Document:

Exhibit 10.2

 Exhibit 10.2 
 CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. THE OMITTED NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE COMMISSION. 
 Execution Copy 
 AMENDED AND RESTATED MERCHANT AGREEMENT 
 BETWEEN 
 ROOMSTORE, INC.

 AND 
 HSBC BANK
NEVADA, NATIONAL ASSOCIATION 
 Dated as of September 1, 2005 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1 - DEFINITIONS	  	5
	 Section 1.1
	  	Definitions	  	5
		
	ARTICLE 2 - ESTABLISHMENT OF PROGRAM AND PROGRAM ECONOMICS	  	6
	 Section 2.1
	  	General Parameters	  	6
	 Section 2.2
	  	Amendment Compensation Payment	  	6
	 Section 2.3
	  	Promotional Credit Plan Discounts	  	7
	 Section 2.4
	  	Credit Review; Ownership of Accounts	  	7
	 Section 2.5
	  	Exclusive Relationship	  	8
		
	ARTICLE 3 - MARKETING	  	8
	 Section 3.1
	  	Promotion of Program	  	8
	 Section 3.2
	  	Card Promotions, Services and Enhancements	  	8
	 Section 3.3
	  	Web Sites	  	8
		
	ARTICLE 4 - ACCOUNT TERMS	  	9
	 Section 4.1
	  	Cardholder Account Terms and Conditions	  	9
		
	ARTICLE 5 - OPERATIONAL RESPONSIBILITIES	  	9
	 Section 5.1
	  	Consumer Transactions	  	9
	 Section 5.2
	  	Surcharges and Differential Treatment	  	9
	 Section 5.3
	  	Forms and Cards	  	9
	 Section 5.4
	  	Applications	  	9
	 Section 5.5
	  	Sales Slips	  	10
	 Section 5.6
	  	Credit Slips	  	11
	 Section 5.7
	  	Acceptance, Offset and Funding	  	11
	 Section 5.8
	  	Cardholder Payments and Endorsement	  	12
	 Section 5.9
	  	Written Complaints	  	12
	 Section 5.10
	  	Operating Instructions	  	12
	 Section 5.11
	  	Facsimile and E-Mail Communication	  	13
	 Section 5.12
	  	Merchant Business Practices	  	13
	 Section 5.13
	  	Presentation of Sales Slip or Credit Slips	  	13
		
	ARTICLE 6 - CHARGEBACKS TO MERCHANT	  	13
	 Section 6.1
	  	Right to Chargeback	  	13
	 Section 6.2
	  	Fraud Chargeback Exception	  	14
	 Section 6.3
	  	Resolution and Payment	  	14
		
	ARTICLE 7 - TRANSMISSION AND RECORDS	  	15
	 Section 7.1
	  	Transmission of Data	  	15
	 Section 7.2
	  	Receipt of Transmission	  	15
	 Section 7.3
	  	Records	  	15

  

 2 

					
	ARTICLE 8 - HSBC REPRESENTATIONS AND WARRANTIES	  	16
	 Section 8.1
	  	General Representations and Warranties	  	16
		
	ARTICLE 9 - MERCHANT REPRESENTATIONS AND WARRANTIES	  	16
	 Section 9.1
	  	General Representations and Warranties	  	16
	 Section 9.2
	  	Representations and Warranties Regarding Card Sales and Applications	  	16
		
	ARTICLE 10 - INDEMNIFICATION	  	17
	 Section 10.1
	  	Indemnification by Merchant	  	17
	 Section 10.2
	  	Indemnification by HSBC	  	17
	 Section 10.3
	  	Notice of Claim	  	17
		
	ARTICLE 11 - TERM AND TERMINATION	  	18
	 Section 11.1
	  	Term	  	18
	 Section 11.2
	  	Termination	  	18
	 Section 11.3
	  	Duties and Rights Upon Termination	  	19
	 Section 11.4
	  	Purchase Requirements	  	19
	 Section 11.5
	  	Survival	  	19
		
	ARTICLE 12 - HOLDBACK	  	19
	 Section 12.1
	  	Holdback	  	19
		
	ARTICLE 13 - MISCELLANEOUS	  	20
	 Section 13.1
	  	Merchant Financial information	  	20
	 Section 13.2
	  	Securitization	  	20
	 Section 13.3
	  	Limited License	  	20
	 Section 13.4
	  	Material Inducement	  	21
	 Section 13.5
	  	Confidentiality	  	21
	 Section 13.6
	  	Information Security	  	21
	 Section 13.7
	  	Privacy	  	21
	 Section 13.8
	  	Reports; Examination Rights	  	22
	 Section 13.9
	  	OCC Examinations	  	22
	 Section 13.10
	  	Merchant’s Agents	  	22
	 Section 13.11
	  	Change in Ownership	  	22
	 Section 13.12
	  	Nonwaiver	  	22
	 Section 13.13
	  	Status of the Parties	  	22
	 Section 13.14
	  	Force Majeure	  	23
	 Section 13.15
	  	Additional Products and Services	  	23
	 Section 13.16
	  	Notices	  	23
	 Section 13.17
	  	Amendments and Supplementary Documents	  	23
	 Section 13.18
	  	Assignment	  	23
	 Section 13.19
	  	Nonwaiver and Extensions	  	24
	 Section 13.20
	  	Rights of Persons Not a Party	  	24
	 Section 13.21
	  	Section Headings	  	24
	 Section 13.22
	  	Integrations	  	24
	 Section 13.23
	  	Governing Law/Severability	  	24
	 Section 13.24
	  	Jurisdiction	  	24
	 Section 13.25
	  	WAIVER OF JURY TRIAL	  	24

  

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 AMENDED AND RESTATED CREDIT CARD PROGRAM AGREEMENT 
 This Amended and Restated Credit Card Program Agreement (“Agreement”) is made and entered into as of the 1 day of Sept., 2005
(“Effective Date”), by and between HSBC Bank Nevada, N.A., (“HSBC”), with its principal place of business at 1111 Town Center Drive, Las Vegas, NV 89144 and RoomStore, Inc. a Virginia corporation (“Merchant”), with its
principal place of business at 12501 Patterson Avenue, Richmond, Virginia 23238. 
 WHEREAS, Beneficial National Bank USA (“Beneficial”) and HMY Roomstore, Inc.1 (“HMY”) entered into a Merchant Agreement
(“the First Beneficial Contract”) dated January 12, 1998. 
 WHEREAS, Beneficial and HMY d/b/a/ The HUB Furniture Centers
entered into a Merchant Agreement (“the Second Beneficial Contract”) dated February 2, 1998. 
 WHEREAS, on or about
June 1, 1998, Beneficial and HMY amended the First Beneficial Contract to amend the correct name of HMY and other terms and conditions. 
 WHEREAS, on or about October 16, 1998, Beneficial and HMY amended the Second Beneficial Contract in a manner that the Second Beneficial Contract would be in full force and effect for all of HMY’s businesses, not just those doing
business as “The Hub”. 
 WHEREAS, on or about May 10, 1999 Beneficial
assigned its rights and obligations under the Second Beneficial Contract to its successor-in-interest, Household Bank (SB), N.A,2
(“Household”) 
 WHEREAS, on or about October 15, 2001 and in May, 2002, Household and HMY further amended the Second
Beneficial Contract. 
 WHEREAS, on March 1, 2005, Household Bank (SB), N.A. was renamed “HSBC Bank Nevada, N.A.” 

WHEREAS, on or about May 25, 2005 HMY was renamed “RoomStore, Inc.” 
 WHEREAS, Merchant and HSBC desire to formally amend and restate the Second Beneficial Contract, the amendments thereto, and new terms and conditions as
part of this Agreement which will supersede any and all of the previous agreements between the parties except for the obligations and duties which arose prior to the Effective Date of this Agreement. 
 THEREFORE, In consideration of the mutual promises, covenants, and agreements set forth below and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Merchant and HSBC agree as follows: 
  

	 1
	 “HMY Roomstore, Inc.” was inadvertently misspelled in the Beneficial Contract as “H Y Roomstore,
Inc.” 

  

	 2
	 Beneficial was later merged into Household Bank (SB), N.A. in 2002. 

  

 4 

 ARTICLE 1 - DEFINITIONS 
 Section 1.1 Definitions. 
 In addition to the words and phrases defined above, the following words and phrases shall have the following
meanings: 
  

	(a)	“Account” means a private label revolving credit card account established by HSBC for the Cardholder to be used by the Cardholder to finance the purchase of Goods
from Merchant pursuant to the terms of the Cardholder Agreement. 

  

	(b)	“Affiliate” means any entity that is owned by, owns, or is under common control with, a party or its ultimate parent. 

  

	(c)	“Amendment Compensation Payment” shall have the meaning set forth in Section 2.2. 

  

	(d)	“Applicable Law” means collectively or individually any applicable law, rule, regulation or judicial, governmental or administrative order, decree, ruling, opinion
or interpretation. 

  

	(e)	“APR” means annual percentage rate. 

  

	(f)	“Authorization” means permission from HSBC to make a Card Sale. 

  

	(g)	“Authorization Center” means the facility designated by HSBC as the facility to provide authorization to Merchant to make Card Sales. 

  

	(h)	“Base LIBOR” means 3.20%. 

  

	(i)	“Business Day” means any day except Saturday or Sunday or a day on which banks are closed in the State of Nevada. 

  

	(j)	“Card” means the private label credit card issued by HSBC for the Program. 

  

	(k)	“Cardholder” means (i) the person in whose name an Account is opened, and (ii) any other authorized users of the Account and Card.

  

	(l)	“Cardholder Agreement” means as to any Account, the related agreement between the Cardholder and HSBC, governing the terms and conditions of such Account, as such
agreement may be amended from time to time by HSBC. 

  

	(m)	“Card Sale” means any sale of Goods that Merchant makes to a Cardholder pursuant to this Agreement and the Cardholder Agreement that is charged to an Account.

  

	(n)	“Chargeback” means the return to Merchant and reimbursement to HSBC of a Sales Slip or Card Sale for which Merchant was previously paid pursuant to Section 5.7
and Article 7. 

  

	(o)	“Charge Transaction Data” means all transaction information, with regard to each Card Sale of Goods and Services by a Cardholder and each return of Goods and
Services for credit on an Account, in the form of electronic data as more particularly set forth in the Operating Instructions. 

  

	(p)	“Confidential Information” means this Agreement, the Letter of Intent dated June 6, 2005, all negotiations, drafts, and documents related to this Agreement and
all information, software, systems and data that Merchant receives from HSBC or from any other source relating to the Program and matters which are subject to the terms of this Agreement, including, but not limited to, Cardholder names and addresses
or other Account information, in any form. 

  

	(q)	“Credit Slip” means evidence of a credit in a paper or electronic form for Goods purchased from Merchant. 

  

	(r)	“Effective Date” means the date first above written. 

  

	(s)	“Goods” means all products and related services sold by Merchant in the ordinary course of Merchant’s business to individual consumers for personal, family or
household purposes, and certain warranties expressly authorized by HSBC. 

  

	(t)	“Interest Free – Equal Payment” is a Promotional Credit Plan meaning an interest free account with equal payments for a specific period of time.

  

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	(u)	“LIBOR” means the Business Daily average, for the applicable calendar month, of the one (1) year London Interbank Offered Rate as published by Bloomberg
Financial Markets. 

  

	(v)	“Month” means a calendar month unless used in connection with a Promotional Credit Plan period. 

  

	(w)	“Net Card Sales” means gross Card Sales, minus Normal Business Returns and Chargebacks, during the specified period of time. 

  

	(x)	“Net Monthly Card Sales” means gross Card Sales, minus Normal Business Returns and Chargebacks, for a given Month. 

  

	(y)	“Normal Business Return” means a full refund (i.e., price plus original tax, and shipping and handling if applicable) given in the ordinary course of business by
Merchant for (i) a returned product, (ii) a damaged or defective product (iii) a package that is returned marked “undeliverable”, or (iv) a cancellation of services. 

  

	(z)	“Operating Instructions” means the regulatory guidelines and operating instructions and/or procedures designated by HSBC from time to time concerning the Program.

  

	(aa)	“Prime Rate”, with regard to the Accounts, means the highest Prime Rate published in The Wall Street Journal “Money Rates” section.

  

	(bb)	“Program” means the private label revolving credit card program associated with Merchant whereby Accounts will be established and maintained by HSBC, Cards issued
by HSBC to qualified consumers purchasing Merchant’s Goods, and Card Sales funded all pursuant to the terms of this Agreement. 

  

	(cc)	“Program Year” means any consecutive twelve (12) Month period commencing on the first day of funding of Accounts after the Effective Date and each subsequent
twelve (12) Month period. 

  

	(dd)	“Promotional Credit Plan” means one of the promotional credit plans set forth in the Cardholder Agreement. 

  

	(ee)	“Proprietary Designations” means name, logo, trademarks, servicemarks and any other proprietary designations. 

  

	(ff)	“SAC/Delayed Monthly Payment” or “SAC Without Pay” is a Promotional Credit Plan, meaning a same as cash credit promotion without required minimum
monthly payments during the required promotion period. 

  

	(gg)	“SAC/Monthly Payment” or “SAC With Pay” is a Promotional Credit Plan, meaning a same as cash credit promotion with required minimum monthly
payments during the required promotion period. 

  

	(hh)	“Sales Slip” means evidence of a Card Sale in paper or electronic form for Goods purchased from Merchant. 

  

	(ii)	“Terminal” means an electronic terminal or computer capable of communicating by means of an on-line or dial-up electronic link with an Authorization Center.

 ARTICLE 2 - ESTABLISHMENT OF PROGRAM AND PROGRAM ECONOMICS 
 Section 2.1 General Parameters. 
 Merchant desires to make financing available to consumers purchasing Goods from
Merchant and to participate in the Program in accordance with the terms and conditions set forth in this Agreement. HSBC, a credit card bank in the business of providing revolving credit financing pursuant to a credit card, has agreed to provide
such financing under the Program to individual qualified consumers purchasing Merchant’s Goods pursuant to the terms and conditions set forth in this Agreement. 
 Section 2.2 Amendment Compensation Payment. 
 HSBC shall pay Merchant an Amendment Compensation Payment as set
forth on Schedule 2.2. 
  

 6 

 Section 2.3 Promotional Credit Plan Discounts. 
 Each Sales Slip or Card Safe generated pursuant to a standard plan or Promotional Credit Plan shall be subject to the Promotional Credit Plan Discounts as set forth on Schedule 2.3. 
 Section 2.4 Credit Review; Ownership of Accounts. 
 (a) All
completed applications for Accounts submitted by Merchant to HSBC, whether mailed, telephoned or electronically transmitted, will be processed and approved or declined in accordance with such credit criteria and procedures established from time to
time by HSBC, with HSBC having and retaining all rights to reject or accept such applications. HSBC will only accept applications for revolving credit pursuant to the credit card it issues for individual, personal, family or household use. HSBC or
its Affiliates shall own the Accounts, as well as the information associated with the Accounts, including names, mailing addresses, and e-mail addresses, and shall bear the credit risk for such Accounts. HSBC shall share such information with
Merchant to the extent allowed by Applicable Law, HSBC shall not be obligated to take any action under an Account, including making future advances or credit available to Cardholders. HSBC shall not be obligated to accept applications for a Card or
to approve any Card Sale for consumers who do not have their principal residence and billing address in the United States or Canada. 
 (b) Both parties
acknowledge and agree that the $8.00 payment that HSBC and/or its successors-in-interest were paying to Merchant and/or its predecessors or successors-in-interest, as compensation for services rendered, based on previous agreements and promises, is
hereby discontinued. 
 (c) Beginning One Hundred Eighty days from the Effective Date, if the in-store application approval rate remains at or below 47%
during any three or more consecutive months, but the quality of the applications (based on the customer demographics) and the promotional mix (percent of total volume on certain credit promotions) remain constant, then at either HSBC’s or
Merchant’s written request received by the other party, within the thirty days following the expiration of the third such month (an “Approval Rate Notice”), HSBC and Merchant will promptly meet and confer about the causes of such
rate. 
 Following the meeting, both parties will work in good faith over the next sixty (60) days (Approval Rate Cure Period) to improve the credit
customer quality and create a higher in-store application approval rate. If the credit customer quality improves, but the average in-store application approval rate does not then exceed 47% during the thirty (30) day period following the
Approval Rate Cure Period, then either party shall have the right, for ninety (90) days following the expiration of the Approval Rate Cure Period, to notify the other of its intention to terminate this Agreement, provided Merchant has promoted
the program to the consumers during the three consecutive months that resulted in such an Approval rate notice being issued. 
 Both parties acknowledge and
agree that the following factors have a significant impact on application credit quality and customer demographics that can influence the application approval Rate: (i) type and length of credit promotion offered; (ii) minimum purchase
requirements; (iii) length of time promotion runs (week, two-weeks, etc.); (iv) percentage off for cash or other tender discounts other than the Card, among others. Merchant agrees to promote the program, work with and cooperate with HSBC
in order to enhance or mitigate these factors, as applicable, in order to improve the customer quality, reduce adverse selection and improve the overall application approval rates. For clarification purposes, “promoted” or
“promote” shall mean in-store support including 

  

 7 

 prominently displayed applications and signage, deferred interest and payment programs that are offered, on average, 10
days and are prominently advertised in flyers and circulars, and store personnel supporting the program through active discussion of the benefits of the program with the customer. 
 Section 2.5 Exclusive Relationship 
 Merchant agrees to make HSBC its sole and exclusive private label credit
card provider during the term of this Agreement. Merchant shall not issue, arrange to issue, or accept any other private label credit card or co-branded credit card other than the Card under any of Merchant’s names or logos. 
 Section 2.6 Marketing Fund Contribution 
 HSBC shall pay Merchant
a Marketing Fund Contribution as set forth on Schedule 2.6. 
 ARTICLE 3 - MARKETING 
 Section 3.1 Promotion of Program. 
 Merchant shall actively promote the Program at each of its locations. To the
extent Merchant displays materials for credit or charge cards issued by other parties, it shall display the advertising and promotional materials relating to the Card in a manner and with a frequency equal to or greater than that afforded any other
third party credit or charge card. Merchant shall prominently display at each of its locations, if appropriate, advertising and promotional materials relating to the Card, including, without limitation, take-one applications for the Card and use or
display such materials in accordance with any specifications mutually agreed to by HSBC and Merchant. Such materials shall be used only for the purpose of soliciting accounts for the Program. Any solicitation, written material, advertising or the
like relating to the credit terms and credit products offered pursuant to the Program shall receive HSBC’s prior review and written approval. If HSBC prepares any such material at Merchant’s request, HSBC will charge Merchant and Merchant
agrees to pay for any such material. Such review and approval by HSBC shall be limited to the review and approval of the credit terms and credit products and shall not be construed as review or approval of any advertising or solicitation materials
for any other purpose or for compliance with any provisions of any local, state or federal advertising laws not related to credit terms or credit products. Following termination of this Agreement, Merchant shall not use any such materials.

 Section 3.2 Card Promotions, Services and Enhancements. 
 HSBC and Merchant may from time to time mutually agree to offer to existing or potential Cardholders credit promotions, additional services and/or enhancements. The terms of such promotions, services and enhancements shall be mutually
agreed upon and/or discontinued by HSBC and Merchant. 
 Section 3.3 Web Sites. 
 Merchant shall include a link on its web site to the HSBC web site and include language approved by HSBC notifying visitors that they may complete an application for a Card via the Internet by clicking on such link.

  

 8 

 ARTICLE 4 - ACCOUNT TERMS 
 Section 4.1 Cardholder Terms and Conditions. 
 The Cardholder Terms and Conditions are set forth on Schedule 4.1. 
 ARTICLE 5 - OPERATIONAL RESPONSIBILITIES 
 Section 5.1
Consumer Transactions. 
 Merchant shall honor all valid Cards without discrimination, when properly presented by Cardholders for payment of Goods.

 Section 5.2 Surcharges and Differential Treatment. 
  

	(a)	Merchant shall not require, through an increase in price or otherwise, any Cardholder to pay any surcharge at the time of sale or pay any part of any charge imposed by HSBC on
Merchant. 

  

	(b)	

  

	(b)	Merchant shall not establish minimum charge amounts for standard purchases. 

