Document:

Second Amended and Restated Loan and Security Agreement

 Exhibit 10.30 
 SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 by and between

 FIVE BELOW, INC., 
 as Borrower, 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as Lender 
 Dated: May 16, 2012 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 SECTION 1.
	  	DEFINITIONS	  	 	1	  
			
	 SECTION 2.
	  	CREDIT FACILITIES	  	 	27	  
			
	 2.1.
	  	Revolving Loans	  	 	27	  
	 2.2.
	  	Letters of Credit	  	 	27	  
	 2.3.
	  	Mandatory Prepayments	  	 	29	  
	 2.4.
	  	Cash Dominion; Borrower Account Protocols	  	 	30	  
			
	 SECTION 3.
	  	INTEREST AND FEES	  	 	31	  
			
	 3.1.
	  	Interest	  	 	31	  
	 3.2.
	  	Letter of Credit Fees	  	 	32	  
	 3.3.
	  	Changes in Laws and Increased Costs of Loans	  	 	32	  
			
	 SECTION 4.
	  	CONDITIONS PRECEDENT AND POST-CLOSING DELIVERIES	  	 	33	  
			
	 4.1.
	  	Conditions Precedent to Initial Revolving Loans and Letters of Credit	  	 	33	  
	 4.2.
	  	Conditions Precedent to All Revolving Loans and Letters of Credit	  	 	36	  
	 4.3.
	  	Post-Closing Deliveries	  	 	36	  
			
	 SECTION 5.
	  	GRANT AND PERFECTION OF SECURITY INTEREST	  	 	36	  
			
	 5.1.
	  	Continuing Grant of Security Interest	  	 	36	  
	 5.2.
	  	Excluded Collateral	  	 	38	  
	 5.3.
	  	Perfection of Security Interests	  	 	39	  
			
	 SECTION 6.
	  	COLLECTION AND ADMINISTRATION	  	 	42	  
			
	 6.1.
	  	Borrower’s Loan Accounts	  	 	42	  
	 6.2.
	  	Statements	  	 	42	  
	 6.3.
	  	Collection of Accounts	  	 	43	  
	 6.5.
	  	Taxes	  	 	45	  
	 6.6.
	  	Authorization to Make Revolving Loans	  	 	46	  
	 6.7.
	  	Use of Proceeds	  	 	46	  
			
	 SECTION 7.
	  	COLLATERAL REPORTING AND COVENANTS	  	 	46	  
			
	 7.1.
	  	Collateral Reporting	  	 	46	  
	 7.2.
	  	Accounts Covenants	  	 	48	  
	 7.3.
	  	General Inventory Covenants	  	 	49	  
	 7.4.
	  	Periodic Appraisals	  	 	50	  
	 7.5.
	  	Power of Attorney	  	 	50	  
	 7.6.
	  	Right to Cure	  	 	51	  
	 7.7.
	  	Access to Premises; Periodic Field Audits	  	 	51	  

  
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	 SECTION 8.
	  	REPRESENTATIONS AND WARRANTIES	  	 	52	  
			
	 8.1.
	  	Corporate Existence, Power and Authority	  	 	52	  
	 8.2.
	  	Name; State of Organization; Chief Executive Office; Collateral Locations	  	 	52	  
	 8.3.
	  	Financial Statements; No Material Adverse Change	  	 	52	  
	 8.4.
	  	Priority of Liens; Title to Properties	  	 	53	  
	 8.5.
	  	Tax Returns	  	 	53	  
	 8.6.
	  	Litigation	  	 	53	  
	 8.7.
	  	Compliance with Other Agreements and Applicable Laws	  	 	53	  
	 8.8.
	  	Environmental Compliance	  	 	54	  
	 8.9.
	  	Credit Card Agreements	  	 	54	  
	 8.10.
	  	Employee Benefits	  	 	55	  
	 8.11.
	  	Bank Accounts	  	 	56	  
	 8.12.
	  	Intellectual Property	  	 	56	  
	 8.13.
	  	Subsidiaries; Affiliates; Capitalization; Solvency	  	 	56	  
	 8.14.
	  	Labor Disputes	  	 	56	  
	 8.15.
	  	Material Contracts	  	 	57	  
	 8.16.
	  	Payable Practices	  	 	57	  
	 8.17.
	  	Accuracy and Completeness of Information	  	 	57	  
	 8.18.
	  	Survival of Warranties; Cumulative	  	 	57	  
			
	 SECTION 9.
	  	AFFIRMATIVE AND NEGATIVE COVENANTS	  	 	57	  
			
	 9.1.
	  	Maintenance of Existence	  	 	57	  
	 9.2.
	  	New Collateral Locations	  	 	58	  
	 9.3.
	  	Compliance with Laws, Regulations, Etc.	  	 	58	  
	 9.4.
	  	Payment of Taxes and Claims	  	 	59	  
	 9.5.
	  	Insurance	  	 	59	  
	 9.6.
	  	Financial Statements and Other Notices	  	 	59	  
	 9.7.
	  	Sale of Assets, Consolidation, Merger, Dissolution, Etc.	  	 	61	  
	 9.8.
	  	Encumbrances	  	 	63	  
	 9.9.
	  	Indebtedness	  	 	66	  
	 9.10.
	  	Loans, Investments, Etc.	  	 	68	  
	 9.11.
	  	Restricted Payments	  	 	68	  
	 9.12.
	  	Creation of Subsidiaries	  	 	68	  
	 9.13.
	  	Compliance with ERISA	  	 	68	  
	 9.14.
	  	End of Fiscal Years; Fiscal Quarters	  	 	69	  
	 9.15.
	  	Credit Card Agreements	  	 	69	  
	 9.16.
	  	Change in Business	  	 	69	  
	 9.17.
	  	License Agreements	  	 	69	  
	 9.18.
	  	Foreign Assets Control Regulations, Etc.	  	 	70	  
	 9.19.
	  	Leased Personal Property	  	 	70	  
	 9.20.
	  	Costs and Expenses	  	 	70	  
	 9.21.
	  	Further Assurances	  	 	71	  
	 9.22.
	  	Minimum Excess Collateral Availability	  	 	71	  
	 9.23.
	  	Sale and Leaseback Transactions	  	 	71	  

  
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	 SECTION 10.
	  	EVENTS OF DEFAULT AND REMEDIES	  	 	72	  
			
	 10.1.
	  	Events of Default	  	 	72	  
	 10.2.
	  	Remedies	  	 	74	  
			
	 SECTION 11.
	  	JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW.	  	 	77	  
			
	 11.1.
	  	Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver	  	 	77	  
	 11.2.
	  	Waiver of Notices	  	 	79	  
	 11.3.
	  	Amendments and Waivers	  	 	79	  
	 11.4.
	  	Waiver of Counterclaims	  	 	79	  
	 11.5.
	  	Indemnification	  	 	79	  
	 11.6.
	  	Waiver of Special Damages	  	 	80	  
			
	 SECTION 12.
	  	TERM OF AGREEMENT; MISCELLANEOUS	  	 	80	  
			
	 12.1.
	  	Term	  	 	80	  
	 12.2.
	  	Interpretative Provisions	  	 	80	  
	 12.3.
	  	Notices	  	 	82	  
	 12.4.
	  	Partial Invalidity	  	 	83	  
	 12.5.
	  	Successors	  	 	83	  
	 12.6.
	  	Assignments; Participations	  	 	83	  
	 12.7.
	  	Entire Agreement	  	 	83	  
	 12.8.
	  	USA Patriot Act	  	 	84	  
	 12.9.
	  	Counterparts, Etc.	  	 	84	  
	 12.10.
	  	Release	  	 	84	  
	 12.11.
	  	Intercreditor Agreement	  	 	84	  

  
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 INDEX 
 TO 
 EXHIBITS AND SCHEDULES 

 

			
	 Exhibit A
	  	Form of Borrowing Base Certificate
		
	 Exhibit B
	  	Information Certificate
		
	 Exhibit C
	  	Form of Covenant Compliance Certificate
		
	 Exhibit D
	  	Form of Intercreditor Agreement
		
	 Schedule 1.30
	  	Credit Card Agreements
		
	 Schedule 1.36
	  	Customs Brokers

 [Exhibits A through D have been omitted as certain of these exhibits are either subject to post-closing determinations or
have been separately filed as exhibits to Amendment No. 1 to the Form S-1. The Company agrees to furnish supplementally a copy of these exhibits to the Securities and Exchange Commission upon request.] 

  
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 SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

This Second Amended and Restated Loan and Security Agreement dated May 16, 2012 (the “Agreement”) is entered into by and
between FIVE BELOW, INC., a Pennsylvania corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as successor by merger to Wachovia Bank, N.A. (the “Lender”). 

W I T N E S S E T H: 

WHEREAS, Borrower and Lender are parties to that certain Amended and Restated Loan and Security Agreement dated January 28, 2010 (as
amended from time to time, the “Original Loan Agreement”); and 
 WHEREAS, Borrower and Lender have agreed to modify
and extend the Original Loan Agreement in accordance with the terms referenced herein; and 
 WHEREAS, this Agreement shall be
an amendment and restatement of and substitution for the Original Loan Agreement, but shall in no way be construed as a repayment, novation or satisfaction of the Obligations as defined in the Original Loan Agreement; 

WHEREAS, the Obligations and all Collateral securing the Obligations under the Original Loan Agreement and this Agreement are and shall
at all times be deemed to be continuous; 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth
herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Original Loan Agreement is hereby amended and restated in its entirety and the parties hereto agree as follows: 

SECTION 1. DEFINITIONS 
 For purposes of this Agreement, the following terms shall have the respective meanings given to them below: 
 1.1. “ABL Priority Collateral” shall mean the “Revolving Facility First Lien Collateral” as defined in the Intercreditor Agreement. 

1.2. “Accounts” shall mean all present and future rights of Borrower to payment of a monetary obligation, whether or not earned
by performance, which is not evidenced by chattel paper or an instrument, (a) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, (c) for a
secondary obligation incurred or to be incurred, or (d) consisting of Credit Card Receivables. 
 1.3. “Adjusted
Borrowing Base” shall mean, at any time, the amount equal to the Borrowing Base minus the Minimum Excess Collateral Availability. 

 1.4. “Affiliate” shall mean, with respect to a specified Person, any other Person
which directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with such Person, and without limiting the generality of the foregoing, includes (a) any Person which beneficially owns or
holds ten percent (10%) or more of any class of Voting Stock of such Person or other equity interests in such Person, and (b) any Person of which such Person beneficially owns or holds ten percent (10%) or more of any class of Voting
Stock or in which such Person beneficially owns or holds ten percent (10%) or more of the equity interests. For the purposes of this definition, the term “control” (including with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of Voting Stock, by agreement or otherwise. 
 1.5. “Applicable L/C Rate” shall mean, at any time, the rate
equal to the LMIR Rate, plus the applicable percentage set forth in the definition of “Applicable Margin” for LMIR Rate Loans. 
 1.6. “Applicable Margin” shall mean, at any time, as to the Interest Rate for LMIR Rate Loans and the Interest Rate for Prime Rate Loans, the applicable percentage (on a per annum basis) set
forth below if the Borrower’s Quarterly Average Excess Availability for the immediately preceding fiscal quarter is at or within the amounts indicated for such percentage as of the last day of the immediately preceding calendar quarter:

  

									
	 Quarterly Average Excess Availability
	  	Applicable Margin for
LMIR Rate Loans	 	 	Applicable Margin for
Prime Rate Loans	 
			
	 Availability: less than 33% of then effective Maximum Credit
	  	 	2.25	% 	 	 	1.25	% 
			
	 Availability: less than 75% but greater than or equal to 33% of then effective Maximum Credit
	  	 	2.00	% 	 	 	1.00	% 
			
	 Availability: greater than or equal to 75% of then effective Maximum Credit
	  	 	1.75	% 	 	 	0.75	% 

 provided, that, (i) the Applicable Margin shall be calculated and established once each calendar
quarter and shall remain in effect until adjusted thereafter after the end of such calendar quarter, (ii) each adjustment of the Applicable Margin shall be effective as of the first day of a calendar quarter based on the Quarterly Average
Excess Availability for the immediately preceding calendar quarter, and (iii) notwithstanding anything herein to the contrary, the Applicable Margin beginning as of the Closing Date through the fiscal quarter ending July 31, 2012 shall be
2.00% for LMIR Rate Loans and 1.00% for Prime Rate Loans. 
 1.7. “Asset Sale” shall mean any Disposition of any
property by the Borrower. Notwithstanding the foregoing, none of the following shall constitute “Asset Sales”; (a) any 

  
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Disposition of assets permitted by, or expressly referred to in, Section 9.7 (other than Section 9.7(b)(viii)); (b) so long as the Term Loan Agreement is in effect, any Disposition
of the Term Priority Collateral; and (c) any Disposition of any property by the Borrower for fair market value resulting in less than $250,000 in Net Cash Proceeds per Disposition (or series of related Dispositions) and less than $750,000 in
Net Cash Proceeds in any fiscal year. 
 1.8. “Attributable Indebtedness” shall mean, when used with respect to any
Sale and Leaseback Transaction, as at the time of determination, the present value (discounted at a rate equivalent to Borrower’s then-current weighted average cost of funds for borrowed money as at the time of determination, compounded on a
semi-annual basis) of the total obligations of the lessee for rental payments (and substantially similar payments) during the remaining term of the lease included in any such Sale and Leaseback Transaction. 

1.9. “Bank Product Provider” shall mean Lender, an Affiliate of Lender, or any other financial institution (but in the case of
an Affiliate of Lender or any other financial institution, only to the extent approved by Lender) that provides any Bank Products to Borrower. 
 1.10. “Bank Products” shall mean any one or more of the following types or services or facilities provided to Borrower by a Bank Product Provider: (a) credit cards or stored value cards or
(b) cash management or related services, including (i) the automated clearinghouse transfer of funds for the account of Borrower pursuant to agreement or overdraft for any accounts of Borrower maintained at any Bank Product Provider that
are subject to the control of Lender pursuant to any Deposit Account Control Agreement to which Lender or any Affiliate of Lender is a party, as applicable, and (ii) controlled disbursement services and (iii) Hedge Agreements if and to the
extent permitted hereunder. 
 1.11. “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. § 101,
et seq.), as amended, and any successor statute. 
 1.12. “Borrower” shall mean Five Below, Inc., a Pennsylvania
corporation, in its capacity as Borrower under this Agreement. 
 1.13. “Borrowing Base” shall mean, at any time, the
amount equal to: ninety percent (90%) of the Eligible Credit Card Receivables of Borrower, plus ninety percent (90%) of the Net Recovery Percentage of Eligible Inventory of Borrower multiplied by the Value thereof, minus
Reserves attributable to Borrower. 
 1.14. “Borrowing Base Certificate” shall mean a certificate substantially in the
form of Exhibit “A” hereto, as such form may from time to time be modified by Lender, which is duly completed (including all schedules thereto) and executed by the Senior Vice President of Finance or other chief financial officer of
Borrower and delivered to Lender. 
 1.15. “Business Day” shall mean any day other than a Saturday, Sunday, or other
day on which commercial banks are authorized or required to close under the laws of the Commonwealth of Pennsylvania, and a day on which Lender is open for the transaction of business, except that if a determination of a Business Day shall relate to
any LMIR Rate Loans, the term Business Day shall also exclude any day on which banks are closed for dealings in dollar deposits in the London interbank market or other applicable Eurodollar Rate market. 

  
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 1.16. “Capital Expenditures” shall mean all expenditures for, or contracts for
expenditures for, any fixed or capital assets or improvements, or for replacements, substitutions or additions thereto, which have a useful life of more than one (1) year, including, but not limited to, the direct or indirect acquisition of
such assets by way of offset items or otherwise and shall include the principal amount of capitalized lease payments during the applicable period. 
 1.17. “Capital Leases” shall mean any lease of (or any agreement conveying the right to use) any property (whether real, personal or mixed) which in accordance with GAAP, is required to be
reflected as a liability on Borrower’s balance sheet. 
 1.18. “Capital Stock” shall mean any and all shares,
interests, participations or other equivalents (however designated) of Borrower’s capital stock or other equity interests at any time outstanding, and any and all rights, warrants or options exchangeable for or convertible into such capital
stock or other interests (but excluding any debt security that is exchangeable for or convertible into such capital stock). 

1.19. “Cash Dominion Event” shall mean the occurrence of either: (a) an Event of Default under this Agreement; or
(b) the failure of the Borrower at any time during any Non-Peak Period to maintain Excess Borrowing Availability greater than or equal to twenty percent (20%) of the then-effective Maximum Credit. 

1.20. “Cash Dominion Period” shall mean, with respect to any Cash Dominion Event, the period beginning as of the occurrence of
such Cash Dominion Event and ending after the Borrower has maintained ninety (90) consecutive days during which (a) Excess Borrowing Availability is greater than or equal to thirty-five percent (35%) of the then-effective Maximum
Credit; and (b) no Event of Default has occurred or is continuing. 
 1.21. “Cash Equivalents” shall mean, as of
any date of determination, as to any person, any of the following: (a) securities issued, or directly, unconditionally and fully guaranteed or insured, by the United States of America or any agency or instrumentality thereof (provided that the
full faith and credit of the United States of America is pledged in support thereof) having maturities of not more than one year from the date of acquisition by such person, (b) time deposits and certificates of deposit or bankers’
acceptances of Lender or any commercial bank having, or which is the principal banking subsidiary of a bank holding company organized under the laws of the United States of America, any state or commonwealth thereof or the District of Columbia
having, capital and surplus aggregating in excess of $250,000,000 and a rating of “A” (or such other similar equivalent rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under
the Securities Act of 1933, as amended from time to time, and any successor statute) with maturities of not more than one year from the date of acquisition by such person, (c) commercial paper issued by any person meeting the qualifications
specified in clause (b) above, or incorporated in the United States of America rated at least A-1 or the equivalent thereof by Standard & Poor’s Rating Service or Fitch Rating Limited or at least P-1 or the equivalent thereof by
Moody’s Investors Service Inc., and in each case maturing not more than one year after the date of acquisition by such person, (d) repurchase obligations with a term of not more than thirty (30) days for underlying securities of the
types described in clause (a) above entered into with any financial institution having combined capital and surplus and undivided profits of not less than $1,000,000,000, (e)

  
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repurchase agreements and reverse repurchase agreements relating to marketable direct obligations issued or unconditionally guaranteed by the United States of America or issued by any
governmental agency thereof and backed by the full faith and credit of the United States of America, in each case maturing within ninety (90) days or less from the date of acquisition; provided, that, the terms of such agreements comply with
the guidelines set forth in the Federal Financial Agreements of Depository Institutions with Securities Dealers and Others, as adopted by the Comptroller of the Currency on October 31, 1985, (f) shares of any money market mutual fund that
(i) has substantially all of its assets invested continuously in the types of investments referred to in clauses (a) through (e) above, and (ii) has the highest rating obtainable from either Standard & Poor’s Rating
Service or Moody’s Investors Service Inc., and (e) demand deposit accounts maintained in the ordinary course of business. 
 1.22. “Casualty Event” shall mean any loss of title (other than through a consensual Disposition of such property in accordance with this Agreement) or any loss of or damage to or any
destruction of, or any condemnation or other taking (including by any Governmental Authority) of, any property of the Borrower. “Casualty Event” shall include any taking of all or any part of any Real Property of any person or any part
thereof, in or by condemnation or other eminent domain proceedings pursuant to any Legal Requirement, or by reason of the temporary requisition of the use or occupancy of all or any part of any Real Property of any person or any part thereof by any
Governmental Authority, or any settlement in lieu thereof. Notwithstanding the foregoing, “Casualty Event” shall not include the loss of title or loss of or damage to or any destruction of, or any condemnation or other taking (including by
any Governmental Authority) of, (a) any property of the Borrower with a fair market value of less than $700,000 in Net Cash Proceeds per such event and less than $1,500,000 in Net Cash Proceeds in any fiscal year of Borrower; and (b) so
long as the Term Loan Agreement is in effect, the Term Priority Collateral. 
 1.23. “Change of Control” shall mean
(a) the transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of Borrower to any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act); (b) the liquidation
or dissolution of Borrower or the adoption of a plan by the stockholders of Borrower relating to the dissolution or liquidation of Borrower; (c) any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act), other than
Permitted Investors shall have acquired beneficial ownership of more than 35 percent of the voting power of the outstanding Voting Stock of the Borrower; or (d) any Person or group (as such term is used in Section 13(d)(3) of the Exchange
Act) other than Permitted Investors shall have acquired beneficial ownership of sufficient voting power of the outstanding Voting Stock such that such Person or group becomes entitled to name or replace a voting majority of the Board of Directors;
provided, however, that notwithstanding anything set forth in this Agreement to the contrary, nothing contained in this definition shall be deemed to prevent a Qualifying IPO. 

1.24. “Closing Date” shall mean May 16, 2012. 
 1.25. “Code” shall mean the Internal Revenue Code of 1986, as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented, together with all rules,
regulations and interpretations thereunder or related thereto. 

  
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 1.26. “Collateral” shall have the meaning set forth in Section 5.1 hereof.

 1.27. “Collateral Access Agreement” shall mean an agreement in writing, in form and substance satisfactory to
Lender, from any lessor of premises to Borrower, or any other person to whom any Collateral is consigned or who has custody, control or possession of any such Collateral or is otherwise the owner or operator of any premises on which any of such
Collateral is located, in favor of Lender with respect to the Collateral at such premises or otherwise in the custody, control or possession of such lessor, consignee or other person. 

1.28. “Commitment” shall mean the Lender’s commitment to provide the Credit Facility. 

1.29. “Credit Card Acknowledgments” shall mean, collectively, the agreements in favor of Lender, by Credit Card Issuers or
Credit Card Processors who are parties to Credit Card Agreements, acknowledging Lender’s first priority security interest in the monies due and to become due to Borrower (including, without limitation, credits and reserves) under the Credit
Card Agreements, and agreeing to transfer all such amounts to the Payment Account, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

1.30. “Credit Card Agreements” shall mean all agreements now or hereafter entered into by Borrower with any Credit Card Issuer
or any Credit Card Processor, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, including, but not limited to, the agreements listed on Schedule 1.30 hereto. 

1.31. “Credit Card Issuer” shall mean any person (other than Borrower) who issues or whose members issue credit cards,
including, without limitation, MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club,
Carte Blanche and other non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American Express Travel Related Services Company, Inc. or Novus Services, Inc. 

1.32. “Credit Card Processor” shall mean any servicing or processing agent or any factor or financial intermediary who
facilitates, services, processes or manages the credit authorization, billing transfer and/or payment procedures with respect to Borrower’s sales transactions involving credit card or debit card purchases by customers using credit cards or
debit cards issued by any Credit Card Issuer. 
 1.33. “Credit Card Receivables” shall mean, collectively,
(a) all present and future rights of Borrower to payment from any Credit Card Issuer, Credit Card Processor or other third party arising from sales of goods or rendition of services to customers who have purchased such goods or services using a
credit or debit card and (b) all present and future rights of Borrower to payment from any Credit Card Issuer, Credit Card Processor or other third party in connection with the sale or transfer of Accounts arising pursuant to the sale of goods
or rendition of services to customers who have purchased such goods or services using a credit card or a debit card, including, but not limited to, all amounts at any time due or to become due from any Credit Card Issuer or Credit Card Processor
under the Credit Card Agreements or otherwise. 

  
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 1.34. “Credit Facility” shall mean the Revolving Loans and Letters of Credit
provided to or for the benefit of Borrower pursuant to Sections 2.1 and 2.2 hereof. 
 1.35. “Current Borrowing Base
Report” shall have the meaning set forth in Section 7.1 (a)(i) hereof. 
 1.36. “Customs Broker” shall mean
the persons listed on Schedule 1.36 hereto or such other person selected by Borrower after written notice by Borrower to Lender who are reasonably acceptable to Lender to perform port of entry services to process Inventory imported by Borrower from
outside the United States of America and to supply facilities, labor and materials to Borrower in connection therewith. 
 1.37.
“DACA Account” shall mean any deposit or other bank account of the Borrower subject to a Deposit Account Control Agreement. 
 1.38. “DACA Account Bank” shall mean a Non-Wells Fargo Account Bank with which Borrower and Lender have entered into a Deposit Account Control Agreement. 

1.39. “Default” shall mean an act, condition or event which with notice or passage of time or both would constitute an Event of
Default. 
 1.40. “Deposit Account Control Agreement” shall mean an agreement in writing, in form and substance
satisfactory to Lender, by and among Lender, Borrower and any bank at which Borrower maintains a deposit account, which provides that such bank will comply with instructions originated by Lender directing disposition of the funds in the deposit
account without further consent by Borrower and has such other terms and conditions as Lender may reasonably require. 
 1.41.
“Discretionary DACA Protocol Event” shall mean the Borrower’s maintenance of Excess Borrowing Availability at any time during any Non-Peak Period less than thirty-five percent (35%) but greater than or equal to twenty percent
(20%) of the then-effective Maximum Credit. 
 1.42. “Disposition” shall mean, with respect to any property, any
conveyance, sale, lease, sublease, assignment, transfer or other disposition of such property. 
 1.43. “Distribution
Center” shall mean the proposed second distribution center of Borrower which is anticipated to be located in the southern United States of America or in the mid-western region of the United States of America and purchased or developed by
Borrower at a cost of approximately $28,000,000. 

