Document:

Amended and Restated Guaranty and Security Agreement, dated February 16, 2012

 Exhibit 10.4 
 EXECUTION VERSION 
 AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT

 Dated as of February 16, 2012 
 by 
 THE TALBOTS, INC., 

THE TALBOTS GROUP, LIMITED PARTNERSHIP, 
 and 
 TALBOTS CLASSICS FINANCE COMPANY, INC., 

as the Borrowers, 

and 
 EACH
OTHER GRANTOR 
 FROM TIME TO TIME PARTY HERETO 

in favor of 

GENERAL ELECTRIC CAPITAL CORPORATION, 
 as Agent 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	ARTICLE I	  	 DEFINED TERMS
	  	 	2	  
			
	 Section 1.1
	  	 Definitions
	  	 	2	  
			
	 Section 1.2
	  	 Certain Other Terms
	  	 	6	  
			
	ARTICLE II	  	 GUARANTY
	  	 	6	  
			
	 Section 2.1
	  	 Guaranty
	  	 	6	  
			
	 Section 2.2
	  	 Limitation of Guaranty
	  	 	6	  
			
	 Section 2.3
	  	 Contribution
	  	 	6	  
			
	 Section 2.4
	  	 Authorization; Other Agreements
	  	 	6	  
			
	 Section 2.5
	  	 Guaranty Absolute and Unconditional
	  	 	7	  
			
	 Section 2.6
	  	 Waivers
	  	 	8	  
			
	 Section 2.7
	  	 Reliance
	  	 	8	  
			
	 Section 2.8
	  	 Subordination
	  	 	9	  
			
	 Section 2.9
	  	 Funds Transfers
	  	 	9	  
			
	 Section 2.10
	  	 No Discharge or Diminishment of Guaranty
	  	 	9	  
			
	ARTICLE III	  	 GRANT OF SECURITY INTEREST
	  	 	9	  
			
	 Section 3.1
	  	 Collateral
	  	 	9	  
			
	 Section 3.2
	  	 Grant of Security Interest in Collateral
	  	 	10	  
			
	ARTICLE IV	  	 REPRESENTATIONS AND WARRANTIES
	  	 	11	  
			
	 Section 4.1
	  	 Title; No Other Liens
	  	 	11	  
			
	 Section 4.2
	  	 Perfection and Priority
	  	 	11	  
			
	 Section 4.3
	  	 Pledged Collateral
	  	 	12	  
			
	 Section 4.4
	  	 Instruments and Tangible Chattel Paper Formerly Accounts
	  	 	12	  
			
	 Section 4.5
	  	 Intellectual Property
	  	 	13	  
			
	 Section 4.6
	  	 Commercial Tort Claims
	  	 	13	  
			
	 Section 4.7
	  	 Specific Collateral
	  	 	13	  
			
	 Section 4.8
	  	 Enforcement
	  	 	13	  
			
	 Section 4.9
	  	 Representations and Warranties of the Credit Agreement
	  	 	13	  
			
	 Section 4.10
	  	 Perfection Certificate
	  	 	13	  
			
	 Section 4.11
	  	 Canadian Assets
	  	 	14	  
			
	ARTICLE V	  	 COVENANTS
	  	 	14	  
			
	 Section 5.1
	  	 Maintenance of Perfected Security Interest; Further Documentation and Consents
	  	 	14	  

 TABLE OF CONTENTS 

(continued) 
  

 

							
	 	  	 	  	Page	 
			
	 Section 5.2
	  	 Pledged Collateral
	  	 	15	  
			
	 Section 5.3
	  	 Accounts
	  	 	15	  
			
	 Section 5.4
	  	 Commodity Contracts
	  	 	16	  
			
	 Section 5.5
	  	 Delivery of Instruments and Tangible Chattel Paper and Control of Investment Property, Letter-of-Credit Rights and Electronic
Chattel Paper
	  	 	16	  
			
	 Section 5.6
	  	 Intellectual Property
	  	 	16	  
			
	 Section 5.7
	  	 Notices
	  	 	17	  
			
	 Section 5.8
	  	 Notice of Commercial Tort Claims
	  	 	17	  
			
	 Section 5.9
	  	 Controlled Securities Account
	  	 	18	  
			
	 Section 5.10
	  	 Deposit Accounts
	  	 	18	  
			
	 Section 5.11
	  	 Collateral in the Possession of a Bailee
	  	 	18	  
			
	 Section 5.12
	  	 Changes in Location, Name, Etc
	  	 	18	  
			
	ARTICLE VI	  	 REMEDIAL PROVISIONS
	  	 	19	  
			
	 Section 6.1
	  	 Code and Other Remedies
	  	 	19	  
			
	 Section 6.2
	  	 Accounts and Payments in Respect of General Intangibles
	  	 	22	  
			
	 Section 6.3
	  	 Pledged Collateral
	  	 	23	  
			
	 Section 6.4
	  	 Proceeds to be Turned over to and Held by Agent
	  	 	24	  
			
	 Section 6.5
	  	 Sale of Pledged Collateral
	  	 	24	  
			
	 Section 6.6
	  	 Deficiency
	  	 	24	  
			
	ARTICLE VII	  	 AGENT
	  	 	25	  
			
	 Section 7.1
	  	 Agent’s Appointment as Attorney-in-Fact
	  	 	25	  
			
	 Section 7.2
	  	 Authorization to File Financing Statements
	  	 	26	  
			
	 Section 7.3
	  	 Authority of Agent
	  	 	26	  
			
	 Section 7.4
	  	 Duty; Obligations and Liabilities
	  	 	27	  
			
	ARTICLE VIII	  	 MISCELLANEOUS
	  	 	27	  
			
	 Section 8.1
	  	 Reinstatement
	  	 	27	  
			
	 Section 8.2
	  	 Release of Collateral
	  	 	28	  
			
	 Section 8.3
	  	 Independent Obligations
	  	 	28	  
			
	 Section 8.4
	  	 No Waiver by Course of Conduct
	  	 	28	  
			
	 Section 8.5
	  	 Amendments in Writing
	  	 	29	  
			
	 Section 8.6
	  	 Additional Grantors; Additional Pledged Collateral
	  	 	29	  
			
	 Section 8.7
	  	 Private Label Credit Card Access and Monitoring Agreement
	  	 	29	  

 TABLE OF CONTENTS 

(continued) 
  

 

							
	 	  	 	  	Page	 
			
	 Section 8.8
	  	 Marshaling
	  	 	29	  
			
	 Section 8.9
	  	 Notices
	  	 	29	  
			
	 Section 8.10
	  	 Successors and Assigns
	  	 	30	  
			
	 Section 8.11
	  	 Counterparts
	  	 	30	  
			
	 Section 8.12
	  	 Severability
	  	 	30	  
			
	 Section 8.13
	  	 Governing Law
	  	 	30	  
			
	 Section 8.14
	  	 Waiver of Jury Trial
	  	 	30	  
			
	 Section 8.15
	  	 TCNB Pledged Stock
	  	 	30	  
			
	 Section 8.16
	  	 Intercreditor Agreement
	  	 	31	  
			
	 Section 8.17
	  	 Unlimited Companies
	  	 	31	  
			
	 Section 8.18
	  	 Amendment and Restatement
	  	 	32	  

 ANNEXES AND SCHEDULES 

 

			
	Annex 1	  	Form of Pledge Amendment
	Annex 2	  	Form of Joinder Agreement
	Annex 3	  	Form of Intellectual Property Security Agreement
		
	Schedule 1	  	Commercial Tort Claims
	Schedule 2	  	Filings
	Schedule 3	  	Pledged Collateral

 AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT, dated as of February 16,
2012, by THE TALBOTS, INC., a Delaware corporation (the “Company”), THE TALBOTS GROUP, LIMITED PARTNERSHIP, a Massachusetts limited partnership (the “Talbots Group”), TALBOTS CLASSICS FINANCE
COMPANY, INC., a Delaware corporation (“Talbots Finance” and, together with the Company and the Talbots Group, collectively, the “Borrowers”) and each of the other entities listed on the signature pages hereof
or that becomes a party hereto pursuant to Section 8.6 (together with the Borrowers, the “Grantors”), in favor of General Electric Capital Corporation (“GE Capital”), as administrative agent (in such capacity,
together with its successors and permitted assigns, “Agent”) for the Lenders and each other Secured Party (each as defined in the Credit Agreement referred to below). 

W I T N E S S E T H: 
 WHEREAS, pursuant to that certain Credit Agreement dated as of April 7, 2010 (the “Original Credit Agreement”) between, among others, the Borrowers, the Company as Borrower
Representative, the other Persons party thereto that are designated as “Credit Parties”, the financial institutions party thereto from time to time (collectively, the “Lenders”) and GE Capital, as Agent, the Lenders
severally agreed to make extensions of credit to the Borrowers upon the terms and subject to the conditions set forth therein; 

WHEREAS, pursuant to that certain Guaranty and Security Agreement dated as of April 7, 2010 (the “Original Guaranty
and Security Agreement”) between, among others, the Borrowers, each other Grantor (as defined therein), and Agent, each Grantor guaranteed the Obligations (as defined in the Original Credit Agreement) and granted a security interest in its
Collateral (as defined in the Original Guaranty and Security Agreement) to Agent, for itself and the other Lenders; 

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement dated as of the date hereof (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) between, among others, the Borrowers, the Company, as Borrower Representative, the other Credit Parties party thereto, the Lenders and GE
Capital, as Agent, the parties thereto agreed to amend and restate the Original Credit Agreement and the Original Guaranty and Security Agreement; 
 WHEREAS, each Grantor has agreed to guaranty the Obligations (as defined in the Credit Agreement) of each Borrower; 
 WHEREAS, each Grantor will derive substantial direct and indirect benefits from the continued making of the extensions of credit under the Credit Agreement; 

WHEREAS, it is a condition precedent to the obligation of the Lenders to continue making their respective extensions of credit to
the Borrowers under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to Agent; and 

WHEREAS, the Term Loan B Intercreditor Agreement governs the relative rights and priorities of the Secured Parties and the Term
Loan B Lenders in respect of the ABL Priority Collateral and the Term Priority Collateral (as such terms are defined in the Term Loan B Intercreditor Agreement) respectively, and with respect to certain other matters as described therein.

 NOW, THEREFORE, in consideration of the premises and to induce the Lenders and Agent
to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrowers thereunder, each Grantor hereby agrees with Agent as follows: 

ARTICLE I 

DEFINED TERMS 
 Section 1.1 Definitions. (a) Capitalized terms used herein (including the preamble and introductory paragraphs hereto) without definition are used as defined in the Credit
Agreement. 
 (b) The following terms have the meanings given to them in the UCC and terms used herein without definition that
are defined in the UCC have the meanings given to them in the UCC (such meanings to be equally applicable to both the singular and plural forms of the terms defined): “account”, “account debtor”,
“as-extracted collateral”, “certificated security”, “chattel paper”, “commercial tort claim”, “commodity contract”, “deposit account”,
“electronic chattel paper”, “equipment”, “farm products”, “fixture”, “general intangible”, “goods”, “health-care-insurance
receivable”, “instruments”, “inventory”, “investment property”, “letter-of-credit right”, “proceeds”, “record”, “securities
account”, “security”, “supporting obligation” and “tangible chattel paper”. 
 (c) The following terms shall have the following meanings: 

“Agreement” means this Guaranty and Security Agreement. 

“Applicable IP Office” means the United States Patent and Trademark Office, the United States Copyright Office, the
Canadian Intellectual Property Office, or any similar office or agency within or outside the United States. 
 “Cash
Collateral Account” means a deposit account or securities account subject, in each instance, to a Control Agreement. 

“Collateral” has the meaning specified in Section 3.1. 

“Controlled Securities Account” means each securities account (including all financial assets held therein and all
certificates and instruments, if any, representing or evidencing such financial assets) that is the subject of an effective Control Agreement. 
 “Excluded Equity” means any voting stock in excess of 65% of the outstanding voting stock of any Foreign Subsidiary, which, pursuant to the terms of the Credit Agreement, is not required
to guaranty the Obligations. For the purposes of this definition, “voting stock” means, with respect to any issuer, the issued and outstanding shares of each class of Stock of such issuer entitled to vote (within the meaning of
Treasury Regulations § 1.956-2(c)(2)). For the avoidance of doubt, the term “Excluded Equity” shall not include any voting or other equity interests in Talbots (Canada) Corporation. 

  
 2 

 “Excluded Property” means, collectively, (i) Excluded Equity,
(ii) any permit or license or any Contractual Obligation entered into by any Grantor (A) that prohibits or requires the consent of any Person other than a Borrower and its Affiliates which has not been obtained as a condition to the
creation by such Grantor of a Lien on any right, title or interest in such permit, license or Contractual Obligation or any Stock or Stock Equivalent related thereto or (B) to the extent that any Requirement of Law applicable thereto prohibits
the creation of a Lien thereon, but only, with respect to the prohibition in (A) and (B), to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other
Requirement of Law, (iii) Property owned by any Grantor that is subject to a purchase money Lien or a Capital Lease permitted under the Credit Agreement if the Contractual Obligation pursuant to which such Lien is granted (or in the document
providing for such Capital Lease) prohibits or requires the consent of any Person other than a Borrower and its Affiliates which has not been obtained as a condition to the creation of any other Lien on such equipment, and (iv) any “intent
to use” Trademark applications for which a statement of use has not been filed (but only until such statement is filed); provided, however, “Excluded Property” shall not include any proceeds, products,
substitutions or replacements of Excluded Property (unless such proceeds, products, substitutions or replacements would otherwise constitute Excluded Property). 
 “Guaranteed Obligations” has the meaning set forth in Section 2.1. 
 “Guarantor” means each Grantor, including each Borrower with respect to the obligations of each other Borrower. 
 “Guaranty” means the guaranty of the Guaranteed Obligations made by the Guarantors as set forth in this Agreement. 

“Internet Domain Name” means all right, title and interest (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to internet domain names, whether or not trademarks, registered in any generic top level domain by any authorized private registrar or governmental authority. 

“Material Intellectual Property” means Intellectual Property that is owned by or licensed to a Grantor and is either
(a) material to the conduct of any Grantor’s business or (b) has more than a de minimis value. 

“Perfection Certificate” shall mean that certain perfection certificate dated as of the Restatement Effective Date,
executed and delivered by each Grantor existing as of the date hereof in favor of the Agent for the benefit of the Secured Parties, and each other Perfection Certificate (which shall be in form and substance reasonably acceptable to the Agent)
executed and delivered by the applicable Credit Parties in favor of the Agent for the benefit of the Secured Parties contemporaneously with the execution and delivery of a joinder agreement executed in accordance with Section 8.6 hereof,
in each case, as the same may be amended, amended and restated, restated, supplemented or otherwise modified from time to time in accordance with the Credit Agreement. 

  
 3 

 “Pledged Certificated Stock” means all certificated securities and any
other Stock or Stock Equivalent of any Person evidenced by a certificate, instrument or other similar document of title (as defined in the UCC), in each case owned by any Grantor, and any distribution of property made on, in respect of or in
exchange for the foregoing from time to time, including all Stock and Stock Equivalents listed on Schedule 3. Pledged Certificated Stock excludes any Excluded Property and any Cash Equivalents that are not held in Controlled Securities
Accounts to the extent permitted by Section 5.9 hereof. 
 “Pledged Collateral” means,
collectively, the Pledged Stock and the Pledged Debt Instruments. 
 “Pledged Debt Instruments” means all
right, title and interest of any Grantor in instruments evidencing any Indebtedness owed to such Grantor or other obligations owed to such Grantor, and any distribution of property made on, in respect of or in exchange for the foregoing from time to
time, including all Indebtedness described on Schedule 3, issued by the obligors named therein. Pledged Debt Instruments excludes any Cash Equivalents that are not held in Controlled Securities Accounts to the extent permitted by
Section 5.9 hereof. 
 “Pledged Investment Property” means any investment property of any Grantor,
and any distribution of property made on, in respect of or in exchange for the foregoing from time to time, other than any Pledged Stock or Pledged Debt Instruments. Pledged Investment Property excludes any Cash Equivalents that are not held in
Controlled Securities Accounts to the extent permitted by Section 5.9 hereof. 
 “Pledged Stock”
means all Pledged Certificated Stock and all Pledged Uncertificated Stock. 
 “Pledged ULC Shares” has the
meaning given to it in Section 8.17 hereof. 
 “Pledged Uncertificated Stock” means any Stock or
Stock Equivalent of any Person that is not Pledged Certificated Stock, including all right, title and interest of any Grantor as a limited or general partner in any partnership not constituting Pledged Certificated Stock or as a member of any
limited liability company, all right, title and interest of any Grantor in, to and under any Organization Document of any partnership or limited liability company to which it is a party, and any distribution of property made on, in respect of or in
exchange for the foregoing from time to time, including in each case those interests set forth on Schedule 3, to the extent such interests are not certificated. Pledged Uncertificated Stock excludes any Excluded Property and any Cash
Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 5.9 hereof. 

