate filings, recordings or registrations containing a description of the Collateral have been delivered to the Collateral Agent for filing in each governmental, municipal or other office as is necessary to publish notice of and protect the
validity of and to establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in respect of all Collateral in which the Security Interest may be perfected by filing, recording
or registration in the United States (or any political subdivision thereof) and its territories and possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or re-registration is necessary in any such
jurisdiction, except as provided under Applicable Law with respect to the filing of continuation statements. 
  
 3.4 Validity and Priority of Security Interest. The Security Interest constitutes (a) a legal and valid security interest in all of the
Collateral securing the payment and performance of the Obligations, and (b) subject to the filings described in Section 3.3 above and the taking of possession or control by the Collateral Agent of the Collateral to the extent possession or
control by the Collateral Agent is required to perfect the Lien on such Collateral created under this Agreement, a perfected security interest in all of the Collateral. The Security Interest is and shall be prior to any other Lien on any of the
Collateral, subject only to non-consensual Permitted Encumbrances. 
  
 3.5 Absence of Other Liens. The Collateral is owned by the Grantors free and clear of any Lien, except for Permitted Encumbrances. Except as provided in the Loan Documents, the Grantors have not filed or consented to the filing of
(a) any Financing Statement or analogous document under the UCC or any other Applicable Law covering any Collateral, (b) any collateral assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument
covering any Collateral with the United States Patent and Trademark Office or the United States Copyright Office or (c) any collateral assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument
covering any Collateral with any foreign governmental, municipal or other office, which Financing Statement or analogous document, collateral assignment, security agreement or similar instrument is still in effect, except, in each case, for
Permitted Encumbrances. 
  
 3.6 Bailees, Warehousemen, Etc.
As of the Closing Date, except as set forth on Schedule 3.6 hereto, no Inventory of any Grantor is in the care or custody of any third party or stored or entrusted with a bailee or other third party. 
  
 3.7 Consignments. No Grantor has, and none shall have, possession of
any property on consignment, unless such property is treated on the Grantor’s books and records as “goods on consignment” and such property is not treated as Inventory on the books and records of the Grantor. 
  

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 ARTICLE 4 Covenants 
  
 4.1 Covenants Incorporated by Reference. Each Grantor hereby
covenants and agrees that each Grantor shall perform, observe and otherwise comply with the covenants set forth in Articles V and VI of the Credit Agreement applicable to such Grantor as a Loan Party. 
  
 4.2 Change of Name; Location of Collateral; Records; Place of
Business. 
  
 (a) Each Grantor will provide
to the Collateral Agent prompt written notice of (a) any change (i) in its corporate name or in any trade name used to identify it in the conduct of its business or in the ownership of its properties, (ii) in the location of its chief
executive office, any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility),
(iii) in its corporate structure or jurisdiction of incorporation or formation, or (iv) in its Federal Taxpayer Identification Number or organizational identification number assigned to it by its state of organization or (b) the
acquisition by any Grantor of any property for which additional filings or recordings are necessary to perfect and maintain the Collateral Agent’s Security Interest therein. Each Grantor agrees not to effect or permit any change referred to in
the preceding sentence unless all filings have been made under the UCC or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected first priority security
interest in all of the Collateral. 
  
 (b) Each
Grantor agrees to maintain, at its own cost and expense, complete and accurate records with respect to the Collateral owned by it and, at such time or times as the Collateral Agent may reasonably request, promptly to prepare and deliver to the
Collateral Agent a duly certified schedule or schedules in form and detail reasonably satisfactory to the Collateral Agent showing the identity, amount and location of any and all Collateral. 
  
 4.3 Protection of Security. Each Grantor shall, at its own cost and
expense, take any and all actions reasonably necessary to defend title to the Collateral against all Persons and to defend the Security Interest of the Collateral Agent in the Collateral and the priority thereof against any Lien, other than
Permitted Encumbrances. 
  
 4.4 Further Assurances. Each
Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Collateral Agent may from time to time reasonably request to better assure,
preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security
Interest and the filing of any Financing Statements (including Fixture Filings) or other documents in connection herewith or therewith. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any
promissory note or other instrument in an amount in excess of 

  

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$150,000, such note or instrument shall be immediately pledged and delivered to the Collateral Agent, duly endorsed in a manner satisfactory to the
Collateral Agent. 
  
 4.5 Inspection and Verification. The
Collateral Agent and such Persons as the Collateral Agent may reasonably designate shall have the right, in the case of Accounts or Collateral in the possession of any third Person, to inspect and verify the Collateral, to the extent provided in
Sections 5.09 and 5.10 of the Credit Agreement. Additionally for the purpose of making such a verification, the Collateral Agent, and such Persons as the Collateral Agent may reasonably designate, shall have the right to contact (i) upon and
during the continuance of an Event of Default Account Debtors or (ii) third Persons possessing such Collateral. The Collateral Agent shall have the absolute right to share any information it gains from such inspection or verification with any
Secured Party. 
  
 4.6 Taxes; Encumbrances. At its option,
the Collateral Agent may during the continuance of an Event of Default discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral and not permitted pursuant to
the Credit Agreement, and may take any other action which the Collateral Agent may deem necessary or desirable to repair, maintain or preserve any of the Collateral to the extent any Grantor fails to do so as required by the Credit Agreement or this
Agreement, and each Grantor jointly and severally agrees to reimburse the Collateral Agent on demand for any payment made or any expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided, however, that the Collateral
Agent shall not have any obligation to undertake any of the foregoing and shall have no liability on account of any action so undertaken except where there is a specific finding in a judicial proceeding before a court of competent jurisdiction (in
which the Collateral Agent has had notice and an opportunity to be heard), from which finding no further appeal is available, that the Collateral Agent had acted in actual bad faith or in a grossly negligent manner; and provided further that the
making of any such payments or the taking of any such action by the Collateral Agent shall not be deemed to constitute a waiver of any Default or Event of Default arising from the Grantor’s failure to have made such payments or taken such
action. Nothing in this Section 4.6 shall be interpreted as excusing any Grantor from the performance of any covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens, security interests or other
encumbrances and maintenance as set forth herein or in the other Loan Documents. 
  
 4.7 Assignment of Security Interest. 
  
 (a) If at any time any Grantor shall take a security interest in any property of an Account Debtor or any other Person to secure payment and performance of an Account, such Grantor shall promptly assign such security
interest to the Collateral Agent. Such assignment need not be filed of public record unless necessary to continue the perfected status of the security interest against creditors of, and transferees from, the Account Debtor or other Person granting
the security interest. 
  

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 (b) To the extent that any Grantor is a beneficiary under any written letter of credit in
excess of $250,000 now or hereafter issued in favor of such Grantor, such Grantor shall deliver such letter of credit to the Collateral Agent. The Collateral Agent shall from time to time, at the request and expense of such Grantor, make such
arrangements with such Grantor as are in the Collateral Agent’s reasonable judgment necessary and appropriate so that such Grantor may make any drawing to which such Grantor is entitled under such letter of credit, without impairment of the
Collateral Agent’s perfected security interest in such Grantor’s rights to proceeds of such letter of credit or in the actual proceeds of such drawing. At the Collateral Agent’s request, such Grantor shall, for any letter of credit in
excess of $250,000, whether or not written, now or hereafter issued in favor of such Grantor as beneficiary, execute and deliver to the issuer and any confirmer of such letter of credit an assignment of proceeds form, in favor of the Collateral
Agent and reasonably satisfactory to the Collateral Agent and such issuer or (as the case may be) such confirmer, requiring the proceeds of any drawing under such letter of credit to be paid directly to the Collateral Agent. 
  