 Section 5.3 Forms and Cards. 
 HSBC shall provide, and Merchant shall only use, the applications sales/credit slips [if applicable] and
Cardholder Agreements as are provided by HSBC, and not use any materials provided by HSBC other than in connection with an application for a Card or a Card transaction. When provided by HSBC with a new edition of forms with the instruction to
replace the previous editions with the new editions by a certain date, Merchant shall do so in accordance with the instructions. 
 HSBC and Merchant shall
agree upon the design of Cards and applications. HSBC shall be responsible for card production and issuance and will pay for the issuance of Cards to Cardholders. The terms and conditions set forth on the applications, Cardholder Agreements, and
other forms shall be determined by HSBC and are subject to change by HSBC from time to time. 
 Section 5.4 Applications. 
 Merchant shall, with respect to paper applications that it accepts in its stores: 
  

	(a)	make sure all information requested on the application is complete and/or legible; 

  

	(b)	obtain the signature on the application of all persons whose name will appear on the Account or will be responsible for the Account; 

  

	(c)	give the applicant the initial disclosures at the time of signing the application/agreement prior to the first transaction under the Account; 

  

	(d)	 obtain and provide verification of the applicant’s identity and current address by (i) witnessing the signature on the application of each person whose
name will appear on the Account or who will be responsible for the Account; and (ii) reviewing one of the following: a current drivers license containing the applicant’s photo, a current government issued identification card containing the
applicant’s photo, a valid US Government issued military identification containing the applicant’s photo, a valid United States Passport containing the applicant’s photo, or a valid United States Alien Registration Card (Green Card)
containing the applicant’s photo and confirming that the photo on such identification reasonably matches the applicant; and (iii) reviewing a second form of identification, for example, an unexpired major credit card (American Express,
VISA, MasterCard, Discover or major private label credit card 

  

 9 

	 	 
such as a Sears card) and confirming that the signature on such credit card reasonably matches the signature on the application; and (iv) recording on
the application where designated the drivers license number or the card type, place of issuance, and, if any, date of issuance and expiration date of such identification, as well as the address if the address differs from the address on the
application; 

  

	(e)	provide all information required by HSBC for approval of applications and either legibly insert the Account number and approval number on the application in the designated area or
electronically provide said information; and 

  

	(f)	send the actual original approved signed application, and a copy of the primary form of photo identification reviewed, to HSBC at HSBC’s address on page one above or such other
address designated by HSBC, on a monthly basis. 

 Merchant shall, with respect to applications submitted to it by telephone or through the
internet: 
  

	(g)	request all information required by HSBC for such applications; and 

  

	(h)	provide all information required by HSBC, through a mode of transmission approved by HSBC, for approval of such application. 

 Merchant and HSBC shall use good faith efforts to develop a kiosk-type application process in the future. 
 Section 5.5 Sales Slips. 
 Merchant shall, with respect to Sales Slips: 
  

	(a)	enter legibly or capture electronically on a single Sales Slip (prior to obtaining the Cardholder’s signature for in store sales) 

 (i) a description of all Goods purchased in the same transaction in detail sufficient to identify the transaction; 
 (ii) the date of the transaction; 
 (iii) the
Authorization number; 
 (iv) the entire amount due for the transaction (including any applicable taxes); 
 (v) if applicable, the Promotional Credit Plan and promotional period; 
 (vi) Cardholder’s name and shipping address; 
 (vii) Account number (except that Merchant shall not
print more than the last 5 digits of the Account number on any Sales Slip provided to the Cardholder at the point of sale or transaction if the Sales Slip is electronically printed, provided that the full account number may be so printed if the sole
means of recording the Account number is by handwriting or by an imprint or copy of the Card); and 
 (viii) Merchant’s store number, if
applicable, and address. 
 If the promotional credit plan and promotional period cannot be entered on the Sales Slip, Merchant shall provide
the Cardholder with the Sales Slip, as well as a handout or flyer explaining the promotional credit plan and the promotional period; 
  

	(b)	Request authorization from HSBC’s authorization center. HSBC may refuse to accept or fund any Sales Slip that is presented to HSBC for payment more than one hundred eighty
(180) days after the date of Authorization of the Card Sale. If Authorization is granted, legibly enter or electronically capture and provide the Authorization number in the designated area on the Sales Slip. If Authorization is denied, do not
complete the transaction and follow any instructions from the Authorization Center; 

  

 10 

	(c)	if applicable, imprint legibly on the Sales Slip the embossed legends from the Card or if the transaction is to be completed electronically or otherwise without a Card imprint, then
enter legibly or electronically capture and provide, on the Sales Slip, sufficient information to identify the Cardholder and Merchant, including at least, Merchant’s store number [if applicable] and address, the Cardholder’s name, Account
number and the effective date, if any, on the Card. Merchant shall be deemed to warrant the Cardholder’s true identity as an authorized user of the Card; 

  

	(d)	for in-store sales, verify the Cardholder’s identification by reviewing the Cardholder’s current photo identification, obtain the signature of the Cardholder on the Sales
Slip, compare the signature on the Sales Slip with the signature panel of the Card, and if identification is uncertain or if Merchant otherwise questions the validity of the Card, contact HSBC’s Authorization Center for instructions. For
telephone orders (TO), mail orders (MO), or Internet Order (IO), the Sales Slip may be completed without the Cardholder’s signature and/or a Card imprint, but Merchant shall, in addition to all other requirements under this
Section 5.5, enter legibly on the signature line of the Sales Slip the letters TO, MO, or IO, as appropriate, and not provide Goods after being advised that the TO, MO, or IO has been canceled or that the Card is not to be honored;

  

	(e)	verify the identification of the cardholder including but not limited to comparing the accuracy of the Cardholder’s signature on any documents against the signature on the back
of the Card; 

  

	(f)	not present the Sales Slip to HSBC for funding until all Goods are provided to the Cardholder’s reasonable satisfaction, including but not limited to arranging delivery dates,
etc. If the Card Sale is canceled or the Goods canceled or returned the Sales Slip is subject to Chargeback; 

  

	(g)	enter the Card Sale into the Terminal; and 

  

	(h)	except with respect to telephone orders, mail orders, and Internet orders, deliver a true and completed copy of the Sales Slip to the Cardholder at the time of delivery of the Card
Sale. 

 Section 5.6 Credit Slips. 
 Merchant shall not make any cash refund but shall complete and deliver promptly to HSBC a Credit Slip evidencing a refund or adjustment and deliver to the Cardholder a true and complete copy of the Credit Slip at the time the refund or
adjustment is made if Goods are returned, any Card Sale is terminated or canceled, or Merchant allows any price adjustment. Merchant shall sign and date each Credit Slip and include thereon a brief description of the Goods returned, Card Sale
terminated or canceled, or adjustment made, the date of the original Card Sale, Authorization number, Cardholder’s name, address and Account number, and the date and amount of the credit, all in sufficient detail to identify the transaction.
Merchant shall imprint or legibly reproduce on each Credit Slip the embossed legends from the Card. The amount of the Credit Slip cannot exceed the amount of the original transaction as reflected on the Sales Slip, Merchant shall issue Credit Slips
only in connection with previous bona fide Card Sales and only as permitted hereunder. 
 Merchant shall use the same policy of permitting refunds,
exchanges, returns, or adjustments for Card Sales as it does for non-Card Sales. Merchant shall be able to make cash refunds of cash deposits on non-Card Sales. 
 Section 5.7 Acceptance, Offset and Funding. 
 Subject to the terms, conditions, warranties and representations in this Agreement and
provided that Merchant has satisfied all of the conditions set forth in this Agreement, HSBC agrees to pay to Merchant the amount of each valid and authorized Sales Slip or Card Sale presented to HSBC during the term of this Agreement, less the
amount of the fees, charges, and discounts described below, outstanding Account balances for Sales Slips subject to Chargeback, reimbursements, refunds, 

  

 11 

 
customer credits and any other amounts owed to HSBC by Merchant under this Agreement. HSBC may also offset or recoup said amounts from future amounts owed to
Merchant under this Agreement. Any amounts owed by Merchant to HSBC that cannot be paid by the aforesaid means shall be due and payable by Merchant on demand. If Merchant fails or refuses to pay any amounts owed to HSBC under this Agreement after
HSBC’s demand, HSBC may cease authorizations for and the funding or acceptance of any Sales Slips or Card Sales or the processing of applications for an Account. Any payment made by HSBC to Merchant shall not be final but shall be subject to
subsequent review and verification by HSBC. HSBC’s liability to Merchant with respect to the funding or processing of any Card Sale, Sales Slip or Credit Slip shall not exceed the amount on the Sales Slip or Credit Slip in connection with such
transaction. In no event shall HSBC be liable for any incidental or consequential damages. Funding of Sales Slips by HSBC to Merchant shall be made by such means and in such manner mutually agreed to by HSBC and Merchant. 
 Merchant acknowledges and agrees (i) that HSBC is paying Merchant for Sales Slips in advance before HSBC can determine whether such Sales Slips are subject to
Chargeback, (ii) as a result, HSBC’s payment to Merchant is conditioned upon, and reliance on, Merchant’s agreement to permit HSBC to recoup Chargebacks and other overpayments from fundings payable to Merchant under this Agreement for
subsequently presented Sale Slips, and (iii) due to the ongoing reconciliation process implemented under this Agreement, the reduction of current fundings by the amount of Chargebacks and other amounts owing by Merchant to HSBC constitutes a
single integrated transaction. 
 Section 5.8 Cardholder Payments and Endorsement. 
 Merchant agrees that HSBC has the sole right to receive payments on any Sales Slip or Card Sale funded by HSBC. Unless specifically authorized in writing by HSBC, Merchant agrees not to make any collections on any
such Sales Slips or Card Sale. Merchant agrees to hold in trust for HSBC any payment received by Merchant of all or part of the amount of any such Sales Slip or Card Sale and to deliver any such payment to HSBC together with the Cardholder’s
name, Account number, and any correspondence accompanying the payment within five (5) days of receipt by Merchant. Merchant agrees that Merchant shall be deemed to have endorsed any Sales Slip, Credit Slip, or Cardholder payments by check,
money order, or other instrument made payable to Merchant that a Cardholder presents to HSBC in HSBC’s favor, and Merchant hereby authorizes HSBC to supply such necessary endorsements on behalf of Merchant. Merchant shall not receive any
payments from a Cardholder to prepare and present a Credit Slip for the purpose of effecting a credit to the Cardholder’s Account. 
 Section 5.9 Written Complaints. 
 Merchant shall within three (3) business days of receipt provide HSBC with a copy of any written
complaint from any Cardholder concerning an Account. 
 Section 5.10 Operating Instructions. 
 Merchant shall satisfy all other requirements designated in any Operating Instructions by HSBC, including, but not limited to, procedures and guidelines relating to cash
transactions. HSBC shall provide Merchant reasonable prior notice if there are any changes in the Operating Instructions. In the event there is any inconsistency between any Operating Instructions and this Agreement, this Agreement shall govern
unless otherwise expressly indicated by HSBC in any Operating Instructions. 
  

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 Section 5.11 Facsimile and E-Mail Communication. 
 Merchant agrees to accept announcements, changes in Operating Instructions, and any other type of written material from HSBC at any time during the term of this Agreement
via facsimile or e-mail transmission. 
 Section 5.12 Merchant Business Practices. 
 Merchant agrees to provide adequate services in connection with each Card Sale pursuant to standard customs and trade practices and any applicable manufacturer’s warranties, and to provide such repairs, service
and replacements and take such other corrective action as may be required by Applicable Law or any applicable warranty. 
 Section 5.13 Presentation
of Sales Slip or Credit Slips. 
 Merchant shall present each Sales Slip or Credit Slip to HSBC or such other entity designated by HSBC within five
(5) Business Days after the date of the respective sale or credit transaction. 
 ARTICLE 6 - CHARGEBACKS TO MERCHANT 
 Section 6.1 Right to Chargeback. 
 Any Sales Slip or Card Sale is
subject to Chargeback under any one or more of the following circumstances, and thereupon the provisions of Section 6.3 below shall apply: 
  

	(a)	the application or any information on the application or the Sales Slip or any required information on the Sales Slip is incomplete; 

  

	(b)	the Sales Slip or application is not executed by the Cardholder; 

  

	(c)	an Authorization is not obtained from the Authorization Center; 

  

	(d)	the Sales Slip is a duplicate of a Sales Slip previously paid; 

  

	(e)	the price of the Goods shown on the Sales Slip differs from the amount shown on the Cardholder’s copy of the Sales Slip; 

  

	(f)	HSBC reasonably determines that Merchant has breached or failed to satisfy, any term, condition, covenant, warranty, or other provision of this Agreement, or of the Operating
Instructions, in connection with a Sales Slip, Card Sale or the transaction to which it relates, or an application for a Card or the opening of an Account; 

  

	(g)	the Sales Slip, application, cardholder agreement or Card Sale is fraudulent or is subject to any claim of illegality, cancellation, rescission, avoidance or offset for any reason
whatsoever, including, without limitation, negligence, fraud, misrepresentation, or dishonesty on the part of the customer or Merchant or its agents, employees, licensees, or franchisees; 

  

	(h)	the related transaction is not a bona fide transaction in Merchant’s ordinary course of business; 

  

	(i)	the Cardholder in good faith, disputes or denies the Card Sale or other Card transaction, the execution of the Sales Slip, application, or cardholder agreement;

  

	(j)	the Cardholder in good faith disputes or denies the delivery, quality, or performance of the Goods; 

  

	(k)	the Cardholder alleges that a credit adjustment was requested and wrongfully refused or that a credit adjustment was issued by Merchant but not posted to the Account due to
Merchant’s failure to submit the Credit Slip to HSBC; 

  

	(I)	Merchant ships Goods to an address that does not match HSBC’s billing address and the Cardholder denies that the Goods were received; or 

  

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	(m)	Merchant fails to deliver to HSBC the Sales Slip, Credit Slip, application or other records of the Card transaction within the time periods required in this Agreement.

 Section 6.2 Fraud Chargeback Exception. 
 Notwithstanding anything to the contrary in Section 6.1, but subject to the limitation set forth in Section 6.2(b), HSBC and Merchant agree that where Merchant follows the terms and procedures and provides the information set
forth below, a Card Sale or Sales Slip which is reasonably determined by HSBC to be the result of customer fraud, shall not be subject to Chargeback under Section 6.1.: 
  

	(a)	Merchant shall comply with Sections 5.4, 5.5, and 5.6. 

  

	(b)	Within twenty-one days of receipt of HSBC’s request, Merchant shall provide to HSBC a copy of the signed application, a copy of the applicant’s identification(s) provided
at the time of the application, signed Sales Slip, and, if the Goods are shipped, signed delivery receipt. 

  

	(c)	Merchant shall receive a valid authorization code. 

  

	(d)	For Card Sales made to a Cardholder on the telephone or through the Internet, Merchant shall not ship for 24 hours after an approval to allow HSBC time to notify Merchant of
suspected fraud after any appropriate fraud checks. 

  

	(e)	[OMITTED]. 

  

	(f)	If Merchant has not yet shipped Goods, Merchant shall stop shipment when HSBC notifies Merchant that the transaction is a suspected fraud. 

 Section 6.3 Resolution and Payment. 
 Merchant is required to
resolve any dispute or other of the circumstances described above in Section 6.1 to HSBC’s reasonable satisfaction within twenty one (21) days of notice of Chargeback or Merchant shall pay to HSBC the full amount of each such Sales
Slip or Card Sale subject to Chargeback or the portion thereof designated by HSBC, as the case may be, plus the finance charges thereon, and other fees and charges provided for in the Cardholder Agreement. 
 Upon Chargeback to Merchant of a Sales Slip or Card Sale, Merchant shall bear all liability and risk of loss associated with such Sales Slip or Account, or the
applicable portion thereof, without warranty by, or recourse or liability to, HSBC. HSBC may deduct amounts owed to HSBC under this Section from any amounts owed to Merchant under this Agreement. HSBC shall be entitled to recover reasonable attorney
fees incurred by HSBC to collect any Chargeback amounts due HSBC which are not paid by Merchant in accordance with the terms of the Agreement. 
  

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 ARTICLE 7 - TRANSMISSION AND RECORDS 
 Section 7.1 Transmission of Data. 
 Instead of forwarding paper Sales Slips and Credit Slips to HSBC, Merchant
shall transmit to HSBC, by electronic transmission or other form of transmission designated by HSBC, all data required by this Agreement to appear on Applications, Sales Slips and Credit Slips. All data transmitted shall be in a medium, form and
format mutually agreed to by HSBC and Merchant. Any errors in such data or in its transmission shall be the sole responsibility of Merchant. The means of transmission mutually agreed to shall be the exclusive means utilized by Merchant for the
transmission of transaction data to HSBC. 
 Section 7.2 Receipt of Transmission. 
 Upon successful receipt of any transmission, HSBC shall accept such transmission and pay Merchant in accordance with this Agreement, subject to subsequent review and verification by HSBC and to all other rights of
HSBC and obligations of Merchant as set forth in this Agreement. If data transmission is by tape, Merchant agrees to deliver upon demand by HSBC a duplicate tape of any prior tape transmission, if such demand is made within forty-five (45) days
of the original transmission. 
 HSBC shall pay Merchant by 5:00 P.M. CST, via ACH transaction, for all Charge Transaction Data received in accordance with
this Agreement by 4:00 P.M. CST the previous day. HSBC will provide funding to Merchant on all weekdays with the exception of federal banking holidays. 
 Section 7.3 Records. 
 Merchant shall maintain the actual paper Sales Slips, Credit Slips, and other records pertaining to any
transaction covered by this Agreement for such time and in such manner as HSBC or any law or regulation may require, but in no event less than twenty-five (25) months after the date Merchant presents each transaction data to HSBC, and Merchant
shall make and retain for at least twenty-five (25) months legible copies of the actual paper Sales Slips, Credit Slips or other transaction records. Within twenty-one (21) days, or such earlier time as may be required by HSBC, of receipt
of HSBC’s request, Merchant shall provide to HSBC the actual paper Sales Slips, Credit Slips or other transaction records, any other documentary evidence available to Merchant and reasonably requested by HSBC to meet its obligations under law
(including its obligations under the Fair Credit Billing Act) or otherwise to respond to questions, complaints, lawsuits, counterclaims or claims concerning Accounts or requests from Cardholders, or to enforce any rights HSBC may have against a
Cardholder, including, without limitation, litigation by or against HSBC, collection efforts and bankruptcy proceedings, or for any other reason. In the event Merchant fails to comply in any respect with the provisions of this Section, HSBC may
process a Chargeback for each Card Sale involved pursuant to Article 7 above. Promptly upon termination of this Agreement or upon the request of HSBC, Merchant will provide HSBC with all original and microfilm copies of documents required to be
retained under this Agreement. 
  

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 ARTICLE 8 - HSBC REPRESENTATIONS AND WARRANTIES 
 Section 8.1 General Representations and Warranties. 
 HSBC represents and warrants to Merchant as of the
Effective Date and throughout the term of this Agreement the following: 
  

	(a)	It has full corporate or other power and authority to enter into this Agreement; that all corporate or other action required under any organization documents to make this Agreement
binding and valid upon HSBC according to its terms has been taken; and that this Agreement is and will be binding, valid and enforceable upon HSBC according to its terms. 

  

	(b)	Neither (i) the execution, delivery and performance of this Agreement, nor (ii) the consummation of the transactions contemplated hereby will constitute a violation of law
or a violation or default by HSBC under its articles of incorporation, bylaws or any organization documents, or any material agreement or contract, and no authorization of any governmental authority is required in connection with the performance by
HSBC of its obligations hereunder. 

  

	(c)	It has and will retain all licenses required by local or state law to conduct its business and to perform its obligations under this Agreement 

  

	(d)	It will comply with all Applicable Law. 

  

	(e)	It is solvent. 

 ARTICLE 9 - MERCHANT REPRESENTATIONS AND WARRANTIES

 Section 9.1 General Representations and Warranties. 
 Merchant represents and warrants to HSBC as of the Effective Date and throughout the term of this Agreement the following: 
  

	(a)	It has full corporate or other power and authority to enter into this Agreement; that all corporate or other action required under any organization documents to make this Agreement
binding and valid upon Merchant according to its terms has been taken; and that this Agreement is and will be binding, valid and enforceable upon Merchant according to its terms. 

  

	(b)	Neither (i) the execution, delivery and performance of this Agreement, nor (ii) the consummation of the transactions contemplated hereby will constitute a violation of law
or a violation or default by Merchant under its articles of incorporation, bylaws or any organization documents, or any material agreement or contract, and no authorization of any governmental authority is required in connection with the performance
by Merchant of its obligations hereunder. 

  

	(c)	It has and will retain all licenses required by local or state law to conduct its business and to perform its obligations under this Agreement. 

  

	(d)	It will comply with all Applicable Law. 

  

	(e)	It is solvent. 

 Section 9.2 Representations and Warranties
Regarding Card Sales and Applications. 
 Merchant represents and warrants to HSBC as of the Effective Date and throughout the term of this Agreement the
following: 
  

	(a)	Each Card Sale will arise out of a bona fide sale of Goods by Merchant and will not involve the use of the Card for any other purpose. 

  

	(b)	It will not knowingly or willfully make Card Sales to others than will be to a consumer for personal, family, or household purposes. 

  

	(c)	Cardholder applications will be available to the public (i) without regard to race, color, religion, national origin, sex, marital status, disability or age (provided the
applicant has the capacity to enter into a binding contract) and (ii) not in any manner which would discriminate against an applicant or discourage an applicant from applying for the Card. 

