Document:

Intercreditor Agreement

 Exhibit 4.9 
  

Execution Copy 
  

  
 INTERCREDITOR AGREEMENT 
  
 dated as of October 4, 2005 
  
 among 
  
 BROOKSTONE COMPANY, INC., 
  
 the other Pledgors from time to time party hereto, 
  
 BANK OF AMERICA, N.A., 
 as initial
Credit Agreement Agent, 
  
 WELLS FARGO BANK, N.A.,

 as Trustee under the Indenture 
  
 and 
  
 WELLS FARGO BANK, N.A., 
 as Collateral Agent 
  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	 ARTICLE 1. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	2
	 SECTION 1.1
	  	 Defined Terms
	  	2
	 SECTION 1.2
	  	 Rules of Interpretation
	  	15
		
	 ARTICLE 2. REPRESENTATIONS AND WARRANTIES
	  	16
	 SECTION 2.1
	  	 Representations and Warranties of the Priority Lien Collateral Agent
	  	16
	 SECTION 2.2
	  	 Representations and Warranties of the Collateral Agent
	  	16
		
	 ARTICLE 3. THE COLLATERAL
	  	16
	 SECTION 3.1
	  	 Priority of Liens
	  	16
	 SECTION 3.2
	  	 Restrictions on Enforcement of Parity Liens
	  	16
	 SECTION 3.3
	  	 Waiver of Right of Marshalling
	  	18
	 SECTION 3.4
	  	 Discretion in Enforcement of Priority Liens
	  	19
	 SECTION 3.5
	  	 Discretion in Enforcement of Priority Lien Obligations
	  	19
	 SECTION 3.6
	  	 Insolvency or Liquidation Proceedings
	  	20
	 SECTION 3.7
	  	 Collateral Shared Equally and Ratably within Class
	  	21
	 SECTION 3.8
	  	 Actions to Perfect Security Interests
	  	21
	 SECTION 3.9
	  	 Amendment of Security Documents
	  	21
		
	 ARTICLE 4. INTERCREDITOR RELATIONS
	  	22
	 SECTION 4.1
	  	 Application of Proceeds in Distributions by the Priority Lien Collateral Agent
	  	22
	 SECTION 4.2
	  	 Application of Proceeds in Distributions by the Collateral Agent
	  	24
	 SECTION 4.3
	  	 Additional Secured Debt
	  	24
		
	 ARTICLE 5. OBLIGATIONS ENFORCEABLE BY THE BORROWER AND THE OTHER PLEDGORS
	  	25
	 SECTION 5.1
	  	 Release of Liens on Collateral
	  	25
	 SECTION 5.2
	  	 [Intentionally Omitted]
	  	26
	 SECTION 5.3
	  	 Collateral Agent not Required to Serve, File or Record
	  	26
	 SECTION 5.4
	  	 Release of Liens in Respect of Notes
	  	26
		
	 ARTICLE 6. MISCELLANEOUS PROVISIONS
	  	27
	 SECTION 6.1
	  	 Amendment of this Agreement
	  	27
	 SECTION 6.2
	  	 Voting
	  	27
	 SECTION 6.3
	  	 Further Assurances
	  	27
	 SECTION 6.4
	  	 Bailee for Perfection
	  	28
	 SECTION 6.5
	  	 Delivery of Collateral and Proceeds of Collateral
	  	28
	 SECTION 6.6
	  	 Relative Rights. Nothing in the Note Documents will:
	  	28
	 SECTION 6.7
	  	 Successors and Assigns
	  	29
	 SECTION 6.8
	  	 Delay and Waiver
	  	29
	 SECTION 6.9
	  	 Notices
	  	29
	 SECTION 6.10
	  	 Notice Following Discharge of Priority Lien Obligations
	  	31
	 SECTION 6.11
	  	 Entire Agreement
	  	31
	 SECTION 6.12
	  	 Severability
	  	31

  

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	 SECTION 6.13
	  	 Headings
	  	31
	 SECTION 6.14
	  	 Obligations Secured
	  	31
	 SECTION 6.15
	  	 Governing Law
	  	31
	 SECTION 6.16
	  	 Consent to Jurisdiction
	  	31
	 SECTION 6.17
	  	 Waiver of Jury Trial
	  	32
	 SECTION 6.18
	  	 Counterparts
	  	32
	 SECTION 6.19
	  	 Effectiveness
	  	32
	 SECTION 6.20
	  	 Additional Pledgors
	  	32
	 SECTION 6.21
	  	 Continuing Nature of this Agreement
	  	33
	 SECTION 6.22
	  	 Insolvency
	  	33
	 SECTION 6.23
	  	 Rights and Immunities of Secured Debt Representatives
	  	33
		
	 EXHIBIT A – Form of Intercreditor Agreement Joinder
	  	 

  

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 This Intercreditor Agreement (this “Agreement”) is dated as of
October 4, 2005 and is by and among Brookstone Company, Inc., a New Hampshire corporation (the “Borrower”), the other Pledgors from time to time party hereto, Bank of America, N.A., as Credit Agreement
Agent (as defined below), Wells Fargo Bank, N.A., as Trustee (as defined below), Bank of America, N.A., as initial Credit Agreement Agent, and Wells Fargo Bank, N.A., as Collateral Agent (in such capacity and together with its successors in such
capacity, the “Collateral Agent”). 
  
 RECITALS 
  
 The Borrower intends to enter into a Credit
Agreement dated as of the date hereof among the Borrower, the other Pledgors party thereto, the Lenders party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the lenders party thereto. 
  
 The Borrower and the other Pledgors also intend to enter into the Priority
Lien Security Documents pursuant to which the Priority Lien Collateral Agent will be granted a first priority security interest in the Collateral. 
  
 The Borrower intends to issue 12.00% Second Lien Senior Secured Notes due 2012 (including any related exchange notes, the
“Notes”) in an aggregate principal amount of $185,000,000 pursuant to an Indenture dated as of the date hereof (as amended, supplemented, amended and restated or otherwise modified and in effect from time to
time, the “Indenture”) among the Borrower, the guarantors party thereto and Wells Fargo Bank, N.A., as trustee (in such capacity and together with its successors in such capacity, the
“Trustee”). 
  
 The Borrower
and the other Pledgors also intend to enter into the Security Documents pursuant to which the Collateral Agent will be granted a second priority security interest in the Collateral, which security interest is subordinate to the security interest of
the Priority Lien Collateral Agent. 
  
 The Borrower and the other
Pledgors intend to secure the Obligations under the Credit Agreement and any future Priority Lien Debt on a priority basis and, subject to such priority, intend to secure the Obligations under the Indenture and any future Parity Lien Debt, with
Liens on all present and future Collateral to the extent that such Liens have been provided for in the applicable Security Documents, and desire to enter into this Agreement to confirm their relative rights with respect to the Collateral as provided
in this Agreement. 
  
 Capitalized terms used in this Agreement
have the meanings assigned to them above or in Article 1 below. 

 AGREEMENT 
  

In consideration of the premises and the mutual agreements herein set forth, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement hereby agree as follows: 
  
 ARTICLE 1.
DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 SECTION 1.1 Defined
Terms. The following terms will have the following meanings: 
  
 “Act of Required Debtholders” means, (i) for so long as the Credit Agreement is outstanding, an act of the Credit Agreement Agent and (ii) as to any matter at any time thereafter: 
  
 (1) prior to the Discharge of Priority Lien Obligations, a
direction in writing delivered to the Priority Lien Collateral Agent by or with the written consent of the holders of more than 50% of the sum of: 
  
 (a) the aggregate outstanding principal amount of Priority Lien Debt (including outstanding letters of credit whether or not then
available or drawn); and 
  
 (b) other than in
connection with the exercise of remedies, the aggregate unfunded commitments to extend credit which, when funded, would constitute Priority Lien Debt; and 
  
 (2) at any time after the Discharge of Priority Lien Obligations, a direction in writing delivered to the Collateral Agent by or with the
written consent of the holders of Parity Lien Debt representing the Required Parity Lien Debtholders. 
  
 For purposes of this definition, (a) Secured Debt registered in the name of, or beneficially owned by, the Borrower or any Affiliate of the Borrower will be deemed not to be outstanding and (b) votes will be
determined in accordance with Section 6.2. 
  
 “Additional Secured Debt” has the meaning set forth in Section 4.3. 
  
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings. 
  
 “Agreement” has the meaning set forth in the preamble. 
  
 “Board of Directors” means: 
  
 (1) with respect to a corporation, the board of directors of the corporation or any committee thereof duly
authorized to act on behalf of such board; and 
  

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 (2) with respect to any other Person, the functional equivalent of a board of directors
of a corporation or any committee thereof duly authorized to act on behalf thereof. 
  
 “Borrower” has the meaning set forth in the preamble. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in the City of
New York or at a place of payment are authorized by law, regulation or executive order to remain closed. 
  
 “Capital Lease Obligations” means, at the time any determination is to be made, the amount of the liability in respect of a
capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP. 
  
 “Capital Stock” means: 
  
 (1) in the case of a corporation or unlimited company, corporate stock; 
  
 (2) in the case of an association or business entity, any and all shares, interests, participations, rights
or other equivalents (however designated) of corporate stock; 
  
 (3) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 
  
 (4) any other interest or participation that confers on a Person the right to receive a share of the profits
and losses of, or distributions of assets of, the issuing Person, 
  
 but
excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock. 
  
 “Class” means (1) in the case of Parity Lien Debt, every Series of Parity Lien
Debt, taken together, and (2) in the case of Priority Lien Debt, every Series of Priority Lien Debt, taken together. 
  
 “Collateral” means all properties and assets at any time owned or acquired by the Borrower or any of the other Pledgors, except:

  
 (1) Excluded Assets; 
  
 (2) any properties and assets in which the Collateral Agent
is required to release its Liens pursuant to the provisions of Section 5.4 and 
  
 (3) any properties and assets that no longer secure the Notes or any Obligations in respect thereof pursuant to the provisions of
Section 5.4 
  
 provided that, in the case of clauses (2) and
(3), if such Liens are required to be released as a result of the sale, transfer or other disposition of any properties or assets of the Borrower or any 

  

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other Pledgor, such assets or properties will cease to be excluded from the Collateral if the Borrower or any other Pledgor thereafter acquires or reacquires
such assets or properties. 
  
 “Collateral
Agent” means Wells Fargo Bank, N.A., in its capacity as Collateral Agent under the Security Documents, together with its successors in such capacity. 
  
 “Credit Agreement” means that certain credit agreement dated on or about the date
hereof, by and among Holdings, the Borrower, certain subsidiaries of the Borrower, Bank of America, N.A., Goldman Sachs Credit Partners L.P. and the lenders from time to time party thereto, together with any agreements relating to the provision of
cash and treasury management services and other bank products provided by a lender thereunder or an affiliate thereof and any related notes, guarantees, collateral documents, instruments and agreements executed in connection therewith, and in each
case, as amended, restated, modified, renewed, refunded, replaced (whether upon termination or otherwise) or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time. 
  
 “Credit Agreement Agent” means, at any
time, the Person serving at such time as the “Agent” or “Administrative Agent” or “Collateral Agent” under the Credit Agreement or any other representative then most recently designated in accordance with the applicable
provisions of the Credit Agreement, together with its successors in such capacity. 
  
 “Credit Facilities” means one or more debt facilities (including, without limitation, the Credit Agreement) or commercial paper facilities, in each case, with banks or other
institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or
letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time. 
  
 “Discharge of Priority Lien Obligations”
means the occurrence of all of the following: 
  
 (1) termination or expiration of all commitments to extend credit that would constitute Priority Lien Debt; 
  
 (2) payment in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (other than any undrawn
letters of credit); 
  
 (3) discharge or cash
collateralization (at the lower of (A) 105% of the aggregate undrawn amount and (B) the percentage of the aggregate undrawn amount required for release of liens under the terms of the applicable Priority Lien Document) of all outstanding
letters of credit constituting Priority Lien Debt; and 
  
 (4) payment in full in cash of all other Priority Lien Obligations that are outstanding and unpaid at the time the Priority Lien Debt is paid in full in cash (other than any obligations for taxes, costs, indemnifications, reimbursements,
damages and other liabilities in respect of which no claim or demand for payment has been made at such time). 
  

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 “equally and ratably” means, in reference to sharing of Liens or
proceeds thereof as between holders of Secured Obligations within the same Class, that such Liens or proceeds: 
  
 (1) will be allocated and distributed first to the Secured Debt Representative for each outstanding Series of Secured Debt within that
Class, for the account of the holders of such Series of Secured Debt, ratably in proportion to the principal of, and interest and premium (if any) and reimbursement obligations (contingent or otherwise) with respect to letters of credit, if any,
outstanding (whether or not drawings have been made under such letters of credit) on each outstanding Series of Secured Debt within that Class when the allocation or distribution is made, and thereafter 
  
 (2) will be allocated and distributed (if any remain after
payment in full of all of the principal of, and interest and premium (if any) and reimbursement obligations (contingent or otherwise) with respect to letters of credit, if any, outstanding (whether or not drawings have been made on such letters of
credit) on all outstanding Secured Obligations within that Class) to the Secured Debt Representative for each outstanding Series of Secured Obligations within that Class, for the account of the holders of any remaining Secured Obligations within
that Class, ratably in proportion to the aggregate unpaid amount of such remaining Secured Obligations within that Class due and demanded (with written notice to the applicable Secured Debt Representative, the Priority Lien Collateral Agent and the
Collateral Agent) prior to the date such distribution is made. 
  
 “Excluded Assets” means each of the following: 
  
 (1) any permit, lease, license, contract, instrument or other agreement held by the Borrower or any other Pledgor that prohibits or
requires the consent of any Person as a condition to the creation by the Borrower or such other Pledgor of a security interest or Lien thereon or that would be breached or give the other party the right to terminate it as a result thereof, or any
permit, lease, license contract or other agreement held by the Borrower or any other Pledgor to the extent that any law applicable thereto prohibits the creation of a security interest or Lien thereon or that would be breached or give the other
party the right to terminate is as a result thereof, but only, in each case to the extent, and for so long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC (including Sections 9-406(a),
9-407(a), 9-408(a) and 9-409 of the UCC) or any other law, and (ii) equipment owned by the Borrower or any other Pledgor that is subject to a purchase money Lien or a capital lease which is permitted by the Indenture if the contract or other
agreement in which such Lien is granted (or in the documentation providing for such capital lease) prohibits or requires the consent of any Person as a condition to the creation of any other Lien on such equipment or that would be breached or give
the other party the right to terminate is as a result thereof provided, however, “Excluded Assets” shall not include any Proceeds, substitutions or replacements of Excluded Assets (unless such Proceeds, substitutions or replacements would
constitute replacements of Excluded Assets);
  
 (2) any interest of Borrower or any other Pledgor in any real property;
  

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 (3) all “securities” of Borrower or any of Borrower’s
“affiliates” (as the terms “securities” and “affiliates” are used in Rule 3-16 of Regulation S-X under the Securities Act); and
  
 (4) any other property or assets in which a Lien cannot be perfected by the filing of a financing statement under the Uniform Commercial
Code of the relevant jurisdiction, so long as the aggregate Fair Market Value of all such property and assets does not at any one time exceed $10.0 million. 
  
 “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not
involving distress or necessity of either party, determined in good faith by the Board of Directors of the Borrower. 
  
 “GAAP” means generally accepted accounting principles in the United States of America, as set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have
been approved by a significant segment of the accounting profession which are in effect from time to time. 
  
 “Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary
course of business, direct or indirect, in any manner, including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising
by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement condition or otherwise). 
  
 “Guarantors” means Holdings and the Subsidiary
Guarantors. 
  