 4.8 Continuing Obligations of the Grantors. Each Grantor shall remain
liable to observe and perform all the conditions and obligations to be observed and performed by it under each material contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof.

  
 4.9 Use and Disposition of Collateral. None of the
Grantors shall make or permit to be made a collateral assignment, pledge or hypothecation of the Collateral or shall grant any other Lien in respect of the Collateral or shall grant control (as defined in the UCC) of any Collateral to any third
person, except as expressly permitted by Section 6.2 of the Credit Agreement. Except as expressly permitted in the Credit Agreement, (i) none of the Grantors shall make or permit to be made any transfer of the Collateral, and
(ii) each Grantor shall remain at all times in possession of the Collateral owned by it. 
  
 4.10 Limitation on Modification of Accounts. None of the Grantors will, without the Collateral Agent’s prior written consent, grant any extension of the time of payment of any of the Accounts, compromise,
compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable for the payment thereof or allow any credit or discount whatsoever thereon, other than extensions, releases, credits, discounts,
compromises or settlements granted or made in the ordinary course of business. 
  
 4.11 Insurance. 
  
 (a) Each Grantor shall (i) maintain or shall cause to be maintained such insurance as is required pursuant to Section 5.07 of the Credit Agreement; (ii) maintain such other insurance, as may be required by law; and
(iii) furnish to the Collateral Agent, upon written request, full information as to the insurance carried. 
  
 (b) Each Grantor hereby irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated
by the Collateral 

  

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Agent) upon the occurrence and during the continuance of an Event of Default as such Grantor’s true and lawful agent (and attorney-in-fact), for the
purpose of making, settling and adjusting claims in respect of Collateral under policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for
making all determinations and decisions with respect thereto. In the event that any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating
thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of the Grantors hereunder or any Default or Event of Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and
take any other actions with respect thereto as the Collateral Agent deems advisable. All sums disbursed by the Collateral Agent in connection with this Section 4.11, including reasonable attorneys’ fees, court costs, expenses and other
charges relating thereto, shall be payable, promptly upon demand, by the Grantors to the Collateral Agent and shall be additional Obligations secured hereby. 
  
 4.12 Commercial Tort Claims. If any Grantor shall at any time acquire a Commercial Tort Claim having a value in excess of $250,000, such Grantor
shall promptly notify the Collateral Agent in writing of the details thereof and the Grantors shall take such actions as the Collateral Agent shall reasonably request in order to grant to the Collateral Agent, for the ratable benefit of the Secured
Parties, a perfected and first priority security interest therein and in the Proceeds thereof. 
  
 ARTICLE 5 Collections 
  
 5.1 Investment Property. If any Grantor shall, now or at any time hereafter, hold or acquire any certificated securities, such Grantor shall
forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time specify. If any securities now or hereafter
acquired by any Grantor are uncertificated and are issued to any Grantor or its nominee directly by the issuer thereof (other than in the case of a less than wholly-owned Subsidiary any securities of such Subsidiary if and to the extent permitted
under the organizational documents of such Subsidiary), such Grantor shall promptly notify the Collateral Agent thereof, and at the Collateral Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to
the Collateral Agent, use reasonable commercial efforts to cause the issuer to agree to comply, without further consent of such Grantor or such nominee, at any time with instructions from the Collateral Agent as to such securities. If any
securities, whether certificated or uncertificated, or other Investment Property now or hereafter acquired by the any Grantor are held by any Grantor or its nominee through a securities intermediary or commodity intermediary, such Grantor shall
promptly notify the Collateral Agent thereof and, at the Collateral Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) cause such securities intermediary
or (as the case may be) commodity intermediary to agree to comply, in each case without further consent of such Grantor or such nominee, at any time, with entitlement orders or other 

  

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instructions from the Collateral Agent to such securities intermediary as to such securities or other Investment Property, or (as the case may be) to apply
any value distributed on account of any commodity contract as directed by the Collateral Agent to such commodity intermediary, or (ii) in the case of financial assets or other Investment Property held through a securities intermediary, arrange
for the Collateral Agent to become the entitlement holder with respect to such Investment Property, with such Grantor being permitted, only with the consent of the Collateral Agent, to exercise rights to withdraw or otherwise deal with such
Investment Property. The provisions of this Section shall not apply to any financial assets credited to a securities account for which the Collateral Agent is the securities intermediary. The provisions of this Section 5.1 are subject to the
limitations set forth in Section 2.1 of the Pledge Agreement, including the limitations that the Grantors shall not be required to grant a Lien in favor of the Collateral Agent on (x) more than 65% of the Capital Stock or equity interests
held by the Grantors in Foreign Subsidiaries and (y) Capital Stock or other equity interests held by a Grantor in an entity that is not a wholly-owned subsidiary if and to the extent not permitted under the organizational documents of such
entity. 
  
 5.2 Collections. 
  
 (a) Each Grantor shall at all times comply with the Cash
Receipts provisions of Section 2.23 of the Credit Agreement including, without limitation, causing the sweep on each Business Day of all Cash Receipts into the Agent’s Account or a Blocked Account, as provided for in the Credit Agreement.

  
 (b) Without the prior written consent of the
Collateral Agent, no Grantor shall modify or amend the instructions pursuant to any of the DDA Notifications, the Credit Card Notifications, or the Blocked Account Agreements. So long as no Event of Default has occurred and is continuing, each
Grantor shall, and the Collateral Agent hereby authorizes each Grantor to, enforce and collect all amounts owing on the Inventory and Accounts, for the benefit and on behalf of the Collateral Agent and the other Secured Parties; provided,
however, that such privilege may, at the option of the Collateral Agent, be terminated upon the occurrence and during the continuance of any Event of Default. 
  
 5.3 Power of Attorney. Each Grantor irrevocably makes, constitutes and appoints the Collateral Agent (and all
officers, employees or agents designated by the Collateral Agent) as such Grantor’s true and lawful agent and attorney-in-fact, and in such capacity the Collateral Agent shall have the right, with power of substitution for each Grantor and in
each Grantor’s name or otherwise, for the use and benefit of the Collateral Agent and the other Secured Parties, (a) at any time, whether or not a Default or Event of Default has occurred, to take actions required to be taken by the
Grantors under Section 2.1 and 5.1 of this Agreement, (b) upon the occurrence and during the continuance of an Event of Default or as otherwise permitted under the Credit Agreement, (i) to receive, endorse, assign and/or deliver any
and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (ii) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any
of the Collateral; (iii) to sign the name of any Grantor 

  