  
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 1.44. “Eligible Credit Card Receivables” shall mean Credit Card Receivables of
Borrower which are and continue to be acceptable to Lender, in each case based on the criteria set forth below as determined by Lender in good faith. Credit Card Receivables shall be Eligible Credit Card Receivables if: 

(a) such Credit Card Receivables arise from the actual and bona fide sale and delivery of goods or rendition of services by Borrower in
the ordinary course of the business of Borrower which transactions are completed in accordance with the terms and provisions contained in any agreements binding on Borrower or the other party or parties related thereto; 

(b) such Credit Card Receivables are not past due (beyond any stated applicable grace period, if any, therefor) pursuant to the terms
set forth in the Credit Card Agreements with the Credit Card Issuer or Credit Card Processor of the credit card or debit card used in the purchase which give rise to such Credit Card Receivables; 

(c) such Credit Card Receivables are not unpaid more than five (5) Business Days after the date of the sale of Inventory giving
rise to such Credit Card Receivables; 
 (d) all material procedures required by the Credit Card Issuer or the Credit Card
Processor of the credit card or debit card used in the purchase which gave rise to such Credit Card Receivables shall have been followed by Borrower and all documents required for the authorization and approval by such Credit Card Issuer or Credit
Card Processor shall have been obtained in connection with the sale giving rise to such Credit Card Receivables; 
 (e) the
required authorization and approval by such Credit Card Issuer or Credit Card Processor shall have been obtained for the sale giving rise to such Credit Card Receivables; 
 (f) Borrower shall have submitted all materials required by the Credit Card Issuer or Credit Card Processor obligated in respect of such Credit Card Receivables in order for Borrower to be entitled to
payment in respect thereof; 
 (g) the Credit Card Issuer or Credit Card Processor obligated in respect of such Credit Card
Receivable has not failed to remit any monthly payment in respect of such Credit Card Receivable; 
 (h) such Credit Card
Receivables comply with the applicable terms and conditions contained in Section 7.2 of this Agreement; 
 (i) the Credit
Card Issuer or Credit Card Processor with respect to such Credit Card Receivables has not asserted a counterclaim, defense or dispute and does not have, and does not engage in transactions which may give rise to, any right of setoff against such
Credit Card Receivables (other than setoffs to fees and chargebacks consistent with the practices of such Credit Card Issuer or Credit Card Processor with Borrower as of the date hereof or as such practices may change as a result of changes to the
policies of such Credit Card Issuer or Credit Card Processor applicable to its customers generally and unrelated to the circumstance of Borrower); provided, that the portion of the Credit Card Receivables owing by such Credit Card
Issuer or Credit Card Processor in excess of the amount asserted to be owing or owing by Borrower to such Credit Card Issuer or Credit Card Processor pursuant to such setoffs, fees and chargebacks may be deemed Eligible Credit Card Receivables;

  
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 (j) the Credit Card Issuer or Credit Card Processor with respect to such Credit Card
Receivables has not set off against amounts otherwise payable by such Credit Card Issuer or Credit Card Processor to Borrower for the purpose of establishing a reserve or collateral for obligations of Borrower to such Credit Card Issuer or Credit
Card Processor (notwithstanding that the Credit Card Issuer or Credit Card Processor may have setoffs for fees and chargebacks consistent with the practices of such Credit Card Issuer or Credit Card Processor with Borrower as of the date hereof or
as such practices may hereafter change as a result of changes to the policies of such Credit Card Issuer or Credit Card Processor applicable to its customers generally and unrelated to the circumstances of Borrower); provided, that the
portion of the Credit Card Receivables owing by such Credit Card Issuer or Credit Card Processor in excess of the amount set off by such Credit Card Issuer or Credit Card Processor to establish such reserves or collateral may be deemed Eligible
Credit Card Receivables; 
 (k) there are no facts, events or occurrences which would materially impair the validity,
enforceability or collectability of such Credit Card Receivables or materially reduce the amount payable or materially delay payment thereunder (other than for setoffs for fees and chargebacks consistent with the practices of such Credit Card Issuer
or Credit Card Processor with Borrower as of the date hereof or as such practices may hereafter change as a result of changes to the policies of such Credit Card Issuer or Credit Card Processor applicable to its customers generally and unrelated to
the circumstances of Borrower); 
 (l) such Credit Card Receivables are subject to the first priority, valid and perfected
security interest and lien of Lender, in the sole discretion of Lender, and any goods giving rise thereto are not, and were not at the time of the sale thereof, subject to any security interest or lien in favor of any person other than Lender except
as otherwise permitted in this Agreement, in each case subject to and in accordance with the terms and conditions applicable hereunder to any such permitted security interest or lien; 

(m) there are no proceedings or actions which are pending or to the best of Borrower’s knowledge threatened, against the Credit
Card Issuers or Credit Card Processors with respect to such Credit Card Receivables which would reasonably be expected to result in any material adverse change in the financial condition of any such Credit Card Issuer or Credit Card Processor;

 (n) such Credit Card Receivables are owed by Credit Card Issuers or Credit Card Processors deemed creditworthy at all times
by Lender in good faith; 
 (o) no event of default has occurred under the Credit Card Agreement of Borrower with the Credit
Card Issuer or Credit Card Processor who has issued the credit card or debit card or handles payments under the credit card or debit card used in the sale which gave rise to such Credit Card Receivables which event of default gives such Credit Card
Issuer or Credit Card Processor the right to cease or suspend payments to Borrower, except as may have been waived in writing by such Credit Card Issuer or Credit Card Processor, and the Credit Card Issuer or Credit Card Processor has not sent any
written notice of default and/or notice of its intention to cease or suspend payments to Borrower in respect of such Credit Card Receivables, and such Credit Card Agreements are otherwise in full force and effect and constitute the legal, valid,
binding and enforceable obligations of the parties thereto; 

  
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 (p) the terms of the sale giving rise to such Credit Card Receivables and all practices of
Borrower with respect to such Credit Card Receivables comply in all material respects with applicable Federal, State, and local laws and regulations; and 
 (q) the customer using the credit card or debit card giving rise to such Credit Card Receivable shall not have returned the merchandise purchased giving rise to such Credit Card Receivable. 

General criteria for Eligible Credit Card Receivables may only be changed and any new criteria for Eligible Credit Card Receivables may only be
established by Lender in good faith and in accordance with its customary practices for similarly situated borrowers, upon notice to Borrower, based on either: (i) an event, condition or other circumstance arising after the date hereof, or
(ii) existing on the date hereof to the extent Lender has no written notice thereof from Borrower prior to the date hereof, in either case under clause (i) or (ii) which adversely affects or could reasonably be expected to adversely
affect the Credit Card Receivables in the good faith determination of Lender. Any Credit Card Receivables which are not Eligible Credit Card Receivables shall nevertheless be part of the Collateral. 

1.45. “Eligible In-Transit Inventory” shall mean all finished goods Inventory owned, prepaid or to be owned by Borrower that is
not covered by a Letter of Credit and that is or will be in transit from outside of the United States to one of Borrower’s locations in the continental United States, and which (a) as of the date such Inventory becomes owned by Borrower
(i) is fully insured, (ii) is subject to a first priority security interest in and lien upon such goods in favor of Lender (except for any possessory lien upon such goods in the possession of handlers, stores of goods, a freight carrier or
shipping company securing only the freight charges for the transportation of such goods to Borrower), (iii) all documents, notices, instruments, statements and bills of lading relating thereto, if any, which Lender may deem necessary or
desirable to evidence ownership by Borrower and/or to give effect to and protect the liens, security interests and other rights of Lender in connection therewith are delivered to Lender, and (iv) is subject to a Collateral Access Agreement when
in the possession, custody or control of any Customs Broker; and (b) are and remain acceptable to Lender for lending purposes in its sole discretion. 
 1.46. “Eligible Inventory” shall mean Inventory (including Eligible L/C Inventory) consisting of finished goods held for resale in the ordinary course of the business of Borrower which are
acceptable to Lender, in each case based on the criteria set forth below as determined by Lender in good faith. In general, Eligible Inventory shall not include (a) work-in-process; (b) raw materials; (c) spare parts for equipment;
(d) packaging and shipping materials; (e) supplies used or consumed in Borrower’s business; (f) Inventory at premises which are not owned or not leased and controlled by Borrower; provided, that, Eligible Inventory
shall include (i) Inventory at retail store locations in the United States of America which are leased by Borrower or owned and operated by a person other than Borrower, and (ii) Inventory at retail store locations outside the United
States of America which are leased by Borrower or owned and operated by a person other than Borrower and at all other non-retail locations leased by Borrower or owned and operated by a person other than Borrower (both inside and outside of the
United States of America), only to the extent that Lender has received a Collateral Access Agreement from the lessor or the owner or operator with respect to such location, and, if required by Lender

  
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in the case of this subclause (ii), (A) UCC financing statements (or, in the case of Inventory outside the United States, other evidence of perfection as determined in Lender’s
reasonable discretion) between the lessor or owner and operator, as consignee/bailee, and Borrower, as consignor/bailor, in form and substance satisfactory to Lender, which are duly assigned to Lender and (B) written notice of Lender’s
first priority security interest in such Inventory to any lender to the lessor or owner and operator of such location; (g) Inventory which is in transit from outside of the United States to one of Borrower’s locations in the continental
United States, other than Eligible In-Transit Inventory; provided, that, in no event shall the Eligible In-Transit Inventory component of Eligible Inventory exceed $500,000 at any one time; (h) Inventory subject to a security
interest or lien in favor of any person other than Lender except those security interests or liens (i) permitted in this Agreement that are subordinate to the security interest of Lender pursuant to an intercreditor agreement in form and
substance satisfactory to Lender between Lender and the holder of such other security interest or lien, and (ii) arising from time to time in favor of common carriers transporting Inventory from one Borrower location to another for a period of
no greater than 5 Business Days; (i) bill and hold goods; (j) Slow Moving Inventory, other than Packaway Inventory; provided, that, (i) any item of Packaway Inventory shall only constitute Eligible Inventory from the
date of Borrower’s acquisition of such Inventory until the conclusion of the second selling season to which such item relates and during which Borrower should reasonably hold such item out for sale, immediately following Borrower’s
acquisition of such item, and (ii) in no event shall the Value of Packaway Inventory exceed five percent (5%) of Inventory at any one time; (k) Inventory which is not subject to the first priority, valid and perfected security
interest of Lender, as determined in the sole discretion of Lender; (l) damaged and/or defective Inventory; (m) returned Inventory which is not held for sale in the ordinary course of business; and (n) Inventory purchased or sold on
consignment. 
 General criteria for Eligible Inventory may only be changed and any new criteria for Eligible Inventory may only be established
by Lender in good faith and in accordance with its customary practices for similarly situated borrowers, upon notice to Borrower, based on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an
event, condition or other circumstance existing on the date hereof to the extent Lender has no written notice thereof from Borrower prior to the date hereof, in either case under clause (i) or (ii) which adversely affects or could
reasonably be expected to adversely affect the Inventory in the good faith determination of Lender. Any Inventory which is not Eligible Inventory shall nevertheless be part of the Collateral. 

1.47. “Eligible LC Inventory” shall mean all finished goods Inventory owned or to be owned by Borrower and covered by a
documentary Letter of Credit, and which finished goods Inventory is or will be in transit to one of Borrower’s locations in the continental United States, and which finished goods Inventory (a) as of the date such Inventory becomes owned
by Borrower (i) is fully insured, (ii) is subject to a first priority security interest in and lien upon such goods in favor of Lender (except for any possessory lien upon such goods in the possession of handlers, storers of goods, a
freight carrier or shipping company securing only the freight charges for the transportation of such goods to Borrower), and (iii) all documents, notices, instruments, statements and bills of lading relating thereto, if any, which Lender may
deem necessary or desirable to evidence ownership by Borrower and/or to give effect to and protect the liens, security interests and other rights of Lender in connection therewith are delivered to Agent; and (b) are and remain acceptable to
Lender for lending purposes in its sole discretion. 

  
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 1.48. “Environmental Laws” shall mean all foreign, Federal, State and local laws
(including common law), legislation, rules, codes, licenses, permits (including any conditions imposed therein), authorizations, judicial or administrative decisions, injunctions or agreements between Borrower and any Governmental Authority,
(a) relating to pollution and the protection, preservation or restoration of the environment (including air, water vapor, surface water, ground water, drinking water, drinking water supply, surface land, subsurface land, plant and animal life
or any other natural resource), or to human health or safety, (b) relating to the exposure to, or the use, storage, recycling, treatment, generation, manufacture, processing, distribution, transportation, handling, labeling, production, release
or disposal, or threatened release, of Hazardous Materials, or (c) relating to all laws with regard to recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Materials. The term “Environmental Laws”
includes (i) the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal Superfund Amendments and Reauthorization Act, the Federal Water Pollution Control Act of 1972, the Federal Clean Water Act, the
Federal Clean Air Act, the Federal Resource Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments thereto), the Federal Solid Waste Disposal and the Federal Toxic Substances Control Act, the Federal Insecticide,
Fungicide and Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii) applicable state counterparts to such laws and (iii) any common law or equitable doctrine that may impose liability or obligations for injuries or damages
due to, or threatened as a result of, the presence of or exposure to any Hazardous Materials. 
 1.49. “Equipment”
shall mean all of Borrower’s now owned and hereafter acquired equipment, wherever located, including machinery, data processing and computer equipment (whether owned or licensed and including embedded software), vehicles, tools, furniture,
fixtures, all attachments, accessions and property now or hereafter affixed thereto or used in connection therewith, and substitutions and replacements thereof, wherever located. 

1.50. “ERISA” shall mean the Employee Retirement Income Security Act of 1974, together with all rules, regulations and
interpretations thereunder or related thereto. 
 1.51. “ERISA Affiliate” shall mean any person required to be
aggregated with Borrower under Sections 414(b), 414(c), 414(m) or 414(o) of the Code. 
 1.52. “ERISA Event” shall
mean (a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder, with respect to a Pension Plan, other than events as to which the requirement of notice has been waived in regulations
by the Pension Benefit Guaranty Corporation; (b) the adoption of any amendment to a Pension Plan that would require the provision of security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA; (c) a complete or
partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or a cessation of operations which is treated as such a withdrawal or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of
intent to terminate, the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the Pension Benefit Guaranty Corporation to terminate a Pension Plan; (e) an event
or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (f) the imposition of any liability under

  
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Title IV of ERISA, other than the Pension Benefit Guaranty Corporation premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate in excess of $100,000
and (g) any other event or condition with respect to any Pension Plan maintained, or contributed to, by any ERISA Affiliate that could reasonably be expected to result in liability of Borrower in excess of $100,000. 

1.53. “Event of Default” shall mean the occurrence or existence of any event or condition described in Section 10.1
hereof. 
 1.54. “Excess Borrowing Availability” shall mean the amount, as determined by Lender, calculated at any
date, equal to: (a) the lesser of (i) the Adjusted Borrowing Base, or (ii) the Maximum Credit (in each case after giving effect to any Reserves then in effect); minus (b) the sum of: (i) the amount of all then outstanding
and unpaid Obligations of Borrower, plus (ii) the amount of all then outstanding Letter of Credit Obligations. 
 1.55.
“Excess Collateral Availability” shall mean the amount, as determined by Lender, calculated at any date, equal to: (a) the Borrowing Base (after giving effect to any Reserves then in effect) minus (b) the sum of: (i) the
amount of all then outstanding and unpaid Obligations of Borrower, plus (ii) the amount of all then outstanding Letter of Credit Obligations. 
 1.56. “Exchange Act” shall mean the Securities Exchange Act of 1934, together with all rules, regulations and interpretations thereunder or related thereto. 

1.57. “Excluded Accounts” shall mean (a) any bank accounts established by Borrower or its Subsidiaries used exclusively
for payroll, payroll taxes or employee benefits, escrow, customs, insurance, or fiduciary purposes or compliance with legal requirements, to the extent such legal requirements prohibit the granting of a lien thereon, (b) any accounts for the
purpose of maintaining cash and Cash Equivalents subject to Permitted Liens of the type described in Sections 9.8(f), (j) and (m); or (c) any other account (other than any deposit account that constitutes or contains proceeds of any ABL
Priority Collateral) that is excluded from the collateral securing the Term Loan Agreement. 
 1.58. “Fee Letter”
shall mean the letter agreement executed by Borrower and Lender of even date herewith regarding the payment of certain fees by Borrower to Lender in connection with and on account of the financial accommodations made to Borrower hereunder.

 1.59. “Financing Agreements” shall mean, collectively, this Agreement, the Fee Letter, and all notes, guarantees,
security agreements, deposit account control agreements, investment property control agreements, intercreditor agreements and all other agreements, documents and instruments now, prior to, or at any time hereafter executed and/or delivered by
Borrower in connection with its credit obligations to Lender. 
 1.60. “Foreign Subsidiary” shall mean (a) a
Subsidiary that is organized under the laws of a jurisdiction other than the United States of America or any state thereof or the District of Columbia (and including a Subsidiary of such a Subsidiary) and (b) any direct or indirect Subsidiary
that is (i) a “controlled foreign corporation” within the meaning of Section 957(a) of the Code and any Subsidiary of such controlled foreign corporation or (ii) a domestic corporation or domestic partnership for U.S.
federal income tax purposes, all or substantially all of whose assets consist of Capital Stock in one or more entities described in clause (i) above. 

  
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 1.61. “Funding Bank” shall have the meaning set forth in Section 3.3(a)

 1.62. “GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from
time to time as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board which are
applicable to the circumstances as of the date of determination consistently applied. 
 1.63. “Governmental
Authority” shall mean any nation or government, any state, province, or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government. 
 1.64. “Hazardous Materials” shall mean any
hazardous, toxic or dangerous substances, materials and wastes, including hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials,
biological substances, polychlorinated biphenyls, pesticides, herbicides and any other kind and/or type of pollutants or contaminants (including materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or any
other similar substances, materials, or wastes and including any other substances, materials or wastes that are or become regulated under any Environmental Law (including any that are or become classified as hazardous or toxic under any
Environmental Law). 
 1.65. “Hedge Agreement” shall mean an agreement between Borrower and a Bank Product Provider
that is a rate swap agreement, basis swap, forward rate agreement, commodity swap, forward commodity contracts, interest rate option, forward foreign exchange agreement, spot foreign exchange agreement, rate cap agreement rate, floor agreement, rate
collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing or a master agreement for any the foregoing together with all
supplements thereto) for the purpose of protecting against or managing exposure to fluctuations in interest or exchange rates, currency valuations or commodity prices. 
 1.66. “Indebtedness” shall mean, with respect to Borrower, any liability, whether or not contingent, (a) in respect of borrowed money (whether or not the recourse of the lender is to the
whole of the assets of Borrower or only to a portion thereof) or evidenced by bonds, notes, debentures or similar instruments; (b) representing the balance deferred and unpaid of the purchase price of any property or services (other than an
account payable to a trade creditor (whether or not an Affiliate) incurred in the ordinary course of business of Borrower and payable in accordance with customary trade practices); (c) all obligations as lessee under leases which have been, or
should be, in accordance with GAAP recorded as Capital Leases; (d) any contractual obligation, contingent or otherwise, of Borrower to pay or be liable for the payment of any indebtedness described in this definition of another Person,
including, without limitation, 

  
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any such indebtedness, directly or indirectly guaranteed, or any agreement to purchase, repurchase, or otherwise acquire such indebtedness, obligation or liability or any security therefor, or to
provide funds for the payment or discharge thereof, or to maintain solvency, assets, level of income, or other financial condition; (e) all obligations with respect to redeemable stock and redemption or repurchase obligations under any Capital
Stock or other equity securities issued by Borrower; (f) all reimbursement obligations and other liabilities of Borrower with respect to surety bonds (whether bid, performance or otherwise), letters of credit, banker’s acceptances, drafts
or similar documents or instruments issued for Borrower’s account; (g) all indebtedness of Borrower in respect of indebtedness of another Person for borrowed money or indebtedness of another Person otherwise described in this definition
which is secured by any consensual lien, security interest, collateral assignment, conditional sale, mortgage, deed of trust, or other encumbrance on any asset of Borrower, whether or not such obligations, liabilities or indebtedness are assumed by
or are a personal liability of Borrower, all as of such time; (h) all obligations, liabilities and indebtedness of Borrower (marked to market) arising under swap agreements, cap agreements and collar agreements and other agreements or
arrangements designed to protect such person against fluctuations in interest rates or currency or commodity values; (i) all obligations owed by Borrower under License Agreements with respect to non-refundable, advance or minimum guarantee
royalty payments; (j) indebtedness of any partnership or joint venture in which Borrower is a general partner or a joint venturer to the extent Borrower is liable therefor as a result of Borrower’s ownership interest in such entity, except
to the extent that the terms of such indebtedness expressly provide that Borrower is not liable therefor or Borrower has no liability therefor as a matter of law and (k) the principal and interest portions of all rental obligations of Borrower
under any synthetic lease or similar off-balance sheet financing where such transaction is considered to be borrowed money for tax purposes but is classified as an operating lease in accordance with GAAP. 

1.67. “Information Certificate” shall mean the Information Certificate of Borrower attached as Exhibit “B” hereto,
containing material information with respect to Borrower, its businesses and assets provided by or on behalf of Borrower to Lender in connection with the preparation of this Agreement and the other Financing Agreements and the financing arrangements
provided for herein. 
 1.68. “Intellectual Property” shall mean Borrower’s now owned and hereafter arising or
acquired: patents, patent rights, patent applications, copyrights, works which are the subject matter of copyrights, copyright applications, copyright registrations, trademarks, servicemarks, trade names, trade styles, trademark and service mark
applications, and licenses and rights to use any of the foregoing and all applications, registrations and recordings relating to any of the foregoing as may be filed in the United States Copyright Office, the United States Patent and Trademark
Office, or in any similar office or agency of the United States of America, any State, any political subdivision thereof or in any other country or jurisdiction, together with all rights and privileges arising under applicable law with respect to
Borrower’s use of any of the foregoing; all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the foregoing; all rights to sue for past, present and future infringement of any of the foregoing;
inventions, trade secrets, formulae, processes, compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards; goodwill (including any goodwill associated with any trademark or servicemark, or the license of any
trademark or servicemark); customer and other lists in whatever form maintained; trade secret rights, copyright rights, rights in works of authorship, domain names and domain name registration; software and contract rights relating to computer
software programs, in whatever form created or maintained. 

  
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 1.69. “Intercreditor Agreement” shall mean that certain Lien Subordination and
Intercreditor Agreement dated as of the Closing Date among the Lender, the Term Loan Agent and the Borrower substantially in the form attached as Exhibit “D” hereto, as the same may be amended, amended and restated, supplemented or
otherwise modified in accordance with its terms. 
 1.70. “Interest Rate” shall mean, 

(a) as to Prime Rate Loans, a rate equal to the Prime Rate plus the Applicable Margin for Prime Rate Loans, and 

(b) as to LMIR Rate Loans, a rate equal to the LMIR Rate plus the Applicable Margin for LMIR Rate Loans. 

Notwithstanding anything to the contrary contained in this definition, the Interest Rate shall mean the percentage per annum set forth above plus (in
each case) two percent (2%) per annum, at Lender’s option, (i) for the period (A) from and after the effective date of termination or non-renewal hereof until such time as all Obligations are indefeasibly paid and satisfied in
full in immediately available funds, or (B) from and after the date of the occurrence of any Event of Default, and for so long as such Event of Default is continuing as determined by Lender and (ii) on Revolving Loans to Borrower at any
time outstanding in excess of the Adjusted Borrowing Base or Maximum Credit (whether or not such excess(es) arise or are made with or without Lender’s knowledge or consent and whether made before or after an Event of Default). 

1.71. “Inventory” shall mean all of Borrower’s now owned and hereafter existing or acquired goods, wherever located, which
(a) are leased by Borrower as lessor; (b) are held by Borrower for sale or lease or to be furnished under a contract of service; (c) are furnished by Borrower under a contract of service; or (d) consist of raw materials, work in
process, finished goods or materials used or consumed in its business. 
 1.72. “Investments” shall have the meaning
set forth in Section 9.10. 
 1.73. “Legal Requirements” shall mean, as to any person, the organizational
documents of such person, and any treaty, law (including the common law), statute, ordinance, code, rule, regulation, guidelines, license, permit requirement, order or determination of an arbitrator or a court or other Governmental Authority, and
the interpretation or administration thereof, in each case applicable to or binding upon such person or any of its property or to which such person or any of its property is subject. 

1.74. “Lender” shall mean Wells Fargo Bank, National Association, as successor by merger to Wachovia Bank, N.A., and its
successors and assigns. 
 1.75. “Letter of Credit Documents” shall mean, with respect to any Letter of Credit, such
Letter of Credit, any amendments thereto, any documents delivered in connection therewith, any application therefor, and any agreements, instruments, guarantees or other 

  
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documents (whether general in application or applicable only to such Letter of Credit) governing or providing for (a) the rights and obligations of the parties concerned or at risk or
(b) any collateral security for such obligations. 
 1.76. “Letter of Credit Limit” shall mean $5,000,000.

 1.77. “Letter of Credit Obligations” shall mean, at any time, the aggregate undrawn amount of all Letters of Credit
outstanding at such time. 
 1.78. “Letters of Credit” shall mean all letters of credit (whether documentary or
stand-by and whether for the purchase of inventory, equipment or otherwise) issued by Lender for the account of any Borrower pursuant to this Agreement, and all amendments, renewals, extensions or replacements thereof. 

1.79. “License Agreement” shall mean any agreement or other arrangement pursuant to which Borrower has a license or other right
to use any trademarks, logos, designs, representations or other Intellectual Property owned by another person and material to the conduct of the business of the Borrower, excluding commercially available off-the-shelf software. 