“Software” means (a) all computer programs, including source code and object code versions, (b) all data,
databases and compilations of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing. 

“UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York; provided,
however, that in the event that, by reason of mandatory provisions of any applicable Requirement of Law, any of the attachment, perfection or priority of Agent’s 

  
 4 

 
or any other Secured Party’s security interest in any Collateral is governed by the Uniform Commercial Code of a jurisdiction other than the State of New York, “UCC” shall
mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of the definitions related to or otherwise used in such provisions.

 “ULC” has the meaning given to it in Section 8.17 hereof. 

Section 1.2 Certain Other Terms. 
 (a) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. References herein to an Annex, Schedule, Article, Section or clause refer to
the appropriate Annex or Schedule to, or Article, Section or clause in this Agreement. Where the context requires, provisions relating to any Collateral when used in relation to a Grantor shall refer to such Grantor’s Collateral or any relevant
part thereof. 
 (b) Other Interpretive Provisions. 

(i) Defined Terms. Unless otherwise specified herein or therein, all terms defined in this Agreement shall have the
defined meanings when used in any certificate or other document made or delivered pursuant hereto. 
 (ii) The
Agreement. The words “hereof”, “herein”, “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 (iii) Certain Common Terms. The term “including” is not limiting and means “including
without limitation.” 
 (iv) Performance; Time. Whenever any performance obligation hereunder (other
than a payment obligation) shall be stated to be due or required to be satisfied on a day other than a Business Day, such performance shall be made or satisfied on the next succeeding Business Day. In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means “to and
including.” If any provision of this Agreement refers to any action taken or to be taken by any Person, or which such Person is prohibited from taking, such provision shall be interpreted to encompass any and all means, direct or indirect, of
taking, or not taking, such action. 
 (v) Contracts. Unless otherwise expressly provided herein,
references to agreements and other contractual instruments, including this Agreement and the other Loan Documents, shall be deemed to include all subsequent amendments, thereto, restatements and substitutions thereof and other modifications and
supplements thereto which are in effect from time to time, but only to the extent such amendments and other modifications are not prohibited by the terms of any Loan Document. 

  
 5 

 (vi) Laws. References to any statute or regulation are to be
construed as including all statutory and regulatory provisions related thereto or consolidating, amending, replacing, supplementing or interpreting the statute or regulation. 
 ARTICLE II 
 GUARANTY 

Section 2.1 Guaranty. To induce the Lenders to make the Loans and each other Secured Party to make credit available to
or for the benefit of one or more Grantors, each Guarantor hereby, jointly and severally, absolutely, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, the full and punctual payment when due (whether at stated
maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise in accordance with any Loan Document) and performance by the Borrowers of all the Obligations of each Borrower whether existing on the date hereof or hereinafter
incurred or created (the “Guaranteed Obligations”). This Guaranty by each Guarantor hereunder constitutes a guaranty of payment and not of collection. 
 Section 2.2 Limitation of Guaranty. Any term or provision of this Guaranty or any other Loan Document to the contrary notwithstanding, the maximum aggregate amount for which any
Guarantor shall be liable hereunder shall not exceed the maximum amount for which such Guarantor can be liable without rendering this Guaranty or any other Loan Document, as it relates to such Guarantor, subject to avoidance under applicable
Requirements of Law relating to fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act and Section 548 of title 11 of the United States Code or any applicable
provisions of comparable Requirements of Law) (collectively, “Fraudulent Transfer Laws”). Any analysis of the provisions of this Guaranty for purposes of Fraudulent Transfer Laws shall take into account the right of contribution
established in Section 2.3 and, for purposes of such analysis, give effect to any discharge of intercompany debt as a result of any payment made under this Guaranty. 

Section 2.3 Contribution. To the extent that any Guarantor shall be required hereunder to pay any portion of any
Guaranteed Obligation exceeding the greater of (a) the amount of the value actually received by such Guarantor and its Subsidiaries from the Loans and other Obligations and (b) the amount such Guarantor would otherwise have paid if such
Guarantor had paid the aggregate amount of the Guaranteed Obligations (excluding the amount thereof repaid by a Borrower that received the benefit of the funds advanced that constituted Guaranteed Obligations) in the same proportion as such
Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth of all the Guarantors on such date, then such Guarantor shall be reimbursed by such other Guarantors for the amount of such excess, pro rata,
based on the respective net worth of such other Guarantors on such date. 
 Section 2.4 Authorization; Other
Agreements. The Agent, on behalf of itself and each other Secured Party, is hereby authorized, without notice to or demand upon any Guarantor and without discharging or otherwise affecting the obligations of any Guarantor hereunder and without
incurring any liability hereunder, from time to time, to do each of the following: 

  
 6 

 (a) (i) subject to compliance, if applicable, with Section 9.1 of the Credit Agreement,
modify, amend, supplement or otherwise change, (ii) accelerate or otherwise change the time of payment, or (iii) waive or otherwise consent to noncompliance with, any Guaranteed Obligation or any Loan Document; 

(b) apply to the Guaranteed Obligations any sums by whomever paid or however realized to any Guaranteed Obligation in such order as
provided in the Loan Documents; 
 (c) refund at any time any payment received by any Secured Party in respect of any Guaranteed
Obligation; 
 (d) (i) sell, exchange, enforce, waive, substitute, liquidate, terminate, release, abandon, fail to perfect,
subordinate, accept, surrender, affect, impair or otherwise alter any Collateral for any Guaranteed Obligation or any other guaranty therefor in any manner, (ii) receive, take and hold additional Collateral to secure any Guaranteed Obligation,
(iii) add, release or substitute any one or more other Guarantors, makers or endorsers of any Guaranteed Obligation or any part thereof, and (iv) otherwise deal in any manner with a Borrower or any other Guarantor, maker or endorser of any
Guaranteed Obligation or any part thereof; and 
 (e) settle, release, compromise, collect or otherwise liquidate the Guaranteed
Obligations. 
 Section 2.5 Guaranty Absolute and Unconditional. Each Guarantor hereby waives and agrees not
to assert any defense, whether arising in connection with or in respect of any of the following or otherwise, and hereby agrees that its obligations under this Guaranty are irrevocable, absolute and unconditional and shall not be discharged as a
result of or otherwise affected by any of the following (which may not be pleaded and evidence of which may not be introduced in any proceeding with respect to this Guaranty, in each case except as otherwise agreed in writing by Agent): 

(a) the invalidity or unenforceability of any obligation of a Borrower or any other Guarantor under any Loan Document or any other
agreement or instrument relating thereto (including any amendment, consent or waiver thereto), or any security for, or other guaranty of, any Guaranteed Obligation or any part thereof, or the lack of perfection or continuing perfection or failure of
priority of any security for the Guaranteed Obligations or any part thereof; 
 (b) the absence of (i) any attempt to
collect any Guaranteed Obligation or any part thereof from a Borrower or any other Guarantor or other action to enforce the same or (ii) any action to enforce any Loan Document or any Lien thereunder; 

(c) the failure by any Person to take any steps to perfect and maintain any Lien on, or to preserve any rights with respect to, any
Collateral; 
 (d) any workout, insolvency, bankruptcy proceeding, reorganization, arrangement, liquidation or dissolution by or
against a Borrower, any other Guarantor or any of a Borrower’s other Subsidiaries or any procedure, agreement, order, stipulation, election, action or omission thereunder, including any discharge or disallowance of, or bar or stay against
collecting, any Guaranteed Obligation (or any interest thereon) in or as a result of any such proceeding; 

  
 7 

 (e) any foreclosure, whether or not through judicial sale, and any other sale or other
disposition of any Collateral or any election by the Agent and Secured Parties following the occurrence of an Event of Default to proceed separately against any Collateral in accordance with such Secured Parties’ rights under the Loan Documents
or any applicable Requirement of Law; or 
 (f) any other defense, setoff, counterclaim or any other circumstance that might
otherwise constitute a legal or equitable discharge of a Borrower, any other Guarantor or any other Subsidiary of a Borrower, in each case other than the payment in full of the Guaranteed Obligations. 

Section 2.6 Waivers. Each Guarantor hereby unconditionally and irrevocably waives and agrees not to assert any claim,
defense, set-off or counterclaim based on diligence, promptness, presentment, requirements for any demand or notice hereunder including any of the following: (a) any demand for payment or performance and protest and notice of protest;
(b) any notice of acceptance; (c) any presentment, demand, protest or further notice or other requirements of any kind with respect to any Guaranteed Obligation (including any accrued but unpaid interest thereon) becoming immediately due
and payable; and (d) any other notice in respect of any Guaranteed Obligation or any part thereof, and any defense arising by reason of any disability or other defense of a Borrower or any other Guarantor. Each Guarantor further unconditionally
and irrevocably agrees, until the indefeasible payment in full of the Guaranteed Obligations, not to (x) enforce or otherwise exercise any right of subrogation or any right of reimbursement or contribution or similar right against a Borrower or
any other Guarantor by reason of any Loan Document or any payment made thereunder or (y) assert any claim, defense, set-off or counterclaim it may have against any other Credit Party or set off any of its obligations to such other Credit Party
against obligations of such Credit Party to such Guarantor; provided that if any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Secured Parties and
shall forthwith be paid to the Agent for the benefit of the Secured Parties to reduce the amount of the Guaranteed Obligations, whether matured or unmatured. No obligation of any Guarantor hereunder shall be discharged other than by complete
performance. 
 Section 2.7 Reliance. Each Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of each Borrower, each other Guarantor and any other guarantor, maker or endorser of any Guaranteed Obligation or any part thereof, and of all other circumstances bearing upon the risk of nonpayment of any
Guaranteed Obligation or any part thereof that diligent inquiry would reveal, and each Guarantor hereby agrees that no Secured Party shall have any duty to advise any Guarantor of information known to it regarding such condition or any such
circumstances. In the event any Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information to any Guarantor, such Secured Party shall be under no obligation to (a) undertake any
investigation not a part of its regular business routine, (b) disclose any information that such Secured Party, pursuant to accepted or reasonable commercial finance or banking practices, wishes to maintain confidential, or (c) make any
future disclosures of such information or any other information to any Guarantor. 

  
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 Section 2.8 Subordination. Each Guarantor hereby subordinates the payment
of all obligations and indebtedness of any Borrower owing to such Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of any Borrower to such Guarantor as subrogee of the Agent or any other Secured Party
or resulting from such Guarantor’s performance under this Guaranty, to the indefeasible payment in full in cash of all Guaranteed Obligations. If the Agent so requests during an Event of Default, any such obligation or indebtedness of any
Borrower to any Guarantor shall be enforced and performance received by the applicable Guarantor as trustee for the Secured Parties and the proceeds thereof shall be paid over to the Agent for the benefit of the Secured Parties on account of the
Guaranteed Obligations, but without reducing or affecting in any manner the liability of such Guarantor under this Agreement. 

Section 2.9 Funds Transfers. If any Guarantor shall engage in any transaction as a result of which a Borrower is
required to make a mandatory prepayment with respect to the Guaranteed Obligations under the terms of the Credit Agreement (including, as a result of any issuance or sale of such Guarantor’s Stock or Stock Equivalents or any sale of its
assets), such Guarantor shall distribute to, or make a contribution to the capital of, the Borrowers an amount equal to the mandatory prepayment required under the terms of the Credit Agreement. 

Section 2.10 No Discharge or Diminishment of Guaranty. The obligations of each Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including any claim of waiver, release, surrender, alteration or compromise of any of
the Guaranteed Obligations, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise. Without
limiting the generality of the foregoing, the Guaranteed Obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of any Agent or any other Secured Party to assert any claim or demand or to
enforce any remedy under this Guaranty, the Credit Agreement, any other Loan Document or any other agreement, by any waiver or modification of any provision of any thereof, by any default, failure or delay, willful or otherwise, in the performance
of the Guaranteed Obligations, or by any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than
the indefeasible payment in full in cash of the Guaranteed Obligations). 
 ARTICLE III 

GRANT OF SECURITY INTEREST 
 Section 3.1 Collateral. For the purposes of this Agreement, all of the following property, wherever located, now owned or at any time hereafter acquired by a Grantor or in which a
Grantor now has or at any time in the future may acquire any right, title or interests is collectively referred to as the “Collateral”: 

  
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 (a) all accounts (including Credit Card Receivables and PL Credit Card Receivables), all
monies, chattel paper (including electronic chattel paper), deposit accounts, documents (as defined in the UCC and, including, if applicable, electronic documents), equipment, general intangibles (including all payment intangibles and Intellectual
Property), instruments (including promissory notes), inventory, investment property, securities, letter of credit rights, any other contract rights or rights to the payment of money and any supporting obligations related to any of the foregoing;

 (b) all commercial tort claims, including without limitation, those described on Schedule 1 and on any supplement
thereto received by Agent pursuant to Section 5.8; 
 (c) all books and records pertaining to the other property
described in this Section 3.1; 
 (d) all property of such Grantor held by any Secured Party, including all property
of every description, in the custody of or in transit to such Secured Party for any purpose, including safekeeping, collection or pledge, for the account of such Grantor or as to which such Grantor may have any right or power, including but not
limited to cash; 
 (e) all other goods (including but not limited to fixtures) and personal property of such Grantor, whether
tangible or intangible and wherever located; and 
 (f) to the extent not otherwise included, all products and proceeds of the
foregoing; 
 Section 3.2 Grant of Security Interest in Collateral. (a) Each Grantor, (i) hereby
ratifies and affirms the grant and pledge of security interests made pursuant to the Original Guaranty and Security Agreement and (ii) to the extent not covered in clause (i) as collateral security for the prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Obligations and the Guaranteed Obligations of such Grantor (the “Secured Obligations”), hereby mortgages, pledges and hypothecates to
Agent for the benefit of the Secured Parties, and grants to Agent, for the benefit of the Secured Parties, a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral of such Grantor; provided,
however, notwithstanding the foregoing, no Lien or security interest is hereby granted on any Excluded Property; provided, further, that if and when any property shall cease to be Excluded Property, the Lien and security
interest granted pursuant to this Agreement shall immediately and without the need for further action of any Grantor, attach to such property, which shall thereupon form part of the Collateral. Each Grantor hereby represents and warrants that the
Excluded Property, when taken as a whole, is not material to the business operations or financial condition of the Grantors, taken as a whole. This Agreement secures, and the Collateral is collateral security for, the payment and performance in full
when due of the Secured Obligations. 
 (b) Each Grantor hereby further authorizes the Agent to make filings with the United
States Patent and Trademark Office, United States Copyright Office, and Canadian Intellectual Property Office (or any successor office or any similar office in any other country) or other necessary documents for the purpose of perfecting,
confirming, continuing, enforcing or 

  
 10 

 
protecting the security interest granted by such Grantor hereunder in any Intellectual Property Collateral, without the signature of such Grantor, and naming such Grantor, as debtor, and the
Agent, as secured party. Each Grantor agrees that Agent shall be authorized to file (i) a duplicate financing statement naming any Grantor as secured party with respect to any Grantor’s interest in any PL Credit Card Receivables, and
(ii) an assignment of such financing statement naming Agent as secured party. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 
 To induce the Lenders and Agent to enter into the Loan Documents, each Grantor hereby represents and warrants each of the following to Agent, the Lenders and the other Secured Parties: 

Section 4.1 Title; No Other Liens. Except for the Lien granted to Agent pursuant to this Agreement and other Permitted
Liens (except for those Permitted Liens not permitted to exist on any Collateral), such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others. Such Grantor (a) is the record and beneficial owner of the
Collateral pledged by it hereunder constituting instruments or certificates and (b) has rights in or the power to transfer each other item of Collateral in which a Lien is granted by it hereunder, free and clear of any other Lien. 