  

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 ARTICLE 10 - INDEMNIFICATION 
 Section 10.1 Indemnification by Merchant. 
 Merchant shall indemnify HSBC, its Affiliates, and their respective officers, employees,
agents and directors (collectively, the “HSBC Indemnified Parties”) and hold the HSBC Indemnified Parties harmless, from any losses, damages, costs, expenses (including reasonable attorneys fees), liabilities, judgments, demands, offsets,
defenses, counterclaims, actions, proceedings, claims or complaints incurred by any of the HSBC Indemnified Parties, regardless of the person, entity, or instrumentality making such assertion, arising out of: (i) Merchant’s failure to
materially comply with this Agreement; (ii) anything done or not done by Merchant in connection with Card Sales, Card transactions or credits; (iii) anything done or not done by Merchant in connection with the furnishing of any Goods
purchased by Cardholders; (iv) the death or injury to any person or the loss, destruction or damage to any property arising out of anything done or not done by Merchant in connection with the design, manufacture or furnishing by Merchant of any
Goods purchased by Cardholders; (v) Merchant’s advertisements and promotions relating to the Card, credit terms or credit products which have not been approved by HSBC; (vi) any actual or alleged illegal or improper conduct of
Merchant or its employees or agents in connection with any of the transactions contemplated by this Agreement; and (vii) any violation, or claimed violation, by Merchant of the Equal Credit Opportunity Act, Truth in Lending Act, or any other
Applicable Laws. 
 Section 10.2 Indemnification by HSBC 
 HSBC shall be liable to and shall indemnify and hold harmless Merchant, its Affiliates, and their respective officers, employees, agents and directors (the “Merchant Indemnified Parties”) from any losses, damages, costs, expenses
(including reasonable attorneys fees), liabilities, judgments, demands, offsets, defenses, counterclaims, actions, proceedings, claims or complaints incurred by any of the Merchant Indemnified Parties, regardless of the person, entity, or
instrumentality making such assertion, arising out of (i) HSBC’s failure to materially comply with this Agreement; (ii) anything done or not done by HSBC in connection with such Cardholder’s Account; (iii) any actual or
alleged illegal or improper conduct of HSBC, or its employees or agents with respect to the Card, a Card Sale, an Account or any other matters relating to the Program; (iv) any violation, or claimed violation, by HSBC , with respect to the
application or Cardholder Agreement, or the Equal Credit Opportunity Act, Truth in Lending Act or any other Applicable Laws; and (v) the advertisements and promotions prepared by HSBC relating to the Card, credit terms or credit products.
Notwithstanding the foregoing, the indemnification by HSBC shall not apply to any claim or complaint relating to the failure of Merchant to resolve a billing inquiry or dispute with a Cardholder relating to Goods or services purchased on the Card
where such failure was not caused by HSBC . 
 Section 10.3 Notice of Claim. 
 In the event that HSBC or Merchant know of any facts which would lead to a claim or demand, receive a claim or demand, or be subject to any suit or proceeding, of which a claim may be made against the other under this
Section (other than a claim, demand, suit or proceeding by a party to this Agreement against the other party to this Agreement that has not been initiated), the indemnified party shall give prompt written notice thereof to the indemnifying party and
the indemnifying party will be entitled to participate in the settlement or defense thereof with counsel satisfactory to indemnified party at the indemnifying party’s expense. In any case, the indemnifying party and the indemnified party shall
cooperate (at no cost to the indemnified party) in the settlement or defense of any such claim, demand, suit, or proceeding. 
  

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 ARTICLE 11 - TERM AND TERMINATION 
 Section 11.1 Term. 
 This Agreement shall be effective as of the Effective Date when executed by authorized
officers of each of the parties. It shall remain in effect through May 30, 2008 (“Initial Term”), and shall thereafter be automatically renewed for successive one (1) year terms (each a “Renewal Term”)
unless and until terminated as provided herein. The termination of this Agreement shall not affect the rights and obligations of the parties with respect to transactions and occurrences that take place prior to the effective date of termination,
except as otherwise provided herein. 
 Section 11.2 Termination. 
 This Agreement may be terminated: 
  

	(a)	by HSBC or Merchant, effective at the end of the Initial Term or any Renewal Term, upon at least one hundred eighty (180) days’ prior written notice to the other prior to
the end of such term; 

  

	(b)	by HSBC upon written notice to Merchant if the aggregate dollar amount of all Sales Slips subject to Chargeback in any monthly billing cycle exceeds 5% of the total net balances of
all Accounts at the end of such monthly billing cycle; 

  

	(c)	by HSBC or Merchant upon written notice to the other in the event the other party: 

  

	 	(i)	shall elect to wind up or dissolve its operation or is wound up and dissolved; 

  

	 	(ii)	becomes insolvent or repeatedly fails to pay its debts as they become due; 

  

	 	(iii)	makes an assignment for the benefit of creditors; 

  

	 	(iv)	files a voluntary petition in bankruptcy, or for reorganization or is adjudicated as bankrupt or insolvent; 

  

	 	(v)	has a liquidator or trustee appointed over its affairs; 

  

	 	(vi)	suffers a material adverse change in its financial condition as reasonably determined by the terminating party in that party’s sole discretion; 

  

	 	(vii)	suspends or goes out of business or substantially reduces its business operations or sends a notice of a proposed bulk sale of all or part of its business; 

 

	 	(viii)  	materially breaches its obligations or any warranty or representation under this Agreement (subject to a reasonable cure within 60 days after written notice of such breach); or,

  

	 	(ix)	as reasonably determined by the terminating party, will not be able to perform its obligations under this Agreement; 

  

	(d)	by HSBC upon written notice to Merchant (i) if there occurs any material change in ownership of Merchant greater than fifty percent (50%), except that an attempt by Merchant to
go public shall not for purposes of this subsection (d) be construed as a material change in ownership; (ii) if HSBC has reasonable cause to believe that Merchant, its agents or employees have engaged in any fraudulent activity in
connection with any of the transactions contemplated by this Agreement; (iii) if HSBC receives a disproportionate number of Cardholder inquiries, disputes, or complaints; or (iv) if in HSBC’s judgment, any Applicable Law requires that
this Agreement or either party’s rights or obligations hereunder be amended, modified, waived or suspended in any material respect, including, without limitation, the amount of finance charges or fees that may be charged or collected or the
consumer rate that may be charged on purchases with the Card; or, 

  

	(e)	by Merchant or HSBC subject to Section 2.4(c) above. 

  

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 HSBC shall not be entitled to terminate this Agreement pursuant to subsection (d)(i) due to any implementation of the
RoomStore, Inc. Chapter 11 re-organization plan currently in place. 
 Section 11.3 Duties and Rights Upon Termination. 
 Upon termination of this Agreement, Merchant shall promptly submit to HSBC all Card Sales, Sales Slips, Credit Slips and other transaction documents or data made through
the date of termination, in addition, Merchant shall promptly return all computer hardware and software, remote data entry terminals and peripherals and other equipment provided by HSBC in good working order and Merchant shall de-install from its
operating system any program files provided by HSBC to Merchant. HSBC is not liable to Merchant for any direct or consequential damages that Merchant may suffer as a result of HSBC’s termination of this Agreement. 
 Section 11.4 Purchase Requirements. 
 Upon termination of this
Agreement, Merchant, its successors and assigns shall have the option to purchase or arrange to purchase by a third party (“Nominated Purchaser”), the Accounts, without recourse to HSBC and without representations or warranty, express or
implied. In order to exercise its option, Merchant shall notify HSBC no less than thirty (30) days prior to the effective date of termination of its intention to purchase the Accounts. If the purchase of the Accounts is not completed within
ninety (90) days following the termination of this Agreement, and unless HSBC agrees to extend such time period, Merchant shall have no further rights to purchase the Accounts. 
 The purchase price for the Accounts acquired shall be 100% of the full amount of all of the outstanding Account balances, plus accrued interest and fees from the last billing cycle through the date of sale. The
purchase price will not include any receivables that have been charged off. 
 Section 11.5 Survival. 
 The terms and provisions of Articles 6, 7, 8, 9, 10, 12 and Sections 5.6, 11.3, 11.4, 13.3, 13.4, 13.5, 13.6, 13.7, 13.8, 13.9, 13.10, 13.23, 13.24, and 13.25 shall
survive termination of this Agreement. 
 ARTICLE 12 - HOLDBACK 
 Section 12.1 Holdback 
 Upon any Notice of Termination, and for the sole purpose of settlement of Chargebacks, the parties agree that
HSBC is authorized to holdback from amounts owed to Merchant hereunder (as specified in a written notice delivered by HSBC to Merchant at the time of the holdback), an aggregate amount equal to twelve (12) times the average Monthly Chargeback
volume during the twelve Months preceding such termination (the “Holdback Amount”). HSBC’s right to holdback the Holdback Amount is only exercisable upon written notice delivered by HSBC promptly upon the delivery of a notice of
termination (provided that if the Agreement is not terminated within six Months following the delivery of such notice of termination, HSBC shall promptly remit the remaining Holdback Amount in full.) The Holdback Amount shall be held in trust by
HSBC for Merchant except to the extent HSBC is permitted to setoff amounts due by Merchant to HSBC for Chargebacks against the Holdback Amount. HSBC shall be permitted to setoff amounts due by Merchant to Bank against the Holdback Amount only to the
extent (i) such setoff amounts are amounts of unresolved Chargebacks and (ii) Merchant has not otherwise remitted such Chargeback amounts as required by the terms and conditions of this Agreement. The parties further agree that the
Holdback Amount less amounts applied by HSBC as stated above shall be paid to Merchant within twelve (12) Months after the effective date of termination. 
  

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 ARTICLE 13 - MISCELLANEOUS 
 Section 13.1 Merchant Financial Information. 
 HSBC may annually review Merchant’s financial stability. To assist HSBC in doing
this, Merchant shall deliver to HSBC a financial statement certified by a duly authorized officer or representative of Merchant with knowledge of the accuracy of the information contained therein, including, without limitation, all footnotes, and
supporting materials with sufficient detail to accurately portray the financial condition of Merchant, Merchant warrants and represents that its financial statements submitted to HSBC by or on behalf of Merchant are true and accurate and Merchant
agrees to supply such additional financial information as HSBC may reasonably request from time to time. Merchant understands that HSBC may verify the information on any financial statement or other information provided by Merchant and, from time to
time, may seek credit and other information concerning Merchant from others and may provide financial and other information regarding the portfolio to its Affiliates or to others for purposes of its asset securitizations and sales. 
 Section 13.2 Securitization. 
 HSBC shall have the right to
securitize the portfolio or any part thereof by itself or as part of a larger offering at any time. Such a securitization shall not affect Merchant’s rights or HSBC’s obligations with respect to customer service, payment processing, and
collections. However, HSBC shall not securitize the Accounts in any manner that may encumber Merchant’s, or its third party designee’s, right to purchase the Accounts upon termination. 
 Section 13.3 Limited License 
 Merchant hereby authorizes HSBC
for purposes of this Agreement to use Merchant’s Proprietary Designations on the Cards, applications, periodic statements, billing statements, collection letters or documents, promotional or advertising materials and otherwise in connection
with the Program, subject to Merchant’s periodic reasonable review of such use and to such reasonable specifications of Merchant. Merchant represents and warrants that it has obtained appropriate federal and state trademark registrations to
protect its interest in the use and ownership of its Proprietary Designations. Merchant shall, indemnify, defend and hold HSBC harmless from any loss, damage, expense or liability arising from any claims of alleged infringement of its Proprietary
Designations (including reasonable attorneys’ fees and costs). Merchant may not use any name or service mark of HSBC or any of its Affiliates in any manner without the prior written consent of HSBC . 
 Section 13.4 Material Inducement 
 Merchant acknowledges and
agrees that HSBC is specifically relying on the agreements, representations, warranties and waivers contained herein and that such agreements, representations warranties and waivers constitute a material inducement to HSBC to accept this Agreement
and to enter into the transactions contemplated herein. 
  

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 Section 13.5 Confidentiality 
 Merchant will keep confidential and not disclose to any person or entity (except to employees, officers, partners or directors of Merchant who are engaged in the implementation and execution of the Program) and shall
use, or cause to be used, such Confidential Information solely for the purposes of the performance of Merchant’s obligations under the terms of this Agreement. HSBC will keep confidential and not disclose to any person or entity (except
employees, officers, agents or directors of HSBC or its Affiliates who are engaged in the implementation and execution of the Program) this Agreement and any information that HSBC receives from Merchant which is designated confidential by Merchant.
In the event HSBC sells or assigns the Accounts or any portion of the Accounts under the Program, unless prohibited by law, HSBC may disclose any Confidential Information under this provision reasonably necessary or required to effectuate such sale
or assignment. 
 The confidentiality provisions set out herein do not apply to HSBC Holdings plc (“HSBC plc”) nor any subsidiary or division
thereof other than HSBC Bank Nevada, N.A. except to the extent that HSBC plc staff or staff within such other subsidiary or division receive Confidential Information from HSBC plc, in which such case the obligations set forth herein will upon and
from the date of such receipt be taken to apply to HSBC plc or any such other subsidiary or division. 
 Section 13.6 Information Security

 Merchant has developed, implemented, and will maintain effective information security policies and procedures that include administrative, technical
and physical safeguards designed to 1) ensure the security and confidentiality of Confidential Information provided to Merchant hereunder, 2) protect against anticipated threats or hazards to the security or integrity of such Confidential
Information, 3) protect against unauthorized access or use of such Confidential Information, and (4) ensure the proper disposal of Confidential Information. All Merchant personnel handling such Confidential Information have been appropriately
trained in the implementation of Merchant’s information security policies and procedures. Merchant regularly audits and reviews its information security policies and procedures to ensure their continued effectiveness and determine whether
adjustments are necessary in light of circumstances including, without limitation, changes in technology, customer information systems or threats or hazards to Confidential Information. 
 Section 13.7 Privacy. 
 Merchant shall not make any unauthorized disclosure of or use any personal information of
individual consumers which it receives from HSBC or on HSBC’s behalf other than to carry out the purposes for which such information is received, and Merchant and HSBC shall comply in all respects with all applicable requirements of Title V of
the Gramm-Leach-Bliley Act of 1999 and its implementing regulations. 
 Section 13.8 Reports; Examination Rights. 
 Merchant shall keep an accurate record of all transactions that occur under this Agreement. HSBC or its agent may examine the books and records of Merchant that are
relevant to this Agreement. Any such examination will be conducted during normal business hours upon no less than ten (10) days advance written notice to Merchant. Merchant will cooperate fully with HSBC and/or its agent and allow inspection of
its relevant books and records in order to review and assess Merchant performance of and compliance with the terms of this Agreement including, without limitation, the sufficiency of Merchant information security policies and procedures with respect
to HSBC’s Confidential Information. In evaluating the sufficiency of Merchant’s information security policies and procedures, HSBC shall be provided access to reports of audits, tests and/or other evaluations of Merchant’s information
security policies and procedures conducted by Merchant in the ordinary course of its business. 
  

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 Section 13.9 OCC Examinations 
 Merchant acknowledges that, pursuant to 12 U.S.C. § 1867(c), its performance under this Agreement may be subject to examinations by the Office of the Comptroller of Currency. 
 Section 13.10 Merchant’s Agents. 
 In the event Merchant
desires that HSBC provide a third party access to certain Program information of HSBC to which Merchant is otherwise entitled in connection with this Agreement, Merchant shall direct and authorize HSBC to do so, but before HSBC is obligated to do
so, the following must occur: (a) Merchant shall enter into a written agreement with that third party pursuant to which that third party shall agree to act as Merchant’s agent in receiving information provided by HSBC, to only use such
information as Merchant’s agent in connection with the Program and for no other reason, to use such information and to otherwise act in compliance with applicable law, including, without limitation, the Gramm-Leach-Bliley Act of 1999 and its
implementing regulation; (b) Merchant shall provide a copy of such agreement to HSBC; (c) Merchant shall cause such agent to use any such information in accordance with the aforementioned agreement; and (d) such agent shall be
required to enter into an agreement with HSBC which contains confidentiality provisions and other terms governing the provision of such information to that agent. Notwithstanding HSBC’s agreement with such agent, Merchant shall be responsible
for the acts of that agent. 
 Section 13.11 Change in Ownership. 
 Merchant agrees to send HSBC at least thirty (30) days’ prior written notice of any change in Merchant’s name or location, any material change in ownership of Merchant’s business or any change in
Sales Slip or Credit Slip information concerning Merchant. 
 Section 13.12 Nonwaiver. 
 Merchant’s liability under this Agreement shall not be affected by any settlement, extension, forbearance, or variation in terms that HSBC may grant in connection
with any Sales Slip or Account or by the discharge or release of the obligations of the Cardholders) or any other person by operation of law or otherwise. 
 Section 13.13 Status of the Parties. 
 In performing their responsibilities pursuant to this Agreement, HSBC and Merchant are in the
position of independent contractors, and in no circumstances shall either party be deemed to be the agent or employee of the other. This Agreement is not intended to create, nor does it create and shall not be construed to create, a relationship of
principal and agent, partner or joint venturer or an association for profit between HSBC or Merchant. Any amounts ever owing by Merchant pursuant to this Agreement represent contractual obligations only and are not a loan or debt. 
  

 22 

 Section 13.14 Force Majeure. 
 Neither party to this Agreement shall be liable to the other by reason of any failure in performance of this Agreement in accordance with its terms if such failure arises out of a cause beyond the control and without
the fault or negligence of such party. Such causes may include but are not limited to acts of God, of the public enemy or of civil or military authority, unavailability of energy resources, system or communication failure, delay in transportation,
fires, strikes, riots or war. In the event of any force majeure occurrence, the disabled party shall use its best efforts to meet its obligations as set forth in this Agreement. 
 Section 13.15 Additional Products and Services. 
 HSBC and/or any of its Affiliates may at any time, whether
during or after the term of this Agreement and whether the Accounts are owned by HSBC, solicit Cardholders for any other credit cards or other types of accounts or financial or insurance services or products offered by HSBC and/or any of its
Affiliates. 
 Section 13.16 Notices. 
 All notices
required or permitted by this Agreement shall be in writing and shall be sent to the respective parties as follows: if to HSBC, to the Attention of President, (with a copy to the Attention of General Counsel, HSBC Retail Services Law Department,
2700 Sanders Road, Prospect Heights, Illinois 60070); if to Merchant, to the Attention of Curtis Kimbrell, President & Chief Executive Officer and Lewis Brubaker, Senior Vice President & Chief Financial Officer at their respective
addresses set forth on page five of this Agreement or such other addresses as each party may designate to the other by notice hereunder. Said notices shall be deemed to be received when sent to the above addresses (i) upon three
(3) Business Days after deposit in the U.S. first class mail with postage prepaid, (ii) upon personal delivery, or (iii) upon receipt by telex, facsimile, or overnight/express courier service or mail. 
 Section 13.17 Amendments and Supplementary Documents. 
 Reference
herein to “this Agreement” shall include any schedules, appendices, exhibits, and amendments hereto. HSBC may unilaterally amend this Agreement upon ten (10) days’ prior written notice to Merchant if such modification is
reasonably determined by HSBC to be required by any state or federal law, rule, regulation, governmental or judicial order, opinion, interpretation or decision. 
 Any other amendment or modification to this Agreement must be in writing and signed by a duly authorized officer of HSBC and Merchant to be effective and binding upon the parties; no oral amendments or modifications shall be binding upon
the parties. 
 Section 13.18 Assignment. 
 This
Agreement is binding upon the parties and their successors and assigns. Notwithstanding, Merchant may not assign this Agreement without the prior written consent of HSBC. Any merger, consolidation, transfer of assets or other transfer of control
(defined to be a transfer on a cumulative basis of more than 25% of voting control) shall be deemed to be an assignment expressly prohibited by this Section 13.18 without the prior written consent of HSBC. Any purported assignment without such
consent shall be void. HSBC may without Merchant’s consent assign this Agreement or any of the rights or obligations hereunder to any Affiliate of HSBC at any time. In the event of such assignment, the assignee shall have the same rights,
remedies and obligations as HSBC under this Agreement. 
  