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on any invoices, schedules of Collateral, freight or express receipts, or bills of lading storage receipts, warehouse receipts or other documents of title
relating to any of the Collateral; (iv) to sign the name of any Grantor on any notice to such Grantor’s Account Debtors; (v) to sign the name of any Grantor on any proof of claim in bankruptcy against Account Debtors, and on notices
of lien, claims of mechanic’s liens, or assignments or releases of mechanic’s liens securing the Accounts; (vi) to sign change of address forms to change the address to which each Grantor’s mail is to be sent to such address as
the Collateral Agent shall designate, provided that copies of any mail shall be provided to the applicable Grantor; (vii) to receive and open each Grantor’s mail, remove any Proceeds of Collateral therefrom and turn over the balance of
such mail either to the Lead Borrower or to any trustee in bankruptcy or receiver of a Grantor, or other legal representative of a Grantor whom the Collateral Agent determines to be the appropriate person to whom to so turn over such mail;
(viii) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any
Collateral; (ix) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (x) to take all such action as may be necessary to obtain the payment of any letter of credit
and/or banker’s acceptance of which any Grantor is a beneficiary; (xi) to repair, manufacture, assemble, complete, package, deliver, alter or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any customer
of any Grantor; (xii) to use, license or transfer any or all General Intangibles of any Grantor; and (xiii) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and
to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided, however, that nothing herein
contained shall be construed as requiring or obligating the Collateral Agent or any other Secured Party to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent or any other
Secured Party, or to present or file any claim or notice. It is understood and agreed that the appointment of the Collateral Agent as the agent and attorney-in-fact of the Grantors for the purposes set forth above is coupled with an interest and is
irrevocable. 
  
 5.4 No Obligation to Act. The Collateral
Agent shall not be obligated to do any of the acts or to exercise any of the powers authorized by Section 5.3, but if the Collateral Agent elects to do any such act or to exercise any of such powers, it shall not be accountable for more than it
actually receives as a result of such exercise of power, and shall not be responsible to any Grantor for any act or omission to act except for any act or omission to act as to which there is a final determination made in a judicial proceeding before
a court of competent jurisdiction (in which proceeding the Collateral Agent has had notice and an opportunity to be heard) which determination includes a specific finding that the subject act or omission to act had been grossly negligent, willful
misconduct, or in actual bad faith. The provisions of Section 5.3 shall in no event relieve any Grantor of any of its obligations hereunder or under any other Loan Document with respect to the Collateral or any part thereof or impose any
obligation on the Collateral Agent or any other Secured Party to proceed in any particular manner with respect to the Collateral or any part thereof, or in any way limit the exercise by the Collateral Agent or any 

  

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other Secured Party of any other or further right which it may have on the date of this Agreement or hereafter, whether hereunder, under any other Loan
Document, by law or otherwise. 
  
 ARTICLE
6 Remedies 
  
 6.1 Remedies upon Default. Upon
the occurrence and the during the continuance of an Event of Default, it is agreed that the Collateral Agent shall have in any jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies
of a secured party under the UCC or other Applicable Law. The rights and remedies of the Collateral Agent during the continuance of an Event of Default shall include, without limitation, the right to take any of or all the following actions at the
same or different times: 
  
 (a) With respect to
any Collateral consisting of Accounts, General Intangibles (including Payment Intangibles), Letter-of-Credit Rights, Instruments, Chattel Paper, Documents, and Investment Property, the Collateral Agent may collect the Collateral with or without the
taking of possession of any of the Collateral. 
  
 (b) With respect to any Collateral consisting of Accounts, the Collateral Agent may (i) demand, collect and receive any amounts relating thereto, as the Collateral Agent may determine; (ii) commence and prosecute any actions in
any court for the purposes of collecting any such Accounts and enforcing any other rights in respect thereof; (iii) defend, settle or compromise any action brought and, in connection therewith, give such discharges or releases as the Collateral
Agent may reasonably deem appropriate; (iv) without limiting the Collateral Agent’s rights set forth in Section 5.3 hereof, receive, open and dispose of mail addressed to any Grantor and endorse checks, notes, drafts, acceptances,
money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to such Accounts or securing or relating to such Accounts, on behalf of and in the name of such
Grantor; and (v) sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any such Accounts or the goods or services which have given rise thereto, as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes. 
  
 (c) With respect to any Collateral consisting of Investment Property, the Collateral Agent may (i) exercise all rights of any Grantor with respect thereto, including without limitation, the right to exercise all
voting and corporate rights at any meeting of the shareholders of the Issuer of any Investment Property and to exercise any and all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any Investment
Property as if the Collateral Agent was the absolute owner thereof, including the right to exchange, at its discretion, any and all of any Investment Property upon the merger, consolidation, reorganization, recapitalization or other readjustment of
the Issuer thereof, all without liability except to account for property actually received as provided in Section 5.4 hereof; (ii) transfer such Collateral at any time to itself, or to its nominee, and receive the income thereon and hold
the same as 

  

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Collateral hereunder or apply it to the Obligations; and (iii) demand, sue for, collect or make any compromise or settlement it deems desirable. The
Grantors recognize that (a) the Collateral Agent may be unable to effect a public sale of all or a part of the Investment Property by reason of certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77, (as amended and in
effect, the “Securities Act”) or the Securities laws of various states (the “Blue Sky Laws”), but may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire the Investment Property for their own account, for investment and not with a view to the distribution or resale thereof, (b) that private sales so made may be at prices and upon other terms less favorable
to the seller than if the Investment Property were sold at public sales, (c) that neither the Collateral Agent nor any Secured Party has any obligation to delay sale of any of the Investment Property for the period of time necessary to permit
the Investment Property to be registered for public sale under the Securities Act or the Blue Sky Laws, and (d) that private sales made under the foregoing circumstances shall be deemed to have been made in a commercially reasonable manner.

  
 (d) With respect to any Collateral consisting
of Inventory, Goods, and Equipment, the Collateral Agent may conduct one or more going out of business sales, in the Collateral Agent’s own right or by one or more agents and contractors. Such sale(s) may be conducted upon any premises owned,
leased, or occupied by any Grantor. The Collateral Agent and any such agent or contractor, in conjunction with any such sale, may augment the Inventory with other goods (all of which other goods shall remain the sole property of the Collateral Agent
or such agent or contractor). Any amounts realized from the sale of such goods which constitute augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in their disposition) shall be the sole property of the
Collateral Agent or such agent or contractor and neither any Grantor nor any Person claiming under or in right of any Grantor shall have any interest therein. Each purchaser at any such going out of business sale shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor. 
  
 (e) With or without legal process and with or without prior notice or demand for performance, the Collateral Agent may enter upon, occupy, and use any premises owned or occupied by each Grantor, and may exclude the
Grantors from such premises or portion thereof as may have been so entered upon, occupied, or used by the Collateral Agent. The Collateral Agent shall not be required to remove any of the Collateral from any such premises upon the Collateral
Agent’s taking possession thereof, and may render any Collateral unusable to the Grantors. In no event shall the Collateral Agent be liable to any Grantor for use or occupancy by the Collateral Agent of any premises pursuant to this
Section 6.1, nor for any charge (such as wages for the Grantors’ employees and utilities) incurred in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies (as defined herein) hereunder.

  

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 (f) The Collateral Agent may require any Grantor to assemble the Collateral and make it
available to the Collateral Agent at the Grantor’s sole risk and expense at a place or places which are reasonably convenient to both the Collateral Agent and such Grantor. 
  
 (g) Each Grantor agrees that the Collateral Agent shall have the right, subject to Applicable Law, to sell
or otherwise dispose of all or any part of the Collateral, at public or private sale, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. Each purchaser at any such sale shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor. 
  