1.80. “LMIR Rate”, for any day, shall mean the rate for one month U.S. dollar deposits as reported on the
page of the Reuters Screen which displays an average British Bankers Association Interest Settlement Rate (such page currently being LIBOR01 page) as of 11:00 a.m., London time (rounded upwards, if necessary, to the nearest 1/100th of one percent (1%)), on such day, or if such day is not a London
business day, then the immediately preceding London business day (or if not so reported, then as determined by Bank from another recognized source or interbank quotation). 
 1.81. “LMIR Rate Loan” means a Revolving Loan, or portion thereof, during any period in which it bears interest at an annual rate based upon the LMIR Rate. All LMIR Rate Loans shall be
denominated in US Dollars. 
 1.82. “Material Adverse Effect” shall mean a material adverse effect on (a) the
financial condition, business, performance or operations of Borrower; (b) the legality, validity or enforceability of this Agreement or any of the other Financing Agreements; (c) the legality, validity, enforceability, perfection or
priority of the security interests and liens of Lender upon the Collateral; (d) the Collateral or its value taken as a whole; (e) the ability of Borrower to repay the Obligations or of Borrower to perform its obligations under this
Agreement or any of the other Financing Agreements as and when to be performed; or (f) the ability of Lender to enforce the Obligations or realize upon the Collateral or otherwise with respect to the rights and remedies of Lender under this
Agreement or any of the other Financing Agreements. 
 1.83. “Material Contract” shall mean any contract or other
agreement (other than the Financing Agreements and the Term Loan Documents), whether written or oral, to which Borrower is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto would have a Material
Adverse Effect, including, without limitation, any Credit Card Agreement. Material Contracts shall not include purchase orders for inventory or for furniture and fixtures in the ordinary course of business, and shall only include leases of real
property to which Borrower is a party to the extent that the leased premises is any non-retail location. 

  
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 1.84. “Maximum Credit” shall mean, at any time, the amount of $20,000,000,
plus the amount of any Maximum Credit Incremental Increase then in effect in accordance with the provisions of Section 2.1(c) hereof. 
 1.85. “Maximum Credit Incremental Increase” shall have the meaning set forth in Section 2.1(c). 
 1.86. “Minimum Excess Collateral Availability” shall have the meaning set forth in Section 9.22 of this Agreement. 
 1.87. “Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately
preceding six (6) years contributed to by Borrower or any ERISA Affiliate or with respect to which Borrower or any ERISA Affiliate may incur any liability. 
 1.88. “Net Cash Proceeds” shall mean, with respect to any sale, lease, transfer or other disposition of any asset, any Asset Sale, any Casualty Event, or the sale or issuance of any Indebtedness
by Borrower, the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of deferred consideration) by or on behalf of Borrower in connection with such transaction after deducting
therefrom only (without duplication) (a) reasonable and customary brokerage commissions, underwriting fees and discounts, legal fees, accountant’s fees, investment banking fees, finder’s fees, other similar fees and commissions and
reasonable out-of-pocket expenses, (b) the amount of taxes reasonably estimated by Borrower to be actually and reasonably attributable to such transaction, and (c) the amount of any Indebtedness secured by a security interest, lien or
other encumbrance (other than a security interest, lien or other encumbrance created under any Financing Agreements) on such asset that, by the terms of such transaction, is required to be repaid upon such disposition, in each case to the extent,
but only to the extent, that the amounts so deducted are actually paid to Borrower. 
 1.89. “Net Recovery Percentage”
shall mean the fraction, expressed as a percentage, (a) the numerator of which is the amount equal to the recovery on the aggregate amount of the Inventory at such time on a “going out of business sale” basis as set forth in the most
recent appraisal of Inventory received by Lender in accordance with Section 7.4, net of operating expenses, liquidation expenses and commissions, and (b) the denominator of which is the applicable original cost of the aggregate amount of
the Inventory subject to appraisal. The Net Recovery Percentage for Inventory used in Section 1.10 shall be based on the percentage in the most recent appraisal applicable to the time period for which the Borrowing Base is being calculated.

 1.90. “Non-DACA Account” shall mean any deposit or other bank account of the Borrower not subject to a current and
effective Deposit Account Control Agreement. 
 1.91. “Non-Peak Period” shall mean all times during any calendar year
other than the Peak Period. 

  
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 1.92. “Non-Wells Fargo Account” shall mean any deposit or other bank account
maintained by the Borrower at any financial institution other than Wells Fargo Bank, National Association. 
 1.93.
“Non-Wells Fargo Account Bank” shall mean any bank at which a Non-Wells Fargo Account is maintained. 
 1.94.
“Obligations” shall mean (a) any and all Revolving Loans, Letter of Credit Obligations and all other obligations, liabilities and indebtedness of every kind, nature and description owing by Borrower to Lender and/or any of their
Affiliates, including principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under this Agreement or any of the other Financing Agreements or on account of
any Letter of Credit and all other Letter of Credit Obligations, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any case with respect
to Borrower under the Bankruptcy Code or any similar statute (including the payment of interest and other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole
or in part in such case), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, or secured or unsecured; and (b) all obligations, liabilities and indebtedness of
every kind, nature and description owing by Borrower to Lender or any Bank Product Provider arising under or pursuant to any Bank Products, whether now existing or hereafter arising. 

1.95. “Other Taxes” shall have the meaning given to such term in Section 6.5(c). 

1.96. “Packaway Inventory” means Inventory which is held by Borrower for sale only during certain selling seasons of the year,
including, without limitation, holiday items. 
 1.97. “Payment Account” shall mean account no. 2079951067231
maintained by Lender and/or such other account or accounts maintained by Lender which Lender may from time to time designate to Borrower as the Payment Account for purposes of this Agreement and the other Financing Agreements. 

1.98. “Peak Period” shall mean the period between October 1 through December 1 in any calendar year. 

1.99. “Pension Plan” shall mean a “pension plan” (as defined in Section 3(2) of ERISA) subject to Title IV of
ERISA which Borrower sponsors, maintains, or to which Borrower or any ERISA Affiliate makes, is making, or is obligated to make contributions, other than a Multiemployer Plan. 
 1.100. “Permits” shall have the meaning given to such term in Section 8.7(b). 
 1.101. “Permitted Investors” shall mean and include (i) any Person or group that is a stockholder of the Borrower on the date hereof or his/her/its respective Affiliates, and
(ii) equity investors participating in any Qualifying IPO. 

  
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 1.102. “Permitted Investments” shall mean each of the following: 

(a) (i) accounts receivables owing to Borrower if created or acquired in the ordinary course of business and payable or dischargeable in
accordance with customary terms, (ii) investments in cash and Cash Equivalents, (iii) endorsement of instruments held for collection in the ordinary course of business, (iv) lease, utility and other similar deposits in the ordinary
course of business and (v) accounts receivable and notes receivable from financially troubled counterparts in the ordinary course of business in order to prevent or limit loss; 

(b) loans and advances by Borrower to directors, employees or officers of Borrower not to exceed the principal amounts set forth in
Section 9.10 at any time; 
 (c) obligations of account debtors to Borrower arising from Accounts which are past due
evidenced by a promissory note made by such account debtor payable to Borrower, the principal amount of which note shall not exceed $25,000 in any one case or $100,000 in the aggregate at any time outstanding; provided, that, promptly
upon the receipt by Borrower of the original of any such promissory note, such promissory note shall be endorsed to the order of Lender by Borrower and promptly delivered to Lender as so endorsed; 

(d) Investments outstanding on the date hereof; 
 (e) Hedge Agreements permitted pursuant to Section 9.9(c) or Section 9.9(m); 
 (f) Investments in securities of trade creditors or customers in the ordinary course of business that are received in settlement of bona fide disputes or pursuant to any plan of reorganization or
liquidation or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers; 
 (g) Investments
made as a result of consideration received in connection with a sale or other disposition made in compliance with Section 9.7(b); 
 (h) Restricted Payments in compliance with Section 9.11; 
 (i) other
Investments in an aggregate amount not to exceed $3,500,000 on the date such Investments are made to the extent, and only to the extent: (A) at the time such Investments are made Excess Borrowing Availability is not less than $3,000,000; and
(B) such Investments are not made with Revolving Loan Proceeds; 
 (j) so long as no Default or Event of Default then
exists or would result therefrom, the Borrower may make Investments that are made in exchange for the substantially concurrent sale of Capital Stock of the Borrower permitted to be issued by it hereunder; 

(k) promissory notes or other obligations of directors, officers or other employees of the Borrower in connection with such
directors’, officers’ or employees’ purchase of Capital Stock of the Borrower, so long as no cash is advanced by the Borrower in connection with such Investment; and 

  
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 (l) Investments that may arise as a result of the consummation of Sale and Leaseback
Transactions permitted under Section 9.23. 
 1.103. “Permitted Liens” shall have the meaning given to such term
in Section 9.8. 
 1.104. “Person” or “person” shall mean any individual, sole proprietorship,
partnership, corporation (including any corporation which elects subchapter S status under the Code), limited liability company, limited liability partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture
or other entity or any government or any agency or instrumentality or political subdivision thereof. 
 1.105. “Primary
Non-Wells Fargo Account Bank” shall mean any bank or financial institution at which Non-Wells Fargo Accounts are maintained to the extent that such Non-Wells Fargo Accounts receive deposits from eight (8) or more of the Borrower’s
retail locations. 
 1.106. “Prime Rate” shall mean the higher of (i) the rate from time to time publicly
announced by Lender as its “prime rate,” whether or not such announced rate is the best rate available at Lender and subject to each increase or decrease in such “prime rate,” effective as of the first day of the month after any
such increase or decrease occurs; and (ii) the rate which is the Federal Funds Rate in effect from time to time, plus one-half percent (.50%). 
 1.107. “Prime Rate Loans” shall mean any Revolving Loans or portion thereof on which interest is payable based on the Prime Rate in accordance with the terms thereof. All Prime Rate Loans shall
be denominated in US Dollars. 
 1.108. “Qualifying IPO” shall mean the first bona fide underwritten primary or
secondary (or combination of primary and secondary) public offering (other than a public offering pursuant to a registration statement on Form S-8) by the Borrower after the Closing Date pursuant to an effective registration statement filed with the
Securities and Exchange Commission in accordance with the Securities Act. 
 1.109. “Quarterly Average Excess
Availability” shall mean, at any time, the average of the daily Excess Borrowing Availability of Borrower for the immediately preceding fiscal quarter as calculated by Lender. 

1.110. “Real Property” shall mean all now owned and hereafter acquired real property of Borrower, including leasehold
interests, together with all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto, wherever located. 
 1.111. “Receivables” shall mean all of the following now owned or hereafter arising or acquired property of Borrower: (a) all Accounts; (b) all interest, fees, late charges, penalties,
collection fees and other amounts due or to become due or otherwise payable in 

  
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connection with any Account; (c) all payment intangibles of Borrower; (d) letters of credit, indemnities, guarantees, security or other deposits and proceeds thereof issued or payable
to Borrower or otherwise in favor of or delivered to Borrower in connection with any Account or any Credit Card Receivables; and (e) all other accounts, contract rights, chattel paper, instruments, notes, general intangibles and other forms of
obligations owing to Borrower, whether from the sale and lease of goods or other property, licensing of any property (including Intellectual Property or other general intangibles), rendition of services or from loans or advances by Borrower or to or
for the benefit of any third person (including loans or advances to any Affiliates or Subsidiaries of Borrower) or otherwise associated with any Accounts, Inventory or general intangibles of Borrower (including, without limitation, choses in action,
causes of action, tax refunds, tax refund claims, any funds which may become payable to Borrower in connection with the termination of any Pension Plan or other employee benefit plan and any other amounts payable to Borrower from any Pension Plan or
other employee benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds thereof, casualty or any similar types of insurance and any proceeds thereof and proceeds of
insurance covering the lives of employees on which Borrower is a beneficiary). 
 1.112. “Records” shall mean all of
Borrower’s present and future books of account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence, statements, correspondence, memoranda, credit files and other data
relating to the Collateral or any account debtor, together with the tapes, disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the foregoing are stored (including any rights of Borrower
with respect to the foregoing maintained with or by any other person). 
 1.113. “Reserves” shall mean as of any date
of determination, such amounts as Lender may from time to time establish and revise in good faith in accordance with its customary practices for similarly situated borrowers, reducing the amount of Revolving Loans and Letters of Credit which would
otherwise be available to Borrower under the lending formula(s) provided for herein: (a) to reflect events, conditions, contingencies or risks which adversely affect, or would have a reasonable likelihood of adversely affecting, either
(i) any of the Collateral of the types or categories included in the Borrowing Base or related thereto or its value or (ii) the assets or business of Borrower or (iii) the security interests and other rights of Lender in the
Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Lender’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower to Lender is or may have
been incomplete, inaccurate or misleading in any material respect; or (c) to reflect outstanding Letter of Credit Obligations as provided in Section 2.2 hereof; or (d) on account of the aggregate amount of all then outstanding and
unpaid trade payables and other obligations of Borrower which are outstanding more than sixty (60) days past due as of the end of the immediately preceding month, except for such trade payables and other obligations being disputed in good faith
by Borrower; or (e) in respect of any state of facts which Lender determines in good faith constitutes a Default or an Event of Default. Notwithstanding the foregoing, to the extent that Lender establishes Reserves with respect to specific
Collateral categories, the Value of any Collateral that becomes the subject of such a Reserve shall be included as a Reserve only once, irrespective of whether or not such Collateral Value could be included in more than one Reserve category.

  
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 Without limiting the generality of the foregoing, Reserves may be established to reflect any of the
following: (a) that dilution with respect to the Credit Card Receivables (based on the ratio of the aggregate amount of non-cash reductions in Credit Card Receivables for any period to the aggregate dollar amount of the sales of Borrower giving
rise to Credit Card Receivables for such period) as calculated by Lender for any period, is or is reasonably anticipated to be greater than five percent (5%), (b) inventory shrinkage, (c) reserves in respect of markdowns and cost variances
(pursuant to discrepancies between the purchase order price of Inventory and the actual cost thereof), (d) any and all amounts in respect of sales, use and/or withholding taxes which are past due, (e) any and all rental payments, service
changes or other amounts which are past due to lessors of personal property, (f) up to fifty percent (50%) of the aggregate amount of merchandise gift certificates and coupons as certified by the Borrower in its Financial Statements,
(g) an increase in the number of days of the turnover of Inventory or a change in the mix of the Inventory that results in an overall decrease in the value thereof or a deterioration in its nature or quality (but only to the extent not
addressed by the lending formulas in a manner satisfactory to Lender), (h) variances between the perpetual inventory records of Borrower and the results of any test counts of Inventory conducted by Lender with respect thereto, in excess of the
percentage acceptable to Lender, (i) the aggregate amount of deposits, if any, received by Borrower from its retail customers in respect of unfilled orders for merchandise and the purchase price of layaway goods, (j) obligations,
liabilities or indebtedness (contingent or otherwise) of Borrower to Lender, any Affiliate of Lender or any other financial institution acceptable to Lender (but in each case as to any Affiliate of Lender or other financial institution, only to the
extent approved by Lender) arising under or in connection with any Hedge Agreement of Borrower with Lender, any Affiliate of Lender or any other financial institution acceptable to Lender, to the extent that such obligation, liabilities or
indebtedness constitute Obligations as such term is defined herein or otherwise receive the benefit of the security interest of Lender in any Collateral, (k) any and all duty and freight charges in respect of Inventory in transit to the
Borrower from outside the United States, (l) any and all rental payments, service charges or other amounts past due to lessors or owners and operators of real property at which any Inventory or Records are located, except to the extent such
amounts are being disputed by Borrower in good faith, as determined by Lender in its sole discretion, (m) any and all rental payments, service charges or other amounts to become due to any lessor or owner and operator of any retail location
outside the United States or any non-retail location other than the Borrower’s corporate headquarters (whether inside or outside the United States) at which any Inventory or Records are located unless such lessor or owner and operator is a
party to a Collateral Access Agreement with Lender; provided, that, the Reserves established pursuant to this clause (m) shall not exceed at any time the aggregate of amounts payable for the next three (3) months to such
lessor or owner and operator of such location; provided further, that, the foregoing limitation on the amount of the Reserves shall only apply so long as (i) no Event of Default shall exist or have occurred and be continuing,
(ii) neither Borrower nor Lender shall have received notice of any event of default by the Borrower under the lease with respect to such location, and (iii) Borrower has not granted to such lessor or owner and operator a security interest
or lien upon any assets of Borrower. 
 The amount of any Reserve established by Lender shall have a reasonable relationship to the event,
condition or other matter which is the basis for such Reserve as determined by Lender in good faith. In the event that based on the calculation of the Borrowing Base or the Adjusted Borrowing Base by Lender at the time, the establishment of a
Reserve at such time will result in 

  
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there being no Excess Borrowing Availability at such time, Lender shall give Borrower one (1) Business Days’ notice prior to establishing such new Reserves. Promptly upon the receipt of
such notice, Borrower shall take such action as may be required so that the event, condition or matters that is the basis for the Reserve no longer exists in a manner and to the extent reasonably satisfactory to Lender. In no event shall such notice
and opportunity limit the right of Lender to establish such Reserve unless Lender shall have determined that the event, condition or other matter that is the basis for such new Reserve no longer exists or has otherwise been addressed in a manner and
to the extent reasonably satisfactory to Lender so that Lender determines that such Reserve does not need to be established. 

1.114. “Restricted Payment” shall mean (a) any cash dividend or other cash distribution, direct or indirect, on account of
any shares of any class of Capital Stock of Borrower, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment on account of, or purchase or other acquisition for value, direct or indirect, of any shares of
any class of Capital Stock of Borrower other than redemptions of existing Capital Stock funded from the proceeds of the issuance of new Capital Stock, (c) any cash payment made to redeem, purchase, repurchase or retire, or to obtain the
surrender of, any outstanding warrants, options or other rights to acquire any shares of any class of Capital Stock of Borrower now or hereafter outstanding other than such payments made with respect to required tax withholdings on the vesting,
exercise and/or delivery of any outstanding warrants, options or other rights to acquire any shares of any class of Capital Stock or any employee or former employee of Borrower and/or its Affiliates, or (d) any payment to any Affiliate, officer
or director of Borrower, except as specifically permitted by this Agreement, made to any Affiliate of Borrower who is an employee or service provider of Borrower and/or its Affiliates in the ordinary course of business or otherwise set forth in the
Borrower’s annual budgeted financial statements for the applicable year. 
 1.115. “Revolving Loan Limit” shall
mean, at any time, the amount equal to the Maximum Credit minus the then outstanding principal amount of the Revolving Loans and the Letters of Credit provided to Borrower. 
 1.116. “Revolving Loans” shall mean the loans now or hereafter made by or on behalf of Lender on a revolving basis pursuant to the Credit Facility (involving advances, repayments and
readvances). 
 1.117. “Sale and Leaseback Transaction” shall have the meaning given to such term in
Section 9.23. 
 1.118. “Servicing Fee” shall have the meaning given to such term in Section 3.2(d).

 1.119. “Slow Moving Inventory” means Inventory which has been marked out of stock by Borrower, which Inventory is
subject to verification by Lender in connection with each field examination of the Collateral. 
 1.120. “Solvent”
shall mean, at any time with respect to any Person, that at such time such Person (a) is able to pay its debts as they mature and has (and has a reasonable basis to 

  
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believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its business consistent with its practices as of the date hereof, and (b) the assets and
properties of such Person at a fair valuation (and including as assets for this purpose at a fair valuation all rights of subrogation, contribution or indemnification arising pursuant to any guarantees given by such Person) are greater than the
Indebtedness of such Person, and including subordinated and contingent liabilities computed at the amount which, such person has a reasonable basis to believe, represents an amount which can reasonably be expected to become an actual or matured
liability (and including as to contingent liabilities arising pursuant to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability). 

1.121. “Store Accounts” shall have the meaning set forth in Section 6.3(a) hereof. 

1.122. “Subsidiary” or “subsidiary” shall mean, with respect to any Person, any corporation, limited liability
company, limited liability partnership or other limited or general partnership, trust, association or other business entity of which an aggregate of at least a majority of the outstanding Capital Stock or other interests entitled to vote in the
election of the board of directors of such corporation (irrespective of whether, at the time, Capital Stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency),
managers, trustees or other controlling persons, or an equivalent controlling interest therein, of such Person is, at the time, directly or indirectly, owned by such Person and/or one or more subsidiaries of such Person. 

1.123. “Termination Date” shall have the meaning set forth in Section 12.1(a) hereof. 

1.124. “Term Administrative Agent” shall mean Goldman Sachs Bank USA, in its capacity as administrative agent under the Term
Loan Documents, or any successor administrative agent under the Term Loan Documents. 
 1.125. “Term Collateral Agent”
shall mean Goldman Sachs Bank USA in its capacity as collateral agent under the Term Loan Documents, or any successor collateral agent under the Term Loan Documents. 
 1.126. “Term Lenders” shall mean the lenders from time to time party to the Term Loan Agreement. 
 1.127. “Term Loan Agreement” shall mean that certain Credit Agreement dated as of the Closing Date, by and among the Borrower, as borrower, the guarantors party thereto from time to time, the
Term Lenders, Goldman Sachs Bank USA, as Sole Lead Arranger and as Sole Lead Bookrunner, the Term Administrative Agent and the Term Collateral Agent, in form and substance reasonably satisfactory to the Lender, as the same may be amended, restated,
modified, supplemented, extended, renewed, refunded, replaced or refinanced from time to time in one or more agreements (in each case with the same or new lenders, institutional investors or agents), including any agreement extending the maturity
thereof or otherwise instructing all or any portion of the Indebtedness thereunder or increasing the amount loaned or issued thereunder or altering the maturity thereof, in each case as and to the extent permitted by this Agreement and the
Intercreditor Agreement. 

  
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 1.128. “Term Loan Documents” shall mean the Term Loan Agreement and all security
agreements, guarantees, pledge agreements and other agreements or instruments executed in connection therewith. 
 1.129.
“Term Loan Event of Default” shall mean an “Event of Default” as defined in the Term Loan Agreement. 

1.130. “Term Loan Maturity Date” shall mean the “Final Maturity Date” as defined in the Term Loan Agreement.

 1.131. “Term Priority Collateral” shall mean the “Term Loan First Lien Collateral” as defined in the
Intercreditor Agreement. 
 1.132. “Term Secured Parties” shall mean the “Secured Parties” as defined in the
Term Loan Agreement. 
 1.133. “UCC” shall mean the Uniform Commercial Code as in effect in the Commonwealth of
Pennsylvania and any successor statute, as in effect from time to time (except that terms used herein which are defined in the Uniform Commercial Code as in effect in the Commonwealth of Pennsylvania on the date hereof shall continue to have the
same meaning notwithstanding any replacement or amendment of such statute except as Lender may otherwise determine). 
 1.134.
“US Dollars”, “US$” and “$” shall each mean lawful currency of the United States of America. 

1.135. “Value” shall mean, as determined by Lender in good faith, with respect to Inventory, the lower of (a) cost
computed on a weighted average cost basis in accordance with GAAP or (b) market value; provided, that, for purposes of the calculation of the Borrowing Base, (i) the Value of the Inventory shall not include: (A) the
portion of the value of Inventory equal to the profit earned by any Affiliate on the sale thereof to Borrower or (B) write-ups or write-downs in value with respect to currency exchange rates and (ii) notwithstanding anything to the
contrary contained herein, the cost of the Inventory shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and accepted by Lender prior to the date hereof, if any. 

1.136. “Voting Stock” shall mean with respect to Borrower, (a) one (1) or more classes of Capital Stock of Borrower
having general voting powers to elect at least a majority of the board of directors, managers or trustees of Borrower, irrespective of whether at the time Capital Stock of any other class or classes have or might have voting power by reason of the
happening of any contingency, and (b) any Capital Stock of Borrower convertible or exchangeable without restriction at the option of the holder thereof into Capital Stock of Borrower described in clause (a) of this definition. 

  
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 SECTION 2. CREDIT FACILITIES 

2.1. Revolving Loans. 
 (a) Subject to and upon the terms and conditions contained herein, Lender agrees to make Revolving Loans to Borrower from time to time in amounts requested by Borrower in US Dollars up to the aggregate
amount outstanding at any time equal to the lesser of: (i) the Adjusted Borrowing Base of Borrower at such time and (ii) the Revolving Loan Limit at such time. 
 (b) On the terms and subject to the conditions hereof, Borrower may from time to time borrow, prepay and reborrow Revolving Loans. Lender shall not be required to make any Revolving Loan, if, after
giving effect thereto, the aggregate outstanding principal amount of Revolving Loans and Letter of Credit Obligations would exceed the Maximum Credit. 
 (c) Until the Termination Date, Borrower may request an increase in the amount of the Maximum Credit, up to an aggregate Maximum Credit of not more than $30,000,000, in increments of not less than
$2,500,000 (as the case may be, a “Maximum Credit Incremental Increase”), as follows: (A) Borrower shall notify Lender in writing that it is requesting a Maximum Credit Incremental Increase no less than five (5) Business Days
prior to the proposed effective date of such Maximum Credit Incremental Increase; and (B) no Default or Event of Default shall exist or have occurred and be continuing at the time that Borrower exercises such option, and the exercise of such
option in itself will not cause an Event of Default. 
 (d) Except in Lender’s discretion, or as otherwise provided
herein, (i) the aggregate amount of the Revolving Loans and the Letter of Credit Obligations outstanding at any time shall not exceed the Maximum Credit, and (ii) the aggregate principal amount of the Revolving Loans and Letter of Credit
Obligations outstanding at any time to Borrower shall not exceed the Adjusted Borrowing Base. 
 (e) In the event that
(i) the aggregate amount of the Revolving Loans and the Letter of Credit Obligations outstanding at any time exceed the Maximum Credit, or (ii) except as otherwise provided herein, the aggregate principal amount of the Revolving Loans and
Letter of Credit Obligations outstanding to Borrower exceed the Adjusted Borrowing Base, such event shall not limit, waive or otherwise affect any rights of Lender in such circumstances or on any future occasions and Borrower shall, immediately
repay to Lender the entire amount of any such excess(es). 
 2.2. Letters of Credit. 