 23 

 Section 13.19 Nonwaiver and Extensions. 
 This section intentionally omitted. 
 Section 13.20 Rights of Persons Not a Party. 
 This Agreement shall not create any rights on the part of any person or entity not a party hereto, whether as a third party beneficiary or otherwise. 
 Section 13.21 Section Headings. 
 The headings of the sections of
this Agreement are for reference only, are not a substantive part of this Agreement and are not to be used to affect the validity, construction or interpretation of this Agreement or any of its provisions. 
 Section 13.22 Integrations. 
 This Agreement contains the entire
agreement between the parties. There are merged herein all prior oral or written agreements, amendments, representations, promises and conditions in connection with the subject matter of this Amended and Restated Agreement. Any representations,
warranties, promises or conditions not expressly incorporated herein shall not be binding on either party. 
 Section 13.23 Governing
Law/Severability. 
 This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to the conflicts
of law principles of Nevada. If any provision of this Agreement is contrary to Applicable Law, such provision shall be deemed ineffective without invalidating the remaining provisions hereof. 
 Section 13.24 Jurisdiction. 
 Any suit, counterclaim, action or
proceeding arising out of or relating to this agreement must be brought by the parties solely in the United States District Court for the District of Delaware. Merchant and HSBC hereby irrevocably submit to the exclusive jurisdiction of such court
and any appellate courts thereof for the purpose of any such suit, counterclaim, action, proceeding or judgment (it being understood that such consent to the exclusive jurisdiction of such courts waives any right to submit any disputes hereunder to
any courts other than those above). 
 Section 13.25 WAIVER OF JURY TRIAL. 
 HSBC and Merchant hereby knowingly, voluntarily and intentionally waive any right to a trial by jury in any action, suit, proceeding or counterclaim concerning any rights under this agreement, any related document or
under any other document or agreement delivered or which may in the future be delivered in connection herewith or therewith, or arising from any relationship existing in connection with this agreement, and agree that any such action, suit,
proceeding or counterclaim shall be tried before a court and not before a jury; this provision is a material inducement for HSBC and merchant entering into this agreement. 
  

 24 

 IN WITNESS WHEREOF, HSBC and Merchant have caused their duly authorized representatives to execute this Merchant
Agreement as of the date set forth above. 
  

									
	HSBC BANK NEVADA, N.A.	 		 	ATTESTED OR WITNESSED
					
	By:	 	/s/ Richard C. Klesse	 		 	By:	 	/s/ Mary J. Balboa
	Print Name: Richard C. Klesse	 		 	Print Name: Mary J. Balboa
	Title: Exec. Vice President	 		 	Title: Exec. Asst.
			
	ROOMSTORE, INC.	 		 	ATTESTED OR WITNESSED
					
	By:	 	/s/ Lewis M. Brubaker, Jr.	 		 	By:	 	/s/ Brian D. Bertonneau
	Print Name: Lewis M. Brubaker, Jr.	 		 	Print Name: Brian D. Bertonneau
	Title: Sr. VP & CFO	 		 	Title: S. V. P. & G. C.
				
		 	54-1832498	 		 	

 RoomStore Inc.’s Federal Tax ID #: 
  

 25 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
  

 26 

 Schedule 2.3 
 Promotional Credit Plan Discounts 
 (a) Merchant will pay HSBC and HSBC is permitted to deduct from funding, the
Promotional Credit Plan Discounts as set forth in Table 2.3(a). 
 (b) The Promotional Credit Plan Discounts in Table 2.3(a) will not change prior to
November 1, 2005. Beginning on November 1, 2005, the Promotional Credit Plan Discounts will adjust quarterly (i.e. every November 1, February 1, May 1, and August 1) based on the change, if any, in LIBOR
measured at the end of the previous September, December, March, and June, respectively. The adjusted Promotional Credit Plan Discounts would equal the product of the LIBOR change (Current LIBOR minus Base LIBOR) multiplied by the particular
multiplier provided in Table 2.3. Examples of two (2) LIBOR adjustments, representing a .25% increase and decrease in Base LIBOR are included below in Table 2.3(b) 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 (2 pages of confidential information omitted pursuant to the
request for confidential treatment.) 
  

 27 

 Schedule 4.1 
 Cardholder Terms and Conditions 
 (a) Annual Percentage Rate. The APRs to be charged on purchases with the Card shall
remain at the levels current to the execution of this Agreement. For purposes of clarification, the current rates are as follows: the rate of the Prime Rate plus 14.4% for the Standard APR and the rate of the Prime Rate plus 18.4% for the Default
APR. 
 Both parties agree that, following the Effective Date, HSBC may raise the APRs to be charged on purchases with the Card, to the rate
of the Prime Rate plus 15.9% for the Standard APR and the rate of the Prime Rate plus 19.9% for the Default APR. Notwithstanding the foregoing, at all times subject to this Agreement, no APR shall exceed the maximum interest rate allowable by
Applicable Law, and any APRs shall be subject to change from time to time by HSBC upon notice to Merchant. 
 (b) Cardholders or applicants will not be
charged any application fees, annual membership or other periodic fees for the Card, or any other activity or inactivity fees. 
 (c) Cardholders will be
charged fees for late or missed payments according to amounts established by HSBC. 
 (d) Grace Period. Cardholders will have a grace period before
interest is charged or billed to an Account in accordance with the Cardholder Agreement. 
 (e) Late Fee Assessment Date. Cardholders will be assessed
a late fee if the payment is not received by the payment due date. 
 (f) Minimum Payment. The Cardholder’s minimum monthly payment will be
established by HSBC. 
 (g) Other Fees. Cardholders will not be charged an overlimit fee but will be charged for every returned check. 
 (h) Minimum Finance Charge. The Cardholder’s minimum finance charge will be established by HSBC. 
 (i) Both parties acknowledge that HSBC can, in its sole discretion, change any of the Cardholder Terms and Conditions, upon notice to Merchant, provided that any change
is either consistent with Applicable Law, good business practice, or industry standard. 
  

 30 

 FIRST AMENDMENT TO THE 
 AMENDED AND RESTATED MERCHANT AGREEMENT 
 This First Amendment to this
Amended and Restated Merchant Agreement (“First Amendment”) is made and entered into as of this 30 day of November, 2005 (“Amendment Effective Date”) by and between HSBC Bank Nevada, National Association (“HSBC”) and
RoomStore, Inc. (“RoomStore”) to the Amended and Restated Merchant Agreement between the parties dated as of September 1, 2005 (“Agreement”). 
 WHEREAS, both parties desire to amend the provisions of the Agreement as provided herein. 
 NOW
THEREFORE, in consideration of the mutual promises, covenants and agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HSBC and RoomStore do hereby agree as follows:

  

	1.	Insert a new Section 2.7 of the Agreement as follows: 

 “Section 2.7 Debt Cancellation. 
 HSBC may offer a Debt Cancellation Product to Cardholders as set forth in Schedule
2.7” 
  

	2.	Insert a new Schedule 2.7 to the Agreement as follows: 

 “Schedule 2.7 
 DEBT CANCELLATION 
 1. Offering of Debt Cancellation. HSBC shall offer an optional debt cancellation product (“Debt Cancellation”) to all Cardholders (including potential Cardholders) which may be made available through the
paper Card applications available at RoomStore’s point of sale (“POS”) and through other channels in the states agreed upon by the parties in accordance with the following terms. HSBC will enroll any Cardholder (including potential
Cardholders) who requests enrollment; provided, however, that HSBC retains the right to deny Debt Cancellation benefits to any Cardholder who does not meet the contractual requirements. 
 2. Rights and Obligations of RoomStore. 
  

	(a)	Enrollment. For POS applications, RoomStore shall obtain the signature or initials of Cardholders on Debt Cancellation enrollment forms for those Cardholders who wish to
enroll and transmit such Debt Cancellation enrollments to HSBC for processing. 

  

	(b)	Cardholder Inquiries. RoomStore shall refer all inquiries concerning Debt Cancellation to HSBC on a timely basis. 

  

	(c)	Cancellations and Claims. If any Cardholders direct cancellation or claim-related requests or inquiries to RoomStore, RoomStore shall forward any such requests or inquiries
to HSBC on a timely basis. 

 3. Rights and Obligations of HSBC. 
  

	(a)	Debt Cancellation Forms. HSBC shall develop and print all required Debt Cancellation forms, including the contractual terms and conditions (“Debt Cancellation Terms and
Conditions”). HSBC may, from time to time at its discretion, revise these forms or the information provided to RoomStore, and may require RoomStore to destroy and replace existing forms, including existing Card application forms if the
enrollment forms are attached to or referenced in those forms. 

  

 31 

	(b)	HSBC shall promptly process all forms and send fulfillment packages to all Cardholders containing the Debt Cancellation Terms and Conditions and other information.

  

	(c)	Fees. HSBC shall establish the applicable fees for all Debt Cancellation and will retain sole discretion to amend all applicable fees. 

  

	(d)	Claims. HSBC shall promptly process all claims submitted for Debt Cancellation (“Claims”), and shall maintain the following records of such Claims:

  

	 	(i)	Notification of Claim; 

  

	 	(ii)	Proof of loss; and, 

  

	 	(iii)	Correspondence. 

 HSBC shall be responsible for the
administration, investigation, and verification of Claims in accordance with the Debt Cancellation Terms and Conditions. 
  

	(e)	Servicing. HSBC may enter into a servicing arrangement with any of its affiliates, whereby any such affiliate(s), on HSBC’s behalf, will perform the duties and
obligations of HSBC hereunder. 

 4. Administrative Expense Allowance. 
  

	(a)	POS. Within fifteen (15) days after the end of each month, HSBC shall pay to RoomStore an administrative expense allowance of 35% of the amount equal to: (i) Debt
Cancellation fees billed during that period minus (ii) any refunds of Debt Cancellation fees credited to Cardholder’s Accounts during that period (“Net Written Fees”) that was generated from POS business during that month.

  

	(b)	Telesales. Within fifteen (15) days after the end of each month, HSBC shall pay to RoomStore an administrative expense allowance of 15% of Net Written Fees generated
during that month from telesales. 

  

	(c)	Other Marketing Channels. Within fifteen (15) days after the end of each month, HSBC shall pay to RoomStore an administrative expense allowance of 15% of Net Written
Fees generated during that month from all marketing channels other than POS and telesales, including but not limited to, billing statement inserts, card carriers and bangtails.” 

 3. The terms of this Amendment will remain confidential as provided in the Agreement. 
 To the extent the provisions of this First Amendment are inconsistent with the Agreement, this First Amendment shall govern. 
 This First Amendment supersedes all prior communications and shall be binding upon and inure to the benefit of the parties, their respective successors
and assigns. 
 All capitalized terms not otherwise defined herein shall have the same meaning afforded them in the Agreement. 
 Except as otherwise modified herein, the terms and conditions of the Agreement remain in full force and effect. 
  

 32 

 IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this First Amendment as of
the Amendment Effective Date set forth above. 
  

									
	RoomStore, Inc.	 		 	HSBC Bank Nevada, National Association
					
	By:	 	/s/ Lewis M. Brubaker Jr.	 		 	By:	 	/s/ Richard Klesse
	Authorized Signature	 		 	Authorized Signature
			
	Lewis M. Brubaker, Jr.	 		 	Richard Klesse
	Name (Type or Print)	 		 	Name
			
	Sr. VP & CFO	 		 	EVP
	Title	 		 	Title

  

 33 

 SECOND AMENDMENT TO THE 
 AMENDED AND RESTATED MERCHANT AGREEMENT 
 This Second
Amendment to the Amended and Restated Merchant Agreement (“Second Amendment”) is made and entered into as of the 27th day of March, 2007
(“Amendment Effective Date”) by and between HSBC Bank Nevada, N.A., (“HSBC”) and RoomStore, Inc. (“Merchant”) to that certain Amended and Restated Merchant Agreement dated as of September 1, 2005 and amended by the
First Amendment to the Amended and Restated Merchant Agreement dated as of November 30, 2005 (the “Agreement”). 
 WHEREAS,
the undersigned parties desire to further amend the Agreement; 
 NOW THEREFORE, in consideration of the mutual promises,
covenants and agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, HSBC and Merchant do hereby agree as follows: 
  

	1.	A new Section 2.8 shall be added to the Agreement to read as follows: 

 “Section 2.8 Extended Credit Program 
 “HSBC and Merchant agree to establish an extended
credit program (the “Extended Credit Program”) in accordance with the terms and conditions set forth in Schedule 2.8.” 
  

	2.	A new Schedule 2.8 shall be added to the Agreement to read as follows: 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 (1 page of confidential information omitted pursuant to the
request for confidential treatment.) 
  

 34 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
  

	3.	To the extent the provisions of this Second Amendment are inconsistent with the Agreement, this Second Amendment shall govern. 

  

	4.	This Second Amendment supersedes all prior communications and shall be binding upon and inure to the benefit of the parties, their respective successors and assigns.

  

	5.	All capitalized terms not otherwise defined herein shall have the same meaning afforded them in the Agreement. 

  

	6.	Except as otherwise modified herein, the terms and conditions of the Agreement remain in full force and effect. 

 IN WITNESS WHEREOF, the parties execute this Second Amendment by their authorized representatives. 
  

									
	HSBC Bank Nevada, N.A.	 		 	RoomStore, Inc.
					
	By:	 	/s/ Brian W. Zimpel	 		 	By:	 	/s/ Lewis M. Brubaker, Jr.
	Authorized Signature	 		 	Authorized Signature
			
	Brian W. Zimpel	 		 	Lewis M. Brubaker, Jr.
	Name (Type or Print)	 		 	Name (Type or Print)
			
	Managing Director	 		 	Sr. VP & CFO
	Title	 		 	Title

  

 36 

 THIRD AMENDMENT TO THE 
 AMENDED AND RESTATED MERCHANT AGREEMENT 
 This Second Amendment to this
Amended and Restated Merchant Agreement (“Third Amendment”) is made and entered into as of this              day of March, 2008 (“Amendment Effective Date”) by
and between HSBC Bank Nevada, National Association (“HSBC”) and RoomStore, Inc. (“RoomStore”) to the Amended and Restated Merchant Agreement between the parties dated as of September 1, 2005 (“Agreement”), and the
First and Second Amendments thereto. 
 WHEREAS, both parties desire to amend the provisions of the Agreement as provided herein.

 NOW THEREFORE, in consideration of the mutual promises, covenants and agreements set forth below and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, HSBC and RoomStore do hereby agree as follows: 
  

	 	1.	Effective June 1, 2008, Section 1.1 (h) will be replaced in Its entirety as follows: 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 (2 pages of confidential information omitted pursuant to the
request for confidential treatment.) 
  

 37 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
  

	 	6.	Schedule 2.7 will be re-titled “DEBT CANCELLATION/ENHANCEMENT SERVICES” 

  

	 	7.	Subsection 4 of Schedule 2.7 will be replaced in its entirety as follows: 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
  

 40 

 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
  

	 	12.	The terms of this Amendment will remain confidential as provided in the Agreement. 

 To the extent the provisions of this Third Amendment are inconsistent with the Agreement or the First and Second Amendments thereto, this Third Amendment shall govern. 
 This Third Amendment supersedes all prior communications and shall be binding upon and inure to the benefit of the parties, their respective successors
and assigns. 
 All capitalized terms not otherwise defined herein shall have the same meaning afforded them in the Agreement. 
 Except as otherwise modified herein, the terms and conditions of the Agreement remain in full force and effect. 
  

 41 

 IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Third Amendment as of
the Amendment Effective Date set forth above. 
  

									
	RoomStore, Inc.	 		 	HSBC Bank Nevada, National Association
					
	By:	 	/s/ Lewis M. Brubaker Jr.	 		 	By:	 	/s/ Mike Wheat
	Authorized Signature	 		 	Authorized Signature
			
	Lewis M. Brubaker, Jr.	 		 	Mike Wheat
	Name (Type or Print)	 		 	Name
			
	Sr. VP & CFO	 		 	V.P.
	Title	 		 	Title

  

 42 

 FOURTH AMENDMENT TO THE 
 AMENDED AND RESTATED MERCHANT AGREEMENT 
 This Fourth Amendment to this
Amended and Restated Merchant Agreement (“Fourth Amendment”) is made and entered into as of this,              day of April, 2008 (“Amendment Effective Date”) by
and between HSBC Bank Nevada, National Association (“HSBC”) and RoomStore, Inc. (“RoomStore”) to the Amended and Restated Merchant Agreement between the parties dated as of September 1, 2005 (“Agreement”), and the
First, Second and Third Amendments thereto. 
 WHEREAS, both parties desire to amend the Agreement as provided herein. 
 NOW THEREFORE, in consideration of the mutual promises, covenants and agreements set forth below and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, HSBC and RoomStore do hereby agree as follows: 
 1. The second paragraph of
Section 2.4(c) will be deleted and replaced in its entirety with the following paragraph: 
 “Following the meeting, both parties will work in good
faith over the next one hundred twenty (120) days (the “Approval Rate Cure Period”) to improve the credit customer quality and create a higher in-store application approval rate. If the credit customer quality improves, but the
average in-store application approval rate does not then exceed 47% during the thirty (30) day period following the Approval Rate Cure Period, then either party shall have the right, for ninety (90) days following the expiration of the
Approval Rate Cure Period, to notify the other of its intention to terminate this Agreement, provided Merchant has promoted the program to the consumers during the three consecutive months that resulted in such an Approval Rate Notice being
Issued.” 
 2. The terms of this Amendment will remain confidential as provided in the Agreement. 
 To the extent the provisions of this Fourth Amendment are inconsistent with the Agreement or the First, Second and Third Amendments thereto, this Fourth
Amendment shall govern. 
 This Fourth Amendment supersedes alt prior communications and shall be binding upon and inure to the benefit of
the parties, their respective successors and assigns. 
 All capitalized terms not otherwise defined herein shall have the same meaning
afforded them in the Agreement. 
 Except as otherwise modified herein, the terms and conditions of the Agreement remain in full force and
effect. 
  

 43 

 IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Fourth Amendment as
of the Amendment Effective Date set forth above. 
  

									
	RoomStore, Inc.	 		 	HSBC Bank Nevada, National Association
					
	By:	 	/s/ Lewis M. Brubaker Jr.	 		 	By:	 	/s/ Mike Wheat
	Authorized Signature	 		 	Authorized Signature
			
	Lewis M. Brubaker, Jr.	 		 	Mike Wheat
	Name (Type or Print)	 		 	Name
			
	Sr. VP & CFO	 		 	SVP
	Title	 		 	Title

  

 44Exhibit 10.3

 Exhibit 10.3 
 CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. THE OMITTED NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE COMMISSION. 
 

 
 APPLICATION AND SERVICES AGREEMENT 
 This Application and Services Agreement (this “Agreement”), made as of October 7th, 2005 (the “Effective Date”), is by and
between Furniture.com, Inc., a Delaware corporation, with an office at 85 River Street, Suite 8, Waltham, MA 02453 (“Furniture.com”), and Roomstore, Inc., a Virginia corporation, with an office at 12501 Patterson Avenue, Richmond, VA 23238
(“Client”) (Furniture.com and Client sometimes are referred to herein individually as a “Party” or collectively as the “Parties”). 
 B A C K G R O U N D 
 A. Furniture.com provides applications and services that facilitate the
sale and service of furniture and that typically include the following components: (i) hosting certain software and providing certain software support, customer database hosting and other related services; (ii) populating its service and
the associated database(s) with Client’s data and information; (iii) providing access to the services and the applicable database(s) by Client and its customers and potential customers, and (iv) updating and enabling Client to update
the applicable databases. 
 B. Furniture.com’s services include the Application Services, the Implementation Services and the Custom
Services, each as further described in Section 1 (collectively, the “Services”). 
 C. Furniture.com desires to sell and
deliver the Services to and on behalf of Client, and Client desires to utilize the Services for itself and its customers, in accordance with the terms and conditions of this Agreement. 
 For and in consideration of the premises and mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties, each intending to be legally bound, agree as follows: 
  

	1.	Description of Services 

 (a) Application Services. As
further described in Exhibit A to this Agreement, Furniture.com will provide access to Furniture.com’s proprietary software applications (the “Software”) and perform certain ongoing services (the “Ongoing Services”)
(collectively, the “Application Services”) during the “Term” (hereinafter defined) of this Agreement in consideration for payment of the fees set forth in Exhibit D. As further described in Exhibit A, Furniture.com
will provide the host servers to run the Software, host the www.furniture.com website (the “Furniture.com Website”) and the www.roomstore.com website (the “Client Website”), process and store the Client information
and Customer Information, and provide all necessary facilities, equipment and peripherals used for such purpose (the “System”). 
 (b)
Implementation Services. As further described in Exhibit A, and designated therein under the heading “Implementation Services”, Furniture.com will provide certain services to develop applications and other interfaces in order
to establish connectivity between the systems of Furniture.com and Client and to populate the Software and the applicable database(s) of both the Furniture.com Website and the Client Website with the Client Information (as defined in
Section 6(a)(iii)), including any customization of the Software necessary to initiate the Application Services and reasonably accommodate Client’s particular business and operational requirements (collectively, “Implementation
Services”). Client hereby grants to Furniture.com the limited right to access necessary Client systems (whether owned, licensed or otherwise contracted) solely for the purposes of the foregoing, and for the continuing purpose of performing
Furniture.com’s obligations pursuant to this Agreement. 
 (c) Custom Services. Furniture.com may provide certain additional services in
connection with the implementation and/or operation of the Application Services, subject to terms and conditions to be agreed between the Parties in writing at such time as such services are requested by Client (“Custom Services”).

 (d) SLA’s. The Application Services shall be provided to Client in accordance with the Service Level Agreement (“SLA”) set forth in
Exhibit B. 
  