 (h) Unless the Collateral is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market (in which event the Collateral Agent shall provide the Grantors such notice as
may be practicable under the circumstances), the Collateral Agent shall give the Grantors at least ten (10) days’ prior written notice, by authenticated record, of the date, time and place of any proposed public sale, and of the date after
which any private sale or other disposition of the Collateral may be made. Each Grantor agrees that such written notice shall satisfy all requirements for notice to that Grantor which are imposed under the UCC or other Applicable Law with respect to
the exercise of the Collateral Agent’s rights and remedies upon default (as that term is used in the UCC). The Collateral Agent shall not be obligated to make any sale or other disposition of any Collateral if it shall determine not to do so,
regardless of the fact that notice of sale or other disposition of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time
by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. 
  
 (i) Any public sale shall be held at such time or times within ordinary business hours and at such place or
places as the Collateral Agent may fix and state in the notice of such sale. At any sale or other disposition, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may
(in its sole and absolute discretion) determine. If any of the Collateral is sold, leased, or otherwise disposed of by the Collateral Agent on credit, the Obligations shall not be deemed to have been reduced as a result thereof unless and until
payment is received thereon by the Collateral Agent. 
  
 (j) At any public (or, to the extent permitted by Applicable Law, private) sale made pursuant to this Section 6.1, the Collateral Agent or any other Secured Party may bid for or purchase, free (to the extent permitted by Applicable
Law) from any right of redemption, stay, valuation or appraisal on the part of any Grantor, the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to the Collateral Agent
or such other Secured Party from any Grantor on account of the Obligations as a credit against the purchase price, and the 

  

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Collateral Agent or such other Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further
accountability to any Grantor therefor. 
  
 (k)
For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof. The Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be entitled to
the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full.

  
 (l) As an alternative to exercising the power
of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose upon the Collateral and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. 
  
 (m) To the extent permitted by Applicable Law, each Grantor hereby waives all rights of redemption, stay, valuation and appraisal which
such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 
  
 6.2 Application of Proceeds. After the occurrence and during the continuance of an Event of Default and acceleration of the Obligations, the
Collateral Agent shall apply the proceeds of any collection or sale of the Collateral, as well as any Collateral consisting of cash, or any Collateral granted under any other of the Security Documents in accordance with Section 2.23 of the
Credit Agreement. 
  
 The Collateral Agent shall have absolute
discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale or other disposition of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by
statute or under a judicial proceeding), the receipt of the purchase money by the Collateral Agent or of the officer making the sale or other disposition shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold or
otherwise disposed of and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

  
 ARTICLE 7 Perfection of Security
Interest 
  
 7.1 Perfection by Filing. This Agreement
constitutes an authenticated record, and each Grantor hereby authorizes the Collateral Agent, pursuant to the provisions of Sections 2.1 and 5.3, to file one or more financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral, in such filing offices as the Collateral Agent shall 

  

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deem appropriate, and the Grantors shall pay the Collateral Agent’s reasonable costs and expenses incurred in connection therewith. 
  
 7.2 Other Perfection, Etc. The Grantors shall at any time and from
time to time take such steps as the Collateral Agent may reasonably request for the Collateral Agent (a) to obtain “control” of any Investment Property (to the extent required herein), Deposit Accounts (to the extent required by the
Credit Agreement), Letter-of-Credit Rights (to the extent required herein) or electronic Chattel Paper (as such terms are defined in the UCC), with any agreements establishing control to be in form and substance reasonably satisfactory to the
Collateral Agent, and (c) otherwise to insure the continued perfection of the Collateral Agent’s security interest in any of the Collateral with the priority described in Section 3.4 and of the preservation of its rights therein.

  
 7.3 Savings Clause. Nothing contained in this Article 7
shall be construed to narrow the scope of the Collateral Agent’s Security Interest in any of the Collateral or the perfection or priority thereof or to impair or otherwise limit any of the Collateral Agent’s Rights and Remedies hereunder
except (and then only to the extent) as mandated by the UCC. 
  
 ARTICLE 8 Miscellaneous 
  
 8.1 Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 9.1 of the Credit Agreement. 
  
 8.2 Grant of Non-Exclusive License. Each Grantor hereby grants to the
Collateral Agent a royalty free, non-exclusive, irrevocable license, to use, apply, and affix any trademark, trade name, logo, or the like in which any Grantor now or hereafter has rights, such license being exercisable by Collateral Agent upon the
occurrence and during the continuance of an Event of Default in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies hereunder including, without limitation, in connection with any completion of the
manufacture of Inventory or any sale or other disposition of Inventory. 
  
 8.3 Security Interest Absolute. All rights of the Collateral Agent hereunder, the Security Interest and all obligations of the Grantors hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document, or any other agreement or instrument, (c) any exchange, release
or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from the Guaranty or any other guarantee, securing or guaranteeing all or any of the Obligations, or (d) any other
circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor in respect of the Obligations or this Agreement. 
  

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 8.4 Survival of Agreement. All covenants, agreements, representations and warranties made by the
Grantors herein and in any other Loan Document and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the
Collateral Agent and the other Secured Parties and shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of any Loans and the issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the Agents, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Loan
Agreement, and shall continue in full force and effect as long as the Obligations (other than contingent obligations for which no claim has been made) are outstanding and unpaid or the Letter of Credit Outstandings to not equal zero, or are not
fully collateralized in a manner reasonably satisfactory to the Issuing Bank and the Administrative Agent, and as long as the Commitments have not expired or terminated. 
  
 8.5 Binding Effect; Several Agreement; Assignments. Whenever in this Agreement any of the parties hereto is referred
to, such reference shall be deemed to include the successors and assigns of such party, and all covenants, promises and agreements by or on behalf of the Grantors that are contained in this Agreement shall bind and inure to the benefit of each
Grantor and its respective successors and assigns. This Agreement shall be binding upon each Grantor and the Collateral Agent and their respective successors and assigns, and shall inure to the benefit of each Grantor, the Collateral Agent and the
other Secured Parties and their respective successors and assigns, except that no Grantor shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such attempted assignment
or transfer shall be void) except as expressly permitted by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, waived or released
with respect to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder. 
  
 8.6 Collateral Agent’s Fees and Expenses; Indemnification. 
  
 (a) Without limiting any of their obligations under the Credit Agreement or the other Loan Documents, the
Grantors jointly and severally agree to pay all reasonable out-of-pocket expenses incurred by the Collateral Agent, including the reasonable fees, charges and disbursements of any counsel and any outside consultants for the Collateral Agent, in
connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from or other realization upon any of the Collateral, (iii) the exercise, enforcement or protection of any of
the Collateral Agent’s Rights and Remedies hereunder or (iv) the failure of any Grantor to perform or observe any of the provisions hereof. 
  
 (b) Without limiting any of their indemnification obligations under the Credit Agreement or the other Loan Documents, the Grantors shall
jointly and severally 

  

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indemnify each Secured Party and each Related Party of any Secured Party (each such Person being called an “Indemnitee”) against, and hold
each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising
out of, in connection with, or as a result of, (i) the execution or delivery or performance of this Agreement or any other Loan Document, the performance by any Grantor of its obligations under this Agreement or any other Loan Document, or the
consummation of the transactions contemplated by the Loan Documents or any other transactions contemplated hereby, or (ii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing or to the
Collateral, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent there is a specific finding
in a judicial proceeding before a court of competent jurisdiction notice and (in which the Indemnitee has had an opportunity to be heard) from which finding no further appeal is available that such losses, claims, damages, liabilities or related
expenses resulted from the gross negligence or willful misconduct of any Indemnitee or any Affiliate of an Indemnitee (or of any officer, director, employee, advisor or agent of such Indemnitee or any such Indemnitee’s Affiliates). In
connection with any indemnified claim hereunder, the Indemnitee shall be entitled to select its own counsel and the Grantors shall promptly pay the reasonable fees and expenses of such counsel. 
  
