Document:

Embarq Corporation 2006 Equity Incentive Plan

 EMBARQ CORPORATION 2006 EQUITY INCENTIVE PLAN 
 (as amended and restated December 7, 2006) 

 Table of Contents 

			
	  	  	 Page

	 Section 1. Purpose
	  	1
		
	 Section 2. General Interpretive Principles and Definitions
	  	1
		
	 Section 3. Administration
	  	5
		
	 Section 4. Shares Subject to Plan and Participant Limits
	  	6
		
	 Section 5. Stock Options
	  	7
		
	 Section 6. Restricted Stock
	  	8
		
	 Section 7. Restricted Stock Unit Awards
	  	9
		
	 Section 8. Stock Appreciation Right Awards
	  	10
		
	 Section 9. Performance Shares, Performance Units and Other Stock Units
	  	11
		
	 Section 10. Performance Awards; Section 162(m) Provisions
	  	12
		
	 Section 11. Change in Control
	  	14
		
	 Section 12. Amendments and Termination
	  	17
		
	 Section 13. General Provisions
	  	17
		
	 Section 14. Effective Date of Plan
	  	
		
	Addendum. Converted Awards for Embarq Employees	  	20
	Appendix A. Restricted Stock Spin-off Adjustment Program	  	27
	Appendix B. RSU Spin-off Adjustment Program	  	30

 EMBARQ CORPORATION 2006 EQUITY INCENTIVE PLAN 
 (as amended and restated December 7, 2006) 
 Section 1. Purpose. The purposes of the Embarq Corporation 2006 Equity Incentive Plan (“Plan”) are to encourage directors, officers and other employees of Embarq Corporation (“Company”) and its Affiliates to
acquire a proprietary and vested interest in the growth and performance of the Company, to generate an increased incentive to contribute to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of
stockholders, and to enhance the ability of the Company and its Affiliates to attract and retain individuals of exceptional talent upon whom, in large measure, the sustained progress, growth and profitability of the Company depends. 
 Section 2. General Interpretive Principles and Definitions. 
 (a) General Interpretive Principles. (i) Words in the singular shall include the plural and vice versa, and words of one gender shall include the other gender, in each case, as the context requires;
(ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Plan and not to any particular provision of this Plan, and references to
Sections and Appendices are references to the Sections of and Appendices to this Plan unless otherwise specified; (iii) the word “including” and words of similar import when used in this Plan shall mean “including, without
limitation,” unless otherwise specified; and (iv) any reference to any U.S. federal, state, or local statute or law shall be deemed to also refer to all amendments or successor provisions thereto, as well as all rules and regulations
promulgated under such statute or law, unless the context otherwise requires. 
 (b) Definitions. As used in the Plan, the following
terms shall have the meanings set forth below: 
 “Affiliate” means any Person with whom the Company would be treated as a
“single employer” for purposes of Code Section 414(b) or (c), but replacing the 80 percent requirement in the regulations under Code Sections 414(b) and (c) with a 50 percent requirement. 
 “Award” means any Option, Restricted Stock, Performance Share, Performance Unit, Restricted Stock Unit, Stock Appreciation Right, or
Other Stock Unit award relating to Shares granted pursuant to the provisions of the Plan. 
 “Award Agreement” means any
written or electronic agreement, contract, or other instrument or document evidencing any Award granted hereunder. 
 “Board” means the Board of Directors of the Company. 
 “Business Day” means any day other than a
Saturday, Sunday or any day designated as a holiday by the Federal government. 
 “Code” means the Internal Revenue Code of
1986. 

 “Committee” means the Compensation Committee of the Board or a subcommittee thereof. Any
such subcommittee that is appointed by the Compensation Committee shall be composed of not less than two Directors, each of whom is both a Non-Employee Director and an “outside director” (within the meaning of Code Section 162(m)).

 “Company” means Embarq Corporation, a Delaware corporation. 
 “Covered Employee” means an Employee who meets the definition of “covered employee” under Code Section 162(m)(3).

 “Director” means a member of the Board. 
 “Disability” means, in the case of a Participant, such Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (b) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan
covering employees of Company. 
 “Employee” means any employee of the Company or any Affiliate. 
 “Exchange Act” means the Securities Exchange Act of 1934. 
 “Executive Officer” means an officer of the Company who is subject to the liability provisions of Section 16 of the Exchange Act. 
 “Exercise Date” means the Business Day on which the holder of an Award that is subject to exercise delivers notice of such exercise to
the Company, accompanied by such payment, attestations, representations or other documentation as the Committee may specify; provided that if such notice is delivered after 11:00 a.m. central standard time (or such other time as the
Committee may specify), the Exercise Date shall be the following Business Day. 
 “Fair Market Value” means, with respect to
any property, the market value of such property determined by such methods or procedures as shall be established from time to time by the Committee; except that the “Fair Market Value” of a Share for purposes of Section 5 and
Section 8 shall mean either (i) the closing trading price of a Share for composite transactions, as published by The Wall Street Journal, for the date in question or, if no trade of Shares shall have been made on that date, the next
preceding date on which there was a trade of Shares or, (ii) if so determined by the Committee, an average selling price during a period specified by the Committee that is within thirty (30) days before or thirty (30) days after the
Grant Date, provided that the commitment to grant the stock right based on such valuation method must be irrevocable before the beginning of the specified period, and such valuation method must be used consistently for grants of stock rights under
the same and substantially similar programs. 
  

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 “Grant Date” means, unless the Committee provides a more specific method of determining
the Grant Date, the date as of which an Award is made to a Participant. For an Option, the Grant Date cannot be a date earlier than the date of the action granting the Option. 
 “Incentive Stock Option” means an Option granted to a Participant under Section 5 that is intended to meet the requirements of Code
Section 422. 
 “Non-Employee Director” shall have the meaning provided for in Rule 16b-3(b)(3) under the Exchange Act.

 “Nonqualified Stock Option” means an Option granted to a Participant under Section 5 that is not intended to be an
Incentive Stock Option. 
 “Option” means any right granted to a Participant under the Plan allowing such Participant to
purchase Shares at such price or prices and during such period or periods as the Committee shall determine. 
 “Other Stock
Unit” means an award, right, interest, or option relating to, or that is valued in whole or in part by reference to, or is otherwise based on, Shares or other property granted to a Participant by the Committee pursuant to Section 9.

 “Outside Director” means a member of the Board who is not an Employee. 
 “Participant” means an Employee or Outside Director who is selected in accordance with Section 3 to receive an Award under the
Plan. 
 “Performance Award” means any Award that will be issued or granted, or become vested or payable, as the case may
be, upon the achievement of certain performance goals (as described in Section 10(b)) to a Participant pursuant to Section 10. 
 “Performance Period” means that period established by the Committee at the time any Performance Award is granted during which the Company’s performance relative to the performance goals specified by the Committee with
respect to such Award is to be measured. 
 “Performance Share” means any grant to a Participant pursuant to Section 9
of a unit valued by reference to a designated number of Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including cash, Shares, or any combination thereof, upon achievement of such
performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter. 
 “Performance Unit” means any grant pursuant to Section 9 of a unit valued by reference to a designated amount of property other than Shares, which value may be paid to the Participant by delivery of such property as
the Committee shall determine, including cash, Shares, or any combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter. 
  

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 “Person” means any individual, corporation, partnership, association, joint-stock
company, trust, unincorporated organization, or government or political subdivision thereof. 
 “Resignation with Good
Reason” means, unless otherwise specified in the Employee’s employment agreement or the Award Agreement, in which case such definition shall control, a resignation by an Employee within the one (1) year period following a Change
in Control (as defined in Section 11) and within sixty (60) days following the effective date of any one or more of the following events or circumstances (other than an event to which that Employee has given a prior written consent) unless
each of the events or circumstances are corrected in all material respects before the effective date of such resignation: 
  

	 	(i)	a substantial reduction in the Employee’s duties and responsibilities from those in effect immediately before the Change in Control; 

  

	 	(ii)	a reduction in the Employee’s base salary or short-term cash incentive opportunity, as in effect immediately before the Change in Control, except for across-the-board salary
reductions similarly affecting all officers of the Company and all officers of any Person in control of the Company; or 

  

	 	(iii)	the Company’s directive to transfer the Employee’s primary work site to a location more than fifty (50) miles from the Employee’s primary work site, except if
such site is closer to the Employee’s primary residence, immediately prior to the Change in Control. 

 “Restricted Stock” means any Share issued pursuant to Section 6 which is subject to both a substantial risk of forfeiture and restrictions on the holder’s right to sell, transfer, pledge, or assign such Share. The
Committee, in its sole discretion, may impose such other restrictions (including any restriction on the right to vote such Share, and the right to receive any cash dividends), which restrictions may lapse separately or in combination at such time or
times, in installments or otherwise, as the Committee may deem appropriate. 
 “Restricted Stock Unit” or
“RSU” means any grant pursuant to Section 7 of a right to receive a Share (or a cash payment equal to the Fair Market Value of a Share) at some future date. 
 “Restricted Stock Unit Account” or “RSU Account” means an account established on the Company’s books for each
Participant who receives an Award of RSUs. 
 “Separation from Service” means a Participant’s death, retirement,
termination of service as an Outside Director or other termination of employment with the Company or Affiliate. A Separation from Service shall not occur if a Participant is on military leave, sick leave or other bona fide leave of absence (such as
temporary employment by the government) if the period of such leave does not exceed six months, or if longer, as long as the Participant has a right (either by contract or by statute) to reemployment with the Company. “Separation from
Service” shall be interpreted in a manner consistent with Code Section 409A(a)(2)(A)(i). 
 “Share” means a share
of the common stock of the Company. 
  

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 “Stock Appreciation Right” or “SAR” means a right granted under
Section 8 to receive, as of the date specified in the Award Agreement, an amount equal to the number of Shares with respect to which the SAR is exercised, multiplied by the excess of (i) the Fair Market Value of one Share on the Exercise
Date, over (ii) the Strike Price. 
 “Strike Price” means the per-Share price used as the baseline measure for the
value of a SAR, as specified in the Award Agreement. 
 “Termination Date” means, except as otherwise provided in an Award
Agreement, (i) with respect to any Employee, the later of the date on which the Employee ceases to be employed by the Company or any Affiliate, and the date he or she ceases to receive severance benefits under any applicable plan for the
payment of severance benefits by the Company or any Affiliate, and (ii) with respect to any Outside Director, the date on which the Outside Director’s service ends. 
 “Termination for Cause” means, in the case of an Employee, unless otherwise provided in the Participant’s employment agreement or
the Award Agreement, an involuntary termination of employment because (i) the Employee has materially breached the Company’s Code of Ethics, or the code of ethics of the Affiliate which employs the Employee; (ii) the Employee has
materially breached the Embarq Employee Agreement Regarding Property Rights and Business Practices (as it may be amended and renamed from time to time); (iii) the Employee has engaged in acts or omissions constituting dishonesty, intentional
breach of a fiduciary obligation, or intentional acts of wrongdoing or misfeasance; or (iv) the Employee has acted intentionally and in bad faith in a manner that results in a material detriment to the assets, business, or prospects of the
Employee’s employer. In the case of an Outside Director, “Termination for Cause” means removal from service as a director for one or more of the reasons set forth in (i)—(iv) above. 
 Section 3. Administration. 
 (a) Powers of the
Committee. The Plan shall be administered by the Committee. The Committee shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the
Board, to: 
  

	 	(i)	select the Participants to whom Awards may from time to time be granted hereunder; 

  

	 	(ii)	determine the type or types of Awards to be granted to each Participant hereunder; 

  

	 	(iii)	determine the number of Shares to be covered by each Award granted hereunder; 

  

	 	(iv)	determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Award granted hereunder; 

  

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	 	(v)	determine whether, and in what amount, dividend equivalents shall be credited to any Award; 

  

	 	(vi)	determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other property, or canceled or suspended; 

  

	 	(vii)	interpret and administer the Plan and any instrument or agreement entered into under the Plan; 

  

	 	(viii)	establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; 

  

	 	(ix)	delegate to officers, employees or independent contractors of the Company matters involving the routine administration of the Plan and which are not specifically required by any
provision of this Plan to be performed by the Board or the Committee; 

  

	 	(x)	delegate, in accordance with Delaware law, to the Company’s officers the right to grant Options to Employees who are not Executive Officers or Outside Directors and to cancel
or suspend Options granted to Employees who are not Executive Officers or Outside Directors; provided, however, that, unless otherwise permitted under Delaware law, the Committee shall not delegate the authority to grant Awards other than Options;
and 

  

	 	(xi)	make any other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan. Decisions of the Committee shall be final,
conclusive and binding upon all Persons, including the Company, any Affiliate, any Participant, any stockholder, and any Employee. 

 (b) Powers of the Corporate Secretary. The Company’s Corporate Secretary shall have the discretion and authority to establish any and all procedures, forms, and rules of a ministerial nature that the Corporate Secretary
considers necessary or desirable for the orderly administration of the Plan and to exercise any authority delegated to the Corporate Secretary under Section 3(a)(ix). The Corporate Secretary shall also have other administrative responsibilities
as set forth elsewhere in the Plan. 
 Section 4. Shares Subject to Plan and Participant Limits. 
 (a) Plan Limit. Subject to adjustment as provided in Section 4(c), the total number of Shares available for issuance pursuant to Awards
granted under the Plan shall be 24,500,000. In addition, any Shares issued by the Company as a result of the Company’s assumption or substitution of outstanding grants under a plan of a company acquired in a corporate transaction shall not
reduce the Shares available for issuance under the Plan. Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued Shares or treasury Shares. Any Shares subject to Awards granted under the Plan that are thereafter
forfeited, cancelled, expire or are settled in cash, shall again be available for issuance under the Plan. 
  

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 (b) Participant Limit. No Participant shall be granted one or more Awards of Options and/or SARs
in any calendar year covering more than 1,000,000 Shares. No Participant shall be granted one or more Awards of RSUs, Restricted Stock or Performance Shares in any calendar year covering more than 500,000 Shares. No
Participant shall be granted cash-based Performance Units or other cash-based Awards the value of which may be paid, credited or vested in any calendar year in excess of $7.5 Million. The maximum share limits set forth herein shall be
adjusted to the extent necessary to reflect adjustments to Shares required by Section 4(c).
 (c) Adjustments in Authorized
Shares. In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, extraordinary cash dividend, split-up, spin-off, forward or reverse stock split, or other change in the corporate structure affecting the
Shares, an adjustment will be made in the aggregate number and class of Shares which may be issued under the Plan, in the number and class of Shares that may be subject to an Option or a SAR granted to any individual in any year under the Plan, in
the number, class and Option price of Shares subject to outstanding Options granted under the Plan, and in the value of, or number or class of Shares subject to, other Awards granted under the Plan as may be determined to be appropriate by the
Committee, in its sole discretion, and (where applicable) consistent with the requirements of Code Section 409A, provided that the number of Shares subject to any Award shall always be a whole number. 
 Section 5. Stock Options. 
 (a) Eligibility
and Grant of Option. Options may be granted hereunder to Participants either alone or in addition to other Awards. The Committee in its sole discretion shall designate whether an Option is an Incentive Stock Option or a Nonqualified Stock
Option. Unless the Option Award Agreement specifically designates an Option as an Incentive Stock Option, such Option shall be deemed a Nonqualified Stock Option. Each grant of Options to a Participant under the Plan shall be evidenced by an Award
Agreement in such form as the Committee may from time to time approve. 
 (b) Number of Shares. Each Option Award Agreement shall
state that it covers a specified number of Shares, as determined by the Committee. 
 (c) Exercise Price. Each Award Agreement shall
state the exercise price per Share purchasable under an Option, determined by the Committee in its sole discretion; provided that such exercise price shall not be less than the Fair Market Value of the Share on the Grant Date of the Option.

 (d) Option Period. Subject to the limitations described below in Section 5(f) relating to Incentive Stock Options, each Award
Agreement shall state the term of each Option, not to exceed ten years, fixed at the Grant Date by the Committee in its sole discretion. 
 (e) Method of Exercise. Subject to the other provisions of the Plan and any applicable Award Agreement, any Option may be exercised by the Participant in whole or in part at such time or times, and the Participant may pay the
exercise price in such form or forms, 

  

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including payment by delivery of cash, Shares or other consideration (including, where permitted by law and the Committee, Awards) having a Fair Market Value
on the Exercise Date equal to the total exercise price, or by any combination of cash, Shares and other consideration, as the Committee may permit. 
 (f) Incentive Stock Options. No Incentive Stock Option shall be exercisable after the expiration of ten years from the date the Option is granted. In accordance with rules and procedures established by the Committee, the aggregate
Fair Market Value (determined as of the time of grant) of the Shares with respect to which Incentive Stock Options held by any Participant that are exercisable for the first time by such Participant during any calendar year under the Plan (and under
any other benefit plans of the Company or of any parent or subsidiary corporation of the Company) shall not exceed $100,000 or, if different, the maximum limitation in effect at the time of grant under Code Section 422. The terms of any
Incentive Stock Option granted hereunder shall comply in all respects with the provisions of Code Section 422. 
 (g) Form of
Settlement. All Options shall be settled in the form of Shares. 
 (h) Repriced Options Subject to Stockholder Approval. The
Committee may grant Options in replacement of Options previously granted under this Plan or any other compensation plan of the Company, for such purposes and on such terms (including Option price) as it deems appropriate, subject to stockholder
approval if such grant would be deemed to be a repricing under the rules of the New York Stock Exchange. 
 (i) Other Terms. As the
Committee shall deem desirable, each Option may be subject to additional terms and conditions not inconsistent with the provisions of the Plan. 
 Section 6. Restricted Stock. 
 (a) Eligibility and Issuance of Restricted Stock. Restricted Stock Awards may be
issued hereunder to Participants, for such consideration not less than the minimum consideration required by applicable law, as the Committee may determine, either alone or in addition to other Awards granted under the Plan. The provisions of
Restricted Stock Awards need not be the same with respect to each Participant. Each grant of Restricted Stock to a Participant under the Plan shall be evidenced by an Award Agreement in such form as the Committee may from time to time approve.

 (b) Number of Shares. Each Award Agreement shall state that it covers a specified number of Shares of Restricted Stock, as
determined by the Committee. 
 (c) Restrictions. A Participant’s right to retain Shares of Restricted Stock shall be subject to
such restrictions as are set forth in the Award Agreement, including but not limited to, continued performance as an Employee or Outside Director for a restriction period specified by the Committee, or the attainment of specified performance goals
and objectives (as described in Section 10(b)), as may be established by the Committee with respect to such Award. The Committee may in its sole discretion require different periods of service or different performance goals and objectives with
respect to (i) different Participants, (ii) different Restricted Stock 

  

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Awards, or (iii) separate, designated portions of the Shares constituting a Restricted Stock Award. Any grant of Restricted Stock shall contain terms
such that the Award is either exempt from Code Section 409A or complies with such Section. 
 (d) Lapse of Restrictions. The
restrictions on each Share of Restricted Stock shall lapse in accordance with the terms set forth in the applicable Award Agreement. 
 (e)
Dividends. Unless otherwise provided in an employment agreement or Award Agreement, if ordinary cash dividends are paid on Restricted Stock, Participants who hold Restricted Stock on the dividend record date will receive, on the dividend
payment date, the ordinary cash dividend. If extraordinary cash dividends or non-cash dividends are paid on Restricted Stock, and a Participant holds Restricted Stock on the dividend record date, the extraordinary cash dividend or the non-cash
dividend will be subject to the same restrictions as the Restricted Stock to which the extraordinary cash dividend or the non-cash dividend was attributable. 
 (f) Other Terms. As the Committee shall deem desirable, each Restricted Stock Award may be subject to additional terms and conditions not inconsistent with the provisions of the Plan. 
 Section 7. Restricted Stock Unit Awards. 
 (a)
Eligibility and Grant of Restricted Stock Units (“RSUs”). Subject to and consistent with the provisions of the Plan and Code Sections 409A(a)(2), (3) and (4), RSU Awards may be granted hereunder to Participants in such
amount and upon such terms as the Committee shall determine, either alone or in addition to other Awards granted under the Plan. Each grant of RSUs to a Participant under the Plan shall be evidenced by an Award Agreement that shall specify the
restrictions, the number of Shares subject to the RSUs granted, and such other provisions as the Committee shall determine in accordance with the Plan and Code Section 409A. 
 (b) Voting Rights. A Participant shall have no voting rights in RSUs. 
 (c) Crediting Restricted Stock Units. The Company shall establish an RSU Account on its books for each Participant who receives an RSU Award. RSUs
shall be credited to the Participant’s RSU Account as of the Grant Date of such RSU. RSU Accounts shall be maintained for recordkeeping purposes only and the Company shall not be obligated to segregate or set aside assets representing
securities or other amounts credited to RSU Accounts. The obligation to make distributions of securities or other amounts credited to RSU Accounts shall be an unfunded, unsecured obligation of the Company. 
 (d) Restrictions. The Committee may impose such restrictions on RSUs, including time-based restrictions, restrictions based on the achievement of
specific performance goals (as described in Section 10(b)), time-based restrictions following the achievement of specific performance goals (as described in Section 10(b)), restrictions based on the occurrence of a specified event, and/or
restrictions under applicable securities laws. 
  