	2.	Access License; Passwords 

 (a) License. Provided that Client
has paid the applicable fees, and subject to the terms and conditions set forth herein, Furniture.com grants to Client a non-transferable (except as permitted in Section 13(I)), limited license to utilize the Application Services, including the
Software, solely for Client’s own business purposes and the business purposes of its subsidiaries, parent and affiliated companies. The administrative, password protected portions of the Application Services may only be accessed by an
Authorized User (as defined in Section 2(b)). Client is expressly prohibited from sublicensing, selling, renting, leasing, providing service bureau or timeshare services, distributing or otherwise making the Application Services or the Software
available to or for the benefit of third parties other than any third party Authorized Users. 

 (b) Authorized Users. For purposes of this Agreement, an “Authorized User” is an individual;
(i) who is an employee, an agent or other representative of Client, or other authorized third party individuals selected by Client; (ii) who has bean properly issued a valid password that subsequently has not been deactivated, and
(iii) has completed training, conducted by Furniture.com or trainers employed by Client and trained by Furniture.com to use the Application Services. 
 (c) Passwords. (i) Access to the system and database management functions of the Application Services by Authorized Users is enabled only by passwords that Furniture.com supplies to Client for issuance to Authorized Users.
Client is solely responsible for the management and control of those passwords, and Authorized Users shall not be permitted to disclose or transfer a password to any third party. 
 (ii) Client acknowledges (A) that the protection of the passwords issued to Authorized Users is an integral part of Furniture.com’s security
and data protection process and procedures and, further, (B) that Furniture.com and third parties with respect to which Furniture.com acts as a service provider will rely on Client utilizing and maintaining proper password control obligations
and procedures. In the event that Furniture.com has reasonable cause to believe that a password is being improperly used by an Authorized User or is being used by an unauthorized person, Furniture.com reserves the right to deactivate that password
without prior notice to the Client or the affected Authorized User; provided, however, that Furniture.com shall promptly provide notice as soon as practicable thereafter, so that a new password can be provided to Client. 
 (iii) Upon Client’s request, Furniture.com will provide Client users a valid username and password for access to Furniture.com administrative
applications within three (3) business days of Furniture.com’s e-mail receipt of such users’: 
 First name 
 Last Name 
 E-mail Address 
 Phone Number 
 Position in Client organization

 Permissions will be allowed based on the Client functions and permissions enabled for such users’ position in Client organization. Special
permissions may be granted by exception. 
 (d) Client-Unique Materials. In the event that Furniture.com (i) files a petition of bankruptcy or a
bankruptcy proceeding is brought against Furniture.com and not dismissed within sixty (60) days following its filling and Furniture.com fails to perform its obligations under this Agreement, or (ii) Furniture.com ceases to operate its
business in the normal course without providing a successor, provided that this Agreement has not expired or been terminated, and that Client is not, at such time, in breach of this Agreement, upon Client’s written request, Furniture.com shall
deliver to Client any customized or Client-unique source code of the Client Website, together with Furniture.com proprietary materials required to compile such source code into object code, if any (collectively, “Client-Unique Materials”).
Upon Client’s receipt of the Client-Unique Materials as provided herein, Furniture.com’s obligations under the Agreement shall immediately terminate. Furniture.com shall, at such time, grant to Client a limited, non-exclusive,
non-transferable and royalty-free license to use and modify the Client-Unique Materials, solely for Client’s internal purposes to support and maintain the Client Website for Client’s permitted use in accordance with the terms of this
Agreement, which license shall terminate upon the expiration of the then-current (at the time of Client’s receipt of the Client-Unique Materials) Initial Term or Renewal Term of this Agreement. For the avoidance of doubt, during such term,
Furniture.com shall be entitled to the Fees due and owing in accordance with Exhibit D hereto. Upon any provision of Client-Unique Materials in accordance with this Section 2(d), Furniture.com shall provide Client with copies of the
versions of Client information, Customer Information and other content then in use in connection with the Client Website. 
  

	3.	Exclusivity 

 (a) Zip Code Exclusivity. During the Term, in
the zip codes set forth on Exhibit C (the “Exclusive Zip Codes”), except as set forth in Section 3(c) below or as permitted by Client in writing, Furniture.com shall not permit any person or entity other than Client to offer
furniture and related services for sate through the domain name and website “Furniture.com”. In the event that Client expands the geographic area in which it operates to include additional zip codes, such zip codes, if not otherwise then
presently serviced by another client of Furniture.com (or an entity with which Furniture.com is in active negotiations with respect to the servicing of such additional zip codes), and such other zip codes to which the Parties may agree, and
following Furniture.com’s receipt of written notice from Client regarding such expansion, may be added to the Exclusive Zip Codes upon the execution of a written amendment hereto. In the event that Client ceases its delivery or service
operations in any of the Exclusive Zip Codes, and does not subsequently reconstitute such operations in any such zip code within three (3) months of 
  

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such cessation, such zip code shall, upon the expiration of such three (3) month period, cease to be an Exclusive Zip Code hereunder. If, at any time
Furniture.com has a bona fide desire and actual intent to allow a third party the right to offer furniture for sale through the domain name and website “Furniture.com” in the states of Louisiana, Mississippi, Alabama, Georgia, or Florida,
Furniture.com shall provide a written notice to Client stating the zip codes to be offered to the third party. Client shall have a right of first refusal with regard to such zip codes prior to Furniture.com permitting such third party the right to
offer furniture for sale the domain name and website “Furniture.com” and upon written notice to Furniture.com, such zip code shall be added to the Exclusive Zip Codes. If Client exercises its right of first refusal, Client agrees to
commence delivery within such zip code within six (6) months following such exercise. If Client waives its right of first refusal, Furniture.com may enter into an arrangement with such third party; provided, however, if Furniture.com fails to
enter into an agreement with such third party within six (6) months thereafter. Client will again have the right of first refusal with regard to such zip codes. There shall be no geographic limitation with respect to sales or marketing to
Customers through the Client Website. For the purposes of this Agreement, a “Customer” means a person or entity that: (i) browses or purchases Client’s merchandise or services via the Furniture.com Website; and (ii) browses,
makes a purchase on or otherwise interacts with the Client Website. 
 (b) Exclusive On-line Channel. During the Term, Client shall not, directly or
indirectly, itself or through any parent, subsidiary or affiliate, permit its products and related services to be sold on-line to Customers in the Exclusive Zip Codes, other than through the Application Services. For purposes of this Agreement,
“on-line” shall mean through the Internet, the World Wide Web, any similar communication methods, channels or protocols, and any successor thereto. 
 (c) Additional Efforts. Furniture.com and Client hereby acknowledge that the Parties may wish to supplement this Agreement with additional Internet efforts within the Exclusive Zip Codes. Any such initiatives shall be implemented
upon the execution of a written amendment hereto. 
  

	4.	Fees 

 (a) Services Fees. All fees hereunder are described in
Exhibit D. 
 (b) Payments. All payments hereunder shall be in accordance with Exhibit D. 
 (c) Taxes. If any excise, use, property or other taxes, or any other governmental charges or surcharges (including interest, penalties and fines) are due or are
assessed on or with respect to any amounts payable by Client pursuant to this Agreement (other than taxes on the income or employees of Furniture.com), they will be the sole responsibility of, and payable by, Client. 
 (d) Audit. Each Party shall maintain complete, clear and accurate records of all revenues, fees, transactions and related documentation in connection with the
performance of this Agreement (“Records”). All such Records shall be maintained for a minimum of three (3) years or such period required by applicable law, whichever is longer. For the sole purpose of ensuring compliance with this
Agreement, each Party shall have the right, at its sole expense, upon reasonable prior notice and during normal business hours, to conduct a reasonable and necessary copying and inspection of portions of the Records of the other Party that are
directly related to amounts payable to a Party pursuant to this Agreement, which right may, at such Party’s option be exercised by directing an independent certified public accounting firm subject to strict confidentiality restrictions to
conduct such inspection. For the avoidance of doubt, any information disclosed pursuant to any such audit shall be considered the Confidential information of the audited Party. The auditing Party shall pay for the expenses to conduct such audit.
However, if the audit reveals an underpayment by the audited Party of more than five percent (5%) of the amount initially claimed to have been owed to the auditing Party hereunder, the audited Party shall immediately, upon the auditing
Party’s request, pay the amount of such underpayment to the auditing Party and reimburse the auditing Party for its reasonable expenses associated with the audit. 
  

	5.	Client Responsibilities 

 (a) Client Participation.
(i) In conjunction with its obligation to participate in the Implementation Services as set forth and designated as such in Exhibit A and the Client responsibilities designated therein (“Implementation Client
Responsibilities”), Client will assign personnel to perform the applicable tasks and will make commercially reasonable efforts to supply information and otherwise assist as reasonably necessary to affect the commencement of the Application
Services via the Implementation Services. 
 (ii) For the avoidance of doubt, each Party acknowledges and agrees that its respective
obligations under this Agreement may be contingent upon the timely performance by the other Party of such other Party’s obligations under this Agreement, including such other Party’s obligations under Exhibit A. For the further
avoidance of doubt, neither Party shall be held liable for any failure or delay by such Party in meeting any applicable performance or delivery schedule under this 
  

 3 

 
Agreement if such failure or delay is caused by the other Party’s failure or delay in performing any of its obligations hereunder (a “Delay”).
Any such Delay shall result in an automatic extension of the applicable performance or delivery schedule required of such Party by the period of such Delay. 
 (b) Client Access to Internet. Other than connectivity between Client’s systems and Furniture.com’s servers, as established pursuant to the implementation Services and which connectivity shall be the responsibility of
Furniture.com, Client is solely responsible for separately obtaining any software, equipment and services, including connectivity, required for Client to access and communicate with the Application Services. Such requirements are as set forth in
Exhibit E. 
 (c) Accuracy of Client Data and Information. Client is solely responsible for the integrity of all data and information that is
provided to Furniture.com by Client under this Agreement (e.g., the Client Information), including completeness, accuracy, validity, authorization for use and integrity over time, regardless of form and format, and whether or not such data is
used in conjunction with the Application Services. Further, Client and Furniture.com shall jointly work to assure that the initial importing of the Client Information into Client’s database by Furniture.com has been properly performed. Client
shall use commercially reasonable efforts, utilizing Industry standard tools and procedures, to assure that, upon delivery to Furniture.com or incorporation into Furniture.com’s databases, the Client Information that is extracted from
Client’s databases, or which is otherwise provided by Client hereunder, shall not contain any viruses, worms or similar destructive or malicious features, programs or routines. 
 (d) Product Selection. Client represents, warrants and covenants that, commencing no later than six (6) months following the Effective Date and at all times thereafter during the Term that no less than
seventy five percent (75%) of its furniture (excluding accessories) product selection shall be made available through the Application Services, Client shall provide product photography, information, and finish samples or upholstery swatches to
allow accurate and complete presentation of such product selection. 
 (e) Promotion. Client may include the Furniture.com name, logo (if applicable)
and URL (www.furniture.com), as applicable, in Client print, radio, television and on-fine (as defined in Section 3(b)) advertising and promotional activities, including any on-line presence controlled by Client. Unless otherwise
provided by Furniture.com, Client may utilize the logos and marks set forth on Exhibit F. Subject to the terms and conditions of this Agreement, Furniture.com hereby grants to Client, for the Term and solely as necessary to comply with this
Section 5(e), a limited license to utilize the Furniture.com trademarks and logos set forth on Exhibit F, utilizing the colors and proportions provided in such exhibit. 
 (f) No Reverse Engineering. Client shall not attempt to decode, disassemble, copy, transmit, transfer or otherwise reverse engineer the Services, including the Software. 
  

	6.	Mutual Confidentiality 

 (a) Parties’ Obligations. Each
of the Parties agrees: (i) to maintain, in strict confidence at all times any information that it receives prior to and during the Term of this Agreement, whether written or otherwise related to the business of the other Party, including
(A) Client’s data (including data received from Client’s Customers and other Client Information) and information provided to Furniture.com for utilization in connection with the Services, (B) each Party’s sales, marketing
and technical information relating to such Party’s services, customers, partners, financial condition, marketing plans, Orders, Delivered Sales, Returns and Reprocessed Orders (each as defined in Exhibit D) or Order Falloff (as described
at Section 12(f)) information, survey results, order cancellations and activities in general, (C) Furniture.com’s technical information relating to the Software and the Application Services, and (D) the terms and conditions of
this Agreement, including commission percentages (collectively, “Confidential Information”); and (ii) (A) not to disclose, use, transmit, inform or make available to any entity, person, body or governmental agency any of the
Confidential Information, except as a necessary part of the rendering or utilizing of the Services , and, further, (B) to take all such actions as are reasonably necessary and appropriate to preserve and protect the Confidential Information and
the Parties’ respective rights therein in, at all times exercising at least a reasonable level of care. 
 (ii) Notwithstanding the
foregoing, Client acknowledges that in connection with delivery of Application Services, certain of Client’s Confidential Information, in particular, the Client Information, will be hosted by Furniture.com or third parties in accordance with
Section 6(d), on servers that access the Internet. Furniture.com’s only obligation for protection of the Client Information is to provide the hosting security described in Exhibit G. Furniture.com shall have no responsibility or
liability for unauthorized access to or dissemination of Client Information by Authorized Users whether as a result of breach of data security, misappropriation or misuse of passwords or any other cause, other than Furniture.com’s failure to
comply with the security requirements in Exhibit G. 
  

 4 

 (iii) For purposes of this Agreement, “Client Information” means Confidential Information or
other information, about Client’s business, products, services and Customers that Client and/or its Customers deliver to Furniture.com for use in its implementation or performance of the Services, including data and images. Client acknowledges
and agrees that product information in connection with the offering by Furniture.com of Client’s products through the Application Services will be disclosed to the public via the Application Services. 
 (b) Exclusions. Confidential Information shall not include any information (other than Personal Information) that is (i) already known to the receiving Party
at the time of the disclosure; (ii) publicly known at the time of the disclosure or becomes publicly known through no wrongful act or failure of the receiving Party; (iii) subsequently disclosed to receiving Party on a non-confidential
basis by a third party not having a confidential relationship with the other Party hereto that rightfully acquired such information; (iv) communicated to a third party by receiving Party with the express written consent of the other Party
hereto, or (v) legally compelled to be disclosed pursuant to a subpoena, summons, order or other judicial or governmental process, provided the receiving Party provides prompt notice of any such process to the other Party (unless such notice is
prohibited by the terms of such process) so that such Party will first have the opportunity to obtain a protective order prior to any disclosure and in the event that no such protective order is obtained (or the other Party has waived compliance
with the terms of this section), the receiving Party will furnish only that portion of the Confidential Information which it is advised by counsel is legally required and will exercise all reasonable efforts to obtain reliable assurance that
confidential treatment will be accorded the Confidential Information. 
 (c) Need to Know. Each Party agrees to restrict access to the Confidential
Information of the other Party to those employees or agents who require access in order to perform or use the Application Services, Implementation Services or Custom Services, acknowledging that certain Confidential Information of each Party may be
disclosed as part of the Application Services; and, except as otherwise provided, neither Party shall make Confidential Information available to any other person or entity without the prior written consent of the other Party. 
 (d) Outsourcing. Client understands and agrees that Furniture.com may transfer Confidential Information of Client to a third party hosting entity for the purposes
of providing the communications infrastructure, hosting services and/or related support and other operations necessary to deliver all or certain portions of the Services; provided that Furniture.com. in turn, binds such third party to
confidentiality, privacy, security and non-disclosure terms that are at least as protective of Furniture.com’s and Client’s interests as the terms stated herein and discloses to Client the existence of such disclosure to, and the name of,
such third party hosting entity. 
 (e) Destruction or Return of Confidential Information. In the event of termination or expiration of the Term of
this Agreement for any reason, each Party shall promptly return to the other Party, or destroy, as the Parties agree, all copies of the other Party’s Confidential Information that it has received, including Client Information, all copies, notes
or other derivative material relating to the Confidential Information shall be promptly retrieved or destroyed, as agreed, and no such material shall be retained or used by the receiving Party in any form or for any reason. 
  

	7.	Ownership 

 (a) Furniture.com. (i) Furniture.com owns
all rights, title and interest in and to the Services, including the Software. Further, Client agrees that the Application Services screens and any output of the Services, excepting the Client Information and any Customer Information (as defined
below at Section 7(b)), are the property of Furniture.com and subject to United States and other applicable patent, copyright, trademark and trade secret laws and treaties; and Client agrees that it shall not remove, alter or obstruct any
ownership or use legends that Furniture.com places on any such screens or output of the Services. Nothing contained in this Agreement shall be construed as granting Client any rights in or to the Application Services (including the Software and
output of the Application Services), the deliverables from the Implementation or Custom Services or related Furniture.com Confidential Information, other than the right to use the Services and any applicable Confidential Information of Furniture.com
during the Term, in accordance with this Agreement. 
 (ii) Client agrees that Furniture.com has and retains all rights to use any data and
information relating to the Software and Services that it receives from Client including any information that constitutes, or results in, an improvement or other modification to the Software or the Services, but excluding the Client Information and
Customer Information. For the avoidance of doubt, Furniture.com shall own all rights, title and interest in and to any inventions, modifications, discoveries, designs, developments, improvements, processes, software, works of authorship, formulae,
techniques and know-how (“Developments”) which are developed by Furniture.com as a result of the Services, and to the extent that the ownership of any Developments vests in Client, Client hereby assigns all rights, title and interest,
including all intellectual property rights, therein and thereto, to Furniture.com. 
  

 5 

 (iii) All rights (including all intellectual property rights) to and/or with respect to any items,
materials or services relating to the Services, including the Software and the Application Services, not expressly licensed by Furniture.com hereunder, are expressly and exclusively retained by Furniture.com and its licensors. 
 (b) Client. (i) Furniture.com agrees that all Client Information and Customer Information provided to Furniture.com under this Agreement for use in
connection with the Application Services is the property of Client. The domain names for the Client Website are the sole and exclusive property of Client (even if procured and administered by Furniture.com for Client), constitute “Client
Information”, and Furniture.com will only use such domain names in a manner consistent with instructions given by Client relative to the operation of the Client Website. In order for Furniture.com to modify and configure the Client Information
provided by Client to Furniture.com hereunder for use in connection with the Application Services, Client hereby grants to Furniture.com a perpetual, irrevocable license to use, copy, modify, adapt, display and create derivative works from Client
Information provided by Client to Furniture.com. The Parties agree, subject to the rights of Client’s Customers, that information and any other personally identifiable information, submitted by Customers of Client through the Application
Services (the “Customer Information”), shall belong to Client. Client hereby grants to Furniture.com a license to utilize aggregated data derived from the Customer Information, provided that all personally identifiable information is first
removed from such Customer Information, and provided that no aggregated data which would identify the Client shall be used by Furniture.com. The license set forth in the immediately preceding sentence shall be perpetual and Irrevocable with respect
to information relevant to Furniture.com’s financial reporting and analysis and shall be for the duration of the Term with respect to all other Information. 
 (ii) Client shall own all Intellectual Property Rights in and to the Client’s trademarks, service marks, trade names, service names, domain names, symbols, logos, icons, graphic images and copy (collectively,
“Client’s Marks”), Client Website, Client Information and Customer Information. “Intellectual Property Rights” means, on a world-wide basis, any and all now known or hereafter known Tangible and Intangible (i) rights
associated with works of authorship including, without limitation, copyrights, moral rights and mask-works, (ii) rights in Client’s Marks, (iii) trade secret rights, (iv) patents, designs, algorithms and other industrial property
rights, (v) all other intellectual and industrial property rights of every kind and nature and however designated, whether arising by operation of law, contract, license or otherwise, and (vi) all registrations, applications, renewals,
extensions, continuations, divisions or reissues thereof now or hereafter made, existing, or in force (including any rights in any of the foregoing). Furniture.com shall not at any time adopt or use, without Client’s prior written consent, any
variation of Client’s Marks or other Intellectual Property Rights, or any mark likely to be similar thereto or confused therewith. Any and all goodwill arising from Furniture.com’s use of Client’s Marks or Intellectual Property Rights
shall inure solely to the benefit of Client, and neither during nor after the termination of this Agreement shall Furniture.com assert any claim to Client’s Marks, Intellectual Property Rights or associated goodwill. Furniture.com shall use
Client’s Marks in conformance with any trademark guidelines conveyed to Furniture.com by Client from time to time. 
  