 (c) Any such amounts payable as provided hereunder shall be
additional Obligations secured hereby and by the other Security Documents. All amounts due under this Section 8.6 shall be payable promptly after written demand therefor. 
  
 8.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. 
  
 8.8 Waivers; Amendment. 
  
 (a) The rights, remedies, powers, privileges, and
discretions of the Collateral Agent hereunder (herein, the “Collateral Agent’s Rights and Remedies”) shall be cumulative and not exclusive of any rights or remedies which it would otherwise have. No delay or omission by the
Collateral Agent in exercising or enforcing any of the Collateral Agent’s Rights and Remedies shall operate as, or constitute, a waiver thereof. No waiver by the Collateral Agent of any Event of Default or of any Default under any other
agreement shall operate as a waiver of any other Event of Default or other Default hereunder or under any other agreement. No single or partial exercise of any of the Collateral Agent’s Rights or Remedies, and no express or implied agreement or
transaction of whatever nature entered into between the Collateral Agent and any Person, at any time, shall preclude the other or further exercise of the Collateral Agent’s Rights and Remedies. No waiver by the Collateral Agent of any of the
Collateral Agent’s Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent 

  

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occasion, nor shall it be deemed a continuing waiver. The Collateral Agent’s Rights and Remedies may be exercised at such time or times and in such
order of preference as the Collateral Agent may determine. The Collateral Agent’s Rights and Remedies may be exercised without resort or regard to any other source of satisfaction of the Obligations. No waiver of any provisions of this
Agreement or any other Loan Document or consent to any departure by any Grantor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on any Grantor in any case shall entitle such Grantor or any other Grantor to any other or further notice or demand in similar or other circumstances. 
  
 (b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to a written agreement entered into between the Collateral Agent and the Grantor or Grantors with respect to whom such waiver, amendment or modification is to apply, subject to any consent required in
accordance with Section 9.2 of the Credit Agreement. 
  
 8.9
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A JURY IN ANY TRIAL OF ANY CASE OR CONTROVERSY IN WHICH ANY PARTY HERETO IS OR BECOMES A PARTY (WHETHER SUCH CASE OR
CONTROVERSY IS INITIATED BY OR AGAINST ANY PARTY HERETO OR IN WHICH ANY PARTY HERETO IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT OF OR RELATES TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS SECTION 8.8(b). 
  
 8.10 Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 8.11 Counterparts. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart
of this Agreement. 
  

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 8.12 Headings. Article and Section headings used herein are for convenience of reference
only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 8.13 Jurisdiction; Consent to Service of Process. 
  
 (a) The Grantors agree that any suit for the enforcement of this Agreement or any other Loan Document may be brought in any New York state
or federal court sitting in New York County as the Collateral Agent may elect in its sole discretion and consent to the non-exclusive jurisdiction of such courts. The Grantors hereby waive any objection which they may now or hereafter have to the
venue of any such suit or any such court or that such suit is brought in an inconvenient forum. The Grantors agree that any action commenced by any Grantor asserting any claim or counterclaim arising under or in connection with this Agreement or any
other Loan Document shall be brought solely in any New York state or federal court sitting in New York County as the Collateral Agent may elect in its sole discretion and consent to the exclusive jurisdiction of such courts with respect to any such
action. 
  
 (b) Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices in Section 8.13. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner
permitted by law. 
  
 8.14 Joinder to Security Agreement.
As contemplated in the Credit Agreement, additional Subsidiaries may from time to time become parties hereto and additional Grantors hereunder by execution and delivery of a Joinder to Security Agreement. Such Joinder to Security Agreement shall be
effective upon delivery by such additional Grantor, without further action or consent or notice to any party hereto. Upon delivery of such Joinder to Security Agreement, all obligations of each Grantor hereunder shall be joint and several with the
obligations of each other Grantor hereunder. 
  
 8.15
Termination. This Agreement and the Security Interest (i) shall terminate when all the Obligations, other than contingent indemnification obligations as to which no claim has been made, have been paid in full, the Lenders have no further
commitment to lend under the Credit Agreement or to issue or participate in Letters of Credit and the Letter of Credit Outstandings has been reduced to zero or collateralized (at which time the Collateral Agent shall execute and deliver to the
Grantors, at the Grantors’ expense, all UCC termination statements and other documents which the Grantors shall reasonably request to evidence such termination and shall return to the Grantors any Collateral held by the Collateral Agent) and
(ii) shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment in respect of any Obligation is rescinded or must otherwise be restored by any Secured Party upon any bankruptcy or reorganization of any
Grantor or otherwise. 
  
 8.16 Upon any sale or other transfer or
disposition by any Grantor of any Collateral (other than to another Grantor) that is permitted under Section 6.05 of the Credit Agreement, the 

  

 -22- 

 
Security Interest in such Collateral shall be automatically released. In connection with such release, the Collateral Agent shall execute and deliver to any
Grantor, at such Grantor’s expense, all UCC termination statements and other documents that such Grantor shall reasonably request to evidence such termination or release, provided, however, such release shall not in any manner
discharge, affect, or impair the Obligations or any liens (other than those expressly being released) upon (or obligations of any Loan Party in respect of) all Collateral retained by any Loan Party including, without limitation, the proceeds of any
sale, all of which shall continue to constitute part of the Collateral. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 -23- 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement under seal as of the day and
year first above written. 
  

			
	GRANTORS:
	
	 BROOKSTONE, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE COMPANY, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 ADVANCED AUDIO CONCEPTS, LTD.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE HOLDINGS, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE PROPERTIES, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE PURCHASING, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary

  

 S/1 

			
	 BROOKSTONE RETAIL PUERTO RICO, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE STORES, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 GARDENERS EDEN, INC.

		
	 By:
	 	/s/ Philip W. Roizin
	 Name: 
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	COLLATERAL AGENT:
	
	 BANK OF AMERICA, N.A.

		
	By:	 	/s/ Daniel Platt
	 Name: 
	 	Daniel Platt
	 Title:
	 	Director

  

 S/2Intellectual Property Security  Agreement

 Exhibit 10.15 
  
 INTELLECTUAL PROPERTY SECURITY AGREEMENT 
  
 INTELLECTUAL PROPERTY SECURITY AGREEMENT (this “Agreement”) is made as of this 4 day of October, 2005, by
and among: 
  
 BROOKSTONE, INC., BROOKSTONE
COMPANY, INC., BROOKSTONE INTERNATIONAL HOLDINGS, INC., BROOKSTONE HOLDINGS, INC., BROOKSTONE PROPERTIES, INC., BROOKSTONE PURCHASING, INC., BROOKSTONE RETAIL PUERTO RICO, INC., BROOKSTONE STORES, INC., ADVANCED AUDIO CONCEPTS, LIMITED and GARDENERS
EDEN, INC. (hereinafter, each a “Grantor” and collectively the “Grantors”); and 
  
 BANK OF AMERICA, N.A., a national banking association, as collateral agent for the Secured Parties (as defined the Credit Agreement
defined below) (in such capacity, the “Collateral Agent”). 
  