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 (e) Lapse of Restrictions. The restrictions on each RSU shall lapse in accordance with the terms
set forth in the applicable Award Agreement. 
 (f) Settlement of RSU Accounts. 
  

	 	(i)	General. The Company shall settle an RSU Account by delivering to the holder thereof (which may be the Participant or his or her Beneficiary, as applicable) either
(i) an amount of cash equal to the Fair Market Value of a Share as of the Settlement Date multiplied by the number of Shares underlying the RSUs then credited to the Participant’s RSU Account (or a specified portion in the event of any
partial settlement), or (ii) a number of Shares equal to the whole number of Shares underlying the RSUs then credited to the Participant’s RSU Account (or a specified portion in the event of any partial settlement). Any fractional Shares
underlying the RSUs being settled remaining in the RSU Account on the Settlement Date shall be distributed in cash in an amount equal to the Fair Market Value of a Share as of the Settlement Date multiplied by the remaining fractional RSUs.

  

	 	(ii)	Settlement Date. The “Settlement Date” for all RSUs credited to a Participant’s RSU Account shall be the date on which the restrictions applicable to an Award
of RSUs have lapsed. Notwithstanding the prior sentence, for any Participant whose RSUs become subject to Code Section 409A, the Settlement Date shall be the earliest of (1) the Participant’s Separation from Service (except that in
the case of a “specified employee” as defined in Code Section 409A(2)(B)(i), the Settlement Date shall be a date which is at least six months after the date of the Participant’s Separation from Service), (2) Change in
Control, or (3) Disability. Notwithstanding the definition set forth in Section 11, for purposes of this Section 7(f)(ii), Change in Control shall have the meaning set forth in Treas. Reg. §1.409A-3(g)(5).

 (g) Other Terms. As the Committee shall deem desirable, each RSU Award may be subject to additional terms and
conditions not inconsistent with the provisions of the Plan. 
 Section 8. Stock Appreciation Right Awards. 
 (a) Eligibility and Grant of Stock Appreciation Rights (“SARs”). Subject to and consistent with the provisions of the Plan, SAR Awards
may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. SARs may, but need not, be granted in connection with a specific Option. Any SAR related to an Option must be granted at the same time such
Option is granted. Each SAR granted to a Participant under the Plan shall be evidenced by an Award Agreement in such form as the Committee may approve, which shall contain such terms and conditions not inconsistent with the provisions of the Plan as
shall be determined from time to time by the Committee. 
  

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 (b) Term of SAR. Unless otherwise provided in the Award Agreement, (a) no SAR grant shall
have a term of more than ten (10) years from the Grant Date of the SAR, and (b) Tandem SARs (as defined in Section 8(f) below) shall vest at the same time and in the same proportions as the underlying Options. 
 (c) Strike Price. The Strike Price of a SAR shall be determined by the Committee in its sole discretion; provided that the Strike Price
shall not be less than 100% of the Fair Market Value of a Share on the Grant Date of the SAR. 
 (d) Exercise and Payment. Except as
may otherwise be provided by the Committee in an Award Agreement, SARs shall be exercised by the delivery of a written notice to the Company, setting forth the number of Shares with respect to which the SAR is to be exercised. The Committee may
provide that payment with respect to an exercised SAR may occur on a fixed date which may not be the same as the Exercise Date, but in no event shall the payment date occur after the later of the end of the calendar year or 2 1/2 months following
the date on which the SAR is exercised, and may provide for additional payment in recognition of the time value of money and any delay between the Exercise Date and the payment date. Any payment by the Company in respect of an SAR may be made in
cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall determine. 
 (e) Grant
Limitations. The Committee may on the Grant Date impose any other limitations upon the exercise of SARs which it deems necessary or desirable in order for the Award to qualify for an exemption from Section 16(b) of the Exchange Act. Any
grant of SARs shall contain terms such that such SARs are exempt from Code Section 409A. 
 (f) Exercise of Tandem SARs. To the
extent that a SAR is granted in connection with, or related to, an Option (a “Tandem SAR”), the terms of such Tandem SAR shall provide that (i) the related Option shall be forfeited upon the exercise of
such Tandem SAR or alternatively, that the Tandem SAR shall be cancelled upon the exercise of the related Option, (ii) the Tandem SAR may be exercised only with respect to the Shares for which its related Option is
then exercisable, (iii) each Tandem SAR shall expire no later than the expiration of the related Option, and (iv) the value of the payout with respect to the Tandem SAR shall be no more than one hundred percent
(100%) of the difference between the exercise price per Share of the related Option and the Fair Market Value per Share of the Shares subject to the related Option at the time the Tandem SAR is exercised.

 (g) Other Terms. As the Committee shall deem desirable, each SAR Award may be subject to additional terms and conditions not
inconsistent with the provisions of the Plan. 
 Section 9. Performance Shares, Performance Units and Other Stock Units. 
 (a) Eligibility and Grant of Awards. Performance Shares, Performance Units and Other Stock Units may be issued hereunder to Participants, for such
consideration not less than the minimum consideration required by applicable law, as the Committee may determine, either alone or in addition to other Awards granted under the Plan. Each grant of such an Award to a 

  

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Participant under the Plan shall be evidenced by an Award Agreement in such form as the Committee may from time to time approve. 
 (b) Other Terms. As the Committee shall deem desirable, each Performance Share, Performance Unit or Other Stock Unit may be subject to additional
terms and conditions not inconsistent with the provisions of the Plan. 
 Section 10. Performance Awards; Section 162(m) Provisions.

 (a) Terms of Performance Awards. Except as provided in Section 11, Performance Awards will be issued or granted, or become
vested or payable, only after the end of the relevant Performance Period. The performance goals to be achieved for each Performance Period and the amount of the Award to be distributed upon satisfaction of those performance goals shall be
conclusively determined by the Committee. When the Committee determines whether a performance goal has been satisfied for any Performance Period, the Committee, where the Committee deems appropriate, may make such determination using calculations
which alternatively include and exclude one, or more than one, “extraordinary items” as determined under U.S. generally accepted accounting principles, and the Committee may determine whether a performance goal has been satisfied for any
Performance Period taking into account the alternative which the Committee deems appropriate under the circumstances. The Committee also may take into account any other unusual or non-recurring items, including the charges or costs associated with
restructurings of the Company, discontinued operations, and the cumulative effects of accounting changes and, further, may take into account any unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting
principles or such other factors as the Committee may determine reasonable and appropriate under the circumstances (including any factors that could result in the Company’s paying non-deductible compensation to an Employee or Outside Director).

 (b) Performance Goals. If an Award is subject to this Section 10, then the lapsing of restrictions thereon, or the vesting
thereof, and the distribution of cash, Shares or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals established by the Committee, which shall be based on the attainment of
one or any combination of the following metrics, and which may be established on an absolute or relative basis for the Company as a whole or any of its subsidiaries, operating divisions or other operating units: 
  

	 	(i)	Earnings (either in the aggregate or on a per-Share basis); 

  

	 	(ii)	Growth or rate of growth in earnings (either in the aggregate or on a per-Share basis); 

  

	 	(iii)	Net income or loss (either in the aggregate or on a per-Share basis); 

  

	 	(iv)	Cash flow provided by operations, either in the aggregate or on a per-Share basis; 

  

 12 

	 	(v)	Growth or rate of growth in cash flow (either in the aggregate or on a per-Share basis); 

  

	 	(vi)	Free cash flow (either in the aggregate on a per-Share basis); 

  

	 	(vii)	Reductions in expense levels, determined either on a Company-wide basis or in respect of any one or more business units; 

  

	 	(viii)	Operating and maintenance cost management and employee productivity; 

  

	 	(ix)	Stockholder returns (including return on assets, investments, equity, or gross sales); 

  

	 	(x)	Return measures (including return on assets, equity, or sales); 

  

	 	(xi)	Growth or rate of growth in return measures (including return on assets, equity, or sales); 

  

	 	(xii)	Share price (including attainment of a specified per-Share price during the Performance Period; growth measures and total stockholder return or attainment by the Shares of a
specified price for a specified period of time); 

  

	 	(xiii)	Strategic business criteria, consisting of one or more objectives based on meeting specified revenue, market share, market penetration, geographic business expansion goals,
objectively identified project milestones, production volume levels, cost targets, and goals relating to acquisitions or divestitures; and/or 

  

	 	(xiv)	Achievement of business or operational goals such as market share and/or business development; 

 provided that applicable performance goals may be applied on a pre- or post-tax basis; and provided further that the Committee may, when the applicable performance goals are established, provide that the formula for
such goals may include or exclude items to measure specific objectives, such as losses from discontinued operations, extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions or divestitures, foreign exchange impacts
and any unusual, nonrecurring gain or loss. In addition to the foregoing performance goals, the performance goals shall also include any performance goals which are set forth in a Company bonus or incentive plan, if any, which has been approved by
the Company’s stockholders, which are incorporated herein by reference. Such performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Code Section 162(m).

 (c) Adjustments. Notwithstanding any provision of the Plan other than Section 4(c) or Section 11, with respect to any
Award that is subject to this Section 10, the Committee may not adjust upwards the amount payable pursuant to such Award, nor may it waive the 

  

 13 

 
achievement of the applicable performance goals except in the case of the death or Disability of the Participant. 
 (d) Other Restrictions. The Committee shall have the power to impose such other restrictions on Awards subject to this Section 10 as it may
deem necessary or appropriate to insure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Code Section 162(m)(4)(B). 
 (e) Section 162(m) Limitations. Notwithstanding any other provision of this Plan, if the Committee determines at the time any Award is
granted to a Participant that such Participant is, or is likely to be at the time he or she recognizes income for federal income tax purposes in connection with such Award, a Covered Employee, then the Committee may provide that this Section 10
is applicable to such Award. 
 Section 11. Change in Control. 
 (a) In order to maintain the Participants’ rights in the event of any Change in Control of the Company, as hereinafter defined, the Committee may, in its sole discretion, as to any Award, either at the time an
Award is made hereunder or any time thereafter, take any one or more of the following actions: (i) provide for the acceleration of any time periods relating to the exercise or realization of any such Award so that such Award may be exercised or
realized in full on or before a date fixed by the Committee; (ii) provide for the purchase of any such Award, other than any RSUs subject to Code Section 409A, the settlement of which is governed by Section 7(f)(ii), upon the
Participant’s request, for an amount of cash equal to the excess of the Fair Market Value of the property that could have been received upon the exercise of such Award or realization of the Participant’s rights had such Award been
currently exercisable or payable over the amount which would have been paid, if any, by the Participant for such property; (iii) make such adjustment to any such Award then outstanding as the Committee deems appropriate to reflect such Change
in Control; or (iv) cause any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or surviving corporation after such Change in Control. The Committee may, in its discretion, include such further
provisions and limitations in any agreement documenting such Awards as it deems equitable and in the best interests of the Company. 
 (b)
Unless the Committee determines otherwise with respect to any Award, a “Change in Control” means the occurrence of any of the following events: 
  

	 	(i)	the acquisition, directly or indirectly, by any “person” or “group” (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Exchange Act
and the rules thereunder, including Rule 13d-5(b)) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (“voting
securities”) of the Company that represent 30% or more of the combined voting power of the Company’s then outstanding voting securities, other than 

  

 14 

	 	(A)	an acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled
by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or 

  

	 	(B)	an acquisition of voting securities by the Company or a corporation owned, directly or indirectly, by the stockholders of at least 50% of the voting power of the Company’s then
outstanding securities in substantially the same proportions as their ownership of the stock of the Company, or 

  

	 	(C)	an acquisition of voting securities pursuant to a transaction described in clause (iii) below that would not be a Change in Control under clause (iii);

  

	 	(ii)	a change in the composition of the Board that causes less than a majority of the directors of the Company to be directors that meet one or more of the following descriptions:

  

	 	(A)	a director who has been a director of the Company for a continuous period of at least 24 months (or, if less, since the date the Shares were listed on the New York Stock Exchange),
or 

  

	 	(B)	a director whose election or nomination as director was approved by a vote of at least two-thirds of the then directors described in clauses (ii)(A), (B), or (C) by prior
nomination or election, but excluding, for the purpose of this subclause (B), any director whose initial assumption of office occurred as a result of an actual or threatened (y) election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or group other than the Board or (z) tender offer, merger, sale of substantially all of the Company’s assets, consolidation,
reorganization, or business combination that would be a Change in Control under clause (iii) on consummation thereof, or 

  

	 	(C)	who were serving on the Board as a result of the consummation of a transaction described in clause (iii) that would not be a Change in Control under clause (iii);

  

	 	(iii)	 the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a
merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of 

  

 15 

	 	 
the Company’s assets or (z) the acquisition of assets or stock of another entity, in each case, other than in a transaction

  

	 	(A)	that results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted
into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to
the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least 50% of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the
transaction, and 

  

	 	(B)	after which more than 50% of the members of the board of directors of the Successor Entity were members of the Board at the time of the Board’s approval of the agreement
providing for the transaction or other action of the Board approving the transaction (or whose election or nomination was approved by a vote of at least two-thirds of the members who were members of the Board at that time), and

  

	 	(C)	after which no person or group beneficially owns voting securities representing 30% or more of the combined voting power of the Successor Entity; provided, however, no person or
group shall be treated for purposes of this clause (C) as beneficially owning 30% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company before the consummation of the transaction; or

  

	 	(iv)	a liquidation or dissolution of the Company other than in connection with a transaction described in (iii) above that would not be a Change in Control thereunder.

 For purposes of clarification, (x) a change in the voting power of the Company voting securities based on the relative
trading values of the Company’s then outstanding securities as determined pursuant to the Company’s Articles of Incorporation or (y) an acquisition of the Company securities by the Company that, in either case, by itself (or in
combination only with the other event listed in this sentence) causes the Company’s voting securities beneficially owned by a person or group to represent 30% or more of the combined voting power of the Company’s then outstanding voting
securities is not to be treated as an “acquisition” by any person or group for purposes of clause (i) above. For purposes of clause (i) above, the Company makes the calculation of voting power as if the date of the acquisition
were a record date for a vote of the Company’s shareholders, and for purposes of clause (iii) above, the Company makes the 

  

 16 

 
calculation of voting power as if the date of the consummation of the transaction were a record date for a vote of the Company’s shareholders.

 (c) If an Award provides for acceleration under Section 11(a), the provisions of this Section shall apply to the Award. If an
acceleration of vesting of an Award, together with all other payments or benefits contingent on the Change in Control within the meaning of Code Section 280G, results in any portion of such payments or benefits not being deductible by the
Company as a result of the application of Code Section 280G, the acceleration shall be reduced until the entire amount of the other payments and benefits is deductible. The reduction shall be effected by the reduction in acceleration of grants
of Shares of Restricted Stock or other Awards, or portions thereof, in the order elected by the Participant until no portion of such other payments or benefits is rendered non-deductible by application of Code Section 280G. 
 Section 12. Amendments and Termination. The Board may amend, alter or discontinue the Plan in whole or in part without the approval of the
Company’s stockholders, except that (i) any amendment or alteration shall be subject to the approval of the Company’s stockholders if such stockholder approval is required by any federal or state law or regulation or the rules of any
stock exchange on which the Shares may then be listed and (ii) no amendment, alteration, or discontinuation shall be made that would impair the rights of a Participant under any outstanding Award, without the Participant’s consent, or that
without the approval of the stockholders would, except as is provided in Section 4(c) of the Plan, increase the total number of Shares reserved for the purposes of the Plan. No amendment, alteration or discontinuation shall cause any payments
to be made any earlier than are otherwise provided hereunder, unless permitted by Code Section 409A. 
 The Committee may amend the
terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall impair the rights of any Participant without the Participant’s consent. The Committee may also substitute new Awards for Awards previously
granted to Participants, but it may not (i) substitute new Options or SARs having a lower exercise price for previously granted Options or SARs having a higher exercise price or (ii) substitute another Award for an Option or SAR which has
an exercise price above the then current Fair Market Value. 
 Section 13. General Provisions. 
 (a) Non-Transferability. No Award shall be assignable or transferable by a Participant otherwise than by will or by the laws of descent and
distribution, provided that, if so determined by the Committee, each Participant may, in the manner established by the Committee, designate a beneficiary to exercise the rights of the Participant with respect to any Award upon the death of the
Participant and to receive the Shares or other property issued upon such exercise. 
 (b) Effect of Award. No Participant shall have
any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants under the Plan. 
  

 17 

 (c) Effect of Award Agreement. The prospective recipient of any Award under the Plan shall not,
with respect to such Award, be deemed to have become a Participant, or to have any rights with respect to such Award, until and unless such recipient shall have executed an Award Agreement or other instrument evidencing the Award and delivered a
fully executed copy thereof to the Committee or Program Administrator, and otherwise complied with the then applicable terms and conditions. 
 (d) Adjustment of Awards. The Committee shall be authorized to make adjustments in Performance Award criteria or in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the Company or
its financial statements or changes in applicable laws, regulations or accounting principles. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall
deem desirable to carry it into effect. In the event the Company shall assume outstanding employee benefit awards or the right or obligation to make future awards in connection with the acquisition of another corporation or business entity, the
Committee may, in its discretion, make such adjustments in the terms of Awards under the Plan as it shall deem appropriate. 
 (e)
Non-Competition. The Committee shall have full power and authority to determine whether, to what extent and under what circumstances any Award shall be canceled or suspended. In particular, but without limitation, all outstanding Awards to
any Participant shall be canceled if the Participant, without the consent of the Committee, while employed by or providing services as an Outside Director to the Company or an Affiliate or after termination of such employment or service as an
Outside Director, 
  

	 	(i)	becomes associated with, employed by, renders services to, or owns any interest in (other than any nonsubstantial interest, as determined by the Committee), any business that is in
competition with the Company or with any business in which the Company has a substantial interest as determined by the Committee, or the Company’s Chief Executive Officer to whom the authority to make such determination has been delegated by
the Committee under Section 3(a), 

  

	 	(ii)	without the Company’s prior written consent, directly or indirectly, knowingly solicits or encourages to leave the employment of the Company, any salaried employee or
independent contractor of the Company with whom Participant had contact at any time during the twelve (12) month period immediately preceding such solicitation, or 

  

	 	(iii)	on Participant’s own behalf or on behalf of any Person, firm, partnership, association, corporation or business organization, entity or enterprise, calls on or solicits for the
purpose of competing with the Company any customer the Company with whom Participant had contact, at any time during the twelve (12) month period immediately preceding such solicitation. 

  

 18 

 (f) Payment of Consideration. Except as otherwise required in any applicable Award Agreement or by
the terms of the Plan, recipients of Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of services. 
 (g) Withholding. The Company shall be authorized to withhold from any Award granted or payment due under the Plan the amount of withholding taxes due with respect to an Award or payment hereunder and to take
such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. The Company shall also be authorized to withhold the delivery of Shares to a Participant, or accept previously owned Shares
from a Participant, in payment for the withholding of taxes. 
 (h) Other Compensation Arrangements. Nothing contained in this Plan
shall prevent the Board of Directors from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific
cases. 
 (i) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan
shall be determined in accordance with the laws of the State of Delaware and applicable Federal law. 
 (j) Severability. If any
provision of this Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended
to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan shall remain in full force
and effect. 
 (k) Code Section 409A Compliance. In the event that any provision of this Plan shall be determined to contravene
Code Section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with respect to Section 409A or applicable judicial decisions construing Section 409A, any such provision shall be void and have no
effect. Moreover, this Plan shall be interpreted at all times in such a manner that the terms and provisions of the Plan comply with Code Section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with
respect to Section 409A and applicable judicial decisions construing Section 409A. 
 (l) Dividend Equivalents. Whenever
cash dividends are paid or non-cash dividends or distributions are made with respect to Shares, the Committee may elect to credit dividend equivalents to any Award. Such dividend equivalents may be paid immediately or subject to the same
restrictions imposed on the underlying Award. 
 Section 14. Effective Date of Plan. The Plan shall be effective as of the date approved by
Sprint Nextel Corporation acting as the Company’s sole stockholder. No Award shall be granted pursuant to the Plan after the tenth anniversary of such effective date, but any Award granted on or before such date may extend beyond that date.