	8.	Limited Warranties 

 (a) Standards of Performance. The
Services shall be provided in a professional and workmanlike manner, using personnel with skills and experience appropriate to the applicable components of the Services, in a manner consistent with industry standards, and in accordance with any
specifications set forth in this Agreement and any exhibit thereto (e.g., Exhibit A). As regards the Application Services in particular, Furniture.com warrants that such services shall be consistent with industry standards and conform to the
SLA’s stated in Exhibit B; and in the event of any breach of the SLA’s stated in Exhibit B, Client’s sole and exclusive remedy therefor shall be in accordance with Section 12(g). 
 (b) Disclaimer of Warranties. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, FURNITURE.COM HEREBY EXPRESSLY EXCLUDES AND DISCLAIMS ALL WARRANTIES OF ANY KIND
WHATSOEVER RELATING TO THE SERVICES. WITHOUT LIMITING THE GENERALITY OF THE IMMEDIATELY PRECEDING SENTENCE, FURNITURE.COM DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, INCLUDING THE SOFTWARE AND THE OUTPUT
THEREOF. FURNITURE.COM IS PROVIDING THE SERVICES TO CLIENT WITH NO OTHER WARRANTIES WHATSOEVER, INCLUDING ANY WARRANTIES ARISING FROM COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF THE TRADE. FURTHER, FURNITURE.COM DOES NOT WARRANT THAT THE
SERVICES WILL BE ERROR FREE OR BE PROVIDED (OR BE AVAILABLE) WITHOUT INTERRUPTION. THE FOREGOING DISCLAIMER ALSO APPLIES TO FURNITURE.COM’S SUBCONTRACTORS AND ANY OTHER THIRD PARTY SUPPLIERS OF PRODUCTS AND SERVICES (“SUPPLIERS”).

  

 6 

	9.	Furniture.com Indemnification 

 (a) Indemnity. Furniture.com
will indemnify, defend and hold harmless at Furniture.com’s expense Client, its members, subsidiaries, divisions, parent, other affiliated or related companies or entities, and each of their respective current and former successors, assigns,
directors, officers, agents, representatives, attorneys, fiduciaries, administrators, stockholders and employees (collectively, “Client Covered Entities”) from and against any and all costs, liabilities, losses and expenses, including
reasonable attorney’s fees, and amounts awarded by a court or paid in settlement arising from any claim, suit, action or proceeding brought by any third party against any of the Client Covered Entities (i) that the Services (including the
Software and Systems, but excluding any Client Information and Customer Information) infringe or misappropriate, as applicable, any United States patent, copyright, trade secret, trademark, or any other intellectual property or proprietary rights of
any third party, (ii) that Furniture.com or any of its agents or employees have used Client Information or Customer Information in violation of this Agreement. Furniture.com shall have sole control of the defense with respect to any such claim
(including settlement of such claim). 
 (b) Remedies. If a court of competent jurisdiction or Furniture.com determines that any claim that the
Services or any component thereof, excluding the Client Information and Customer Information, infringe or misappropriate, as appropriate, any United States patent, copyright, trade secret, or trademark, prevails or is likely to prevail,
Furniture.com may, at its option and expense, as its sole and exclusive obligation, and Client’s sole and exclusive remedy for any infringement or misappropriation of intellectual property rights, (i) procure the right for Client to
continue to use the Software, System and Services; (ii) replace or modify the Software, System or Services so that they or it no longer infringe or misappropriate, as applicable, any such United States patent, copyright, trade secret, trademark
or other intellectual property right; or (iii) terminate this Agreement. Client shall, however, have the right to terminate this Agreement on notice to Furniture.com where a claim under Section 9(a) materially disrupts Client’s
business operations related to the Furniture.com Website and/or Client Website. 
  

	10.	Client Indemnification 

 Except as otherwise provided herein, Client
shall indemnify, defend and hold Furniture.com, its directors, officers, employees, its affiliates and customers (collectively, “Furniture.com Covered Entities”) harmless from and against any and all costs, liabilities, losses and expenses
(including reasonable attorney’s fees) resulting from any claim, suit, action or proceeding brought by any third party against the Furniture.com Covered Entities that arise out of the (i) Client’s use or misuse of the Services,
including improperly issuing or managing issued passwords; (ii) the data and information (whether or not Confidential Information) provided by Client in conjunction with the Services; (iii) the consequences of Client’s utilization of
the Services in respect of any third party; or (iv) Client or any of its agents or employees have violated confidentiality, privacy or security obligations with respect to Customer Information. 
  

	11.	Limitation of Liability 

 (a) Liability Limitation.
(i) NEITHER FURNITURE.COM NOR ANY OF ITS SUPPLIERS ON THE ONE HAND, NOR CLIENT ON THE OTHER, SHALL HAVE ANY LIABILITY WHATSOEVER TO THE OTHER PARTY OR ANY OTHER THIRD PARTY FOR LOSS OR DAMAGE OF DATA, REPORTS, SECURITY, LOST PROFITS OR REVENUES
OR SIMILAR ECONOMIC LOSS OR FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) ARISING FROM OR RELATING TO THIS AGREEMENT OR THE SERVICES, INCLUDING THE
OUTPUT THEREOF, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE. 
 (ii) NEITHER FURNITURE.COM NOR ANY OF
ITS SUPPLIERS ON THE ONE HAND, NOR CLIENT ON THE OTHER, SHALL BE LIABLE IN CONNECTION WITH THE PERFORMANCE OR NON-PERFORMANCE OF THIS AGREEMENT OR THE SERVICES FOR ANY DAMAGES IN EXCESS OF THE AMOUNTS CHARGED TO CLIENT FOR THE TWELVE (12) MONTH
PERIOD IMMEDIATELY PRIOR TO THE OCCURRENCE OF THE EVENT THAT GAVE RISE TO ANY SUCH CLAIM. 
 (b) Exclusions. The limitations set forth in
Section 11(a) shall not apply to either Party’s obligations of indemnity or in connection with the protection of Confidential Information or intellectual property rights. The limitation set forth in Section 11(a)(ii) shall not apply
to actions relating to the payment of fees due either Party hereunder. 
 (c) Transmission of Data. Furniture.com is not responsible for loss of data
in transmission. In the event of the improper transmission or loss of data in transmission, Furniture.com will use commercially reasonable efforts to recreate such transmission at Client’s expense. 
 (d) Time Limitation on Claims. No action arising out of this Agreement or the performance or non-performance thereof, other than any action arising out of an
underpayment under Section 4(d), may be brought more than one (1) year after such action arises. 
  

 7 

	12.	Term and Termination 

 (a) Initial Term. The initial term of
this Agreement shall commence on the Effective Date and shall continue in full force and effect for a period of ten (10) years following the date upon which products of Client are first offered to Client’s Customers through the Application
Services (the “Initial Term”). 
 (b) Renewal Terms. At the conclusion of the Initial Term, this Agreement shall renew for additional
periods as the Parties may mutually agree (each a “Renewal Term”). (The Initial Term and any Renewal Terms, collectively, are referred to herein as the “Term”.) 
 (c) Termination for Breach; Insolvency. Either Party may terminate this Agreement upon prior written notice to the other party: (i) if the other Party materially breaches any term or condition of this
Agreement and fails to cure such breach within thirty (30) days after receipt of written notice of the same, subject to Section 12(d); (ii) immediately if the other Party becomes the subject of a voluntary position in bankruptcy or
any voluntary proceeding relating to insolvency, receivership, liquidation or composition for the benefit of creditors; (iii) immediately if the other Party becomes the subject of an involuntary petition in bankruptcy or any involuntary
proceeding relating to insolvency, receivership, liquidation or composition for the benefit of creditors, and such petition or proceeding is not dismissed within sixty (60) days following filing or (iv) if, due to the fault of such other
Party, the Application Services have not been made available to Internet users’ within six (6) months after the Effective Date. 
 (d)
Nonpayment. Ten (10) business days following written notice to Client that its account is past due with regard to amounts that are not subject to a good faith dispute, Furniture.com, in its sole discretion, may terminate or suspend all
or any portion of the Services immediately. 
 (e) Customer Dissatisfaction. Either party may terminate this Agreement, upon thirty
(30) days’ prior written notice to Client, in the event that the results of Furniture.com’s surveys of Client’s Customers (the current form of which is attached as Exhibit I) indicates, in two (2) out of any three
(3) consecutive calendar quarters during the Term, that ten percent (10%) or more of such Customers responded “very dissatisfied” with respect to such Customers’ overall evaluation of Client’s services. Furniture.com
shall conduct the surveys on a regular basis, shall provide Client with the results of such surveys on a monthly basis, and shall notify Client when the ten percent (10%) threshold was met or surpassed in any quarter; provided further, however,
that neither party may terminate this Agreement as aforesaid where such Customer dissatisfaction is in any way attributed to that party’s negligence or failure to perform its obligations under this Agreement. 
 (f) Order Falloff. Furniture.com may terminate this Agreement, upon thirty (30) days prior written notice to Client, in the event that, as calculated on an
annual basis, the Order Falloff Percentage (as defined below) for Orders (as defined in Exhibit D) exceeds the lesser of (i) Client’s historical Order Falloff Percentage, as reported to Furniture.com within thirty (30) days
following the commencement of each calendar year during the Term and (ii) fifteen percent (15%). For purposes hereof, the “Order Falloff Percentage” shall mean the percentage of Orders executed by Customers of Client that, do not
result in Delivered Sales (as defined in Exhibit D). Any surveys used to determine the reason for Order Falloff shall be subject to the reasonable review and approval of Client. 
 (g) Service Level Failure. Client may terminate this Agreement, upon thirty (30) days’ prior written notice to Furniture.com, in the event that Furniture.com fails to achieve the Minimum Application
Services Level Requirement set forth in Section 1(c) of Exhibit B during three (3) of any six (6) consecutive calendar months during the Term. 
 (h) Effects of Termination. Upon the effective date of expiration or termination of the Term of this Agreement, (i) Furniture.com immediately will cease providing Client with the Application Services and
any other applicable component of the Services and all license grants hereunder that are effective for the Term shall immediately cease; (ii) all issued passwords shall be deactivated; and (iii) Client immediately shall pay in full any and
all monies that are owed by the Client under this Agreement and not subject to a good faith dispute for the Services furnished up to the effective date of the termination or expiration of the Term; and (iv) all of Client’s obligations to
market, use or advertise the Application Services shall cease. Notwithstanding the above, provided that Client’s obligations to pay Fees are current, Furniture.com shall cooperate with Client to process any outstanding orders which were placed
prior to the termination of the Application Services in the normal course of business. 
  

	13.	Miscellaneous 

 (a) Insurance. Each Party, at its own
expense, shall procure and maintain policies of insurance to include the following coverage: (i) Workers’ Compensation Insurance coverage for its own employees that meets the statutory limits of the states in which such Party operates, as
well as Employer’s Liability coverage with limits of at least $2,000,000; and, (ii) Comprehensive general liability of at least $4,000,000. Upon request, each Party shall furnish to the other Party a Certificate of Insurance evidencing

  

 8 

 
such coverage and naming the other Party as an additional insured as its interests may appear. Nothing in this section shall be deemed to limit either
Party’s responsibility to the amounts stated above or to any limits of such Party’s insurance policies. 
 (b) Construction. Whenever the
terms “including” or Include” are used in this Agreement in connection with a single item or a list of items within a particular classification (whether or not the term is followed by the phrase “but not limited to” or words
of similar effect) that reference shall be interpreted to be illustrative only, and shall not be interpreted as a limitation on, or an exclusive enumeration of the items within that classification. As used herein, the singular shall include the
plural and the plural may refer only to the singular. The use of any gender shall be applicable to al! genders. The headings and captions contained herein are for purposes of convenience only and are not a part of this Agreement. 
 (c) No Waiver. No waiver of any default, condition or breach of this Agreement shall be deemed to imply or constitute a waiver of any other default, condition or
breach of this Agreement, whether of a similar nature or otherwise. 
 (d) Survival. Sections 4, 5(f), 6, 7, 9, 10, 11, 12 and 13 shall survive any
termination of this Agreement, as well as any other obligations of the Parties that contemplate performance by a Party following the termination or expiration of this Agreement. 
 (e) Governing Law; Venue. This Agreement is governed by the laws of the Commonwealth of Massachusetts, excluding its conflict of laws provisions. The Parties agree that the exclusive venue for any action
brought in connection with this Agreement shall be the federal and state courts located in or having jurisdiction over Boston, Massachusetts and each Party submits to the exclusive personal jurisdiction of such courts for such purpose. 

(f) Notices. Any notices or other communications required or permitted to be given or delivered under this Agreement shall be in writing and shall be
sufficiently given if (i) delivered personally, (ii) mailed by certified or registered mail return receipt requested, postage prepaid, or (iii) sent by overnight guaranteed delivery service, and addressed to the Party’s proper
address as set forth in the beginning of this Agreement or to such other address or addressee as either Party may from time to time designate to the other by written notice. Any such notice or other communication shall be deemed to be given as of
the date it is delivered to the recipient. 
 (g) Severability. In the event that any one or more of the provisions of this Agreement are invalid or
otherwise unenforceable, the enforceability of remaining provisions shall be unimpaired. 
 (h) Force Majeure. Other than with respect to payment
obligations hereunder, in the event that either Party is unable to perform any of its obligations under this Agreement due to a natural disaster, actions or decrees of governmental bodies, telecommunications carriers and other suppliers, terrorist
activities or other events beyond such Party’s reasonable control, such Party’s obligations under this Agreement shall be suspended during the duration of any such event. Customer shall, however, have the right to terminate this Agreement
in the event of a continuous failure of Furniture.com to perform substantially in accordance with the terms and conditions of this Agreement, due to a force majeure event, for a period exceeding fifteen (15) business days in duration.

 (i) Assignment. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties. However,
neither Party may assign this Agreement, in whole or in part, without the prior written consent of the other Party, which consent shall not be unreasonably delayed, conditioned or withheld. 
 (j) Publicity; Marketing. Client agrees that Furniture.com may refer to Client by name, together with a brief description of Client’s business, in any press
releases or advertising and marketing publications utilized or issued by Furniture.com, provided that such references and descriptions are consistent with any mutually agreed press release(s) issued by the Parties. Upon execution of this Agreement,
the Parties agree to issue a press release similar to that attached hereto as Exhibit H. 
 (k) No Third Party Beneficiaries. Nothing in this
Agreement is intended or shall be construed as a third party beneficiary agreement, nor shall this Agreement confer, convey or be deemed to accord any rights to any third party. 
 (l) Independent Contractor. Each Party hereto shall remain an independent contractor and nothing herein shall be deemed to constitute the Parties as partners, agents or joint ventures. Further, neither Party
shall have the authority to act, or attempt to act, or represent itself, directly or by implication, as an agent of the other or in any manner assume or create, or attempt to assume or create, any obligation on behalf of or in the name of the other,
nor shall either be deemed the agent or employee of the other. 
 (m) Equitable Remedies. Each Party acknowledges that a breach of its obligations
under Sections 5, 6 and 7 of this Agreement could cause irreparable harm to the other Party and that monetary damages may be difficult to ascertain. Therefore, without prejudice to the rights and remedies otherwise available to it, each Party shall
be entitled to seek relief by way of injunction or specific performance if the other Party breaches any such provision of this Agreement. 
  

 9 

 (n) Entire Agreement. This Agreement, including all Exhibits, Schedules and Attachments hereto and hereby
incorporated herein; embodies the entire agreement between the Parties and supersedes all previous and contemporaneous agreements, understandings and arrangements with respect to the subject matter hereof, whether oral or written, and may be amended
only by a written instrument duty signed by the Parties. For the avoidance of doubt neither (i) any correspondence (electronic or otherwise) that does not expressly reference this Agreement and the intent of such correspondence to amend this
Agreement and that does not otherwise comply with this Section 12(n); nor (b) any course of conduct, shall operate to amend this Agreement. 
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives, effective as of the Effective Date. 
  

									
	FURNITURE.COM	 		 	ROOMSTORE, INC.
					
	 By:
	 	/s/ Carl Prindle	 		 	 By:
	 	/s/ Sandra B. Nunnally
					
	 Name:
	 	Carl Prindle	 		 	 Name:
	 	Sandra B. Nunnally
		 	(Print)	 		 		 	(Print)
					
	 Title:
	 	President & CEO	 		 	 Title:
	 	V.P. Mktg & Adv.
					
	 Date:
	 	October 11, 2005	 		 	 Date:
	 	Oct. 7, 2005

  

 10 

 EXHIBITS 
  

			
		
	I.	  	Exhibit A – Applications and Services
		
	II.	  	Exhibit B – Service Level Agreement
		
	III.	  	Exhibit C – Zip Codes
		
	IV.	  	Exhibit D – Fees
		
	V.	  	Exhibit E – Required Software, Equipment and Services
		
	VI.	  	Exhibit F – Furniture.com Trademarks and Logos
		
	VII.	  	Exhibit G – Hosting Security Description
		
	VIII.	  	Exhibit H – Press Release
		
	IX.	  	Exhibit I – Form of Survey

 EXHIBIT A 
 APPLICATIONS AND SERVICES 
 Furniture.com will provide Client with Software, Ongoing Services and Implementation
Services to facilitate the sale and service of furniture, home furnishings, related services and any other products or services mutually agreed upon between the parties through use of the Internet. Furniture.com will develop, design, supply,
install, integrate, host, maintain, support and operate the Furniture.com Website and Client Website, through the performance of tasks and activities identified in this Agreement in accordance with the specifications, documentation, acceptance
criteria and service levels set out in this Agreement. Upon Client request, Furniture.com may also provide Custom Services over the course of this agreement. 
  

	I.	Software 

 Furniture.com will provide Client with four
software applications, including: 
  

	 	1.	Furniture.com. In Client zip codes, as defined in Exhibit C, Furniture.com will merchandise Client products online, guide Customers into retail stores, and allow
online purchases. Among other functionality, Furniture.com will allow Client’s Customers to: 

  

	 	a.	Shop by zip code – Furniture.com will tailor merchandise and pricing to that of the Client’s stores in a Customer’s area. 

  

	 	b.	Search for products – Customers will be able to browse for Client merchandise using several types of searches, including keyword, category, advanced, and style searches.

  

	 	c.	Browse bestsellers – Customers will be able to view best selling items, or other items selected to be highlighted. 

  

	 	d.	View product information – Customers will be able to view product images, current pricing, and product features for Client merchandise. Merchandise will be identified as
delivered by Client. 

  

	 	e.	View promotions – Customers will be able to view Client promotional pricing and offers available in their zip code. 

  

	 	f.	View Policies – Customers will be able to view policies governing their purchase based on Client’s store policies. 

  

	 	g.	Find an item in a store – Customers will be able to locate a Client store near them displaying the item based on Client store inventory. 

  

	 	h.	Send messages – Customers will be able to send messages to Client requesting additional merchandise information. 

  

	 	i.	Create a room plan – Customers will be able to design floor plans including Client merchandise using Furniture.com’s interactive Room Planner.

  

	 	j.	Get recommendations – Customers will be able to receive personalized recommendations for merchandise based on preference data derived from other customers in their
region. 

  

	 	k.	Read magazine – Customers will be able to read articles on design. Where practicable, the pictures in these articles may include Client merchandise and link to Client
items. Furniture.com covenants and agrees to update the articles in the magazine on a regular basis. 

  

	 	l.	Save account Information – Customers will be able to save items added to their shopping cart, as well as room plans, addresses and billing information.

  

 A-1 

	 	m.	Purchase items – Customers will be able to purchase Client merchandise online, based on Client inventory availability with orders reviewed and then inserted into
Client’s back-end systems. Customers will be able to receive discounts or other offers by entering promotion codes provided by Client at checkout. Customers will be able to use both credit card and Client private label cards to complete
transactions on Furniture.com. Customers will be able to further customize their orders by purchasing extended warranties or choosing to pick up their merchandise at a store or distribution center rather than having it delivered.

  

	 	n.	Online Order Tracking – Customers will be able to view their order status online. 

  

	 	o.	Online Customer Service – Customers will be able to perform service functions, including changing delivery dates, changing their contact information, or paying a balance
due on their order, based on agreed to business rules. 

  

	 	p.	Email updates – Customers will receive automated e-mails indicating a change to the status of their order based on agreed to business rules. 

  

	 	q.	Satisfaction surveys – Customers will be able to complete online satisfaction surveys evaluating their Furniture.com shopping experience. 

  

	 	r.	Privacy – Customers will be presented with privacy consent language with links to the Client’s privacy policy, consent capture mechanisms and communication
preference options, as mutually agreed by the parties and in compliance with privacy laws and regulations applicable to Client. 

  

	 	2.	Client Website. Furniture.com will develop and host Client’s website www.roomstore.com. The Client Website will include: 

  

	 	a.	All Furniture.com e-commerce and Software capabilities described above, the use of which will not be restricted to the exclusive ZIP codes. 

  

	 	b.	Online order tracking – Customers who have purchased an item in a store will be able to view their order status online. 

  

	 	c.	Online customer service – Customers who track their store orders online will be able to perform service functions, including changing delivery dates, changing their
contact information, or paying a balance due on their order, based on agreed to business rules. 

  

	 	d.	Email updates – Customers tracking their store orders online will receive automated e-mails indicating a change to the status of their order based on agreed to business
rules. 

  

	 	e.	Corporate Information – Customers will be able to find Client company information such as company history, showroom locations, policies, and employment opportunities.

  

	 	f.	Marketing materials – Customers will see current marketing materials and offers as provided by Client. 

  

	 	g.	Custom Pages – Customers will be able to see pages promoting Client store events and enter Client contests. 

  

	 	h.	Credit applications – Customers will be able to apply for Client credit programs online. 