Section 4.2 Perfection and Priority. The security interest granted pursuant to this Agreement constitutes a valid and
continuing perfected security interest in favor of Agent in all Collateral subject as to the perfection of such security interest in respect of the following Collateral, to the occurrence of the following: (i) in the case of all Collateral in
which a security interest may be perfected by filing a financing statement under the UCC, the completion of the filings and other actions specified on Schedule 2 (which, in the case of all filings and other documents referred to on such
schedule, have been delivered to Agent in completed and duly authorized form), (ii) with respect to any deposit account, the execution of Control Agreements, (iii) in the case of all Copyrights, Trademarks and Patents for which UCC filings
are insufficient to perfect a security interest, all appropriate filings having been made with the United States Copyright Office, the United States Patent and Trademark Office, or the Canadian Intellectual Property Office, as applicable,
(iv) in the case of letter-of-credit rights that are not supporting obligations of Collateral, the execution of a Contractual Obligation granting control to Agent over such letter-of-credit rights, (v) in the case of electronic chattel
paper, the completion of all steps necessary to grant control to Agent over such electronic chattel paper, (vi) in the case of all Pledged Certificated Stock, Pledged Debt Instruments and Pledged Investment Property, the delivery thereof to
Agent of such Pledged Certificated Stock, Pledged Debt Instruments and Pledged Investment Property consisting of instruments and certificates, in each case properly endorsed for transfer to Agent or in blank, (vii) in the case of all Pledged
Investment Property not in certificated form, the execution of Control Agreements with respect to such investment property, and (viii) in the case of all other instruments and tangible chattel paper that are not Pledged Certificated Stock,
Pledged Debt Instruments or Pledged Investment Property, the delivery thereof to Agent of such instruments and tangible chattel paper. Such security interest shall be prior to all other Liens on the Collateral except for Permitted Liens having
priority over 

  
 11 

 
Agent’s Lien by operation of law or as expressly permitted pursuant to the terms of the Credit Agreement. Except as set forth in this Section 4.2, all actions by each Grantor
necessary or desirable to protect and perfect the Lien granted hereunder on the Collateral have been duly taken. 

Section 4.3 Pledged Collateral. (a) The Pledged Stock pledged by such Grantor hereunder (i) is listed on
Schedule 3 and constitutes that percentage of the issued and outstanding equity of all classes of each issuer thereof as set forth on Schedule 3, (ii) has been duly authorized, validly issued and is fully paid (other than Pledged
Stock in ULCs, limited liability companies and partnerships); (iii) is nonassessable (other than Pledged Stock and Stock Equivalents of Talbots (Canada) Corporation), and (iv) constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms. 
 (b) As of the Restatement Effective Date, all Pledged
Collateral (other than Pledged Uncertificated Stock) and all Pledged Investment Property consisting of instruments and certificates has been delivered to Agent in accordance with subsection 5.2(a). 

(c) In case any Grantor shall acquire after the Restatement Effective Date (x) any Stock or Stock Equivalent of any Person
constituting Pledged Stock hereunder or (y) any interest in any instruments evidencing any Indebtedness or other obligation owed to such Grantor constituting a Pledged Debt Instrument hereunder, in each case, not listed on Schedule 3
hereto, such Pledged Stock and Pledged Debt Instruments shall, notwithstanding the Pledged Collateral reflected on Schedule 3, be subject to the pledge, assignment (except in the case of Pledged ULC Shares) and security interest granted to
the Agent under this Agreement and such Grantor shall promptly, and in any event no later than the next succeeding date the Borrowers shall be required to deliver a Borrowing Base Certificate pursuant to Section 4.2(d) of the Credit Agreement,
after the date such Pledged Collateral was so acquired (i) deliver to the Agent forthwith (A) a Pledge Amendment pursuant to Section 8.6(b) hereof reflecting such newly acquired Pledged Collateral and (B) any certificates and
instruments evidencing such Pledged Collateral, accompanied by transfer powers or other appropriate instruments of assignment duly executed by such Grantor in blank and (ii) take or cause to be taken such actions, execute and/or deliver or
cause to be executed and/or delivered such documents as the Agent may reasonably request pursuant to Section 4.13 of the Credit Agreement. 
 (d) Except in the case of Pledged ULC Shares, upon the occurrence and during the continuance of an Event of Default, Agent shall be entitled to exercise all of the rights of the Grantor granting the
security interest in any Pledged Stock, and a transferee or assignee of such Pledged Stock shall become a holder of such Pledged Stock to the same extent as such Grantor and be entitled to participate in the management of the issuer of such Pledged
Stock and, upon the transfer of the entire interest of such Grantor, such Grantor shall, by operation of law, cease to be a holder of such Pledged Stock. 
 Section 4.4 Instruments and Tangible Chattel Paper Formerly Accounts. No amount payable to such Grantor under or in connection with any account is evidenced by any instrument or
tangible chattel paper that has not been delivered to Agent, properly endorsed for transfer, to the extent delivery is required by subsection 5.5(a). 

  
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 Section 4.5 Intellectual Property. On the Restatement Effective Date, all
Material Intellectual Property owned by such Grantor is valid, in full force and effect, subsisting, unexpired and enforceable, and no Material Intellectual Property has been abandoned. No breach or default of any material IP License shall be caused
by any of the following, and none of the following shall limit or impair the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual Property: (i) the consummation of the transactions
contemplated by any Loan Document or (ii) any holding, decision, judgment or order rendered by any Governmental Authority which exists as of the date hereof. To the knowledge of each Grantor, no Person has contested any right, title or interest
of any Grantor or any Subsidiary of any Grantor in, or relating to, any Material Intellectual Property of such Grantor. To such Grantor’s knowledge, no Person has been or is infringing, misappropriating, diluting, violating or otherwise
impairing any Intellectual Property of such Grantor. Such Grantor, and to such Grantor’s knowledge each other party thereto, is not in material breach or default of any material IP License. 

Section 4.6 Commercial Tort Claims. The only commercial tort claims which any Grantor, to the best of its knowledge,
has asserted against a third-party before a Governmental Authority or a third-party arbitrator (other than commercial tort claims where such Grantor is a plaintiff as part of a class action lawsuit (not initiated by such Grantor) where the amount of
such claim and judgment amount to be realized to such Grantor from such claim does not exceed and could not reasonably be expected to exceed $25,000 individually for any single commercial tort claim and $250,000 in the aggregate for all such
commercial tort claims) are those listed on Schedule 1, which sets forth such information separately for each Grantor. 
 Section 4.7 Specific Collateral. None of the Collateral is or is proceeds or products of farm products, as-extracted collateral, health-care-insurance receivables or timber to be cut.

 Section 4.8 Enforcement. No Permit, notice to or filing with any Governmental Authority or any other
Person or any consent from any Person is required for the exercise by Agent of its rights (including voting rights) provided for in this Agreement or the enforcement of remedies in respect of the Collateral pursuant to this Agreement, including the
transfer of any Collateral, except for filings contemplated by Section 5.12 or as may be required in connection with the disposition of any portion of the Pledged Collateral by laws affecting the offering and sale of securities generally
or any approvals that may be required to be obtained from any bailees or landlords to collect the Collateral or such non-waivable UCC consents of the Grantors. 
 Section 4.9 Representations and Warranties of the Credit Agreement. The representations and warranties as to such Grantor and its Subsidiaries made in Article III (Representations and
Warranties) of the Credit Agreement are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that are already qualified or modified by materiality in the text
thereof) on each date as required by Section 2.2 of the Credit Agreement. 
 Section 4.10 Perfection
Certificate. The Perfection Certificate delivered to the Agent and other Secured Parties on the date hereof, together with all statements and representations contained therein, is true, complete, and correct in all material respects. 

  
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 Section 4.11 Canadian Assets. None of the Grantors (other than Talbots
(Canada) Corporation and solely with respect to one (1) demand deposit account located at HSBC Canada, maintained by TALBOTS (CANADA), INC.), none of the Grantors own, maintain, or are otherwise in possession of any assets located in Canada as
of the Restatement Effective Date. 
 ARTICLE V 
 COVENANTS 
 Each Grantor agrees with Agent to the following, as long as any
Obligation or Commitment remains outstanding (other than contingent indemnification Obligations to the extent no claim giving rise thereto has been asserted): 
 Section 5.1 Maintenance of Perfected Security Interest; Further Documentation and Consents. (a) Generally. Such Grantor shall not (i) use or permit any Collateral to be
used unlawfully or in violation of any provision of any Loan Document, any Requirement of Law or any policy of insurance covering the Collateral and (ii) enter into any Contractual Obligation or undertaking restricting the right or ability of
such Grantor or Agent to sell, assign, convey or transfer any Collateral if such restriction would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 

(b) Such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having at least the
priority described in Section 4.2 and shall defend such security interest and such priority against the claims and demands of all Persons. 
 (c) Such Grantor shall furnish to Agent from time to time statements and schedules further identifying and describing the Collateral and such other documents in connection with the Collateral as Agent may
reasonably request, all in reasonable detail and in form and substance satisfactory to Agent. 
 (d) At any time and from time
to time, upon the written request of Agent, such Grantor shall, for the purpose of obtaining or preserving the full benefits of the Loan Documents, including this Agreement, and of the rights and powers herein granted, (i) take whatever action
Agent may reasonably require to perfect or protect any security interest intended to be created by this Agreement, (ii) promptly and duly execute and deliver, and have recorded, such further documents, including an authorization to file (or, as
applicable, the filing) of any financing statement or amendment under the UCC (or other filings under similar Requirements of Law) in effect in any jurisdiction with respect to the security interest created hereby, and (iii) take such further
action as Agent may reasonably request, including (A) using its reasonable commercial efforts to secure all approvals necessary or appropriate for the assignment to or for the benefit of Agent of any Contractual Obligation, including any IP
License, held by such Grantor and to enforce the security interests granted hereunder and (B) executing and delivering any Control Agreements with respect to deposit accounts and securities accounts. 

(e) [Intentionally Omitted]. 

  
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 (f) To ensure that the Lien and security interest granted pursuant to this Agreement shall
attach to any of the Excluded Property set forth in clause (ii) of the definition of “Excluded Property”, such Grantor shall use its reasonable commercial efforts to obtain any required consents from any Person (other than a
Borrower and its Affiliates) with respect to any permit or license or any Contractual Obligation with such Person entered into by such Grantor that requires such consent as a condition to the creation by such Grantor of a Lien on any right, title or
interest in such permit, license or Contractual Obligation or any Stock or Stock Equivalent related thereto. 

Section 5.2 Pledged Collateral. (a) Delivery of Pledged Collateral. Such Grantor shall (i) deliver to
Agent, in suitable form for transfer and in form and substance satisfactory to Agent, (A) all Pledged Certificated Stock, (B) all Pledged Debt Instruments, provided, however, so long as no Event of Default shall be continuing
or would result therefrom, the Grantors shall not be required to take any of the foregoing actions to the extent the aggregate amount owed under Pledged Debt Instruments for all Grantors, for which the foregoing actions have not been taken, is less
than $250,000 in the aggregate, and (C) all certificates and instruments evidencing Pledged Investment Property, and (ii) maintain all other Pledged Investment Property in a Controlled Securities Account. 

(b) Event of Default. During the continuance of an Event of Default, Agent shall have the right, at any time in its discretion and
without notice to the Grantor, to (i) transfer to or to register in its name or in the name of its nominees any Pledged Collateral or any Pledged Investment Property provided that no Pledged ULC Shares shall be registered in the name of any
person other than the Grantor pledging such shares other than as contemplated in Section 8.17 hereof, and (ii) exchange any certificate or instrument representing or evidencing any Pledged Collateral or any Pledged Investment
Property for certificates or instruments of smaller or larger denominations. 
 (c) Cash Distributions with respect to
Pledged Collateral. Except as provided in Article VI and subject to the limitations set forth in the Credit Agreement, such Grantor shall be entitled to receive all cash distributions paid in respect of the Pledged Collateral.

 (d) Voting Rights. Except as provided in Article VI, such Grantor shall be entitled to exercise all
voting, consent and corporate, partnership, limited liability company and similar rights with respect to the Pledged Collateral; provided, however, that no vote shall be cast, consent given or right exercised or other action taken by
such Grantor that would impair the Collateral, or the Agent’s rights therein, or be inconsistent with or result in any violation of any provision of any Loan Document. For greater certainty, nothing in this paragraph is intended to suggest that
a Grantor who is a registered holder of Pledged ULC Shares would not have the rights described in this paragraph in the absence of this paragraph. 
 Section 5.3 Accounts. Such Grantor shall not, other than in the ordinary course of business, (i) grant any extension of the time of payment of any account, (ii) compromise or
settle any account for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any account, (iv) allow any credit or discount on any account, or (v) amend, supplement or modify any
account in any manner that could adversely affect the value thereof. 

  
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 Section 5.4 Commodity Contracts. Such Grantor shall not have any
commodity contract unless subject to a Control Agreement. 
 Section 5.5 Delivery of Instruments and Tangible
Chattel Paper and Control of Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper. (a) If any amount in excess of $250,000 payable under or in connection with any Collateral owned by such Grantor shall be or become
evidenced by an instrument or tangible chattel paper other than such instrument delivered in accordance with subsection 5.2(a) and in the possession of Agent, such Grantor shall mark all such instruments and tangible chattel paper with
the following legend: “This writing and the obligations evidenced or secured hereby are subject to the security interest of General Electric Capital Corporation, as Agent” and, at the request of Agent, shall immediately deliver such
instrument or tangible chattel paper to Agent, duly indorsed in a manner satisfactory to Agent. 
 (b) Such Grantor shall not
grant “control” (within the meaning of such term under Article 9-106 of the UCC) over any investment property to any Person other than Agent. 
 (c) If such Grantor is or becomes the beneficiary of a letter of credit that is (i) not a supporting obligation of any Collateral and (ii) in excess of $250,000, such Grantor shall promptly, and
in any event within two (2) Business Days after becoming a beneficiary, notify Agent thereof and enter into a Contractual Obligation with Agent, the issuer of such letter of credit or any nominated person with respect to the letter-of-credit
rights under such letter of credit. Such Contractual Obligation shall assign such letter-of-credit rights to Agent and such assignment shall be sufficient to grant control for the purposes of Section 9-107 of the UCC (or any similar section
under any equivalent UCC). Such Contractual Obligation shall also direct all payments thereunder to a Cash Collateral Account. The provisions of the Contractual Obligation shall be in form and substance reasonably satisfactory to Agent. 

(d) If any amount in excess of $250,000 payable under or in connection with any Collateral owned by such Grantor shall be or become
evidenced by electronic chattel paper, such Grantor shall take all steps necessary to grant Agent control of all such electronic chattel paper for the purposes of Section 9-105 of the UCC (or any similar section under any equivalent UCC) and
all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. 
 Section 5.6 Intellectual Property. (a) Within 30 days after any change to Schedule 3.16 to the Credit Agreement for such Grantor, such Grantor shall provide Agent notification
thereof and the short-form intellectual property agreements and assignments as described in this Section 5.6 and any other documents that Agent reasonably requests with respect thereto. 