 In consideration of the mutual covenants contained herein and benefits to be derived herefrom, the parties hereto agree as follows: 
  
 WITNESSETH: 
  
 Reference is made to (a) that certain Credit Agreement dated as of October 4, 2005 (as the same may be amended, modified, supplemented or
restated from time to time, the “Credit Agreement”) by and among (i) Brookstone Company, Inc., as Lead Borrower (together with the Borrowers named therein and such other Persons who become Borrowers pursuant to the terms and
conditions of the Credit Agreement collectively the “Borrowers”), (ii) Brookstone, Inc. and Advanced Audio Concepts, Limited as Facility Guarantors, (iii) the Lenders named therein (iv) Bank of America, N.A., as
Administrative Agent and Collateral Agent for the Lenders and Secured Parties, as Swingline Lender, and Issuing Bank and (v) Goldman Sachs Credit Partners L.P. as Documentation Agent, and (b) that certain Guaranty dated as of
October 4, 2005 (as the same may be amended, modified, supplemented or restated from time to time, the “Guaranty”) executed by the Facility Guarantors in favor of the Secured Parties. Capitalized terms used herein and not
defined herein shall have the meanings assigned to such terms in the Credit Agreement 
  
 Reference is also made to that certain Security Agreement dated as of October 4, 2005 (as the same may be amended, modified, supplemented or restated from time to time, the “Security Agreement”),
by and among others (i) the Borrowers and the Facility Guarantors, as Grantors, and (ii) Bank of America, N.A., as collateral agent for the Secured Parties, pursuant to which the Grantors have granted to the Collateral Agent, for the
benefit of the Secured Parties, a continuing security interest in and to the Collateral (as defined in the Security Agreement). 
  
 The Lenders have agreed to make Loans to the Borrowers, the Swingline Lender has agreed to make Swingline Loans, and the Issuing Bank has agreed to issue
Letters of Credit for the account of the Borrowers, pursuant to, and upon the terms and subject to the conditions 

  

 1 

 
specified in, the Credit Agreement, including a covenant requiring the execution and delivery by the Grantors of this Agreement to secure the Borrowers’
prompt payment and performance of the Obligations (as defined in the Credit Agreement) and the Facility Guarantors’ prompt payment and performance of the Guaranty Obligations (as defined in the Security Agreement) (the Obligations and the
Guaranty Obligations, collectively, the “Obligations”). 
  
 Accordingly, the Grantors and the Collateral Agent, on behalf of itself and each other Secured Party (and each of their respective successors and assigns) hereby agree as follows: 
  
 SECTION 1 Definitions 
  
 1.1 Generally. All references to the “UCC” shall mean the
Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if a term is defined in Article 9 of the UCC differently than in another Article thereof, the term shall have the meaning set
forth in Article 9, and provided further that if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of the security interest in any IP Collateral (as defined herein) or the availability
of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be. 
  
 1.2 Definition of Certain Terms Used Herein. Unless the context otherwise requires, all capitalized terms used but not defined herein shall have
the meanings set forth in the Credit Agreement. As used herein, the following terms shall have the following meanings: 
  
 (a) “Copyrights” shall mean all copyrights and like protections in each work of authorship or derivative work thereof of
each Grantor, whether registered or unregistered and whether published or unpublished, including, without limitation, the registered copyrights listed on Exhibit A annexed hereto and made a part hereof, together with all registrations and
recordings thereof and all applications in connection therewith. 
  
 (b) “Copyright Licenses” shall mean all written agreements providing for the grant by or to any Grantor of any right to use any Copyright, including, without limitation, the agreements listed on
Exhibit A annexed hereto and made a part hereof. 
  
 (c) “Copyright Office” shall mean the United States Copyright Office or any other federal governmental agency which may hereafter perform its functions. 
  
 (d) “Credit Agreement” shall have the
meaning assigned to such term in the preliminary statement of this Agreement. 
  
 (e) “Intellectual Property” shall have the meaning assigned to such term in section 3 hereof. 
  

 2 

 (f) “IP Collateral” shall have the meaning assigned to such term in
section 2 hereof. 
  
 (g)
“Licenses” shall mean, collectively, the Copyright Licenses, the Patent Licenses and the Trademark Licenses. 
  
 (h) “Necessary Intellectual Property” shall mean any and all Intellectual Property that is necessary for the conduct of
the business of the Grantors, taken as a whole, from time to time. 
  
 (i) “Obligations” has the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 (j) “Patents” shall mean all patents and applications for patents of each Grantor, and the inventions and improvements
therein disclosed, and any and all divisions, reissues and continuations of said patents including, without limitation the patents or patent applications listed on Exhibit B annexed hereto and made a part hereof, and all right, title and
interest thereto of each such Grantor, whether now owned or hereafter acquired. 
  
 (k) “Patent Licenses” shall mean all written agreements providing for the grant by or to any Grantor of any right to
manufacture, use or sell any invention covered by a Patent, including, without limitation, the agreements listed on Exhibit B annexed hereto and made a part hereof. 
  
 (l) “PTO” shall mean the United States Patent and Trademark Office or any other federal
governmental agency which may hereafter perform its functions. 
  
 (m) “Security Agreement” shall have the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 (n) “Trademarks” shall mean all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade dress, trade styles, service marks, designs, logos and other source or business identifiers of each Grantor, whether registered or unregistered, including, without limitation, the trademark
registrations and applications listed on Exhibit C annexed hereto and made a part hereof, together with all registrations and recordings thereof, all applications in connection therewith, and any goodwill of the business connected with, and
symbolized by, any of the foregoing. 
  
 (o)
“Trademark Licenses” shall mean all written agreements providing for the grant by or to any Grantor of any right to use any Trademark, including, without limitation, the agreements listed on Exhibit C annexed hereto and made
a part hereof. 
  

 3 

 1.3 Rules of Interpretation. The rules of interpretation specified in Section 1.02 of the
Credit Agreement shall be applicable to this Agreement. 
  
 SECTION 2
Security Interest 
  
 2.1 In furtherance and as
confirmation of the Security Interest (as defined in the Security Agreement) granted by the Grantors to the Collateral Agent (for the benefit of the Secured Parties) under the Security Agreement, and as further security for the payment or
performance, as the case may be, in full of the Obligations, each Grantor hereby ratifies such Security Interest and grants to the Collateral Agent (for the benefit of the Secured Parties) a continuing security interest, with a power of sale in
accordance with the Security Agreement (which power of sale shall be exercisable only during the continuance of an Event of Default), in all of the present and future right, title and interest of the Grantors in and to the following property, and
each item thereof, whether now owned or existing or hereafter acquired or arising, together with all products, proceeds, substitutions, and accessions of or to any of the following property (collectively, the “IP Collateral”):

  
 (a) All Copyrights and Copyright Licenses.

  
 (b) All Patents and Patent Licenses.

  
 (c) All Trademarks and Trademark Licenses.

  
 (d) All renewals of any of the foregoing.

  
 (e) All General Intangibles connected with
the use of, or related to, any and all Intellectual Property (including, without limitation, all goodwill of the Grantors and their business, products and services appurtenant to, associated with, or symbolized by, any and all Intellectual Property
and the use thereof). 
  