  

	 	i.	Privacy – Customers will be presented with privacy consent language with links to the Client’s privacy policy, consent capture mechanisms and communication
preference options, as mutually agreed by the parties and in compliance with privacy laws and regulations applicable to Client. 

  

 A-2 

	 	3.	Retail Tool. To simplify the process of maintaining merchandise, managing online sales, and updating Client, Furniture.com will provide an internet-based administrative
system for Client. This will be accessible to Client’s Authorized Users, allowing them to do the following with respect to the Client Website and the Client’s merchandise and services on the Furniture.com Website: 

 

	 	a.	Enter product Information – Users will be able to edit and augment product information extracted by Furniture.com from Client’s product-related databases.

  

	 	b.	Create tags – Users will be able to enable store tagging by adding tag templates to Client product information. Ten (10)tag templates (designs) will be developed for
Client. Once product information is associated with a template, tags will be able to be distributed to stores through the Infocenter. 

  

	 	c.	Create promotions – Users will be able to create online promotions to temporarily discount prices of the items sold on Furniture.com. Users will also be able to create
promotion codes to be provided to Customers for use at checkout to receive discounts or other offers and to post marketing materials to Client. 

  

	 	d.	Create e-mail campaigns – Users will be able to create e-mails to be sent to Furniture.com Customers in Client zip codes, Client Website Customers, and/or Client’s
Customer databases, with functionality to manage such e-mail campaigns in accordance with individual Customer privacy preferences. E-mails can include customized content based on online activities. 

  

	 	d.	Manage Internet Orders – Users will be able to look up Internet Customers and view the details of orders placed online. 

  

	 	e.	Messaging – Users will be able to manage and respond to website inquiries from the Furniture.com Website and Client Website. 

  

	 	f.	Update Corporate Info – Users will be able to update corporate information on Furniture.com, the Client Website, and Infocenter. 

  

	 	g.	Reports – Users will have access to reports for their online business, including reports on Written Sales, Delivered Sales, and key website metrics.

  

	 	4.	Infocenter. To enhance the distribution of information from Headquarters to stores, including the generation of store tags, Furniture.com will provide a store intranet for
Client. Functionality will include: 

  

	 	a.	Store home page – Users will see a summary of messages, corporate announcements, product updates and tag updates relevant to that store. 

  

	 	b.	Messages – Headquarters staff will be able to send messages to stores and store groups. 

  

	 	c.	Announcements/bulletins – Headquarters will be able to create and distribute to stores announcements including graphics and attachments. 

  

	 	d.	Online catalog – Stores will be able to access an infernal version of Client’s online catalog for use as a sales aid. 

  

	 	e.	Tags – Stores will be able to print everyday and sale event tags based on current catalog information. Stores will be able to view lists of tags for an event, fags that
need to be reprinted, as well as search for individual tags. 

  

	 	f.	Directories – Stores will be able to search employee directories and store listings. 

  

	 	g.	Knowledge Center– Headquarters will be able to upload materials in PDF format for use in employee training. 

  

 A-3 

 As Client may have previously been presented a number of Furniture.com Applications, the following portion of this
Exhibit A-l entitled “Furniture.com Software Applications” serves to clarify Furniture.com Software included and excluded from this Agreement. þ‘s indicate software features included.

  

			
	 FURNITURE.COM SOFTWARE APPLICATIONS
  

	 Software
	  	 Features

	 Furniture.com Website
	  	þ Regional exclusive rights to traffic generated by Furniture.com as set forth in the Agreement
		  	þ Zip code-customized, online catalog searchable though multiple search functions
		  	þ Dynamic bestsellers and featured items
		  	þ Detailed product descriptions, features, benefits, and policies for Client items
		  	þ Multiple, enlargeable product images
		  	þ Dynamic sale pricing and promotion pages
		  	þ E-mail item to a friend
		  	þ Inventory-based store lookup
		  	þ Customer/Client messaging system
		  	þ Dynamic Room Planner
		  	þ Recommendation engine
		  	þ Online magazine
		  	þ Save-able shopping cart
		  	þ Multi-attribute customer account management
		  	þ Coupon code functionality at check out
		  	þ Real-time inventory lookup at check out
		  	þ Real-time delivery schedule lookup at check out
		  	þ Warranty options at check out
		  	þ Tax and delivery charge calculation at check out
		  	þ Pick-up options at check out
		  	þ Bank card processing
		  	þ Store card processing
		  	þ Credit card security features
		  	þ Fraud defection features
		  	þ Online order tracking
		  	þ Online order service (change delivery date, payments, etc.)
		  	þ Automated E-mailing of order updates
		  	þ Online customer satisfaction surveying
		  	þ Online presentation of Client marketing material
		  	þ Online presentation of Client privacy policy and terms and conditions
		  	þ Privacy consents and preferences

  

 A-4 

			
	 FURNITURE.COM SOFTWARE APPLICATIONS
  

	 Software
	  	 Features

	 Client Website
	  	þ Customized RoomStore website or Furniture.com technology platform
		  	þ Online catalog and order taking process
		  	þ Store customer online order tracking and service
		  	þ Automated E-mailing of store order updates
		  	þ Dynamic policies, FAQ’s, corporate history
		  	þ Dynamic employment listings
		  	þ Dynamic store locations, hours, directions
		  	 þ  Online presentation of marketing material, including print advertising, contests, and other
custom pages

		  	þ Store credit application process, including all necessary disclosure information required by applicable laws and regulations
		  	þ Online presentation of Client privacy policy and terms and conditions
		  	þ Privacy consents and preferences
	 Retail Tool (Back Office)
	  	þ Catalog management tools
		  	þ Tag management tools
		  	þ Item promotion management tools
		  	þ Finance promotion management tools
		  	þ Coupon code management tools
		  	þ E-mail campaign management tools
		  	þ Internet customer look-up and management
		  	þ Internet order management tools
		  	þ Messaging tools for managing customer inquiries
		  	þ Client website management tools
		  	þ Reporting tools
	 Infocenter (Store Intranet)
	  	þ Store “Home Page” containing information relevant to that store
		  	þ Messaging center with real-time messages from HQ to stores
		  	þ Online product catalog with detailed sales aids
		  	þ Posting of corporate announcements and updates, including graphics and attached documents
		  	þ Template driven tagging system, customized by store for everyday and event tags (as needed)
		  	þ Corporate training framework allowing online access to training documents
		  	þ Dynamic store lists and corporate directories

  

 A-5 

	II.	Ongoing Services 

 As Furniture.com is compensated based on
Internet sales, Furniture.com will use commercially reasonable efforts to maximize delivered online sales on behalf of Client. Ongoing Services to this end include: 
  

	 	1.	Marketing services. Furniture.com will use commercially reasonable efforts to actively market and promote awareness of Furniture.com in Client’s region, including:

  

	 	a.	Search engines – Furniture.com will use site design and submission techniques to have Furniture.com return prominently in search engines for the search term
“furniture”. 

  

	 	b.	Online marketing – Furniture.com will enhance Client marketing efforts through national and regional online marketing. 

  

	 	c.	Public relations – Furniture.com will identify and pursue relevant product and editorial placement opportunities in Client’s region. 

  

	 	d.	Promotion support – Furniture.com will work with Client to reflect Client promotional offers and pricing online. 

  

	 	e.	E-mails – Furniture.com will work with Client to develop and implement e-mail marketing strategies for Furniture.com and Client Customers. 

  

	 	2.	Merchandising services. Furniture.com will use commercially reasonable efforts provide an attractive and accurate selection of Client merchandise online, including:

  

	 	a.	Image support – Furniture.com will modify images provided by Client to an agreed to common style. For example, images of individual items will be modified to appear on a
common background. Images will also be calibrated to best reflect the actual color of Items, based on finish samples provided by Client. 

  

	 	b.	Product Information – Furniture.com will identify missing or inaccurate Client Product information. 

  

	 	c.	Copywriting – Furniture.com will provide copywriting services as required. 

  

	 	d.	Reporting and optimization – Furniture.com will provide daily merchandise productivity and out of stock alerts to Client merchandising and adjust online merchandising
based on sales results. 

  

	 	3.	Customer Service services. Furniture.com will use commercially reasonable efforts to ensure successful delivery of orders written over the Internet, Including:

  

	 	a.	Order review – Furniture.com will use agreed upon rules to identity orders needing to be reviewed manually before being sent to Client. For such orders, Furniture.com
will use commercially reasonable efforts to determine the validity of orders through Customer or card provider contact prior to sending these orders to Client. 

  

	 	b.	Customer Inquiries – Furniture.com will respond to Customer inquiries regarding orders that have not yet been inserted into Client systems. 

  

	 	c.	Satisfaction surveying – Subject to Customer privacy preferences, Furniture.com will request via e-mail that Customers with delivered online orders to complete an online
satisfaction survey in order to identify Customer service issues. 

  

 A-6 

	 	4.	Finance services. Furniture.com will use commercially reasonable efforts to ensure efficient processing of online transactions, including: 

  

	 	a.	Monitoring – Furniture.com will monitor accept and decline rates for credit card and store card transactions. 

  

	 	b.	Reporting – Furniture.com will report daily online transactions to allow comparison to Client cash drawer reporting and fund receipts from merchant account providers.

  

	 	c.	Credits – Furniture.com will provide an interface to allow Client to credit online transactions. 

  

	 	5.	Hosting services. Furniture.com will enable access to the Application Services in accordance with the Service Level Agreement in Exhibit B, including:

  

	 	a.	Dedicated Client Lines – Furniture.com will obtain monitor maintains dedicated line between Client and Furniture.com datacenters. 

  

	 	b.	Internet – Furniture.com will monitor and maintain the System (including servers, network appliances, and bandwidth) to provide access to Furniture.com and Client
Website to Client Customers via the Internet. 

  

	 	6.	Upgrade services. Furniture.com will use commercially reasonable efforts to ensure Customers and Clients receive a leading experience with Furniture.com applications
including: 

  

	 	a.	Applications – Furniture.com will work with Client to enhance application appearance and functionality. 

  

	 	b.	Network – Furniture.com will upgrade network and hosting infrastructure Systems to meet Service Level Agreements. 

 As Client may have previously been presented a number of Furniture.com Ongoing Services, the following portion of this Exhibit A-II entitled “Furniture.com
Ongoing Services” serves to clarify Furniture.com Ongoing Services relative to Client Responsibilities. þ‘s indicate Furniture.com services. 
  

 A-7 

 FURNITURE.COM ONGOING SERVICES 
  

								
	 Area
	  	Furniture.com Services	  	 Client Responsibilities

	 Marketing
	  	þ	 	  	Website search engine optimization	  	 Include Websites in offline campaigns,
 including Print, TV, and Radio.
  
 Enter Client promotions and offers into Application Services if cannot be imported directly from Client systems
  
 Copywrite any e-mails unrelated to online sales (e.g., for store only events)

		  	þ	 	  	Paid advertisements on geo-targeted search engines	  
		  	þ	 	  	National and geo-targeted public relations and traffic generation	  
		  	þ	 	  	Display of current Client promotions and offers to customers in Client Zip Codes	  
		  	þ	 	  	Source tracking and placement optimization	  
		  	þ	 	  	Copywriting of e-mails related to online sales	  
		  	þ	 	  	E-mail offer testing	  
		  	þ	 	  	E-mail subject line testing	  
		  	þ	 	  	E-mail frequency optimization	  	
		  	þ	 	  	E-mail content testing	  	
		  	þ	 	  	Sale pricing optimization	  	
		  	þ	 	  	Finance offer optimization	  	
	 Merchandising
	  	þ	 	  	Image generation from source files including room settings, individual item shots, detail shots, and finish Samples	  	 Select items to be sold online
  
 Collect images for online merchandise
  
 Collect fabric swatches for upholstery items to be sold online
  
 Collect finish samples for case goods to be sold online
  
 Add product
information not able to be imported directly from Client product databases
  
 QA product
offering

		  	þ	 	  	Image optimization of source and generated images for Internet	  
		  	þ	 	  	Color correction of images for Internet	  
		  	þ	 	  	Product information review and refinement	  
		  	þ	 	  	Copywriting as needed	  
		  	þ	 	  	Daily merchandising productivity reports	  
		  	þ	 	  	Out-of-stock alerts to merchandising/operations for items that customers attempted to purchase online but were not available	  
		  	þ	 	  	Daily optimization of online presentation	  

  

 A-8 

 FURNITURE.COM ONGOING SERVICES 
  

								
	 Area
	  	Furniture.com Services	  	 Client Responsibilities

	 Customer
 Service
	  	þ	 	  	Online order writing	  	 Manage customer fulfillment, including
 pre-order customer inquiries regarding merchandise or orders inserted in Client systems, adjustments to financial transactions, and delivery of furniture

	  	þ	 	  	Rules-based system to review orders prior to sending to Client	  
		  	þ	 	  	Monitoring of insertion of reviewed orders into Client systems	  
		  	þ	 	  	Responding to Customer inquiries regarding website and orders not yet inserted into Client systems	  
		  	þ	 	  	Displaying Client’s customer service contact information	  
		  	þ	 	  	Online order tracking for store and Internet customers	  
		  	þ	 	  	Automated e-mails to Internet and store customers based on order changes	  
		  	þ	 	  	Satisfaction surveying of store and Internet customers, in accordance with Customer privacy preferences	  
	 Finance
	  	þ	 	  	Monitoring of online transactions	  	 Receive customer funds and manage all aspects of merchant account(s)
  
 Reconcile “Cash Drawer” for Internet sales as required
  
 Process credits and refunds for Internet orders as required

		  	þ	 	  	Daily transaction reporting	  
		  	þ	 	  	Interface to merchant account online transaction system including interface for crediting online transactions	  
		  	þ	 	  	Detailed invoicing of internet sales	  
	 Hosting
	  	þ	 	  	Dedicated network connection from retailer to Furniture.com	  	 Enable continued access to Client systems
  
 Provide contact and response plan in case of Client system or datacenter failure

		  	þ	 	  	99% uptime collocated server farm	  
		  	þ	 	  	Edge caching to speed content delivery	  
		  	þ	 	  	24-7 performance monitoring from multiple locations	  
		  	þ	 	  	Obligations set out in Exhibit B and Exhibit G	  

  

 A-9 

 FURNITURE.COM ONGOING SERVICES 
  

								
	 Area
	  	Furniture.com Services	  	 Client Responsibilities

	 Upgrades
	  	þ	 	  	Ongoing enhancements to Websites, Retail Tool, Infocenter and other system components	  	Ongoing suggestions for enhancements
		  	þ	 	  	Server hardware maintenance, expansion, and upgrades	  	
		  	þ	 	  	Server operating system evaluations and upgrades	  	

  

 A-10 

	III.	Implementation Services 

 Furniture.com will establish
connectivity between Client systems and Funiture.com Applications. In addition, Furniture.com will configure the Furniture.com Applications as necessary to initiate the Application Services and reasonably accommodate Client’s particular
business and operational requirements. 
 While implementation tasks and responsibilities will vary based on Client’s systems and procedures, a plan for
which will be developed in conjunction with Client and included in a Project Plan, the following portion of this Exhibit A-III entitled “Furniture.com Implementation Services” serves to clarify Furniture.com usual Implementation
Services relative to Client Responsibilities. þ‘s indicate Furniture.com services. 
  

					
	 FURNITURE.COM IMPLEMENTATION SERVICES

	 Area
	  	 Furniture.com Services
	  	 Client Responsibilities

			
	 Client Website
	  	 þ      Lead design definition session
	  	Attend design definition session
			
		  	 þ      Develop look-and-feel options
	  	Provide Client design guidelines
			
		  	 þ      Develop sitemap for Client
	  	Review and, if acceptable, approve site map and design options
			
		  	 þ      Develop Client Website on Furniture.com  technology
platform
	  	Select final design
			
	 Merchandising
	  	 þ      Standardize available images
	  	Select items to be sold online
			
		  	 þ      Create additional images as needed
	  	Collect images for online merchandise
			
		  	 þ      Color correct images based on swatches finish
 samples
	  	Collect fabric swatches for upholstery to be sold online
			
		  	 þ      Create detail images based on swatches and finish
 samples
	  	Collect finish samples for case goods to be sold online
			
		  	 þ      Build stored procedures to extract product  information from
available Client data sources
	  	Provide access to product databases in Client systems
			
		  	 þ      Train Client personnel on adding to/modifying  online merchandise

	  	Provide personnel responsible for overseeing online merchandising
			
		  	 þ      Train Client personnel on tagging
	  	Add product information not able to be imported from Client product databases
			
		  	 þ      Review product offering
	  	Add tag templates to merchandise
			
		  		  	Review completed product offering
			
	 Pricing
	  	 þ      Lead business rule design definition session
	  	Attend business rule definition session and identify promotion types in use by Client and Client regional pricing requirements
			
		  	 þ      Customize databases and interfaces to allow import  and/or entry
of regional pricing and Client  promotions and offers
	  	

  

 A-11 

					
	 FURNITURE.COM IMPLEMENTATION SERVICES
  

	 Area
	  	 Furniture.com Services
	  	 Client Responsibilities

			
	 Order Taking
	  	 þ      Review Client point of sale
procedures
  
 þ      Lead business rule definition session
  
 þ      Adapt Furniture.com and order process to Client
 business rules
  
 þ      Build (or co-develop) procedures to read and  insert order related data from and into Client’s  system
  
 þ      Implement order taking on Client Website
	  	 Provide documentation of Client point of sale procedures
  
 Attend business rule definition session
  
 Provide access to order writing-related data/processes in Client’s system
  
 Assist in testing of order taking system

			
	 Customer Service
	  	 þ      Review Client customer service
documentation
  
 þ
      Lead business rule definition session
  
 þ      Adapt Furniture.com customer service process to
 Client business rules
  
 þ      Build (or co-develop) procedures to read/insert  order related date from/to Client’s system
  

þ      Implement customer service functionality on
 Client Website
  
 þ      Assist in training Client customer service  personnel on serving online customers
	  	 Provide documentation of customer service procedures
  
 Attend business rule definition session
  
 Provide access to sales order related data/processes in Client’s system
  
 Coordinate training for customer service personnel
  
 Assist in testing of order tracking/update system

			
	 Finance
	  	 þ      Enable online authorization of cards
based on  Client merchant account provider capabilities
  
 þ      Enable online settlement of transactions based on  Client merchant account provider capabilities
  
 þ      Enable store card credit applications based on  Client merchant account provider capabilities and  in accordance with applicable laws and merchant  account provider
requirements
	  	 Provide credit card and store card merchant account information and contacts
  
 Modify agreements as needed for online sales

  

 A-12 

					
	 FURNITURE.COM IMPLEMENTATION SERVICES
  

	 Area
	  	 Furniture.com Services
	  	 Client Responsibilities

			
	 Stores
	  	 þ      Lead Infocenter and tag design
definition session
  
 þ      Develop 10 tag templates
  
 þ      Assist in introducing online sales effort to Client
 sales personnel
  
 þ      Assist in introduction of infocenter and tagging to  Client sales personnel
	  	 Attend design definition session
  
 Provide design guidelines for tag templates
  
 Review and approve tag templates

			
	 Networking
	  	 þ      Purchase and connect dedicated
network line from  Furniture.com hosting facility to Client data center
  
 þ      Purchase network hardware for termination of  dedicated line as needed
  
 þ      Purchase hosting capacity for additional transactions  as needed
	  	 Provide access to Client data center as required
  
 Assist in termination of VPN and Dedicated line in Client Datacenters/Networks
  
 Enable Internet access for Client users of Furniture.com Applications per Exhibit E

			
	 Marketing
	  	 þ      Develop launch online media plan

  
 þ      Develop launch Public Relations Plan
	  	Plan to incorporate launch publicity in offline (TV, Print, Radio) campaigns

  

 A-13 

	IV.	Custom Services 

 The foregoing Application Services and
Implementation Services are sufficient for the development, launch and operation of the Software, Systems, Services, Furniture.com Website and Client Website, without the need for custom services unless otherwise agreed. No custom services have been
agreed to at this time. 
  

	V.	Terms Applicable to All Services 

 1. Project Plan: Services,
particularly Implementation Services, will be further scoped and described in a project plan mutually agreed in writing by the parties (the “Project Plan”), including schedules for key milestones and deliverables, designation of roles and
responsibilities, Furniture.com and Client key personnel, and acceptance testing schedules and procedures. Furniture.com agrees that time is of the essence for performance of the Services. 
  