  

 19 

 ADDENDUM 
 CONVERTED AWARDS FOR EMBARQ EMPLOYEES 
 Section 1. Purposes of Addendum. 
  

	 	The	purposes of this Addendum to the Plan are to: 

  

	 	(i)	facilitate the conversion, pursuant to the EMA, of Sprint Options held by Converted Employees as of the Distribution Date or applicable Transfer Dates into Options to purchase
Shares under this Plan (“Converted Options”); 

  

	 	(ii)	govern the terms and conditions of certain Restricted Stock awards held by Converted Employees or Embarq Employees on serial severance at the Distribution Time who received such
Shares of Restricted Stock in connection with the Distribution and pursuant to the terms of the EMA; and 

  

	 	(iii)	enable Embarq to fulfill its obligation, pursuant to the terms of the EMA, to issue RSUs to Converted Employees or Embarq Employees on serial severance at the Distribution Time who
held Sprint RSUs issued under the Sprint Stock Plans as of the Distribution Time. 

 Section 2. Additional Definitions. 

(a) Incorporation of Terms from the EMA. The following terms shall have the meanings assigned to them in the EMA: 
  

	 	(i)	“Delayed Transfer Employee” 

  

	 	(ii)	“Embarq Employee” 

  

	 	(iii)	“Sprint Employee” 

  

	 	(iv)	“Sprint Stock Plans” 

  

	 	(v)	“Transfer Date” 

 (b) Incorporation of
Terms from the SDA. The following terms shall have the meanings assigned to them in the SDA: 
  

	 	(i)	“Distribution” 

  

	 	(ii)	“Distribution Date” 

  

	 	(iii)	“Distribution Time” 

  

 20 

 (c) Additional Definitions. In addition to the definitions set forth in Section 2 of the Plan
and in Section 2(a) and (b) of this Addendum, as used in this Addendum, the following terms shall have the meanings set forth below: 
  

	 	(i)	“Adjusted Restricted Stock” means Restricted Stock received pursuant to Section 5 of this Addendum. 

  

	 	(ii)	“Adjusted RSUs” means RSUs granted pursuant to Section 7 of this Addendum. 

  

	 	(iii)	“Converted Employees” means, collectively, Embarq Employees (other than Embarq Employees on serial severance at the Distribution Time) and, for purposes of Sections
3 and 4 of this Addendum, Delayed Transfer Employees following their Transfer Date, as such terms are defined in the EMA. 

  

	 	(iv)	“EMA” means the Employee Matters Agreement dated as of            
     , 2006, by and between Sprint Nextel and the Company, which governs the treatment of employees and employee benefit plans in the Distribution. 

  

	 	(v)	“Permitted Disposition” means, with respect to any Participant who is granted an Option Award, (i) a disposition of Shares by the Participant in which the
Participant remains the sole beneficial owner or (ii) a disposition upon the death of the Participant. 

  

	 	(vi)	“Reload Option” means an Option granted upon the exercise of an Option having reload rights under the terms and conditions set forth in Section 4 of this
Addendum. 

  

	 	(vii)	“SDA” means the Separation and Distribution Agreement between Sprint Nextel and the Company dated as of
            , 2006. 

  

	 	(viii)	“Sprint Nextel” means Sprint Nextel Corporation, a Kansas corporation. 

  

	 	(ix)	“Sprint 1997 LTIP” means the Sprint Corporation 1997 Long-Term Stock Incentive Program. 

  

	 	(x)	“Sprint Option” means each option to purchase shares of Sprint Nextel common stock outstanding under the Sprint Stock Plans immediately before the Distribution
Time. 

  

	 	(xi)	“Sprint Restricted Stock” means a restricted stock award under any of the Sprint Stock Plans. 

  

	 	(xii)	“Sprint Restricted Stock Unit” or “Sprint RSU” means a restricted stock unit award under any of the Sprint Stock Plans. 

 

 21 

	 	(xiii)	“Underlying Restricted Stock” means Sprint Restricted Stock pursuant to which such holder received an Adjusted Restricted Stock Award pursuant to the EMA and this
Addendum. 

  

	 	(xiv)	“Underlying RSU” means a Sprint RSU pursuant to which such holder received an Adjusted RSU Award pursuant to the EMA and this Addendum. 

 Section 3. Conversion of Options. 
 (a) Pursuant
to, and in accordance with, the Sprint Stock Plans and the EMA, each Sprint Option held by a Converted Employee on the Distribution Date or on his or her Transfer Date, as applicable, shall be converted into an Option granted under this Plan to
purchase Shares (a “Converted Option”). Pursuant to the EMA, such Converted Option shall be subject to terms and conditions that are substantially similar (to the extent practicable) to the terms and conditions applicable to the underlying
Sprint Option that is converted and in all other respects shall be subject to all of the terms and conditions of the Plan, except as provided in this Addendum. 
 (b) Notwithstanding Section 5(c) of the Plan, the Converted Option described in Section 3(a) of this Addendum may have an exercise price as determined in accordance with the EMA that is below, at, or above
Fair Market Value on the date such Converted Option is issued pursuant to this Addendum. The term of the Converted Option shall not exceed the unexpired term of the underlying Sprint Option that is to be converted. 
 (c) To the extent the Sprint Option pursuant to which a Converted Option is granted under this Plan included reload rights, such rights are retained
subject to the terms and conditions of Section 4 of this Addendum. 
 Section 4. Reload Options. 
 This Section 4 shall apply solely to reload rights retained in connection with Converted Options, as permitted by Section 3(c) of this Addendum.
No other reload rights shall be granted with respect to any other Option Award granted under, or subject to the terms and conditions of, this Plan. 
 (a) Terms of Reload Options. Any underlying Option that includes reload rights shall, unless other terms were specified at the time the reload rights were granted with respect to the underlying Sprint Option, entitle the Participant
to receive a new Option (a “Reload Option”) to purchase Shares of the same option class as the underlying Converted Option upon the Participant’s exercise of the underlying Converted Option by delivery or attestation of Shares in
payment of the exercise price on the terms set forth in this Section 4. 
  

	 	(i)	Conditions to the Grant of Reload Options. No Reload Option shall be granted on the exercise of the underlying Converted Option unless: 

  

 22 

	 	(A)	a sufficient number of Shares remain authorized and not issued or subject to purchase under outstanding Options granted under the Plan; 

  

	 	(B)	the Participant is an Outside Director or an Employee on the Exercise Date of the underlying Converted Option; 

  

	 	(C)	the exercise of the underlying Converted Option is for the purchase of a number of Shares at least equal to the lesser of (1) 25% of the total number of Shares subject to
purchase under the underlying Converted Option or (2) 100% of the shares with respect to which the underlying Converted Option is then exercisable; 

  

	 	(D)	the Grant Date of the Reload Option would be at least one year before the end of the Option period of the underlying Converted Option; and 

  

	 	(E)	the Fair Market Value (as defined for this purpose in Section 4(b) of this Addendum) of one Share of the underlying Converted Option’s option class on the Exercise Date is
greater than or equal to the exercise price of the underlying Converted Option. 

  

	 	(ii)	Number of Shares Subject to Purchase; Grant Date. Each Reload Option shall entitle the Participant to purchase a number of Shares equal to the sum of

  

	 	(A)	the number of Shares of the option class used to pay the exercise price of the underlying Converted Option pursuant to Section 5(e) of the Plan on the Exercise Date and

  

	 	(B)	the number of Shares of the option class delivered or withheld in payment of the withholding amount pursuant to Section 13(g) of the Plan. 

  

	 	(iii)	Exercise Price. Each Reload Option shall have an exercise price equal to the Fair Market Value (as defined for this purpose in Section 4(b) of this Addendum) of one
Share of the option class of the common stock on the Grant Date of the Reload Option. 

  

	 	(iv)	Option Period. Each Reload Option shall have the same Option period as the underlying Converted Option. 

  

	 	(v)	No Reload Rights. No Reload Option shall have reload rights. 

  

	 	(vi)	Rate of Exercisability. Each Reload Option shall become exercisable in full on the first anniversary of the Grant Date of the Reload Option. 

  

 23 

	 	(vii)	Forfeiture on Disposition of Shares Acquired in Exercise of Underlying Converted Option. Each Reload Option shall be forfeited if the Participant disposes of any of the
Shares issued on exercise of the underlying Converted Option, except in a Permitted Disposition, before the date six months after the Exercise Date to any Person other than the Company in the payment of payroll taxes on exercise of the underlying
Option. 

  

	 	(viii)	Other Terms and Conditions. Except to the extent in conflict with the terms set forth in this Section 4, the terms for Options granted under the Plan as set forth in
Section 5 of the Plan shall apply to each Reload Option. 

 (b) Fair Market Value. “Fair Market Value”
for purposes of this Section 4 shall mean the average of the high and low prices of the common stock for composite transactions, as published by The Wall Street Journal, for the date in question or, if no trade of the common stock shall
have been made on that date, the next preceding date on which there was a trade of common stock 
 Section 5. Receipt of Adjusted Restricted
Stock. 
 Pursuant to the EMA, each Converted Employee or Embarq Employee on serial severance at the Distribution Time holding Underlying
Restricted Stock shall receive, pursuant to the EMA and this Addendum, Adjusted Restricted Stock and, except as provided in the next sentence, shall be treated in the same manner at the Distribution Date as any other holder of outstanding shares of
Sprint common stock. Except as otherwise expressly provided in any written agreement entered into prior to January 1, 2006 between Sprint Nextel and any person who holds Sprint Restricted Stock, the Adjusted Restricted Stock shall be subject to
the same terms, conditions and restrictions as the related Underlying Restricted Stock. 
 Section 6. Terms of Adjusted Restricted Stock.

 Unless specified otherwise with respect to the Underlying Restricted Stock, the terms set forth in this Section 6 shall apply to all
Adjusted Restricted Stock granted to Converted Employees or Embarq Employees on serial severance in connection with the Distribution and subject to the terms and conditions of this Plan. Any Award Agreement relating to a grant of Adjusted Restricted
Stock under this Addendum that incorporates the terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section 6 to the extent that these terms are not in conflict with those terms explicitly set forth
in the Award Agreement. 
 (a) Grant Date. The Grant Date of each share of Adjusted Restricted Stock shall be deemed to be the date
the Underlying Restricted Stock was granted pursuant to the Sprint 1997 LTIP as set forth in the underlying Restricted Stock award agreement. 
 (b) Restrictions. Each share of Adjusted Restricted Stock shall have the same terms and conditions relating to nontransferability and risk of forfeiture as the Underlying Restricted Stock. 
  

 24 

 (c) Lapse of Restrictions. The restrictions on the Adjusted Restricted Stock shall lapse in
accordance with the same time schedule and in proportion to the Underlying Restricted Stock pursuant to the Underlying Restricted Stock award agreement. Such lapse of restrictions on Adjusted Restricted Stock shall accelerate only upon, and in
accordance with, the acceleration of the lapse of restrictions upon the Underlying Restricted Stock as provided in the Underlying Restricted Stock award agreement. 
 Section 7. Grants of Adjusted RSUs. 
 Pursuant to the EMA, each Converted Employee or Embarq Employee on serial
severance at the Distribution Time holding an Underlying RSU shall receive, pursuant to this Addendum, an Adjusted RSU Award which reflects the number of Shares that such individual would have received at the Distribution Time if such
individual’s Sprint RSU had been Sprint Restricted Stock, rounded down to the nearest whole share. Each such Adjusted RSU shall (to the extent practicable) be made subject to the same terms, conditions and restrictions after the Distribution
Time as the terms, conditions and restrictions applicable to the corresponding Underlying RSU immediately prior to the Distribution Time. 
 Section 8.
Terms of Adjusted RSU Awards. 
 Unless specified otherwise in the Award Agreement, the terms set forth in this Section 8 shall
apply to all Adjusted RSU Awards granted to Converted Employees or Embarq Employees on serial severance at the Distribution Time under this Plan. Any Award Agreement relating to a grant of Adjusted RSUs under this Addendum that incorporates the
terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section 8 to the extent that these terms are not in conflict with those terms explicitly set forth in the Award Agreement. 
 (a) Grant Date. The Grant Date of each Adjusted RSU shall be deemed to be the date the Underlying RSU was granted pursuant to the Sprint 1997 LTIP
as set forth in the underlying RSU award agreement. 
 (b) Vesting. The vesting date for Adjusted RSUs shall be the vesting date for
the Underlying RSUs, pursuant to the Underlying RSU award agreement. The vesting date for Adjusted RSU Awards shall accelerate only upon, and in accordance with, the acceleration of the vesting date of the Underlying RSUs, as provided in the
Underlying RSU award agreement. 
 (c) Delivery of Shares. The Company will deliver the Shares underlying the Adjusted RSU Award on a
delivery date elected by the Participant with respect to the Underlying RSU Award, which may only be on or after the vesting date. The Participant may extend the date on which the delivery of shares underlying the Adjusted RSU Award would otherwise
occur (by any period or any multiple of that period determined by the Corporate Secretary) by an election made at least 13 months before the then current delivery date, provided that such extension extends the delivery date of such shares by a
minimum of five (5) years from the date the shares would otherwise have been delivered. Adjusted RSU Awards with an extended delivery date will not be cancelled if they vest before the Participant becomes associated with, employed by, renders

  

 25 

 
services to, or owns any substantial interest in any business that is in competition with the Company or with any business in which the Company has a
substantial interest. 
 Section 9. Recognition of Retention Award. 
 Notwithstanding the terms specified in an Award Agreement or in this Plan, the terms and conditions of the Sprint Retention Program with respect to the acceleration of vesting of equity awards are incorporated herein
by reference. 
  

 26 

 APPENDIX A 
 RESTRICTED STOCK SPIN-OFF ADJUSTMENT PROGRAM 
 Section 1. Purpose of Program. 
 The purpose of this Restricted Stock Spin-Off Adjustment Program (the “Restricted Stock Adjustment Program”) is to establish the terms and
conditions of Restricted Stock Awards held by Sprint Employees who received such Restricted Stock in connection with the Distribution and pursuant to the terms of the EMA. 
 Section 2. Definitions. 
 (a) Incorporation of Terms from EMA. The following terms shall
have the meanings assigned to them in the EMA: 
  

	 	(i)	“Sprint Employee” 

  

	 	(ii)	“Sprint Stock Plans” 

  

	 	(iii)	“Transfer Date” 

 (b) Incorporation of
Terms from the SDA. The following terms shall have the meanings assigned to them in the SDA: 
  

	 	(i)	“Distribution” 

  

	 	(ii)	“Distribution Date” 

  

	 	(iii)	“Distribution Time” 

 (c) Additional
Definitions. In addition to the definitions set forth in Section 2 of the Plan and in Section 2(a) and (b) of this Appendix A, as used in this Restricted Stock Adjustment Program, the following terms shall have the meanings set
forth below: 
  

	 	(i)	“Adjusted Non-Employee Restricted Stock” means Restricted Stock delivered to Sprint Employees in connection with the Distribution, as described in Section 3 of
this Appendix A. 

  

	 	(ii)	“EMA” means the Employee Matters Agreement dated as of             
    , 2006, by and between Sprint Nextel and the Company, which governs the treatment of employees and employee benefit plans in the Distribution. 

  

	 	(iii)	“SDA” means the Separation and Distribution Agreement between Sprint Nextel and the Company dated as of
            , 2006. 

  

	 	(iv)	“Sprint Nextel” means Sprint Nextel Corporation, a Kansas corporation. 

  

 27 

	 	(v)	“Sprint 1997 LTIP” means the Sprint Corporation 1997 Long-Term Stock Incentive Program. 

  

	 	(vi)	“Sprint Restricted Stock” means a restricted stock award under any of the Sprint Stock Plans. 

  

	 	(vii)	“Underlying Non-Employee Restricted Stock” means Sprint Restricted Stock held by a Sprint Employee and who received an Adjusted Non-Employee Restricted Stock Award
pursuant to the EMA. 

 Section 3. Receipt of Adjusted Restricted Stock. 
 Pursuant to the EMA, each Sprint Employee holding Underlying Non-Employee Restricted Stock shall receive, pursuant to this Restricted Stock Adjustment
Program, Adjusted Non-Employee Restricted Stock and, except as provided in the next sentence, shall be treated in the same manner at the Distribution Date as any other holder of outstanding shares of Sprint common stock. Except as otherwise
expressly provided in any written agreement entered into prior to January 1, 2006 between Sprint Nextel and any person who holds Sprint Restricted Stock, the Adjusted Non-Employee Restricted Stock shall be subject to the same terms, conditions
and restrictions as the related Underlying Non-Employee Restricted Stock. 
 Section 4. Terms of Adjusted Non-Employee Restricted Stock.

 Unless specified otherwise with respect to the Underlying Non-Employee Restricted Stock, the terms set forth in this Section 4 shall
apply to all Adjusted Non-Employee Restricted Stock granted in connection with the Distribution and subject to the terms and conditions of this Plan. Any Award Agreement relating to a grant of Adjusted Non-Employee Restricted Stock that incorporates
the terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section 4 to the extent that these terms are not in conflict with those terms explicitly set forth in the Award Agreement. 
 (a) Grant Date. The Grant Date of each share of Adjusted Non-Employee Restricted Stock shall be deemed to be the date the Underlying Non-Employee
Restricted Stock was granted pursuant to the Sprint 1997 LTIP as set forth in the Underlying Non-Employee Restricted Stock award agreement. 
 (b) Restrictions. Each share of Adjusted Non-Employee Restricted Stock shall have the same terms and conditions relating to nontransferability and risk of forfeiture as the Underlying Non-Employee Restricted Stock. 
 (c) Lapse of Restrictions. The restrictions on the Adjusted Non-Employee Restricted Stock shall lapse in accordance with the same time schedule
and in proportion to the Underlying Non-Employee Restricted Stock pursuant to the Underlying Non-Employee Restricted Stock award agreement. Such lapse of restrictions on Adjusted Non-Employee Restricted Stock shall accelerate only upon, and in
accordance with, the acceleration of the lapse of restrictions upon the Underlying Non-Employee Restricted Stock as provided in the Underlying Non-Employee Restricted Stock award agreement. 
  

 28 

 Section 5. Recognized Service. 
 For purposes of this Restricted Stock Adjustment Program, Embarq shall treat employment by Sprint Nextel and each member of the Sprint Nextel Group as employment by Embarq under this Plan with respect to Adjusted
Non-Employee Restricted Stock Awards which are held by Sprint Employees. 
 Section 6. Non-Competition. 
 Notwithstanding Section 13(e) of this Plan, with respect to any Sprint Employee holding Restricted Stock, Embarq hereby waives any violation of
Section 13(e) of the Plan that may affect such aforementioned equity awards held by such respective persons that would otherwise be caused by any theory that a Sprint Employee is in competition with Embarq or an Affiliate solely because he or
she becomes associated with, employed by, renders services to, or owns any interest in, Sprint Nextel or a member of the Sprint Nextel Group. 
 Section 7. Recognition of Retention Award. 
 Notwithstanding the terms specified in an Award Agreement or in this Plan,
the terms and conditions of the Sprint Retention Program with respect to the acceleration of vesting of equity awards are incorporated herein by reference. 
  

 29 

 APPENDIX B 
 RSU SPIN-OFF ADJUSTMENT PROGRAM 
 Section 1. Purpose of Program. 
 The purpose of this RSU Spin-Off Adjustment Program (the “RSU Adjustment Program”) is to enable Embarq to fulfill its obligation, pursuant to
the terms of the EMA, to issue Shares to Sprint Employees who, in connection with the Distribution, received Embarq RSUs on account of such individuals holding Sprint RSUs issued under the Sprint Stock Plans. 
 Section 2. Definitions. 
 (a) Incorporation of
Terms from EMA. The following terms shall have the meanings assigned to them in the EMA: 
  

	 	(i)	“Sprint Employee” 

  

	 	(ii)	“Sprint Stock Plans” 

  

	 	(iii)	“Transfer Date” 

 (b) Incorporation of
Terms from the SDA. The following terms shall have the meanings assigned to them in the SDA: 
  

	 	(i)	“Distribution” 

  

	 	(ii)	“Distribution Date” 

  

	 	(iii)	“Distribution Time” 

 (c) Additional
Definitions. In addition to the definitions set forth in Section 2 of the Plan and in Section 2(a) and (b) of this Appendix B, as used in this RSU Adjustment Program, the following terms shall have the meanings set forth below:

  

	 	(i)	“Adjusted Non-Employee RSUs” mean RSUs granted to Sprint Employees in connection with the Distribution, as described in pursuant to Section 3 of this Appendix
B. 