 “Holdings” means
Brookstone, Inc., a Delaware corporation. 
  
 “Hedging
Obligations” of any Person means the obligations of such Person under swap, cap, collar, forward purchase or similar agreements or arrangements dealing with interest rates, currency exchange rates or commodity prices, either generally
or under specific contingencies. 
  
 “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables), whether or not contingent: 
  
 (1) in respect of borrowed money; 
  
 (2) evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect thereof); 
  
 (3) in respect of banker’s acceptances; 
  
 (4) representing Capital Lease Obligations; 
  

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 (5) representing the balance deferred and unpaid of the purchase price of any property or
services due more than six months after such property is acquired or such services are completed, except any such balance that represents an accrued expense or trade payable; 
  
 (6) representing any Hedging Obligations, or 
  
 (7) all monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise of Holdings or any Restricted Subsidiary arising out of any cash management, depositary or investment services provided by any Priority Lien Collateral Agent or its Affiliates. 
  
 if and to the extent any of the preceding items (other than letters of credit, Hedging
Obligations and obligations referred to in clause (7) above) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of
others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person), but only to the extent that the aggregate amount of such Indebtedness does not exceed the Fair Market Value of the
asset, and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person. In no event will obligations or liabilities in respect of any Capital Stock constitute Indebtedness hereunder.

  
 “Indenture” has the
meaning set forth in the recitals. 
  
 “Insolvency or Liquidation Proceeding” means: 
  
 (1) any case commenced by or against the Borrower or any other Pledgor under Title 11, U.S. Code or any similar federal or state law for
the relief of debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of the Borrower or any other Pledgor, any receivership or assignment for the benefit of creditors relating
to the Borrower or any other Pledgor or any similar case or proceeding relative to the Borrower or any other Pledgor or its creditors, as such, in each case whether or not voluntary; 
  
 (2) any liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to
the Borrower or any other Pledgor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or 
  
 (3) any other proceeding of any type or nature in which substantially all claims of creditors of the Borrower or any other Pledgor are
determined and any payment or distribution is or may be made on account of such claims. 
  
 “Intercreditor Agreement Joinder” means an agreement substantially in the form of Exhibit A. 
  
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest, hypothec or encumbrance of any kind in respect of such asset, whether or not filed, recorded, registered or otherwise perfected under applicable law, including any conditional sale 

  

 7 

 
or other title retention agreement; provided that in no event shall an operating lease that is not a Capital Lease Obligations be deemed to constitute a
Lien. 
  
 “Lien Sharing and Priority
Confirmation” means: 
  
 (1)
as to any Series of Parity Lien Debt, the written agreement of the holders of such Series of Parity Lien Debt, as set forth in the indenture, credit agreement or other agreement governing such Series of Parity Lien Debt, for the enforceable benefit
of all holders of each existing and future Series of Priority Lien Debt, each existing and future Priority Lien Representative and each existing and future holder of Permitted Prior Liens: 
  
 (a) that all Parity Lien Obligations will be and are secured
equally and ratably by all Parity Liens at any time granted by the Borrower or any other Pledgor to secure any Obligations in respect of such Series of Parity Lien Debt, whether or not upon property otherwise constituting collateral for such Series
of Parity Lien Debt, and that all such Parity Liens will be enforceable by the Collateral Agent for the benefit of all holders of Parity Lien Obligations equally and ratably; 
  
 (b) that the holders of Obligations in respect of such Series of Parity Lien Debt are bound by the
provisions of this Agreement, including the provisions relating to the ranking of Parity Liens and the order of application of proceeds from the enforcement of Parity Liens; and 
  
 (c) consenting to and directing the Collateral Agent to perform its obligations under this Agreement and the
other Security Documents; and 
  
 (2) as to any
Series of Priority Lien Debt, the written agreement of the holders of such Series of Priority Lien Debt, as set forth in the credit agreement or other agreement governing such Series of Priority Lien Debt, for the enforceable benefit of all holders
of each existing and future Series of Parity Lien Debt, each existing and future Parity Lien Representative and each existing and future holder of Permitted Prior Liens: 
  
 (a) that all Priority Lien Obligations will be and are secured equally and ratably by all Priority Liens at
any time granted by the Borrower or any other Pledgor to secure any Obligations in respect of such Series of Priority Lien Debt, whether or not upon property otherwise constituting collateral for such Series of Priority Lien Debt, and that all such
Priority Liens will be enforceable by the Priority Lien Collateral Agent for the benefit of all holders of Priority Lien Obligations equally and ratably; 
  
 (b) that the holders of Obligations in respect of such Series of Priority Lien Debt are bound by the provisions of this Agreement,
including the provisions relating to the ranking of Priority Liens and the order of application of proceeds from enforcement of Priority Liens; and 
  
 (c) consenting to and directing the Priority Lien Collateral Agent to perform its obligations under this Agreement and the other security
documents. 
  

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 “Notes” has the meaning set forth in the recitals. 
  
 “Note Documents” means the Indenture,
the Notes and the Security Documents. 
  
 “Obligations” means any principal (including reimbursement obligations with respect to letters of credit whether or not drawn), interest (including, to the extent legally permitted, all interest accrued
thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, including any applicable post-default rate, specified in the Secured Debt Documents, even if such interest is not enforceable, allowable or allowed as a claim in
such proceeding), premium (if any), fees, indemnifications, reimbursements, expenses and other liabilities payable under the applicable Secured Debt Documents. 
  

“Officers’ Certificate” means a certificate with respect to compliance with a condition or covenant provided
for in this Agreement, signed on behalf of the Borrower by two officers of the Borrower, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Borrower,
including: 
  
 (a) a statement that the Person
making such certificate has read such covenant or condition; 
  
 (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate are based; 
  
 (c) a statement that, in the opinion of such Person, he or
she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been satisfied; and 
  
 (d) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been
satisfied. 
  
 “Parity Lien”
means a Lien granted by a Security Document to the Collateral Agent, at any time, upon any property of the Borrower or any other Pledgor to secure Parity Lien Obligations. 
  
 “Parity Lien Debt” means: 
  
 (1) the Notes issued on the date hereof (including any
related exchange notes); and 
  
 (2) any other
Indebtedness (including additional Notes) that is secured equally and ratably with the Notes by a Parity Lien that was permitted to be incurred and so secured under each applicable Secured Debt Document; 
  

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 provided, that in the case of any Indebtedness referred to in clause (2) of this definition,
that: 
  
 (a) on or before the date on which such
Indebtedness is incurred by the Borrower or by a Restricted Subsidiary (as defined under the Indenture) of the Borrower, such Indebtedness is designated by the Borrower, in an Officers’ Certificate delivered to each Parity Lien Representative,
the Collateral Agent and the Priority Lien Collateral Agent, as “Parity Lien Debt” for the purposes of the Indenture and this Agreement; provided, that no Series of Secured Debt may be designated as both Parity Lien Debt and
Priority Lien Debt; 
  
 (b) such Indebtedness is
governed by an indenture, credit agreement or other agreement that includes a Lien Sharing and Priority Confirmation; and 
  
 (c) all requirements set forth in this Agreement as to the confirmation, grant or perfection of the Collateral Agent’s Lien to secure
such Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such requirements and the other provisions of this clause (c) will be conclusively established if the Borrower delivers to the Collateral Agent and the
Priority Lien Collateral Agent an Officers’ Certificate stating that such requirements and other provisions have been satisfied and that such Indebtedness is “Parity Lien Debt”). 
  
 “Parity Lien Documents” means,
collectively, the Note Documents and the indenture, credit agreement or other agreement governing each other Series of Parity Lien Debt and the Security Documents. 
  
 “Parity Lien Obligations” means Parity Lien Debt and all other Obligations in respect
thereof. 
  
 “Parity Lien
Representative” means: 
  
 (1) in the case of the Notes, the Trustee; or 
  
 (2) in the case of any other Series of Parity Lien Debt, the trustee, agent or representative of the holders of such Series of Parity Lien Debt who maintains the transfer register for such Series of Parity Lien Debt and (A) is
appointed as a Parity Lien Representative (for purposes related to the administration of the Security Documents) pursuant to the indenture, credit agreement or other agreement governing such Series of Parity Lien Debt, together with its successors
in such capacity, and (B) that has executed an Intercreditor Agreement Joinder. 
  
 “Permitted Prior Liens” means: 
  
 (1) Liens described in clause (1) of the definition of “Permitted Liens” under the Indenture; 
  
 (2) Liens described in clauses (4), (5), (7), (8), (17),
(18), (19), (22), (23), (24), (25) and (27) of the definition of “Permitted Liens” under the Indenture; 
  

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 (3) Liens described in clause (13) of the definition of “Permitted Liens”
under the Indenture to the extent the Lien securing the Indebtedness being refinanced constituted a Permitted Prior Lien under clause (1) or (2) of this definition; and 
  
 (4) Permitted Liens (as defined in the Indenture) that arise by operation of law and are not voluntarily
granted, to the extent entitled by law to priority over the Liens created by the Priority Lien Security Documents or the Security Documents. 
  
 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company, unlimited company or government or other entity. 
  
 “Pledgors” means Holdings, the Borrower, the Guarantors and any other Person (if any) that at any time provides
collateral security for any Secured Obligations. 
  
 “Priority Lien” means a Lien granted by a Priority Lien Security Document to the Priority Lien Collateral Agent, at any time, upon any property of the Borrower or any other Pledgor to secure Priority
Lien Obligations. 
  
 “Priority Lien Cap”
means, as of any date, the principal amount outstanding under the Credit Agreement and/or the Indebtedness outstanding under any other Credit Facility, in an aggregate principal amount (including face amounts of letters of credit) not to
exceed the sum of the amount provided by clause (1) of the definition of Permitted Debt (as defined in Section 1.01 of the Indenture), as of any date, plus the amount provided by clauses (13) and (14) of the definition of
Permitted Debt (as defined in Section 1.01 of the Indenture), less the amount of Parity Lien Debt incurred after the date of the Indenture the net proceeds of which are used to repay Priority Lien Debt and such repayment results in a
corresponding permanent reduction in commitments under such Priority Lien Debt. For purposes of this definition, all letters of credit will be valued at the face amount thereof, whether or not drawn, and all Hedging Obligations will be valued at
zero. 
  
 “Priority Lien Collateral
Agent” means Credit Agreement Agent until such time as the Credit Agreement is no longer outstanding; thereafter it shall mean such person as shall be appointed collateral agent under the Priority Lien Security Documents,
together with its successors in such capacity. 
  
 “Priority Lien Debt” means: 
  
 (1) Indebtedness under the Credit Agreement that was permitted to be incurred and secured under each applicable Secured Debt Document (or as to which the lenders under the Credit Agreement obtained an Officers’
Certificate at the time of incurrence to the effect that such Indebtedness was permitted to be incurred and secured by all applicable Secured Debt Documents); 
  

 11 

 (2) Indebtedness under any other Credit Facility that is secured equally and ratably with
the Credit Agreement by a Priority Lien that was permitted to be incurred and so secured under each applicable Secured Debt Document; provided, in the case of any Indebtedness referred to in this clause (2), that: 
  
 (a) on or before the date on which such Indebtedness is
incurred by the Borrower such Indebtedness is designated by the Borrower, in an Officers’ Certificate delivered to each Priority Lien Representative, the Priority Lien Collateral Agent and the Collateral Agent, as “Priority Lien Debt”
for the purposes of the Secured Debt Documents; provided, that no Series of Secured Debt may be designated as both Parity Lien Debt and Priority Lien Debt; 
  
 (b) such Indebtedness is governed by a credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation; and 
  
 (c) all
requirements set forth in this Agreement as to the confirmation, grant or perfection of the Priority Lien Collateral Agent’s Lien to secure such Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such
requirements and the other provisions of this clause (c) will be conclusively established if the Borrower delivers to the Priority Lien Collateral Agent and the Collateral Agent an Officers’ Certificate stating that such requirements and
other provisions have been satisfied and that such Indebtedness is “Priority Lien Debt”); and 
  
 (3) Hedging Obligations incurred to hedge or manage interest rate risk with respect to Priority Lien Debt; provided, that:

  
 (a) such Hedging Obligations are secured by a
Priority Lien on all of the assets and properties that secure Indebtedness under the Credit Facility in respect of which such Hedging Obligations are incurred; and 
  
 (b) such Priority Lien is senior to or on a parity with the Priority Liens securing Indebtedness under the
Credit Facility in respect of which such Hedging Obligations are incurred. 
  
 (4) Notwithstanding the foregoing, if the sum of (1) Indebtedness constituting principal outstanding under the Priority Lien Documents; plus (2) the aggregate face amount of any letters of credit issued but
not reimbursed under the Priority Lien Documents, is in excess of Priority Lien Cap, then only that portion of such Indebtedness and such aggregate face amount of letters of credit equal to the Priority Lien Cap shall be included in Priority Lien
Obligations and interest with respect to such Indebtedness and reimbursement obligations with respect to such letters of credit shall only constitute Priority Lien Obligations to the extent related to Indebtedness and face amounts of letters of
credit included in the Priority Lien Obligations. 
  
 “Priority Lien Documents” means the Credit Agreement and any other Credit Facility pursuant to which any Priority Lien Debt is incurred and the Priority Lien Security Documents. 
  
 “Priority Lien Obligations” means the
Priority Lien Debt and all other Obligations in respect of Priority Lien Debt. 
  
 “Priority Lien Representative” means the Credit Agreement Agent so long as the Credit Agreement is outstanding and thereafter, in the case of any other Series of Priority Lien
Debt, the 

  

 12 

 
trustee, agent or representative of the holders of such Series of Priority Lien Debt who maintains the transfer register for such Series of Priority Lien
Debt and is appointed as a representative of the Priority Lien Debt (for purposes related to the administration of the Priority Lien Security Documents) pursuant to the credit agreement or other agreement governing such Series of Priority Lien Debt,
and who has executed an Intercreditor Agreement Joinder. 
  
 “Priority Lien Security Documents” means this Agreement, each Lien Sharing and Priority Confirmation, and all security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements or other grants or transfers for security executed and delivered by the Borrower or any other Pledgor creating (or purporting to create) a Priority Lien upon Collateral in favor of the Priority Lien Collateral
Agent, in each case, as amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in accordance with its terms. 
  
 “Required Parity Lien Debtholders” means, at any time, the holders of more than 50% of the sum of: 
  
 (a) the aggregate outstanding principal amount of Parity
Lien Debt (including outstanding letters of credit whether or not then available or drawn); and 
  
 (b) other than in connection with the exercise of remedies, the aggregate unfunded commitments to extend credit which, when funded, would
constitute Parity Lien Debt. 
  
 For purposes of this definition,
(a) Parity Lien Debt registered in the name of, or beneficially owned by, the Borrower or any Affiliate of the Borrower will be deemed not to be outstanding, and (b) votes will be determined in accordance with the provisions of
Section 6.2. 
  
 “Secured
Debt” means Parity Lien Debt and Priority Lien Debt. 
  
 “Secured Debt Default” means any event or condition which, under the terms of any credit agreement, indenture or other agreement governing any Series of Secured Debt causes, or
permits holders of Secured Debt outstanding thereunder (with or without the giving of notice or lapse of time, or both, and whether or not notice has been given or time has lapsed) to cause, the Secured Debt outstanding thereunder to become
immediately due and payable. 
  
 “Secured Debt
Documents” means the Parity Lien Documents and the Priority Lien Documents. 
  
 “Secured Debt Representative” means each Parity Lien Representative and each Priority Lien Representative.

  
 “Secured Obligations”
means Parity Lien Obligations and Priority Lien Obligations. 
  
 “Secured Parties” means the holders of Secured Obligations and the Secured Debt Representatives. 
  