(b) Such Grantor shall (and shall use commercially reasonable efforts to cause all its licensees to) (i) (A) continue to use
each Trademark included in the Material Intellectual Property in order to maintain such Trademark in full force and effect with respect to each class of goods for which such Trademark is currently used, free from any claim of abandonment for
non-use, (B) maintain at least the same standards of quality of products and services offered under such Trademark as are currently maintained, (C) use such Trademark with the appropriate

  
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notice of registration and all other notices and legends required by applicable Requirements of Law, and (D) not adopt or use any other Trademark that is confusingly similar or a colorable
imitation of such Trademark unless Agent shall obtain a perfected security interest in such other Trademark pursuant to this Agreement and (ii) not do any act or omit to do any act whereby (w) such Trademark (or any goodwill associated
therewith) may become destroyed, invalidated, impaired or harmed in any way, (x) any Patent included in the Material Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the public, (y) any portion
of the Copyrights included in the Material Intellectual Property may become invalidated, otherwise impaired or fall into the public domain, or (z) any Trade Secret that is Material Intellectual Property may become publicly available or
otherwise unprotectable. 
 (c) Such Grantor shall (i) notify Agent immediately if it knows, or has reason to know, that
any application or registration relating to any Material Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the public, or of any adverse determination or development regarding the validity or
enforceability or such Grantor’s ownership of, interest in, right to use, register, own or maintain any Material Intellectual Property (including the institution of, or any such determination or development in, any proceeding relating to the
foregoing in any Applicable IP Office), and (ii) shall take all actions that are necessary or reasonably requested by Agent to maintain and pursue each application (and to obtain the relevant registration or recordation) and to maintain each
registration and recordation included in the Material Intellectual Property. 
 (d) In the event that any Material Intellectual
Property of such Grantor is or has been infringed, misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor shall take such action as it reasonably deems appropriate under the circumstances in response thereto,
including promptly bringing suit and recovering all damages therefor. 
 (e) Such Grantor shall execute and deliver to Agent in
form and substance reasonably acceptable to Agent and suitable for (i) filing in the Applicable IP Office the short-form intellectual property security agreements in the form attached hereto as Annex 3 for all Copyrights,
Trademarks, Patents and IP Licenses of such Grantor and (ii) recording with the appropriate Internet domain name registrar, a duly executed form of assignment for all Internet Domain Names of such Grantor (together with appropriate supporting
documentation as may be requested by Agent). 
 Section 5.7 Notices. Such Grantor shall promptly notify Agent
in writing of its acquisition of any interest hereafter in property that is of a type where a security interest or lien must be or may be registered, recorded or filed under, or notice thereof given under, any federal statute or regulation.

 Section 5.8 Notice of Commercial Tort Claims. Such Grantor agrees that, if it shall acquire any interest
in any commercial tort claim asserted against a third-party before a Governmental Authority or a third-party arbitrator (other than commercial tort claims where such Grantor is a plaintiff as part of a class action lawsuit (not initiated by such
Grantor) where the amount of such claim and judgment amount to be realized to such Grantor from such claim does not exceed and could not reasonably be expected to exceed $25,000 individually for any single commercial tort claim and $250,000 in the
aggregate for all such commercial tort claims) 

  
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(whether from another Person or because such commercial tort claim shall have come into existence), (i) such Grantor shall, immediately upon such acquisition, deliver to Agent, in each case
in form and substance satisfactory to Agent, a notice of the existence and nature of such commercial tort claim and a supplement to Schedule 1 containing a specific description of such commercial tort claim,
(ii) Section 3.1 shall apply to such commercial tort claim, and (iii) such Grantor shall execute and deliver to Agent, in each case in form and substance satisfactory to Agent, any document, and take all other action, deemed by
Agent to be reasonably necessary or appropriate for Agent to obtain, on behalf of the Lenders, a perfected security interest having at least the priority set forth in Section 4.2 in all such commercial tort claims. Any supplement to
Schedule 1 delivered pursuant to this Section 5.8 shall, after the receipt thereof by Agent, become part of Schedule 1 for all purposes hereunder other than in respect of representations and warranties made prior
to the date of such receipt. Notwithstanding the foregoing, the requirements set forth in this Section 5.8 shall not apply to the extent that the amount of a commercial tort claim held by a Grantor, together with the amount of all other
commercial tort claims held by all Grantors in which Agent does not have a security interest, does not exceed $250,000 in the aggregate at any time. 
 Section 5.9 Controlled Securities Account. Each Grantor shall deposit all of its Cash Equivalents in securities accounts that are Controlled Securities Accounts. 

Section 5.10 Deposit Accounts. Subject to the limited exceptions set forth in Section 4.11 of the Credit
Agreement, for each deposit account that any Grantor, now or at any time hereafter, opens or maintains, such Grantor shall, at the Agent’s request and option, pursuant to an agreement in form and substance satisfactory to the Agent, either
(a) cause the depositary bank to agree to comply without further consent of any Grantor, at any time with instructions from the Agent to such depositary bank directing the disposition of funds from time to time credited to such deposit account
or (b) arrange for the Agent to become the customer of the depositary bank with respect to the deposit account, with such Grantor being permitted, only with the consent of the Agent, to exercise rights to withdraw funds from such deposit
account. 
 Section 5.11 Collateral in the Possession of a Bailee. If any Collateral is, now or at any time
hereafter, in the possession of a bailee, the Grantors shall promptly notify the Agent thereof and, at the Agent’s request and option, shall promptly obtain (a) an acknowledgement from the bailee, in form and substance satisfactory to the
Agent, that the bailee holds such Collateral for the benefit of the Agent and (b) such bailee’s agreement to comply, without further consent of any Grantor, at any time with instructions of the Agent as to such Collateral. 

Section 5.12 Changes in Location, Name, Etc. Except upon thirty (30) days’ prior written notice to the Agent
(or such shorter period as may be determined by the Agent) and delivery to the Agent of (a) all documents reasonably requested by the Agent to maintain the validity, perfection and priority of the security interests provided for herein and
(b) if applicable, a written supplement to the Perfection Certificate showing any additional locations at which inventory or equipment shall be kept, such Grantor shall not do any of the following: 

(i) permit any inventory or equipment to be kept at a location other than those listed in the Perfection Certificate (as
supplemented from time to time), except for inventory or equipment in transit or out for repair, or that is in the process of being or has been sold, transferred or otherwise disposed of in a transaction permitted under Section 5.2 of the
Credit Agreement; 

  
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 (ii) change its jurisdiction of organization or its location or chief
executive office or registered office, in each case from that referred to in the Perfection Certificate; or 

(iii) change its legal name or organizational identification number, if any, or corporation, limited liability company,
partnership or other organizational structure to such an extent that any financing statement filed in connection with this Agreement would become misleading. 
 ARTICLE VI 
 REMEDIAL PROVISIONS 

Section 6.1 Code and Other Remedies. (a) UCC Remedies. During the continuance of an Event of Default, Agent may
exercise, in addition to all other rights and remedies granted to it in this Agreement and in any other instrument or agreement securing, evidencing or relating to any Secured Obligation, and except as provided in Section 8.17 hereof,
all rights and remedies of a secured party under the UCC or any other applicable law. 
 (b) Disposition of Collateral.
Without limiting the generality of the foregoing, Agent may, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any
other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), during the continuance of any Event of Default (personally or through its agents or attorneys), (i) enter upon the premises where any
Collateral is located, without any obligation to pay rent, through self-help, without judicial process, without first obtaining a final judgment or giving any Grantor or any other Person notice or opportunity for a hearing on Agent’s claim or
action, (ii) collect, receive, appropriate and realize upon any Collateral, and (iii) sell, assign, convey, transfer, grant option or options to purchase and deliver any Collateral (enter into Contractual Obligations to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of any Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best,
for cash or on credit or for future delivery without assumption of any credit risk. Agent shall have the right, upon any such public sale or sales and, to the extent permitted by the UCC and other applicable Requirements of Law, upon any such
private sale, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption of any Grantor, which right or equity is hereby waived and released. 

(c) Management of the Collateral. Each Grantor further agrees that during the continuance of any Event of Default (i) at
Agent’s request, it shall assemble the Collateral and make it available to Agent at places that Agent shall reasonably select, whether at such Grantor’s premises or elsewhere, (ii) without limiting the foregoing, Agent also has the
right to require that each Grantor store and keep any Collateral pending further action by Agent and, while any such Collateral is so stored or kept, provide such guards and maintenance services as shall be

  
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necessary to protect the same and to preserve and maintain such Collateral in good condition, (iii) until Agent is able to sell, assign, convey or transfer any Collateral, Agent shall have
the right to hold or use such Collateral to the extent that it deems appropriate for the purpose of preserving the Collateral or its value or for any other purpose deemed appropriate by Agent, and (iv) Agent may, if it so elects, seek the
appointment of a receiver or keeper to take possession of any Collateral and to enforce any of Agent’s remedies (for the benefit of the Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment.
Agent shall not have any obligation to any Grantor to maintain or preserve the rights of any Grantor as against third parties with respect to any Collateral while such Collateral is in the possession of Agent. 

(d) Application of Proceeds. Agent shall apply the cash proceeds of any action taken by it pursuant to this
Section 6.1, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any Collateral or in any way relating to the Collateral or the rights of Agent and
any other Secured Party hereunder, including reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Secured Obligations, as set forth in the Credit Agreement, and only after such application and after the
payment by Agent of any other amount required by any Requirement of Law, need Agent account for the surplus, if any, to any Grantor. 
 (e) Direct Obligation. Neither Agent nor any other Secured Party shall be required to make any demand upon, or pursue or exhaust any right or remedy against, any Grantor, any other Credit Party or
any other Person with respect to the payment of the Obligations or to pursue or exhaust any right or remedy with respect to any Collateral therefor or any direct or indirect guaranty thereof. All of the rights and remedies of Agent and any other
Secured Party under any Loan Document shall be cumulative, may be exercised individually or concurrently and not exclusive of any other rights or remedies provided by any Requirement of Law. To the extent it may lawfully do so, each Grantor
absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against Agent or any other Secured Party, any valuation, stay, appraisement, extension, redemption or similar laws and any and all rights or
defenses it may have as a surety, now or hereafter existing, arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of any Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least ten (10) days before such sale or other disposition. 
 (f) Commercially
Reasonable. To the extent that applicable Requirements of Law impose duties on Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for Agent to do any of
the following: 
 (i) fail to incur significant costs, expenses or other Liabilities reasonably deemed as such by
Agent to prepare any Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition; 

(ii) fail to obtain Permits, or other consents, for access to any Collateral to sell or for the collection or sale of any
Collateral, or, if not required by other Requirements of Law, fail to obtain Permits or other consents for the collection or disposition of any Collateral; 

  
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 (iii) fail to exercise remedies against account debtors or other Persons
obligated on any Collateral or to remove Liens on any Collateral or to remove any adverse claims against any Collateral; 
 (iv) advertise dispositions of any Collateral through publications or media of general circulation, whether or not such Collateral is of a specialized nature, or to contact other Persons, whether or not
in the same business as any Grantor, for expressions of interest in acquiring any such Collateral; 
 (v)
exercise collection remedies against account debtors and other Persons obligated on any Collateral, directly or through the use of collection agencies or other collection specialists, hire one or more professional auctioneers to assist in the
disposition of any Collateral, whether or not such Collateral is of a specialized nature, or, to the extent deemed appropriate by Agent, obtain the services of other brokers, investment bankers, consultants and other professionals to assist Agent in
the collection or disposition of any Collateral, or utilize Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets to
dispose of any Collateral; 
 (vi) dispose of assets in wholesale rather than retail markets; 

(vii) disclaim disposition warranties, such as title, possession or quiet enjoyment; or 

(viii) purchase insurance or credit enhancements to insure Agent against risks of loss, collection or disposition of any
Collateral or to provide to Agent a guaranteed return from the collection or disposition of any Collateral. 
 Each Grantor acknowledges that
the purpose of this Section 6.1 is to provide a non-exhaustive list of actions or omissions that are commercially reasonable when exercising remedies against any Collateral and that other actions or omissions by the Secured Parties shall
not be deemed commercially unreasonable solely on account of not being indicated in this Section 6.1. Without limitation upon the foregoing, nothing contained in this Section 6.1 shall be construed to grant any rights to any
Grantor or to impose any duties on Agent that would not have been granted or imposed by this Agreement or by applicable Requirements of Law in the absence of this Section 6.1. 

(g) License. For the purpose of enabling Agent to exercise rights and remedies under this Section 6.1 (including in
order to take possession of, collect, receive, assemble, process, appropriate, remove, realize upon, sell, assign, convey, transfer or grant options to purchase any Collateral) at such time as Agent shall be lawfully entitled to exercise such rights
and remedies, each Grantor hereby grants to Agent, for the benefit of the Secured Parties, (i) an irrevocable, nonexclusive, worldwide license (exercisable without payment of royalty or other compensation to such Grantor), including in such
license the right to sublicense, use and practice any Intellectual Property now owned or hereafter acquired by such Grantor and 

  
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access to all media in which any of the licensed items may be recorded or stored and to all Software and programs used for the compilation or printout thereof (subject only to the rights of any
third party non-Affiliate licensor of such Intellectual Property) and (ii) an irrevocable license (without payment of rent or other compensation to such Grantor) to use, operate and occupy all real Property owned, operated, leased, subleased or
otherwise occupied by such Grantor. 
 Section 6.2 Accounts and Payments in Respect of General Intangibles.
(a) In addition to, and not in substitution for, any similar requirement in the Credit Agreement, if required by Agent at any time during the continuance of an Event of Default, any payment of accounts or payment in respect of general
intangibles, when collected by any Grantor, shall be promptly (and, in any event, within two (2) Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to Agent, in a Cash Collateral Account, subject
to withdrawal by Agent as provided in Section 6.4. Until so turned over, such payment shall be held by such Grantor in trust for Agent, segregated from other funds of such Grantor. Each such deposit of proceeds of accounts and payments
in respect of general intangibles shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit. 
 (b) At any time during the continuance of an Event of Default: 

(i) each Grantor shall, upon Agent’s request, deliver to Agent all original and other documents evidencing, and
relating to, the Contractual Obligations and transactions that gave rise to any account or any payment in respect of general intangibles, including all original orders, invoices and shipping receipts and notify account debtors that the accounts or
general intangibles have been collaterally assigned to Agent and that payments in respect thereof shall be made directly to Agent; 
 (ii) Agent may, without notice, at any time during the continuance of an Event of Default, limit or terminate the authority of a Grantor to collect its accounts or amounts due under general intangibles or
any thereof and, in its own name or in the name of others, communicate with account debtors to verify with them to Agent’s satisfaction the existence, amount and terms of any account or amounts due under any general intangible. In addition,
Agent may at any time enforce such Grantor’s rights against such account debtors and obligors of general intangibles; and 
 (iii) each Grantor shall take all actions, deliver all documents and provide all information necessary or reasonably requested by Agent to ensure any Internet Domain Name is registered. 

(c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each account and each payment in respect of
general intangibles to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. No Secured Party shall have any obligation or
liability under any agreement giving rise to an account or a payment in respect of a general intangible by reason of or arising out of any Loan Document or the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party
be obligated in any manner to perform any obligation of any Grantor under or pursuant to any agreement giving rise 

  
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to an account or a payment in respect of a general intangible, to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency
of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts that may have been assigned to it or to which it may be entitled at any time or times.

 Section 6.3 Pledged Collateral. (a) Voting Rights. Nothing in this Section 6.3
shall apply to Pledged ULC Shares. During the continuance of an Event of Default, upon notice by Agent to the relevant Grantor or Grantors, Agent or its nominee may exercise (i) any voting, consent, corporate and other right pertaining to the
Pledged Collateral at any meeting of shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged Collateral or otherwise and (ii) any right of conversion, exchange and subscription and any other right,
privilege or option pertaining to the Pledged Collateral as if it were the absolute owner thereof (including the right to exchange at its discretion any Pledged Collateral upon the merger, amalgamation, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or equivalent structure of any issuer of Pledged Stock, the right to deposit and deliver any Pledged Collateral with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as Agent may determine), all without liability except to account for property actually received by it; provided, however, that Agent shall have no duty to any Grantor to exercise any
such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing. 
 (b)
Proxies. In order to permit Agent to exercise the voting and other consensual rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions that it may be entitled to receive hereunder,
(i) each Grantor shall promptly execute and deliver (or cause to be executed and delivered) to Agent all such proxies, dividend payment orders and other instruments as Agent may from time to time reasonably request and (ii) without
limiting the effect of clause (i) above, such Grantor hereby grants to Agent an irrevocable proxy to vote all or any part of the Pledged Collateral and to exercise all other rights, powers, privileges and remedies to which a holder of the
Pledged Collateral would be entitled (including giving or withholding written consents of shareholders, partners or members, as the case may be, calling special meetings of shareholders, partners or members, as the case may be, and voting at such
meetings), which proxy shall be effective, automatically and without the necessity of any action (including any transfer of any Pledged Collateral on the record books of the issuer thereof) by any other person (including the issuer of such Pledged
Collateral or any officer or agent thereof) during the continuance of an Event of Default and which proxy shall only terminate upon the payment in full of the Secured Obligations (other than contingent indemnification obligations to the extent no
claim giving rise thereto has been asserted). 
 (c) Authorization of Issuers. Each Grantor hereby expressly and
irrevocably authorizes and instructs, without any further instructions from such Grantor, each issuer of any Pledged Collateral pledged hereunder by such Grantor to (i) comply with any instruction received by it from Agent in writing that
states that an Event of Default is continuing and is otherwise in accordance with the terms of this Agreement and each Grantor agrees that such issuer shall be fully protected from Liabilities to such Grantor in so complying and (ii) unless
otherwise expressly permitted hereby or the Credit Agreement, pay any dividend or make any other payment with respect to the Pledged Collateral directly to Agent. 