  

	 	(ii)	“EMA” means the Employee Matters Agreement dated as of                  
, 2006, by and between Sprint Nextel and the Company, which governs the treatment of employees and employee benefit plans in the Distribution. 

  

	 	(iii)	“SDA” means the Separation and Distribution Agreement between Sprint Nextel and the Company dated as of
            , 2006. 

  

	 	(iv)	“Sprint Nextel” means Sprint Nextel Corporation, a Kansas corporation. 

  

 30 

	 	(v)	“Sprint 1997 LTIP” means the Sprint Corporation 1997 Long-Term Stock Incentive Program. 

  

	 	(vi)	“Sprint Restricted Stock Unit” or “Sprint RSU” means a restricted stock unit award under any of the Sprint Stock Plans. 

 

	 	(vii)	“Underlying Non-Employee RSU” means a Sprint RSU (other than an Outstanding Founders’ Grant, as defined in the EMA) held by a Sprint Employee and who receives
an Adjusted Non-Employee RSU Award pursuant to the EMA and this Appendix B. 

 Section 3. Grants of Adjusted Non-Employee RSUs.

 Pursuant to the EMA, each individual holding an Underlying Non-Employee RSU shall receive, pursuant to this RSU Adjustment Program, an
Adjusted Non-Employee RSU which reflects the number of Shares that such individual would have received at the Distribution Time if such individual’s Sprint RSU had been Sprint Restricted Stock (as defined in the EMA), rounded down to the
nearest whole share. Each such Adjusted Non-Employee RSU shall (to the extent practicable) be made subject to the same terms, conditions and restrictions after the Distribution Time as the terms, conditions and restrictions applicable to the
corresponding Underlying Non-Employee RSU immediately prior to the Distribution Time. 
 Section 4. Terms of Adjusted Non-Employee RSU Awards.

 Unless specified otherwise in the Award Agreement, the terms set forth in this Section 4 shall apply to all Adjusted Non-Employee RSU
Awards granted under this Plan. Any Award Agreement relating to a grant of Adjusted Non-Employee RSUs that incorporates the terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section 4 to the extent
that these terms are not in conflict with those terms explicitly set forth in the Award Agreement. 
 (a) Grant Date. The Grant Date
of each Adjusted Non-Employee RSU Award shall be deemed to be the date the Underlying Non-Employee RSU was granted pursuant to the Sprint 1997 LTIP as set forth in the Underlying Non-Employee RSU award agreement. 
 (b) Delivery of Shares. The Company will deliver the Shares underlying the Adjusted Non-Employee RSU Award on a delivery date elected by the
Participant with respect to the Underlying Non-Employee RSU Award, which may only be on or after the vesting date. The Participant may extend the date on which the delivery of shares underlying the Adjusted Non-Employee RSU Award would otherwise
occur (by any period or any multiple of that period determined by the Corporate Secretary) by an election made at least 13 months before the then current delivery date, provided that such extension extends the delivery date of such shares by a
minimum of five (5) years from the date the shares would otherwise have been delivered. Adjusted Non-Employee RSU Awards with an extended delivery date will not be cancelled if they vest before the Participant becomes associated with, employed
by, renders services to, or 

  

 31 

 
owns any substantial interest in any business that is in competition with the Company or with any business in which the Company has a substantial interest.

 (c) Vesting. The vesting date for Adjusted Non-Employee RSU Awards shall be the vesting date for the Underlying Non-Employee RSUs,
pursuant to the Underlying Non-Employee RSU award agreement. The vesting date for Adjusted Non-Employee RSU Awards shall accelerate only upon, and in accordance with, the acceleration of the vesting date of the Underlying Non-Employee RSUs, as
provided in the Underlying Non-Employee RSU award agreement. 
 Section 5. Recognized Service. 
 For purposes of this RSU Adjustment Program, Embarq shall treat employment by Sprint Nextel and each member of the Sprint Nextel Group as employment by
Embarq under this Plan with respect to Adjusted Non-Employee RSU Awards which are held by Sprint Employees. 
 Section 6. Non-Competition.

 Notwithstanding Section 13(e) of this Plan, with respect to any Sprint Employee holding Embarq RSUs, Embarq hereby waives any
violation of Section 13(e) of the Plan that may affect such aforementioned equity awards held by such respective persons that would otherwise be caused by any theory that a Sprint Employee is in competition with Embarq or a member of the Embarq
Group solely because he or she becomes associated with, employed by, renders services to, or owns any interest in, Sprint Nextel or a member of the Sprint Nextel Group. 
 Section 7. Recognition of Retention Award. 
 Notwithstanding the terms specified in an Award
Agreement or in this Plan, the terms and conditions of the Sprint Retention Program with respect to the acceleration of vesting of equity awards are incorporated herein by reference. 
  

 32Purchase Agreement

 Exhibit 10.13 
  
  
  
  
 PURCHASE AGREEMENT 
 BY AND AMONG

 CHARLOTTE RUSSE, INC., 
 AND 
 FOREVER 21 RETAIL, INC. 
  
  
  
  
 DATED 
 June 29, 2006

 TABLE OF CONTENTS 
  

					
	 1.
	  	 PURCHASE OF ASSETS
	  	2
			
		  	 1.1 Assets Purchased
	  	2
			
		  	 1.2 Purchase Price
	  	3
			
		  	 1.3 Excluded Assets
	  	3
			
		  	 1.4 Assumption of Liabilities
	  	3
			
		  	 1.5 Retained Liabilities
	  	4
			
		  	 1.6 Apportionments
	  	4
			
		  	 1.7 Payment of Apportionments
	  	5
			
		  	 1.8 Sales and Transfer Taxes
	  	6
			
		  	 1.9 Guarantee
	  	6
			
		  	 1.10 Escrow Agreement
	  	6
			
		  	 1.11 Certifications
	  	6
			
	 2.
	  	 Effective Dates
	  	6
			
		  	 2.1 Effective Dates
	  	6
			
		  	 2.2 Effective Date Deliveries by the Company
	  	7
			
		  	 2.3 Effective Date Deliveries by Purchaser
	  	9
			
	 3.
	  	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	10
			
		  	 3.1 Organization
	  	10
			
		  	 3.2 Authority
	  	10
			
		  	 3.3 No Conflict
	  	10
			
		  	 3.4 Contracts and Commitments
	  	10
			
		  	 3.5 Title
	  	10
			
		  	 3.6 Compliance with Laws and Court Orders
	  	11
			
		  	 3.7 Required Consents, Licenses and Permits and Orders
	  	11

  

 i 

					
		  	 3.8 Employee Matters
	  	11
			
		  	 3.9 Labor Matters
	  	11
			
		  	 3.10 Property
	  	11
			
		  	 3.11 Obligations due under the Leases
	  	12
			
		  	 3.12 Absence of Litigation
	  	12
			
		  	 3.13 FF&E
	  	13
			
		  	 3.14 Brokers
	  	13
			
	 4.
	  	 REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	13
			
		  	 4.1 Organization
	  	13
			
		  	 4.2 Authority
	  	13
			
		  	 4.3 No Conflict
	  	13
			
		  	 4.4 Absence of Litigation
	  	14
			
		  	 4.5 No Brokers
	  	14
			
	 5.
	  	 COVENANTS
	  	14
			
		  	 5.1 Rampage Store Employees
	  	14
			
		  	 5.2 Confidentiality
	  	14
			
		  	 5.3 Press Release; Other Disclosure
	  	15
			
		  	 5.4 Further Action
	  	15
			
	 6.
	  	 [INTENTIONALLY OMITTED]
	  	15
			
	 7.
	  	 INDEMNIFICATION
	  	15
			
		  	 7.1 Survival Of Representations And Covenants
	  	15
			
		  	 7.2 Indemnification
	  	17
			
		  	 7.3 Defense Of Third Party Claims
	  	19
			
		  	 7.4 Exercise Of Remedies By Indemnitees Other Than Parties To This Agreement
	  	21
			
	 8.
	  	 GENERAL PROVISIONS
	  	21

  

 ii 

					
		  	 8.1 Notices
	  	21
			
		  	 8.2 Arbitration
	  	21
			
		  	 8.3 Assignment; Binding Effect
	  	22
			
		  	 8.4 Entire Agreement
	  	22
			
		  	 8.5 Expenses
	  	22
			
		  	 8.6 Amendment
	  	22
			
		  	 8.7 Governing Law
	  	22
			
		  	 8.8 Counterparts
	  	22
			
		  	 8.9 Specific Performance
	  	23
			
		  	 8.10 Headings
	  	23
			
		  	 8.11 Interpretations
	  	23
			
		  	 8.12 Waivers
	  	23
			
		  	 8.13 Severability
	  	24
			
		  	 8.14 WAIVER OF JURY TRIAL
	  	24
			
		  	 8.15 Remedies Not Cumulative; No Strict Construction
	  	24
			
		  	 8.16 Attorneys’ Fees
	  	24

  

 iii 

 PURCHASE AGREEMENT 
 This PURCHASE AGREEMENT (this “Agreement”) is dated June 29, 2006, (the “Execution Date”) by and among Charlotte Russe, Inc., a California corporation (the
“Company”) and Forever 21 Retail, Inc., a California corporation (“Purchaser”) which is a wholly-owned subsidiary of Forever 21, Inc., a Delaware corporation (the “Parent”). Capitalized terms used
but not defined elsewhere in the text of this Agreement are defined in Exhibit A attached hereto. 
 WHEREAS, Purchaser desires to
purchase from the Company, and the Company desires to sell to Purchaser, the Acquired Assets, as hereinafter defined, including the following assets of the Company: up to forty-four (44) leases relating to stores currently being operated
by the Company as “Rampage” stores (the “Rampage Stores”), as scheduled in Exhibit B attached hereto and made a part hereof, and all of the tangible assets used by the Company exclusively in the operation of the
Rampage Stores, including, without limitation, furniture, fixtures, telephones and other equipment (excluding point of sale systems and registers, supplies marked with the “Rampage” name and signage), furnishings, office supplies,
mannequins, rolling racks, sign holdings, leasehold improvements and all other fixed assets and tangible personal property located at the Rampage Stores, but excluding all inventory (collectively, the “FF&E”), in exchange for
the payment to the Company of the Individual Store Purchase Price for each Rampage Store and all the FF&E relating thereto acquired by Purchaser and the assumption by Purchaser of the “Assumed Liabilities,” as hereinafter defined, with
respect to each Rampage Store so acquired. 
 WHEREAS, subject to the terms and conditions of this Agreement, the Company has agreed to
assign and Purchaser has agreed to assume, effective as of July 5, 2006, the leases with respect to twenty-four (24) Rampage Stores as scheduled in Schedule 1.1 attached hereto and made a part hereof (collectively, the
“Initial Leased Facilities” and individually, an “Initial Leased Facility”) and all the FF&E relating thereto, in exchange for the payment to the Company of the Individual Store Purchase Price for each Initial
Leased Facility and all the FF&E relating thereto acquired by Purchaser as of July 5, 2006. Subject to the terms and conditions of this Agreement, Purchaser shall also assume the Assumed Liabilities with respect to each Initial Leased
Facility so acquired as of July 5, 2006. 
 WHEREAS, subject to the terms and conditions of this Agreement, the Company has agreed to
assign and Purchaser has agreed to assume, effective as of July 31, 2006, the leases with respect to the remaining twenty (20) Rampage Stores as scheduled in Schedule 1.2 attached hereto and made a part hereof (collectively, the
“Additional Leased Facilities” and individually, an “Additional Leased Facility”) and all the FF&E relating thereto, in exchange for the payment to the Company of the Individual Store Purchase Price for each
Additional Leased Facility and all the FF&E relating thereto acquired by Purchaser as of July 31, 2006. Purchaser shall also assume the Assumed Liabilities with respect to each Additional Leased Facility so acquired as of July 31,
2006. The Initial Leased Facilities and the Additional Leased Facilities are hereinafter referred to collectively as the “Leased Facilities and individually as a “Leased Facility.” 
  

 1 

 NOW, THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants
and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. PURCHASE OF ASSETS. 
 1.1 Assets Purchased.
On the terms and subject to the conditions set forth in this Agreement, the Company shall assign, transfer, convey and deliver to Purchaser, and Purchaser shall acquire and accept from the Company, free and clear of any Liens and Retained
Liabilities, all of the Company’s right, title and interest in and to those assets listed or described below, as the same shall exist on the applicable Effective Date, as hereinafter defined (the properties, assets and rights assigned pursuant
to this Section 1.1 are collectively referred to herein as the “Acquired Assets”): 
  

	 	1.1.1	all rights and incidents of interest of the Company in and to the leases relating to the Leased Facilities (collectively, the “Leases”) as well as all right, title
and interest of the Company in the FF&E for each of the Leased Facilities; 

  

	 	1.1.2	all rights and incidents of interest of the Company in and to such other agreements, contracts, purchase orders and licenses entered into, accepted or made by the Company which
Purchaser has expressly agreed to assume and that are set forth in Exhibit C attached hereto (collectively, the “Assumed Contracts”). With respect to each Leased Facility, the Company agrees to make commercially reasonable
efforts to transfer existing communications services (local voice, long-distance voice, and DSL broadband data) to Purchaser with existing telephone numbers listed in Schedule 1.1.2 attached hereto remaining intact; 

 

	 	1.1.3	all rights of the Company under all warranties, representations and guarantees made by suppliers, manufacturers and contractors in connection with any Acquired Asset;

  

	 	1.1.4	to the extent transferable through commercially reasonable efforts all Licenses (which for clarification purposes excludes that certain Rampage License Agreement between the Company
and Rampage Licensing, LLC dated September 30, 1997, as amended) and Permits held by the Company with respect to the Rampage Stores operated at the Leased Facilities or the Acquired Assets located therein; 

  

	 	1.1.5	all of the Company’s books, records, legal pleadings and correspondence, insofar as they relate exclusively to the Leases, the Assumed Contracts or the other Acquired Assets
whether in hard copy or electronic format (the “Transferred Books and Records”); provided that the Company may retain one copy of all such Transferred Books and Records; in addition, Purchaser shall receive and be entitled to the
use of a copy of all of the Company’s books, records, legal pleadings and correspondence, insofar as they relate principally to the Leases, the Assumed Contracts or the other Acquired Assets whether in hard copy or electronic format; provided
that the Company retain the original copies of all such documents; and 

  

 2 

	 	1.1.6	all of the Company’s rights, claims, credits, causes of action or rights of set-off against Third Parties relating to the Acquired Assets. 

 Except for the representations and warranties set forth in Section 3 below and the agreements contained in this Section 1, Purchaser agrees to acquire the
physical spaces occupied by the Leased Facilities and the other Acquired Assets on an “as is” basis. 
 1.2 Purchase Price.
The purchase price for the Acquired Assets shall be an amount equal to the Individual Store Purchase Price multiplied by the number of Leased Facilities for which the Company has satisfied the Company Transfer Obligations MINUS the Individual Store
Purchase Price (the “Purchase Price”). 
  

	 	1.2.1	The Purchase Price shall only be paid out of Escrowed Funds, as hereinafter defined, in accordance with the terms of the Escrow Agreement, as hereinafter defined;

  

	 	1.2.2	At the Initial Effective Date, as hereinafter defined, or as soon thereafter as Purchaser has received all of the applicable Company Transfer Deliveries, as hereinafter defined,
with respect to any Initial Leased Facility, including the applicable Landlord’s Assignment and Consent, as hereinafter defined, (“Company Transfer Obligations”), the Escrow Agent, as hereinafter defined, shall release out of
the Escrowed Funds the Individual Store Purchase Price multiplied by the number of any Initial Leased Facilities for which the Company Transfer Obligations have been satisfied; provided, however, that Purchaser shall be entitled to a credit equal to
the Good Faith Deposit which shall be deducted from the Individual Store Purchase Price for the first Leased Facility for which the Company satisfies the Company Transfer Obligations; provided further, however, that the Individual Store Purchase
Price shall not be payable with respect to the Rampage Store located at La Cumbre Plaza; and 

  

	 	1.2.3	At the Second Effective Date, as hereinafter defined, provided the applicable Company Transfer Obligations have been satisfied with respect to any Additional Leased Facility, the
Escrow Agent shall release out of the Escrowed Funds the Individual Store Purchase Price multiplied by the number of such Additional Leased Facilities. 

 1.3 Excluded Assets. The Company shall retain and shall not transfer, and Purchaser shall not accept or acquire, any other properties, assets or rights of the Company other than the Acquired Assets (the
“Excluded Assets”). 
 1.4 Assumption of Liabilities. On the terms and subject to the conditions set forth in this
Agreement, as of the Initial Effective Date or the Second Effective Date, as the case may be, Purchaser shall assume, and thereafter shall discharge and perform when due only those Liabilities under the Leases, the Assumed Contracts or relating to
the other Acquired Assets which arise, accrue or are incurred after the applicable Effective Date for which the Acquired Assets were transferred (except for obligations or Liabilities which arise as a result of Company Contract Breaches)
(collectively, the “Assumed Liabilities”). 
  

 3 

 1.5 Retained Liabilities. Notwithstanding Section 1.4 or any other provision in this
Agreement or any other writing to the contrary, Purchaser is assuming only the Assumed Liabilities and is not assuming any other Liability of the Company (or of any predecessor of the Company or of any prior owner of all or part of the
Company’s business and assets) of whatever nature, whether presently in existence or arising hereafter. All such other Liabilities shall be retained liabilities which Purchaser shall not be assuming and shall remain Liabilities of the Company
(all such Liabilities not being assumed being herein referred to as the “Retained Liabilities”). Notwithstanding any provision in this Agreement or any other writing to the contrary, Retained Liabilities include, but are not limited
to: 
  

	 	1.5.1	any Liability of the Company, including those relating to the Acquired Assets, which arises, accrues or is incurred prior to the applicable Effective Date on which the Acquired
Assets were transferred; 

  

	 	1.5.2	Any Liability arising out of or relating to a Company Contract Breach; 

  

	 	1.5.3	any indebtedness or obligation for borrowed money of the Company and its Affiliates; 

  

	 	1.5.4	any Employee Obligation and any other Liability of the Company relating to the Company’s employees during the term of their employment with the Company;

  

	 	1.5.5	any Liabilities for Taxes (including sales, transfer and all other Taxes resulting from the consummation of the transactions contemplated by this Agreement);

  

	 	1.5.6	any Liability arising out of or relating to any violation of any law, rule, regulation, judgment, injunction, order or decree occurring or arising out of or relating to any event or
condition occurring or existing at or prior to the applicable Effective Date on which the Acquired Assets were transferred whether or not such Liability relates to an Acquired Asset; and 

  

	 	1.5.7	any Liability for all Approval Costs and other costs and expenses of the Company incurred in connection with the negotiation, execution and consummation of the transactions
contemplated under this Agreement. 

 1.6 Apportionments. 
  

	 	1.6.1	Rent occupancy and all other costs, expenses, fees or charges or other Apportioned Items, as hereinafter defined, relating to each of the Initial Leased Facilities and Assumed
Contracts relating thereto for any period that begins before the Initial Effective Date and ends after the Initial Effective Date are to be apportioned between the Company, on the one hand, and Purchaser, on the other hand, as of midnight on the
Initial Effective Date, with the Company being fully responsible for the payment or satisfaction of all Apportioned Items through the Initial Effective Date and Purchaser being responsible for the payment or satisfaction of all Apportioned Items
thereafter. 

  

 4 

	 	1.6.2	Rent occupancy and all other costs, expenses, fees or charges or other Apportioned Items relating to each of the Additional Leased Facilities and Assumed Contracts relating thereto
for any period that begins before the Second Effective Date and ends after the Second Effective Date are to be apportioned between the Company, on the one hand, and Purchaser, on the other hand, as of midnight on the Second Effective Date, with the
Company being fully responsible for the payment or satisfaction of all Apportioned Items through the Second Effective Date and Purchaser being responsible for the payment or satisfaction of all Apportioned Items thereafter. 