(a) Subject to and upon the terms and conditions contained herein and in the Letter of Credit Documents, at the request of Borrower,
Lender agrees to issue, for the account of Borrower, one or more Letters of Credit denominated in US Dollars, containing terms and conditions acceptable to Lender. 
 (b) The Borrower shall give Lender three (3) Business Days’ prior written notice of Borrower’s request for the issuance of a Letter of Credit. Such notice shall be irrevocable and shall
specify the original face amount of the Letter of Credit requested, the 

  
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effective date (which date shall be a Business Day and in no event shall be a date less than ten (10) days prior to the end of the then current term of this Agreement) of issuance of such
requested Letter of Credit, whether such Letter of Credit may be drawn in a single or in partial draws, the date on which such requested Letter of Credit is to expire (which date shall be a Business Day and shall not be more than one year from the
date of issuance), the purpose for which such Letter of Credit is to be issued, and the beneficiary of the requested Letter of Credit. The Borrower shall attach to such notice the proposed terms of the Letter of Credit. The renewal or extension of
any Letter of Credit shall, for purposes hereof, be treated in all respects the same as the issuance of a new Letter of Credit hereunder. 
 (c) In addition to being subject to the satisfaction of the applicable conditions precedent contained in Section 4 hereof and the other terms and conditions contained herein, no Letter of Credit
shall be available unless each of the following conditions precedent have been satisfied in a manner satisfactory to Lender: (i) the Borrower shall have delivered to Lender at such times and in such manner as Lender may require, an application,
in form and substance reasonably satisfactory to Lender, for the issuance of the Letter of Credit and such other Letter of Credit Documents as may be required pursuant to the terms thereof, and the form and terms of the proposed Letter of Credit
shall be reasonably satisfactory to Lender, (ii) as of the date of issuance, no order of any court, arbitrator or other Governmental Authority shall purport by its terms to enjoin or restrain money center banks generally from issuing letters of
credit of the type and in the amount of the proposed Letter of Credit, and no law, rule or regulation applicable to money center banks generally and no request or directive (whether or not having the force of law) from any Governmental Authority
with jurisdiction over money center banks generally shall prohibit, or request that Lender refrain from, the issuance of letters of credit generally or the issuance of such Letter of Credit, and (iii) except in Lender’s sole discretion,
after giving effect to the issuance of such Letter of Credit, the Letter of Credit Obligations shall not exceed the Letter of Credit Limit. 
 (d) Borrower shall reimburse Lender immediately in US Dollars, with respect to any draw on any Letter of Credit. Each drawing under any Letter of Credit or other amount payable in connection therewith, if
not immediately repaid from the Payment Account, shall constitute a request by Borrower for a Revolving Loan in the amount of such drawing or other amount then due. The date of such Revolving Loan shall be the date of the drawing or as to other
amounts, the due date therefor. 
 (e) Borrower shall indemnify and hold Lender harmless from and against any and all losses,
claims, damages, liabilities, costs and expenses which Lender may suffer or incur in connection with any Letter of Credit and any documents, drafts or acceptances relating thereto, including any losses, claims, damages, liabilities, costs and
expenses due to any action taken by Lender or correspondent with respect to any Letter of Credit, except for such losses, claims, damages, liabilities, costs or expenses that are a direct result of the gross negligence or willful misconduct of
Lender as determined pursuant to a final non-appealable order of a court of competent jurisdiction. Borrower assumes all risks with respect to the acts or omissions of the drawer under or beneficiary of any Letter of Credit and for such purposes the
drawer or beneficiary shall be deemed Borrower’s agent. Borrower assumes all risks for, and agrees to pay, all foreign, Federal, State and local taxes, duties and levies relating to any goods subject to any Letter of Credit or any documents,
drafts or acceptances thereunder. Borrower 

  
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hereby releases and holds Lender harmless from and against any acts, waivers, errors, delays or omissions with respect to or relating to any Letter of Credit, except for the gross negligence or
willful misconduct of Lender as determined pursuant to a final, non-appealable order of a court of competent jurisdiction. The provisions of this subsection (e) shall survive the payment of Obligations and the termination of this Agreement.

 (f) In connection with Inventory purchased pursuant to any Letter of Credit, Borrower shall, at Lender’s request,
instruct all suppliers, carriers, forwarders, Customs Brokers, warehouses or others receiving or holding cash, checks, Inventory, documents or instruments in which Lender holds a security interest that upon Lender’s request, such items are to
be delivered to Lender and/or subject to Lender’s order, and if they shall come into such Borrower’s possession, to deliver them, upon Lender’s request, to Lender in their original form. Except as otherwise provided herein, Lender
shall not exercise such right to request such items so long as no Default or Event of Default shall exist or have occurred and be continuing. Except as Lender may otherwise specify, Borrower shall designate Lender as the consignee on all bills of
lading and other negotiable and non-negotiable documents. 
 (g) The obligations of Borrower to pay Letter of Credit
Obligations shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement. 
 2.3. Mandatory Prepayments. Notwithstanding the provisions of Section 6.4 hereof, so long as no Event of Default exists or has occurred and is continuing: 

(a) Asset Sales. Not later than five (5) Business Days following the receipt of Net Cash Proceeds of any Asset Sale by
Borrower, Borrower shall apply 100% of such Net Cash Proceeds to make prepayments in accordance with Section 6.4; provided that: 
 (i) so long as no Event of Default shall then exist or would arise therefrom, such proceeds shall not be required to be so applied on such date to the extent that Borrower shall have delivered an
officer’s certificate to Lender on or prior to such date stating that such Net Cash Proceeds are reasonably expected to be reinvested in assets of Borrower used or useful in the operations of Borrower within 365 days following the receipt of
such proceeds (which officer’s certificate shall set forth the estimates of the proceeds to be so expended), which time frame may be extended to 545 days following the date of receipt of such proceeds if Borrower shall have entered into a
binding agreement within such original 365-day time frame to make such reinvestment and such reinvestment shall not be complete within the original 365-day time frame; provided that, if the property subject to such Asset Sale constituted
Collateral, then all property purchased or otherwise acquired with the Net Cash Proceeds thereof pursuant to this subsection shall be made subject to the perfected Lien (subject only to Permitted Liens) of this Agreement in favor of Lender; and

 (ii) if all or any portion of such Net Cash Proceeds is not so reinvested within such 365-day period (or, if applicable,
545-day period), such unused portion shall be applied on the last day of such period as a mandatory prepayment as otherwise provided in this Section 2.3(a). 

  
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 (b) Casualty Events. Not later than five (5) Business Days following the
receipt of any Net Cash Proceeds from a Casualty Event by Borrower, Borrower shall apply an amount equal to 100% of such Net Cash Proceeds to make prepayments in accordance with Section 6.4. 

2.4. Cash Dominion; Borrower Account Protocols. Borrower shall, at all times, use Lender as its primary depository institution
and, except as expressly authorized in this Agreement, shall not open or maintain any Non-Wells Fargo Account. All current Non-Wells Fargo Accounts are disclosed in the Information Certificate and these and any future Non-Wells Fargo Accounts (which
may be opened and maintained only as expressly authorized herein) shall be subject in every way to the following terms and conditions: 
 (a) Borrower will use commercially reasonable efforts to deliver to Lender a Deposit Account Control Agreement with respect to each Primary Non-Wells Fargo Account Bank within ninety (90) days after
the Closing Date. 
 (b) Borrower shall not, directly or indirectly after the date hereof, open, establish or maintain any new
Non-Wells Fargo Account unless each of the following conditions is satisfied: (A) such new Non-Wells Fargo Account shall be reasonably necessary for the efficient operation of one or more of the Borrower’s retail locations and such
locations are not within commercially reasonable driving distance to a Lender branch bank or a DACA Account Bank; (B) Lender shall have received notice of such new Non-Wells Fargo Account with the regular quarterly financial reports submitted
by the Borrower for the fiscal quarter within which such Non-Wells Fargo Account was opened; and (C) to the extent that the opening of such Non-Wells Fargo Account renders the applicable bank a Primary Non-Wells Fargo Account Bank, Borrower
shall use commercially reasonable efforts to deliver to Lender a Deposit Account Control Agreement with respect to such newly-designated Primary Non-Wells Fargo Account Bank within sixty (60) days of notifying Lender of such Non-Wells Fargo
Account in its applicable quarterly financial report. 
 (c) So long as Borrower maintains Excess Borrowing Availability at all
times greater than or equal to thirty-five percent (35%) of the Maximum Credit in effect at such time, Borrower may maintain the Non-DACA Accounts subject to the restrictions set forth in subparagraphs (a) and (b) above and
subparagraphs (d) and (e) below. 
 (d) Within ninety (90) days of the occurrence of any Discretionary DACA
Protocol Event, Lender may in its reasonable discretion require that Borrower use commercially reasonable efforts to enter into a Deposit Account Control Agreement with each Primary Non-Wells Fargo Account Bank within ninety (90) days of such
notice. If Borrower is unable to deliver a Deposit Account Control Agreement with any Primary Non-Wells Fargo Account Bank within such ninety (90) day period, Lender may in its reasonable discretion within ten (10) Business Days of the end
of such ninety (90) day period direct Borrower to replace the accounts held by such Primary Non-Wells Fargo Account Bank with new accounts held by Lender or a DACA Account Bank, and Borrower will comply with such directive within a commercially
reasonable period of time not to exceed sixty (60) days. 

  
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 (e) Following the occurrence of any Cash Dominion Event, Borrower shall use commercially
reasonable efforts to enter into a Deposit Account Control Agreement with each Primary Non-Wells Fargo Account Bank within twenty (20) Business Days’ written notice to the Borrower from Lender of such Cash Dominion Event. If Borrower is
unable to enter into a Deposit Account Control Agreement with any Primary Non-Wells Fargo Account Bank within such twenty (20) Business Day period, Lender may during the resulting Cash Dominion Period require that Borrower close any or all
accounts held with such Primary Non-Wells Fargo Account Bank. 
 SECTION 3. INTEREST AND FEES 

3.1. Interest. 
 (a) Borrower shall pay interest in respect of all unpaid principal amounts of the Revolving Loans from the respective dates such principal amounts are advanced until paid (whether at stated maturity, on
acceleration or otherwise) at a rate per annum equal to: (i) for Revolving Loans made or outstanding as Prime Rate Loans, the Applicable Margin in effect from time to time for such Prime Rate Loans plus the Prime Rate in effect from time
to time; and (ii) for Revolving Loans made or outstanding as LMIR Rate Loans, the Applicable Margin in effect from time to time for such LMIR Rate Loans plus the LMIR Rate in effect from time to time. All interest accruing hereunder on
and after the date of any Event of Default or termination hereof shall be payable on demand. The applicable Interest Rate will be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed. 

(b) Borrower may from time to time request (i) LMIR Rate Loans, (ii) that Prime Rate Loans be converted to LMIR Rate Loans,
and (iii) that LMIR Rate Loans be converted to Prime Rate Loans, in each case in accordance with the terms and conditions of Section 6.6 hereof. Such request from Borrower shall specify the amount of the LMIR Rate Loans, the amount of the
Prime Rate Loans to be converted to LMIR Rate Loans, or the amount of LMIR Rate Loans to be converted to Prime Rate Loans. Subject to the terms and conditions contained herein, three (3) Business Days after receipt by Lender of any such request
from Borrower, such LMIR Rate Loans shall be made or Prime Rate Loans shall be converted to LMIR Rate Loans, or LMIR Rate Loans shall be converted to Prime Rate Loans, or such LMIR Rate Loans shall continue, as the case may be, provided,
that, (i) no Default or Event of Default shall exist or have occurred and be continuing, (ii) no party hereto shall have sent any notice of termination of this Agreement, (iii) Borrower shall have complied with such customary
procedures as are established by Lender from time to time for requests by Borrower for LMIR Rate Loans, (iv) Lender shall have determined that the LMIR Rate is available to Lender and can be readily determined as of the date of the request for
such LMIR Rate Loan by Borrower. Any request by or on behalf of a Borrower for LMIR Rate Loans, to convert Prime Rate Loans to LMIR Rate Loans, or to convert LMIR Rate Loans to Prime Rate Loans shall be irrevocable. Notwithstanding anything to the
contrary contained herein, Lender shall not be required to purchase United States Dollar deposits in the London interbank market or other applicable Eurodollar Rate market to fund any LMIR Rate Loans, but the provisions hereof shall be deemed to
apply as if Lender had purchased such deposits to fund the LMIR Rate Loans. 

  
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 (c) Any LMIR Rate Loans shall, at Lender’s option, upon notice by Lender, be
subsequently converted to Prime Rate Loans in the event that this Agreement shall terminate or not be renewed. Borrower shall pay to Lender, for the benefit of Lender, upon demand by Lender (or Lender may, at its option, charge any loan account of
Borrower) any amounts required to compensate Lender for any loss (including loss of anticipated profits), cost or expense incurred by such person, as a result of the conversion of LMIR Rate Loans to Prime Rate Loans pursuant to any of the foregoing.

 (d) Interest shall be payable by Borrower to Lender, monthly in arrears not later than the first day of each calendar month
with respect to all Revolving Loans. The interest rate on Prime Rate Loans and LMIR Rate Loans shall increase or decrease by an amount equal to each increase or decrease in the Prime Rate and the LMIR Rate, as the case may be, effective on the date
of any change in such applicable rates. In no event shall charges constituting interest payable by Borrower to Lender exceed the maximum amount or the rate permitted under any applicable law or regulation, and if any such part or provision of this
Agreement is in contravention of any such law or regulation, such part or provision shall be deemed amended to conform thereto. Lender shall provide Borrower with a monthly statement of interest expenses incurred in connection with the Revolving
Loans for the immediately preceding month. 
 3.2. Letter of Credit Fees. Borrower shall pay to Lender, a fee at a rate
equal to the Applicable L/C Rate on the average daily maximum amount available to be drawn under all Letters of Credit for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding calendar month,
computed for each day from the date of issuance to the date of expiration; except that Borrower shall pay, at Lender’s option, without notice, such fee at a rate two percent (2%) greater than the otherwise applicable rate on such average
daily maximum amount for: (i) the period from and after the date of termination or non-renewal hereof until Lender has received full and final payment of all Obligations (notwithstanding entry of a judgment against Borrower) and (ii) the
period from and after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing as determined by Lender. Such letter of credit fees shall be calculated on the basis of a three hundred sixty (360) day
year and actual days elapsed and the obligation of Borrower to pay such fee shall survive the termination or non-renewal of this Agreement. In addition to the letter of credit fees provided above, Borrower shall pay to Lender the letter of credit
fronting and negotiation fees agreed to by Borrower and Lender from time to time and the customary charges from time to time of Lender with respect to the issuance, amendment, transfer, administration, cancellation and conversion of, and drawings
under, such Letters of Credit. 
 3.3. Changes in Laws and Increased Costs of Loans. 

(a) If after the date hereof, either (i) any change in, or in the interpretation of, any law or regulation is introduced,
including, without limitation, with respect to reserve requirements, applicable to Lender or any banking or financial institution from whom Lender borrows funds or obtains credit (a “Funding Bank”), or (ii) a Funding Bank or Lender
complies with any future guideline or request from any central bank or other Governmental Authority or (iii) a Funding Bank or Lender determines that the adoption of any applicable law, rule or regulation regarding capital adequacy, or any
change therein, or any change in the 

  
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interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof has or would have the effect
described below, or a Funding Bank or Lender complies with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, and in the case of any event set forth
in this clause (iii), such adoption, change or compliance has or would have the direct or indirect effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could
have achieved but for such adoption, change or compliance (taking into consideration the Funding Bank’s or Lender’s policies with respect to capital adequacy) by an amount deemed by Lender to be material, and the result of any of the
foregoing events described in clauses (i), (ii) or (iii) is or results in an increase in the cost to Lender of funding or maintaining the Revolving Loans, the Letters of Credit or the Commitment, then Borrower shall from time to time upon
demand by Lender pay to Lender additional amounts sufficient to indemnify Lender against such increased cost on an after-tax basis (after taking into account applicable deductions and credits in respect of the amount indemnified). A certificate as
to the amount of such increased cost shall be submitted to Borrower by Lender and shall be conclusive, absent manifest error. 

(b) Notwithstanding any other provision herein, if the adoption of or any change in any law, treaty, rule or regulation or final,
non-appealable determination of an arbitrator or a court or other Governmental Authority or in the interpretation or application thereof occurring after the date hereof shall make it unlawful for Lender to make or maintain LMIR Rate Loans as
contemplated by this Agreement, (i) Lender shall promptly give written notice of such circumstances to Borrower (which notice shall be withdrawn whenever such circumstances no longer exist), (ii) the commitment of Lender hereunder to make
LMIR Rate Loans and convert Prime Rate Loans to LMIR Rate Loans shall forthwith be canceled and, until such time as it shall no longer be unlawful for Lender to make or maintain LMIR Rate Loans, Lender shall then have a commitment only to make a
Prime Rate Loan when a LMIR Rate Loan is requested and (iii) Revolving Loans then outstanding as LMIR Rate Loans, if any, shall be converted automatically to Prime Rate Loans. 

SECTION 4. CONDITIONS PRECEDENT AND POST-CLOSING DELIVERIES 

4.1. Conditions Precedent to Initial Revolving Loans and Letters of Credit. The obligation of Lender to make the initial Revolving
Loans or to issue the initial Letters of Credit hereunder is subject to the satisfaction of, or waiver of, immediately prior to or concurrently with the making of such Revolving Loan or the issuance of such Letter of Credit of each of the following
conditions precedent: 
 (a) Lender shall have received or shall have confirmed prior receipt, in form and substance
satisfactory to Lender, all releases, terminations and such other documents as Lender may request to evidence and effectuate the termination and release of the interest of any third party in and to any assets and properties of Borrower (except as to
Permitted Liens), duly authorized, executed and delivered by such third party, including, but not limited to, (i) UCC termination statements for all UCC financing statements previously filed by such third party or its predecessors, as secured
party and Borrower, as debtor; and (ii) satisfactions and discharges of any mortgages, deeds of trust or deeds to secure debt by Borrower in favor of such third party, in form acceptable for recording with the appropriate Governmental
Authority; 

  
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 (b) all requisite corporate action and proceedings in connection with this Agreement and
the other Financing Agreements shall be satisfactory in form and substance to Lender, and Lender shall have received all information and copies of all documents, including records of requisite corporate action and proceedings which Lender may have
requested in connection therewith, such documents where requested by Lender or its counsel to be certified by appropriate corporate officers or Governmental Authority (and including a copy of the certificate of incorporation of Borrower certified by
the Secretary of State); 
 (c) the Intercreditor Agreement shall have been executed by the parties thereto; 

(d) Lender shall have received or shall have confirmed prior receipt of all financial information, projections, budgets, business plans,
cash flows and such other information as Lender shall request from time to time from Borrower, all in form and substance satisfactory to Lender, including, without limitation, (i) audited financial statements for the fiscal year ending
January 28, 2012 (including balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), and the accompanying notes thereto, all in reasonable detail, fairly presenting in all material
respects the financial position and the results of the operations of Borrower as of the end of such fiscal year, together with the unqualified opinion of independent certified public accountants with respect to the audited financial statements,
which accountants shall be an independent accounting firm selected by Borrower and acceptable to Lender, that such audited financial statements have been prepared in accordance with GAAP, and present fairly in all material respects the results of
operations and financial condition of Lender as of the end of and for the fiscal year then ended; provided that, to the extent that such financial statements are in draft form only, the sole contingency for completion and delivery of such audited
financial statements in accordance with the requirements of this subsection (i) shall be the closing on the Credit Facility as contemplated by the terms of this Agreement; (ii) budgeted monthly balance sheets, income statements, statements
of cash flows and availability of Borrower for the period up through the fiscal year ending February 2, 2013; (iii) projected annual financial statements of Borrower for the period of three (3) years after the Closing Date;
(iv) an opening pro forma balance sheet for Borrower; and (v) any updates or modifications to the budgeted financial statements of Borrower previously provided by Borrower to Lender; 

(e) Lender shall have received an opinion letter from counsel to Borrower with respect to the Financing Agreements and such other
matters as Lender shall require, in form and substance satisfactory to Lender; 
 (f) [intentionally left blank]; 

(g) Lender shall have received or shall have confirmed prior receipt, in form and substance satisfactory to Lender, all consents,
waivers, acknowledgments and other agreements from third persons which Lender may deem necessary or desirable in order to permit, protect and perfect its security interests in and liens upon the Collateral or to effectuate the provisions or purposes
of this Agreement and the other Financing Agreements, but not including any such materials designated for post-closing delivery in Section 4.3 hereof; 

  
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 (h) the Excess Borrowing Availability of Borrower as determined by Lender, as of the date
hereof, shall be not less than $15,000,000 after giving effect to any Revolving Loans made or to be made on the date hereof and Letters of Credit issued or to be issued on the date hereof in connection with the initial transactions hereunder, as
well as the payment of all fees and expenses in connection therewith; 
 (i) [intentionally left blank]; 

(j) Lender shall have received or shall have confirmed prior receipt of the Term Loan Agreement and all other documents executed in
connection with the Term Loan including, without limitation, any solvency certification; 
 (k) Lender shall have received
evidence, in form and substance satisfactory to Lender, that Lender has a valid perfected first priority security interest in all of the Collateral (subject only to Permitted Liens); 

(l) Lender shall have received or shall have confirmed prior receipt and reviewed lien and judgment search results for the jurisdiction
of organization of Borrower and for any and all other jurisdictions in which assets of Borrower are located as reasonably required by Lender, which search results shall be in form and substance satisfactory to Lender; 

(m) Lender shall have received or shall have confirmed prior receipt evidence of insurance and loss payee endorsements in favor of
Lender as to Borrower’s casualty and business interruption insurance, each in form and substance satisfactory to Lender, and any other certificates of insurance policies and/or endorsements naming Lender as loss payee as required by Lender
under this Agreement or any other Financing Agreement; 
 (n) the other Financing Agreements and all instruments and documents
hereunder and thereunder shall have been duly executed and delivered to Lender, in form and substance satisfactory to Lender; 

(o) Borrower shall have paid all costs and expenses of Lender incurred in connection with the negotiation, preparation and
administration of this Agreement and the other Financing Agreements, including, without limitation, the fees and costs of counsel to the Lender; and 
 (p) no Default or Event of Default shall exist or have occurred and be continuing on and as of the date of the making of such Revolving Loan or providing each such Letter of Credit and after giving effect
thereto. 