  
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 Section 6.4 Proceeds to be Turned over to and Held by Agent. Unless
otherwise expressly provided in the Credit Agreement or this Agreement, all proceeds of any Collateral received by any Grantor hereunder in cash or Cash Equivalents shall be held by such Grantor in trust for Agent and the other Secured Parties,
segregated from other funds of such Grantor, and shall, promptly upon receipt by any Grantor, be turned over to Agent in the exact form received (with any necessary endorsement). All such proceeds of Collateral and any other proceeds of any
Collateral received by Agent in cash or Cash Equivalents shall be held by Agent in a Cash Collateral Account. All proceeds being held by Agent in a Cash Collateral Account (or by such Grantor in trust for Agent) shall continue to be held as
collateral security for the Secured Obligations and shall not constitute payment thereof until applied as provided in the Credit Agreement. 
 Section 6.5 Sale of Pledged Collateral. (a) Each Grantor recognizes that Agent may be unable to effect a public sale of any Pledged Collateral by reason of certain prohibitions
contained in the Securities Act and applicable state or foreign securities laws or otherwise or may determine that a public sale is impracticable, not desirable or not commercially reasonable and, accordingly, may resort to one or more private sales
thereof to a restricted group of purchasers that shall be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and
agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially
reasonable manner. Agent shall be under no obligation to delay a sale of any Pledged Collateral for the period of time necessary to permit the issuer thereof to register such securities for public sale under the Securities Act or under applicable
state securities laws even if such issuer would agree to do so. 
 (b) Each Grantor agrees to use its best efforts to do or
cause to be done all such other acts as may be necessary to make such sale or sales of any portion of the Pledged Collateral pursuant to Section 6.1 and this Section 6.5 valid and binding and in compliance with all applicable
Requirements of Law. Each Grantor further agrees that a breach of any covenant contained herein will cause irreparable injury to Agent and other Secured Parties, that Agent and the other Secured Parties have no adequate remedy at law in respect of
such breach and, as a consequence, that each and every covenant contained herein shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defense against an action for specific performance
of such covenants except for a defense that no Event of Default has occurred under the Credit Agreement. Each Grantor waives any and all rights of contribution or subrogation upon the sale or disposition of all or any portion of the Pledged
Collateral by Agent. 
 Section 6.6 Deficiency. Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of any Collateral are insufficient to pay the Secured Obligations and the fees and disbursements of any attorney employed by Agent or any other Secured Party to collect such deficiency. 

  
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 ARTICLE VII 
 AGENT 
 Section 7.1 Agent’s Appointment as
Attorney-in-Fact. (a) Each Grantor hereby irrevocably constitutes and appoints Agent and any Related Person thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the
place and stead of such Grantor and in the name of such Grantor or, except in the case of matters concerning Pledged ULC Shares, in its own name, for the purpose of carrying out the terms of the Loan Documents, to take any appropriate action and to
execute any document or instrument that may be necessary or desirable to accomplish the purposes of the Loan Documents, and, without limiting the generality of the foregoing, each Grantor hereby gives Agent and its Related Persons the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any of the following when an Event of Default shall be continuing: 
 (i) in the name of such Grantor, in its own name or otherwise, take possession of and indorse and collect any check, draft, note, acceptance or other instrument for the payment of moneys due under any
account or general intangible or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by Agent for the purpose of collecting any such moneys due
under any account or general intangible or with respect to any other Collateral whenever payable; 
 (ii) in the
case of any Intellectual Property owned by or licensed to the Grantors, execute, deliver and have recorded any document that Agent may request to evidence, effect, publicize or record Agent’s security interest in such Intellectual Property and
the goodwill and general intangibles of such Grantor relating thereto or represented thereby; 
 (iii) pay or
discharge taxes and Liens levied or placed on or threatened against any Collateral, effect any repair or pay any insurance called for by the terms of the Credit Agreement (including all or any part of the premiums therefor and the costs thereof);

 (iv) execute, in connection with any sale provided for in Section 6.1 or 6.5, any document to
effect or otherwise necessary or appropriate in relation to evidence the sale of any Collateral; or 
 (v) (A)
direct any party liable for any payment under any Collateral to make payment of any moneys due or to become due thereunder directly to Agent or as Agent shall direct, (B) ask or demand for, and collect and receive payment of and receipt for,
any moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral, (C) sign and indorse any invoice, freight or express bill, bill of lading, storage or warehouse receipt, draft against
debtors, assignment, verification, notice and other document in connection with any Collateral, (D) commence and prosecute any suit, action or proceeding at law or in equity in any court of competent

  
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jurisdiction to collect any Collateral and to enforce any other right in respect of any Collateral, (E) defend any actions, suits, proceedings, audits, claims, demands, orders or disputes
brought against such Grantor with respect to any Collateral, (F) settle, compromise or adjust any such actions, suits, proceedings, audits, claims, demands, orders or disputes and, in connection therewith, give such discharges or releases as
Agent may deem appropriate, (G) assign any Intellectual Property owned by the Grantors or any IP Licenses of the Grantors throughout the world on such terms and conditions and in such manner as Agent shall in its sole discretion determine,
including the execution and filing of any document necessary to effectuate or record such assignment, and (H) generally, sell, assign, convey, transfer or grant a Lien on, make any Contractual Obligation with respect to and otherwise deal with,
any Collateral as fully and completely as though Agent were the absolute owner thereof for all purposes and do, at Agent’s option, at any time or from time to time, all acts and things that Agent deems necessary to protect, preserve or realize
upon any Collateral and the Secured Parties’ security interests therein and to effect the intent of the Loan Documents, all as fully and effectively as such Grantor might do. 

(vi) If any Grantor fails to perform or comply with any Contractual Obligation contained herein, Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such Contractual Obligation. 
 (b) The expenses of Agent incurred in connection with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate set forth in subsection 1.3(c) of the Credit
Agreement, from the date of payment by Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to Agent on demand. 
 (c) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this Section 7.1. All powers, authorizations and agencies contained in this
Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released. 
 Section 7.2 Authorization to File Financing Statements. Each Grantor authorizes Agent and its Related Persons, at any time and from time to time, to file or record financing statements,
amendments thereto, and other filing or recording documents or instruments with respect to any Collateral in such form and in such offices as Agent reasonably determines appropriate to perfect the security interests of Agent under this Agreement,
and such financing statements and amendments may describe the Collateral covered thereby as “all assets of the debtor, wherever located, whether now owned or hereafter acquired or arising” or words of similar effect. A photographic or
other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction. Such Grantor also hereby ratifies its authorization for Agent to have
filed any initial financing statement or amendment thereto under the UCC (or other similar laws) in effect in any jurisdiction if filed prior to the date hereof. 
 Section 7.3 Authority of Agent. Each Grantor acknowledges that the rights and responsibilities of Agent under this Agreement with respect to any action taken by Agent or the

  
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exercise or non-exercise by Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between Agent
and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between Agent and the Grantors, Agent shall be conclusively presumed to be acting
as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation or entitlement to make any inquiry respecting such authority. 

Section 7.4 Duty; Obligations and Liabilities. (a) Duty of Agent. Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its possession shall be to deal with it in the same manner as Agent deals with similar property for its own account. The powers conferred on Agent hereunder are solely to
protect Agent’s interest in the Collateral and shall not impose any duty upon Agent to exercise any such powers. Agent shall be accountable only for amounts that it receives as a result of the exercise of such powers, and neither it nor any of
its Related Persons shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. In addition, Agent shall not be
liable or responsible for any loss or damage to any Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehousemen, carrier, forwarding agency, consignee or other bailee if such Person has been selected
by Agent in good faith. 
 (b) Obligations and Liabilities with Respect to Collateral. No Secured Party and no Related
Person thereof shall be liable for failure to demand, collect or realize upon any Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other
Person or to take any other action whatsoever with regard to any Collateral. The powers conferred on Agent hereunder shall not impose any duty upon any other Secured Party to exercise any such powers. The other Secured Parties shall be accountable
only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their respective officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. 
 ARTICLE VIII 
 MISCELLANEOUS 

Section 8.1 Reinstatement. Each Grantor agrees that, if any payment made by any Credit Party or other Person and
applied to the Secured Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of any Collateral are required to be
returned by any Secured Party to such Credit Party, its estate, trustee, receiver or any other party, including any Grantor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or
repayment, any Lien or other Collateral securing such liability shall be and remain in full force and effect, as fully as if such payment had never been made. If, prior to any of the foregoing, (a) any Lien or other Collateral securing such
Grantor’s liability hereunder shall have been released or terminated by virtue of the foregoing or (b) any 

  
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provision of the Guaranty hereunder shall have been terminated, cancelled or surrendered, such Lien, other Collateral or provision shall be reinstated in full force and effect and such prior
release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of any such Grantor in respect of any Lien or other Collateral securing such obligation or the amount of such payment.

 Section 8.2 Release of Collateral. (a) At the time provided in subsection 8.10(b)(iii) of the Credit
Agreement, the Collateral shall be released from the Lien created hereby and this Agreement and all obligations (other than those expressly stated to survive such termination) of Agent and each Grantor hereunder shall terminate, all without delivery
of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors. At the request of any Grantor following any such termination, Agent shall deliver to such Grantor any Collateral of such Grantor
held by Agent hereunder and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 
 (b) If Agent shall be directed or permitted pursuant to subsection 8.10(b) of the Credit Agreement to release any Lien or any Collateral, such Collateral shall be released from the Lien created hereby to
the extent provided under, and subject to the terms and conditions set forth in, such subsection 8.10(b). In connection therewith, Agent, at the request of any Grantor, shall execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such release. 
 (c) At the time provided in subsection 8.10(b) of the Credit Agreement and at
the request of the Borrower Representative, a Grantor shall be released from its obligations hereunder in the event that all the Stock and Stock Equivalents of such Grantor shall be sold to any Person that is not a Borrower or the Subsidiaries of a
Borrower in a transaction permitted by the Loan Documents. 
 Section 8.3 Independent Obligations. The
obligations of each Grantor hereunder are independent of and separate from the Secured Obligations and the Guaranteed Obligations. If any Secured Obligation or Guaranteed Obligation is not paid when due, or upon any Event of Default, Agent may, at
its sole election, proceed directly and at once, without notice, against any Grantor and any Collateral to collect and recover the full amount of any Secured Obligation or Guaranteed Obligation then due, without first proceeding against any other
Grantor, any other Credit Party or any other Collateral and without first joining any other Grantor or any other Credit Party in any proceeding. 
 Section 8.4 No Waiver by Course of Conduct. No Secured Party shall by any act (except by a written instrument pursuant to Section 8.5), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Secured Party, any right, power or privilege hereunder
shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by any Secured Party of
any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that such Secured Party would otherwise have on any future occasion. 

  
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 Section 8.5 Amendments in Writing. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 9.1 of the Credit Agreement; provided, however, that annexes to this Agreement may be supplemented (but no existing
provisions may be modified and no Collateral may be released) through Pledge Amendments and Joinder Agreements, in substantially the form of Annex 1 and Annex 2, respectively, in each case duly executed by Agent and each
Grantor directly affected thereby. 
 Section 8.6 Additional Grantors; Additional Pledged Collateral.
(a) Joinder Agreements. If, at the option of a Borrower or as required pursuant to Section 4.13 of the Credit Agreement, a Borrower shall cause any Subsidiary that is not a Grantor to become a Grantor hereunder, such Subsidiary
shall execute and deliver to Agent a Perfection Certificate, a Joinder Agreement substantially in the form of Annex 2 (or in such other form as the Agent may reasonably request), and such other documentation as the Agent may reasonably
request, and shall thereafter for all purposes be a party hereto and have the same rights, benefits and obligations as a Grantor party hereto on the Restatement Effective Date. 

(b) Pledge Amendments. To the extent any Pledged Collateral has not been delivered as of the Restatement Effective Date, such
Grantor shall deliver a pledge amendment duly executed by the Grantor in substantially the form of Annex 1 (or in such other form as the Agent may reasonably request) (each, a “Pledge Amendment”). Such Grantor authorizes
Agent to attach each Pledge Amendment to this Agreement. 
 Section 8.7 Private Label Credit Card Access and
Monitoring Agreement. The provisions of this Agreement supplement the provisions of Private Label Credit Card Access and Monitoring Agreement. Nothing contained in the Private Label Credit Card Access and Monitoring Agreement shall derogate from
any of the rights or remedies of the Agent or any of the other Secured Parties hereunder. 
 Section 8.8
Marshaling. Neither the Agent nor any other Secured Party shall be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of payment of, the Obligations or the
Guaranteed Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the rights and remedies of the Agent or any other Secured Party hereunder and of the Agent or any other
Secured Party in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees
that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Agent’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of
the Obligations or the Guaranteed Obligations or under which any of the Obligations or the Guaranteed Obligations is outstanding or by which any of the Obligations or the Guaranteed Obligations is secured or payment thereof is otherwise assured,
and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws. 

Section 8.9 Notices. All notices, requests and demands to or upon Agent or any Grantor hereunder shall be effected in
the manner provided for in Section 9.2 of the Credit Agreement; provided, however, that any such notice, request or demand to or upon any Grantor shall be addressed to the Borrowers’ notice address set forth in such
Section 9.2. 

  
 29 

 Section 8.10 Successors and Assigns. This Agreement shall be binding upon
the successors and assigns of each Grantor and shall inure to the benefit of each Secured Party and their successors and assigns; provided, however, that no Grantor may assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of Agent. 
 Section 8.11 Counterparts. This Agreement
may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature
pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or by Electronic Transmission shall be as effective as delivery of a
manually executed counterpart hereof. 
 Section 8.12 Severability. Any provision of this Agreement being
held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of such provision in any other jurisdiction.

 Section 8.13 Governing Law. This Agreement and the rights and obligations of the parties hereto shall be
governed by, and construed and interpreted in accordance with, the laws of the State of New York. 
 Section 8.14
Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO, OR DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH, ANY LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED THEREIN OR RELATED THERETO (WHETHER FOUNDED IN CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO OTHER PARTY AND NO RELATED PERSON 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 THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 8.12. 
 EACH GRANTOR AGREES TO BE BOUND BY THE PROVISIONS OF SUBSECTIONS 9.18(b) AND 9.18(c) OF THE CREDIT AGREEMENT.

 Section 8.15 TCNB Pledged Stock. Notwithstanding anything to the contrary contained in this Agreement or
in any other Loan Document, in no event shall Agent take any voting, remedial or other action with respect to any Collateral constituting Pledged Stock of TCNB unless and until all authorizations, approvals and other actions by, and all notices to
and filings with, all Governmental Authorities necessary under any Requirement of Law have been obtained, taken and made, as applicable (including without limitation the prior filing with and approval of the Office of the Comptroller of the
Currency, United States Department of the Treasury). 