 

	 	1.6.3	In the event that the amount of any Apportioned Item cannot be calculated as between amounts thereof incurred pre and post the applicable Effective Date, and thereby allocated
between the Company and Purchaser, the allocation of such Apportioned Item shall be made on a pro-rata basis between the parties with the Company’s portion of such Apportioned Item equaling the result obtained by multiplying the total amount of
such Apportioned Item by a fraction having a numerator equal to the number of days in the applicable period which occurred on or prior to the applicable Effective Date and a denominator equal to the total number of days in the applicable period.
Purchaser’s portion of such Apportioned Item shall be equal to the result obtained by multiplying the total amount of such Apportioned Item by a fraction having a numerator equal to the number of days in the applicable period which occurred
after the applicable Effective Date and a denominator equal to the total number of days in the applicable period. 

  

	 	1.6.4	Apportioned Items shall include base rent, percentage rent, common area maintenance costs, and other landlord, vendor or licensor billed and direct-billed costs (e.g., property
taxes, insurance, utilities, mall marketing programs, etc.) (“Apportioned Items”). 

 1.7 Payment of
Apportionments. The Apportioned Items set forth in Section 1.6 shall be payable in the manner set forth below: 
  

	 	1.7.1	Payments made by the Company before or after the applicable Effective Date which are apportioned to Purchaser shall be billed to Purchaser and paid to the Company within fifteen
(15) Business Days. 

  

 5 

	 	1.7.2	Payments made by Purchaser before or after the applicable Effective Date which are apportioned to the Company shall be billed to the Company and paid to Purchaser within fifteen
(15) Business Days. 

 1.8 Sales and Transfer Taxes. The Company shall be responsible for any sales or transfer
Taxes or fees payable as a result of the transactions contemplated by this Agreement. 
 1.9 Guarantee. On the Execution Date,
Purchaser shall cause to be delivered to the Company the Guarantee of the Parent, dated as of the date hereof, executed by the Parent for the benefit of the Company, in form and substance acceptable to the Company (the “Guarantee”).

 1.10 Escrow Agreement. On the Execution Date, the parties shall have received a fully executed Escrow Agreement, dated as of the
date hereof, by and among Wells Fargo Bank, National Association, as Escrow Agent (the “Escrow Agent”), Purchaser and the Company (the “Escrow Agreement”). No later than two (2) Business Days after the date
hereof, Purchaser or the Parent shall deliver to the Escrow Agent Thirteen Million Seven Hundred Twenty Five Thousand Dollars and no Cents ($13,725,000.00) (such amount plus any interest earned thereon shall hereinafter be known as the
“Escrowed Funds”). The disposition of the Escrowed Funds shall be as provided for in the Escrow Agreement; provided, however, the parties agree and the Escrow Agreement shall provide that: (i) the fees and expenses of the
Escrow Agent shall be borne equally by the Company and Purchaser and (ii) the amount of the Individual Store Purchase Price plus any interest thereon with respect to any Additional Leased Facilities for which Purchaser has not received the
Second Effective Date Company Transfer Deliveries, as hereinafter defined, on July 31, 2006 shall be disbursed by the Escrow Agent to Purchaser on August 10, 2006. 
 1.11 Certifications. On the Execution Date, the Company shall have delivered to Purchaser (i) resolutions by the board of directors of the
Company approving this Agreement and the transactions contemplated herein certified by a duly authorized officer of the Company and (ii) a certificate, in accordance with Section 1.1445-2(b) of the Treasury Regulations, stating that the
Company is not a foreign person. On the Execution Date, Purchaser shall have delivered to the Company resolutions by the board of directors of Purchaser approving this Agreement and the transactions contemplated herein certified by a duly authorized
officer of Purchaser. 
 2. EFFECTIVE DATES. 
 2.1 Effective Dates. All deliveries on the applicable Effective Date shall take place at the offices of Jeffer, Mangels, Butler & Marmaro, LLP, 1900 Avenue of the Stars, Los Angeles, CA or at such other place as the parties
may mutually agree upon. The parties agree that the effectiveness of the transfer of the Acquired Assets on the Initial Effective Date or the Second Effective Dates, as applicable, shall occur at 10:00 pm local time on the such dates. 
  

	 	2.1.1	The effective date of the sale and transfer of the Initial Leased Facilities and the Acquired Assets relating thereto will take place on July 5, 2006 (the “Initial
Effective Date”). 

  

 6 

	 	2.1.2	The effective date of the sale and transfer of the Additional Leased Facilities and the Acquired Assets relating thereto will take place on July 31, 2006 (the “Second
Effective Date”). 

  

	 	2.1.3	The Company and Purchaser agree that Purchaser shall: (i) on the Initial Effective Date, take physical possession of the Initial Leased Facilities and all other Acquired Assets
relating thereto, subject to Purchaser’s receipt of all applicable Company Transfer Deliveries (excluding the Landlord’s Assignment and Consent) and (ii) on the Second Effective Date, take physical possession of those Additional Lease
Facilities and all other Acquired Assets relating thereto, subject to Purchaser’s receipt of all applicable Company Transfer Deliveries. 

  

	 	2.1.4	The parties acknowledge and agree that, subject to Purchaser’s receipt of all applicable Company Transfer Obligations, the sale and transfer of the Initial Leased Facilities
and the Additional Leased Facilities and the Acquired Assets relating thereto, as well as the assumption by Purchaser of the Assumed Liabilities relating to such Acquired Assets, shall occur on the applicable Effective Date with respect to such
Acquired Assets; notwithstanding the foregoing, prior to the execution and delivery to Purchaser of the applicable Landlord’s Assignment and Consent, the Company and Purchaser agree that: (i) the Company shall remain responsible for the
Assumed Liabilities; and (ii) Purchaser shall solely be responsible for any and all liabilities of any nature incurred by it, based upon or related to its use and occupancy of any Leased Facilities transferred to it pursuant to
Section 2.1.3 above. 

  

	 	2.1.5	The Initial Effective Date or the Second Effective Date may hereinafter be referred to both individually or collectively as the “Effective Date.”

 2.2 Effective Date Deliveries by the Company. 
  

	 	2.2.1	On the Initial Effective Date the Company shall deliver the following documents to Purchaser (the “Initial Effective Date Company Transfer Deliveries”):

  

	 	(i)	the Transferred Books and Records with respect to the Initial Leased Facilities; 

  

	 	(ii)	a duly executed bill of sale transferring the Acquired Assets to Purchaser with respect to the Initial Leased Facilities for which a Landlord’s Assignment and Consent has been
delivered; 

  

	 	(iii)	a duly executed assignment and assumption agreement assigning the Assumed Contracts relating to the Initial Leased Facilities; 

  

	 	(iv)	a duly executed assignment of each Initial Leased Facility (“Landlord’s Assignment and Consent”), if available; 

  

 7 

	 	(v)	the Required Consents, as hereinafter defined, with respect to each Initial Leased Facility (excluding any Landlord’s Assignment and Consent that is not available on the
Initial Effective Date); 

  

	 	(vi)	a certificate executed by the Senior Executive Vice President and Chief Operating Officer of the Company certifying that: (i) each and every representation of the Company set
forth in Section 3 was true and correct in all material respects as of the Execution Date and at all times between the Execution Date and the Initial Effective Date (except for representations qualified by materiality, which were true and
correct in all respects as of the Execution Date and at all times between the Execution Date and the Initial Effective Date, and except for representations made as of a specified date, which were true and correct only as of the specified date) and
(ii) the Company is not currently and has not at any time from the Execution Date to the Initial Effective Date been in material breach or default in its obligations under this Agreement, nor has any action or event occurred prior to the
Initial Effective Date which but for the passage of time would constitute a material breach or default under the terms of this Agreement; and 

  

	 	(vii)	such other documents reasonably requested by Purchaser. 

  

	 	2.2.2	On the Second Effective Date the Company shall deliver the following documents to Purchaser (collectively, the “Second Effective Date Company Transfer Deliveries”):

  

	 	(i)	the Transferred Books and Records with respect to the Additional Leased Facilities being transferred on the Second Effective Date; 

  

	 	(ii)	a duly executed bill of sale transferring the Acquired Assets to Purchaser with respect to the Additional Leased Facilities being transferred on the Second Effective Date;

  

	 	(iii)	a duly executed assignment and assumption agreement assigning the Assumed Contracts with respect to the Additional Leased Facilities being transferred on the Second Effective Date;

  

	 	(iv)	a duly executed Landlord’s Assignment and Consent with respect to the Additional Leased Facilities being transferred on the Second Effective Date; 

  

	 	(v)	the Required Consents with respect to the Additional Leased Facilities being transferred on the Second Effective Date; 

  

 8 

	 	(vi)	a certificate executed by the Senior Executive Vice President and Chief Operating Officer of the Company certifying that: (i) each and every representation of the Company set
forth in Section 3 was true and correct in all material respects as of the Execution Date and at all times between the Execution Date and the Second Effective Date (except for representations qualified by materiality, which were true and
correct in all respects as of the Execution Date and at all times between the Execution Date and the Second Effective Date, and except for representations made as of a specified date, which were true and correct only as of the specified date) and
(ii) the Company is not currently and has not at any time from the Execution Date to the Second Effective Date been in material breach or default in its obligations under this Agreement, nor has any action or event occurred prior to the Second
Effective Date which but for the passage of time would constitute a material breach or default under the terms of this Agreement; and 

  

	 	(vii)	such other documents reasonably requested by Purchaser. 

 The Initial
Effective Date Company Transfer Deliveries and the Second Effective Date Company Transfer Deliveries shall from time to time individually and collectively be referred to as the “Company Transfer Deliveries.” 
  

	 	2.2.3	With respect to any Initial Leased Facility for which a Landlord’s Assignment and Consent has not been obtained on the Initial Effective Date, the Company shall deliver such
Landlord’s Assignment and Consent and a duly executed bill of sale transferring the Acquired Assets to Purchaser with respect to such Initial Leased Facility(ies) as soon as practicable after receipt of such Landlord’s Assignment and
Consent for such Initial Leased Facility(ies). 

 2.3 Effective Date Deliveries by Purchaser. On the applicable
Effective Date Purchaser shall deliver to the Company a certificate executed by the President or the Chief Financial Officer of Purchaser certifying that: (i) each and every representation of Purchaser set forth in Section 4 was true and
correct in all material respects as of the Execution Date and at all times between the Execution Date and the Initial Effective Date or the Second Effective Date, as the case may be, (except for representations qualified by materiality, which were
true and correct in all respects as of the Execution Date and at all times between the Execution Date and the Initial Effective Date or the Second Effective Date, as the case may be, and except for representations made as of a specified date, which
were true and correct only as of the specified date) and (ii) Purchaser is not currently and has not at any time from the Execution Date to the Initial Effective Date or the Second Effective Date, as the case may be, been in material breach or
default in its obligations under this Agreement nor has any action or event occurred prior to the Initial Effective Date or the Second Effective Date, as the case may be, which but for the passage of time would constitute a material breach or
default by Purchaser under the terms of this Agreement. 
 The Company’s right to receive out of the Escrowed Funds the Individual Store Purchase Price
for any of the Leased Facilities at the Initial Effective Date or the Second Effective Date, as the case may be, shall be as set forth in Section 1.2.2 or 1.2.3, as applicable. 
  

 9 

 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to Purchaser as follows:

 3.1 Organization. The Company is a corporation validly existing, and in good standing under the Laws of the State of California.

 3.2 Authority. The Company has full corporate power and authority to enter into this Agreement and to perform its obligations under
this Agreement and to consummate the transactions contemplated hereby. The execution, delivery, and performance of this Agreement, and all agreements, instruments and documents contemplated hereby, by the Company and the consummation by the Company
of the transactions contemplated hereby have been duly and validly authorized by the board of directors of the Company and no other action on the part of the Company or any of its stockholders is necessary to authorize the execution, delivery and
performance of this Agreement and the consummation by the Company of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Company and will constitute a legal, valid, and binding obligation of
the Company, enforceable against it in accordance with its terms, except that (a) such enforceability may be subject to applicable bankruptcy, insolvency or other similar Laws now or hereafter in effect affecting creditors’ rights
generally and (b) the availability of the remedy of specific performance or injunctive or other forms of equitable relief may be subject to equitable defenses and would be subject to the discretion of the court before which any proceeding
therefor may be brought. 
 3.3 No Conflict. The execution, delivery and performance by the Company of this Agreement and the other
agreements and documents related hereto and the consummation by the Company of the transactions contemplated hereby, with or without the giving of notice or the lapse of time or both, (i) will not require any consent by, approval of, filing
with or notice to any Person or governmental or regulatory authority under any agreement or provision of law applicable to the Company or the Acquired Assets, other than the Required Consents, (ii) will not conflict with or violate any
provision of law or result in the breach of, or constitute a default under, or result in the termination of, any Lease or Assumed Contract or material default under any other material agreement or instrument to which the Company is a party or by
which the Acquired Assets are bound or violate any judgment or order binding upon the Company, and (iii) will not result in the creation of any lien, security interest, charge or encumbrance upon any of the Acquired Assets. 
 3.4 Contracts and Commitments. Neither the Company nor any other party to any Lease or Assumed Contract is in default in any material respect
under any Lease or Assumed Contract and no condition or state of facts exists which, with notice or the passage of time, or both, would constitute such a default by the Company or, to the Knowledge of the Company, such a default by another party to
any Lease or Assumed Contract. Each Assumed Contract is a legal, valid and binding obligation of the Company and, to the Knowledge of the Company, each other party to the Assumed Contracts. 
 3.5 Title. The Company is in possession of and has good title to, or a valid leasehold interest in or valid rights to use, all of the Acquired
Assets, free and clear of all Liens. 
  

 10 

 3.6 Compliance with Laws and Court Orders. The Company is not in material violation of, or has in
the past three years materially violated, or to the Knowledge of the Company, is under investigation with respect to, or has been threatened to be charged with or given notice of any material violation of, any law, rule, regulation, judgment,
injunction, writ, judgment, order or decree applicable to the Acquired Assets. There is no action, suit, charge or proceeding pending, or, to the Knowledge of the Company, threatened, against the Company, any of its properties, assets or rights
before any Governmental Entity or arbitration tribunal which, individually or in the aggregate would reasonably be expected to have a material adverse effect upon any of the Acquired Assets or a material adverse effect upon the Company taken as a
whole. 
 3.7 Required Consents, Licenses and Permits and Orders. Schedule 3.7 attached hereto sets forth a list of all
consents, Licenses and Permits and Orders which are required in connection with: (i) the transfer and assignment of the Acquired Assets to Purchaser pursuant to this Agreement (the “Required Consents”); and (ii) the
execution and delivery of this Agreement and the other related agreements and documents and the consummation of the transactions contemplated hereby. All Required Consents have been obtained by the Company and are in full force and effect.

 3.8 Employee Matters. There are no accrued and unpaid Employee Obligations. To the Knowledge of the Company, there are no
controversies or disputes pending between the Company and any Rampage Store Employee which would have a material adverse effect on the Acquired Assets. 
 3.9 Labor Matters. With respect to the Rampage Store Employees: (i) the Company is not party to or bound by any collective bargaining or similar agreement with any labor organization; (ii) no Rampage
Store Employees are represented by any labor organization; and (iii) the Company has no Knowledge of any union organizing activities among the Rampage Store Employees. 
 3.10 Property. Exhibit B sets forth the address, landlord and mall location of each Leased Facility. The Company has delivered or made
available to Purchaser a true and complete copy of each Lease, along with all amendments and modifications thereto for all of the Leased Facilities and such Leases have not been amended since the date of delivery of such Leases to Purchaser. The
Company has notified Purchaser as to the existence of any pending or threatened negotiations with landlords of which the Company has Knowledge regarding any of the Leases. 
  

	 	3.10.1	Except as set forth in Schedule 3.10.1, with respect to each Lease: (i) such Lease is legal, valid, binding, enforceable against the Company and in full force and
effect; (ii) there are no material disputes with respect to such Lease; (iii) the Company does not owe, nor will it owe in the future, any brokerage commissions or finder’s fees with respect to such Lease; (iv) the other party to
such Lease is not an Affiliate of, and otherwise does not have any economic interest in, the Company; and (v) there are no Liens on the estate or interest created by such Lease created or suffered to exist by the Company.

  

 11 

	 	3.10.2	The present use of the Leased Facilities is in conformity in all material respects with all applicable laws, rules, regulations and ordinances and there exists no conflict or
dispute with any Governmental Entity or other Person relating to any Leased Facility or the activities thereon. 

  

	 	3.10.3	To the Knowledge of the Company, all requisite certificates of occupancy and other permits or approvals required with respect to the buildings, structures and improvements on any of
the Leased Facilities and the occupancy and use thereof have been obtained and are currently in effect. 

  

	 	3.10.4	To the Knowledge of the Company, the Company has not received any notice from any insurance company of any material defects or inadequacies in the Leased Facilities or any part
thereof, which would materially adversely affect the insurability of the same or of any termination or threatened termination of any policy of insurance. 

  

	 	3.10.5	To the Knowledge of the Company, the Company has not received any written notification from any Governmental Entity that any work is required to be done upon or in connection with
the Leased Facilities or the mall location where any Leased Facility is located, where such work remains outstanding and, if unaddressed, would have a material adverse effect on the use of the Leased Facilities as currently operated.

  

	 	3.10.6	In connection with the Leased Facilities, the Company has never and does not currently utilize, store, dispose of, treat, generate, process, transport, release, or own any Hazardous
Substance in violation of any Law. The operations of the Company have not resulted in the discharge, release, spillage, uncontrolled loss, seepage, or filtration of any Hazardous Substance or any fuel, gasoline, or other petroleum product or
by-product at, upon, or under any of Leased Facilities, in an amount that violates any Law. 

 3.11 Obligations due under
the Leases. The Company has paid in full: (i) the rent under all Leases through the Initial Effective Date and, with respect to any Additional Leased Facility, the Second Effective Date, as the case may be; and (ii) any other amounts
which are due and payable to the landlords as of the Initial Effective Date and, with respect to any Additional Leased Facility, the Second Effective Date, as the case may be. 
 3.12 Absence of Litigation. There are no Actions pending or, to the Company’s Knowledge, investigation threatened or contemplated against or
affecting the Company or the Acquired Assets, at law or in equity, or through arbitration, before or by any federal, state, municipal or other Governmental Entity or non-governmental department, commission, board, bureau, agency, court or other
instrumentality, or by any private person or entity other than Actions which do not relate to any Acquired Asset and which if adversely determined, would not, or could not, individually or in the aggregate, have an adverse effect upon the Acquired
Assets. There are no Actions pending or, to the Company’s Knowledge, investigation pending or contemplated that that if adversely determined, would, or could, individually or in the aggregate: (i) have an adverse, affect upon the
Company’s ability to consummate the transactions contemplated hereby or (ii) relate to or impair the implementation of this Agreement. There are no existing or threatened Orders or judgments or decrees of any court or Governmental Entity
that specifically prevent the Company’s execution and delivery of this Agreement and the consummations of the transactions contemplated thereby. 
  

 12 

 3.13 FF&E. The FF&E located at the Initial Leased Facilities as of the Initial Effective
Date represents all of the FF&E (including, without limitation, all mannequins, rolling racks and sign holders) utilized by the Company in its operation of the Initial Leased Facilities from March 31, 2006 though the Initial Effective Date,
excluding any FF&E which has been discarded due to ordinary wear and tear. The FF&E located at the Additional Leased Facilities as of the Second Effective Date represents all of the FF&E (including, without limitation, all mannequins,
rolling racks and sign holders) utilized by the Company in its operation of the Additional Leased Facilities from March 31, 2006 though the Second Effective Date, excluding any FF&E which has been discarded due to ordinary wear and tear.