	2.	Resources: 

 2.1 Project Manager. Each party shall
designate a Project Manager whom shall be responsible for arranging all meetings between the parties, and for the transmission and receipt of deliverables, Client Information, and any information and notices between the parties. 
 2.2 Adequate Resources. Each Party will identify key personnel involved in the Application and Implementation Services in the Project Plan. Until the
Acceptance Date, neither Party will reassign any of its key personnel, exclusively, to any other client or project, and will provide the other Party with a description of the roles and titles of all individuals assigned to the project team. For the
avoidance of doubt, the parties acknowledge that such key personnel may be utilized in connection with other clients or projects. 
 2.3
Escalation. In the event that the Project Manager has not responded to the other party within a reasonable time frame, the other party’s Project Manager shall have the right to notify the Project Manager’s supervisor and require him or her
to respond to the request and remedy the responsiveness problem to the satisfaction of the other party. 
 2.4 Replacement of Personnel.
Furniture.com shall use commercially reasonable efforts to promptly replace any individual assigned by Furniture.com to perform Services for Client who, in Client’s, reasonable opinion, does not perform in a satisfactory manner, provided that
Furniture.com is provided written notice of any such determination by Client and a reasonable opportunity to investigate such allegations, and Furniture.com shall not assign any such replaced individual any other Services for Client without the
written consent of Client. Client shall not pay an hourly rate or other fee in respect of the time the replacement for any such individual required in order to gain familiarity with the Client’s project. 
 2.5 Written Policies. Furniture.com will ensure that its personnel at all times comply with Client’s reasonable written policies of which
Furniture.com is made aware in writing prior to their enforcement, while on the Client’s premises or while using or accessing the Client’s computer systems and databases as permitted in this Agreement. 
  

	3.	Acceptance Testing: 

 3.1 Furniture.com will notify
Client when it has completed certain milestones or deliverables for the Services, Software, System and Websites as may be expressly set out in the Project Plan. Such work shall be subject to an acceptance test as described in the Project Plan, and
which principles are consistent with this section of the Agreement. In the absence of an acceptance test in the Project Plan, the following shall apply. Within thirty (30) days of delivery and installation of the component of the work, Client
shall have the opportunity to test the work (the “Acceptance Test”) to determine if the work meets 

  

 A-14 

 
the Acceptance Criteria (as defined below). In addition, at the end of the project and prior to the launch of the Websites, Client shall have the opportunity
to conduct an Acceptance Test on the entire system as a whole. If, during the Acceptance Test, Client discovers or becomes aware of any deficiencies, Client shall notify Furniture.com and shall describe such deficiencies. Furniture.com shall
promptly correct all such deficiencies as soon as possible and in any event within twenty (20) days, and Client may perform another Acceptance Test. Once the Client is satisfied, in its sole but reasonable discretion, that all deficiencies have
been corrected and the work meets the Acceptance Criteria the Client agrees to deliver a notice of acceptance to Furniture.com (“Acceptance”). 
 3.2 For the purposes of this Agreement, “Acceptance Criteria” means the descriptions, specifications and warranties set forth in this Agreement and any Project Plan. 
 3.3 The Acceptance of any work under Section 5.1 shall not impair, affect or waive the right of the Client to object to any deficiencies in the work,
whether known or unknown. Undergo circumstance shall use or testing of the work constitute acceptance of it. 
 3.4 If the work fails to
successfully pass the Acceptance Tests for reasons that are not the fault of the Client, the Client may at its sole option by notice to Furniture.com either: (i) accept the work at its then level of performance, but without diminishing
Furniture.com’s obligation to remedy all deficiencies, or (ii) reject the work if a deficiency or deficiencies have not been cured by Furniture.com within a reasonable period of time, as determined by the Client at its sole discretion.

 4. Changes to the Websites: All changes requested by Client to the Client Website and/or to the Client’s product and service information and
content in the Furniture.com Website other than enhancements to the Software features and functionality (a “Change”) will be considered by Furniture.com. If the Change requires the payment of additional fees to Furniture.com (e.g., Custom
Services), Furniture.com with notify Client and specify the amount of such fees required to implement the Change and undertake to implement the Change upon the mutual written agreement of the Parties. 
 Notwithstanding the foregoing: 
  

	(a)	Editorial Changes: Replacing existing images or text can usually be accomplished within two (2) business days. There is no charge to client. 

  

	(b)	Design Changes: The timing associated with creating new, or redesigning existing, pages (e.g., moving or redesigning existing elements) is dependent upon the level of
complexity. There is no charge to client. 

  

	(c)	Functionality Changes: Timing and cost subject to agreement between the parties. 

  

 A-15 

 EXHIBIT B 
 SERVICE LEVEL AGREEMENT (“SLA”) FOR APPLICATION SERVICES AND SYSTEM ONLY 
  

 B-1 

 While Furniture.com’s fee structure provides substantial incentive for delivering an optimal experience to Client
and Client Customers, Furniture.com also will meet the following service levels. 
 1. APPLICATION SERVICES AND SYSTEM AVAILABILITY 
 (a) Definition. Application Services availability is defined as the amount of time the Application Services, Websites and System are available for access by
Authorized Users and Customers of Client and capable of performing operations in accordance with this Agreement. 
 (b) Measurement. The measurement
for Application Services availability is based on the amount of time (excluding scheduled maintenance downtime) that the Application Services are available to Authorized Users and Customers of Client and capable of performing operations in
accordance with this Agreement. Non-availability is the amount of time that the Application Services are neither available nor capable of performing such operations. The measurement for unavailability for the Application Services is the time elapsed
from when the Application Services are not available nor capable of performing operations to when the Application Services become available and capable of performing operations. Daily system logs will indicate availability downtime and will be used
to track outages, and will be provided to Client upon request. Application Services availability for a given month is calculated as a percentage equal to the number of minutes the Application Services are available in the month minus the number of
minutes of scheduled downtime during the month, divided by total number of minutes in the month minus number of minutes of scheduled downtime during the month. Furniture.com will constantly monitor the Application Services availability and promptly
report to Client any periods of unavailability, including any incidence of lost messages or inaccurate data. Within ten (10) days of the end of each calendar month, Furniture.com will provide Client with a report in respect of the previous
month’s Application Services availability. 
 (c) Minimum Application Services Level Requirement. The availability of Application Services will
be available, at a minimum ninety-nine percent (99%) of the time on a monthly basis. The Websites shall be designed and maintained to facilitate fast and simple downloading to the Customer’s device and minimize the time required to
download and allow the Customer to commence interacting with the applicable Website. Furniture.com agrees that the response time to Customers will be within commercially reasonable industry norms. 
 2. SCHEDULED DOWN TIME 
 (a) Definition. There will be a weekly
scheduled downtime period to perform system maintenance, backup and upgrade functions for the Application Services. This period will not exceed four (4) hours per week and will be scheduled in advance. Notification of scheduled downtimes will
be made twelve (12) hours prior to the scheduled downtime, via email to addressees designated by Client. Weekly scheduled maintenance shall only be performed between the hours of 2:00 A.M. and 6:00 A.M. Eastern Standard Time. If a longer
scheduled downtime period is required, Client’s consent is required. Furniture.com will use commercially reasonable efforts to minimize Application Services downtime, even during scheduled downtime. 
 (b) Measurement. The measurement for scheduled downtime for the Application Services is the actual time elapsed from when the Application Services are not
available to perform operations to when the Application Services become available to perform operations, based on the scheduled downtime. Daily system logs will indicate scheduled Application Services downtime and will be used to track outages, and
will be provided to Client upon request. 
  

 B-1 

 3. SECOND LEVEL CLIENT SUPPORT BY FURNITURE.COM. 
 Furniture.com will provide second level support to Client only (not Customers of Client) as described below: 
 (a)
Availability. Furniture.com’s second level support will be available to accept and respond to problem calls from Client from 8:00 A.M. to 5:00 P.M. Eastern Standard Time, Monday through Friday, excluding United States national holidays.

  

	(b)	Definitions of Severity Levels. 

 Severity 1
problems are events that have a significant impact on the operation of the Application Services and a materially adverse impact on the Client and/or the Authorized Users and Customers of Client as described below: 
  

	 	•	 	 Any event that significantly disrupts or threatens to disrupt service levels of the Application Services to Authorized Users and Customers of Client.

  

	 	•	 	 Any online application outage that significantly impacts the online availability service level of the Application Services. 

  

	 	•	 	 Consistent degradation of performance (response time or function) that significantly impairs the Application Services Availability to Authorized Users and Customers
of Client. 

 Severity 2 problems are events that do not have a significant impact on the operation of the
Application Services or Authorized Users’ and Customers of Client’s use of the Application Services, as described below: 
  

	 	•	 	 An error that disables only certain non-essential functions of the Application Services and may result in degraded operations, including without limitation, an
error that results in non-essential computer transactions not processing properly. 

  

	 	•	 	 An error/event that disables only non-essential functions of the Application Services but also adversely affects the use of the Application Services.

 As an example only, and without limitation, an essential function is the processing and administration of Orders via the
Application Services. 
 Severity 3 problems are minor events that do not have a significant impact on the operation of the
Application Services or its access by Authorized Users and Customers of Client. 
  

	(c)	Problem Resolution Response Effort. 

 Severity
1: Furniture.com will assign sufficient resources to resolve the problems within a target resolution timeframe of four (4) hours after receiving notice of the problems, with the goal of maintaining the service levels agreed to in this SLA.
For a Severity 1 problem, Furniture.com will use continuous effort to resolve the problem until the Application Services are back to normal operations. Severity 1 problems will be continuously monitored, and Client will be notified of the status
through email. 
  

 B-2 

 Severity 2: Furniture.com will assign sufficient resources to fix the problem in the target
resolution timeframe. Severity 2 problems that have no workarounds will have a target resolution of two (2) days, depending on the corrective actions required to return the Application Services to normal operations. Furniture.com will
communicate these corrective actions and resolution timeframes to Client through email. 
 Severity 3: Furniture.com will assign
sufficient resources to fix the problem in the target resolution timeframe. Severity 3 problems that have no workarounds will have a target resolution of three (3) days, unless otherwise specified by Furniture.com for a particular problem.

  

 B-3 

 EXHIBIT C 
 ZIP CODES 
 The Exclusive Zip Codes under this Agreement are as follows: 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 (5 pages of confidential information omitted pursuant to the
request for 
 confidential treatment) 
  

 C-1 

 EXHIBIT D 
 FEES 
  

 D-1 

 Exhibit D-1 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 ******************************************************************************** 
 (1 page of confidential information omitted pursuant to the
request for 
 confidential treatment.) 

 EXHIBIT E 
 REQUIRED SOFTWARE, EQUIPMENT AND SERVICES 
 To access and communicate with the Application Services, Client will
require a workstation with the following minimum requirements. 
  

			
	 Workstation Minimum Requirements
  

	Computer/Processor	  	Computer with a 486/66-MHz processor of higher (Pentium processor recommended)
	Operating System	  	Microsoft Windows® 98, Windows 98 Second Edition, Windows Millennium Edition (Windows Me), Windows NT® 4.0 with the high encryption version of Service Pack 6a (SP6a) and higher, Windows 2000, or Windows XP
	Browser	  	Internet Explorer 6.0 or later
	Memory	  	128 MB of RAM minimum
	Display	  	Super VGA (800 × 600) or higher-resolution monitor with 256 colors
	Network	  	Internet connection; Client network connection
	Peripherals	  	Mouse or compatible pointing device

  

 Exhibit E-1 

 EXHIBIT F 
 FURNITURE.COM TRADEMARKS AND LOGOS 
 

 
  

 Exhibit F-1 

 EXHIBIT G 
 HOSTING SECURITY DESCRIPTION 
  

 Exhibit G-l 

	1.	Physical Security 

 Production application services
will be hosted from a remote, secure, guarded facility. The secure facility will exhibit the following features: Restricted access, 24 hour monitoring, certification of identity for access and logging of access. All computer systems and network
cabling supporting application services will be protected. 
  

	2.	Network Transport Security 

 Client private
information will be encrypted by industry standard methods prior to travel over public network segments. 
 Inbound network traffic from
shared network segments will be analyzed as to source and content prior to propagation over the private hosting network and beyond. Inappropriate network traffic will be automatically discarded by firewall software and logged. 
  

	3.	Network Protocol Security 

 Network protocol
sessions will be subject to a rules check verifying source, destination and consistency of protocol behavior. Inappropriate network protocol sessions will automatically be broken by firewall software and logged. 
  

	4.	Application Service Security 

 Access to a subset of
application service features and access to a subset of data by application service features will be restricted. Access to restricted failures and data will be accomplished by authenticating the user and matching the user’s request with
configured rules for access. Authentication will occur by using network transport security and network protocol security. 
  

	5.	Data Security 

 Private data will be secured with
physical, network transport, network protocol and application service security. Additionally sensitive data will be protected by encryption when it is stored. Sensitive data is presently defined as Client Customer payment method details and delivery
address. Private data is also secured against loss by redundant storage and secured remote backup. Furniture.com agrees that it will safeguard Customer information in material compliance with all Federal State and local privacy laws, rules and
regulations applicable to Furniture.com and to Client, Including but not limited the Gramm-Leach-Billey Act of 1999 and the regulations promulgated thereunder. 
 Furniture.com agrees to. comply, with all VISA U.S.A VISA and MasterCard International (hereinafter, each, an “Association” and collectively, the “Associations”) rules and regulations (the
“Association Rules”) regarding the security of cardholder data, and agrees to have proper security measures, as prescribed by the Association Rules. In place for the protection of cardholder data. Any fees, fines or penalties arising from
Furniture.com’s failure to comply with the Association Rules shall be the responsibility of, and paid by, Furniture.com. Furniture.com shall immediately notify Client of any suspected or confirmed loss or theft of any transaction information.
Furniture.com shall provide reasonable access to its applicable locations, subject to reasonable restrictions relating to confidentiality and non-disclosure, to an Association or independent third party acting on behalf of an Association, solely to
verify Furniture.com’s ability to prevent future security breaches in a manner consistent with the requirements of any current or future Association Rules. Furthermore, Furniture.com shall indemnify Client and its bank credit card providers and
their respective successors and assigns against any and all costs, expenses, damages and/or losses resulting, from such breach of security, or loss, or theft of transaction Information caused by Furniture.com’s failure to comply with the then
current Association Rules. 
  

	6.	Ongoing Obligations 

 Furniture.com shall maintain
such hosting security consistent with commercially reasonable North. American professional application service provider and hosting industry standards. 
  

 Exhibit G-1 

 EXHIBIT H 
 DRAFT PRESS RELEASE 
 RoomStore and Furniture.com Announce Agreement 
 – Industry’s Top Website, Technology Platform Will Expand, Enhance “All Aspects” of Leading Retailer  & Its 65 Stores
– 
 WALTHAM, MASS. –
                    , 2005– Furniture.com today announced that it has signed an agreement to provide RoomStore, Inc.—a leading
furniture retailer with 65 stores in six mid-Atlantic and Southern states-with exclusive geographic rights to Furniture.com’s industry-leading web address, online sales and customer service technology platform. 
 Headquartered in Richmond, Virginia, RoomStore operates stores in Pennsylvania, Maryland, Virginia, North Carolina, South Carolina and Texas. The retailer offers a wide
selection of professionally coordinated home furnishings writ leading style, value and service. 
 “We are excited about partnering with The RoomStore
and look forward to contributing to their continued success. Our role will be to utilize the power of our Internet presence and industry-leading technology platform to drive incremental sales, enhance customer service, and streamline operations for
The RoornStore and its 65 locations,” stated Carl Prindle, President and CEO, Furniture.com. 
                         of The RoomStore said the partnership with Furniture.com will be an integral aspect of
The RoomStore’s growth in 2006 and beyond. 
 <“Beyond merging the RoomStore experience with The convenience and ease of online shopping and
service, Furniture.com’s array of leading technologies and services will enhance all of our existing operations–from merchandising and marketing through customer service and support,”>
                    said. 
 Through their
Furniture.com partnership, The RoomStore will quickly gain access to new customers through the Furniture.com address and website; added in-store traffic from website shoppers seeking real life touch tests in local showrooms; incremental revenue
generated through sales on Furniture.com’s website; web-based technology to enhance merchandising and customer service operations for both in-store and online customers; and access to unique preference data generated by Furniture.com shoppers.

 Furniture.com is expected to introduce RoomStore merchandise online during the first half of 2006 as well as launch e-commerce offerings at The
Roomstore’s current website. 
 Currently, Furniture.com’s furniture retail partners include the Levitz and Harlem Furniture chains in the U.S. and
Leon’s Furniture in Canada. Consumers view some 4 million furniture items per day and add $15 million in merchandise to their online shopping carts each week at Furniture.com. 
 About Furniture.com 
 Furniture.com (http://www.furniture.com) offers consumers the best of Internet shopping by
merging the convenience, accessibility and ease of online shopping with the proven infrastructure of North America’s largest furniture retailers. At Furniture.com, consumers quickly browse, compare and buy brand name furniture and accessories,
find decorating advice and product information; and utilize interactive design tools. To complete fee experience, Levitz, Harlem, and The RoomStore Furniture in the U.S., and Leon’s Furniture in Canada, provide customer service and fast,
in-home delivery. Furniture.com, a privately held company, backed by a private equity firm with over $1.0 billion in committed capital, is a member of BBBOnline, TRUSTe, and VeriSign. 
 # # # 
  

 H-1 

 EXHIBIT I 
 FORM OF SURVEY 
 [SEE NEXT PAGE] 
  

 H-2 

 

 
 Your feedback is important to us. Would you kindly take a moment to complete our survey? 
  

					
	1.	  	How easy was it to find what you were looking for on Furniture.com?	  	 ̈  Very easy
		  	  	 ̈  Somewhat easy
		  		  	 ̈  Somewhat difficult
		  		  	 ̈  Very difficult
		  		  	 ̈  NA/don’t know
			
	2.	  	Did you visit a store before placing your order?	  	 ̈  Yes
		  		  	 ̈  No
			
	3.	  	If you spoke to a store sales associate about your order, how was your experience?	  	 ̈  Very satisfactory
		  	  	 ̈  Somewhat satisfactory
		  		  	 ̈  Somewhat unsatisfactory
		  		  	 ̈  Very unsatisfactory
		  		  	 ̈  NA/don’t know
			
	4.	  	How well informed did Furniture.com keep you about your order?	  	 ̈  Very informed
		  	  	 ̈  Somewhat informed
		  		  	 ̈  Somewhat uninformed
		  		  	 ̈  Very uninformed
		  		  	 ̈  NA/don’t know
			
	5.	  	How did you feel about the delivery notification process and scheduling of your delivery?	  	 ̈  Very satisfied
		  	  	 ̈  Somewhat satisfied
		  		  	 ̈  Somewhat dissatisfied
		  		  	 ̈  Very dissatisfied
		  		  	 ̈  NA/don’t know
			
	6.	  	Did the delivery agent keep to the schedule you agreed to?	  	 ̈  Yes
		  		  	 ̈  No
			
	7.	  	How did you feet about the team that delivered your furniture?	  	 ̈  Very satisfied
		  		  	 ̈  Somewhat satisfied
		  		  	 ̈  Somewhat unsatisfied
		  		  	 ̈  Very unsatisfied
		  		  	 ̈  NA/don’t know

  

 H-3 

					
	8.	  	How did you feel about the setup of your furniture?	  	 ̈  Very satisfied
		  		  	 ̈  Somewhat satisfied
		  		  	 ̈  Somewhat unsatisfied
		  		  	 ̈  Very unsatisfied
		  		  	 ̈  NA/don’t know
			
	9.	  	How satisfied are you with the quality of your furniture?	  	 ̈  Very satisfied
		  		  	 ̈  Somewhat satisfied
		  		  	 ̈  Somewhat dissatisfied
		  		  	 ̈  Very dissatisfied
		  		  	 ̈  NA/don’t know
			
	10.	  	How satisfied are you overall with your Furniture.com purchasing experience?	  	 ̈  Very satisfied
		  	  	 ̈  Somewhat satisfied
		  		  	 ̈  Somewhat dissatisfied
		  		  	 ̈  Very dissatisfied
		  		  	 ̈  NA/don’t know
			
	11.	  	How does Furniture.com compare with similar sites you may have visited?	  	 ̈  Much better
		  	  	 ̈  Somewhat better
		  		  	 ̈  Not much better
		  		  	 ̈  Worse
		  		  	 ̈  Never been to another site
			
	12.	  	Based on this experience, how likely are you to shop with Furniture.com again?	  	 ̈  Very likely
		  	  	 ̈  Somewhat likely
		  		  	 ̈  Somewhat unlikely
		  		  	 ̈  Very unlikely
		  		  	 ̈  NA/don’t know
			
	13.	  	How likely are you to recommend Furniture.com to a friend?	  	 ̈  Very likely
		  		  	 ̈  Somewhat likely
		  		  	 ̈  Somewhat unlikely
		  		  	 ̈  Very unlikely
		  		  	 ̈  NA/don’t know
			
	 14.
	  	What did you specifically like about Furniture.com?	  	

											
						
		  	 ̈  Website	  	 ̈  Convenience	  	 ̈  Customer Service	  	 ̈  Delivery	  	 ̈  Search
						
		  	 ̈  Pictures	  	 ̈  Policies	  	 ̈  Prices	  	 ̈  Quality of Furniture	  	 ̈  Selection
		
	 15.
	  	What specific things can we do to improve your satisfaction with Furniture.com?

 

 
  

 H-4

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