  
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 4.2. Conditions Precedent to All Revolving Loans and Letters of Credit. The
obligation of Lender to make the Revolving Loans, including the initial Revolving Loans, or to issue any Letter of Credit, including the initial Letters of Credit, is subject to the further satisfaction of, immediately prior to or concurrently with
the making of each such Revolving Loan or the issuance of such Letter of Credit, each of the following conditions precedent: 

(a) all representations and warranties contained herein and in the other Financing Agreements shall be true and correct, in all material
respects, with the same effect as though such representations and warranties had been made on and as of the date of the making of each such Revolving Loan or providing each such Letter of Credit and after giving effect thereto, except to the extent
that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate, in all material respects, on and as of such earlier date); 

(b) no law, regulation, order, judgment or decree of any Governmental Authority shall exist, and no action, suit, investigation,
litigation or proceeding shall be pending or threatened in any court or before any arbitrator or Governmental Authority, which (A) purports to enjoin, prohibit, restrain or otherwise affect (1) the making of the Revolving Loans or
providing the Letters of Credit, or (2) the consummation of the transactions contemplated pursuant to the terms hereof or the other Financing Agreements or (B) has or could have a reasonable likelihood of having a Material Adverse Effect;
and 
 (c) no Default or Event of Default shall exist or have occurred and be continuing on and as of the date of the making of
such Revolving Loan or providing each such Letter of Credit and after giving effect thereto. 
 4.3. Post-Closing
Deliveries. Within ninety (90) days of the Closing Date (subject to any extension of such period by Lender in its sole and absolute discretion), Borrower shall use commercially reasonable efforts to deliver to Lender in form and substance
reasonably satisfactory to Lender: 
 (a) Deposit Account Control Agreements as provided in Section 2.4(a); 

(b) Collateral Access Agreements for Borrower’s corporate headquarters and distribution center in Delaware; 

(c) A certificate of good standing from the Secretary of State of Illinois; and 

(d) A Credit Card Acknowledgment from Paymentech, LLC. 
 SECTION 5. GRANT AND PERFECTION OF SECURITY INTEREST 
 5.1. Continuing
Grant of Security Interest. To secure payment and performance of all Obligations, Borrower reaffirms its prior grant of and hereby grants to Lender a continuing security interest in, a lien upon, and a right of set off against, and hereby
assigns to Lender, as security, all personal and real property and fixtures, and interests in property and fixtures, of Borrower, whether now owned or hereafter acquired or existing, and wherever located (together with all other collateral security
for the Obligations at any time granted to or held or acquired by Lender, collectively, the “Collateral”), including: 
 (a) all Accounts; 

  
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 (b) all general intangibles, including, without limitation, all Intellectual Property;

 (c) all goods, including, without limitation, Inventory and Equipment, except for any Equipment that is subject at any time
to the purchase money security interest of any Person (other than Lender or an Affiliate of Lender), which lien secures Indebtedness due and owing to such Person in accordance with the terms of Section 9.9 hereof; 

(d) all Real Property and fixtures; 
 (e) all chattel paper, including, without limitation, all tangible and electronic chattel paper; 
 (f) all instruments, including, without limitation, all promissory notes; 
 (g)
all documents; 
 (h) all deposit accounts; 
 (i) all letters of credit, banker’s acceptances and similar instruments and including all letter-of-credit rights; 
 (j) all supporting obligations and all present and future liens, security interests, rights, remedies, title and interest in, to and in respect of Receivables and other Collateral, including
(i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit and credit and other insurance related to the Collateral, (ii) rights of stoppage in transit, replevin, repossession, reclamation and other
rights and remedies of an unpaid vendor, lienor or secured party, (iii) goods described in invoices, documents, contracts or instruments with respect to, or otherwise representing or evidencing, Receivables or other Collateral, including
returned, repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other persons securing the obligations of account debtors; 
 (k) all 1) investment property (including securities, whether certificated or uncertificated, securities accounts, security entitlements, commodity contracts or commodity accounts) and 2) monies, credit
balances, deposits and other property of Borrower now or hereafter held or received by or in transit to Lender or at any other depository or other institution from or for the account of Borrower, whether for safekeeping, pledge, custody,
transmission, collection or otherwise; 
 (l) all commercial tort claims, including, without limitation, those identified in
the Information Certificate; 
 (m) to the extent not otherwise described above, all Receivables; 

(n) all Records; and 

  
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 (o) all products and proceeds of the foregoing, in any form, including insurance proceeds
and all claims against third parties for loss or damage to or destruction of or other involuntary conversion of any kind or nature of any or all of the other Collateral. 
 5.2. Excluded Collateral. Notwithstanding anything contained in this Agreement to the contrary, the term “Collateral” shall not include: 

(a) fee-owned real property with a fair market value equal to or less than $2,000,000 and any leasehold interest; 

(b) motor vehicles and other assets subject to certificates of title; 

(c) commercial tort claims with reasonably predicted value equal to or less than $500,000; 

(d) any permit, lease, license, contract or agreement held by Borrower or to which Borrower is a party, and any of its rights, title or
interest thereunder, if and to the extent that a security interest is prohibited by or in violation of (a) any law, rule or regulation applicable to Borrower, or (b) a term, provision or condition of any such permit, lease, license,
contract or agreement (unless such law, rule, regulation, term, provision or condition would be rendered ineffective with respect to the creation of the security interest hereunder pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or
any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided however that the Collateral shall include (and such security interest shall attach)
immediately at such time as the relevant contractual or legal prohibition shall no longer be applicable and to the extent severable, shall attach immediately to any portion of such permit, lease, license, contract or agreement not subject to the
prohibitions specified in (a) and (b) above; provided further that the exclusions referred to in clause (a) of this Section 5.2 shall not include any proceeds (as defined in the UCC) of any such permit, lease, license, contract
or agreement; 
 (e) in any of the outstanding capital stock of a Foreign Subsidiary in excess of 65% of the voting power of
all classes of capital stock of such Foreign Subsidiary entitled to vote; provided that immediately upon the amendment of the Code to allow the pledge of a greater percentage of the voting power of capital stock in a Foreign Subsidiary without
adverse tax consequences, the Collateral shall include, and the security interest granted by Borrower shall attach to, such greater percentage of capital stock of each such Foreign Subsidiary; 

(f) any “intent-to-use” application for registration of a trademark filed pursuant to Section 1(b) of the Lanham Act, 15
U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act with respect thereto, solely to the
extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration that issues from such intent-to-use application under applicable federal
law; 
 (g) any Excluded Accounts; 

  
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 (h) any property or asset only to the extent and for so long as the grant of a security
interest in such property or asset is prohibited by any applicable law or requires a consent not obtained, and has not been obtained after use by Borrower of commercially reasonable efforts to obtain such consent, of any Governmental Authority
pursuant to applicable Legal Requirements (after giving effect to Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction); 

(i) Capital Stock of a person (other than a wholly owned Subsidiary) the pledge of which would violate the organizational documents of
such person that is binding on or relating to such capital stock or equity interests but solely to the extent and for so long as such restrictions exists; 
 (j) any property (and proceeds thereof) that is subject to a lien securing purchase money Indebtedness or Capital Leases, in each case permitted hereunder, to the extent the documents relating to such
lien securing such purchase money Indebtedness or Capital Leases would not permit such property (and proceeds thereof) to be subject to the liens created hereunder (provided that immediately upon the ineffectiveness, lapse or termination of any such
restriction, the Collateral shall include, and the security interest granted by Borrower shall attach to, such property (and proceeds thereof)); 
 (k) any governmental licenses or state or local franchises, charters and authorizations, to the extent security interests in such licenses, franchises, charters and authorizations are prohibited or
restricted by applicable law; and 
 (l) proceeds and products from any and all of the foregoing excluded collateral described
in clauses (a) through (k), unless such proceeds or products would otherwise constitute ABL Priority Collateral. 
 Notwithstanding the
foregoing, assets will be excluded from the Collateral in circumstances where in the reasonable judgment and sole discretion of Lender the costs of obtaining a security interest in such assets exceed the practical benefit to Lender afforded thereby.

 5.3. Perfection of Security Interests. 
 (a) Borrower irrevocably and unconditionally authorizes Lender (or its agent) to file at any time and from time to time such financing statements with respect to the Collateral naming Lender or its
designee as the secured party and Borrower as debtor, as Lender may require, and including any other information with respect to Borrower or otherwise required by part 5 of Article 9 of the Uniform Commercial Code of such jurisdiction as Lender may
determine, together with any amendment and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or after the date hereof. Borrower hereby ratifies and approves all financing statements
naming Lender or its designee as secured party and Borrower, as the case may be, as debtor with respect to the Collateral (and any amendments with respect to such financing statements) filed by or on behalf of Lender prior to the date hereof and
ratifies and confirms the authorization of Lender to file such financing statements (and amendments, if any). Borrower hereby authorizes Lender to adopt on behalf of Borrower any symbol required for authenticating any electronic filing. In no event
shall 

  
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Borrower at any time file, or permit or cause to be filed, any correction statement or termination statement with respect to any financing statement (or amendment or continuation with respect
thereto) naming Lender or its designee as secured party and Borrower as debtor without Lender’s prior written authorization. 
 (b) Borrower does not have any chattel paper (whether tangible or electronic) or any instruments as of the date hereof with a value individually in excess of $100,000, except as set forth in the
Information Certificate. In the event that Borrower shall be entitled to or shall receive any chattel paper or instrument after the date hereof with a value individually in excess of $100,000 that constitutes ABL Priority Collateral (collectively
the “ABL Chattel Paper/Instruments”), Borrower shall promptly notify Lender thereof in writing. Promptly upon the receipt thereof by or on behalf of Borrower, Borrower shall deliver, or cause to be delivered to Lender, all ABL Chattel
Paper/Instruments that Borrower has or may at any time acquire, accompanied by such instruments of transfer or assignment duly executed in blank as Lender may from time to time specify, in each case except as Lender may otherwise agree. At
Lender’s option, Borrower shall, or Lender may at any time on behalf of Borrower, cause the original of any such ABL Chattel Paper/Instruments to be conspicuously marked in a form and manner acceptable to Lender with the following legend
referring to such chattel paper or instruments as applicable: “This [chattel paper][instrument] is subject to the security interest of Wells Fargo Bank, National Association and any sale, transfer, assignment or encumbrance of this [chattel
paper][instrument] violates the rights of such secured party.” 
 (c) In the event that any Borrower shall at any time
hold or acquire an interest in any electronic chattel paper or any “transferable record” (as such term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction) with a value individually in excess of $100,000, Borrower shall promptly notify Lender thereof in writing. Promptly upon Lender’s request, Borrower shall take, or
cause to be taken, such actions as Lender may request to give Lender control of such electronic chattel paper under the UCC and control of such transferable record under Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as in effect in such jurisdiction. 
 (d) Borrower does not have any deposit accounts as of the date hereof, except as set forth in the Information Certificate. 
 (e) Borrower does not own or hold, directly or indirectly, beneficially or as record owner or both, any investment property, as of the date hereof, or have any investment account, securities account,
commodity account or other similar account with any bank or other financial institution or other securities intermediary or commodity intermediary as of the date hereof, except as set forth in the Information Certificate. 

(i) In the event that Borrower shall be entitled to or shall at any time after the date hereof hold or acquire any certificated
securities with a value in excess of $100,000 that constitutes ABL Priority Collateral, Borrower shall promptly endorse, assign and deliver the same to Lender, accompanied by such instruments of transfer or assignment duly executed in blank as
Lender may from time to time specify. 

  
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 (ii) Borrower shall not, directly or indirectly, after the date hereof open, establish or
maintain any investment account, securities account, commodity account or any other similar account (other than a deposit account as permitted herein) constituting ABL Priority Collateral with any securities intermediary or commodity intermediary
unless such account is with Lender, or subject to a control agreement in favor of Lender in form and substance satisfactory to Lender. 
 (f) Borrower is not the beneficiary or otherwise entitled to any right to payment under any letter of credit, banker’s acceptance or similar instrument as of the date hereof with a value in excess of
$100,000, except as set forth in the Information Certificate. In the event that Borrower shall be entitled to or shall receive any right to payment under any letter of credit, banker’s acceptance or any similar instrument with a value in excess
of $100,000 that constitutes ABL Priority Collateral, whether as beneficiary thereof or otherwise after the date hereof, such Borrower shall promptly notify Lender thereof in writing. Borrower shall immediately, as Lender may specify, either
(i) deliver, or cause to be delivered to Lender, with respect to any such letter of credit, banker’s acceptance or similar instrument, the written agreement of the issuer and any other nominated person obligated to make any payment in
respect thereof (including any confirming or negotiating bank), in form and substance satisfactory to Lender, consenting to the assignment of the proceeds of such letter of credit to Lender by Borrower and agreeing to make all payments thereon
directly to Lender or as Lender may otherwise direct, or (ii) cause Lender to become, at Borrower’s expense, the transferee beneficiary of the letter of credit, banker’s acceptance or similar instrument (as the case may be).

 (g) Borrower does not have any commercial tort claims as of the date hereof with a value in excess of $100,000, except as
set forth in the Information Certificate. In the event that Borrower shall at any time after the date hereof have any commercial tort claims with a value in excess of $100,000 that constitutes ABL Priority Collateral, Borrower shall promptly notify
Lender thereof in writing, which notice shall (i) set forth in reasonable detail the basis for and nature of such commercial tort claim and (ii) include the express grant by Borrower to Lender of a security interest in such commercial tort
claim (and the proceeds thereof). In the event that such notice does not include such grant of a security interest, the sending thereof by Borrower to Lender shall be deemed to constitute such grant to Lender. Upon the sending of such notice, any
commercial tort claim described therein shall constitute part of the Collateral and shall be deemed included therein. Without limiting the authorization of Lender provided in Section 5.2(a) hereof or otherwise arising by the execution by
Borrower of this Agreement or any of the other Financing Agreements, Lender is hereby irrevocably authorized from time to time and at any time to file such financing statements naming Lender or its designee as secured party and Borrower as debtor,
or any amendments to any financing statements, covering any such commercial tort claim as Collateral. In addition, Borrower shall promptly upon Lender’s request, execute and deliver, or cause to be executed and delivered, to Lender such other
agreements, documents and instruments as Lender may require in connection with such commercial tort claim. 
 (h) Borrower does
not have any goods, documents of title or other Collateral in the custody, control or possession of a third party as of the date hereof, except as set forth in the Information Certificate and except for goods located in the United States of America
in transit to a location of Borrower permitted herein in the ordinary course of business of such 

  
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Borrower in the possession of the carrier transporting such goods. Upon the reasonable request by Lender, Borrower shall use commercially reasonable efforts to deliver or cause to be delivered to
Lender a Collateral Access Agreement (i) with each lessor of premises for each and every non-retail location at which Collateral is located, including, without limitation, any distributions centers and warehouses; and (ii) with each
Customs Broker. In the event that any goods, documents of title or other Collateral are at any time after the date hereof in the custody, control or possession of any other person not referred to in the Information Certificate or such carriers,
Borrower shall promptly notify Lender thereof in writing. Promptly upon Lender’s reasonable request, Borrower shall use commercially reasonable efforts to deliver to Lender a Collateral Access Agreement duly authorized, executed and delivered
by such person and the Borrower. 
 (i) Subject to the terms of the Intercreditor Agreement, Borrower shall take any other
actions reasonably requested by Lender from time to time to cause the attachment, perfection and priority (subject only to Permitted Liens) of, and the ability of Lender to enforce, the security interest of Lender in any and all of the Collateral,
including, without limitation, (i) executing, delivering and, where appropriate, filing financing statements and amendments relating thereto under the UCC or other applicable law, to the extent, if any, that Borrower’s signature thereon is
required therefor, (ii) causing Lender’s name to be noted as secured party on any certificate of title for a titled good if such notation is a condition to attachment, perfection or priority of, or ability of Lender to enforce, the
security interest of Lender in such Collateral, (iii) complying with any provision of any statute, regulation or treaty of the United States of America as to any Collateral if compliance with such provision is a condition to attachment,
perfection or priority of, or ability of Lender to enforce, the security interest of Lender in such Collateral, (iv) obtaining the consents and approvals of any Governmental Authority or third party, including, without limitation, any consent
of any licensor, lessor or other person obligated on Collateral, and taking all actions required by the UCC or by other law, as applicable in any relevant jurisdiction. 
 SECTION 6. COLLECTION AND ADMINISTRATION 
 6.1. Borrower’s Loan
Accounts. Lender shall maintain one or more loan account(s) on its books in which shall be recorded (a) all Revolving Loans, Letters of Credit and other Obligations and the Collateral, (b) all payments made by or on behalf of Borrower,
and (c) all other appropriate debits and credits as provided in this Agreement, including fees, charges, costs, expenses and interest. All entries in the loan account(s) shall be made in accordance with Lender’s customary practices as in
effect from time to time. 
 6.2. Statements. Lender shall render to Borrower each month a statement setting forth the
balance in the Borrower’s loan account(s) maintained by Lender for Borrower pursuant to the provisions of this Agreement, including principal, interest, fees, costs and expenses. Each such statement shall be subject to subsequent adjustment by
Lender but shall, absent manifest errors or omissions, be considered correct and deemed accepted by Borrower and conclusively binding upon Borrower as an account stated except to the extent that Lender receives a written notice from Borrower of any
specific exceptions of Borrower thereto within thirty (30) days after the date such statement has been received by Borrower. Until such time as Lender shall have rendered to Borrower a written statement as provided above, the balance in
Borrower’s loan account(s) shall be presumptive evidence of the amounts due and owing to Lender by Borrower. 

  
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 6.3. Collection of Accounts. 

(a) Borrower shall establish and continue to maintain, at its expense, deposit account arrangements and merchant payment arrangements
with Lender, the approved Non-Wells Fargo Account Banks set forth on Schedule 8.11 to the Information Certificate, and such other banks as Borrower may hereafter designate in accordance with section 5.3(d) hereof. The Non-Wells Fargo Account Banks
set forth on Schedule 8.11 to the Information Certificate constitute all of the banks (other than the Lender) with which Borrower has deposit account arrangements and merchant payment arrangements as of the date hereof and identifies each of the
Non-Wells Fargo Accounts at such banks. 
 (b) Borrower shall deposit all proceeds from sales of Inventory in every form,
including, without limitation, cash, checks, credit card sales drafts, credit card sales or charge slips or receipts and other forms of daily store receipts, from each retail store location of Borrower on each Business Day into the store account of
Borrower used solely for such purpose (each, a “Store Account”), or otherwise into the Payment Account. 
 (c)
Borrower shall send, or cause to be sent to the Payment Account, all such funds deposited into the Store Accounts by wire transfer or other electronic funds transfer no less frequently than (i) weekly during any Non-Peak Period,
(ii) bi-weekly during any Peak Period, or (iii) more frequently upon Lender’s request at any time that an Event of Default has occurred and is continuing, in each case except for nominal amounts which are required to be maintained in
such Store Accounts under the terms of Borrower’s arrangements with the banks at which such Store Accounts are maintained. 
 (d) Following the occurrence of any Cash Dominion Event, Borrower shall direct all Non-Wells Fargo Account Banks (or the Lender shall instruct all Primary Non-Wells Fargo Account Banks) to forward all
funds deposited into the Store Accounts by daily electronic funds transfer to the Payment Account, subject only to holdback of nominal amounts which are required to be maintained in such Non-Wells Fargo Accounts by such Non-Wells Fargo Account Bank.

 (e) For purposes of calculating the amount of the Revolving Loans available to Borrower, payments will be applied
(conditional upon final collection) to the Obligations on the Business Day of receipt by Lender of immediately available funds in the Payment Account provided such payments and notice thereof are received in accordance with Lender’s usual and
customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on the next Business Day. For the purposes of calculating interest on the Obligations, such payments
or other funds received will be applied (conditional upon final collection) to the Obligations on the date of receipt of immediately available funds by Lender in the Payment Account provided such payments or other funds and notice thereof are
received in accordance with Lender’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on the next Business Day. The economic benefit of
the timing in the application of payments (and the administrative charge with respect thereto, if applicable) shall be for the sole benefit of Lender. 

  
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 (f) Borrower and its employees and agents shall, acting as trustee for Lender, receive, as
the property of Lender, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Receivables or other ABL Priority Collateral which come into their possession or under their control and promptly upon receipt thereof,
shall deposit or cause the same to be deposited into a Wells Fargo Account or an approved Non-Wells Fargo Account, or remit the same or cause the same to be remitted, in kind, to Lender. Borrower agrees to reimburse Lender on demand for any amounts
owed or paid to any Non-Wells Fargo Account Bank or any other bank, financial institution or other person involved in the transfer of funds to or from a Non-Wells Fargo Account arising out of Lender’s payments to or indemnification of such
bank, financial institution or other person. The obligations of Borrower to reimburse Lender for such amounts pursuant to this Section 6.3 shall survive the termination of this Agreement. 

6.4. Payments. 

(a) All Obligations shall be payable to the Payment Account or such other place as Lender may designate from time to time. Subject to
the other terms and conditions contained herein, Lender shall apply payments received or collected from Borrower or for the account of Borrower (including the monetary proceeds of collections or of realization upon any Collateral) as follows:
first, to pay any fees, indemnities or expense reimbursements then due to Lender from Borrower; second, to pay interest due in respect of any Revolving Loans or Letter of Credit Obligations; third, to pay principal due in
respect of the Revolving Loans and to pay Obligations then due arising under or pursuant to any Hedge Agreements of Borrower with a Bank Product Provider (up to the amount of any then effective Reserve established in respect of such Obligations), on
a pro rata basis; fourth, to pay or prepay any other Obligations whether or not then due, in such order and manner as Lender determines or to be held as cash collateral in connection with any Letter of Credit Obligations or
other contingent Obligations (but not including for this purpose any Obligations arising under or pursuant to any Bank Products); and fifth, to pay or prepay any Obligations arising under or pursuant to any Bank Products (other than to the
extent provided for above) on a pro rata basis. Notwithstanding anything to the contrary contained in this Agreement, (i) unless so directed by Borrower, or unless a Default or an Event of Default shall exist or have occurred and
be continuing, Lender shall not apply any payments which it receives to any LMIR Rate Loans, except in the event that there are no outstanding Prime Rate Loans; and (ii) to the extent Borrower uses any proceeds of the Revolving Loans or Letters
of Credit to acquire rights in or the use of any Collateral or to repay any Indebtedness used to acquire rights in or the use of any Collateral, payments in respect of the Obligations shall be deemed applied first to the Obligations arising from
Revolving Loans and Letters of Credit that were not used for such purposes and second to the Obligations arising from Revolving Loans and Letters of Credit the proceeds of which were used to acquire rights in or the use of any Collateral in the
chronological order in which Borrower acquired such rights in or the use of such Collateral. 
 (b) At Lender’s option,
all principal, interest, fees, costs, expenses and other charges provided for in this Agreement or the other Financing Agreements may be charged 

  
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directly to the Payment Account or other loan account(s) of Borrower maintained by Lender. If after receipt of any payment of, or proceeds of Collateral applied to the payment of, any of the
Obligations, Lender is required to surrender or return such payment or proceeds to any Person for any reason, then the Obligations intended to be satisfied by such payment or proceeds shall be reinstated and continue and this Agreement shall
continue in full force and effect as if such payment or proceeds had not been received by Lender. Borrower shall be liable to pay to Lender, and does hereby indemnify and hold Lender harmless for the amount of any payments or proceeds surrendered or
returned. This Section 6.4(b) shall remain effective notwithstanding any contrary action which may be taken by Lender in reliance upon such payment or proceeds. This Section 6.4 shall survive the payment of the Obligations and the
termination of this Agreement. 
 6.5. Taxes. 
 (a) Any and all payments by or on account of any of the Obligations shall be made free and clear of and without deduction or withholding for or on account of, any setoff, counterclaim, defense, duties,
taxes, levies, imposts, fees, deductions, charges, withholdings, liabilities, restrictions or conditions of any kind, excluding (A) taxes measured by Lender’s net income, and franchise taxes imposed on it, by the jurisdiction (or any
political subdivision thereof) under the laws of which Lender is organized, (B) any United States withholding taxes payable with respect to payments under the Financing Agreements under laws (including any statute, treaty or regulation) in
effect on the date hereof applicable to Lender, but not excluding any United States withholding taxes payable as a result of any change in such laws occurring after the date hereof and (C) taxes measured by Lender’s net income, and
franchise taxes imposed on it as a result of a present or former connection between Lender and the jurisdiction of the Governmental Authority imposing such tax or any taxing authority thereof or therein (all such non-excluded taxes, levies, imposts,
fees, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). 
 (b) If any
Taxes shall be required by law to be deducted from or in respect of any sum payable in respect of the Obligations to Lender (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 6.5), Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions, (iii) Borrower
shall pay the full amount deducted to the relevant taxing authority or other authority in accordance with applicable law and (iv) Borrower shall deliver to Lender evidence of such payment. 

(c) Borrower agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar
levies of the United States of America or any political subdivision thereof or any applicable foreign jurisdiction, and all liabilities with respect thereto, in each case arising from any payment made hereunder or under any of the other Financing
Agreements or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any of the other Financing Agreements (collectively, “Other Taxes”). 

(d) Borrower shall indemnify Lender for the full amount of Taxes and Other Taxes paid by Lender, and any liability (including for
penalties, interest and expenses) 

  
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arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within thirty (30) days from the
date Lender makes written demand therefor. 
 (e) As soon as practicable after any payment of Taxes or Other Taxes by Borrower,
Borrower shall furnish to Lender, at its address referred to herein, the original or a certified copy of a receipt evidencing payment thereof. 
 (f) Without prejudice to the survival of any other agreements of Borrower hereunder or under any of the other Financing Agreements, the agreements and obligations of Borrower contained in this
Section 6.5 shall survive the termination of this Agreement and the payment in full of the Obligations. 
 6.6.
Authorization to Make Revolving Loans. Lender is authorized to make the Revolving Loans based upon telephonic or other instructions received from anyone purporting to be an officer of Borrower or other authorized person or, at the discretion
of Lender, if such Revolving Loans are necessary to satisfy any Obligations. All requests for Revolving Loans or Letters of Credit hereunder shall specify the date on which the requested advance is to be made (which day shall be a Business Day) and
the amount of the requested Revolving Loan. Requests received after 11:00 a.m. Philadelphia time on any day shall be deemed to have been made as of the opening of business on the immediately following Business Day. All Revolving Loans and Letters of
Credit under this Agreement shall be conclusively presumed to have been made to, and at the request of and for the benefit of Borrower when deposited to the credit of Borrower or otherwise disbursed or established in accordance with the instructions
of Borrower or in accordance with the terms and conditions of this Agreement. 
 6.7. Use of Proceeds. Borrower shall use
the proceeds of the Revolving Loans and Letters of Credit only for general operating, working capital and other proper corporate purposes of Borrower not otherwise prohibited by the terms hereof. None of the proceeds will be used, directly or
indirectly, for the purpose of purchasing or carrying any margin security or for the purposes of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause
any of the Revolving Loans to be considered a “purpose credit” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, as amended. 