 3.14 Brokers. The Company has no obligation to pay any fees, commissions or other similar compensation to any broker, finder,
investment banker, financial advisor or other similar Person in connection with the transactions contemplated hereby. 
 4. REPRESENTATIONS AND WARRANTIES
OF PURCHASER. Purchaser represents and warrants to the Company as follows: 
 4.1 Organization. Purchaser is a corporation
validly existing, and in good standing under the Laws of the State of California. 
 4.2 Authority. Purchaser has full corporate power
and authority to enter into this Agreement and to perform its obligations under this Agreement and to consummate the transactions contemplated hereby. The execution, delivery, and performance of this Agreement, and all agreements, instruments and
documents contemplated hereby, by Purchaser and the consummation by Purchaser of the transactions contemplated hereby have been duly and validly authorized by the board of directors of Purchaser and no other action on the part of Purchaser or any of
its stockholders is necessary to authorize the execution, delivery and performance of this Agreement and the consummation by Purchaser of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by
Purchaser and will constitute a legal, valid, and binding obligation of Purchaser, enforceable against it in accordance with its terms, except that (a) such enforceability may be subject to applicable bankruptcy, insolvency or other similar
Laws now or hereafter in effect affecting creditors’ rights generally and (b) the availability of the remedy of specific performance or injunctive or other forms of equitable relief may be subject to equitable defenses and would be subject
to the discretion of the court before which any proceeding therefor may be brought. 
 4.3 No Conflict. The execution, delivery and
performance by Purchaser of this Agreement and the other agreements and documents related hereto and the consummation by Purchaser of the transactions contemplated hereby, with or without the giving of notice or the lapse of time or both,
(i) will not require any consent by, approval of, filing with or notice to any Person or governmental or regulatory authority under any agreement or provision of law and (ii) will not conflict with or violate any provision of law or
violate any judgment or order binding upon Purchaser, except in both cases, for any such conflicts, violations, breaches or defaults that, individually or in the aggregate, would not have a material adverse affect on the Company. 
  

 13 

 4.4 Absence of Litigation. There are no Actions pending or, to Purchaser’s Knowledge,
investigation pending or contemplated that that if adversely determined, would, or could, individually or in the aggregate: (i) have an adverse, affect upon Purchaser’s ability to consummate the transactions contemplated hereby or
(ii) relate to or impair the implementation of this Agreement. There are no existing or threatened orders or judgments or decrees of any court or governmental agency that specifically prevent Purchaser’s execution and delivery of this
Agreement and the consummations of the transactions contemplated thereby. 
 4.5 No Brokers. Purchaser has no obligation to pay any
fees, commissions or other similar compensation to any broker, finder, investment banker, financial advisor or other similar Person in connection with the transactions contemplated hereby. 
 5. COVENANTS 
 5.1 Rampage Store Employees.

  

	 	5.1.1	All Rampage Store Employees employed at any Leased Facility shall be terminated by the Company effective on the Initial Effective Date or the Second Effective Date on which the
applicable Leased Facility is transferred to Purchaser. Purchaser may thereafter hire any or all of the Rampage Store Employees, excluding those Rampage Store Employees set forth on Schedule 5.1.1 attached hereto. Purchaser intends to offer
employment to substantially all of the Rampage Store Employees employed as of the applicable Effective Date that it deems necessary to operate the Leased Facilities after the applicable Effective Date at such salaries and with such other
compensation, benefits and upon such terms and conditions to be determined by Purchaser in its sole discretion. 

  

	 	5.1.2	The Company shall be responsible for all Employee Obligations and all obligations and Liabilities arising therefrom, whenever arising or accruing and Purchaser shall have no
obligations whatsoever in connection with any Employee Obligations. 

 5.2 Confidentiality. Except as and to the extent
required by law, neither the Company nor Purchaser will disclose or use, and will direct its representatives not to disclose or use to the detriment of the other party, any Confidential Information (as defined below) with respect to such party
furnished, or to be furnished, by either party or its representatives to the other party or its representatives at any time or in any manner other than in connection with the transactions contemplated by this Agreement. “Confidential
Information” means any information about either party provided to the other party or its representatives, unless (a) such information is already known to the receiving party or its representatives or to others not bound by a duty of
confidentiality or such information becomes publicly available through no fault of the receiving party or its representatives; (b) the use of such information is necessary or appropriate in making any public filing; or (c) the furnishing
or use of such information is required by or necessary or appropriate in connection with legal proceedings. Confidential Information may upon the consent of the delivering party be disclosed to third parties in order to obtain consents or approvals
in connection with the transactions contemplated by this Agreement. Upon the written request of the delivering party, the receiving party will promptly return to the delivering party or destroy any Confidential Information in its possession and
certify in writing to the delivering party that it has done so. 
  

 14 

 5.3 Press Release; Other Disclosure. The Company and Purchaser shall mutually agree upon the
language of one or more joint press releases regarding the transaction to be issued after the Execution Date. Except as and to the extent required by law or otherwise publicly disclosed, without the prior written consent of the other party, neither
the Company nor Purchaser will, and each will direct its representatives not to make, directly or indirectly, any public comment, statement or communication with respect to, or otherwise to disclose or to permit the disclosure of any of the terms,
conditions or other aspects of this Agreement or the transactions contemplated hereby. If a party is required by law to make any such disclosure, it must first provide to the other party a copy of such disclosure in advance of its disclosure.

 5.4 Further Action. Each party hereto agrees to execute, acknowledge, deliver, file and record such further certificates,
amendments, instruments and documents and to do all such other acts and things as may be required by law or as may be necessary or advisable to carry out the intent and purposes of this Agreement. 
 6. [INTENTIONALLY OMITTED] 
 7. INDEMNIFICATION 
 7.1 Survival Of Representations And Covenants. 
  

	 	7.1.1	The covenants and obligations of the parties contained in this Agreement shall survive (i) until fully performed or fulfilled, unless non-compliance with such covenants or
obligations is waived in writing by the party or parties entitled to such performance or (ii) if not fully performed or fulfilled, until the expiration of the relevant statute of limitations. 

  

	 	7.1.2	Subject to Section 7.1.4 and except for the representations and warranties contained in Sections 3.5 and 3.10.6 (the “Excluded Representations”), (i) the
representations and warranties set forth in Sections 3 and 4 shall expire twelve (12) months after the Execution Date if there is no Initial Effective Date, or twelve (12) months after Initial Effective Date or the applicable Second
Effective Date, as the case may be, and (ii) the Excluded Representations shall survive until thirty (30) days after the expiration of the applicable statute of limitations relating thereto (in any case, as applicable, the
“Expiration Date”); provided, however, that if a Claim Notice relating to any representation or warranty set forth in any of the provisions of Sections 3 or 4 is given to the Company or Purchaser, as the case may be, on or prior to
the time and date of expiration for such representation or warranty, then, notwithstanding anything to the contrary contained in this Section 7.1 or any applicable statute of limitations (which the parties hereby waive), the expiration of such
representation or warranty shall not effect the validity of any Claim expressly stated in any Claim Notice nor the asserting party’s rights to indemnification with respect to such Claim in accordance with this Section 7 until such Claim is
finally resolved by the parties hereunder or by a court of competent jurisdiction and any amount payable hereunder are finally determined and paid. The representations, warranties, covenants and obligations of each party, and the rights and remedies
that may be exercised by an Indemnitee, shall not be limited or otherwise affected by or as a result of any information furnished to, or any investigation made by or Knowledge of, the Indemnitee or any of their representatives. The parties recognize
and agree that the representations and warranties also operate as bargained for promises and risk allocation devices and that, accordingly, any party’s Knowledge, shall not affect the right to indemnification or payment of Damages pursuant to
this Section 7, or other remedy based on such representations, warranties, covenants, and obligations. 

  

 15 

	 	7.1.3	The representations, warranties, covenants and obligations of each party, and the rights and remedies that may be exercised by an Indemnitee, shall not be limited or otherwise
affected by or as a result of any information furnished to, or any investigation made by or Knowledge of, the Indemnitee or any of their representatives. The parties recognize and agree that the representations and warranties also operate as
bargained for promises and risk allocation devices and that, accordingly, any party’s Knowledge shall not affect the right to indemnification or payment of Damages pursuant to this Section 7, or other remedy based on such representations,
warranties, covenants, and obligations. 

  

	 	7.1.4	Notwithstanding anything to the contrary contained in Section 7.1, if either the Company or Purchaser commit any intentional misrepresentation or fraud related to any
representation or warranty of the Company or Purchaser set forth in Sections 3 or 4, as applicable, then such representation or warranty shall not expire, but rather shall remain in full force and effect for an unlimited period of time (regardless
of whether any Claim Notice relating to such representation or warranty is given prior to such time). 

  

	 	7.1.5	For purposes of this Agreement, a “Claim Notice” relating to a particular representation or warranty shall be deemed to have been given if any Indemnitee, acting in
good faith, delivers to the Company or Purchaser, as the case may be, a written notice stating that such Indemnitee believes that there is or has been a possible breach of such representation or warranty and containing (i) a brief description
of the circumstances supporting such Indemnitee’s belief that there is or has been such a possible breach (the “Claim”) and (ii) a non-binding, reasonable preliminary estimate of the aggregate dollar amount of the actual
and potential Damages that have arisen and may reasonably be expected to arise as a direct or indirect result of such possible breach. 

  

 16 

	 	7.1.6	For purposes of this Section 7, each statement or other item of information produced and created by the Company pertaining to the Company, the Acquired Assets or the Leased
Facilities contained in the Exhibits or Schedules shall be deemed to be a representation and warranty made by the Company. 

 7.2 Indemnification. 
  

	 	7.2.1	From and after the Execution Date, the Company shall hold harmless and indemnify Purchaser from and against, and shall compensate and reimburse Purchaser for, any Damages that are
directly or indirectly suffered or incurred by Purchaser or to which Purchaser may otherwise become subject at any time (regardless of whether or not such Damages relate to any third-party claim) and that arise from or as a result of, or are
connected with: 

  

	 	(i)	any breach of any representation or warranty on or before the applicable Expiration Date made by the Company in any Transaction Document; 

  

	 	(ii)	any breach of any covenant or obligation of the Company contained in any Transaction Document; 

  

	 	(iii)	any Excluded Asset or Retained Liability; 

  

	 	(iv)	any Employee Obligation, including but not limited to any Liability arising under the WARN Act or comparable state statute as a result of any termination of Rampage Store Employees
prior to, on or after the applicable Effective Date; or 

  

	 	(v)	any Proceeding relating to any breach, alleged breach, Liability or matter of the type referred to in clauses (i) through (iv) above (including any Proceeding commenced by
Purchaser for the purpose of enforcing any of its rights under this Section 7, to the extent Purchaser prevails in such Proceeding ). 

  

 17 

	 	7.2.2	From and after the Execution Date, solely with respect to (i) and (ii) below, and (iv) below to the extent that the indemnification under (iv) relates to
(i) or (ii) below, and from and after the applicable Effective Date, solely with respect to (iii) below, and (iv) below to the extent that the indemnification under (iv) relates to (iii) below, Purchaser shall hold
harmless and indemnify the Company from and against, and shall compensate and reimburse the Company for, any Damages that are directly or indirectly suffered or incurred by the Company or to which the Company may otherwise become subject at any time
(regardless of whether or not such Damages relate to any third-party claim) and that arise from or as a result of, or are connected with: 

  

	 	(i)	any breach of any representation or warranty on or before the applicable Expiration Date made by Purchaser in any Transaction Document; 

  

	 	(ii)	any breach of any covenant or obligation of Purchaser contained in any Transaction Document; 

  

	 	(iii)	any Assumed Liability; or 

  

	 	(iv)	any proceeding relating to any breach, alleged breach, Liability or matter of the type referred to in clauses (i) through (iii) above (including any Proceeding commenced
by the Company for the purpose of enforcing any of its rights under this Section 7, to the extent the Company prevails in such Proceeding). 

  

	 	7.2.3	Notwithstanding anything in this Agreement to the contrary, but subject to Section 7.2.4, (i) the Indemnitor shall have no liability for any indemnification payments
pursuant to this Section 7 solely for any breach of the representations and warranties contained in Sections 3 or 4 hereof, as applicable, unless and until the aggregate amount of all Damages of the applicable Indemnitee for all such breaches
exceeds $100,000, and then only to the extent that such Damages exceed $100,000 and (ii) the aggregate collective liability of the Indemnitor for any indemnification payments for breach of representations and warranties contained in Sections 3
or 4 hereof, as applicable, will be limited to, and shall not exceed, the Purchase Price. No other claims under this Agreement for indemnification or otherwise, including claims for failure to discharge any Retained Liabilities, shall be subject to
any limitation. In determining the foregoing thresholds or ceilings and in otherwise determining the amount of any Damages for which the applicable Indemnitee is entitled to assert a claim for indemnification, the amount of any such Damages shall be
determined after deducting there from the amount of any insurance proceeds or other third party recoveries actually received by the applicable Indemnitee in respect of such Damages (the “Third Party Recoveries”). In the event Third
Party Recoveries are actually received by such Indemnitee after such indemnification claim has been fully and finally resolved, the applicable Indemnitee shall pay such Third Party Recoveries to the Indemnitor promptly after such receipt but only to
the extent that such Third Party Recoveries pertain to Damages actually received by such Indemnitee as indemnification payments pursuant to such indemnification claim. 

  

	 	7.2.4	The limitations on the indemnification obligations of the Company that are set forth in Section 7.2.3 shall not apply to any Damages resulting from intentional
misrepresentation or fraud by the Company or any of their Affiliates. The limitations on the indemnification obligations of Purchaser that are set forth in Section 7.2.3 shall not apply to any intentional misrepresentation or fraud by Purchaser
or any of its Affiliates. 

  

 18 

 7.3 Defense Of Third Party Claims. 
  

	 	7.3.1	In the event of the assertion or commencement by any Person of any claim or Proceeding (whether against Purchaser, the Company or any other Person) with respect to which the Company
or Purchaser may become obligated to indemnify, hold harmless, compensate or reimburse any Indemnitee pursuant to this Section 7, except as provided in Section 7.3.3 below, the Indemnitee shall designate, if such Indemnitee is Purchaser,
the Company (or its representative), or, if such Indemnitee is the Company, Purchaser (or its representative) (in either case, the “Designated Party”), to assume the defense of such claim or Proceeding at the sole expense of the
Designated Party. If the Designated Party agrees to assume the defense of any such claim or Proceeding : 

  

	 	(i)	the Designated Party shall proceed to defend such claim or Proceeding in a reasonably diligent manner with counsel reasonably satisfactory to the Indemnitee;

  

	 	(ii)	the Indemnitee shall make available to the Designated Party any non-privileged documents and materials in the possession of the Indemnitee or its Affiliates that may be necessary to
the defense of such claim or Proceeding; 

  

	 	(iii)	the Designated Party shall keep the Indemnitee informed of all material developments and events relating to such claim or Proceeding; 

  

	 	(iv)	the Indemnitee shall have the right to participate in the defense of such claim or Proceeding at its sole cost and expense; and 

  

	 	(v)	the Designated Party shall not settle, adjust or compromise such claim or Proceeding without the prior written consent of the Indemnitee; provided, however, that the Indemnitee
shall not unreasonably withhold such consent if it satisfies each of the following conditions: (i) provides for a full release of the Indemnitee and its Affiliates with respect to the subject matter of such Claim or Proceeding; (ii) the
Indemnitee is not obligated to take any action or refrain from taking any action pursuant to the terms of such settlement, or (iii) if the Indemnitee is Purchaser, the settlement or compromise does not adversely effect Purchaser’s ongoing
business or operations at the Leased Facilities, Purchaser’s rights under any Assumed Contract or Purchaser’s use of any Acquired Assets. 

  

 19 

	 	7.3.2	If the Designated Party does not agree to assume the defense of any such claim or Proceeding (or if, after initially designating the Designated Party to assume such defense, the
Indemnitee elects to assume such defense pursuant to Section 7.3.3 below), the Indemnitee may proceed with the defense of such claim or Proceeding on its own. If the Indemnitee so proceeds with the defense of any such claim or Proceeding on its
own: 

  

	 	(i)	Indemnitee shall defend the claim or proceeding in a reasonably diligent manner; 

  

	 	(ii)	all expenses relating to the defense of such claim or Proceeding (whether or not incurred by the Indemnitee) shall be borne and paid exclusively by the Indemnitor;

  

	 	(iii)	the Indemnitor shall make available to the Indemnitee any documents and materials in the possession or control of the Indemnitor or its representatives that may be necessary to the
defense of such claim or Proceeding; 

  

	 	(iv)	the Indemnitee shall keep the Indemnitor informed of all material developments and events relating to such claim or Proceeding; and 

  

	 	(v)	the Indemnitee shall have the right to settle, adjust or compromise such claim or Proceeding with the consent of the Indemnitor; provided, however, that the Indemnitor shall not
unreasonably withhold such consent if it satisfies each of the following conditions: (i) provides for a full release of the Indemnitor and its Affiliates with respect to the subject matter of such Claim or Proceeding ; (ii) the Indemnitor
is not obligated to take any action or refrain from taking any action pursuant to the terms of such settlement; or (iii) if the Indemnitor is Purchaser, the settlement or compromise does not adversely effect Purchaser’s ongoing business or
operations at the Leased Facility, Purchaser’s rights under any Assumed Contract or Purchaser’s use of any Acquired Assets. 

  

	 	7.3.3	Notwithstanding anything in this Agreement to the contrary, if Purchaser reasonably determines in good faith that it is likely that a claim or Proceeding may materially adversely
affect its ongoing use of any Leased Facility or the Acquired Assets, Purchaser may, regardless of whether or not the Company had previously assumed the defense of the Proceedings pursuant to Section 7.3.1 above, at any time by notice to the
Company assume the exclusive right to defend, compromise or settle such Proceeding at the Company’s sole cost and expense and without the consent of the Company. 

  

 20 

 7.4 Exercise Of Remedies By Indemnitees Other Than Parties To This Agreement. No Indemnitee (other
than the parties to this Agreement or any successor thereto or assign thereof) shall be permitted to assert any indemnification claim or exercise any other remedy under this Agreement unless the respective party to this Agreement entitled to
indemnification (or any successor thereto or assign thereof) shall have consented to the assertion of such indemnification claim or the exercise of such other remedies. Notwithstanding the foregoing, nothing in this Agreement shall release either
party of any Liability for fraud. 
 8. GENERAL PROVISIONS. 
 8.1 Notices. Any notice or other communication permitted or required to be given hereunder will be in writing, and sent by reputable courier service (with proof of delivery), by hand delivery or by facsimile
(followed by delivery by courier service (with proof of delivery) or by hand delivery), addressed as follows: 
  

			
	If to Purchaser:	  	 Forever 21 Retail, Inc.
 2001 Alameda Street

Los Angeles, California 90058
 Attention: Do Won Chang
 Fax No.: (213) 741-8860

		
	 With copies to
 (which copy shall
 not constitute notice):
	  	 Jeffer, Mangels, Butler & Marmaro LLP
 1900 Avenue of
the Stars, 7th Floor
 Los Angeles, California 90067
 Attention:
Barry L. Burten, Esq.
 Fax No.: (310) 712-3359

		
	If to the Company:	  	 Charlotte Russe, Inc.
 4645 Morena Boulevard

San Diego, CA 92117
 Attention: Mark A. Hoffman
 Fax No.: (858) 875-0345

		
	 With copies to
 (which copy shall not
constitute
 notice):
	  	 Cooley Godward LLP
 4401 Eastgate Mall
 San Diego, California 92121
 Attention: Frederick T. Muto
 Fax No.: (858) 550-6420

 or to such other address as any party will specify by written notice so given, and such notice will be deemed to
have been delivered as of the date so telecommunicated or delivered by hand or courier service. 
  

 21 

 8.2 Arbitration. The parties agree that any dispute, controversy or claim arising out of, relating
to, or in connection with this Agreement including, without limitation, the provisions regarding indemnification under Section 7 shall be settled by arbitration administered by the American Arbitration Association under its Commercial
Arbitration Rules for binding arbitration in Los Angeles, California by a single arbitrator. The arbitrator may grant injunctions or other relief in such dispute or controversy. All awards of the arbitrator shall be binding and non-appealable.
Judgment upon the award of the arbitrator may be entered in any court having jurisdiction. The arbitrator shall apply California law to the merits of any dispute or claims, without reference to the rules of conflicts of law applicable therein. Suits
to compel or enjoin arbitration or to determine the applicability or legality of arbitration shall be brought in Superior Court for the State of California located in Los Angeles County. Notwithstanding the foregoing, no party to this Agreement
shall be precluded from applying to a proper court for injunctive relief by reason of the prior or subsequent commencement of an arbitration proceeding as herein provided. The prevailing party in any arbitration shall be entitled to receive its
reasonable attorneys’ fees and costs from the other party as awarded by the arbitrator. 
 8.3 Assignment; Binding Effect.
Neither this Agreement nor any of the rights, interests or obligations hereunder will be assigned to a third party by the Company or Purchaser (whether by operation of Law or otherwise) without the prior written consent of the other party hereto;
provided, however, Purchaser may assign this Agreement or its rights or obligations hereunder to an Affiliate of Purchaser without the consent of the Company if Purchaser and the Parent remain liable for their obligations under this Agreement and
the Guarantee, respectively. Any assignment not made in accordance with the foregoing shall be null and void. Subject to this Section 8.3, this Agreement will be binding upon and will inure to the benefit of the parties hereto and their
respective successors and assigns. Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the parties hereto or their respective heirs,
successors, executors, administrators and assigns any rights, remedies, obligations or Liabilities under or by reason of this Agreement. 
 8.4 Entire Agreement. This Agreement and the exhibits and schedules hereto, and any documents delivered by the parties in connection herewith or therewith, constitute the entire agreement between the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings (both written and oral) between the parties with respect thereto. 
 8.5 Expenses. Each party to this Agreement shall pay its own costs and expenses (including attorneys’ and accountants’ fees) incurred in connection with the negotiation, execution and performance of this Agreement.