 (f) All income,
royalties, damages and payments now and hereafter due and/or payable under and with respect to any of the foregoing, including, without limitation, payments under all Licenses entered into in connection therewith and damages and payments for past or
future infringements or dilutions thereof. 
  
 (g) The right to sue for past, present and future infringements and dilutions of any of the foregoing. 
  
 (h) All of the Grantors’ rights corresponding to any of the foregoing throughout the world. 
  

 4 

 SECTION 3 Protection of Intellectual Property by Grantors 
  
 Except as set forth below in this Section 3, the Grantors shall
undertake the following with respect to each of the items respectively described in Sections 2(a), (b), (c), (d) and (e) (collectively, the “Intellectual Property”): 
  
 3.1 Except in each case as otherwise permitted in the Credit Agreement, pay
all renewal fees and other fees and costs associated with maintaining the Necessary Intellectual Property and with the processing of Necessary Intellectual Property and take all other reasonable and necessary steps to maintain each registration of
the Necessary Intellectual Property in the United States. 
  
 3.2
Except as otherwise permitted under the Credit Agreement, take all actions reasonably necessary to prevent any of the Necessary Intellectual Property from becoming forfeited, abandoned, dedicated to the public, invalidated or impaired in any way.

  
 3.3 At the Grantors’ sole cost, expense, and risk, pursue
the prompt, diligent processing of each application for registration of Necessary Intellectual Property and not abandon or delay any such efforts. 
  
 3.4 At the Grantors’ sole cost, expense, and risk, take any and all Necessary action which the Grantors reasonably deem appropriate under the
circumstances to protect the Necessary Intellectual Property from infringement, misappropriation or dilution, including, without limitation, the prosecution and defense of infringement actions. 
  
 Notwithstanding the foregoing, so long as no Event of Default has occurred
and is continuing, and no Material Adverse Effect would result therefrom, no Grantor shall have an obligation to use or to maintain any Intellectual Property (i) that relates solely to any product that has been discontinued, abandoned or
terminated, or (ii) that has been replaced with Intellectual Property substantially similar to the Intellectual Property that may be abandoned or otherwise become invalid, so long as the failure to use or maintain such Intellectual Property
does not materially adversely affect the validity of such replacement Intellectual Property and so long as such replacement Intellectual Property is subject to the lien created by this Agreement. 
  
 SECTION 4 Grantors’ Representations and Warranties 
  
 The Grantors represent and warrant that: 
  
 4.1 Exhibit A is a true, correct and complete list of all registered
Copyrights and material Copyright Licenses owned by the Grantors as of the date hereof. 
  
 4.2 Exhibit B is a true, correct and complete list of all registered or applied for Patents, and material Patent Licenses owned by the Grantors as of the date hereof. 
  

 5 

 4.3 Exhibit C is a true, correct and complete list of all registered or applied for Trademarks and
material Trademark Licenses owned by the Grantors as of the date hereof. 
  
 4.4 Except as set forth in Exhibits A, B and C, none of the Intellectual Property set forth on such exhibits is the subject of any licensing or franchise agreement pursuant to which any Grantor is the licensor or
franchisor as of the date hereof. 
  
 4.5 All IP Collateral is,
and shall remain, free and clear of all Liens, encumbrances, or security interests in favor of any Person, other than Permitted Encumbrances and Liens in favor of the Collateral Agent. 
  
 4.6 Each Grantor owns or is licensed to use, all trademarks, trade names, copyrights, patents and other intellectual
property material to its business, except for those which the failure to own or license could not reasonably be expected to result in a Material Adverse Effect, and the use thereof by the Grantor does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. To the knowledge of the Grantors, the use by the Grantors of the Intellectual Property does
not infringe the rights of any Person, except for such infringements that would not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Grantors, no holding, decision or judgment has been rendered by any Governmental
Authority which would limit or cancel any Grantor’s rights in, any Intellectual Property in any respect that could reasonably be expected to have a Material Adverse Effect. 
  
 4.7 The Grantors shall give the Collateral Agent written notice (with reasonable detail) concurrently with the delivery of
its financial statements under Sections 5.01(a) and (b) following the occurrence of any of the following: 
  
 (a) The Grantors’ obtaining the registration of or filing applications for registration of, any new Intellectual Property, or
otherwise acquiring ownership of any newly registered Intellectual Property (other than the Grantors’ right to sell products containing the trademarks of others in the ordinary course of the Grantors’ business). 
  
 (b) The Grantors’ becoming entitled to the benefit of
any registered Intellectual Property whether as licensee or licensor (other than the Grantors’ right to sell products containing the trademarks of others in the ordinary course of the Grantors’ business). 
  
 (c) The Grantors’ knowing that any application or
registration relating to any Necessary Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or
development in, any opposition or cancellation proceeding in the PTO, the Copyright Office or any court or tribunal against Grantors) regarding the Grantors’ ownership of, or the validity of, any Necessary Intellectual Property or the
Grantors’ right to register the same or to own and maintain the same. 
  

 6 

 SECTION 5 Agreement Applies to Future Intellectual Property 
  
 5.1 The provisions of this Agreement shall automatically apply to any such
additional property or rights described in Section 4.7, above, all of which shall be deemed to be and treated as “Intellectual Property” within the meaning of this Agreement. Such Grantor shall deliver an updated Exhibit A, B, and/or
C, as applicable, to this Agreement to the Collateral Agent together with any notices given under Section 4.7(a) and hereby authorizes the Collateral Agent to file, at such Grantor’s expense, such updated Exhibit as set forth in
Section 5.2. 
  
 5.2 Upon the reasonable request of the
Collateral Agent, the Grantors shall execute and deliver, and record or have recorded, any and all agreements, instruments, documents and papers as the Collateral Agent may request to evidence the Collateral Agent’s security interest in any
Copyright, Patent or Trademark owned by such Grantor (including, without limitation, filings with the PTO, The Copyright Office or any similar office), and the Grantors hereby constitute the Collateral Agent as their attorney-in-fact to execute and
file all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; provided, however, the Collateral Agent’s taking of such action shall not be a condition to the creation or perfection of
the security interest created hereby. 
  
 SECTION 6 Grantors’
Right to Enforce Intellectual Property 
  
 The Grantors
shall have the exclusive right to sue for past, present and future infringement of the Intellectual Property including the right to seek injunctions and/or money damages, in an effort by the Grantors to protect the Intellectual Property against
encroachment by third parties, provided, however, during the continuance of any Event of Default, the Collateral Agent, by notice to the Grantors (i) may terminate or limit the Grantors’ rights under this section 6; and
(ii) may (but shall not be required to) itself take such action in the name of the Grantors. 
  
 SECTION 7 Collateral Agent’s Actions To Protect Intellectual Property 
  
 In the event of: 
  
 (a) the occurrence and continuance of any Event of Default, 
  
 the Collateral Agent, acting in its own name or in that of the Grantors, may (but shall not be required to) act in the Grantors’ place
and stead and/or in the Collateral Agent’s own right in connection therewith. 
  