 13 

 “Security Documents” means this Agreement, each Lien Sharing and
Priority Confirmation, and all security agreements, pledge agreements, collateral assignments, mortgages, collateral agency agreements, control agreements, deeds of trust or other grants or transfers for security executed and delivered by the
Borrower or any other Pledgor creating (or purporting to create) a Parity Lien upon Collateral in favor of the Collateral Agent, in each case, as amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in accordance
with its terms and Section 3.9. 
  
 “Series
of Parity Lien Debt” means, severally, the Notes and each other issue or series of Parity Lien Debt for which a single transfer register is maintained. 
  
 “Series of Priority Lien Debt” means, severally, Indebtedness outstanding under the
Credit Agreement and any other Credit Facility that constitutes Priority Lien Debt. 
  
 “Series of Secured Debt” means, severally, each Series of Priority Lien Debt and each Series of Parity Lien Debt. 
  
 “Special Interest” means (i) “Special Interest” as defined in the registration rights
agreement with respect to the Notes issued on the date hereof and (ii) “Special Interest”, “Additional Interest”, “Liquidated Damages” or any similar term as such term is defined in any registration rights
agreement with respect to additional notes issued after the date hereof. 
  
 “Subsidiary” means, with respect to any specified Person: 
  
 (1) any corporation, company, association or other business entity of which more than 50% of the total voting power of shares of Capital
Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees
of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and 
  
 (2) any partnership (a) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 
  
 “Subsidiary Guarantor” means each Subsidiary of the
Borrower that executes a Guarantee in accordance with the provisions of the indenture and its successors and assigns, until such Subsidiary is released from its Guarantee in accordance with the provisions of the Indenture. 
  
 “Trustee” has the meaning set forth in
the recitals. 
  
 “UCC”
means the Uniform Commercial Code as in effect in the State of New York or any other applicable jurisdiction. 
  

 14 

 SECTION 1.2 Rules of Interpretation. 
  
 (a) All terms used in this Agreement that are defined in
Article 9 of the UCC and not otherwise defined herein have the meanings assigned to them in Article 9 of the UCC. 
  
 (b) Unless otherwise indicated, any reference to any agreement or instrument will be deemed to include a reference to that agreement or
instrument as assigned, amended, supplemented, amended and restated, or otherwise modified and in effect from time to time or replaced in accordance with the terms of this Agreement. 
  
 (c) The use in this Agreement or any of the other Security Documents or Priority Lien Security Documents of
the word “include” or “including,” when following any general statement, term or matter, will not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or
to similar items or matters, whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but will be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement, term or matter. The word “will” shall be construed to have the same meaning and effect as the word “shall.” 
  
 (d) References to “Sections,” “clauses,”
“recitals” and the “preamble” will be to Sections, clauses, recitals and the preamble, respectively, of this Agreement unless otherwise specifically provided. References to “Articles” will be to Articles of this
Agreement unless otherwise specifically provided. References to “Exhibits” and “Schedules” will be to Exhibits and Schedules, respectively, to this Agreement unless otherwise specifically provided. 
  
 (e) Notwithstanding anything to the contrary in this
Agreement, any references contained herein to any section, clause, paragraph, definition or other provision of the Indenture (including any definition contained therein) shall be deemed to be a reference to such section, clause, paragraph,
definition or other provision as in effect on the date of this Agreement; provided, that any reference to any such section, clause, paragraph or other provision shall refer to such section, clause, paragraph or other provision of the
Indenture (including any definition contained therein) as amended or modified from time to time if such amendment or modification has been (1) made in accordance with the Indenture and (2) prior to the Discharge of Priority Lien
Obligations, approved in a writing delivered to the Trustee, the Priority Lien Collateral Agent and the Collateral Agent by, or on behalf of, the requisite holders of Priority Lien Obligations as are needed (if any) under the terms of the applicable
Priority Lien Documents to approve such amendment or modification. 
  
 (f) This Agreement, the Security Documents and the Priority Lien Security Documents will be construed without regard to the identity of the party who drafted it and as though the parties participated equally in
drafting it. Consequently, each of the parties acknowledges and agrees that any rule of construction that a document is to be construed against the drafting party will not be applicable to this Agreement or the other Security Documents or Priority
Lien Security Documents. 
  

 15 

 ARTICLE 2. 
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 2.1 Representations and Warranties of the Priority Lien Collateral Agent. 
  
 The Priority Lien Collateral Agent represents, warrants, acknowledges and agrees on behalf of itself and the holders of Priority Lien Obligations that
(1) it is authorized to enter into this Agreement on behalf of itself and such holders, (2) it has the corporate power and authority and the legal right to execute and deliver and perform its obligations under this Agreement and has taken
all necessary corporate action to authorize its execution, delivery and performance of this Agreement and (3) this Agreement constitutes a valid and legally binding obligation of the Priority Lien Collateral Agent, enforceable against the
Priority Lien Collateral Agent in accordance with its terms. 
  
 SECTION 2.2 Representations and Warranties of the Collateral Agent. 
  
 The Collateral Agent represents, warrants, acknowledges and agrees on behalf of itself and the holders of Parity Lien Obligations that (1) it is authorized to enter into this Agreement on behalf of itself and
such holders, (2) it has the corporate power and authority and the legal right to execute and deliver and perform its obligations under this Agreement and has taken all necessary corporate action to authorize its execution, delivery and
performance of this Agreement and (3) this Agreement constitutes a valid and legally binding obligation of the Collateral Agent, enforceable against the Collateral Agent in accordance with its terms. 
  
 ARTICLE 3. THE COLLATERAL 
  
 SECTION 3.1 Priority of Liens. Notwithstanding anything else contained
herein or in any of the other Security Documents or Priority Lien Security Documents, it is the intent of the parties that: 
  
 (1) the grant of Priority Liens pursuant to the Priority Lien Security Documents and the grant of Parity Liens pursuant to the Security
Documents, respectively, create two separate and distinct Liens: the Priority Liens securing the payment and performance of the Priority Lien Obligations and the Parity Liens securing the payment and performance of the Parity Lien Obligations,
respectively; and 
  
 (2) the Parity Liens
securing the Parity Lien Obligations are subject and subordinate to the Priority Liens securing the Priority Lien Obligations. 
  
 SECTION 3.2 Restrictions on Enforcement of Parity Liens. 
  

(a) Until the Discharge of Priority Lien Obligations, the Priority Lien Representative, the holders of loans made under the Credit
Agreement and the holders of other Priority Lien Obligations will have, subject to the exceptions set forth below in clauses (1) through (4) and Section 6.6, and subject to the rights of the holders of Permitted Prior Liens, the
exclusive right to enforce, collect or realize on any Collateral or exercise any other right or remedy with respect to the Collateral. Neither the Collateral Agent, nor the Trustee, nor holders of the Notes or other Parity Lien Obligations may take
any action to enforce, collect or realize on 

  

 16 

 
any Collateral or exercise any other right or remedy with respect to the Collateral without the consent of the Priority Lien Collateral Agent.
Notwithstanding the foregoing, the Trustee and the holders of the Notes (together with any other holder of a Parity Lien Obligation) may, subject to the rights of the holders of other Permitted Prior Liens, direct the Collateral Agent: 

 
 (1) without any condition or restriction whatsoever, at
any time after the Discharge of Priority Lien Obligations; 
  
 (2) as necessary to redeem any Collateral in a creditor’s redemption permitted by law or to deliver any notice or demand necessary to enforce (subject to the prior Discharge of Priority Lien Obligations) any
right to claim, take or receive proceeds of Collateral remaining after the Discharge of Priority Lien Obligations in the event of foreclosure or other enforcement of any Permitted Prior Lien; 
  
 (3) as necessary to perfect or establish the priority
(subject to Priority Liens and other Permitted Prior Liens) of the Parity Liens upon any Collateral; provided, that the Trustee and the holders of Parity Lien Obligations may not require the Collateral Agent to take any action to perfect any
Collateral through possession or control; or 
  
 (4) as necessary to create, prove, preserve or protect (but not enforce, exercise any remedies in connection with, take possession of or otherwise interfere with, except as otherwise provided in this Agreement, the right of any Priority
Lien Representative to enforce) the Parity Liens upon any Collateral. 
  
 (b) Subject to Section 6.6, until the Discharge of Priority Lien Obligations, none of the holders the Notes or other of Parity Lien Obligations, the Collateral Agent or any Parity Lien Representative will:

  
 (1) request judicial relief, in an Insolvency
or Liquidation Proceeding or in any other court, that would hinder, delay, limit or prohibit the lawful exercise or enforcement of any right or remedy otherwise available to the holders of Priority Lien Obligations in respect of the Priority Liens
or that would limit, invalidate, avoid or set aside any Priority Lien or subordinate the Priority Liens to the Parity Liens or grant the Parity Liens equal ranking to the Priority Liens; 
  
 (2) oppose or otherwise contest any motion for relief from the automatic stay or from any injunction against
foreclosure or enforcement of Priority Liens made by any holder of Priority Lien Obligations or any Priority Lien Representative in any Insolvency or Liquidation Proceeding; 
  
 (3) oppose or otherwise contest any lawful exercise by any holder of Priority Lien Obligations or any
Priority Lien Representative of the right to credit bid Priority Lien Debt at any sale in foreclosure of Priority Liens; 
  
 (4) oppose or otherwise contest any other request for judicial relief made in any court by any holder of Priority Lien Obligations or any
Priority Lien Representative relating to the lawful enforcement of any Priority Lien; or 
  

 17 

 (5) challenge the validity, enforceability, perfection or priority of the Priority Liens.

  
 Notwithstanding the foregoing, both before and during an Insolvency or
Liquidation Proceeding, the Collateral Agent, the holders of Parity Lien Obligations and the Parity Lien Representatives may take any actions and exercise any and all rights that would be available to a holder of unsecured claims, including, without
limitation, the commencement of an Insolvency or Liquidation Proceeding against the Borrower or any other Pledgor in accordance with applicable law; provided, that the Collateral Agent, the holders of Parity Lien Obligations and the Parity
Lien Representatives may not take any of the actions prohibited by clauses (1) through (5) of this Section 3.2(b) or oppose or contest any order that it has agreed not to oppose or contest under Section 3.6. 
  
 (c) At any time prior to the Discharge of Priority Lien
Obligations and after (1) the commencement of any Insolvency or Liquidation Proceeding in respect of the Borrower or any other Pledgor or (2) the Collateral Agent and each Parity Lien Representative have received written notice from any
Priority Lien Representative at the direction of an Act of Required Debtholders stating that (A) any Series of Priority Lien Debt has become due and payable in full (whether at maturity, upon acceleration or otherwise) or (B) the holders
of Priority Liens securing one or more Series of Priority Lien Debt have become entitled under any Priority Lien Documents to enforce any or all of the Priority Liens by reason of a default under such Priority Lien Documents, no payment of money (or
the equivalent of money) will be made from the proceeds of Collateral by the Borrower or any other Pledgor to the Collateral Agent, any Parity Lien Representative or any holder of Parity Lien Obligations (including, without limitation, payments and
prepayments made for application to Parity Lien Obligations and all other payments and deposits made pursuant to any provision of any Parity Lien Document). 
  
 (d) Subject to Section 6.6, all proceeds of Collateral received by the Collateral Agent, any Parity Lien Representative or any holder
of Parity Lien Obligations at any time prior to the Discharge of Priority Lien Obligations in violation of Section 3.2(c) will be held by the Collateral Agent, the applicable Parity Lien Representative, the holders of Notes and other holders of
Parity Lien Obligations for the account of the holders of Priority Liens and promptly remitted to the Priority Lien Collateral Agent. The Parity Liens will remain attached to and enforceable against all proceeds so held or remitted. All proceeds of
Collateral received by the Collateral Agent, any Parity Lien Representative or the holders of Parity Lien Obligations not in violation of this Agreement will be received by the Collateral Agent, such Parity Lien Representatives or such holder of
Parity Lien Obligations free from the Priority Liens. 
  
 SECTION
3.3 Waiver of Right of Marshalling. 
  
 (a) Prior to the
Discharge of Priority Lien Obligations, holders of Parity Lien Obligations, each Parity Lien Representative and the Collateral Agent may not assert or enforce any right of marshalling accorded to a junior lienholder, as against the holders of
Priority Liens (in their capacity as priority lienholders). 
  
 (b) Following the Discharge of Priority Lien Obligations, the Collateral Agent, the holders of Parity Lien Obligations and any Parity Lien Representative may assert their 

  

 18 

 
right under the UCC or otherwise to any proceeds remaining following a sale or other disposition of Collateral by, or on behalf of, the holders of Priority
Lien Obligations. 
  
 SECTION 3.4 Discretion in Enforcement of
Priority Liens. 
  
 (a) In exercising rights
and remedies with respect to the Collateral, the Priority Lien Representatives may enforce (or refrain from enforcing) the provisions of the Priority Lien Documents and exercise (or refrain from exercising) remedies thereunder or any such rights and
remedies, all in such order and in such manner as they may determine in the exercise of their sole and exclusive discretion, including: 
  
 (1) the exercise or forebearance from exercise of all rights and remedies in respect of the Collateral and/or the Priority Lien
Obligations; 
  
 (2) the enforcement or
forebearance from enforcement of any Priority Lien in respect of the Collateral; 
  
 (3) the exercise or forebearance from exercise of rights and powers of a holder of shares of stock included in the Priority Lien
Collateral to the extent provided in the Priority Lien Security Documents; 
  
 (4) the acceptance of the Collateral in full or partial satisfaction of the Priority Lien Obligations; and 
  
 (5) the exercise or forebearance from exercise of all rights and remedies of a secured lender under the UCC or any similar law of any
applicable jurisdiction or in equity. 
  
 SECTION 3.5
Discretion in Enforcement of Priority Lien Obligations. 
  
 (a) Without in any way limiting the generality of Section 3.4, the holders of Priority Lien Obligations and the Priority Lien Representatives may, at any time and from time to time, without the consent of or
notice to the Collateral Agent, the holders of Parity Lien Obligations or the Parity Lien Representatives, without incurring responsibility to the Collateral Agent, the holders of Parity Lien Obligations and the Parity Lien Representatives and
without impairing or releasing the subordination provided in this Agreement or the obligations hereunder of the Collateral Agent, the holders of Parity Lien Obligations and the Parity Lien Representatives, do any one or more of the following:

  
 (1) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, the Priority Lien Obligations, or otherwise amend or supplement in any manner the Priority Lien Obligations, or any instrument evidencing the Priority Lien Obligations or any agreement
under which the Priority Lien Obligations are outstanding; 
  
 (2) release any Person or entity liable in any manner for the collection of the Priority Lien Obligations; 
  

 19 

 (3) release the Priority Lien on any Collateral; and 
  
 (4) exercise or refrain from exercising any rights against
any Pledgor. 
  
 SECTION 3.6 Insolvency or Liquidation
Proceedings. 
  
 (a) If in any Insolvency or
Liquidation Proceeding and prior to the Discharge of Priority Lien Obligations, the holders of Priority Lien Obligations by an Act of Required Debtholders consent to any order: 
  
 (1) for use of cash collateral; 
  
 (2) approving a debtor-in-possession financing secured by a Lien that is senior to or on a parity with all
Priority Liens upon any property of the estate in such Insolvency or Liquidation Proceeding; 
  
 (3) granting any relief on account of Priority Lien Obligations as adequate protection (or its equivalent) for the benefit of the holders
of Priority Lien Obligations in the Collateral subject to Priority Liens; or 
  
 (4) relating to a sale of assets of the Borrower or any other Pledgor that provides, to the extent the assets sold are to be free and clear of Liens, that all Priority Liens and Parity Liens will attach to the
proceeds of the sale, 
  
 then, the holders of Parity Lien Obligations, in their
capacity as holders of secured claims, and each Parity Lien Representative, will not oppose or otherwise contest the entry of such order, so long as none of the holders of Priority Lien Obligations or any Priority Lien Representative in any respect
opposes or otherwise contests any request made by any holder of Parity Lien Obligations or a Parity Lien Representative for the grant to the Collateral Agent, for the benefit of the holders of Parity Lien Obligations, of a junior Lien upon any
property on which a Lien is (or is to be) granted under such order to secure the Priority Lien Obligations, co-extensive in all respects with, but subordinated (as set forth in Section 3.1) to, such Lien and all Priority Liens on such property.