  
 30 

 Section 8.16 Intercreditor Agreement. Notwithstanding anything herein to
the contrary, the parties hereto acknowledge that the security interest and Liens granted to the Agent herein for the benefit of the Agent, the Secured Parties and the other holders of the Secured Obligations and the rights, remedies, duties and
obligations provided for herein are subject to the terms of the Term Loan B Intercreditor Agreement. In the event of any conflict or inconsistency between the provisions of this Agreement and the Term Loan B Intercreditor Agreement, the provisions
of the Term Loan B Intercreditor Agreement shall control. Nothing contained in the Term Loan B Intercreditor Agreement shall be deemed to modify any of the provisions of this Agreement, which, as among the Grantors and Agent shall remain in full
force and effect in accordance with its terms. Each of the parties hereto agrees that it will be bound by and will take no actions contrary to the provisions of the Term Loan B Intercreditor Agreement. 

Section 8.17 Unlimited Companies. Notwithstanding any provisions to the contrary contained in this Agreement, any
other Loan Document or any other document or agreement among all or some of the parties hereto, with regard to any Collateral which consists of shares or membership interests in an unlimited company, unlimited company or unlimited liability
corporation incorporated or otherwise formed under the laws of the Province of Nova Scotia or any other applicable province of Canada (the “Pledged ULC Shares”), any Grantor who has granted a security interest in Pledged ULC Shares
or any Grantor that is as of the date of this Agreement a sole registered or beneficial owner of Pledged ULC Shares will remain so until such time as such Pledged ULC Shares are fully and effectively transferred into the name of Agent, any of the
Lenders or other Secured Parties, or any other Person on the books and records of such unlimited company, unlimited company or unlimited liability corporation (“ULC”). Nothing in this Agreement, any other Loan Document or any other
document or agreement among all or some of the parties hereto is intended to or shall constitute Agent, any of the Lenders or other Secured Parties or any Person other than such Grantor to be a member or shareholder of any ULC for the purposes of
the Companies Act (Nova Scotia) or other Applicable Law until such time as written notice is given to such Grantor and all further steps are taken so as to register Agent, a Lender, a Secured Party or another Person as holder of the Pledged ULC
Shares on the books of the ULC. The granting of the security interest pursuant to this Agreement or any other Loan Document is not intended to make Agent, or any of the Lenders or other Secured Parties, a successor to such Grantor as a member or
shareholder of any ULC, and neither Agent nor any of the Lenders or other Secured Parties or any of their respective successors or assigns hereunder shall be deemed to become a member or shareholder of any ULC by accepting this Agreement or any
other Loan Document or exercising any right granted herein or therein unless and until such time, if any, when Agent, any of the Lenders or other Secured Parties or any successor or assign thereof expressly becomes a registered member or shareholder
of such ULC. Such Grantor shall be entitled to receive and retain for its own account any dividends or other distributions, if any, in respect of the Collateral which is Pledged ULC Shares (subject to any security interest which such Grantor has
granted in such dividend or other distribution) and shall have the right to vote such Pledged ULC Shares and to control the direction, management and policies of the ULC issuing such Pledged ULC Shares to the same extent as such Grantor would if
such Pledged ULC Shares were not the subject of a Lien granted to Agent, any of the Lenders or other Secured Parties, or to any other Person pursuant hereto or 

  
 31 

 
pursuant to any other Loan Document. To the extent any provision hereof or any other Loan Document would otherwise have the effect of constituting Agent, any of the Lenders or any Person other
than a Grantor as a member or shareholder of any ULC prior to such time as written notice is delivered to such Grantor and the ULC Shares held by such Grantor are registered in the name of Agent, such provision shall be severed herefrom and be
ineffective with respect to the relevant Pledged ULC Shares without otherwise invalidating or rendering unenforceable this Agreement or such other Loan Document or invalidating or rendering unenforceable such provision insofar as it relates to
Collateral other than Pledged ULC Shares. Notwithstanding anything herein or in any other Loan Document to the contrary neither Agent, the Lenders nor any of the Secured Parties nor any of their respective successors or assigns shall be deemed to
have assumed or otherwise become liable for any debts or obligations of any ULC. Except upon the exercise by Agent, any of the Lenders or other Persons of rights to sell or otherwise dispose of Pledged ULC Shares or other remedies following the
occurrence and during the continuance of an Event of Default, and upon notice to the Grantor which has not been rescinded, such Grantor shall not cause or permit, or enable any ULC in which it holds Pledged ULC Shares to cause or permit, Agent or
any of the Lenders or other Secured Parties to: (a) be registered as member or shareholder of such ULC; (b) have any notation entered in its favor in the share register of such ULC; (c) be held out as member or shareholder of such
ULC; (d) receive, directly or indirectly, any dividends, property or other distributions from such ULC by reason of Agent, any of the Lenders or other Secured Parties or any other Person holding a security interest in the Pledged ULC Shares; or
(e) act as a member or shareholder of such ULC, or exercise any rights of a member or shareholder of such ULC, including the right to attend a meeting of such ULC or vote the shares of such ULC. 

Section 8.18 Amendment and Restatement. This Agreement shall amend and restate in its entirety the Original Guaranty
and Security Agreement on the Restatement Effective Date. On the Restatement Effective Date, all the rights and obligations of the respective parties under the Original Guaranty and Security Agreement shall be subsumed within and governed by this
Agreement; provided, that the provisions of the Original Guaranty and Security Agreement shall remain in full force and effect prior to the Restatement Effective Date, and that the security interests granted, and obligations guaranteed
pursuant to the Original Guaranty and Security Agreement shall continue to be in effect hereunder. 
 [Signature Pages Follow]

  
 32 

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

			
	Grantors:
	
	THE TALBOTS, INC.
		
	By:	 	 /s/ Michael Scarpa

	Name:	 	Michael Scarpa
	Title:	 	 Chief Operating Officer, Chief Financial
 Officer and Treasurer

  

			
	THE TALBOTS GROUP, LIMITED PARTNERSHIP
		
	By:	 	 /s/ Michael Scarpa

	Name:	 	Michael Scarpa
	Title:	 	Vice President and Treasurer

  

			
	 TALBOTS CLASSICS FINANCE COMPANY,
 INC.

		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS CLASSICS, INC.
		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS IMPORT, LLC
		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

			
	BIRCH POND REALTY CORPORATION
		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS (CANADA), INC.
		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS (CANADA) CORPORATION
		
	By:	 	 /s/ Richard T. O’Connell, Jr.

	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

 ACCEPTED AND AGREED  
 as of the date first above written: 
 GENERAL ELECTRIC CAPITAL 

CORPORATION, as Agent 
  

			
	By:	 	 /s/ Mark J. Forti

	Name:	 	Mark J. Forti
	Title:	 	Duly Authorized Signatory

 ACKNOWLEDGMENT OF GRANTOR 
 State of         Massachusetts                 ) 

                         
                                     )    
         ss. 
 County of
        Plymouth                     ) 

On this 15 day of February, 2012 before me personally appeared Michael Scarpa, proved to me on the basis of satisfactory evidence
to be the person who executed the foregoing instrument on behalf of The Talbots, Inc. and The Talbots Group, Limited Partnership, who being by me duly sworn did depose and say that he is an authorized officer of said corporation, that the said
instrument was signed on behalf of said corporation as authorized by its Board of Directors and that he acknowledged said instrument to be the free act and deed of said corporation. 

 

	
	 /s/ Laurine A. Riley

	Notary Public

 ACKNOWLEDGMENT OF GRANTOR 
 State of         Massachusetts                 ) 

                         
                                     )
            ss. 
 County of
        Plymouth                     ) 

On this 15 day of February, 2012 before me personally appeared Richard T. O’Connell, Jr., proved to me on the basis of
satisfactory evidence to be the person who executed the foregoing instrument on behalf of Talbots Classics Finance Company, Inc., Talbots Classics, Inc., Talbots Import, LLC, Birch Pond Realty Corporation, TALBOTS (CANADA), INC., and Talbots
(Canada) Corporation, who being by me duly sworn did depose and say that he is an authorized officer of said corporation, that the said instrument was signed on behalf of said corporation as authorized by its Board of Directors and that he
acknowledged said instrument to be the free act and deed of said corporation. 
  

	
	 /s/ Laurine A. Riley

	Notary Public

 ANNEX 1 
 TO 
 AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT1 

FORM OF PLEDGE AMENDMENT 
 This Pledge Amendment, dated as of             , 20    , is delivered pursuant to Section 8.6 of the Amended and
Restated Guaranty and Security Agreement, dated as of February 16, 2012, by THE TALBOTS, INC., a Delaware corporation (the “Company”), THE TALBOTS GROUP, LIMITED PARTNERSHIP, a Massachusetts limited partnership
(the “Talbots Group”), TALBOTS CLASSICS FINANCE COMPANY, INC., a Delaware corporation (“Talbots Finance” and, together with the Company and the Talbots Group, collectively, the “Borrowers”)
and each of the other Persons party thereto as Grantors in favor of General Electric Capital Corporation (“GE Capital”), as Agent for the Secured Parties referred to therein (as such agreement may be amended, restated, supplemented
or otherwise modified from time to time, the “Guaranty and Security Agreement”). Capitalized terms used herein without definition are used as defined in the Guaranty and Security Agreement. 

The undersigned Grantor hereby agrees that this Pledge Amendment may be attached to the Guaranty and Security Agreement and that the
Pledged Collateral listed on Annex 1-A to this Pledge Amendment shall be and become part of the Collateral referred to in the Guaranty and Security Agreement and shall secure all Secured Obligations of the undersigned. 

The undersigned hereby represents and warrants that each of the representations and warranties contained in Article IV of the Guaranty
and Security Agreement is true and correct and as of the date hereof as if made on and as of such date. 
  

			
	[GRANTOR]
		
	By:	 	  

	Name:	 	
	Title:	 	

  
  

	1 	 To be used for pledge of Additional Pledged Collateral by existing Grantor. 

  
 A1-1

 Annex 1-A 
 PLEDGED STOCK 
  

									
	 ISSUER
	 	 CLASS
	 	 CERTIFICATE

NO(S).
	 	 PAR VALUE
	 	 NUMBER OF

SHARES,

UNITS OR

INTERESTS

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

 PLEDGED DEBT INSTRUMENTS 

 

									
	 ISSUER
	 	 DESCRIPTION OF

DEBT
	 	 CERTIFICATE

NO(S).
	 	 FINAL

MATURITY
	 	 PRINCIPAL

AMOUNT

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  
 A1-2

			
	 ACKNOWLEDGED AND AGREED
 as of the date first above written:

	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as Agent

		
	By:	 	  

	Name:	 	
	Title:	 	Duly Authorized Signatory

  
 A1-3

 ANNEX 2 
 TO 
 AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT 

FORM OF JOINDER AGREEMENT 
 This JOINDER AGREEMENT, dated as of             , 20    , is delivered pursuant to Section 8.6 of the Amended and
Restated Guaranty and Security Agreement, dated as of February 16, 2012, by THE TALBOTS, INC., a Delaware corporation (the “Company”), THE TALBOTS GROUP, LIMITED PARTNERSHIP, a Massachusetts limited partnership
(the “Talbots Group”), TALBOTS CLASSICS FINANCE COMPANY, INC., a Delaware corporation (“Talbots Finance” and, together with the Company and the Talbots Group, collectively, the “Borrowers”)
and each of the other Persons party thereto as Grantors in favor of General Electric Capital Corporation (“GE Capital”), as Agent for the Secured Parties referred to therein (as such agreement may be amended, restated, supplemented
or otherwise modified from time to time, the “Guaranty and Security Agreement”). Capitalized terms used herein without definition are used as defined in the Guaranty and Security Agreement. 

By executing and delivering this Joinder Agreement, the undersigned (an “Additional Grantor”), as provided in Section 8.6
of the Guaranty and Security Agreement, hereby becomes a party to the Guaranty and Security Agreement as a Grantor thereunder with the same force and effect as if originally named as a Grantor therein and, without limiting the generality of the
foregoing, as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of the Additional Grantor, hereby mortgages, pledges and
hypothecates to Agent for the benefit of the Secured Parties, and grants to Agent for the benefit of the Secured Parties a lien on and security interest in, all of its right, title and interest in, to and under the Collateral of the Additional
Grantor and expressly assumes all obligations and liabilities of a Grantor thereunder. The undersigned Additional Grantor hereby agrees to be bound as a Grantor for the purposes of the Guaranty and Security Agreement. 

The information set forth in Annex 1-A is hereby added to the information set forth in Schedules 1, 2, and 3 to the Guaranty
and Security Agreement and Schedules 3.9, 3.16, 3.20, 3.21 and 3.22 to the Credit Agreement. By acknowledging and agreeing to this Joinder Agreement, the Additional Grantor hereby agrees that this Joinder Agreement may be attached to the Guaranty
and Security Agreement and that the Pledged Collateral listed on Annex 1-A to this Joinder Amendment shall be and become part of the Collateral referred to in the Guaranty and Security Agreement and shall secure all Secured Obligations
of the undersigned. 
 The undersigned hereby represents and warrants that each of the representations and warranties contained
in Article IV of the Guaranty and Security Agreement applicable to it is true and correct on and as the date hereof as if made on and as of such date. 

  
 A2-1

 IN WITNESS WHEREOF, THE UNDERSIGNED HAS CAUSED THIS JOINDER AGREEMENT TO BE DULY EXECUTED
AND DELIVERED AS OF THE DATE FIRST ABOVE WRITTEN. 
  

			
	[ADDITIONAL GRANTOR]
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 A2-2

			
	 ACKNOWLEDGED AND AGREED 
 as of the date first above written:

	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as Agent

		
	By:	 	  

	Name:	 	
	Title:	 	Duly Authorized Signatory

  
 A2-3

 ANNEX 3 
 TO 
 AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT 

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT1 
 THIS AMENDED AND RESTATED [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT, dated as of             , 20    , is made by
each of the entities listed on the signature pages hereof (each a “Grantor” and, collectively, the “Grantors”), in favor of General Electric Capital Corporation (“GE Capital”), as administrative
agent (in such capacity, together with its successors and permitted assigns, “Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below). 

W I T N E S S E T H: 
 WHEREAS, pursuant to the Amended and Restated Credit Agreement of even date herewith (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) by and among The Talbots, Inc., a Delaware corporation (the “Company”), The Talbots Group, Limited Partnership, a Massachusetts limited partnership (the “Talbots Group”), Talbots Classics
Finance Company, Inc., a Delaware corporation (“Talbots Finance” and, together with the Company and the Talbots Group, collectively, the “Borrowers”), the Company, as Borrower Representative, the other Credit
Parties party thereto, the Lenders and GE Capital, as Agent, the Lenders have severally agreed to make extensions of credit to the Borrowers upon the terms and subject to the conditions set forth therein; 

WHEREAS, each Grantor has agreed, pursuant to an Amended and Restated Guaranty and Security Agreement of even date herewith in favor of
Agent (as such agreement may be amended, restated, supplemented or otherwise modified from time to time, the “Guaranty and Security Agreement”), to guarantee the Obligations (as defined in the Credit Agreement) of each Borrower; and

 WHEREAS, all of the Grantors are party to the Guaranty and Security Agreement pursuant to which the Grantors are required to
execute and deliver this [Copyright] [Patent] [Trademark] Security Agreement. 
 NOW, THEREFORE, in consideration of the
premises and to induce the Lenders and Agent to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrowers thereunder, each Grantor hereby agrees with Agent as follows: 

Section 1. Defined Terms. Capitalized terms used herein without definition are used as defined in the Guaranty and
Security Agreement. 
 Section 2. Grant of Security Interest in [Copyright] [Trademark] [Patent] Collateral.
Each Grantor, as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of such 

 
  

	1 	 Separate agreements should be executed relating to each Grantor’s respective Copyrights, Patents, and Trademarks.

  
 A3-1

 
Grantor, hereby mortgages, pledges and hypothecates to Agent for the benefit of the Secured Parties, and grants to Agent for the benefit of the Secured Parties a Lien on and security interest in,
all of its right, title and interest in, to and under the following Collateral of such Grantor (the “[Copyright] [Patent] [Trademark] Collateral”): 
 (a) [all of its registered Copyrights and all IP Licenses providing for the grant by or to such Grantor of any right under any Copyright, including, without limitation, those referred to on
Schedule I hereto; 
 (b) all renewals, reversions and extensions of the foregoing; and 

(c) all income, royalties, proceeds and Liabilities at any time due or payable or asserted under and with respect to any of the
foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation, dilution, violation or other impairment thereof.] 

or 

(a) [all of its Patents and all IP Licenses providing for the grant by or to such Grantor of any right under any Patent, including,
without limitation, those referred to on Schedule I hereto; 
 (b) all reissues, reexaminations, continuations,
continuations-in-part, divisionals, renewals and extensions of the foregoing; and 
 (c) all income, royalties, proceeds and
Liabilities at any time due or payable or asserted under and with respect to any of the foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation,
dilution, violation or other impairment thereof.] 
 or 

(a) [all of its Trademarks and all IP Licenses providing for the grant by or to such Grantor of any right under any Trademark, including,
without limitation, those referred to on Schedule I hereto; 
 (b) all renewals and extensions of the foregoing;

 (c) all goodwill of the business connected with the use of, and symbolized by, each such Trademark; and 

(d) all income, royalties, proceeds and Liabilities at any time due or payable or asserted under and with respect to any of the
foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation, dilution, violation or other impairment thereof.] 