 SECTION 8 Rights Upon Default 
  
 Upon the occurrence and during the continuance of any Event of Default, in addition to all other rights and remedies of the Collateral Agent set forth in the other Loan Documents, the Collateral Agent shall be entitled to exercise all
rights and remedies of a secured party under the Uniform Commercial Code as adopted in the State of New York, with respect to the Intellectual 

  

 7 

 
Property, in addition to which the Collateral Agent may sell, license, assign, transfer, or otherwise dispose of the Intellectual Property in any manner, in
whole or in part, as the Collateral Agent may determine from time to time in its discretion. Any person may conclusively rely upon an affidavit of an officer of the Collateral Agent that an Event of Default has occurred and is continuing and that
the Collateral Agent is authorized to exercise such rights and remedies. 
  
 SECTION 9 Collateral Agent At Attorney In Fact 
  
 9.1 The Grantors hereby irrevocably constitute and designate the Collateral Agent, and any officer or agent of the Collateral Agent as the Collateral Agent may select in its sole discretion, as and for the
Grantors’ attorney in fact, with full power of substitution and with the power to endorse each such Grantor’s name, effective following the occurrence and during the continuance of an Event of Default: 
  
 (a) To exercise any of the rights and powers of the
Collateral Agent referenced herein. 
  
 (b) To
execute all such instruments, documents, and papers as the Collateral Agent determines to be appropriate in connection with the exercise of such rights and remedies and to cause the sale, license, assignment, transfer, or other disposition of the
Intellectual Property. 
  
 9.2 The power of attorney granted
herein, being coupled with an interest, shall be irrevocable until this Agreement is terminated in writing by a duly authorized officer of the Collateral Agent. 
  

9.3 The Collateral Agent shall not be obligated to do any of the acts or to exercise any of the powers authorized by Section 9.1, but if the
Collateral Agent elects to do any such act or to exercise any of such powers, it shall not be accountable for more than it actually receives as a result of such exercise of power, and shall not be responsible to any Grantor for any act or omission
to act except for any act or omission to act as to which there is a final determination made in a judicial proceeding (in which proceeding the Collateral Agent has had an opportunity to be heard) which determination includes a specific finding that
the subject act or omission to act had been grossly negligent or constituted willful misconduct. 
  
 SECTION 10 Collateral Agent’s Rights 
  
 Any use by the Collateral Agent of the Intellectual Property, as authorized hereunder in connection with the exercise of the Collateral Agent’s
rights and remedies under this Agreement and under the Credit Agreement during the continuance of an Event of Default, shall be coextensive with the Grantors’ rights thereunder and with respect thereto and without any liability for royalties or
other related charges. 
  

 8 

 SECTION 11 Intent 
  
 This Agreement is being executed and delivered by the Grantors for the purpose of registering the grant of the security
interest of the Collateral Agent in the IP Collateral with the PTO and the Copyright Office. It is intended that the security interest granted pursuant to this Agreement is granted as a supplement to, and not in limitation of, the Security Interest
(as defined in the Security Agreement) granted to the Collateral Agent, for the benefit of the Secured Parties, under the Security Agreement. All provisions of the Security Agreement shall apply to the IP Collateral. The Collateral Agent shall have
the same rights, remedies, powers, privileges and discretions with respect to the security interests created in the IP Collateral as in all other Collateral. In the event of a conflict between this Agreement and the Security Agreement, the terms of
this Agreement shall control with respect to the IP Collateral and the Security Agreement with respect to all other Collateral. 
  
 SECTION 12 Further Assurances 
  
 Grantors will execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the
filing and recording of financing statements and other documents), that may be required under any Applicable Law, or which the Collateral Agent may reasonably request, to grant, preserve, protect or perfect the Lien created or intended to be created
hereby or the validity or priority of such Lien, all at the expense of Grantors. Each Grantor also agrees to provide to the Collateral Agent, from time to time upon request, evidence reasonably satisfactory to the Collateral Agent as to the
perfection and priority of the Lien created or intended to be created hereby. 
  
 SECTION 13 Governing Law 
  
 THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE ON NEW YORK. 
  
 SECTION 14 Termination 
  
 14.1 This Agreement and the Security Interest (i) shall terminate when all the Obligations, other than contingent indemnification obligations as to which no claim has been made, have been paid in full, the
Lenders have no further commitment to lend under the Credit Agreement or to issue or participate in Letters of Credit and the Letter of Credit Outstandings has been reduced to zero or collateralized (at which time the Collateral Agent shall execute
and deliver to the Grantors, at the Grantors’ expense, all UCC termination statements and other documents which the Grantors shall reasonably request to evidence such termination and shall return to the Grantors any Collateral held by the
Collateral Agent) and (ii) shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment in respect of any Obligation is rescinded or must otherwise be restored by any Secured Party upon any bankruptcy or
reorganization of any Grantor or otherwise. 
  
 14.2 Upon any sale
or other transfer or disposition by any Grantor of any IP Collateral (other than to another Grantor) that is permitted under Section 6.05 of the Credit Agreement, the security interest granted hereunder in favor of the Collateral Agent in such
IP Collateral shall be 

  

 9 

 
automatically released. In connection with such release, the Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all
UCC termination statements and other documents that such Grantor shall reasonably request to evidence such termination or release, provided, however, such release shall not in any manner discharge, affect, or impair the Obligations or
any liens (other than those expressly being released) upon (or obligations of any Loan Party in respect of) all IP Collateral retained by any Loan Party including, without limitation, the proceeds of any sale, all of which shall continue to
constitute part of the Collateral. 
  
 [SIGNATURE PAGES
FOLLOW] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement under seal as of the day and
year first above written. 
  

			
	GRANTORS:
	
	BROOKSTONE, INC.
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	BROOKSTONE COMPANY, INC.,
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	BROOKSTONE INTERNATIONAL HOLDINGS INC.,
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	BROOKSTONE HOLDINGS, INC.,
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	BROOKSTONE PROPERTIES, INC.,
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	BROOKSTONE PURCHASING, INC.,
		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary

  

 S/1 

			
	
	 BROOKSTONE RETAIL PUERTO RICO, INC.,

		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 BROOKSTONE STORES, INC.,

		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 GARDENERS EDEN, INC.,

		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	 ADVANCED AUDIO CONCEPTS, LIMITED

		
	 By:
	 	/s/ Philip W. Roizin
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President, Treasurer and Secretary
	
	COLLATERAL AGENT:
	
	 BANK OF AMERICA, N.A.

		
	 By:
	 	/s/ Daniel Platt
	 Name:
	 	Daniel Platt
	 Title:
	 	Director

  

 S/2 

  
 EXHIBIT A

  
 List of Copyrights and Copyright Licenses

  
 Copyright Registrations and Applications 

 

							
	 Title

	 	 Serial No.

	 	 Registration No.

	 	 Registration Date

  
 Copyright Licenses

  

 E/1 

  
 EXHIBIT B

  
 List of Patents and Patent Licenses 

 
 Patents and Patent Applications 
  

									
	 Applicant

	 	 Title

	 	 Serial No.

	 	 Patent No.

	 	 Date of Filing

  
 Patent Licenses

  

 E/2 

  
 EXHIBIT C

  
 List of Trademarks and Trademark Licenses

  
 Trademark Registrations and Applications 

 

									
	 Registered Owner
of Trademark or
Servicemark

	 	 Trademark or
 Servicemark

	 	 Country

	 	 Reg./App.
Number

	 	 Reg./App.
Date

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 Trademark Licenses

  

 E/3

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