 8.6 Amendment. This Agreement may only be amended by an instrument in writing signed by each of the Company and Purchaser.

 8.7 Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of California, without
regard to its conflict of laws principles. 
 8.8 Counterparts. This Agreement may be executed by the parties hereto in any number of
counterparts, each of which when so executed and delivered will be an original, with the same effect as if the signature thereto were upon the same instrument. Each counterpart may consist of a number of copies hereof each signed by one, but
together signed by both of the parties hereto. A facsimile copy of a signature page shall be deemed to be an original signature page. 
  

 22 

 8.9 Specific Performance. The Company and Purchaser acknowledge and agree that in the event of any
breach of this Agreement, each non-breaching party would be irreparably and immediately harmed and could not be made whole by monetary damages. Therefore, each party agrees to the granting of specific performance of this Agreement and injunctive or
other equitable relief in favor of the other party as a remedy for any such breach without proof of actual damages. The Company and Purchaser (a) hereby waive, in any action for specific performance, the defense of adequacy of a remedy at law
and any requirement for the securing or posting of any bond in connection with any such remedy and (b) shall be entitled, in addition to any other remedy to which they may be entitled at law or in equity, to compel specific performance of this
Agreement in any action instituted in accordance with this Section 8.9. The remedy provided for in this Section 8.9 shall not be deemed to be the exclusive remedy for a party’s breach of this Agreement, but shall be in addition to all
other remedies available at law or equity to the other parties. 
 8.10 Headings. Headings of the Sections of this Agreement are for
the convenience of the parties only, and will be given no substantive or interpretive effect whatsoever. 
 8.11 Interpretations. When
a reference is made in this Agreement to a Section, Exhibit or Schedule such reference will be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they will be deemed to be followed by the words “without limitation.” The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar
import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms used herein with initial capital letters have the meanings ascribed to them herein and all terms defined in
this Agreement will have such defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as
the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means
such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and
references to all attachments thereto and instruments incorporated therein. References to a Person include such Person’s permitted successors and assigns. 
 8.12 Waivers. Except as provided in this Agreement, no action taken pursuant to this Agreement, including any investigation by or on behalf of either party, will be deemed to constitute a waiver by the party
taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement. The waiver by either party hereto of a breach of any provision hereunder will not operate or be construed as a waiver of any
prior or subsequent breach of the same or any other provision hereunder. 
  

 23 

 8.13 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any
jurisdiction will, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision will be interpreted to be only so broad as is enforceable. 

8.14 WAIVER OF JURY TRIAL. SUBJECT TO THE LIMITATIONS ON COURT PROCEEDINGS OR ACTIONS SET FORTH IN SECTION 8.2 ABOVE AND TO THE EXTENT
ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 8.15 Remedies Not Cumulative; No Strict Construction. No remedy or
election under this Agreement is exclusive, but rather, to the extent permitted by applicable law, each such remedy and election is cumulative with all other remedies at law or in equity. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 
 8.16 Attorneys’
Fees. The prevailing party(ies) in any Proceeding relating to the enforcement or interpretation of this Agreement may recover from the unsuccessful party(ies) all costs, and actual attorneys’ fees (including expert witness and other
consultants’ fees and costs) relating to or arising out of (a) the Proceeding (whether or not the Proceeding proceeds to judgment), and (b) any post-judgment or post-award proceeding including one to enforce or collect any judgment or
award resulting from the Proceeding. All such judgments and awards will contain a specific provision for the recovery of all such subsequently incurred costs, expenses, and actual attorney’s fees. 
 *** 
  

 24 

 IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this
Agreement and caused the same to duly deliver this Agreement on their behalf on the day and year first written above. 
  

			
	 THE COMPANY
  
 CHARLOTTE RUSSE, INC.

		
	By:	 	/s/ Mark A. Hoffman
		 	 Name: Mark A. Hoffman
 Title: Senior Executive Vice
President and
 Chief Operating Officer

	
	 PURCHASER
  
 FOREVER 21 RETAIL, INC.

		
	By:	 	/s/ Do Won Chang
		 	 Name: Do Won Chang
 Title: President and Chief
Executive Officer

 [SIGNATURE PAGE TO PURCHASE
AGREEMENT] 

 SCHEDULE 1.1 
 INITIAL LEASED FACILITIES 
  

											
	 LOCATION
	  	LANDLORD	  	 STREET ADDRESS
	  	CITY	  	STATE	  	ZIP
	 Sherman Oaks
	  	Westfield	  	14006 Riverside Drive, Space #35	  	Sherman Oaks	  	CA	  	91423
						
	 Garden State Plaza
	  	Westfield	  	1 Garden State Plaza, Space # C-7	  	Paramus	  	NJ	  	07652
						
	 Arizona Mills
	  	Mills	  	5000 Arizona Mills Circle, Space #620	  	Tempe	  	AZ	  	85282
						
	 Mill Creek/Mall of Georgia
	  	Simon	  	3333 Buford Drive, Space #1092	  	Buford	  	GA	  	30519
						
	 Water Tower Place
	  	General Growth	  	845 North Michigan Avenue, Space #410	  	Chicago	  	IL	  	60611
						
	 Stonebriar Centre
	  	General Growth	  	2601 Preston Road, Space #1046	  	Frisco	  	TX	  	75034
						
	 Danbury Fair
	  	Macerich	  	7 Backus Avenue, Space #F110-111	  	Danbury	  	CT	  	06810
						
	 Town Ctr. @ Boca Raton
	  	Simon	  	6000 West Glades Road, Space #1031A	  	Boca Raton	  	FL	  	33431
						
	 Valley Fair
	  	Westfield	  	2855 Stevens Creek Blvd., Suite #2529	  	San Jose	  	CA	  	95050
						
	 Freehold Raceway Mall
	  	Macerich	  	3710 Route 9, Space #G-100	  	Freehold	  	NJ	  	07728
						
	 La Cumbre Plaza
	  	Macerich	  	120 South Hope Avenue, Space #F-118	  	Santa Barbara	  	CA	  	93105
						
	 Orland Square
	  	Simon	  	436 Orland Square, Space #D08	  	Orland Park	  	IL	  	60462
						
	 Miami International
	  	Simon	  	1455 NW 107 Avenue, Space #244	  	Miami	  	FL	  	33172
						
	 Chandler Fashion Center
	  	Macerich	  	3111 West Chandler Blvd., Space #1032	  	Chandler	  	AZ	  	85226
						
	 Robinson Town Centre
	  	Forest City	  	100 Robinson Centre Dr., Space #1230	  	Pittsburgh	  	PA	  	15205
						
	 Brandon Town Center
	  	Westfield	  	459 Brandon Town Center, Space #446	  	Brandon	  	FL	  	33511
						
	 Mayfair Mall
	  	General Growth	  	2500 North Mayfair Road, Space # 624	  	Wauwatosa	  	WI	  	53226
						
	 Tri-County Mall
	  	Thor	  	11700 Princeton Pike, Space D203	  	Cincinnati	  	OH	  	45246-2519
						
	 Monmouth Mall
	  	Vornado Realty
Trust	  	 1230 Monmouth Mall, Route 35,
 Space
2142/2144
	  	Monmouth	  	NJ	  	07724
						
	 Colorado Mills
	  	Mills	  	1500 W. Colfax Avenue, Space 263	  	Lakewood	  	CO	  	80401
						
	 Fox Valley
	  	Westfield	  	195 Fox Valley Center Space B9A	  	Aurora	  	IL	  	60504
						
	 Dallas Galleria
	  	General Growth	  	13350 Dallas Parkway, Space 2530	  	Dallas	  	TX	  	75240
						
	 Discover Mills
	  	Mills	  	5900 Sugarloaf Parkway, Space 242	  	Lawrenceville	  	GA	  	30043
						
	 Mall at Rockingham
	  	Simon	  	 99 Rockingham Park Boulevard,
 Space
E-127A
	  	Salem	  	NH	  	03079

  

 Schedule 1.1 

 SCHEDULE 1.2 
 ADDITIONAL LEASED FACILITIES 
  

											
	 LOCATION
	  	LANDLORD	  	 STREET ADDRESS
	  	CITY	  	STATE	  	ZIP
	 Beverly Center
	  	Taubman	  	121 North La Cienega, Space #684	  	Los Angeles	  	CA	  	90048
						
	 Palisades Center
	  	Pyramid	  	1532 Palisades Center Drive	  	West Nyack	  	NY	  	10994
						
	 Boulevard Mall
	  	General Growth	  	3570 South Maryland Parkway	  	Las Vegas	  	NV	  	89109
						
	 Mission Viejo
	  	Simon	  	624A The Shops at Mission Viejo	  	Mission Viejo	  	CA	  	92691
						
	 Florida Mall
	  	Simon	  	8001 South Orange Blossom Trail, Space #1214	  	Orlando	  	FL	  	32809
						
	 Crossgates Mall
	  	Pyramid	  	1 Crossgates Mall Road, Space #D107	  	Albany	  	NY	  	12203
						
	 Emerald Square Mall
	  	Simon	  	999 South Washington, Space #W-149	  	North Attleboro	  	MA	  	02760
						
	 Mall of America
	  	Simon	  	60 East Broadway, Space #N120	  	Bloomington	  	MN	  	55425
						
	 Woodbridge Mall
	  	General Growth	  	393 Woodbridge Center Drive	  	Woodbridge	  	NJ	  	07095
						
	 King of Prussia
	  	Simon	  	160 N. Gulph Road, Suite 2322	  	King of Prussia	  	PA	  	19406
						
	 West County Mall
	  	Westfield	  	26 West County Center, Space #1080	  	Des Peres	  	MO	  	63131
						
	 Fashion Show
	  	General Growth	  	3200 Las Vegas Blvd. So., Space # 1000	  	Las Vegas	  	NV	  	89109-2692
						
	 Woodfield Mall
	  	Taubman	  	5 Woodfield Mall, Space #102	  	Schaumburg	  	IL	  	60173
						
	 Pembroke Lakes
	  	General Growth	  	11401 Pines Blvd, Space 552	  	Pembroke Pines	  	FL	  	33026
						
	 Montgomery Mall
	  	Westfield	  	7101 Democracy Blvd, Space 2036	  	Bethesda	  	MD	  	20817
						
	 Parks Arlington
	  	General Growth	  	3811 South Cooper Street, Space 1150	  	Arlington	  	TX	  	76015
						
	 Twelve Oaks
	  	Taubman	  	27500 Novi Road, Space D265	  	Novi	  	MI	  	48377
						
	 Town Center at Cobb
	  	Simon	  	400 Ernest W. Barrett Parkway, Sp#M-12A	  	Kennesaw	  	GA	  	30144
						
	 Fair Oaks
	  	Taubman	  	11750 Fair Oaks, Sp# 127	  	Fairfax	  	VA	  	22033
						
	 Jordan Creek Town Center
	  	General Growth	  	101 Jordan Creek Parkway, Sp# 1050	  	West Des
Moines	  	IA	  	50266

  

 Schedule 1.2 

 SCHEDULE 1.1.2 
 TELEPHONE NUMBERS 
  

							
	 Provider
	  	 LOCATION
	  	 PHONE
	  	 FAX

	 AT&T
	  	Sherman Oaks	  	818-995-7688	  	818-995-0447
				
	 AT&T
	  	Beverly Center	  	310-657-2072	  	310-657-2257
				
	 AT&T
	  	Garden State Plaza	  	201-843-0477	  	201-843-8396
				
	 AT&T
	  	Arizona Mills	  	480-456-8838	  	480-456-8970
				
	 AT&T
	  	Palisades Center	  	845-348-9801	  	845-348-0826
				
	 AT&T
	  	Boulevard Mall	  	702-650-6521	  	702-650-6567
				
	 AT&T
	  	Mill Creek/Mall of Georgia	  	678-482-7114	  	678-482-7117
				
	 AT&T
	  	Water Tower Place	  	312-867-0220	  	312-867-0232
				
	 AT&T
	  	Mission Viejo	  	949-364-2001	  	949-364-2005
				
	 AT&T
	  	Florida Mall	  	407-854-9969	  	407-854-9975
				
	 Aubeta
	  	Crossgates Mall	  	518-452-7054	  	518-464-9534
				
	 Aubeta
	  	Stonebriar Centre	  	972-668-0375	  	972-668-0377
				
	 AT&T
	  	Emerald Square Mall	  	508-695-7744	  	508-695-9735
				
	 AT&T
	  	Danbury Fair	  	203-207-9999	  	203-798-9278
				
	 Aubeta
	  	Town Ctr. @ Boca Raton	  	561-394-0281	  	561-394-3078
				
	 Aubeta
	  	Valley Fair	  	408-416-0005	  	408-416-0034
				
	 AT&T
	  	Freehold Raceway Mall	  	732-625-8201	  	732-625-8203
				
	 Aubeta
	  	La Cumbre Plaza	  	805-569-5799	  	805-569-5539
				
	 Aubeta
	  	Mall of America	  	952-883-0200	  	952-883-0272
				
	 AT&T
	  	Orland Square	  	708-349-9840	  	708-349-9825
				
	 AT&T
	  	Miami International	  	305-594-4441	  	305-594-4460
				
	 AT&T
	  	Chandler Fashion Center	  	480-786-4924	  	480-786-4874
				
	 AT&T
	  	Robinson Town Centre	  	412-787-0211	  	412-787-0616
				
	 AT&T
	  	Woodbridge Mall	  	732-726-8700	  	732-726-1913
				
	 AT&T
	  	King of Prussia	  	610-992-9676	  	610-992-9351
				
	 Aubeta
	  	Brandon Town Center	  	813-643-4276	  	813-643-6128
				
	 AT&T
	  	West County Mall	  	314-966-6166	  	314-966-5005
				
	 AT&T
	  	Fashion Show	  	702-732-0478	  	702-732-2149
				
	 AT&T
	  	Mayfair Mall	  	414-302-0109	  	414-302-0120
				
	 Aubeta
	  	Woodfield Mall	  	847-619-5879	  	847-619-3497
				
	 Aubeta
	  	Tri-County Mall	  	513-671-1972	  	513-671-2691
				
	 AT&T
	  	Monmouth Mall	  	732-542-8324	  	732-542-8326
				
	 Aubeta
	  	Pembroke Lakes	  	954-431-1232	  	954-431-2517
				
	 AT&T
	  	Colorado Mills	  	303-271-1220	  	303-271-1167
				
	 AT&T
	  	Fox Valley	  	630-375-0776	  	630-375-5891
				
	 AT&T
	  	Montgomery Mall	  	301-767-8928	  	301-767-0655
				
	 AT&T
	  	Parks Arlington	  	817-557-3317	  	817-557-6852
				
	 Aubeta
	  	Dallas Galleria	  	972-980-6556	  	972-980-8246
				
	 Aubeta
	  	Discover Mills	  	678-847-6480	  	678-847-6482
				
	 AT&T
	  	Twelve Oaks	  	248-348-4648	  	248-348-4665
				
	 AT&T
	  	Town Center at Cobb	  	678-331-1615	  	678-331-1617
				
	 Aubeta
	  	Fair Oaks	  	703-591-7822	  	703-591-7824
				
	 AT&T
	  	Jordan Creek Town Center	  	515-221-9173	  	515-221-9175
				
	 AT&T
	  	Mall at Rockingham	  	603-893-5891	  	603-893-3278

  

 Schedule 1.2.1 

 SCHEDULE 3.7 
 REQUIRED CONSENTS 
  

			
	 LOCATION
	  	 LANDLORD CONSENT

	 Sherman Oaks
	  	Westfield
		
	 Beverly Center
	  	Taubman
		
	 Garden State Plaza
	  	Westfield
		
	 Arizona Mills
	  	Mills
		
	 Palisades Center
	  	Pyramid
		
	 Boulevard Mall
	  	General Growth
		
	 Mill Creek/Mall of Georgia
	  	Simon
		
	 Water Tower Place
	  	General Growth
		
	 Mission Viejo
	  	Simon
		
	 Florida Mall
	  	Simon
		
	 Crossgates Mall
	  	Pyramid
		
	 Stonebriar Centre
	  	General Growth
		
	 Emerald Square Mall
	  	Simon
		
	 Danbury Fair
	  	Macerich
		
	 Town Ctr. @ Boca Raton
	  	Simon
		
	 Valley Fair
	  	Westfield
		
	 Freehold Raceway Mall
	  	Macerich
		
	 La Cumbre Plaza
	  	Macerich
		
	 Mall of America
	  	Simon
		
	 Orland Square
	  	Simon
		
	 Miami International
	  	Simon
		
	 Chandler Fashion Center
	  	Macerich
		
	 Robinson Town Centre
	  	Forest City
		
	 Woodbridge Mall
	  	General Growth
		
	 King of Prussia
	  	Simon
		
	 Brandon Town Center
	  	Westfield
		
	 West County Mall
	  	Westfield
		
	 Fashion Show
	  	General Growth
		
	 Mayfair Mall
	  	General Growth
		
	 Woodfield Mall
	  	Taubman
		
	 Tri-County Mall
	  	Thor
		
	 Monmouth Mall
	  	Vornado Realty Trust
		
	 Pembroke Lakes
	  	General Growth
		
	 Colorado Mills
	  	Mills
		
	 Fox Valley
	  	Westfield
		
	 Montgomery Mall
	  	Westfield
		
	 Parks Arlington
	  	General Growth
		
	 Dallas Galleria
	  	General Growth
		
	 Discover Mills
	  	Mills
		
	 Twelve Oaks
	  	Taubman
		
	 Town Center at Cobb
	  	Simon
		
	 Fair Oaks
	  	Taubman
		
	 Jordan Creek Town Center
	  	General Growth
		
	 Mall at Rockingham
	  	Simon

  

 Schedule 3.7 

 SCHEDULE 3.10.1 
 LEASE EXCEPTIONS 
 None. 
  