SECTION 7. COLLATERAL REPORTING AND COVENANTS 
 7.1. Collateral Reporting. 
 (a) Borrower shall provide Lender with the
following documents in a form reasonably satisfactory to Lender: 
 (i) unless the conditions of Section 7.1(a)(ii) apply,
on the second Business Day of each month, and continuing on the second Business Day of each succeeding month, the following (collectively, a “Current Borrowing Base Report”): a Borrowing Base Certificate setting forth the calculation of
the Borrowing Base and the Adjusted Borrowing Base as of the last Business Day of the immediately preceding month, duly completed and executed by the Senior Vice President of Finance or other chief financial officer

  
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of Borrower, together with all schedules required pursuant to the terms of the Borrowing Base Certificate duly completed, including but not limited to a Borrowing Base Certificate as of the last
Business Day of the immediately preceding month duly completed and executed by the Senior Vice President of Finance or other chief financial officer of Borrower, together with all schedules required pursuant to the terms of the Borrowing Base
Certificate duly completed, including but not limited to a current aging of Credit Card Receivables identifying those outstanding more than five (5) Business Days since the sale date giving rise thereto and an explanation as to why the
designated Credit Card Receivables are past due by more than five (5) Business Days and an inventory summary report by category and identifying in the case of each of such category of inventory, the applicable store and warehouse where such
Inventory is located; 
 (ii) if Borrower’s average Excess Borrowing Availability for any week during which a Revolving
Loan is outstanding shall be less than twenty-five percent (25%) of the Maximum Credit, and for so long as the average Excess Borrowing Availability of the immediately preceding week remains less than twenty-five percent (25%) of the
Maximum Credit, on the second Business Day of each week a Current Borrowing Base Report for the immediate preceding week then-ended; 
 (iii) as soon as possible after the end of each month (but in any event within thirty (30) days after the end thereof), on a monthly basis or more frequently as Lender may reasonably request, a
perpetual inventory report by department, location and category (and including the amounts of Inventory and the value thereof at any leased locations and at premises of warehouses, processors or other third parties), a general ledger inventory
report, a detailed inventory reconciliation, and a report on all Packaway Inventory designated by seasonal sale periods; 

(iv) as soon as possible after the end of any month for which Lender makes a request to the Borrower (but in any event within thirty
(30) days following such request), (A) an accounts payable aging (including information indicating the amounts owing to owners and lessors of leased premises, warehouses, fulfillment centers, processors and other third parties from time to
time in possession of any Collateral) together with a detailed accounts payable reconciliation and a report on any unvouched, unbilled or otherwise undocumented payables, and (B) reports on sales and use tax collections, deposits and payments,
including monthly sales and use tax accruals; 
 (v) as soon as possible after the end of each month (but in any event within
ten (10) Business Days after the end thereof), in each case certified by the Senior Vice President of Finance or other chief financial officer of Borrower as true and correct: (A) addresses of all new retail store locations opened by
Borrower and existing retail store locations closed or sold, in each case since the date of the most recent certificate delivered to Lender containing the information required under this clause; and (B) a report of any new deposit account
established or used by Borrower with any bank or financial institution other than Lender since the date of the most recent certificate delivered to Lender containing the information required under this clause, including the account number, the name
and address of the financial institution at which such account is maintained, the purpose of such account and, if any, the amount held in such account on or about the date of such report; 

  
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 (vi) upon Lender’s reasonable request, (A) reports of sales for each category of
Inventory, (B) reports of aggregate Inventory purchases (including all costs related thereto, such as freight, duty and taxes) and identifying items of Inventory in transit to Borrower related to the applicable documentary letter of credit
and/or bill of lading number, (C) copies of remittance advices and reports, and copies of deposit slips and bank statements, (D) copies of shipping and delivery documents, (E) copies of purchase orders, invoices and delivery documents
for Inventory and Equipment acquired by Borrower, and (F) reports by retail store location of sales and operating profits for each such retail store location; and 
 (vii) such other reports as to the Collateral as Lender shall reasonably request from time to time. 
 (b) Nothing contained in any Borrowing Base Certificate shall be deemed to limit, impair or otherwise affect the rights of Lender contained herein and in the event of any conflict or inconsistency between
the calculation of the Borrowing Base or the Adjusted Borrowing Base as set forth in any Borrowing Base Certificate and as determined by Lender in its good faith, the determination of Lender shall govern and be conclusive and binding upon Borrower,
absent manifest error. Without limiting the foregoing, Borrower shall furnish to Lender any information which Lender may reasonably request regarding the determination and calculation of any of the amounts set forth in any Borrowing Base
Certificate. The Borrowing Base and/or the Adjusted Borrowing Base may be adjusted based on the information set forth in the reports received by Lender pursuant to Section 7.1(a) above. 

(c) If any of Borrower’s records or reports of the Collateral are prepared or maintained by an accounting service, contractor,
shipper or other agent, Borrower hereby irrevocably authorizes such service, contractor, shipper or agent to deliver such records, reports, and related documents to Lender and to follow Lender’s instructions with respect to further services at
any time that an Event of Default exists or has occurred and is continuing. 
 7.2. Accounts Covenants. 

(a) Borrower shall notify Lender promptly of the assertion of any claims, offsets, defenses or counterclaims by any account debtor,
Credit Card Issuer or Credit Card Processor or any disputes with any of such persons or any settlement, adjustment or compromise thereof, to the extent any of the foregoing exceeds $75,000 in any one case or $100,000 in the aggregate. No credit,
discount, allowance or extension or agreement for any of the foregoing shall be granted to any account debtor, Credit Card Issuer or Credit Card Processor except in the ordinary course of Borrower’s business in accordance with the current
practices of Borrower as in effect on the date hereof. So long as no Event of Default exists or has occurred and is continuing, Borrower shall settle, adjust or compromise any claim, offset, counterclaim or dispute with any account debtor, Credit
Card Issuer or Credit Card Processor. At any time that an Event of Default exists or has occurred and is continuing (but not prior to the occurrence and continuance of an Event of Default), Lender shall (i) have the exclusive right to settle,
adjust or compromise any claim, offset, counterclaim or dispute with account debtors, Credit Card Issuers or Credit Card Processors or grant any credits, discounts or allowances, and (ii) be entitled to notify any or all account debtors
(including Credit Card Issuers and Credit Card Processors), secondary obligors or other obligors in respect thereof to make payment of Receivables directly to Lender. 

  
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 (b) With respect to each Account: (i) no payments shall be made thereon except
payments made pursuant to the terms of this Agreement, (ii) there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or asserted with respect thereto except as reported to Lender in accordance with the terms
of this Agreement and (iii) none of the transactions giving rise thereto will violate in any material respect any applicable State or Federal Laws or regulations, all documentation relating thereto will be legally sufficient under such laws and
regulations and all such documentation will be legally enforceable in accordance with its terms. 
 (c) Borrower shall notify
Lender promptly of: (i) any notice of a material default by Borrower under any of the Credit Card Agreements or of any default which has a reasonable likelihood of resulting in the Credit Card Issuer or Credit Card Processor ceasing to make
payments or suspending payments to Borrower, (ii) any notice from any Credit Card Issuer or Credit Card Processor that such person is ceasing or suspending, or will cease or suspend, any present or future payments due or to become due to
Borrower from such person, or that such person is terminating or will terminate any of the Credit Card Agreements, and (iii) the failure of Borrower to comply with any material terms of the Credit Card Agreements or any terms thereof which has
a reasonable likelihood of resulting in the Credit Card Issuer or Credit Card Processor ceasing or suspending payments to Borrower. 
 (d) Lender shall have the right at any time or times, in Lender’s name or in the name of a nominee of Lender, to verify the validity, amount or any other matter relating to any Receivables or other
Collateral, by mail, telephone, facsimile transmission or otherwise. 
 7.3. General Inventory Covenants. With respect to
the Inventory: (i) Borrower shall at all times maintain inventory records reasonably satisfactory to Lender, keeping correct and accurate records itemizing and describing the kind, type, quality and quantity of Inventory, Borrower’s cost
therefor and daily withdrawals therefrom and additions thereto; (ii) Borrower shall conduct a physical count of the Inventory in form, scope and methodology acceptable to Lender (A) no more than once in any twelve (12) month period,
at Borrower’s expense, (B) at any time or times as Lender may reasonably request, at Lender’s expense, (C) at any time or times as Lender may request at any time an Event of Default exists or has occurred and is continuing, at
Borrower’s expense, or (D) at any time or times as Lender may reasonably request in the event of test count variances in excess of the shrinkage reserve established by Lender, at Borrower’s expense, in each case, the results of which
shall be reported to Lender and Borrower shall promptly deliver confirmation in a form reasonably satisfactory to Lender that appropriate adjustments have been made to the inventory records of Borrower to reconcile the inventory count to
Borrower’s inventory records; and (iii) Borrower shall not remove any Inventory from the locations set forth or permitted herein, without the prior written consent of Lender, except for sales of Inventory in the ordinary course of
Borrower’s business and except to move Inventory directly from one location set forth or permitted herein to another such location and except for Inventory shipped from the manufacturer thereof to Borrower which is in transit to the locations
set forth or permitted herein. 

  
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 7.4. Periodic Appraisals. Borrower shall cooperate with Lender in periodic appraisals
conducted with respect to Inventory as follows: (a) at Lender’s option, two (2) times per year at Borrower’s sole cost and expense during any calendar year in which Borrower has at any time had Excess Borrowing Availability less
than 50% of the Maximum Credit; (b) otherwise, one (1) time per calendar year at Borrower’s sole cost and expense; (c) at any time at Borrower’s sole cost and expense following the occurrence of an Event of Default; and
(d) if no Event of Default has occurred, one occasion in addition to those occasions referenced in (a) an (b) above at Lender’s sole cost and expense. Prior notice hereunder need not be given by the Lender to the Borrowers if an
Event of Default shall have occurred under this Agreement. 
 7.5. Power of Attorney. Borrower hereby irrevocably
designates and appoints Lender as Borrower’s true and lawful attorney-in-fact, and authorizes Lender, in such Borrower’s, or Lender’s name, to: (a) at any time an Event of Default exists or has occurred and is continuing
(i) demand payment on Receivables or other Collateral, (ii) enforce payment of Receivables by legal proceedings or otherwise, (iii) exercise all of Borrower’s rights and remedies to collect any Receivables or other Collateral,
(iv) sell or assign any Receivables upon such terms, for such amount and at such time or times as the Lender deems advisable, (v) settle, adjust, compromise, extend or renew an Account, (vi) discharge and release any Receivable,
(vii) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or other similar document against an account debtor or other obligor in respect of any Receivables or other Collateral, (viii) notify the post office
authorities to change the address for delivery of remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral to an address designated by Lender, and open and dispose of all mail addressed to Borrower
and handle and store all mail relating to the Collateral, (ix) do all acts and things which are necessary, in Lender’s determination, to fulfill Borrower’s obligations under this Agreement and the other Financing Agreements,
(x) take control in any manner of any item of payment in respect of Receivables or constituting Collateral or otherwise received in or for deposit in the Payment Account or otherwise received by Lender, (xi) have access to any lockbox or
postal box into which remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral are sent or received; (xii) endorse Borrower’s name upon any items of payment in respect of Receivables or
constituting Collateral or otherwise received by Lender and deposit the same in Lender’s account for application to the Obligations, (xiii) endorse Borrower’s name upon any chattel paper, document, instrument, invoice, or similar
document or agreement relating to any Receivables or any goods pertaining thereto or any other Collateral, including any warehouse or other receipts, or bills of lading and other negotiable or non-negotiable documents, (xiv) clear Inventory,
the purchase of which was financed with a Letter of Credit, through U.S. Customs or foreign export control authorities in Borrower’s name, Lender’s name or the name of Lender’s designee, and to sign and deliver to customs officials
powers of attorney in Borrower’s name for such purpose, and to complete in Borrower’s or Lender’s name, any order, sale or transaction, obtain the necessary documents in connection therewith and collect the proceeds thereof, and
(xv) sign the Borrower’s name on any verification of Receivables and notices thereof to account debtors or any secondary obligors or other obligors in respect thereof. Borrower hereby releases Lender and its respective officers, employees
and designees from any liabilities arising from any act or acts under this power of attorney and in furtherance thereof, whether of omission or commission, except as a result of Lender’s own gross negligence or willful misconduct as determined
pursuant to a final non-appealable order of a court of competent jurisdiction. 

  
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 7.6. Right to Cure. Lender may, at its option, upon notice to Borrower, (a) cure
any default by Borrower under any material agreement with a third party that materially affects the Collateral, its value or the ability of Lender to collect, sell or otherwise dispose of the Collateral or the rights and remedies of Lender therein
or the ability of the Borrower to perform its obligations hereunder or under any of the other Financing Agreements, (b) pay or bond on appeal any judgment entered against Borrower, (c) discharge taxes, liens, security interests or other
encumbrances at any time levied on or existing with respect to the Collateral and (d) pay any amount, incur any expense or perform any act which, in Lender’s judgment, is necessary or appropriate to preserve, protect, insure or maintain
the Collateral and the rights of Lender with respect thereto. Lender may add any amounts so expended to the Obligations and charge any Borrower’s account therefor, such amounts to be repayable by Borrower on demand. Lender shall be under no
obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to have assumed any obligation or liability of any Borrower. Any payment made or other action taken by Lender under this Section shall be without prejudice to
any right to assert an Event of Default hereunder and to proceed accordingly. 
 7.7. Access to Premises; Periodic Field
Audits. From time to time as reasonably requested by Lender, at the cost and expense of Borrower, (a) Lender or its designee shall have complete access to all of Borrower’s premises during normal business hours and after reasonable
notice to Borrower, or at any time and without notice to Borrower if an Event of Default exists or has occurred and is continuing, for the purposes of inspecting, verifying and auditing the Collateral and all of Borrower’s books and records,
including the Records, and (b) Borrower shall promptly furnish to Lender such copies of such books and records or extracts therefrom as Lender may request, and Lender may use during normal business hours such of Borrower’s personnel,
equipment, supplies and premises as may be reasonably necessary for the foregoing, and if an Event of Default exists or has occurred and is continuing, for the collection of Receivables and realization of other Collateral. In particular, and without
limiting the foregoing, Borrower shall permit, during normal business hours, and upon prior notice, representatives of the Lender or Lender’s outside audit department to make such periodic inspections of books, records and assets of the
Borrower as such representatives deem necessary and proper which at a minimum shall include field audits conducted by the Lender or Lender’s representatives: (a) two (2) times per calendar year at Borrower’s sole cost and expense
during any calendar year in which Borrower has, for any period of one month during such calendar year if at least one Revolving Loan is outstanding during such month, average Excess Borrowing Availability less than 50% of the Maximum Credit;
(b) otherwise, one (1) time per calendar year at Borrower’s sole cost and expense during any calendar year; (c) at any time at Borrower’s sole cost and expense following the occurrence of an Event of Default; and (d) if
no Event of Default has occurred, one occasion in addition to those occasions referenced in (a) an (b) above at Lender’s sole cost and expense. Prior notice hereunder need not be given by the Lender to Borrower if an Event of Default
shall have occurred under this Agreement. 

  
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 SECTION 8. REPRESENTATIONS AND WARRANTIES 

Borrower hereby represents and warrants to Lender the following (which shall survive the execution and delivery of this Agreement):

 8.1. Corporate Existence, Power and Authority. Borrower is a corporation duly organized and in good standing under the
laws of its jurisdiction of organization and is duly qualified as a foreign corporation and in good standing in all states or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such
qualification necessary, except for those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect on Borrower’s financial condition, results of operation or business or the rights of Lender in or to any of the
Collateral. The execution, delivery and performance of this Agreement, the other Financing Agreements and the transactions contemplated hereunder and thereunder (a) are all within Borrower’s corporate powers, (b) have been duly
authorized, (c) are not in contravention of law or the terms of any Borrower’s certificate of incorporation, bylaws, or other organizational documentation, or any indenture, material agreement or material undertaking to which Borrower is a
party or by which Borrower or its property are bound and (d) will not result in the creation or imposition of, or require or give rise to any obligation to grant, any lien, security interest, charge or other encumbrance upon any property of
Borrower, other than in favor of Lender. This Agreement and the other Financing Agreements to which Borrower is a party constitute legal, valid and binding obligations of Borrower enforceable in accordance with their respective terms, except to the
extent that the availability of equitable remedies may be subject to judicial discretion, and to the extent that enforcement of certain rights and remedies may be limited by the provisions of the Bankruptcy Code or other laws affecting the rights of
creditors generally. 
 8.2. Name; State of Organization; Chief Executive Office; Collateral Locations. 

(a) The exact legal name of Borrower is as set forth on the signature page of this Agreement and in the Information Certificate.
Borrower has not, during the five years prior to the date of this Agreement, been known by or used any other corporate or fictitious name or been a party to any merger or consolidation, or acquired all or substantially all of the assets of any
Person, or acquired any of its property or assets out of the ordinary course of business, except as set forth in the Information Certificate. 
 (b) Borrower is an organization of the type and organized in the jurisdiction set forth in the Information Certificate. The Information Certificate accurately sets forth the organizational identification
number of Borrower. 
 (c) The chief executive office and mailing address of Borrower concerning Accounts is 1818 Market
Street, Suite 1900, Philadelphia, Pennsylvania 19103. 
 (d) The locations of all assets of Borrower are as stated in the
Information Certificate. 
 8.3. Financial Statements; No Material Adverse Change. All financial statements relating to
Borrower which have been or may hereafter be delivered by Borrower to Lender have been prepared in accordance with GAAP (except as to any interim financial statements, to the extent such statements are subject to normal year-end adjustments and do
not include any notes) and fairly present in all material respects the financial condition and the results of operation of Borrower as at the dates and for the periods set forth therein. Except as

  
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disclosed in any interim financial statements furnished by Borrower to Lender prior to the date of this Agreement, there has been no act, condition or event which has had or is reasonably likely
to have a Material Adverse Effect since the date of the most recent audited financial statements of Borrower furnished by Borrower to Lender prior to the date of this Agreement. The budgeted projections that have been delivered to Lender or any
projections hereafter delivered to Lender have been prepared in light of the past operations of the business of Borrower and are based upon estimates and assumptions stated therein, all of which Borrower has determined to be reasonable and fair in
light of the then current conditions and current facts and reflect the good faith and reasonable estimates of Borrower of the future financial performance of Borrower and of the other information projected therein for the periods set forth therein.

 8.4. Priority of Liens; Title to Properties. The security interests and liens granted to Lender under this Agreement
and the other Financing Agreements constitute valid and perfected first priority liens and security interests in and upon the Collateral subject only to the existing liens indicated on the Information Certificate, liens securing the Term Loan, and
other Permitted Liens. Borrower has good and marketable title to all of its other properties and assets subject to no liens, mortgages, pledges, security interests, encumbrances or charges of any kind, except those granted to Lender and such others
as are specifically listed on the Information Certificate or permitted under Section 9.8 hereof. 
 8.5. Tax
Returns. Borrower has filed, or caused to be filed, in a timely manner all tax returns, reports and declarations which are required to be filed by it. All information in such tax returns, reports and declarations is complete and accurate in all
material respects. Borrower has paid or caused to be paid all taxes due and payable or claimed due and payable in any assessment received by it, except taxes the validity of which are being contested in good faith by appropriate proceedings
diligently pursued and available to Borrower and with respect to which adequate reserves have been set aside on its books to the extent required by GAAP. Adequate provision has been made for the payment of all accrued and unpaid Federal, State,
county, local, foreign and other taxes whether or not yet due and payable and whether or not disputed. 
 8.6.
Litigation. Except as set forth on the Information Certificate, (a) there is no investigation by any Governmental Authority pending, or to the best of Borrower’s knowledge threatened, against or affecting Borrower, its assets or
business and (b) there is no action, suit, proceeding or claim by any Person pending, or to the best of Borrower’s knowledge threatened, against Borrower or its assets or goodwill, or against or affecting any transactions contemplated by
this Agreement, in each case, which if adversely determined against Borrower has or could reasonably be expected to have a Material Adverse Effect. 
 8.7. Compliance with Other Agreements and Applicable Laws. 
 (a) Borrower
is not in default in any respect under, or in violation in any respect of the terms of, any material agreement, contract, instrument, lease or other commitment to which it is a party or by which it or any of its assets are bound, in each case where
such default has or could reasonably be expected to have a Material Adverse Effect. Borrower is in compliance in all material respects with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority relating
to its businesses, including, 

  
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without limitation, those set forth in or promulgated pursuant to the Occupational Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of 1938, as amended, and all
Environmental Laws. 
 (b) Borrower has obtained all material permits, licenses, approvals, consents, certificates, orders or
authorizations of any Governmental Authority required for the lawful conduct of its business (the “Permits”). All of the Permits are valid and subsisting and in full force and effect. There are no actions, claims or proceedings pending or,
to the best of Borrower’s knowledge, threatened that seek the revocation, cancellation, suspension or modification of any of the Permits. 
 8.8. Environmental Compliance. 
 (a) Except as set forth on the
Information Certificate, Borrower has not generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time
violates in any material respect any applicable Environmental Law or Permit, and the operations of Borrower comply in all material respects with all Environmental Laws and all Permits. 

(b) Except as set forth on the Information Certificate, there has been no investigation by any Governmental Authority or any proceeding,
complaint, order, directive, claim, citation or notice by any Governmental Authority or any other person (nor is any pending or to the best of Borrower’s knowledge threatened), with respect to any non-compliance with or violation of the
requirements of any Environmental Law by Borrower or the release, spill or discharge, threatened or actual, of any Hazardous Material or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any
Hazardous Materials or any other environmental, health or safety matter, which adversely affects in any material respect or could reasonably be expected to adversely affect in any material respect Borrower or its business, operations or assets or
any properties at which Borrower has transported, stored or disposed of any Hazardous Materials. 
 (c) Except as set forth on
the Information Certificate, Borrower has no material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation,
manufacture, handling, production or disposal of any Hazardous Materials. 
 (d) Borrower has all Permits required to be
obtained or filed in connection with the operations of Borrower under any Environmental Law and all of such licenses, certificates, approvals or similar authorizations and other Permits are valid and in full force and effect. 

8.9. Credit Card Agreements. Set forth on the Information Certificate is a correct and complete list of all of the Credit Card
Agreements and all other agreements, documents and instruments existing as of the date hereof between or among Borrower, its Affiliates, the Credit Card Issuers, the Credit Card Processors and any of their Affiliates. The Credit Card Agreements
constitute all of such agreements necessary for Borrower to operate its 

  
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business as presently conducted with respect to credit cards and debit cards and no Receivables of Borrower arise from purchases by customers of Inventory with credit cards or debit cards, other
than those which are issued by Credit Card Issuers with whom Borrower has entered into one of the Credit Card Agreements set forth on Schedule 1.26 hereto or with whom Borrower has entered into a Credit Card Agreement in accordance with
Section 9.15 hereof. Each of the Credit Card Agreements constitutes the legal, valid and binding obligations of the Borrower and to the best of the Borrower’s knowledge, is enforceable in accordance with their respective terms and is in
full force and effect. No material default or material event of default, or act, condition or event which after notice or passage of time or both, would constitute a material default or a material event of default under any of the Credit Card
Agreements (other than any Credit Card Agreement with a Credit Card Issuer or Credit Card Processor where the sales using the applicable card are less than seven (7%) percent of all such sales in the immediately preceding fiscal year) exists or
has occurred that would entitle the other party thereto to suspend, withhold or reduce amounts that would otherwise be payable to Borrower. Borrower, and to the best of Borrower’s knowledge, the other parties thereto, have complied in all
material respects with all of the terms and conditions of the Credit Card Agreements (other than any Credit Card Agreement with a Credit Card Issuer or Credit Card Processor where the sales using the applicable card are less than seven
(7%) percent of all such sales in the immediately preceding fiscal year) to the extent necessary for Borrower to be entitled to receive all payments thereunder. Borrower has delivered, or caused to be delivered to Lender, true, correct and
complete copies of all of the Credit Card Agreements. Each of the Credit Card Issuers and Credit Card Processors which are a party to a Credit Card Agreement with Borrower will be subject to a Credit Card Acknowledgment acceptable to Lender in
accordance with the terms hereof. 
 8.10. Employee Benefits. 

(a) Each Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal law.
Each Pension Plan which is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service and to the best of Borrower’s knowledge, nothing has occurred which would cause
the loss of such qualification. Borrower has made all required contributions to any Pension Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412
of the Code has been made with respect to any Pension Plan. 
 (b) There are no pending, or to the best of Borrower’s
knowledge, threatened claims (other than claims for benefits in the ordinary course of the operation of such plan), lawsuits, or action by any Governmental Authority, with respect to any Pension Plan. 

(c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) based on the latest valuation of each Pension Plan and
on the actuarial methods and assumptions employed for such valuation (determined in accordance with the assumptions used for funding such Pension Plan pursuant to Section 412 of the Code), the aggregate current value of accumulated benefit
liabilities of such Pension Plan under Section 4001(a)(16) of ERISA does not exceed the aggregate current value of the assets of such Pension Plan; (iii) Borrower has not incurred and does not reasonably expect to incur, any liability
under Title IV of ERISA with 

  
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respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) Borrower has not incurred and does not reasonably expect to incur, any
liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) Borrower and its
ERISA Affiliates have not engaged in a transaction that would be subject to Section 4069 or 4212(c) of ERISA. 
 8.11.
Bank Accounts. All of the deposit accounts, investment accounts or other accounts in the name of or used by Borrower maintained at any bank or other financial institution are set forth on the Information Certificate. 

8.12. Intellectual Property. Excluding commercially available off-the-shelf software, all of the Intellectual Property material to
the business of the Borrower which Borrower owns or licenses is set forth on the Information Certificate. Borrower owns or licenses or otherwise has the right to use all Intellectual Property necessary for the operation of its business as presently
conducted or proposed to be conducted. 
 8.13. Subsidiaries; Affiliates; Capitalization; Solvency. 