  
 Notwithstanding the foregoing, both before
and during an Insolvency or Liquidation Proceeding, the Collateral Agent, the holders of Parity Lien Obligations and the Parity Lien Representatives may take any actions and exercise any and all rights that would otherwise be available to a holder
of unsecured claims, including, without limitation, the commencement of Insolvency or Liquidation Proceedings against the Borrower or any other Pledgor in accordance with applicable law; provided, that the Collateral Agent, the holders of
Parity Lien Obligations and the Parity Lien Representatives may not take any of the actions prohibited under Section 3.2(b) or oppose or contest any order that it has agreed not to oppose or contest under clauses (1) through (4) of
the preceding paragraph. 
  

 20 

 (b) The Collateral Agent, the holders of Parity Lien Obligations or any Parity Lien
Representative will not file or prosecute in any Insolvency or Liquidation Proceeding any motion for adequate protection, motion for relief from the automatic stay (or any comparable request for relief) based upon their interest in the Collateral
under the Parity Liens, except that: 
  
 (1) they
may freely seek and obtain relief: (A) granting a junior Lien co-extensive in all respects with, but subordinated (as set forth in Section 3.1) to, all Liens granted in the Insolvency or Liquidation Proceeding to, or for the benefit of,
the holders of Priority Lien Obligations; and 
  
 (2) they may freely seek and obtain any relief upon a motion for adequate protection, motion for relief from the automatic stay (or any comparable relief), without any condition or restriction whatsoever, at any time after the Discharge of
Priority Lien Obligations. 
  
 SECTION 3.7 Collateral Shared
Equally and Ratably within Class. The parties to this Agreement agree that the payment and satisfaction of all of the Secured Obligations within each Class will be secured equally and ratably by the Liens established in favor of the Priority
Lien Collateral Agent or Collateral Agent, as applicable, for the benefit of the Secured Parties belonging to such Class. It is understood and agreed that nothing in this Section 3.7 is intended to alter the priorities among Secured Parties
belonging to different Classes as provided in Section 3.1. 
  
 SECTION 3.8 Actions to Perfect Security Interests. To the extent that the holders of Priority Liens do not require that an action be taken to perfect upon any Collateral, the holders of Parity Liens will not require such action to be
taken. 
  
 SECTION 3.9 Amendment of Security Documents.

  
 (a) No amendment or supplement to the
provisions of any Security Document will be effective without the approval of the Collateral Agent acting as directed by the Required Parity Lien Debtholders, except that: 
  
 (1) any amendment or supplement that has the effect solely of adding or maintaining Collateral, securing
additional Parity Lien Debt that was otherwise permitted by the terms of the Parity Lien Documents to be secured by the Collateral or preserving, perfecting or establishing the priority of the Parity Liens or the rights of the Collateral Agent
therein will become effective when executed and delivered by the Borrower or any other applicable Pledgor party thereto and the Collateral Agent; 
  
 (2) no amendment or supplement that reduces, impairs or adversely affects the right of any holder of Parity Lien Obligations: 

 
 (A) to vote its outstanding Parity Lien Debt as to any
matter described as subject to direction by the Required Parity Lien Debtholders (or amends the provisions of this clause (2) or the definition of “Required Parity Lien Debtholders”), 
  
 (B) to share in the order of application described under
Sections 4.1 and 4.2 in the proceeds of enforcement of or realization on any Collateral, or 
  

 21 

 (C) to require that Parity Liens be released only as set forth in the provisions
described under Section 5.1, 
  
 will become effective
without the consent of the requisite percentage or number of holders of each Series of Parity Lien Debt so affected under the applicable Parity Lien Document; and 
  
 (3) no amendment or supplement that imposes any obligation upon the Collateral Agent or any Parity Lien
Representative or adversely affects the rights of the Collateral Agent or any Parity Lien Representative, respectively, in its individual capacity as such, will become effective without the consent of the Collateral Agent or such Parity Lien
Representative, respectively. 
  
 Any amendment or supplement to
the provisions of the Security Documents that releases Collateral will be effective only in accordance with the requirements set forth in Section 5.1 and Section 5.4. 
  
 Notwithstanding anything to the contrary in this Section 3.9, but subject to clauses (2) and (3) above:

  
 (1) any mortgage or other security document
that secures Parity Lien Obligations (but not Priority Lien Obligations) may be amended or supplemented with the approval of the Collateral Agent acting as directed in writing by the Required Parity Lien Debtholders, unless such amendment or
supplement would not be permitted under the terms of this Agreement or the other Priority Lien Documents; and 
  
 (2) any amendment or waiver of, or any consent under, any provision of this Agreement or any other Parity Lien Document that secures
Priority Lien Obligations will apply automatically to any comparable provision of any comparable Parity Lien Document without the consent of or notice to any holder of Parity Lien Obligations and without any action by the Borrower or any other
Pledgor or any holder of Notes or other Parity Lien Obligations. 
  
 ARTICLE 4. INTERCREDITOR RELATIONS 
  
 SECTION 4.1
Application of Proceeds in Distributions by the Priority Lien Collateral Agent. 
  
 (a) The Priority Lien Collateral Agent will apply the proceeds of any collection, sale, foreclosure or other realization upon any
Collateral (subject to the rights of holders of Permitted Prior Liens) in the following order of application: 
  
 FIRST, to the payment of all amounts payable under the Priority Lien Documents on account of the Priority Lien Collateral Agent’s
fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the Priority Lien Collateral 

  

 22 

 
Agent or any co-trustee or agent of the Priority Lien Collateral Agent in connection with any Priority Lien Security Document; 
  
 SECOND, to the respective Priority Lien Representatives for
application to the payment of all outstanding Priority Lien Debt and any other Priority Lien Obligations that are then due and payable in such order as may be provided in the Priority Lien Documents in an amount sufficient to pay in full in cash all
outstanding Priority Lien Debt and all other Priority Lien Obligations that are then due and payable (including all interest accrued thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate, including any applicable
post-default rate, specified in the Priority Lien Documents, even if such interest is not enforceable, allowable or allowed as a claim in such proceeding, and including the discharge or cash collateralization (at the lower of (1) 105% of the
aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of Liens under the terms of the applicable Priority Lien Document) of all outstanding letters of credit constituting Priority Lien Debt);

  
 THIRD, to the payment of all amounts payable
under the Parity Lien Documents on account of the Collateral Agent’s fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the Collateral Agent or any co-trustee or agent of the Collateral Agent in
connection with any Security Document; 
  
 FOURTH, to the respective Parity Lien Representatives for application to the payment of all outstanding Parity Lien Debt and any other Parity Lien Obligations that are then due and payable in such order as may be provided in the Parity Lien
Documents in an amount sufficient to pay in full in cash all outstanding Parity Lien Debt and all other Parity Lien Obligations that are then due and payable (including, to the extent legally permitted, all interest accrued thereon after the
commencement of any Insolvency or Liquidation Proceeding at the rate, including any applicable post-default rate, specified in the Parity Lien Documents, even if such interest is not enforceable, allowable or allowed as a claim in such proceeding,
and including the discharge or cash collateralization (at the lower of (1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of Liens under the terms of the applicable Parity
Lien Document) of all outstanding letters of credit, if any, constituting Parity Lien Debt); 
  
 FIFTH, to the respective Priority Lien Representatives for application to the payment of all outstanding amounts owed to the holders of
Priority Lien Obligations in excess of Priority Lien Cap; and 
  
 SIXTH, any surplus remaining after the payment in full in cash of the amounts described in the preceding clauses will be paid to the Borrower or the applicable Pledgor, as the case may be, its successors or assigns,
or as a court of competent jurisdiction may direct. 
  
 (b) In connection with the application of proceeds pursuant to Section 4.1(a), except as otherwise directed by an Act of Required Debtholders, the Priority Lien Collateral Agent may sell any non-cash proceeds for cash prior to the
application of the proceeds thereof. 
  

 23 

 SECTION 4.2 Application of Proceeds in Distributions by the Collateral Agent. 
  
 (a) Notwithstanding Section 4.1, following the
Discharge of Priority Lien Obligations, the Collateral Agent will apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral in the following order of application: 
  
 FIRST, to the payment of all amounts payable under the
Parity Lien Documents on account of the Collateral Agent’s fees and any reasonable legal fees, costs and expenses or other liabilities of any kind incurred by the Collateral Agent or any co-trustee or agent of the Collateral Agent in connection
with any Security Document; 
  
 SECOND, in
accordance with clauses FOURTH and SIXTH of Section 4.1(a). 
  
 (b) If any Parity Lien Representative or any holder of a Parity Lien Obligation collects or receives any proceeds of such foreclosure, collection or other enforcement that should have been applied to the payment of
the Priority Lien Obligations in accordance with Section 4.1(a) above, whether after the commencement of an Insolvency or Liquidation Proceeding or otherwise, such Parity Lien Representative or such holder of a Parity Lien Obligation, as the
case may be, will forthwith deliver the same to the Priority Lien Collateral Agent, for the account of the holders of the Priority Lien Obligations and other Obligations secured by a Permitted Prior Lien, to be applied in accordance with
Section 4.1(a). Until so delivered, such proceeds will be held by that Parity Lien Representative or that holder of a Parity Lien Obligation, as the case may be, for the benefit of the holders of the Priority Lien Obligations and other
Obligations secured by a Permitted Prior Lien. 
  
 (c) This section 4.2 is intended for the benefit of, and will be enforceable as a third party beneficiary by, each present and future holder of Secured Obligations, each present and future Secured Debt Representative, the Priority Lien
Collateral Agent as holder of Priority Liens and the Collateral Agent as holder of Parity Liens. The Secured Debt Representative of each future Series of Secured Debt will be required to deliver a Lien Sharing and Priority Confirmation to the
Priority Lien Collateral Agent, the Collateral Agent and each other Secured Debt Representative at the time of incurrence of such Series of Secured Debt. 
  
 (d) In connection with the application of proceeds pursuant to Section 4.2(a), except as otherwise directed by an Act of Required
Debtholders, the Collateral Agent may sell any non-cash proceeds for cash prior to the application of the proceeds thereof. 
  

 24 

 SECTION 4.3 Additional Secured Debt. 
  
 (a) The Borrower or other applicable Pledgor will be
permitted to designate as an additional holder of Secured Obligations hereunder each Person who is, or who becomes, the registered holder of Parity Lien Debt or the registered holder of Priority Lien Debt incurred by the Borrower or such other
Pledgor after the date of this Agreement in accordance with the terms of all applicable Secured Debt Documents. The Borrower or other applicable Pledgor may effect such designation by delivering to the Priority Lien Collateral Agent and the
Collateral Agent, with copies to each previously identified Secured Debt Representative, each of the following: 
  
 (1) an Officers’ Certificate stating that: 
  

(A) the Borrower or such other Pledgor intends to incur additional Secured Debt (“Additional Secured
Debt”) which will either be (i) Priority Lien Debt permitted by each applicable Secured Debt Document to be secured by a Priority Lien equally and ratably with all previously existing and future Priority Lien Debt or
(ii) Parity Lien Debt permitted by each applicable Secured Debt Document to be secured with a Parity Lien equally and ratably with all previously existing and future Parity Lien Debt; 
  
 (2) evidence that the Borrower or such other Pledgor has
duly authorized, executed (if applicable) and recorded (or caused to be recorded) in each appropriate governmental office all relevant filings and recordations to ensure that the Additional Secured Debt is secured by the Collateral in accordance
with the Priority Lien Security Documents and the Security Documents; and 
  
 (3) a written notice specifying the name and address of the Secured Debt Representative for such series of Additional Secured Debt for purposes of Section 6.8. 
  
 Notwithstanding the foregoing, nothing in this Agreement will be construed to allow the
Borrower or any other Pledgor to incur additional Indebtedness unless otherwise permitted by the terms of all applicable Secured Debt Documents. 
  
 (b) A person to be designated as an additional holder of Secured Obligations hereunder must, prior to such designation, 
  
 (1) sign, through its designated Secured Debt Representative
identified pursuant to Section 4.3(a), an Intercreditor Agreement Joinder; and 
  
 (2) deliver a Lien Sharing and Priority Confirmation. 
  
 ARTICLE 5. OBLIGATIONS ENFORCEABLE BY THE BORROWER AND THE OTHER PLEDGORS 
  
 SECTION 5.1 Release of Liens on Collateral. 
  
 The Collateral Agent agrees for the benefit of the Borrower
and the other Pledgors that if Collateral Agent at any time receives: 
  
 (1) an Officers’ Certificate stating that (A) the signing officer has read Article 5 of this Agreement and understands the provisions and the definitions relating hereto, (B) such officer has made
such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not the conditions precedent in this Agreement and all other Secured Debt Documents, if any, relating to the release of the
Collateral have been complied with, (C) in the opinion of such officer, such conditions precedent, if any, have been complied with and (D) such officer has been 

  

 25 

 
informed by the Priority Lien Representative that in its view such release is permitted by this Agreement and all other Secured Debt Documents; and

  
 (2) the proposed instrument or instruments
releasing such Lien as to such property in recordable form, if applicable; 
  
 then the Collateral Agent will execute (with such acknowledgements and/or notarizations as are required) and deliver such release to the Borrower or other applicable Pledgor on or before the later of (x) the date specified in such
request for such release and (y) the fifth Business Day after the date of receipt of the items required by this Section 5.1 by the Collateral Agent. 
  

SECTION 5.2 [Intentionally Omitted]. 
  
 SECTION 5.3 Collateral Agent not Required to Serve, File or Record. Subject to Section 5.4 hereof, the Collateral Agent is not required to
serve, file, register or record any instrument releasing or subordinating their Liens on any Collateral to any third party; provided, however, that if the Borrower or any other Pledgor shall make a written demand for a termination statement
under Section 9-513(c) of the UCC, the Collateral Agent shall comply with the written request of such Borrower or Pledgor to comply with the requirements of such UCC provision; provided, further, that the Collateral Agent must
first confirm with the Secured Debt Representatives that the requirements of such UCC provisions have been satisfied. 
  