 Schedule 3.10.1 

 SCHEDULE 5.1.1 
 EXCLUDED RAMPAGE STORE EMPLOYEES 
  

					
	 State
	  	 Name – Full
	  	 Job Code Description

	 CA
	  	PADUA, CHEVETTE B.	  	SENIOR ASSOCIATE
			
	 CA
	  	COPPOLINO, LAUREN J.	  	ASSOCIATE STORE
			
	 NJ
	  	CARVALHO, TERESA G.	  	ASSOCIATE STORE
			
	 AZ
	  	COLADONATO, NICOLE	  	STORE MANAGER
			
	 AZ
	  	DE FENZA, CHRISTINA E.	  	ASST STORE MANAGER
			
	 AZ
	  	VALLEJO, KELLY	  	STORE MANAGER
			
	 AZ
	  	HAWKINS, MELISSA S.	  	STORE MANAGER
			
	 IL
	  	BECK, AMANDA C.	  	ASSOCIATE STORE
			
	 IL
	  	CORTESE, JESSICA J.	  	ASSOCIATE STORE
			
	 TX
	  	KOMINIAK, CRYSTAL M.	  	STORE MANAGER
			
	 CT
	  	ASHLEY, NICOLE M.	  	STORE MANAGER
			
	 CT
	  	SALAS, EVELYN	  	SENIOR ASSOCIATE
			
	 FL
	  	DAMICO, SHANNONROSE	  	ASSOCIATE STORE
			
	 CA
	  	SIERRA, ELIZABETH	  	STORE MANAGER
			
	 CA
	  	DIEP, MY T.	  	ASSOCIATE STORE
			
	 CA
	  	AMES, AMY N.	  	ASSOCIATE STORE
			
	 NJ
	  	JACKSON, ROSA	  	STORE MANAGER
			
	 IL
	  	VELASCO, MELISSA A.	  	SENIOR ASSOCIATE
			
	 FL
	  	ROMERO, DAVID P.	  	SENIOR ASSOCIATE
			
	 AZ
	  	DE CARVALHO, CARLA A.	  	STORE MANAGER
			
	 AZ
	  	RIOS, EVA E.	  	STORE MANAGER
			
	 AZ
	  	MOLCZAN, LINDA	  	ASSOCIATE STORE
			
	 PA
	  	EDWARDS, KRISTY A.	  	ASSOCIATE STORE
			
	 PA
	  	HENDRIX, JENNIFER M.	  	ASSOCIATE STORE
			
	 PA
	  	TOTH, TRACY E.	  	ASSOCIATE STORE
			
	 PA
	  	REYES, SHANNON K.	  	ASSOCIATE STORE
			
	 OH
	  	SWENSON, LINDSAY M.	  	STORE MANAGER
			
	 OH
	  	CRUZ, ANNA M.	  	SENIOR ASSOCIATE
			
	 OH
	  	MC ELROY, HEATHER L.	  	ASSOCIATE STORE
			
	 NJ
	  	VITUCCI, ANGELA M.	  	STORE MANAGER
			
	 NJ
	  	CANO, MICHELLE Y.	  	STORE MANAGER
			
	 NJ
	  	BURTON, JULIENNE D.	  	STORE MANAGER
			
	 NJ
	  	LARA, VANESSA	  	ASSOCIATE STORE
			
	 NY
	  	MILES, LINDSEY A.	  	SENIOR ASSOCIATE
			
	 CO
	  	BOWENS, RACQUEL C.	  	STORE MANAGER
			
	 CO
	  	MARTIN, AMY D.	  	SENIOR ASSOCIATE
			
	 IL
	  	BARTKUTE, EVELINA	  	ASSOCIATE STORE
			
	 IL
	  	FULTON, KELLEIGH	  	ASSOCIATE STORE
			
	 GA
	  	MARSH, JESSICA D.	  	ASSOCIATE STORE
			
	 NH
	  	SCROCCA, JODI S.	  	STORE MANAGER
			
	 NH
	  	HUDSON, ASHLEY M.	  	ASSOCIATE STORE
			
	 NH
	  	WESTMORE, JENNIFER M.	  	ASSOCIATE STORE

  

 Schedule 5.1.1 

 EXHIBIT A 
 DEFINITIONS 
 “Actions” means any claim, action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, investigative or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought, conducted or
heard by or before, or otherwise involving, any Governmental Entity or any arbitrator or arbitration panel. 
 “Acquired
Assets” has the meaning set forth in Section 1.1 of this Agreement. 
 “Additional Leased Facilities” or
“Additional Leased Facility” has the meaning set forth in the third “Whereas” clause to this Agreement. 
 “Affiliate” of any Person means any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first Person; and, for the purposes of
this definition only, “control” (including the terms “controlling”, “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct
or cause the direction of the management, policies or activities of a Person whether through the ownership of securities, by contract or agency or otherwise. 
 “Agreement” has the meaning set forth in the introduction to this Agreement. 
 “Apportioned Items” has the meaning set forth in Section 1.6.4. 
 “Approval Costs” means any
fees, costs, penalties, expenses or other consideration required by landlords or any other party to any Assumed Contract in connection with such party’s execution and delivery of a Required Consent with respect to such Assumed Contract.

 “Assumed Contracts” has the meaning set forth in Section 1.1.2. 
 “Assumed Liabilities” has the meaning set forth in Section 1.4. 
 “Business Day” means any day, other than a Saturday, Sunday or legal holiday (as defined in Rule 9006(a) of the Federal Rules of
Bankruptcy Procedure). 
 “Claim” has the meaning set forth in Section 7.1.5. 
 “Claim Notice” has the meaning set forth in Section 7.1.5. 
 “COBRA” means Consolidated Omnibus Budget Reconciliation Act of 1986, as amended. 
 “Company” has the meaning set forth in the introduction to this Agreement. 
  

 Exhibit A 

 “Company Contract Breach” means any breach or default of a Lease which may occur before
or after the Initial Effective Date or the Second Effective Date, as the case may be; provided that the breach or default arises out of or relates to any action or failure to act by the Company which initially occurred on or before such Effective
Date, even though the actions or failure to act may continue after such Effective Date.  
 “Company Transfer
Deliveries” has the meaning set forth in Section 2.2.2. 
 “Company Transfer Obligations” has the meaning set
forth in Section 1.2.2. 
 “Damages” means demands, claims, actions or causes of action, assessments, losses, damages,
liabilities, obligations, costs and expenses (including without limitation reasonable fees and expenses of counsel). 
 “Designated
Party” has the meaning set forth in Section 7.3.1. 
 “Effective Date” has the meaning set forth in
Section 2.1.5. 
 “Employee Obligations” means any Liabilities to Rampage Store Employees arising or accruing on or
prior to the Initial Effective Date or the Second Effective Date, as the case may be, including wages, payment for accrued but unused vacations (regardless of whether the applicable Company policy provides for such payment), workers’
compensation, employee benefits, Liabilities under any collective bargaining agreement, Liabilities under any Plan, Liabilities under the WARN Act, workers’ compensation Liabilities, Liabilities arising under the COBRA, severance, retention and
bonus payments, withholding and reporting obligations, all Laws relating to the employment of labor and the employer’s share of payroll or other employment taxes and all other obligations arising under applicable Law. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “Escrow Agent” has the meaning set forth in Section 1.9. 
 “Escrow Agreement” has the meaning set forth in Section 1.9. 
 “Escrowed Funds” has the meaning set forth in Section 1.9. 
 “Excluded Assets” has the meaning set forth in Section 1.3. 
 “Excluded Representations” has the meaning set forth in Section 7.1.2. 
 “Execution Date” has the meaning set forth in the introduction to this Agreement. 
 “Expiration Date” has the meaning set forth in Section 7.1.2. 
 “FF&E” has the meaning set forth in the first “Whereas” clause to this Agreement. 
 “Good Faith Deposit” means the amount of Two Hundred and Fifty Thousand Dollars ($250,000) deposited with the Company by Purchaser on or
about May 4, 2006 pursuant to the terms of that certain Letter of Intent dated April 28, 2006 between the Company and Purchaser. 
  

 Exhibit A 

 “Governmental Entity” shall mean any (a) nation, principality, state, commonwealth,
province, territory, county, municipality, district or other jurisdiction of any nature, (b) federal, state, local, municipal, foreign or other government, (c) governmental or quasi-governmental authority of any nature (including any
governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or Entity and any court or other tribunal),
(d) multi-national organization or body or (e) individual, Entity or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.

 “Guarantee” has the meaning set forth in Section 1.9. 
 “Hazardous Substance” means any material presently listed, defined, designated or classified as hazardous, toxic or radioactive, under
any federal, state or local law, statute, ordinance, rule, regulation or code, and any license, permit, authorization or court order, judgment, decree or injunction to which the Company or the Acquired Assets is subject related to the use, storage,
recycling, treatment, generation, transportation, processing, handling, labeling, production, release or disposal of pollutants or toxic or hazardous substances, including without limitation the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, 42 U.S.C. Section 9601, et seq.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901, et seq.; the Clean Air Act, as amended, 42 U.S.C. Section 7401, et seq.; the Federal Water
Pollution Control Act, as amended, 33 U.S.C. Section 1251, et seq.; the Toxic Substances Control Act, as amended, 125 U.S.C. Section 1251, et seq.; the Emergency Planning and Community Right to Know Act, 42 U.S.C. Section 11001, et
seq.; and the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq., whether by type or by quantity, and petroleum or any derivative or by-product thereof. 
 “Indemnitee” means the party seeking indemnification pursuant to Section 7. 
 “Indemnitor” means the party against whom indemnification is sought pursuant to Section 7. 
 “Individual Store Purchase Price” means the purchase price in the amount of Three Hundred and Twenty Five Thousand Dollars and no Cents ($325,000.00) for each Rampage Store and related FF&E acquired by Purchaser
pursuant to this Agreement. 
 “Initial Effective Date” has the meaning set forth in Section 2.1.1. 
 “Initial Effective Date Company Transfer Deliveries” has the meaning set forth in Section 2.2.1. 
 “Initial Leased Facilities” or “Initial Leased Facility” has the meaning set forth in the second “Whereas”
clause to this Agreement. 
 “Knowledge” means (a) as to Purchaser, the knowledge of the officers of Purchaser and
(b) as to the Company, the knowledge of the officers of the Company. 
 “Landlord’s Assignment and Consent” has
the meaning set forth in Section 2.2.1(iv). 
 “Law” means any domestic or foreign statute, rule, regulation or other
legal requirement. 
  

 Exhibit A 

 “Leased Facilities” or “Leased Facility” has the meaning set forth in
the third “Whereas” clause to this Agreement. 
 “Leases” has the meaning set forth in Section 1.1.1.

 “Liability” shall mean any debt, commitment, obligation, duty or liability of any nature (including any unknown,
undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, potential, implied, vicarious, derivative, joint, several or secondary liability), regardless of whether such debt, obligation, duty or liability would be required to
be disclosed on a balance sheet prepared in accordance with generally accepted accounting principles and regardless of whether such debt, obligation, duty or liability is immediately due and payable; including without limitation those arising under
common law, statute, contract or otherwise. 
 “Licenses and Permits” means all (a) permits, licenses, certificates,
franchises, concessions, approvals, consents, ratifications, permissions, clearances, confirmations, endorsements, waivers, certifications, designations, ratings, registrations, qualifications or authorizations issued, granted, given or otherwise
made available by or under the authority of any Governmental Entity or pursuant to any Law or legal requirement or (b) right under any contract with any Governmental Entity which relate to, or are necessary to conduct Company’s business at
the Leased Facilities or to own the Acquired Assets. 
 “Liens” shall mean any mortgage, pledge, hypothecation, claim,
security interest, encumbrance, lease, sublease, license, occupancy agreement, adverse claim or interest, easement, covenant, encroachment, title defect, title retention agreement, voting trust agreement, equity, option, lien, right of first
refusal, charge or other restrictions or limitations of any nature whatsoever. 
 “Order” shall mean any (a) order,
judgment, injunction, edict, decree, ruling, pronouncement, determination, decision, opinion, verdict, sentence, subpoena, writ or award issued, made, entered, rendered or otherwise put into effect by or under the authority of any court,
administrative agency or other Governmental Entity or any arbitrator or arbitration panel in connection with any Proceeding or (b) contract with any Governmental Entity entered into in connection with any Proceeding. 
 “Parent” shall have the mean set forth in the introduction to this Agreement. 
 “Person” means a natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Entity or other entity or organization. 
 “Plan” means each
deferred compensation and each bonus or other incentive compensation, stock purchase, stock option and other equity compensation plan, program, agreement or arrangement; each severance or termination pay, medical; surgical, hospitalization, life
insurance and other “welfare” plan, fund or program (within the meaning of Section 3(1) of ERISA); each profit-sharing, stock bonus or other “pension” plan, fund or program (within the meaning of Section 3(2) of ERISA);
each employment, termination, retention or severance plan, agreement or arrangement; and each other employee benefit plan, fund, program, agreement or arrangement, in each case, that is sponsored, maintained or contributed to or required to be
contributed to by the Company or an ERISA Affiliate, that together with the Company would be deemed a “single employer” within the meaning of Section 4001(b) of ERISA, or to which the Company or an ERISA Affiliate is party, whether
written or oral, for the benefit of any employee or former employee of the Company or any former Subsidiary of the Company. 
  

 Exhibit A 

 “Proceeding” means any litigation, arbitration, bankruptcy, insolvency or other
proceeding. 
 “Purchase Price” has the meaning set forth in Section 1.2. 
 “Purchaser” has the meaning set forth in the introduction to this Agreement. 
 “Rampage Stores” has the meaning set forth in the first “Whereas” clause to this Agreement. 
 “Rampage Store Employees” means any past or current employee of the Company employed at the Leased Facilities on or prior to the Initial
Effective Date or the Second Effective Date, as the case may be. 
 “Required Consents” has the meaning set forth in
Section 3.7. 
 “Retained Liabilities” has the meaning set forth in Section 1.5. 
 “Second Effective Date” has the meaning set forth in Section 2.1.2. 
 “Second Effective Date Company Transfer Deliveries” has the meaning set forth in Section 2.2.2. 
 “Tax” or “Taxes” means any taxes, including all Federal, state, local, foreign and other income, gross receipts,
franchise, capital stock, royalty, withholding, payroll, social security, unemployment, disability, real property, personal property, sales, use, ad valorem, excise, transfer, profits, license, customs, estimated, severance, stamp, occupation and
any other taxes, including any interest, penalties or additions on or to the foregoing. 
 “Third Parties” means any Person
other than the Company, Purchaser or any of their respective Affiliates. 
 “Third Party Recoveries” has the meaning set
forth in Section 7.2.3. 
 “Transaction Documents” means this Agreement, the Exhibits attached hereto, the Schedules
delivered pursuant hereto, the items delivered on the applicable Effective Date pursuant to Sections 2.2.1(ii) through 2.2.1(vi) or 2.2.2(ii) through 2.2.2(vi), as applicable. 
 “Transferred Books and Records” has the meaning set forth in Section 1.1.5. 
 “WARN Act” means the Worker Adjustment and Retraining Notification Act of 1988, as amended, and any similar Law relating to plant
closings and layoffs. 
  

 Exhibit A 

 EXHIBIT B 
 RAMPAGE STORES 
  

											
	 LOCATION
	  	LANDLORD	  	 STREET ADDRESS
	  	CITY	  	STATE	  	ZIP
	 Sherman Oaks
	  	Westfield	  	14006 Riverside Drive, Space #35	  	Sherman Oaks	  	CA	  	91423
						
	 Beverly Center
	  	Taubman	  	121 North La Cienega, Space #684	  	Los Angeles	  	CA	  	90048
						
	 Garden State Plaza
	  	Westfield	  	1 Garden State Plaza, Space # C-7	  	Paramus	  	NJ	  	07652
						
	 Arizona Mills
	  	Mills	  	5000 Arizona Mills Circle, Space #620	  	Tempe	  	AZ	  	85282
						
	 Palisades Center
	  	Pyramid	  	1532 Palisades Center Drive	  	West Nyack	  	NY	  	10994
						
	 Boulevard Mall
	  	General Growth	  	3570 South Maryland Parkway	  	Las Vegas	  	NV	  	89109
						
	 Mill Creek/Mall of Georgia
	  	Simon	  	3333 Buford Drive, Space #1092	  	Buford	  	GA	  	30519
						
	 Water Tower Place
	  	General Growth	  	845 North Michigan Avenue, Space #410	  	Chicago	  	IL	  	60611
						
	 Mission Viejo
	  	Simon	  	624A The Shops at Mission Viejo	  	Mission Viejo	  	CA	  	92691
						
	 Florida Mall
	  	Simon	  	8001 South Orange Blossom Trail, Space #1214	  	Orlando	  	FL	  	32809
						
	 Crossgates Mall
	  	Pyramid	  	1 Crossgates Mall Road, Space #D107	  	Albany	  	NY	  	12203
						
	 Stonebriar Centre
	  	General Growth	  	2601 Preston Road, Space #1046	  	Frisco	  	TX	  	75034
						
	 Emerald Square Mall
	  	Simon	  	999 South Washington, Space #W-149	  	North Attleboro	  	MA	  	02760
						
	 Danbury Fair
	  	Macerich	  	7 Backus Avenue, Space #F110-111	  	Danbury	  	CT	  	06810
						
	 Town Ctr. @ Boca Raton
	  	Simon	  	6000 West Glades Road, Space #1031A	  	Boca Raton	  	FL	  	33431
						
	 Valley Fair
	  	Westfield	  	2855 Stevens Creek Blvd., Suite #2529	  	San Jose	  	CA	  	95050
						
	 Freehold Raceway Mall
	  	Macerich	  	3710 Route 9, Space #G-100	  	Freehold	  	NJ	  	07728
						
	 La Cumbre Plaza
	  	Macerich	  	120 South Hope Avenue, Space #F-118	  	Santa Barbara	  	CA	  	93105
						
	 Mall of America
	  	Simon	  	60 East Broadway, Space #N120	  	Bloomington	  	MN	  	55425
						
	 Orland Square
	  	Simon	  	436 Orland Square, Space #D08	  	Orland Park	  	IL	  	60462
						
	 Miami International
	  	Simon	  	1455 NW 107 Avenue, Space #244	  	Miami	  	FL	  	33172
						
	 Chandler Fashion Center
	  	Macerich	  	3111 West Chandler Blvd., Space #1032	  	Chandler	  	AZ	  	85226
						
	 Robinson Town Centre
	  	Forest City	  	100 Robinson Centre Dr., Space #1230	  	Pittsburgh	  	PA	  	15205
						
	 Woodbridge Mall
	  	General Growth	  	393 Woodbridge Center Drive	  	Woodbridge	  	NJ	  	07095
						
	 King of Prussia
	  	Simon	  	160 N. Gulph Road, Suite 2322	  	King of Prussia	  	PA	  	19406
						
	 Brandon Town Center
	  	Westfield	  	459 Brandon Town Center, Space #446	  	Brandon	  	FL	  	33511
						
	 West County Mall
	  	Westfield	  	26 West County Center, Space #1080	  	Des Peres	  	MO	  	63131
						
	 Fashion Show
	  	General Growth	  	3200 Las Vegas Blvd. So., Space # 1000	  	Las Vegas	  	NV	  	89109-2692
						
	 Mayfair Mall
	  	General Growth	  	2500 North Mayfair Road, Space # 624	  	Wauwatosa	  	WI	  	53226
						
	 Woodfield Mall
	  	Taubman	  	5 Woodfield Mall, Space #102	  	Schaumburg	  	IL	  	60173
						
	 Tri-County Mall
	  	Thor	  	11700 Princeton Pike, Space D203	  	Cincinnati	  	OH	  	45246-2519
						
	 Monmouth Mall
	  	Vornado Realty
Trust	  	1230 Monmouth Mall, Route 35, Space 2142/2144	  	Monmouth	  	NJ	  	07724
						
	 Pembroke Lakes
	  	General Growth	  	11401 Pines Blvd, Space 552	  	Pembroke Pines	  	FL	  	33026

  

 Exhibit B 

											
	 LOCATION
	  	LANDLORD	  	 STREET ADDRESS
	  	CITY	  	STATE	  	ZIP
	 Colorado Mills
	  	Mills	  	1500 W. Colfax Avenue, Space 263	  	Lakewood	  	CO	  	80401
						
	 Fox Valley
	  	Westfield	  	195 Fox Valley Center Space B9A	  	Aurora	  	IL	  	60504
						
	 Montgomery Mall
	  	Westfield	  	7101 Democracy Blvd, Space 2036	  	Bethesda	  	MD	  	20817
						
	 Parks Arlington
	  	General Growth	  	3811 South Cooper Street, Space 1150	  	Arlington	  	TX	  	76015
						
	 Dallas Galleria
	  	General Growth	  	13350 Dallas Parkway, Space 2530	  	Dallas	  	TX	  	75240
						
	 Discover Mills
	  	Mills	  	5900 Sugarloaf Parkway, Space 242	  	Lawrenceville	  	GA	  	30043
						
	 Twelve Oaks
	  	Taubman	  	27500 Novi Road, Space D265	  	Novi	  	MI	  	48377
						
	 Town Center at Cobb
	  	Simon	  	 400 Ernest W. Barrett Parkway,
 Sp#M-12A
	  	Kennesaw	  	GA	  	30144
						
	 Fair Oaks
	  	Taubman	  	11750 Fair Oaks, Sp# 127	  	Fairfax	  	VA	  	22033
						
	 Jordan Creek Town Center
	  	General Growth	  	101 Jordan Creek Parkway, Sp# 1050	  	West Des
Moines	  	IA	  	50266
						
	 Mall at Rockingham
	  	Simon	  	99 Rockingham Park Boulevard, Space E-127A	  	Salem	  	NH	  	03079

  

 Exhibit B 

 EXHIBIT C 
 ASSUMED CONTRACTS 
 None. 
  

 Exhibit C

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