(a) Borrower does not have any direct or indirect Subsidiaries or Affiliates and is not engaged in any joint venture or partnership, in
each case other than as set forth in the Information Certificate. 
 (b) The issued and outstanding shares of Capital Stock of
Borrower on the date hereof are directly and beneficially owned and held by the persons indicated in the Information Certificate, and in each case all of such shares have been duly authorized and are fully paid and non-assessable, free and clear of
all claims, liens, pledges and encumbrances of any kind, except as disclosed in writing to Lender prior to the date hereof. 

(c) After giving effect to the consummation of the transactions contemplated by this Agreement and the other Financing Agreements,
Borrower is Solvent and will continue to be Solvent after the creation of the Obligations, the security interests of Lender and the other transaction contemplated hereunder. 
 8.14. Labor Disputes. 
 (a) Set forth on the Information Certificate is a
list (including dates of termination) of all collective bargaining or similar agreements between or applicable to Borrower and any union, labor organization or other bargaining agent in respect of the employees of Borrower on the date hereof.

 (b) There is (i) no significant unfair labor practice complaint pending against Borrower or, to the best of
Borrower’s knowledge, threatened against it, before the National Labor Relations Board, and no significant grievance or significant arbitration proceeding arising out of or under any collective bargaining agreement pending on the date hereof
against Borrower, and (ii) no significant strike, labor dispute, slowdown or stoppage pending against Borrower or, to the best of Borrower’s knowledge, threatened against Borrower. 

  
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 8.15. Material Contracts. Other than the Credit Card Agreements which are listed on
Schedule 1.30 hereto, the Information Certificate sets forth all Material Contracts to which Borrower is a party or is bound as of the date hereof. Borrower has delivered true, correct and complete copies of such Material Contracts to Lender on or
before the date hereof. Borrower is not in breach or in default in any material respect of or under any Material Contract and has not received any notice of the intention of any other party thereto to terminate any Material Contract. 

8.16. Payable Practices. Borrower has not made any material change in the historical accounts payable practices from those in
effect immediately prior to the date hereof. 
 8.17. Accuracy and Completeness of Information. All information furnished
by or on behalf of Borrower in writing to Lender in connection with this Agreement or any of the other Financing Agreements or any transaction contemplated hereby or thereby, including all information on the Information Certificate is true and
correct in all material respects on the date as of which such information is dated or certified and does not omit any material fact necessary in order to make such information not misleading. No event or circumstance has occurred which has had or
could reasonably be expected to have a Material Adverse Effect, which has not been fully and accurately disclosed to Lender in writing prior to the date hereof. 
 8.18. Survival of Warranties; Cumulative. All representations and warranties contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this
Agreement and shall be true and correct in all material respects on and as of the date of each additional borrowing or other credit accommodation hereunder with the same effect as though made on and as of such date (except to the extent such
representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects on and as of such earlier date) and shall be conclusively presumed to have been
relied on by Lender regardless of any investigation made or information possessed by Lender. The representations and warranties set forth herein shall be cumulative and in addition to any other representations or warranties which Borrower shall now
or hereafter give, or cause to be given, to Lender. 
 SECTION 9. AFFIRMATIVE AND NEGATIVE COVENANTS 

9.1. Maintenance of Existence. 
 (a) Borrower shall at all times preserve, renew and keep in full force and effect (i) its corporate existence and rights and franchises with respect thereto; and (ii) maintain in full force and
effect all licenses, trademarks, tradenames, approvals, authorizations, leases, contracts and Permits necessary to carry on the business as presently or proposed to be conducted, except where failure to do so would not reasonably be expected to have
a Material Adverse Effect. 
 (b) Borrower shall not change its name without the prior written consent of Lender. 

  
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 (c) Without the prior written consent of Lender, Borrower shall not change its chief
executive office, mailing address, organizational identification number, type of organization, jurisdiction of organization or other legal structure. 
 9.2. New Collateral Locations. Borrower may open new locations, whether retail store locations or otherwise, provided that the following conditions are satisfied, as determined by Lender in its
sole discretion: (a) such location is within the United States of America, Canada or Puerto Rico; and (b) Borrower has executed and delivered, or caused to be executed and delivered, to Lender such agreements, documents, and instruments as
Lender may deem reasonably necessary or desirable to protect its interests in the Collateral at such location, including, without limitation, at request of Lender, Borrower shall have used commercially reasonable efforts to obtain a Collateral
Access Agreement in respect of such location. 
 9.3. Compliance with Laws, Regulations, Etc. 

(a) Borrower shall at all times comply in all material respects with all laws, rules, regulations, licenses, approvals, orders and other
Permits applicable to it and duly observe in all material respects all requirements of any foreign, Federal, State or local Governmental Authority. 
 (b) Borrower shall give written notice to Lender immediately upon Borrower’s receipt of any notice of, or Borrower’s otherwise obtaining knowledge of, (i) the occurrence of any event
involving the release, spill or discharge, threatened or actual, of any Hazardous Material or (ii) any investigation, proceeding, complaint, order, directive, claims, citation or notice with respect to: 1) any material non-compliance with or
violation of any Environmental Law by Borrower or 2) the release, spill or discharge, threatened or actual, of any Hazardous Material other than in the ordinary course of business and other than as permitted under any applicable Environmental Law.
Copies of all environmental surveys, audits, assessments, feasibility studies and results of remedial investigations shall be promptly furnished, or caused to be furnished, by Borrower to Lender. Borrower shall take prompt action to respond to any
material non-compliance with any of the Environmental Laws and shall regularly report to Lender on such response. 
 (c)
Without limiting the generality of the foregoing, whenever Lender reasonably determines that there is non-compliance, or any condition which requires any action by or on behalf of Borrower in order to avoid any non-compliance with any Environmental
Law, Borrower shall, at Lender’s reasonable request and Borrower’s expense: (i) cause an independent environmental engineer reasonably acceptable to Lender to conduct such tests of the site where non-compliance or alleged
non-compliance with such Environmental Laws has occurred as to such non-compliance and prepare and deliver to Lender a report as to such non-compliance setting forth the results of such tests, a proposed plan for responding to any environmental
problems described therein, and an estimate of the costs thereof and (ii) provide to Lender a supplemental report of such engineer whenever the scope of such non-compliance, or Borrower’s response thereto or the estimated costs thereof,
shall change in any material respect. 
 (d) Borrower shall indemnify and hold harmless Lender and its respective directors,
officers, employees, agents, invitees, representatives, successors and 

  
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assigns, from and against any and all losses, claims, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees and expenses) directly or indirectly arising out of or
attributable to the Borrower’s use, generation, manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or presence of a Hazardous Material, including the costs of any required or necessary repair, cleanup or
other remedial work with respect to any property of Borrower and the preparation and implementation of any closure, remedial or other required plans. All representations, warranties, covenants and indemnifications in this Section 9.3 shall
survive the payment of the Obligations and the termination of this Agreement. 
 9.4. Payment of Taxes and Claims.
Borrower shall duly pay and discharge all taxes, assessments, contributions and governmental charges upon or against it or its properties or assets, except for taxes the validity of which are being contested in good faith by appropriate proceedings
diligently pursued and available to Borrower and with respect to which adequate reserves have been set aside on its books to the extent required by GAAP. 
 9.5. Insurance. Borrower shall at all times maintain with financially sound and reputable insurers insurance with respect to the Collateral against loss or damage and all other insurance of the
kinds and in the amounts customarily insured against or carried by corporations of established reputation engaged in the same or similar businesses and similarly situated. Said policies of insurance shall be reasonably satisfactory to Lender as to
form, amount and insurer. Borrower shall furnish certificates, policies or endorsements to Lender, and Lender shall reasonably require as proof of such insurance, and, if Borrower fails to do so, Lender is authorized, but not required, to obtain
such insurance at the expense of Borrower. All policies shall provide for at least thirty (30) days prior written notice to Lender of any cancellation or reduction of coverage and that Lender may act as attorney for Borrower in obtaining, and
at any time an Event of Default exists or has occurred and is continuing, adjusting, settling, amending and canceling such insurance (but in any case subject to the terms of the Intercreditor Agreement). Borrower shall cause Lender to be named as a
loss payee and an additional insured (but without any liability for any premiums) under such insurance policies and Borrower shall obtain non-contributory lender’s loss payable endorsements to all insurance policies in form and substance
reasonably satisfactory to Lender. Lender’s loss payable endorsements shall specify that the proceeds of such insurance shall be payable to Lender as its interests may appear and further specify that Lender shall be paid regardless of any act
or omission by Borrower. Without limiting any other rights of Lender, but subject to the terms of the Intercreditor Agreement and Section 2.3 hereof, any insurance proceeds received by Lender at any time may be applied to payment of the
Obligations, whether or not then due, in any order and in such manner as Lender may determine. Upon application of such proceeds to the Revolving Loans, Revolving Loans may be available subject and pursuant to the terms hereof to be used for the
costs of repair or replacement of the Collateral lost or damages resulting in the payment of such insurance proceeds. 
 9.6.
Financial Statements and Other Notices. 
 (a) Borrower shall keep proper books and records in which true and complete
entries shall be made of all dealings or transactions of or in relation to the Collateral and the business of Borrower in accordance with GAAP. Borrower shall promptly furnish to Lender all such financial and other information as Lender shall
reasonably request relating to the 

  
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Collateral and the assets, business and operations of Borrower, and Borrower shall notify the auditors and accountants of Borrower that Lender is authorized to obtain such information directly
from them. Without limiting the foregoing, Borrower shall furnish or cause to be furnished to Lender, the following: 
 (i)
within forty-five (45) days after the end of each fiscal quarter, quarterly unaudited financial statements (including balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), all in
reasonable detail, fairly presenting in all material respects the financial position and the results of the operations of Borrower as of the end of and through such fiscal period, certified to be correct by the Senior Vice President of Finance or
other chief financial officer of Borrower, subject to normal year-end adjustments and accompanied by a Compliance Certificate substantially in the form of Exhibit “C” hereto; 

(ii) within 105 days after the end of each fiscal year (and 90 days after the end of each fiscal year following a Qualifying IPO),
audited financial statements of Borrower (including balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), and the accompanying notes thereto, all in reasonable detail, fairly presenting
in all material respects the financial position and the results of the operations of Borrower as of the end of and for such fiscal year, together with the unqualified opinion of independent certified public accountants with respect to the audited
financial statements, which accountants shall be an independent accounting firm selected by Borrower and acceptable to Lender, that such audited financial statements have been prepared in accordance with GAAP, and present fairly in all material
respects the results of operations and financial condition of Lender as of the end of and for the fiscal year then ended; and 

(iii) at such time as available, but in no event later than forty-five (45) days after the end of the prior fiscal year, budgeted
financial statements (including forecasted balance sheets and statements of income and loss, and statements of cash flow and statements of shareholders’ equity of Borrower for the next fiscal year, all in reasonable detail, and in a format
consistent with the budgeted financial statements delivered by Borrower to Lender prior to the date hereof, together with such supporting information as Lender may reasonably request. Such budgeted financial statements shall be prepared on a monthly
basis for the next succeeding year and on an annual basis for the following year. Such budgeted financial statements shall represent the reasonable best estimate by Borrower of the future financial performance of Borrower for the periods set forth
therein and shall have been prepared on the basis of the assumptions set forth therein which Borrower believes are fair and reasonable as of the date of preparation in light of current and reasonably foreseeable business conditions (it being
understood that actual results may differ from those set forth in such budgeted financial statements). 
 (b) Borrower shall
promptly notify Lender in writing of the details of (i) any loss, damage, investigation, action, suit, proceeding or claim relating to Collateral having a value of more than $750,000 or which if adversely determined would result in any material
adverse change in Borrower’s business, properties, assets, goodwill or condition, financial or otherwise, (ii) any Material Contract being terminated or amended or any new Material Contract entered into (in which event Borrower shall
provide Lender with a copy of such Material 

  
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Contract), (iii) any order, judgment or decree in excess of $750,000 shall have been entered against Borrower any of its properties or assets, (iv) any notification of a material
violation of laws or regulations received by Borrower, (v) any ERISA Event, and (vi) the occurrence of any Default or Event of Default. 
 (c) Borrower shall furnish or cause to be furnished to Lender such budgets, forecasts, projections and other information respecting the Collateral and the business of Borrower, as Lender may, from time to
time, reasonably request. Lender is hereby authorized to deliver a copy of any financial statement or any other information relating to the business of Borrower to any court or other Governmental Authority, prospective assignee of Lender or any
Affiliate of Lender (in each case as to such prospective assignee or Affiliate if Lender, subject to a confidentiality agreement). Borrower hereby irrevocably authorizes and directs all accountants or auditors to deliver to Lender, at
Borrower’s expense, copies of the financial statements of Borrower and any reports or management letters prepared by such accountants or auditors on behalf of Borrower and to disclose to Lender such information as they may have regarding the
business of Borrower. Any documents, schedules, invoices or other papers delivered to Lender may be destroyed or otherwise disposed of by Lender one (1) year after the same are delivered to Lender, except as otherwise designated by Borrower to
Lender in writing. 
 9.7. Sale of Assets, Consolidation, Merger, Dissolution, Etc. Borrower shall not directly or
indirectly: 
 (a) merge into or consolidate with any other Person or permit any other Person to merge into or with or
consolidate with it; 
 (b) sell, issue, assign, lease, license, transfer, abandon or otherwise dispose of any Capital Stock or
Indebtedness to any other Person or any of its assets to any other Person, except for: 
 (i) sales of Inventory in the
ordinary course of business and sale of cash and Cash Equivalent in the ordinary course of business, 
 (ii) the sale or other
Disposition of Equipment (including worn-out or obsolete Equipment or Equipment no longer used or useful in the business of Borrower) so long as such sales or other Dispositions do not involve Equipment having an aggregate fair market value in
excess of $250,000 for all such Equipment disposed of in any fiscal year of Borrower or as Lender may otherwise agree, 
 (iii)
the issuance and sale by Borrower of Capital Stock of Borrower after the date hereof; provided, that, (A) Lender shall have received not less than ten (10) Business Days’ prior written notice of such issuance and sale by Borrower,
which notice shall specify the parties to whom such shares are to be sold, the terms of such sale, the total amount which it is anticipated will be realized from the issuance and sale of such stock and the net cash proceeds which it is anticipated
will be received by Borrower from such sale, (B) the terms of such Capital Stock, and the terms and conditions of the purchase and sale thereof, shall not include any terms that include any limitation on the right of Borrower to request or
receive Revolving Loans or Letters of Credit or the right of Borrower to amend or modify any of the 

  
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terms and conditions of this Agreement or any of the other Financing Agreements or otherwise in any way relate to or affect the arrangements of Borrower with Lender or are more restrictive or
burdensome to Borrower than the terms of any Capital Stock in effect on the date hereof, and (C) after giving effect thereto, no Default or Event of Default shall exist or have occurred, 

(iv) the issuance of Capital Stock of Borrower consisting of common stock pursuant to a stock option or stock grant or similar equity
plan or 401(k) plans of Borrower and/or its Affiliates for the benefit of their respective employees, directors, officers and consultants, provided, that, in no event shall Borrower be required to issue, or shall Borrower issue, Capital Stock
pursuant to such stock plans or 401(k) plans which would result in a Change of Control or other Event of Default, 
 (v) sales
or other Dispositions by Borrower of assets in connection with the closing or sale of a retail store location of Borrower in the ordinary course of Borrower’s business which consist of leasehold interests in the premises of such store, the
Equipment and fixtures located at such premises and the books and records relating exclusively and directly to the operations of such store; provided, that, as to each and all such sales and closings, (A) on the date of, and after giving
effect to, any such closing or sale, the aggregate number of retail store locations closed or sold by Borrower in any fiscal year minus the number of retail stores opened by Borrower in such fiscal year, shall not exceed the amount equal to ten
percent (10%) of the number of retail store locations of Borrower as of the end of the immediately preceding fiscal year, (B) Lender shall have received not less than ten (10) Business Days prior written notice of such sale or
closing, which notice shall set forth in reasonable detail satisfactory to Lender, the parties to such sale or other disposition, the assets to be sold or otherwise disposed of, the purchase price and the manner of payment thereof and such other
information with respect thereto as Lender may request, (C) after giving effect thereto, no Event of Default shall exist or have occurred and be continuing, (D) such sale shall be on commercially reasonable prices and terms in a bona fide
arm’s length transaction, and (E) any and all proceeds payable or delivered to Borrower in respect of such sale or other disposition shall be paid or delivered, or caused to be paid or delivered, to Lender in accordance with the terms of
this Agreement (except to the extent such proceeds reflect payment in respect of Indebtedness secured by a properly perfected first priority security interest in the assets sold, in which case, such proceeds shall be applied to such indebtedness
secured thereby), 
 (vi) the sale and issuance by the Borrower of its Capital Stock in a Qualifying IPO; 

(vii) the abandonment, sale or other disposition of Intellectual Property that is, in the reasonable good faith judgment of the
Borrower, no longer economically practicable to maintain or useful in the conduct of the business of the Borrower; 
 (viii)
other sales or disposition; provided that (i) the aggregate consideration received in respect of all such sales and other dispositions pursuant to this clause (viii) shall not exceed $1,000,000 in any period of twelve
(12) consecutive months, (ii) such sales or other dispositions are made for fair market value and on an arm’s-length commercial basis, and (iii) at least 75% of the consideration payable in respect of such sales or other
dispositions is in the form of cash or Cash Equivalents; 

  
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 (ix) leases, subleases, licenses or sublicenses of real or personal property in the
ordinary course of business so long as no such lease, sublease, license or sublicense adversely affects the Lender’s security interest in the asset or property subject thereto in any material respect; 

(x) any Investments made in compliance with Section 9.10; 

(xi) any Restricted Payments made in compliance with Section 9.11; 

(xii) subject to Section 2.3(b), any Disposition that constitutes a Casualty Event; 

(xiii) any sale or other Disposition of accounts receivable arising in the ordinary course of business in connection with the collection
or compromise thereof and not as part of any financing transaction; and 
 (xiv) any Disposition of the Distribution Center or
any constituent parts thereof in the context of a Sale and Leaseback Transaction permitted hereunder; 
 (c) wind up, liquidate
or dissolve; or 
 (d) as to Sections 9.7(a) and 9.7(c), agree to do any of the foregoing. 

9.8. Encumbrances. Borrower shall not create, incur, assume or suffer to exist any security interest, mortgage, pledge, lien,
charge or other encumbrance of any nature whatsoever on any of its assets or properties, including the Collateral, or file or permit the filing of, or permit to remain in effect, any financing statement or other similar notice of any security
interest or lien with respect to any such assets or properties, except for (collectively, “Permitted Liens”): 
 (a)
the security interests and liens of Lender and any Bank Product Provider and the rights of setoff of Lender and any Bank Product Provider provided for herein or under applicable law; 

(b) liens securing the payment of taxes, assessments or other governmental charges or levies either not yet overdue or the validity of
which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower as case may be and with respect to which adequate reserves have been set aside on its books to the extent required by GAAP; 

(c) non-consensual statutory liens (other than liens securing the payment of taxes, including but not limited to carriers’,
warehousemen’s, landlords’, workmen’s, suppliers’, repairmen’s and mechanics’ liens and other similar liens) arising in the ordinary course of Borrower’s business to the extent: (i) such liens secure
obligations which are not overdue or are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower in each case prior to the commencement of foreclosure or other similar proceedings and with respect to
which adequate reserves have been set aside on its books to the 

  
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extent required by GAAP or (ii) such liens secure obligations relating to claims or liabilities which are fully insured and being defended at the sole cost and expense and at the sole risk
of the insurer or are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower in each case prior to the commencement of foreclosure or other similar proceedings and with respect to which adequate
reserves have been set aside on its books to the extent required by GAAP; 
 (d) zoning restrictions, easements, licenses,
covenants and other restrictions affecting the use of Real Property which do not interfere in any material respect with the use of such Real Property or ordinary conduct of the business of Borrower as presently conducted thereon or materially impair
the value of the Real Property which may be subject thereto; 
 (e) (i) purchase money security interests in Equipment
(including Capital Leases) to secure Indebtedness permitted under Section 9.9(b) hereof and (ii) purchase money security interests (including Capital Leases) in the Distribution Center (or any of its constituent parts), as applicable, to
secure Indebtedness permitted under Section 9.9(b) hereof, in each case so long as such security interests are limited to the Equipment or the Distribution Center (or any of its constituent parts), as applicable, acquired with such
Indebtedness, and the Indebtedness secured thereby does not exceed the cost of the Equipment in the Distribution Center (or any of its constituent parts), as applicable, so acquired; 

(f) pledges and deposits of cash by Borrower after the date hereof in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security benefits consistent with the current practices of Borrower as of the date hereof; 
 (g) liens arising from (i) operating leases and the precautionary UCC financing statement filings in respect thereof and (ii) equipment or other materials which are not owned by Borrower located
on the premises of Borrower (but not in connection with, or as part of, the financing thereof) from time to time in the ordinary course of business and consistent with current practices of Borrower and the precautionary UCC financing statement
filings in respect thereof; 
 (h) liens or rights of setoff against credit balances of Borrower with Credit Card Issuers or
Credit Card Processors or amounts owing by such Credit Card Issuers or Credit Card Processors to Borrower in the ordinary course of business, but not liens on or rights of setoff against any other property or assets of Borrower, pursuant to the
Credit Card Agreements (as in effect on the date hereof) to secure the obligations of Borrower to the Credit Card Issuers or Credit Card Processors as a result of fees and chargebacks; 

(i) statutory or common law liens or rights of setoff of depository banks with respect to funds of Borrower at such banks to secure fees
and charges in connection with returned items or the standard fees and charges of such banks in connection with the deposit accounts maintained by Borrower at such banks (but not any other Indebtedness or obligations); 

  
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 (j) deposits of cash with the owner or lessor of premises leased and operated by Borrower
in the ordinary course of the business of Borrower to secure the performance by Borrower of its obligations under the terms of the lease for such premises; 
 (k) judgments and other similar liens arising in connection with court proceedings that do not constitute an Event of Default, provided, that, (i) such liens are being contested in good faith and by
appropriate proceedings diligently pursued, (ii) adequate reserves or other appropriate provision, if any, as are required by GAAP have been made therefor, (iii) a stay of enforcement of any such liens is in effect and (iv) Lender may
establish a Reserve with respect thereto; 
 (l) the security interests and liens set forth in the Information Certificate and
any security interests and liens granted as a replacement or substitute therefor; provided that any such replacement or substitute security interest or lien (i) does not secure an aggregate amount of Indebtedness or other obligations, if any,
greater than that secured on the date hereof and (ii) does not encumber any property other than the property subject thereto on the date hereof; 
 (m) liens (i) incurred in the ordinary course of business to secure the performance of tenders, statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory
bonds, bids, government contracts, trade contracts, performance and return of money bonds and other similar obligations (in each case, exclusive of obligations for the payment of Indebtedness for borrowed money) or (ii) arising by virtue of
deposits made in the ordinary course of business to secure liability for premiums to insurance carriers; 
 (n) liens arising
out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the Borrower in the ordinary course of business of the Borrower in accordance with the past practices of the Borrower; 

(o) liens on property rented to, or leased by, the Borrower pursuant to a Sale and Leaseback Transaction; provided that (i) such
Sale and Leaseback Transaction is permitted by Section 9.23, (ii) such liens do not encumber any other property of the Borrower, and (iii) such Liens secure only the Attributable Indebtedness incurred in connection with such Sale and
Leaseback Transaction; 
 (p) licenses or sublicenses of Intellectual Property granted by the Borrower in the ordinary course
of business and not interfering in any material respect with the ordinary conduct of business of the Borrower or any of its Subsidiaries; 
 (q) leases, subleases, licenses and sublicenses of the properties of Borrower, in each case entered into in the ordinary course of the Borrower’s business so long as such leases, subleases, licenses
and sublicenses do not (i) individually or in the aggregate, interfere in any material respect with the ordinary conduct of the business of the Borrower or (ii) secure an Indebtedness; 

(r) liens of a collecting bank arising in the ordinary course of business under Section 4-208 of the Uniform Commercial Code as in
effect in the State of New York or any similar section under any applicable UCC, covering only the items being collected upon; 

  
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 (s) liens encumbering the underlying fee interest of any Real Property for which Borrower
has only a leasehold or subleasehold interest in the Real Property; 
 (t) all matters set forth in any lease that is a
leasehold interest included as Real Property (but only to the extent that Borrower only has a leasehold or subleasehold interest in the Real Property); 
 (u) liens not otherwise permitted under this Section 9.8 securing obligations that do not in the aggregate exceed $1,500,000 at any time outstanding; and 

(v) liens granted to the Term Collateral Agent, for the benefit of itself and the Term Secured Parties, to secure Indebtedness evidenced
by the Term Loan Documents to the extent such Liens are subject to the terms and conditions of the Intercreditor Agreement. 