 SECTION 5.4 Release of Liens in Respect of Notes. The Collateral Agent’s Parity Lien will no longer secure the Notes outstanding under the
Indenture or any other Obligations under the Indenture, and the right of the holders of the Notes and such Obligations to the benefits and proceeds of the Collateral Agent’s Parity Lien on the Collateral will terminate and be discharged:

  
 (1) upon satisfaction and discharge of the
Indenture as set forth under Article 12 of the Indenture; 
  
 (2) upon a Legal Defeasance or Covenant Defeasance (each as defined under the Indenture) of the Notes as set forth under Article 8 of the Indenture; 
  
 (3) upon payment in full and discharge of all Notes outstanding under the Indenture and all Obligations that
are outstanding, due and payable under the Indenture at the time the Notes are paid in full and discharged; 
  
 (4) in whole or in part, with the consent of the holders of the requisite percentage of Notes in accordance with Article 9 of the
Indenture; 
  
 (5) as to any Collateral that is
sold, transferred or otherwise disposed of by the Borrower or any other Pledgor to a Person that is not (either before or after such sale, transfer or disposition) the Borrower or a Restricted Subsidiary (as defined under the Indenture) of the
Borrower in a transaction or other circumstance that complies with Section 4.10 of the Indenture, if any, and is permitted by all of the other Secured Debt Documents, at the time of such sale, transfer or other disposition or to the extent of
the interest sold, transferred or otherwise disposed of; provided, that the Collateral Agent’s 

  

 26 

 
Liens upon the Collateral will not be released if the sale or disposition is subject to the “Merger, Consolidation or Sale of Assets” provisions of
the Indenture; 
  
 (6) upon the release of less
than all or substantially all of the Collateral, if consent to the release of all Priority Liens on such Collateral has been given by an Act of Required Debtholders; or 
  
 (7) upon the release of all or substantially all of the Collateral, if (A) consent to release of that
Collateral has been given by the requisite percentage or number of holders of each Series of Secured Debt at the time outstanding as provided for in the applicable Secured Debt Documents and (B) the Borrower has delivered an Officers’
Certificate to the Priority Lien Collateral Agent and the Collateral Agent certifying that any such necessary consents have been obtained; 
  
 provided, however, with respect to clauses (5), (6) and (7) of this Section, that the security interests on the
applicable Collateral held by the Priority Lien Collateral Agent are also released. 
  
 ARTICLE 6. MISCELLANEOUS PROVISIONS 
  
 SECTION 6.1 Amendment of this Agreement. Any amendment to this Agreement must be agreed by all parties hereto. 
  
 SECTION 6.2 Voting. In connection with any matter under this Agreement requiring a vote of holders of Secured Debt, each Series of Secured Debt
will cast its votes in accordance with the Secured Debt Documents governing such Series of Secured Debt. The amount of Secured Debt to be voted by a Series of Secured Debt will equal (1) the aggregate principal amount of Secured Debt held by
such Series of Secured Debt (including outstanding letters of credit whether or not then available or drawn), plus (2) other than in connection with an exercise of remedies, the aggregate unfunded commitments to extend credit which, when
funded, would constitute Indebtedness of such Series of Secured Debt. Following and in accordance with the outcome of the applicable vote under its Secured Debt Documents, the Secured Debt Representative of each Series of Secured Debt will cast all
of its votes as a block in respect of any vote under this Agreement. 
  
 SECTION 6.3 Further Assurances. Upon the reasonable request of the Priority Lien Collateral Agent, Collateral Agent or any Secured Debt Representative at any time and from time to time, the Borrower and each of the other Pledgors
will promptly execute, acknowledge and deliver such security documents, instruments, certificates, notices and other documents, and take such other actions as may be reasonably required, or that the Priority Lien Collateral Agent or Collateral Agent
may reasonably request, to create, perfect, protect, assure or enforce the Priority Liens and Parity Liens and the benefits intended to be conferred, in each case as contemplated by the Priority Lien Documents and the Parity Lien Documents, for the
benefit of the holders of Priority Lien Obligations and Parity Lien Obligations. 
  

 27 

 SECTION 6.4 Bailee for Perfection. Solely for purposes of perfecting the Parity Liens of the
Collateral Agent in any portion of the Collateral in the possession of the Priority Lien Collateral Agent (or its agents or bailees) as part of the collateral securing the Priority Lien Obligations including, without limitation, any instruments,
goods, negotiable documents, tangible chattel paper, certificated securities or money, the Priority Lien Collateral Agent and the Priority Lien Representatives acknowledge that the Priority Lien Collateral Agent also holds that property as bailee
for the benefit of the Collateral Agent for the benefit of the holders of Parity Lien Obligations. 
  
 SECTION 6.5 Delivery of Collateral and Proceeds of Collateral. Following the Discharge of Priority Lien Obligations, the Priority Lien Collateral
Agent will, to the extent permitted by applicable law, deliver to (1) the Collateral Agent or (2) such other person as a court of competent jurisdiction may otherwise direct, (a) any Collateral held by, or on behalf of, the Priority
Lien Collateral Agent or any holder of Priority Lien Obligations, and (b) all proceeds of Collateral held by, or on behalf of, the Priority Lien Collateral Agent or any holder of Priority Lien Obligations, whether arising out of an action taken
to enforce, collect or realize upon any Collateral or otherwise. Such Collateral and such proceeds will be delivered without recourse and without any representation or warranty whatsoever as to the enforceability, perfection, priority or sufficiency
of any Lien securing or guarantee or other supporting obligation for any Priority Lien Debt or Parity Lien Debt, together with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. 
  
 SECTION 6.6 Relative Rights. Nothing in the Note Documents will:

  
 (1) impair, as Borrower and the holders of
the Notes, the obligation of the Borrower to pay principal of, premium and interest and Special Interest, if any, on the Notes in accordance with their terms or any other obligation of the Borrower or any other Pledgor; 
  
 (2) affect the relative rights of holders of Notes as
against any other creditors of the Borrower or any other Pledgor (other than holders of Priority Liens, Permitted Prior Liens or other Parity Liens); 
  
 (3) restrict the right of any holder of Notes to sue for payments that are then due and owing (but not enforce any judgment in respect
thereof against any Collateral to the extent specifically prohibited by the provisions of Section 3.2, Section 3.3 or Section 3.6); 
  
 (4) restrict or prevent any holder of Notes or other Parity Lien Obligations, the collateral agent or any Parity Lien Representative from
exercising any of its rights or remedies upon a Default (as defined in Section 1.01 of the Indenture) or Event of Default (as defined in Section 1.01 of the Indenture) not specifically restricted or prohibited by Section 3.2,
Section 3.3 or Section 3.6; or 
  
 (5)
restrict or prevent any holder of Notes or other Parity Lien Obligations, the collateral agent or any Parity Lien Representative from taking any lawful action in an 

  

 28 

 
insolvency or liquidation proceeding not specifically restricted or prohibited by Section 3.2, Section 3.3 or Section 3.6. 
  
 SECTION 6.7 Successors and Assigns. Neither the Borrower nor any other
Pledgor may delegate any of its duties or assign any of its rights hereunder, and any attempted delegation or assignment of any such duties or rights will be null and void. All obligations of the Borrower and the other Pledgors hereunder will inure
to the sole and exclusive benefit of, and be enforceable by, the Priority Lien Collateral Agent, the Collateral Agent, each Secured Debt Representative and each present and future holder of Secured Obligations, each of whom will be entitled to
enforce this Agreement as a third-party beneficiary hereof, and all of their respective successors and assigns. 
  
 SECTION 6.8 Delay and Waiver. No failure to exercise, no course of dealing with respect to the exercise of, and no delay in exercising, any right,
power or remedy arising under this Agreement or any of the other Security Documents or Priority Lien Security Documents will impair any such right, power or remedy or operate as a waiver thereof. No single or partial exercise of any such right,
power or remedy will preclude any other or future exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
  
 SECTION 6.9 Notices. Any communications, including notices and
instructions, between the parties hereto or notices provided herein to be given may be given to the following addresses: 
  

			
	If to the Priority Lien Collateral Agent:	  	Bank of America, N.A.
	 	  	40 Broad Street
	 	  	Boston, Massachusetts 02109
	 	  	Attention: Kathleen Dimock
	 	  	Fax: (617) 434-6685)
		
	 	  	with a copy to:
		
	 	  	Riemer & Braunstein, LLP
	 	  	Three Center Plaza
	 	  	Boston, Massachusetts 02108
	 	  	Attention: Kevin J. Simard, Esquire
	 	  	Fax: (617) 880-3456
		
	If to the Collateral Agent:	  	Wells Fargo Bank, N.A.
	 	  	Corporate Trust Services
	 	  	213 Court Street, Suite 703
	 	  	Middletown, CT 06457
	 	  	Facsimile No.: (860) 704-6219
	 	  	Attention: Joseph P. O’Donnell

  

 29 

			
	If to the Borrower or any other Pledgor:	  	Brookstone, Inc.
	 	  	One Innovation Way
	 	  	Merrimack, New Hampshire 03054
	 	  	Facsimile No.: (603) 577-8011
	 	  	Attention: General Counsel
		
	 	  	with a copy to:
		
	 	  	Kaye Scholer LLP
	 	  	425 Park Avenue
	 	  	New York, New York 10022
	 	  	Facsimile No.: (212) 836-8689
	 	  	Attention: Stephen C. Koval
		
	If to the Credit Agreement Agent:	  	Bank of America, N.A.
	 	  	40 Broad Street
	 	  	Boston, Massachusetts 02109
	 	  	Attention: Kathleen Dimock
	 	  	Fax: (617) 434-6685)
		
	 	  	with a copy to
		
	 	  	Riemer & Braunstein, LLP
	 	  	Three Center Plaza
	 	  	Boston, Massachusetts 02108
	 	  	Attention: Kevin J. Simard, Esquire
	 	  	Fax: (617) 880-3456
		
	If to the Trustee:	  	Wells Fargo Bank, N.A.
	 	  	Corporate Trust Services
	 	  	213 Court Street, Suite 703
	 	  	Middletown, CT 06457
	 	  	Facsimile No.: (860) 704-6219
	 	  	Attention: Joseph P. O’Donnell

  
 and if to any other Secured Debt
Representative, to such address as it may specify by written notice to the parties named above. 
  
 All notices and communications will be mailed by first class mail, certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery, to the relevant address set forth above or, as to holders of Secured Debt, its address shown on the register kept by the office or agency where the relevant Secured Debt may be presented for registration of transfer
or for exchange. To the extent applicable, any notice or communication will also be so mailed to any Person described in § 313(c) of the Trust Indenture Act of 1939, as amended, to the extent required thereunder. Failure to mail a notice
or communication to a holder of Secured Debt or any defect in it will not affect its sufficiency with respect to other holders of Secured Debt. 
  

 30 

 If a notice or communication is mailed in the manner provided above within the time prescribed, it is
duly given, whether or not the addressee receives it. 
  
 SECTION
6.10 Notice Following Discharge of Priority Lien Obligations. Promptly following the Discharge of Priority Lien Obligations with respect to one or more Series of Priority Lien Debt, each Priority Lien Representative with respect to each
applicable Series of Priority Lien Debt that is so discharged will provide written notice of such Discharge to the Priority Lien Collateral Agent, the Collateral Agent and to each other Secured Debt Representative. 
  
 SECTION 6.11 Entire Agreement. This Agreement states the complete
agreement of the parties relating to the matters set forth herein and supersedes all oral negotiations and prior writings in respect of such undertaking. In the event of any conflict between the terms, conditions and provisions of this Agreement and
any such agreement, document or instrument or any other Security Document or Priority Lien Security Document, the terms, conditions and provisions of this Agreement shall prevail. 
  
 SECTION 6.12 Severability. If any provision of this Agreement is invalid, illegal or unenforceable in any respect or
in any jurisdiction, the validity, legality and enforceability of such provision in all other respects and of all remaining provisions, and of such provision in all other jurisdictions, will not in any way be affected or impaired thereby.

  
 SECTION 6.13 Headings. Section headings herein have
been inserted for convenience of reference only, are not to be considered a part of this Agreement and will in no way modify or restrict any of the terms or provisions hereof. 
  
 SECTION 6.14 Obligations Secured. All obligations of the Pledgors set forth in or arising under this Agreement will
be Secured Obligations. The Priority Lien Obligations are secured by the Priority Liens and the Parity Lien Obligations are secured by the Parity Liens. 
  
 SECTION 6.15 Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
  
 SECTION 6.16 Consent to Jurisdiction. All judicial proceedings brought against any party hereto arising out of or relating to this Agreement or any
of the other Security Documents or Priority Lien Security Documents may be brought in any state or federal court of competent jurisdiction in the State, County and City of New York. By executing and delivering this Agreement, each Pledgor, for
itself and in connection with its properties, irrevocably: 
  
 (1) accepts generally and unconditionally the nonexclusive jurisdiction and venue of such courts; 
  
 (2) waives any defense of forum non conveniens; 
  

 31 

 (3) agrees that service of all process in any such proceeding in any such court may be
made by registered or certified mail, return receipt requested, to such party at its address provided in accordance with Section 6.8; 
  
 (4) agrees that service as provided in clause (3) above is sufficient to confer personal jurisdiction over such party in any such
proceeding in any such court and otherwise constitutes effective and binding service in every respect; and 
  
 (5) agrees each party hereto retains the right to serve process in any other manner permitted by law or to bring proceedings against any
party in the courts of any other jurisdiction. 
  
 SECTION 6.17
Waiver of Jury Trial. Each party to this Agreement waives its rights to a jury trial of any claim or cause of action based upon or arising under this Agreement or any of the other Security Documents or Priority Lien Security Documents or any
dealings between them relating to the subject matter of this Agreement or the intents and purposes of the other Security Documents or Priority Lien Security Documents. The scope of this waiver is intended to be all-encompassing of any and all
disputes that may be filed in any court and that relate to the subject matter of this Agreement and the other Security Documents and Priority Lien Security Documents, including contract claims, tort claims, breach of duty claims and all other common
law and statutory claims. Each party to this Agreement acknowledges that this waiver is a material inducement to enter into a business relationship, that each party hereto has already relied on this waiver in entering into this Agreement, and that
each party hereto will continue to rely on this waiver in its related future dealings. Each party hereto further warrants and represents that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily waives its jury
trial rights following consultation with legal counsel. This waiver is irrevocable, meaning that it may not be modified either orally or in writing (other than by a mutual written waiver specifically referring to this Section 6.16 and executed
by each of the parties hereto), and this waiver will apply to any subsequent amendments, renewals, supplements or modifications of or to this Agreement or any of the other Security Documents or Priority Lien Security Documents or to any other
documents or agreements relating thereto. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
  
 SECTION 6.18 Counterparts. This Agreement may be executed in any number of counterparts (including by facsimile), each of which when so executed
and delivered will be deemed an original, but all such counterparts together will constitute but one and the same instrument. 
  
 SECTION 6.19 Effectiveness. This Agreement will become effective upon the execution of a counterpart hereof by each of the parties hereto and
receipt by each party of written notification of such execution and written or telephonic authorization of delivery thereof. 
  
 SECTION 6.20 Additional Pledgors. The Borrower will cause each Person that becomes a Pledgor or is required by any Secured Debt Document to become
a party to this Agreement to become a party to this Agreement, for all purposes of this Agreement, by causing such Person to execute and deliver to the parties hereto an Intercreditor Agreement Joinder, whereupon such Person will be bound by the
terms hereof to the same extent as if it had executed 

  

 32 

 
and delivered this Agreement as of the date hereof. The Borrower shall promptly provide each Secured Debt Representative with a copy of each Intercreditor
Agreement Joinder executed and delivered pursuant to this Section 6.19. 
  
 SECTION 6.21 Continuing Nature of this Agreement. This Agreement, including the subordination provisions hereof, will be reinstated if at any time any payment or distribution in respect of any of the Priority
Lien Obligations is rescinded or must otherwise be returned in an Insolvency or Liquidation Proceeding or otherwise by any holder of Priority Lien Obligations or Priority Lien Representative or any representative of any such party (whether by
demand, settlement, litigation or otherwise). In the event that all or any part of a payment or distribution made with respect to the Priority Lien Obligations is recovered from any holder of Priority Lien Obligations or any Priority Lien
Representative in an Insolvency or Liquidation Proceeding or otherwise, such payment or distribution received by any holder of Parity Lien Obligations or Parity Lien Representative with respect to the Parity Lien Obligations from the proceeds of any
Collateral or any title insurance policy required by any real property mortgage at any time after the date of the payment or distribution that is so recovered, whether pursuant to a right of subrogation or otherwise, that Parity Lien Representative
or that holder of a Parity Lien Obligation, as the case may be, will forthwith deliver the same to the Priority Lien Collateral Agent, for the account of the holders of the Priority Lien Obligations and other Obligations secured by a Permitted Prior
Lien, to be applied in accordance with Sections 4.1 and 4.2. Until so delivered, such proceeds will be held by that Parity Lien Representative or that holder of a Parity Lien Obligation, as the case may be, for the benefit of the holders of the
Priority Lien Obligations and other Obligations secured by a Permitted Prior Lien. 
  