Section 3. Guaranty and Security Agreement. The security interest granted pursuant to this [Copyright] [Patent]
[Trademark] Security Agreement is granted in conjunction with the 

  
 A3-2

 
security interest granted to Agent pursuant to the Guaranty and Security Agreement and each Grantor hereby acknowledges and agrees that the rights and remedies of Agent with respect to the
security interest in the [Copyright] [Patent] [Trademark] Collateral made and granted hereby are more fully set forth in the Guaranty and Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set
forth herein. 
 Section 4. Grantor Remains Liable. Each Grantor hereby agrees that, anything herein to the
contrary notwithstanding, such Grantor shall assume full and complete responsibility for the prosecution, defense, enforcement or any other necessary or desirable actions in connection with their [Copyrights] [Patents] [Trademarks] and IP Licenses
subject to a security interest hereunder. 
 Section 5. Counterparts. This [Copyright] [Patent] [Trademark]
Security Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this [Copyright] [Patent] [Trademark] Security Agreement by facsimile transmission or
Electronic Transmission shall be as effective as delivery of a manually executed counterpart of this [Copyright] [Patent] [Trademark] Security Agreement 
 Section 4. Governing Law. This [Copyright] [Patent] [Trademark] Security Agreement and the rights and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York. 
 [SIGNATURE PAGES FOLLOW] 

  
 A3-3

 IN WITNESS WHEREOF, each Grantor has caused this [Copyright] [Patent] [Trademark] Security
Agreement to be executed and delivered by its duly authorized officer as of the date first set forth above. 
  

			
	Very truly yours,
	
	Grantors:
	
	THE TALBOTS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	TALBOTS CLASSICS FINANCE COMPANY, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	THE TALBOTS GROUP, LIMITED PARTNERSHIP
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	TALBOTS CLASSICS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	TALBOTS IMPORT, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

 [SIGNATURE PAGE TO [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT] 

  
 A3-4

			
	Grantors (cont’d):
	
	BIRCH POND REALTY CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	TALBOTS (CANADA), INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	
	TALBOTS (CANADA) CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

 [SIGNATURE PAGE TO [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT] 

  
 A3-5

 ACKNOWLEDGED AND AGREED 
 as of the date first above written: 
 GENERAL ELECTRIC CAPITAL 

CORPORATION, as Agent 
  

			
	By:	 	  

	Name:	 	
	Title:	 	Duly Authorized Signatory

 [SIGNATURE PAGE TO [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT] 

  
 A3-6

 ACKNOWLEDGMENT OF GRANTOR 

 

			
	State of                          
  )	 	 
	                              
          )	 	ss.
	County of                        )	 	

 On this         day of
            , 20     before me personally appeared
                    , proved to me on the basis of satisfactory evidence to be the person who executed the foregoing instrument on behalf of
                        , who being by me duly sworn did depose and say that he is an authorized officer of said corporation,
that the said instrument was signed on behalf of said corporation as authorized by its Board of Directors and that he acknowledged said instrument to be the free act and deed of said corporation. 

 

	
	
	  
 Notary
Public

  
 A3-7

 SCHEDULE I 
 TO 
 [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT 

[Copyright] [Patent] [Trademark] Registrations 
  

	1.	REGISTERED [COPYRIGHTS] [PATENTS] [TRADEMARKS] 

 [Include Registration Number and Date] 
  

	2.	[COPYRIGHT] [PATENT] [TRADEMARK] APPLICATIONS 

 [Include Application Number and Date] 
  

	3.	IP LICENSES 

 [Include complete
legal description of agreement (name of agreement, parties and date)] 

  
 A3-8Amended and Restated Private Label Credit Card Access and Monitoring Agreement

 Exhibit 10.5 
 AMENDED AND RESTATED PRIVATE LABEL CREDIT CARD ACCESS AND 
 MONITORING
AGREEMENT 
 This AMENDED AND RESTATED PRIVATE LABEL CREDIT CARD ACCESS AND MONITORING AGREEMENT (this
“Agreement”) is dated as of February 16, 2012 and is entered into by and among (a) THE TALBOTS, INC., a Delaware corporation (the “Company”), (b) TALBOTS CLASSICS FINANCE COMPANY, INC., THE
TALBOTS GROUP, LIMITED PARTNERSHIP, TALBOTS IMPORT, LLC, TALBOTS (CANADA), INC., TALBOTS CLASSICS, INC., BIRCH POND REALTY CORPORATION, and TALBOTS (CANADA) CORPORATION (each, individually, a “Credit Party” and,
collectively, the “Credit Parties”), (c) TALBOTS CLASSICS NATIONAL BANK, a national banking association (“Talbots Bank” and together with the Company and the other Credit Parties, collectively, the
“PLCC Parties”), (d) GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as agent for the several financial institutions from time to time party to the Credit Agreement (as defined below) (“Revolving
Agent”), and (e) WELLS FARGO BANK, NATIONAL ASSOCIATION (as “Term Agent”; and together with the Revolving Agent, each individually an “Agent” and together, the “Agents”), as
agent for the several financial institutions from time to time party to the Term Loan Agreement (as defined below). 

WHEREAS, the Company, certain of the other Credit Parties, the Revolving Agent and the lenders (referred to herein as the
“Revolving Lenders”) entered into that certain Amended and Restated Credit Agreement, dated as of the date hereof (as the same may be amended, amended and restated, modified, supplemented, refinanced or replaced (in whole or in
part) and in effect from time to time, and including any financing provided by the Revolving Agent to any of the Credit Parties, including any such financing provided in any bankruptcy or insolvency proceeding involving any of the Credit Parties,
the “Credit Agreement”); 
 WHEREAS, the Company, the other Credit Parties, the Term Agent and the
lenders (referred to herein as the “Term Lenders”, and, together with the Revolving Lenders, the “Lenders”) entered into that certain Term Loan Agreement, dated as of the date hereof (as the same may be amended,
amended and restated, modified, supplemented, refinanced or replaced (in whole or in part) and in effect from time to time, and including any financing provided by the Term Agent to any of the Credit Parties, including any such financing provided in
any bankruptcy or insolvency proceeding involving any of the Credit Parties, the “Term Loan Agreement” and, together with the Credit Agreement, the “Financing Arrangements”); 

WHEREAS, pursuant to the Financing Arrangements, the Credit Parties assigned and granted a security interest and lien in, among
other things, the PLCC Receivables (as defined below) and the proceeds thereof to the Agents on behalf of themselves and the Lenders; 
 WHEREAS, Talbots Bank, the Company and the PLCC Parties are a group of interrelated corporations and entities, the success of any of which depends upon the success of the others; 

WHEREAS, this Agreement is a condition precedent to the effectiveness of the Credit Agreement and the Term Loan Agreement;

 WHEREAS, Talbots Bank, the Company, certain of the other Credit Parties and the Revolving Agent entered into that
certain Private Label Credit Card Access and Monitoring Agreement, dated as of April, 7, 2010 (the “Original Access Agreement”); 
 WHEREAS, the parties hereto desire to amend and restate the Original Access Agreement as set forth herein; 

 WHEREAS, each of the parties hereto expects to receive substantial direct and
indirect benefits from the entering into of the Financing Arrangements and the other loan documents in connection therewith by the Company and the other Credit Parties. 
 NOW, THEREFORE, in consideration of the foregoing, and in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree that: 
 1. Definitions. Capitalized terms used but not otherwise defined in
this Agreement shall have the meaning set forth in the Credit Agreement . The term “including” is not limiting and means “including without limitation.” For purposes of this Agreement, the following terms shall have the following
meanings ascribed thereto: 
 “PLCC Books and Records” is defined in Section 2 hereto. 

“Private Label Credit Card Infrastructure” means (a) PLCC Books and Records (including all credit applications,
account documentation and charge slips), (b) all information technology systems (including mainframe servers, other computer systems and related software), (c) all owned, leased, or controlled property of any PLCC Parties (including all
collection centers, customer service centers, remittance centers, statement preparation, and locations where PLCC Books and Records are maintained), (d) any bank product services utilized from time to time in connection with operating,
collections, other depository or disbursement accounts, including automatic clearinghouse, controlled disbursement, depository, electronic funds transfer, information reporting, lockbox, stop payment, overdraft and/or wire transfer services,
(e) all personnel (IT, Customer Service, Collections, Remit, Operations) in each case, in any way relating to the Private Label Credit Card Program, and (f) other servicing arrangements relating to the Private Label Credit Card Program.

 “Private Label Credit Card Program” means the Private Label Credit Card program(s) established from time to
time by the PLCC Parties (or certain of them) pursuant to the Private Label Credit Card Agreements. 
 “PLCC
Receivables” means all of the PL Credit Card Receivables of the PLCC Parties that arise from Private Label Credit Cards, and including any late fees, charges, interest and other amounts thereon. 

2. (a) This Agreement evidences each Agent’s right to access and monitor, among other things, the PLCC Books and Records, Private
Label Credit Card Infrastructure, Private Label Credit Card Program and the PLCC Receivables. The PLCC Parties will comply with instructions from the Control Agent (as defined below) as set forth herein. For purposes of this Agreement, the
“Control Agent” shall mean (i) the Revolving Agent at all times prior to the date on which the Revolving Agent shall have delivered a notice to all the parties hereto terminating this Agreement with respect to the Revolving Agent, and
(ii) the Term Agent at all times thereafter. For the avoidance of doubt, there shall at all times be only one Control Agent. 
 (b) Maintenance of the Private Label Credit Card Program. Each PLCC Party shall maintain, and shall cause each of its Subsidiaries to maintain, (a) proper books of record and account in which
full, true and correct entries shall be made of all financial transactions and matters involving or relating to the Private Label Credit Card Program and the PLCC Receivables (collectively, “PLCC Books and Records”) and (b) the
Private Label Credit Card Infrastructure in a manner substantially similar to that maintained by the PLCC Parties on the Closing Date. Without limiting the foregoing, each of the PLCC Parties shall maintain each of the following in accordance with
reasonable and prudent industry standards and practices and, in any event, with a level of standards and practices at least as high as those maintained by the PLCC Parties on the Closing Date: 

  
 2 

 (i) access to all systems and centers; 

(ii) adequate receivables information and applicable screens, customer service and collection notes and records of
transactions; 
 (iii) adequate interactive voice response systems and customer service dialers; 

(iv) adequate collections center; 
 (v) adequate customer service center; 
 (vi) adequate remittance
center; 
 (vii) ACH transmission capability; 

(viii) data backup and recovery capability; 

(ix) adequate personnel (including related to information technology, collections, remittances, customer service and other
operations); 
 (x) adequate access to account information and backup documentation; and 

(xi) adequate account collection and recovery systems and processes. 

3. Access to Private Label Credit Card Program. Each PLCC Party shall, and shall cause each of its Subsidiaries to, with respect to
each owned, leased, or controlled property, during normal business hours and upon reasonable advance notice (unless an “Event of Default” shall have occurred and be continuing under and as defined in either of the Financing Arrangements,
in which event no notice shall be required and each Agent and their Related Persons shall have access at any and all times during the continuance thereof): (a) provide access to such property to each Agent and any of their Related Persons;
(b) provide access to the Private Label Credit Card Infrastructure to each Agent and any of their Related Persons for the purpose of reviewing and monitoring the Private Label Credit Card Program and the PLCC Receivables, (c) permit either
Agent and any of their Related Persons to conduct field examinations, appraisals, valuations, audit, inspect and make extracts and copies (or take originals if reasonably necessary) from all of such PLCC Party’s Books and Records, and
(d) evaluate and make verifications of the Private Label Credit Card Program and the PLCC Receivables in any manner and through any medium that such Agent or such Related Person considers advisable, in each instance, at the Credit Parties’
expense; provided that the PLCC Parties shall only be obligated to reimburse each Agent pursuant to this Section 3 for any costs incurred (A) with respect to not more than three (3) such field examinations, appraisals,
valuations and audits by such Agent in any twelve (12) consecutive month period in the event that (x) no Event of Default has occurred and is continuing and (y) Availability shall not have been less than an amount equal to twenty
percent (20%) of the Maximum Borrowing Availability (without giving effect to the Term Loan Push Down Reserve or Term Loan Reserve Amount) (based upon the applicable Borrowing Base Certificate received by the Agents at such time) at any time
during such twelve (12) consecutive month period, (B) with respect to not more than four (4) such field examinations, appraisals, valuations and audits by such agent in any twelve
(12)

  
 3 

 
consecutive month period, in the event that (x) no Event of Default has occurred and is continuing and (y) Availability shall have been less than an amount equal to twenty percent
(20%) of the Maximum Borrowing Availability (without giving effect to the Term Loan Push Down Reserve or Term Loan Reserve Amount) (based upon the applicable Borrowing Base Certificate received by the Agents at such time) at any time during
such twelve (12) consecutive month period, and (C) for an unlimited number of such field examinations, appraisals, valuations and audits at any time an Event of Default under either Financing Arrangement has occurred and is continuing.
Each PLCC Party hereby irrevocably authorizes each Agent and their Related Persons to at any time and from time to time communicate directly with each of the agents, advisors, professionals and employees of the PLCC Parties regarding any aspect of
the Private Label Credit Card Program, the PLCC Receivables and the Private Label Credit Card Infrastructure, and each of the PLCC Parties shall direct each of such Persons to so communicate with each Agent and their Related Persons. Each of the
PLCC Parties shall, and shall instruct and authorize its respective agents, advisors, professionals and employees to, cooperate in all respects with each Agent and their Related Persons with respect to any matters relating to the Private Label
Credit Card Program, the PLCC Receivables and/or the Private Label Credit Card Infrastructure. 
 4. Reporting Regarding
Private Label Credit Card Program. Each PLCC Party shall, and shall cause each of its Subsidiaries to, provide each Agent and their Related Persons with the following information and materials: 

(a) Monthly Reporting. Each Fiscal Month, as soon as available and in any event within ten (10) days after the end of the
Fiscal Month (or such other times as a Borrowing Base Certificate may be delivered pursuant to the Credit Agreement), the following information, in each case, consistent with the reporting delivered to each Agent on or before the date hereof, and
otherwise in form and substance reasonably satisfactory to the Control Agent: 
 (i) An updated Portfolio Data
Spreadsheet, reflecting Private Label Credit Card Program data through the end of the most recently ended Fiscal Month and data for the prior twelve (12) months (which Portfolio Data Spreadsheet shall include, without limitation, a summary of
new accounts, credit approvals, gross sales, returns and fees and interest); 
 (ii) An updated Application Data
Spreadsheet, reflecting Private Label Credit Card Program data through the end of the most recently ended Fiscal Month and data for the prior twelve (12) months; 