 SECTION 6.22 Insolvency. This Agreement will be applicable both before and after the commencement of any Insolvency or Liquidation Proceeding by or against any Pledgor. The relative rights, as provided for in
this Agreement, will continue after the commencement of any such Insolvency or Liquidation Proceeding on the same basis as prior to the date of the commencement of any such case, as provided in this Agreement. 
  
 SECTION 6.23 Rights and Immunities of Secured Debt Representatives.
The Credit Agreement Agent will be entitled to all of the rights, protections, immunities and indemnities set forth in the Credit Agreement, the Trustee will be entitled to all of the rights, protections, immunities and indemnities set forth in the
Indenture and any future Secured Debt Representative will be entitled to all of the rights, protections, immunities and indemnities set forth in the credit agreement, indenture or other agreement governing the applicable Secured Debt with respect to
which such Person will act as representative, in each case as if specifically set forth herein. In no event will any Secured Debt Representative be liable for any act or omission on the part of the Pledgors, the Priority Lien Collateral Agent or the
Collateral Agent hereunder. 
  

 33 

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

			
	 BROOKSTONE COMPANY, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE INTERNATIONAL
 HOLDINGS, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE PURCHASING, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE STORES, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President

  

 S-1 

			
	 BROOKSTONE RETAIL PUERTO RICO, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE HOLDINGS, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BROOKSTONE PROPERTIES, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 ADVANCED AUDIO CONCEPTS, LIMITED

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 GARDENERS EDEN, INC.

		
	 By:
	 	/s/    PHILIP W. ROIZIN        
	 Name:
	 	Philip W. Roizin
	 Title:
	 	Executive Vice President
	
	 BANK OF AMERICA, N.A.,
as Credit Agreement Agent

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

  

 S-2 

			
	 WELLS FARGO BANK, N.A.,
as Trustee under the Indenture

		
	 By:
	 	/s/    JOSEPH P.
O’DONNELL        
	 Name:
	 	Joseph P. O’Donnell
	 Title:
	 	Vice President
	
	 BANK OF AMERICA, N.A.,
as Priority Lien Collateral Agent

		
	 By:
	 	/s/    DANIEL PLATT        
	 Name:
	 	Daniel Platt
	 Title:
	 	Director
	
	 WELLS FARGO BANK, N.A.,
as Collateral Agent

		
	 By:
	 	/s/    JOSEPH P.
O’DONNELL        
	 Name:
	 	Joseph P. O’Donnell
	 Title:
	 	Vice President

  

 S-3 

 EXHIBIT A 
 to Intercreditor Agreement 
  
 [FORM OF] 
 INTERCREDITOR AGREEMENT JOINDER 
  
 The undersigned,
                            , a
                            , hereby agrees to become party as [a Pledgor] [a Parity Lien
Representative] [a Priority Lien Representative] under the Intercreditor Agreement dated as of                 , 20     (the
“Intercreditor Agreement”) among [Borrower], the Pledgors from time to time party thereto, [Credit Agreement Agent], as Credit Agreement Agent under the Credit Agreement (as defined therein), [Indenture Trustee], as Trustee
under the Indenture (as defined therein), [Priority Lien Collateral Agent], as Priority Lien Collateral Agent, and [Collateral Agent], as Collateral Agent, as amended, supplemented, amended and restated or otherwise modified and in effect from time
to time, for all purposes thereof on the terms set forth therein, and to be bound by the terms of the Intercreditor Agreement as fully as if the undersigned had executed and delivered the Intercreditor Agreement as of the date thereof. 

 
 The provisions of Article 6 of the Intercreditor Agreement will apply
with like effect to this Joinder. 
  
 IN WITNESS WHEREOF, the
parties hereto have caused this Intercreditor Agreement Joinder to be executed by their respective officers or representatives as of                 ,
20    . 
  

			
	 [                                      
                                     
 ]

		
	 By:
	 	 
	 Name:
	 	 
	 Title:Employment Agreement (Louis Mancini)

 Exhibit 10.1 
  
 Execution Copy 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT (this “Agreement”) is entered into as of this 18th day of April, 2006 by and among Louis Mancini (the “Executive”) and Brookstone, Inc., a Delaware corporation (the
“Company”), and solely with respect to Section 5.8 hereof, OSIM Brookstone Holdings, L.P. (“OBH LP”). 
  
 WHEREAS, the Company desires to obtain the benefit of the experience, supervision and services of the Executive in connection with the operation of the
Company and desires to employ the Executive upon the terms and conditions hereinafter set forth, and the Executive is willing and able to accept such employment on such terms and conditions. 
  
 NOW, THEREFORE, in consideration of the premises and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows: 
  
 1. Agreement to Employ; No Conflicts. Upon the terms and subject to the conditions of this Agreement, the Company
hereby employs the Executive, and the Executive hereby accepts employment with the Company. Executive represents that (a) he is entering into this Agreement voluntarily and that his employment hereunder and compliance with the terms and
conditions hereof will not conflict with or result in the breach by him of any agreement to which he is a party or by which he may be bound, (b) he has not, and in connection with his employment with the Company will not, violate any
non-competition, non-solicitation or other similar covenant or agreement by which he is or may be bound, and (c) in connection within his employment with the Company he will not use any confidential or proprietary information he may have
obtained in connection with employment with any prior employer (other than the Company prior to the date hereof). 
  
 2. Employment Duties. During the Term (as defined below), the Executive shall serve as President and Chief Executive Officer of the Company,
subject to the direction and control of the Board of Directors of the Company (the “Board”), and in such capacity shall oversee and direct the operations of the Company and shall perform such other duties consistent with the
responsibilities of a President and Chief Executive Officer, and shall report to the Chairman of the Board. The Executive shall also serve, at the request of the Board, during all or any portion of the Term as a director of the Company and as an
officer or director of any of the Company’s parent entities, subsidiaries or affiliates without any additional compensation therefor other than as specified in this Agreement. During the Term, the Executive shall devote all of his business
time, energy, experience and talents to such employment, shall devote his best efforts to advance the interests of the Company and its subsidiaries and affiliates and shall not engage in any other business activities, as an employee, director,
consultant or in any other capacity, whether or not he receives any compensation therefor, without the prior written consent of the Board. Notwithstanding anything in this Agreement to the contrary, the Executive shall have the right to devote
reasonable time to (i) subject to prior written notification to the Board, serving as a director or member of a committee of any nonprofit organization which does not create a conflict of interest with the Company; (ii) engaging in
charitable and community activities; and (iii) serving as a member of the board of directors of Sports Clip, Inc. provided, that such activities do not interfere with the performance of his duties hereunder. 

 3. Term of Employment. The term of the Executive’s employment hereunder shall commence on the
date hereof and continue until the third anniversary of the date hereof (the “Initial Term”). Effective upon the expiration of the Initial Term and each Additional Term (as defined below), the Executive’s employment hereunder
shall be deemed to be automatically extended, upon the same terms and conditions, for an additional period of one year (each, an “Additional Term”), in each such case, commencing upon the expiration of the Initial Term, or the
then-current Additional Term, as the case may be, unless, at least eighteen (18) months prior to the expiration of the Initial Term or twelve (12) months prior to the expiration of such Additional Term (as applicable), either party hereto
shall have notified the other party hereto in writing that such extension shall not take effect. Such written notice shall state the reasons for such party’s decision not to extend the Initial Term or then-current Additional Term and shall
serve, for purposes of Section 6 hereof, as written notice of the termination by the Company or the Executive, as the case may be, of the Executive’s employment hereunder for the reasons stated therein. Unless otherwise agreed in writing
by the Parties, there shall be a maximum of three (3) Additional Terms. For purposes of this Agreement, the Initial Term and each Additional Term, if any, are collectively referred to as the “Term.” 
  
 4. Place of Employment. The Executive’s principal place of
employment shall be at the Company’s corporate headquarters located at One Innovation Way, Merrimack, New Hampshire 03054. Notwithstanding the foregoing, the Executive acknowledges that the duties to be performed by the Executive hereunder are
such that Executive may be required to travel extensively, including to Asia. 
  
 5. Compensation; Reimbursement; Equity Investment. During the Term, the Company shall pay or provide to the Executive, in full satisfaction for his services provided hereunder, the following: 
  
 5.1. Base Salary. During the Term, the Company shall pay the Executive
a base salary of $650,000 per year (“Base Salary”), payable in accordance with the payroll policies of the Company for senior executives as from time to time in effect, less such amounts as may be required to be withheld by
applicable federal, state and local law and regulations (the “Payroll Policies”). The Base Salary will be increased, effective as each anniversary of the date hereof during the Term, commencing with the first (1st) anniversary of the date hereof, by an amount determined by multiplying the then-current Base Salary by the percentage
increase in the Consumer Price Index — US City Average (or, if available, the Index for the region in which the Company’s executive offices are located) published by the Bureau of Labor Statistics of the United States Department of Labor
(or, if that Index is no longer published, by any substantially equivalent successor thereto) (any such applicable index, the “CPI”) in the calendar year immediately preceding the date on which such Base Salary increase is to be
effected. 
  
 5.2. Cash Bonus. (a) For the 2006, 2007
and 2008 fiscal years, in the event that the Company achieves (as determined by the Board in good faith) at least 100% of the annual EBITDA (as defined below) target (as established by the Board) for such fiscal year (each, a “Minimum EBITDA
Target”) after the accrual of all management bonuses for such fiscal year, the Executive shall be entitled to receive a cash bonus calculated as provided in this Section 5.2(a). In the event that the Company achieves 100% of the
Minimum EBITDA Target for such fiscal year (after the accrual of all management bonuses), the Executive shall be entitled to receive a cash bonus equal to 33% of the Base Salary for the applicable fiscal year. In the event that the Company achieves
greater 

  

 2 

 
than 100% of the Minimum EBITDA Target for such fiscal year (after the accrual of all management bonuses), the Executive shall be entitled to receive a cash
bonus equal the sum of the following: (i) 33% of the Base Salary; plus (ii) 2.21% of the amount by which the EBITDA achieved by the Company for such fiscal year exceeds the Minimum EBITDA Target for such fiscal year; plus (iii) 1.04%
of the amount, if any, by which the EBITDA achieved by the Company for such fiscal year exceeds the sum of (w) the Minimum EBITDA Target for such fiscal year and (x) $5 million; plus (iv) 3.25% of the amount, if any, by which the
EBITDA achieved by the Company for such fiscal year exceeds the sum of (w) the Minimum EBITDA Target for such fiscal year and (x) $15 million. 
  
 By way of example, if the Company achieves (A) EBITDA equal to the applicable Minimum EBITDA Target for 2006, 2007 or 2008, after the accrual of all
management bonuses for the applicable fiscal year, the Executive’s cash bonus would be an amount equal to 33% of the Base Salary for the applicable fiscal year, (B) EBITDA exceeding the applicable Minimum EBITDA Target for 2006, 2007 or 2008 by
$5,000,000, after the accrual of all management bonuses for the applicable fiscal year, the Executive’s cash bonus would be an amount equal to 50% of the Base Salary for the applicable fiscal year, (C) EBITDA exceeding the applicable Minimum
EBITDA Target for 2006, 2007 or 2008 by $15,000,000, after the accrual of all management bonuses for the applicable fiscal year, the Executive’s cash bonus would be an amount equal to 100% of the Base Salary for the applicable fiscal year, (D)
EBITDA exceeding the applicable Minimum EBITDA Target for 2006, 2007 or 2008 by $20,000,000, after the accrual of all management bonuses for the applicable fiscal year, the Executive’s cash bonus would be an amount equal to 150% of the Base
Salary for the applicable fiscal year, and (E) less than 100% of the Minimum EBITDA Target for such fiscal year, after the accrual of all management bonuses for such fiscal year, the Executive’s cash bonus would be equal to zero. 
  
 (b) With respect to each fiscal year during the Term other than the 2006,
2007 and 2008 fiscal years, the Executive shall be entitled to receive a cash bonus in such amount and based upon the achievement of such performance and strategic objectives as shall be established by the Board at the beginning of such fiscal year.

  
 (c) In the event the Company makes an acquisition or
disposition of a company or line of business or other substantial change (including a substantial increase or decrease in capital expenditures to the extent not accounted for in the Minimum EBITDA Target or any performance and strategic objectives
set by the Board as provided in Section 5.2(b), as the case may be) to the Company, the Minimum EBITDA Target or any performance and strategic objectives set by the Board as provided in Section 5.2(b), as the case may be, may be adjusted
by the Board, in good faith, to adjust for such acquisition, disposition or other change. 
  
 (d) For the purpose hereof, “EBITDA” means the consolidated earnings of the Company, including equity in the earnings from non-consolidated subsidiaries, before interest, taxes, depreciation,
amortization and after deduction of all operating expenses, minority interest expenses and incentive compensation, all as calculated in accordance with generally accepted accounting principles consistently applied, as reflected in the Company’s
most recent available audited consolidated financial statements for the immediately preceding fiscal year. 
  

 3 

 5.3. Expenses. The Company shall pay or reimburse the Executive for ordinary and necessary
business expenses incurred by him in the performance of his duties contemplated hereby in accordance with the Company’s usual policies upon receipt from the Executive of written substantiation of such expenses which is reasonably acceptable to
the Company. The Company agrees to reimburse the Executive for the reasonable fees and expenses of his counsel, Honigman Miller Schwartz and Cohn LLP, incurred through the date hereof in connection with the negotiation of this Agreement, upon
receipt by the Company of a copy of an invoice substantiating such fees and expenses, provided that the Company shall not be obligated to reimburse the Executive for any such fees and expenses in excess of $15,000. 
  
 5.4. Benefits. During the Term, the Executive shall be entitled to
participate in all health, life, disability, sick leave, life insurance, retirement and other benefits generally made available by the Company to its senior executives; provided, however, that the Company shall be entitled to amend or
terminate any employee benefit plans which are applicable generally to the Company’s senior executives, officers or other employees. 
  
 5.5. Reimbursement for Relocation Expenses. The Company will reimburse Executive for all reasonable costs associated with moving the personal
belongings of Executive and his family to a new residence within commuting distance to the Company’s headquarters located at One Innovation Way, Merrimack, New Hampshire 03054. The Company shall further reimburse Executive for all reasonable
costs associated with locating a new residence and the commuting costs incurred by Executive during the initial four months of Executive’s employment in traveling from his current residence in Michigan to the Company’s headquarters;
provided, that the aggregate amount subject to reimbursement by the Company under this Section 5.5 shall not exceed $50,000. Notwithstanding the forgoing, the Company shall also pay to the Executive sufficient amounts on a net after tax
basis to cover any increased federal, state and local net income taxes (taking into account the deductibility of state and local income taxes for federal income tax purposes) imposed on Executive on any reimbursements made under this
Section 5.5. 
  
 5.6. Vacation. The Executive shall be
entitled to three weeks of annual paid vacation per year during the Term, which shall accrue on a quarterly basis and which, if unused, may accumulate up to five weeks, to be taken at a time or times which do not unreasonably interfere with his
duties hereunder. Any vacation which accumulates in excess of such five weeks shall be forfeited. 
  