(iii) An updated Credit Statistics Spreadsheet, reflecting Private Label Credit Card Program data through the end of the
most recently ended Fiscal Month and data for the prior twelve (12) months (which report shall include, without limitation, a summary of net sales (with a comparison sales summary for credit cards of major credit card issuers), outstanding
account balances, new accounts write-off analysis, and an aging of PLCC Receivables); 
 (iv) An updated
Population Stability Spreadsheet, reflecting (A) distribution of Private Label Credit Card Program customer population by same score bands as Private Label Credit Card Program applicant population and (B) average credit line for Private
Label Credit Card Program customer by applicant score band, in each case, reflecting Private Label Credit Card Program data through the end of the most recently ended Fiscal Month and data for the prior twelve (12) months (or, in the event that
continuous score band data is not available for a complete twelve (12) month period, updated Population Stability Spreadsheets, reflecting such data for each applicable score band in effect during such twelve (12) month period);

  
 4 

 (v) A monthly Collections Activity Report, setting forth the following
information with respect to the Private Label Credit Card Program: 
 (1) number of outbound phone attempts
(including automated dialer, manual dial, and interactive voice response); and 
 (2) number of inbound calls
received, and collections production statistics (including numbers for responsible party contacts, promises, kept promises, and kept promise average payment size); 

(vi) A monthly report, setting forth the percentage of abandoned calls to any customer service center with respect to the
Private Label Credit Card Program for the most recently ended Fiscal Month; and 
 (vii) A report of credit card
disputes showing the total number of accounts in dispute, the amount in dispute and the number of days the dispute has been outstanding. 
 (b) Quarterly Reporting. On a quarterly basis, as soon as available and in any event within thirty (30) days after the end of each Fiscal Quarter, the following information, in each case,
consistent with the reporting delivered to the Agents on or before the date hereof, and otherwise in form and substance reasonably satisfactory to the Agents: 
 (i) An updated Final Reserve Report, reflecting Private Label Credit Card Program data through the end of the most recently ended Fiscal Quarter and for the prior four (4) Fiscal Quarters (which
report shall set forth, without limitation, delinquent balances and a calculation of reserves established on account of PLCC Receivables); 
 (ii) A current Master File Extract, reflecting Private Label Credit Card Program data at the end of the calendar month closest to the most recently ended Fiscal Quarter; 

(1) An updated AMBS (Account Base Segment), reflecting Private Label Credit Card Program data as of the end of the
calendar month closest to the most recently ended Fiscal Quarter; 
 (2) An updated AMHB (Behavior
History—Statement Data), reflecting Private Label Credit Card Program data for the most recently ended calendar month closest to the most recently ended Fiscal Quarter; and 

(3) An updated AMPS (Account Plan Segment—Charge-Off Data), reflecting Private Label Credit Card Program data for
the most recently ended calendar month closest to the most recently ended Fiscal Quarter. 
 (c) Additional Reporting.
Promptly upon the occurrence of the same, and as may be requested by either Agent or its Related Persons, provide both Agents and their Related Persons with: 
 (i) written copies of any material changes (which shall include, without limitation, any such changes that could reasonably be expected to affect the credit quality or the economic or realizable value of
the Private Label Credit Card Program) to any Credit Policy or Procedures relating to the Private Label Credit Card Program; 

  
 5 

 (ii) written copies of any material changes to the risk management
strategies or criteria relating to the Private Label Credit Card Program; 
 (iii) written copies of any changes
to Reserves Policy or Level relating to Private Label Credit Card Program; 
 (iv) notice, together with any
relevant written information, of any material compliance issues relating to the Private Label Credit Card Program; and 
 (v) any other information or reports reasonably requested by either Agent. 
 (d)
From time to time on each date that the representations and warranties under the Credit Agreement are made or deemed to be made, the PLCC Parties hereby represent and warrant to the Agents that each payment made in respect of PLCC Receivable is
processed by the PLCC Parties on a daily basis and posted by the PLCC Parties to the relevant PLCC Receivable account on the next calendar day after such payment is received by the PLCC Parties. 

(e) All reports furnished above shall be clear of all personal information (name, address, social security number, date of birth, etc.)
and shall be delivered with all relevant copy books for the associated files. 
 5. Certain Events. In addition to, and
without limiting the other rights provided herein, 
 (a) At any time that (i) an Event of Default has occurred and is
continuing under either Financing Arrangement, or (ii) Availability shall have been less than twenty percent (20%) of the Maximum Borrowing Availability (without giving effect to the Term Loan Push Down Reserve or Term Loan Reserve Amount)
for a period of at least five (5) consecutive days (an “Availability Trigger Event”), the PLCC Parties shall assist and cooperate in good faith with the Control Agent and any of its Related Persons in the Control Agents’
efforts to, at the written election of the Control Agent, (A) perform a high level evaluation of program functionality (e.g. identifying systems and processes, high level process flows and data mapping and including a collections file) and/or
(B) plan for the potential conversion of the Private Label Credit Card Program (including the Private Label Credit Card Infrastructure) from a program administered by the PLCC Parties to a program administered by the Control Agent or its
designee (which may be an Affiliate of the Control Agent), or for such other administration of the Private Label Credit Card Program as the Control Agent may determine, including providing each Agent and their Related Persons with updated
information of the type specified in Section 4 hereof, with such frequency as may reasonably be requested by such Control Agent. 
 The provisions of this Section 5(a) may, at the election of the Control Agent, involve some or all of the following steps: 

(i) identification of a transition manager which could be appointed by the Control Agent in order to manage the Private
Label Credit Card Program; and 
 (ii) receipt of file copybooks including receivables and collections, with
recovery files for relevant accounts. 

  
 6 

 (b) At any time that (i) an Event of Default has occurred and is continuing under
either Financing Arrangement, or (ii) Availability shall have been less than twenty percent (20%) of the Maximum Borrowing Availability (without giving effect to the Term Loan Push Down Reserve or Term Loan Reserve Amount) for a period of
at least five (5) consecutive days, the PLCC Parties shall assist and cooperate in good faith with the Control Agent and any of its Related Persons in the Control Agent’s efforts to, at the written election of the Control Agent,
(A) provide an in-depth evaluation of program functionality (e.g. identifying systems and processes, detailed process flows and data mapping, and the creation and testing of a collections file to be dialed by the Control Agent onto a system
provided by the Control Agent), and/or (B) provide enhanced monitoring of the Private Label Credit Card Program by the Control Agent, and/or (C) provide enhanced planning for the conversion of the Private Label Credit Card Program
(including the Private Label Credit Card Infrastructure) from a program administered by the PLCC Parties to a program administered by the Control Agent or its designee (which may be an Affiliate of the Control Agent), including circuit or
“VPN” connectivity implementation, building of software architecture on the Control Agent’s system, and file transfer activities, collection file integration, additional reporting on daily settlement activities and PLCC Receivables
and a full and complete evaluation of the PLCC Parties processes and compliance to assess and review weaknesses and other deficiencies in the Private Label Credit Card Infrastructure and development of a remediation plan around identified
vulnerabilities. 
 (c) At any time that an Event of Default has occurred and is continuing under either Financing Arrangement,
the PLCC Parties shall, at the written election of the Control Agent, assist and cooperate in good faith with the Control Agents and any of its Related Persons in Control Agent’s efforts to implement the full conversion of the Private Label
Credit Card Program (including the Private Label Credit Card Infrastructure) from a program administered by the PLCC Parties to a program administered by the Control Agent and its Related Persons, including the administration and operation by the
Control Agent and its Related Persons of the Private Label Credit Card Program. 
 (d) Any election of the Control Agent
hereunder may be rescinded and revoked by the Control Agent upon written notice to the PLCC Parties, and such revocation shall be effective upon receipt of such written notice. 

6. Allocation of Collections of PLCC Receivables. In the event of collection of payments or other remittances in respect of PLCC
Receivables from the account debtors thereunder, the Credit Parties and the Agents agree that such payments or other remittances will be allocated first to those PLCC Receivables of such account debtor, if any, which constitute
Collateral under the Credit Agreement and second, to those PLCC Receivables of such account debtor, if any, which do not constitute Collateral under the Credit Agreement. 

7. Further Assurances. Promptly upon request by either Agent, the PLCC Parties shall (and shall cause each of their Subsidiaries
to) take such additional actions and execute such documents as such Agent may reasonably require from time to time in order to carry out more effectively the purposes of this Agreement (as determined by the Agents) and (ii) to better assure,
convey, grant, assign, transfer, preserve, protect and confirm to the Agents and the Lenders and other Secured Parties the rights granted or now or hereafter intended to be granted under this Agreement. 

8. Expenses; Indemnification by the Credit Parties. 
 (a) The Credit Parties agree to pay or reimburse upon demand each of the Agents for all reasonable out-of pocket costs and expenses incurred by such Agent, its designee, and each of its Related Persons,
in connection with the matters contemplated herein (including, without limitation, the review and analysis of reports provided by the PLCC Parties hereunder), in each case including Attorney 

  
 7 

 
Costs of such Agent and its Related Persons; provided, however, that at any time (i) after the occurrence and during the continuation of an Event of Default under either of the
Financing Arrangements, or (ii) following the occurrence of an Availability Trigger Event, the Credit Parties agree to pay or reimburse upon demand each of the Agent for all costs and expenses incurred by such Agent, its designee, or any of its
Related Persons, in connection with the matters contemplated herein, in each case including Attorney Costs of such Agent and its Related Persons and internally generated and/or allocated costs and expenses of such Agent and its Related Persons.

 (b) Without limiting Section 9.6 of the Financing Arrangements or the provisions of any other Loan Document (as such
term is defined in each of the Financing Arrangements), each Credit Party agrees, jointly and severally to indemnify, hold harmless and defend each Agent, each Lender and each of their respective Related Persons (each such Person being an
“Indemnitee”) from and against all Liabilities that may be imposed on, incurred by or asserted against any such Indemnitee (other than as a result of such Indemnitee’s gross negligence or willful misconduct, as determined by a
court of competent jurisdiction in a final non-appealable judgment or order) in any matter relating to or arising out of, in connection with or as a result of (i) this Agreement, (ii) the Private Label Credit Card Program and/or the
Private Label Credit Card Infrastructure (including any such claim relating to security breaches, disclosure or release of data (including personal data of any card holder) or similar breaches relating thereto) or (iii) any other act, event or
transaction related, contemplated in or attendant to any of the foregoing. 
 9. Miscellaneous. 

(a) The parties hereto desire and intend that this Agreement survive and persist after the commencement and during the continuation of
any Insolvency Proceeding. 
 (b) The parties hereto agree and acknowledge that monetary damages may be an inadequate remedy for
any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement. 
 (c) Neither the terms hereof, nor any action or inaction by either Agent or
any of their Related Persons pursuant to this Agreement shall be deemed to be an assumption by either Agent or any Related Person of any obligation under the Private Label Credit Card Agreements and neither the Agents nor any Related Person shall
have any obligation to any Person under any such Private Label Credit Card Agreement. The provisions hereof shall inure to the benefit of the Agents and their Related Persons, but shall not bind or obligate the Agents or their Related Persons to
take any action or assume any responsibilities. 
 (d) Neither of the Agents nor any of their Related Persons shall be liable
for any action taken or omitted to be taken by any of them hereunder or in connection with the Private Label Credit Card Program, and each PLCC Party (other than Talbots Bank to the extent prohibited by any Requirement of Law) hereby waives and
shall not assert any right, claim or cause of action based thereon, except to the extent of liabilities resulting primarily from the gross negligence or willful misconduct of such Agent or, as the case may be, such Related Person (each as determined
in a final, non-appealable judgment by a court of competent jurisdiction) in connection with the duties expressly set forth herein. 
 (e) This Agreement and the rights and obligations of the parties hereto and thereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 

  
 8 

 (f) Any legal action or proceeding with respect to this Agreement may be brought in the
courts of the State of New York located in the City of New York, Borough of Manhattan, or the courts of the United States of America for the Southern District of New York and, by execution and delivery of this Agreement, each party hereto hereby
accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. The parties to this Agreement hereby irrevocably waive any objection, including any objection to the laying of venue or based
on the grounds of forum non conveniens, that any of them may now or hereafter have to the bringing of any such action or proceeding in such jurisdictions. 
 (g) All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier
as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 

(i) if to any Credit Party or an Agent, to the address, telecopier number or telephone number specified for such Person
as set forth in Section 9.2 of the applicable Financing Arrangement; or 
 (ii) if to Talbots Bank, to the
address, telecopier number or telephone number specified for the Borrowers as set forth in Section 9.2 of the Credit Agreement. 
 Notices
and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given
when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Transmissions made by electronic mail or E-Fax to the
Agents shall be effective only (x) if such transmission is delivered in compliance with procedures of such Agent applicable at the time and previously communicated to the PLCC Parties and (y) if receipt of such transmission is acknowledged
by such Agent. Transmissions made by electronic mail or E-Fax by the Agents shall be effective only (x) if such transmission is delivered to an email address previously communicated to such Agent by the PLCC Parties and (y) if receipt of
such transmission is acknowledged by a relevant PLCC Party. 
 (h) THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS AGREEMENT AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE. Each PLCC Party hereby irrevocably waives personal service of any and all legal process, summons, notices and other documents and other service of process of any kind and consents to such service in any suit, action or
proceeding brought in the United States of America with respect to or otherwise arising out of or in connection with this Agreement by any means permitted by applicable Requirements of Law, including by the mailing thereof (by registered or
certified mail, postage prepaid) to the address of the Borrowers specified in the Financing Arrangements (and shall be effective when such mailing shall be effective, as provided therein). 

(i) This Agreement shall constitute a “Loan Document” under and as defined in each of the Credit Agreement and the Term Loan
Agreement, and all obligations (including cost and expense reimbursement obligations) included in this Agreement shall constitute: (1) Obligations under the Credit Agreement and shall be secured by the Collateral for such Obligations, and
(2) “Obligations” (as such term is defined in the Term Loan Agreement) under the Term Loan Agreement and shall be secured by the “Collateral” (as such term is defined in the Term Loan Agreement) for such
“Obligations” (as such term is defined in the Term Loan Agreement). 

  
 9 

 (j) This Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, and each such counterpart shall be deemed to be an original, and all such counterparts shall together constitute one and the same Agreement. Delivery of an executed signature page of this Agreement by
facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof. 
 (k) The
headings in this Agreement are included herein for convenience only, and shall not constitute a part of this Agreement for any other purpose, and shall not be deemed to affect the meaning or construction of any of the provisions hereof. 

(l) This Agreement may not be amended, modified or changed in any respect except by an agreement in writing signed by the parties hereto.
No waiver of any provision of this Agreement, nor consent to any departure by any party herefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. No course of dealing among the PLCC Parties and
the either Agent, the Lenders, or any of their respective Related Persons and no act or failure to act from time to time on the part of any party shall constitute a waiver, amendment or modification of any provision of this Agreement or any right or
remedy under this Agreement or under applicable laws. 
 [Signature Pages Follow] 

  
 10 

 IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth above.

  

			
	THE PLCC PARTIES:
	
	THE TALBOTS, INC.
		
	By:	 	/s/ Michael Scarpa
	Name:	 	Michael Scarpa
	Title:	 	Chief Operating Officer & Chief Financial Officer
	
	TALBOTS CLASSICS FINANCE COMPANY, INC.
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President
	
	THE TALBOTS GROUP, LIMITED PARTNERSHIP
		
	By:	 	/s/ Michael Scarpa
	Name:	 	Michael Scarpa
	Title:	 	Vice President
	
	TALBOTS CLASSICS, INC.
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President
	
	TALBOTS IMPORT, LLC
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	BIRCH POND REALTY CORPORATION
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS (CANADA), INC.
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS (CANADA) CORPORATION 
		
	By:	 	/s/ Richard T. O’Connell, Jr.
	Name:	 	Richard T. O’Connell, Jr.
	Title:	 	Vice President

  

			
	TALBOTS CLASSICS NATIONAL BANK
		
	By:	 	/s/ Michael Scarpa
	Name:	 	Michael Scarpa
	Title:	 	President

  

			
	REVOLVING AGENT:
	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION

		
	By:	 	/s/ Mark J. Forti
	Name:	 	Mark J. Forti
	Title:	 	Duly Authorized Signatory

  

			
	TERM AGENT:
	
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION

		
	By:	 	/s/ Adam D. Salter
	Name:	 	Adam D. Salter
	Title:	 	Managing Director

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