 5.7. Equity Participation. The Executive shall participate in the equity of OBH LP, the indirect parent of the Company and OSIM Brookstone
Holdings, Inc., the general partner of OBH LP and the ultimate parent of the Company (“OBH Inc.”) as follows: 
  
 (a) Investment. Substantially simultaneously herewith, the Executive will purchase 167,590 Class A Common Partnership Interests of OBH LP
(“Class A Interests”) for an aggregate price equal to $225,000, to be paid in cash. The Executive will also be issued 167,590 Common Shares, par value $0.00001 per share, of OBH Inc. (“Common Shares”).

  
 (b) Incentive Class B Interests. Concurrently with the
execution and delivery of this Agreement, the Executive has entered into the Restricted Interest Award Agreement relating to the award to the Executive of 552,555 Class B Common Partnership Interests of OBH LP 

  

 4 

 
(“Class B Interests”) under OBH LP’s management incentive program, subject to the terms and conditions set forth therein. 

 
 (c) Partnership and Shareholders Agreements. Concurrently with the
execution and delivery of this Agreement, the Executive has entered into Joinder Agreements pursuant to which he agrees to become a party to the Second Amended and Restated Partnership Agreement of OBH LP (the “Partnership
Agreement”) and the Shareholders Agreement (of OBH Inc.) (the “Shareholders Agreement”), each dated as of October 4, 2005, and each among OBH Inc. and each of the holders of interests in OBH LP, with respect to the
Executive’s ownership of Class A Interests, Class B Interests and Common Shares. 
  
 5.8. Put Right. Capitalized terms used in this Section 5.8 but not otherwise defined in this Agreement shall have the meanings given to them in the Partnership Agreement 
  
 (a) On the fifth (5th) anniversary of the date hereof (the “Put Date”), the Executive shall have the right to require OBH LP to purchase (or to cause its
designee to purchase) (the “Put Option”), by delivery of a written notice (the “Put Notice”) to OBH LP during the thirty (30) day period following the Put Date (or, if the last day during such period is not a
Business Day, by no later than the first Business Day thereafter) and OBH LP (or its designee) shall be required to purchase any of the Class A Interests purchased by the Executive in accordance with Section 5.7 hereof that are then owned
by Executive (collectively, the “Put Securities”) at a purchase price equal to the Put Price (as defined below) of the Put Securities as of the Put Date. 
  
 (b) The closing of any purchase of Put Securities by OBH LP (or its designee) from the Executive pursuant to this
Section 5.8 shall take place at the principal office of the Company on such date within thirty (30) days after the Put Date as OBH LP shall specify to the Executive in writing. At such closing, the Executive shall deliver to OBH LP (or its
designee), against payment by OBH LP (or its designee) of the purchase price for the Put Securities, at the option of OBH LP (i) from any cash received by OBH LP from its subsidiaries which are not also subsidiaries of Holdco and/or
(ii) in shares of the common stock of Holdco having a fair market value equal to the purchase price for such Put Securities less the amount paid in the manner described in subparagraph 5.8(b)(i) (“Pass-Through Common Stock”),
certificates and/or other instruments representing, together with appropriate transfer powers duly endorsed with respect to, the Put Securities, or legally binding written assignments thereof, free and clear of all Liens (other than pursuant to
securities laws or the Partnership Agreement). In the event that OBH LP elects to deliver Pass-Through Common Stock as provided in the preceding sentence, OBH LP shall cause Holdco to purchase all shares of Pass-Through Common Stock received by the
Executive for cash in an amount equal to the fair market value thereof, on the first (1st) Business Day
following the Executive’s receipt of such Pass-Through Common Stock. Notwithstanding anything to the contrary in this Section 5.8 and on the basis that the Executive makes a timely 83(b) election with respect to his acquisition of the Put
Securities, the sale of the Put Securities (or, if applicable, the Pass-Through Common Stock) will be structured so that the character of any gain on such sale will be long-term capital gains to the Executive for Federal income tax purposes. The
Executive agrees that he will not transfer any shares of Pass-Through Common Stock he receives under this Section 5.8(b) other than to Holdco in accordance with the preceding sentence. 
  

 5 

 (c) In the event that the Executive shall have exercised the Put Option in accordance with the terms of
Section 5.8(a) hereof, OBH LP agrees that it shall not exercise its rights under Section 9.6 of the Partnership Agreement (the “Call Right”) with respect to a termination of the Executive’s employment pending the
closing of the corresponding purchase of Put Securities under Section 5.8(b). Notwithstanding anything to the contrary contained in this Agreement, any exercise by the Executive of the Put Option hereunder shall be deemed to have been
automatically and immediately revoked in the event that the Executive’s employment is terminated by the Company hereunder for Cause. 
  
 (d) For purposes of this Section 5.8, the following capitalized terms shall have the following meanings: 
  
 “Put Price” means, as of the Put Date, an amount
equal to that portion of the Equity Value that would be distributed to the Executive if the Equity Value was distributed to the Limited Partners of OBH LP in accordance with Section 7.1 of the Partnership Agreement on such date assuming the
exercise of all Vested Convertible Interests. 
  
 “Equity Value” means as of the Put Date, an amount equal to (a) the product of Consolidated EBITDA for the most recently completed consecutive twelve (12) month period and 8.5, minus (b) Consolidated
Indebtedness as of the date of most recently prepared consolidated balance sheet of OBH LP and its subsidiaries, minus (c) the aggregate of the Preferred Value of the Preferred Interests outstanding as of such date, plus (d) the average
amount of cash in all of the bank accounts of OBH LP and its subsidiaries as of the last day of each of twelve (12) immediately preceding fiscal months, determined in accordance with GAAP. 
  
 (f) In the event that any Put Securities shall be held by any Permitted
Transferee (as defined in the Partnership Agreement) of the Executive on the Put Date as a result of the transfer of such Put Securities to such Person by the Executive as a result of the Executive’s death, such Person shall have the right to
require OBH LP to purchase the Put Securities held by such Person on the Put Date upon the same terms and conditions set forth in this Section 5.8 as if such Person was the Executive hereunder. 
  
 6. Termination. The Executive’s employment hereunder may be
terminated prior to the expiration of the Term as follows: 
  
 6.1. Upon Death or Disability. If during the Term, the Executive shall become physically or mentally disabled, whether totally or partially, either permanently or so that the Executive, in the good faith judgment of the Board, is
unable as a result of such disability to substantially and competently perform his duties hereunder for a period of 90 consecutive days or for 90 days during any six month period during the Term (a “Disability”), the Company may
terminate the Executive’s employment hereunder. In order to assist the Board in making that determination, the Executive shall, as reasonably requested by the Board, (a) make himself available for medical examinations by one or more
physicians chosen by the Board and (b) grant to the Board and any such physicians access to all relevant medical information concerning him, arrange to furnish copies of his medical records to the Board and use his best efforts to cause his own
physicians to be available to discuss his health with the Board. If the Executive dies during the Term, the Executive’s employment hereunder shall automatically terminate as of the close of business on the date of his death. Upon termination
for Disability or death, the Company shall not be obligated to make any salary, bonus or other payments or provide any benefits under this 

  

 6 

 
Agreement (other than payments for services rendered or expenses incurred through the date of such termination), provided, however, the Company
shall pay to the Executive, or the Executive’s legal representative, (i) the Base Salary (less any amounts that the Executive may receive pursuant to any Company-sponsored long-term disability insurance policy for senior executives as and
if in effect at the date of termination) in accordance with the Payroll Policies for 18 months following such termination, and (ii) in the case of termination for Disability, to the maximum extent permissible under such plans, all employee
benefits specified in Section 5.4 that the Executive was receiving at the date of termination for 18 months following the date of such termination, provided further, however, the Company shall be entitled to amend or
terminate any employee benefit plans which are applicable generally to the Company’s senior executives, officers or other employees. 
  
 6.2. For Cause. The Company may terminate the Executive’s employment hereunder at any time, effective immediately (subject, if applicable, to
the expiration of the cure periods specified in Sections 6.2(b) and (d) below) upon written notice to the Executive, for Cause (as defined below) and all of the Executive’s rights to payments (other than salary payments for services
already rendered and expenses incurred through the date of such termination) and any other benefits otherwise due hereunder shall cease immediately. The Company shall have “Cause” for termination of the Executive if any of the
following has occurred: 
  
 (a) the Executive’s dishonesty or
bad faith in connection with the performance of the Executive’s duties hereunder; 
  
 (b) the refusal or failure by the Executive to use his best efforts to perform duties consistent with the offices held by him as requested by the Board which would not give rise to Good Reason and which is not cured
within thirty (30) days following written notice to the Executive from the Board; 
  
 (c) the Executive’s conviction of, or entering a plea of guilty or nolo contendere to, a felony; 
  
 (d) any willful act or omission on the Executive’s part which is materially injurious to the financial condition or business of the Company or any of
its subsidiaries or affiliates which is not cured within thirty (30) days following written notice to the Executive from the Board; 
  
 (e) a confirmed positive illegal drug test result for the Executive; or 
  
 (f) the discovery of outstanding indebtedness for borrowed money incurred during the Term by the Company in favor of the
Executive which was not approved by the Board prior to such incurrence. 
  
 6.3. Without Cause. (a) The Company may terminate the Executive’s employment hereunder without Cause at any time upon written notice to the Executive, and upon such termination, the Executive shall have the right to receive
the Base Salary in accordance with the Payroll Policies, and all employee benefits specified in Section 5.4 that the Executive was receiving at the date of termination, to the maximum extent permissible under such plans, for 18 months following
the date of such termination, provided, however, the Company shall be entitled to amend or terminate any employee benefit plans which are applicable generally to the 

  

 7 

 
Company’s senior executives, officers or other employees. (b) Notwithstanding the foregoing, if during the period in which salary and/or benefits
continue according to the preceding sentence, the Executive accepts other employment, (i) his Base Salary due after termination shall be reduced by the amount of his base compensation in his new employment, and (ii) the continuation of his
employee benefits hereunder shall cease. (c) It is further acknowledged and agreed by the parties that the actual damages to the Executive in the event of termination under this Section 6.3 would be difficult if not impossible to
ascertain, and, therefore, the salary and benefit continuation provisions set forth hereinabove shall be the Executive’s sole and exclusive remedy in the case of termination under this Section 6.3 and shall, as liquidated damages or
severance pay or both, be considered for all purposes in lieu of any other rights or remedies, at law or in equity, which the Executive may have in the case of such termination. (d) Notwithstanding any provision herein to the contrary, if the
Executive’s employment hereunder is terminated by the Company without Cause upon a Change in Control (as defined below) in which the Executive is given the opportunity (regardless of whether he exercises such opportunity in whole, part or not
at all) to sell or dispose of, on the same terms as afforded other selling equity holders, and in the same transaction or transactions, all but not less than all of the equity (including any vested Class B Interests) then held by him in OBH Inc. and
OBH LP, then the Company shall have no obligation to pay any salary and/or benefits set forth in this Section 6.3. (e) For purposes hereof, a “Change in Control” shall be deemed to have occurred if (a) any person
(other than OSIM, JWC or Temasek or their respective affiliates), or any two or more persons acting as a group (other than OSIM, JWC and/or Temasek or their respective affiliates), and all affiliates of such person or persons (each, a
“Group”), who prior to such time beneficially owned less than 50% of the outstanding Class A Equivalents (as defined in the Partnership Agreement), shall acquire Class A Equivalents in one or more transactions or series of
transactions, and after such transaction or transactions such Group beneficially owns 50% or more of the outstanding Class A Equivalents, (b) OBH LP shall sell all or substantially all of its assets to any Group which, immediately prior to
the time of such transaction, beneficially owned less than 50% of the outstanding Class A Equivalents or (c) any Group, who prior to such time beneficially owned less than 50% of the outstanding Class A Equivalents acquires capital
stock of the Company in one or more transactions or series of transactions, and after such transaction or transactions such Group beneficially owns greater than 50% of the Company’s outstanding voting securities. (f) In the event of the
Executive’s death, any payments required to be made by the Company to the Executive under this Section 6.3 shall be made to such individual beneficiary or trust, located at such address, as the Executive may designate by notice to the
Company from time to time or, if the Executive fails to give notice to Company of such a beneficiary, the Executive’s estate. 
  
 6.4. Resignation Without Good Reason. The Executive shall have the right to terminate his employment hereunder upon ninety (90) days’
written notice to the Company, and upon such termination, all of the Executive’s rights to payments (other than salary payments for services already rendered and expenses incurred through the date of such termination) and any other benefits
otherwise due hereunder shall cease immediately. 
  
 6.5.
Resignation For Good Reason. The Executive shall have the right to terminate his employment hereunder at any time, effective upon 60 days’ written notice to the Company, for Good Reason (as defined below), and upon such termination, the
Executive shall receive from the Company the Base Salary in accordance with the Payroll Policies, and the employee benefits specified in Section 5.4 that the Executive was receiving at the date of termination, to the 

  

 8 

 
maximum extent permissible under such plans, for 18 months following the date of such termination, provided, however, that the Company shall be
entitled to amend or terminate any employee benefit plans which are applicable generally to the Company’s senior executives, officers or other employees. Notwithstanding the foregoing, if during the period in which salary and/or benefits
continue pursuant to the preceding sentence, the Executive accepts other employment, (i) his Base Salary due for the period after termination shall be reduced by the amount of his base compensation in his new employment, and (ii) the
continuation of his employee benefits hereunder shall cease. The Executive shall have “Good Reason” for termination of his employment hereunder if any of the following has occurred: 
  
 (a) the Base Salary has been reduced; or 
  
 (b) the Company has reduced or reassigned, in any material respect, the
duties of the Executive hereunder as President and Chief Executive Officer and such event has not been rescinded within 20 business days after the Executive notifies the Company that he objects thereto. 
  
 Notwithstanding the foregoing, the Executive shall not have “Good
Reason” to terminate his employment if he has either consented to any event set forth above or ninety (90) days have elapsed following such event. For the avoidance of doubt, a disagreement between the Executive and the Board with respect
to the policies and strategies adopted or approved by the Board with respect to the Company’s business and affairs, including without limitation matters set forth in any annual operating budget or strategic plan approved by the Board, shall not
constitute “Good Reason” for purposes of this Agreement. In the event of the Executive’s death, any payments required to be made by the Company to the Executive under this Section 6.5 shall be made to such individual beneficiary
or trust, located at such address, as the Executive may designate by notice to the Company from time to time or, if the Executive fails to give notice to Company of such a beneficiary, the Executive’s estate. 
  
 6.6. Release. Notwithstanding the foregoing, in order to be eligible
for any of the payments under Section 6.1 (in the case of termination for Disability), 6.3 or 6.5, the Executive must execute and deliver to the Company a customary general release. 
  
 6.7. Resignations. The Executive shall be deemed to have voluntarily resigned from each officer and each
director position he holds with the Company and/or any of its subsidiaries upon the termination of his employment for any reason. The Executive agrees to provide the Company with any documentation reasonably requested by it to evidence such
resignation(s) promptly following the Company’s request. 
  
 7. Protection of Confidential Information; Non-Competition; Non-Solicitation; Non-Disparagement. 
  
 7.1. Acknowledgment. The Executive agrees and acknowledges that in the course of rendering services to the Company and its clients and customers he
has acquired and will acquire access to and become acquainted with confidential information about the professional, business and financial affairs of the Company, its subsidiaries and affiliates that is non-public, confidential or proprietary in
nature. The Executive acknowledges that the Company is engaged in a highly competitive business and the success of the Company in the marketplace depends upon its good will and reputation for quality and dependability. The Executive agrees and

  

 9 

 
acknowledges that reasonable limits on his ability to engage in activities competitive with the Company are warranted to protect its substantial investment
in developing and maintaining its status in the marketplace, reputation and goodwill. The Executive recognizes that in order to guard the legitimate interests of the Company, it is necessary for it to protect all confidential information. The
existence of any claim or cause of action by the Executive against the Company shall not constitute and shall not be asserted as a defense to the enforcement by the Company of this Agreement. The Executive further agrees that his obligations of this
Section 7 shall be absolute and unconditional. 
  
 7.2.
Confidential Information. During and at all times after the Term, the Executive shall keep secret all non-public information, matters and materials of the Company (including subsidiaries or affiliates), including, but not limited to,
know-how, trade secrets, mail order and customer lists, vendor or supplier information, pricing policies, operational methods, any information relating to the Company’s (including any subsidiaries or affiliates) products or product development,
processes, product specifications and formulations, artwork, designs, graphics, services, budgets, business and financial plans, marketing and sales plans and techniques, employee lists and other business, financial, commercial and technical
information of the Company (including any subsidiaries and affiliates) (collectively, the “Confidential Information”), to which he has had or may have access and shall not use or disclose such Confidential Information to any person
other than (a) the Company, its authorized employees and such other persons to whom the Executive has been instructed to make disclosure by the Board, in each case only to the extent required in the course of the Executive’s service to the
Company or as otherwise expressly required in connection with court process, (b) as may be required by law and then only after consultation with the Board to the extent possible or (c) to the Executive’s personal advisors for purposes
of enforcing or interpreting this Agreement, or to a court for the purpose of enforcing or interpreting this Agreement, and who in each case have been informed as to the confidential nature of such Confidential Information and, as to advisors, their
obligation to keep such Confidential Information confidential. “Confidential Information” shall not include any information which is in the public domain during the period of service of the Executive, provided such information is not in
the public domain as a consequence of disclosure by the Executive in violation of this Agreement or by any other party in violation of a confidentiality or non-disclosure agreement with the Company. Upon termination of his employment for any reason,
the Executive shall deliver to the Company all documents, data, papers and records of any nature and in any medium (including, but not limited to, electronic media) in his possession or subject to his control that (i) belong to the Company or
(ii) contain or reflect any information concerning the Company, its subsidiaries and affiliates. 
  
 7.3. Non-Competition. During the Term and for a period of 18 months thereafter (the “Restrictive Period”), the Executive shall
not, in any capacity, whether for his own account or on behalf of any other person or organization, directly or indirectly, with or without compensation, (a) own, operate, manage, or control, (b) serve as an officer, director, partner,
member, employee, agent, consultant, advisor or developer or in any similar capacity to or (c) have any financial interest in, or assist anyone else in the conduct of the business of, the Sharper Image Corporation, Relax the Back, Hammacher
Schlemmer or Discovery Channel Store (a “Specified Company”) or any company whose business substantially overlaps with the Company’s business (together with the Specified Companies, a “Competitor”);
provided, however, that the Executive shall be permitted to own less than five percent (5%) of any class of publicly traded securities of any company (other than a Specified Company). 
  

 10 

 7.4. Non-Solicitation. During the Term and during the Restrictive Period, the Executive shall not,
in any capacity, whether for his own account or on behalf of any other person or organization, directly or indirectly, with or without compensation, (a) solicit, divert or encourage any officers, directors, employees, agents, consultants or
representatives of the Company (including any subsidiary or affiliate), to terminate his, her or its relationship with the Company (including any subsidiary or affiliate), or hire any such officer, director, employee, consultant or representative so
solicited, diverted or encouraged, (b) solicit, divert or encourage any officers, directors, employees, agents, consultants or representatives of the Company (including any subsidiary or affiliate) to become officers, directors, employees,
agents, consultants or representatives of another business, enterprise or entity, (c) hire any employee of the Company (including any subsidiary or affiliate) who has left the employment of the Company (including any subsidiary or affiliate)
(other than as a result of the termination of such employee’s employment by the Company (including any subsidiary or affiliate)) within 12 months of termination of such employee’s employment, (d) solicit, divert or appropriate
any customers, clients, vendors or distributors of the Company (including any subsidiary or affiliate), or (e) influence or attempt to influence any of the customers, clients, vendors, distributors or business partners of the Company (including
any subsidiary or affiliate) to transfer his, her or its business or patronage from the Company to any Competitor of the Company. 
  
 7.5. Non-Disparagement. In consideration of the respective obligations of the parties hereunder, during the Term and during the Restrictive Period,
(i) the Executive, on the one hand, and the Company, J.W. Childs Associates, L.P., OSIM International Ltd and Temasek Capital (Private) Limited and their respective affiliates (collectively, the “Investor Group”), on the other
hand, shall not directly or indirectly (i) engage in any conduct or make any statement, whether in commercial or non-commercial speech, disparaging or criticizing in any way the other, and in the case of the Executive, any parent or subsidiary
of the Company, J.W. Childs, OSIM, Temasek or any affiliate of any of the foregoing entities (the “Investor Entities”), or any products or services offered by any of these entities, or (ii) engage in any other conduct or make
any other statement, in each case, which could be reasonably expected to impair (a) the goodwill or reputation of the other, and in the case of the Executive, the Investor Entities, or (b) in the case of the Executive, the reputation of
any of Investor Entities’ products or services or the marketing of any of the Investor Entities’ products or services, except to the extent required by law and then only after consultation with J.W. Childs, OSIM or Temasek, as applicable,
to the extent possible, or in connection with any dispute between the Executive and any of the Investor Entities. 
  
 7.6. Remedies for Breach. The Company and the Executive agree that the restrictive covenants contained in this Agreement are severable and
separate, and the unenforceability of any specific covenant herein shall not affect the validity of any other covenant set forth herein. The Executive acknowledges that the Company will suffer irreparable harm as a result of a breach of such
restrictive covenants by the Executive for which an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. Accordingly, in the event of any actual or threatened breach by the Executive of any provision of this
Agreement, the Company shall, in addition to any other remedies permitted by law, be entitled to obtain remedies in equity, including, but not limited to, specific performance, injunctive relief, a temporary restraining order, and/or a preliminary
and/or permanent injunction in any court of competent jurisdiction, to prevent or otherwise restrain a breach of this Section 7 without the necessity of proving damages, posting a bond or other security. Such relief shall be in addition to and
not in substitution of any other remedies available to the Company. The existence of any claim or cause of action of the 

  

 11 

 
Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of said
covenants. The Executive shall not defend on the basis that there is an adequate remedy at law. In addition to and not in lieu of any other remedy that the Company may have under this Section 7 or otherwise, in the event of any breach of any
provision of this Section 7 during the period during which the Executive is entitled to receive payments and benefits pursuant to Section 5, which breach is not cured within fifteen (15) days of written notice thereof to the Executive
from the Company, such period shall terminate as of the date of such breach and the Executive shall not thereafter be entitled to receive any salary or other payments or benefits under this Agreement with respect to periods following such date.

  
 7.7. Modification. The parties agree and acknowledge
that the duration, scope and geographic area of the covenants described in this Section 7 are fair, reasonable and necessary in order to protect the Confidential Information, goodwill and other legitimate interests of the Company and that
adequate consideration has been received by the Executive for such obligations. The Executive further acknowledges that after termination of his employment with the Company for any reason, he will be able to earn a livelihood without violating the
covenants described in this Section 7 and the Executive’s ability to earn a livelihood without violating such covenants is a material condition to his employment with the Company. If, however, for any reason any court of competent
jurisdiction determines that the restrictions in this Section 7 are not reasonable, that consideration is inadequate or that the Executive has been prevented unlawfully from earning a livelihood, such restrictions shall be interpreted, modified
or rewritten to include the maximum duration, scope and geographic area identified in this Section 7 as will render such restrictions valid and enforceable. 
  
 8. Certain Agreements. 
  
 8.1. Customers, Suppliers. The Executive does not have, and at any time during the Term shall not have, any employment with or any direct or
indirect interest in (as owner, partner, shareholder, employee, director, officer, agent, consultant or otherwise) any supplier to or vendor of the Company (including its subsidiaries or affiliates); provided, however, that the Executive shall be
permitted to own less than five-percent (5%) of any class of publicly traded securities of any company (other than a Specified Company). 
  
 8.2. Certain Activities. During the Term, the Executive shall not (a) give or agree to give, any gift or similar benefit of more than nominal
value to any customer, supplier, or governmental employee or official or any other person who is or may be in a position to assist or hinder the Company in connection with any proposed transaction, which gift or similar benefit, if not given or
continued in the future, might adversely affect the business or prospects of the Company, (b) use any corporate or other funds for unlawful contributions, payments, gifts or entertainment, (c) make any unlawful expenditures relating to
political activity to government officials or others, (d) establish or maintain any unlawful or unrecorded funds in violation of Section 30A of the Securities Exchange Act of 1934, as amended, and (e) accept or receive any unlawful
contributions, payments, gifts, or expenditures. 
  
 8.3.
Certain Representations and Warranties. The Executive hereby represents and warrants to the Company that: 
  

 12 

 (a) The Executive has not, at any time, been convicted in any criminal proceeding and the Executive is
not currently the named subject of a pending criminal proceeding. 
  
 (b) The Executive is not and has not been the subject of any court order, judgment or decree that permanently or temporarily enjoins or enjoined the Executive from engaging in any type of business practice. 
  
 (c) The Executive has not, at any time, been found by a court in a civil
action or by the Securities and Exchange Commission to have violated any federal or state securities law where such judgment has not subsequently been reversed, suspended or vacated. 
  
 (d) During the past five years, no petition under the Bankruptcy Code Title 11, U.S.C. or any state insolvency law has been
filed by or against, nor has any receiver or similar officer been appointed for the business or property of the Executive. 
  
 9. Intellectual Property. All copyrights, trademarks, trade names, service marks and all ideas, inventions, discoveries, secret processes and
methods and improvements, together with any and all patents that may be issued thereon, and all other intangible or intellectual property rights that may be invented, conceived, developed or enhanced by Executive during the term of his employment
under this Agreement that relate to the business or operations of the Company or any subsidiary or affiliate thereof or that result from any work performed by the Executive for the Company or any such subsidiary or affiliate shall be the sole
property of the Company or such subsidiary or affiliate, as the case may be, and Executive hereby waives any right or interest that he may otherwise have in respect thereof. Upon the reasonable request of the Company, Executive shall execute,
acknowledge and deliver any instrument or document reasonably necessary or appropriate to give effect to this Section 9 and, at the Company’s cost, do all other acts and things reasonably necessary to enable the Company or such subsidiary
or affiliate, as the case may be, to exploit the same or to obtain patents or similar protection with respect thereto. 
  
 10. Notices. All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered
personally, (b) upon confirmation of receipt when such notice or other communication is sent by facsimile, (c) one business day after delivery to an overnight delivery courier, or (d) on the fifth day following the date of deposit in
the United States mail if sent first class, postage prepaid, by registered or certified mail. The addresses for such notices shall be as follows: 
  
 (a) For notices and communications to the Company 
  
 c/o J.W. Childs Associates, Inc. 
 111 Huntington Avenue 
 Boston, Massachusetts 02199 
 Fax: (617) 753-1101 
 Attn: Adam L. Suttin 
  

 13 

 with a copy to: 
  
 Kaye Scholer LLP 
 425 Park Avenue 
 New York, New York 10022 
 Fax: (212) 836-8689 
 Attn.: Stephen C. Koval, Esq. and John D. Geelan, Esq. 
  
 (b) For notices and communications to the Executive, to the address or facsimile set forth below his signature hereto, with
a copy to Honigman Miller Schwartz and Cohn LLP, 2290 First National Building, Detroit, MI 48226, Attention: Samuel T. Stahl, Esq. Any party hereto may, by notice to the other, change its address for receipt of notices hereunder. 
  
 11. General. 
  
 11.1. Governing Law. This Agreement shall, in accordance with
Section 5-1401 of the General Obligations Law of the State of New York, be governed by the laws of the State of New York, without regard to any conflicts of laws principles thereof that would call for the application of the laws of any other
jurisdiction. 
  
 Any action or proceeding seeking to enforce any
provision of, or based on any right arising out of, this Agreement may be brought against either of the parties in the courts of the District of New Hampshire, or if it has or can acquire jurisdiction, in the United States District Court for the
District of New Hampshire, and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or
proceeding referred to in the preceding sentence may be served on any party anywhere in the world, whether within or without the District of New Hampshire. 
  
 11.2. Amendment: Waiver. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms hereof may be waived,
only by a written instrument executed by the parties hereto or, in the case of a waiver, by the party waiving compliance. The failure of either party at any time or times to require performance of any provision hereof shall in no manner affect the
right at a later time to enforce the same. No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement. 
  
 11.3. Successors and Assigns. This Agreement shall be binding upon the Executive, without regard to the duration of his employment by the Company
or reasons for the cessation of such employment, and inure to the benefit of his administrators, executors, heirs and assigns, although the obligations of the Executive are personal and may be performed only by him. The Company may assign this
Agreement and its rights, together with its obligations, hereunder (a) in connection with any sale, transfer or other disposition of all or substantially all of its assets or business(es), whether by merger, consolidation or otherwise; or
(b) to any wholly owned subsidiary of the Company, provided that the Company shall remain liable for all of its obligations hereunder. This Agreement shall also be binding upon and inure to the benefit of the Company and its subsidiaries,
successors and assigns. 
  

 14 

 11.4. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall
be considered to have the force and effect of an original. 
  
 11.5. Compliance with Section 409A. Notwithstanding anything herein to the contrary, in the event that the Company reasonably determines that any payment to the Executive hereunder would subject the Executive to the excise tax
under Section 409A of the Internal Revenue Code of 1986, the parties agree that they will use their best efforts to amend this Agreement or to take any other action they deem appropriate or necessary to avoid the imposition of such excise tax.

  
 11.6. Severability. If any portion of this Agreement is
held invalid or inoperative, the other portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held invalid or inoperative. 

 
 11.7. Entire Agreement. This Agreement supersedes all prior
agreements between the parties with respect to its subject matter and is intended (with the documents referred to herein) as a complete and exclusive statement of the terms of the agreement between the parties with respect thereto. 
  

 15 

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

  
  

			
	BROOKSTONE, INC.
		
	By:	 	 /S/    PHILIP ROIZIN

	 	 	

	 	 	 Philip Roizin
 Executive Vice President, Finance and
Administration, Treasurer, Secretary and Chief Financial Officer.

	
	EXECUTIVE:
	
	 /S/    LOUIS MANCINI

	

	Louis Mancini

			
		
	 	 	Address:
		
	 	 	

		
	 	 	

			
		
	  
 Tel.:
	 	

		
	  
 Fax:
	 	

	

  
  

			
	OSIM BROOKSTONE HOLDINGS, L.P., solely with respect to Section 5.8 hereof
		
	By:	 	 /S/    RON SIM CHYE HOCK

	 	 	

	 	 	 Ron Sim Chye Hock
 President

  
  

 16 

			
	OSIM INTERNATIONAL LTD, solely with respect to Section 7.5 hereof
		
	By:	 	 /S/ RON SIM CHYE HOCK

	 	 	

	 	 	 Name: Ron Sim Chye Hock
 Title:   Chairman
and CEO

  
  

			
	TEMASEK CAPITAL (PRIVATE) LIMITED, solely with respect to Section 7.5 hereof
		
	By:	 	 /S/ MARGARET LUI

	 	 	

	 	 	 Name: Margaret Lui
 Title:
  Director

  
  

			
	J.W. CHILDS ASSOCIATES, L.P., solely with respect to Section 7.5 hereof
		
	By:	 	J.W. Childs Associates, Inc., its general partner
		
	By:	 	 /S/ WILLIAM WATTS

	 	 	

	 	 	 Name: William Watts
 Title:   Operating
Partner

	

  

 17

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