9.9. Indebtedness. Borrower shall not incur, create, assume, become or be liable in any manner with respect to, or permit to
exist, any Indebtedness, or guarantee, assume, endorse, or otherwise become responsible for (directly or indirectly), the Indebtedness, performance, obligations or dividends of any other Person, except: 

(a) the Obligations; 
 (b) (i) purchase money Indebtedness for Equipment (including Capital Leases) arising after the date hereof in an aggregate amount not to exceed (i) $10,500,000 at any time outstanding with respect to
purchase money Indebtedness and Capital Leases related to assets other than the Distribution Center and (ii) $28,000,000 with respect to purchase money Indebtedness and Capital Leases related to the Distribution Center; provided, however, that,
in the case of purchase money Indebtedness, (A) such Indebtedness is incurred within ninety (90) days after such acquisition, installation, construction or improvement of such fixed or capital assets (including Capital Stock of any person
owning the applicable fixed or capital assets) by such person and (B) the amount of such Indebtedness does not exceed 100% of the cost of such acquisition, installation, construction or improvement, as the case may be; 

(c) Indebtedness of Borrower entered into in the ordinary course of business pursuant to a Hedge Agreement; provided, that,
(i) such arrangements are not for speculative purposes, (ii) such Indebtedness shall be unsecured, except to the extent such Indebtedness constitutes part of the Obligations arising under or pursuant to Hedge Agreements with any Bank
Product Provider that are secured under the terms hereof or except to the extent secured by pledges or deposits of cash as permitted herein, and (iii) the terms and amounts of such Indebtedness shall be reasonably acceptable to Lender;

 (d) the Indebtedness set forth in the Information Certificate and any renewals or refinancings thereof which do not increase
the principal amount of such Indebtedness; provided, that, (i) Borrower may only make regularly scheduled payments of principal and interest in respect of such Indebtedness in accordance with the terms of the agreement or instrument evidencing
or giving rise to such Indebtedness as in effect on the date hereof, (ii) Borrower shall not, directly or indirectly, 1) amend, modify, alter or change the terms of such Indebtedness or any agreement, document or instrument related thereto as
in effect on the date hereof except, that, Borrower may, after prior written notice to Lender, amend, modify, alter 

  
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or change the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other than
pursuant to payments thereof), or to reduce the interest rate or any fees in connection therewith, or 2) redeem, retire, defease, purchase or otherwise acquire such Indebtedness, or set aside or otherwise deposit or invest any sums for such purpose,
and (iii) Borrower shall furnish to Lender all notices or demands in connection with such Indebtedness either received by Borrower or on its behalf, promptly after the receipt thereof, or sent by Borrower or on its behalf, concurrently with the
sending thereof, as the case may be; 
 (e) outstanding and unpaid trade payables incurred in the ordinary course of
Borrower’s business; 
 (f) Indebtedness in respect of workers’ compensation claims, self-insurance obligations or
bid, performance or surety bonds or bankers’ acceptances issued for the account of the Borrower, in each case in the ordinary course of business, including guarantees or obligations of the Borrower with respect to letters of credit supporting
such workers’ compensation claims, self-insurance obligations or bid, performance or surety obligations or bankers’ acceptances (in each case other than for an obligation for borrowed money); 

(g) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five (5) Business Days of incurrence; 

(h) Indebtedness arising in connection with endorsement of instruments for deposit in the ordinary course of business; 

(i) Indebtedness of the Borrower in an aggregate principal amount for the Borrower not to exceed $5,000,000 at any time outstanding;

 (j) Indebtedness representing deferred compensation to employees of the Borrower incurred in the ordinary course of
business; 
 (k) cash management obligations and other Indebtedness incurred in the ordinary course of business in respect of
netting services and similar arrangements in each case in connection with cash management and deposit accounts; 
 (l)
Indebtedness consisting of the financing of insurance premiums, in the ordinary course of business, not to exceed one year of such premiums; 
 (m) (i) Indebtedness in respect of the Term Loan Documents in an aggregate principal amount outstanding not to exceed $100,000,000, and (ii) the amount of any Permitted Hedging Agreements (as defined
in the Term Loan Credit Agreement) at any time; and 
 (n) all premiums (if any), interest (including post-petition interest),
fees, expenses, charges and additional or contingent interest (other than pay-in-kind interest) on obligations described in clauses (a) through (m) of this Section 9.9. 

  
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 9.10. Loans, Investments, Etc. Borrower shall not directly or indirectly, make any
loans or advance money or property to any person, or invest in (by capital contribution, dividend or otherwise) or purchase or repurchase the capital stock or Indebtedness or all or a substantial part of the assets or property of any other Person,
or form or acquire any Subsidiaries (all of the foregoing, collectively, “Investments”), except for (a) Permitted Investments; (b) loans to directors, employees or officers incident to hiring or relocation expenses in the
aggregate for all such directors, employees or officers not to exceed $500,000 outstanding at any time, provided that any write off or debt forgiveness of any loan or portion thereof made by the Borrower in this context shall reduce the $500,000 by
an amount corresponding with such write off or debt forgiveness; and (c) miscellaneous loans to directors, employees or officers other than for hiring and relocation expenses in the aggregate of all such loans not to exceed $250,000 outstanding
at any time, provided that any write off or debt forgiveness of any loan or portion thereof made by the Borrower in this context shall reduce the $250,000 by an amount corresponding with such write off or debt forgiveness. 

9.11. Restricted Payments. Borrower shall not declare or make, or agree to pay or make, directly or indirectly, any Restricted
Payment other than (a) expense reimbursements and payments of salary, bonuses, equity, benefits and other compensation in the ordinary course of business of the Borrower, (b) $100,000,000 funded first from the proceeds of the Term Loan in
accordance with the Term Loan Agreement, and second from the Borrower’s cash-on-hand to the extent Term Loan proceeds net of applicable fees and costs (as such fees and costs are stipulated on the Closing Date) do not total $100,000,000;
(c) the Borrower may declare and make dividend payments or other distributions payable solely in its Capital Stock; (d) repurchases of Capital Stock in the Borrower deemed to occur upon exercise of stock options or warrants if such Capital
Stock represents a portion of the exercise price of such options or warrants; and (e) cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities convertible into or
exchangeable for Capital Stock of Borrower (provided however that any such cash payment shall not be for the purpose of evading the limitations of this covenant); unless in each case (i) Lender shall have received not less than ten
(10) Business Days’ prior written notice of Borrower’s intention to declare or make, or agreement to declare or make, such Restricted Payment, and (ii) after giving effect to such Restricted Payment, (A) except in the case
of Restricted Payments funded by the proceeds of new equity capital raised by the Borrower, Excess Borrowing Availability shall be no less than $3,000,000, and (B) no Default or Event of Default shall exist or have occurred and be continuing.

 9.12. Creation of Subsidiaries. Without the prior written consent of Lender, Borrower shall not, directly or
indirectly, create any Subsidiary. 
 9.13. Compliance with ERISA. Borrower shall (i) maintain each Pension Plan in
compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal law; (i) cause each Pension Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (ii) not
terminate any Pension Plan so as to incur any material liability to the Pension Benefit Guaranty Corporation; (iii) not allow or suffer to exist any prohibited transaction involving any Pension Plan or any trust created thereunder which would
subject Borrower to a material tax or other liability on prohibited transactions imposed under Section 4975 of the Code or ERISA; (iv) make all required contributions to any Pension 

  
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Plan which it is obligated to pay under Section 302 of ERISA, Section 412 of the Code or the terms of such Pension Plan; (v) not allow or suffer to exist any accumulated funding
deficiency, whether or not waived, with respect to any such Pension Plan; (vi) not engage in a transaction that could be subject to Section 4069 or 4212(c) of ERISA; or (vii) not allow or suffer to exist any occurrence of a reportable
event or any other event or condition which presents a material risk of termination by the Pension Benefit Guaranty Corporation of any Pension Plan that is a single employer plan, which termination could result in any material liability to the
Pension Benefit Guaranty Corporation. 
 9.14. End of Fiscal Years; Fiscal Quarters. Borrower shall, for financial
reporting purposes, cause its fiscal years and quarters to end on dates in accordance with the standard 52/53 week calendar. 

9.15. Credit Card Agreements. Borrower shall (a) observe and perform all material terms, covenants, conditions and provisions
of the Credit Card Agreements to be observed and performed by it at the times set forth therein; (b) at all times maintain in full force and effect the Credit Card Agreements and not terminate, cancel, surrender, modify, amend, waive or release
any of the Credit Card Agreements, or consent to or permit to occur any of the foregoing; except, that, Borrower may terminate or cancel any of the Credit Card Agreements in the ordinary course of the business of Borrower; provided, that, Borrower
shall give Lender not less than fifteen (15) days prior written notice of its intention to so terminate or cancel any of the Credit Card Agreements; (c) not enter into any new Credit Card Agreements with any new Credit Card Issuer unless
(i) Lender shall have received not less than fifteen (15) days prior written notice of the intention of Borrower to enter into such agreement (together with such other information with respect thereto as Lender may request) and
(ii) Borrower delivers, or causes to be delivered to Lender, a Credit Card Acknowledgment in favor of Lender; (d) give Lender immediate written notice of any Credit Card Agreement entered into by Borrower after the date hereof, together
with a true, correct and complete copy thereof and such other information with respect thereto as Lender may request, provided that the requirements of this subsection (d) shall not be deemed to be a waiver of Borrower’s obligations under
subsection (c) hereof; and (e) furnish to Lender, promptly upon the request of Lender, such information and evidence as Lender may reasonably require from time to time concerning the observance, performance and compliance by Borrower or
the other party or parties thereto with the terms, covenants or provisions of the Credit Card Agreements. 
 9.16. Change in
Business. Borrower shall not engage in any business other than the business of Borrower on the date hereof and any business reasonably related, ancillary or complimentary to the business in which Borrower is engaged on the date hereof.

 9.17. License Agreements. 
 (a) Borrower shall (i) promptly and faithfully observe and perform all of the material terms, covenants, conditions and provisions of the material License Agreements to which it is a party to be
observed and performed by it, at the times set forth therein. 
 (b) Borrower will either exercise any option to renew or
extend the term of each material License Agreement to which it is a party in such manner as will cause the 

  
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term of such material License Agreement to be effectively renewed or extended for the period provided by such option and give prompt written notice thereof to Lender or give Lender prior written
notice that Borrower does not intend to renew or extend the term of any such material License Agreement or that the term thereof shall otherwise be expiring, not less than sixty (60) days prior to the date of any such non-renewal or expiration.

 9.18. Foreign Assets Control Regulations, Etc. None of the requesting or borrowing of the Revolving Loans or the
requesting or issuance, extension or renewal of any Letter of Credit or the use of the proceeds of any thereof will violate the Trading With the Enemy Act (50 USC §1 et seq., as amended) (the “Trading With the Enemy Act”) or any of
the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any enabling legislation or executive order relating thereto
(including, but not limited to (a) Executive order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the
“Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56). Borrower will not become a “blocked person” as
described in the Executive Order, the Trading with the Enemy Act or the Foreign Assets Control Regulations and will not, to its knowledge, engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”.

 9.19. Leased Personal Property. Upon the reasonable request of Lender or at any time as requested by Lender upon the
occurrence and during the continuation of an Event of Default, Borrower shall deliver, or cause to be delivered, to Lender a duly executed agreement, in form and substance reasonably satisfactory to Lender, with each lessor of material personal
property leased by Borrower, including, without limitation, any computer equipment or software leased by Borrower and material to the conduct of the business of the Borrower, that provides Lender with access to such personal property. 

9.20. Costs and Expenses. Borrower shall pay to Lender on demand all costs, expenses, filing fees and taxes paid or payable in
connection with the preparation, negotiation, execution, delivery, recording, syndication, administration, collection, liquidation, enforcement and defense of the Obligations, Lender’s rights in the Collateral, this Agreement, the other
Financing Agreements and all other documents related hereto or thereto, including any amendments, supplements or consents which may hereafter be contemplated (whether or not executed) or entered into in respect hereof and thereof, including:
(a) all costs and expenses of filing or recording (including Uniform Commercial Code financing statement filing taxes and fees, documentary taxes, intangibles taxes and mortgage recording taxes and fees, if applicable); (b) all costs and
expenses and fees for insurance premiums, environmental audits, title insurance premiums, surveys, assessments, engineering reports and inspections, appraisal fees and search fees, background checks, costs and expenses of remitting loan proceeds,
collecting checks and other items of payment, and establishing and maintaining bank accounts, together with Lender’s customary charges and fees with respect thereto; (c) charges, fees or expenses charged in connection with any Letter of
Credit; (d) all reasonable costs and expenses of preserving and protecting the Collateral; (e) all costs and expenses paid or incurred in connection with obtaining payment of the Obligations, enforcing the security interests and liens of
Lender, selling or otherwise realizing upon the Collateral, and otherwise enforcing the provisions of this 

  
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Agreement and the other Financing Agreements or defending any claims made or threatened against Lender arising out of the transactions contemplated hereby and thereby (including preparations for
and consultations concerning any such matters); (f) subject to the limitations of Sections 7.3 and 7.7 hereof, all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred by Lender during the course of periodic
field examinations of the Collateral and Borrower’s operations, plus a per diem charge at Lender’s then standard rate for Lender’s examiners in the field and office; (g) all fees due and owing to Lender under the Fee Letter; and
(h) the reasonable fees and disbursements of counsel (including legal assistants) to Lender in connection with any of the foregoing. 
 9.21. Further Assurances. At the request of Lender at any time and from time to time, Borrower shall, at its expense, duly execute and deliver, or cause to be duly executed and delivered, such
further agreements, documents and instruments, and do or cause to be done such further acts as may be reasonably necessary or proper to evidence, perfect, maintain and enforce the security interests and the priority thereof in the Collateral and to
otherwise effectuate the provisions or purposes of this Agreement or any of the other Financing Agreements. Lender may at any time and from time to time request a certificate from an officer of Borrower representing that all conditions precedent to
the making of Revolving Loans and providing Letters of Credit contained herein are satisfied. In the event of such request by Lender, Lender may, at Lender’s option, cease to make any further Revolving Loans or provide any further Letters of
Credit until Lender has received such certificate and, in addition, Lender has determined that such conditions are satisfied. 

9.22. Minimum Excess Collateral Availability. Borrower shall at all times maintain Excess Collateral Availability of no less than
an amount equal to the greater of the following (as the case may be, the “Minimum Excess Collateral Availability”): (a) ten percent (10%) of the then-effective Maximum Credit; or (b) $3,000,000. 

9.23. Sale and Leaseback Transactions. Borrower shall not enter into any arrangement, directly or indirectly, with any person
whereby it shall sell or transfer any property used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or
purposes as the property being sold or transferred (a “Sale and Leaseback Transaction”) unless (a) the sale of such property is entered into in the ordinary course of business and is made for cash consideration in an amount not less
than the fair market value of such property, (b) the Sale and Leaseback Transaction is permitted by Section 9.7 and is consummated within sixty (60) days after the date on which such property is sold or transferred, (c) any Liens
arising in connection with its use of the property are permitted by Section 9.8(o), (d) the Sale and Leaseback Transaction would be permitted under Section 9.9, assuming the Attributable Indebtedness with respect to the Sale and
Leaseback Transaction constituted Indebtedness under Section 9.9 and (e) the Attributable Indebtedness incurred with respect to such Sale and Leaseback Transactions shall not exceed (i) for any property other than the Distribution
Center, $1,250,000 with respect to any single Sale and Leaseback Transaction and $2,500,000 in the aggregate in any period of twelve (12) consecutive months and (ii) for the Distribution Center, $28,000,000. 

  
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 SECTION 10. EVENTS OF DEFAULT AND REMEDIES 

10.1. Events of Default. The occurrence or existence of any one or more of the following events is referred to herein individually
as an “Event of Default”, and collectively as “Events of Default”: 
 (a) Borrower fails to pay
(i) any principal of any Revolving Loan when and as the same shall become due and payable or (ii) any interest on any Revolving Loan or any fee or any other amount due under any Financing Agreement, when and as the same shall become due
and payable; 
 (b) Borrower fails to perform or abide by any of the covenants contained in Section 9 of this Agreement
and such failure shall continue for ten (10) days; provided, that, such ten (10) day period shall not apply in the case of: (i) any failure to observe any such covenant which is not capable of being cured at all or within such ten
(10) day period or which has been the subject of a prior failure within a six (6) month period or (ii) an intentional breach by Borrower of any such covenant; 
 (c) Borrower fails to perform any of the other terms, covenants, conditions or provisions contained in this Agreement or in any of the other Financing Agreements and such failure shall continue for ten
(10) Business Days after the earlier to occur of (i) Lender’s provision of written notice of such failure to Borrower, and (ii) Borrower’s knowledge of such failure; provided, that, such ten (10) Business Day period
shall not apply in the case of: (i) any failure to observe any such term, covenant, condition or provision which is not capable of being cured at all or within such ten (10) Business Day period or which has been the subject of a prior
failure within a six (6) month period or (ii) an intentional breach by Borrower of any such term, covenant, condition or provision; 
 (d) any representation, warranty or statement of fact made by Borrower to Lender in this Agreement, the other Financing Agreements or any other written agreement, schedule, confirmatory assignment or
otherwise shall when made or deemed made be false or misleading in any material respect; 
 (e) any judgment for the payment of
money is rendered against Borrower in excess of $500,000 in any one case or in excess of $500,000 in the aggregate (to the extent not covered by insurance where the insurer has assumed responsibility in writing for such judgment) and shall remain
undischarged or unvacated for a period in excess of thirty (30) days or execution shall at any time not be effectively stayed, or any judgment other than for the payment of money, or injunction, attachment, garnishment or execution is rendered
against Borrower or any of the Collateral; 
 (f) Borrower makes an assignment for the benefit of creditors, makes or sends
notice of a bulk transfer or calls a meeting of its creditors or principal creditors in connection with a moratorium or adjustment of the Indebtedness due to them; 
 (g) a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction 

  
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now or hereafter in effect (whether at law or in equity) is filed against Borrower or all or any part of its properties and such petition or application is not dismissed within sixty
(60) days after the date of its filing or Borrower shall file any answer admitting or not contesting such petition or application or indicates its consent to, acquiescence in or approval of, any such action or proceeding or the relief requested
is granted sooner; 
 (h) a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in
effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at a law or equity) is filed by Borrower or for all or any part of
its property; 
 (i) any default by Borrower under (A) any agreement, document or instrument relating to any Indebtedness
owing to any person other than Lender, or any capitalized lease obligations, contingent indebtedness in connection with any guarantee, letter of credit, indemnity or similar type of instrument in favor of any person other than Lender, in any case in
an amount in excess of $500,000, or (B) any lease of real property for which the leased premises is the Borrower’s corporate headquarters or one of the Borrower’s distribution centers, in each such case under (A) and
(B) which default continues for more than the applicable cure period, if any, with respect thereto; provided that, any such default referred to in subclause (A) relating to Indebtedness under the Term Loan Documents shall constitute an
Event of Default under this Section 10.1 only after the earliest to occur of (x) expiration of a forty-five (45)-day period following the commencement of such failure or the date of such occurrence, (y) any acceleration of the Term
Loan Credit Agreement (as defined in the Intercreditor Agreement), whether automatic or otherwise or (z) the commencement of any Enforcement Action (as defined in the Intercreditor Agreement) by the Term Collateral Agent or any holder of the
Term Loan Documents as the result of such default; 
 (j) any default by Borrower under any Material Contract (including,
without limitation, any of the Credit Card Agreements), which default continues for more than the applicable cure period, if any, with respect thereto which default has or could reasonably be expected to have a Material Adverse Effect, or any Credit
Card Issuer or Credit Card Processor (other than with a Credit Card Issuer or Credit Card Processor where the sales using the applicable card are less than ten percent (10%) of all such sales in the immediately preceding fiscal year) withholds
payment of amounts otherwise payable to Borrower to fund a reserve account or otherwise hold as collateral, or shall require Borrower to pay funds into a reserve account or for such Credit Card Issuer or Credit Card Processor to otherwise hold as
collateral, or Borrower shall provide a letter of credit, guarantee, indemnity or similar instrument to or in favor of such Credit Card Issuer or Credit Card Processor such that in the aggregate, all of such funds in the reserve account, other
amounts held as collateral and the amount of such letters of credit, guarantees, indemnities or similar instruments shall exceed $1,000,000, or any such Credit Card Issuer or Credit Card Processor shall debit or deduct any amounts in excess of
$250,000 in the aggregate in any fiscal year of Borrower from any deposit account of any Borrower; 
 (k) any Credit Card
Issuer or Credit Card Processor shall send written notice to Borrower that it is ceasing to make or suspending payments to Borrower of amounts 

  
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due or to become due to Borrower or shall cease or suspend such payments, or shall send written notice to Borrower that it is terminating its arrangements with Borrower or such arrangements shall
terminate as a result of any event of default under such arrangements, which continues for more than the applicable cure period, if any, with respect thereto, unless Borrower shall have entered into arrangements with another Credit Card Issuer or
Credit Card Processor, as the case may be, within sixty (60) days after the date of any such notice; 
 (l) any material
provision hereof or of any of the other Financing Agreements shall for any reason cease to be valid, binding and enforceable with respect to any party hereto or thereto (other than Lender) in accordance with its terms, or any such party shall
challenge the enforceability hereof or thereof, or shall assert in writing, or take any action or fail to take any action based on the assertion that any provision hereof or of any of the other Financing Agreements has ceased to be or is otherwise
not valid, binding or enforceable in accordance with its terms, or any security interest provided for herein or in any of the other Financing Agreements shall cease to be a valid and perfected first priority security interest in any of the
Collateral purported to be subject thereto (except as otherwise permitted herein or therein and subject to the terms of the Intercreditor Agreement); 
 (m) an ERISA Event shall occur which results in or could reasonably be expected to result in liability of Borrower in an aggregate amount in excess of $2,000,000; 

(n) the occurrence of any Change of Control; or 
 (o) the indictment by any Governmental Authority, or as Lender may reasonably and in good faith determine, the threatened indictment by any Governmental Authority of Borrower of which any Borrower or
Lender receives notice, in either case, as to which there is a reasonable possibility of an adverse determination, in the good faith determination of Lender, under any criminal statute, or commencement or threatened commencement of criminal or civil
proceedings against Borrower, pursuant to which statute or proceedings the penalties or remedies sought or available include forfeiture of (i) any of the Collateral having a value in excess of $2,000,000 or (ii) any other property of
Borrower which is necessary or material to the conduct of its business. 
 10.2. Remedies. 

(a) At any time an Event of Default exists or has occurred and is continuing, Lender shall have all rights and remedies provided in this
Agreement, the other Financing Agreements, the UCC and other applicable law, all of which rights and remedies may be exercised without notice to or consent by Borrower, except as such notice or consent is expressly provided for hereunder or required
by applicable law. All rights, remedies and powers granted to Lender hereunder, under any of the other Financing Agreements, the UCC or other applicable law, are cumulative, not exclusive and enforceable, in Lender’s discretion, alternatively,
successively, or concurrently on any one or more occasions, and shall include, without limitation, the right to apply to a court of equity for an injunction to restrain a breach or threatened breach by Borrower of this Agreement or any of the other
Financing Agreements. 

  
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 (b) Without limiting the generality of the foregoing, at any time an Event of Default
exists or has occurred and is continuing, Lender may, at its option (i) upon notice to Borrower, accelerate the payment of all Obligations and demand immediate payment thereof (provided, that, upon the occurrence of any Event of Default
described in Sections 10.1(f), 10.1(g) and 10.1(h), all Obligations shall automatically become immediately due and payable), and (ii) terminate the Commitment whereupon the obligation of Lender to make any Revolving Loan or to issue any Letter
of Credit shall immediately terminate (provided, that, upon the occurrence of any Event of Default described in Sections 10.1(f), 10.1(g) and 10.1(h), the Commitment and any other obligation of the Lender hereunder shall automatically terminate).

 (c) Without limiting the foregoing, at any time an Event of Default exists or has occurred and is continuing, Lender may, in
its discretion (i) with or without judicial process or the aid or assistance of others, enter upon any premises on or in which any of the Collateral may be located and take possession of the Collateral or complete processing, manufacturing and
repair of all or any portion of the Collateral, (ii) require Borrower, at Borrower’s expense, to assemble and make available to Lender any part or all of the Collateral at any place and time designated by Lender, (iii) collect,
foreclose, receive, appropriate, setoff and realize upon any and all Collateral, (iv) remove any or all of the Collateral from any premises on or in which the same may be located for the purpose of effecting the sale, foreclosure or other
disposition thereof or for any other purpose, (v) sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including entering into contracts with respect thereto, public or private sales at any exchange,
broker’s board, at any office of Lender or elsewhere) at such prices or terms as Lender may deem reasonable, for cash, upon credit or for future delivery, with the Lender having the right to purchase the whole or any part of the Collateral at
any such public sale, all of the foregoing being free from any right or equity of redemption of Borrower, which right or equity of redemption is hereby expressly waived and released by Borrower and/or (vi) terminate this Agreement. If any of
the Collateral is sold or leased by Lender upon credit terms or for future delivery, the Obligations shall not be reduced as a result thereof until payment therefor is finally collected by Lender. If notice of disposition of Collateral is required
by law, ten (10) days prior notice by Lender to Borrower designating the time and place of any public sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be reasonable
notice thereof and Borrower waives any other notice. In the event Lender institutes an action to recover any Collateral or seeks recovery of any Collateral by way of prejudgment remedy, Borrower waives the posting of any bond which might otherwise
be required. At any time an Event of Default exists or has occurred and is continuing, upon Lender’s request, Borrower will either, as Lender shall specify, furnish cash collateral to Lender to be used to secure and fund the reimbursement
obligations to Lender in connection with any Letter of Credit Obligations or furnish cash collateral to Lender for the Letter of Credit Obligations. Such cash collateral shall be in the amount equal to one hundred ten (110%) percent of the
amount of the Letter of Credit Obligations plus the amount of any fees and expenses payable in connection therewith through the end of the latest expiration date of the Letters of Credit giving rise to such Letter of Credit Obligations. 

(d) At any time or times that an Event of Default exists or has occurred and is continuing, Lender may enforce the rights of the
Borrower against any account debtor, secondary obligor or other obligor in respect of any of the Accounts or other Receivables. 

  
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Without limiting the generality of the foregoing, Lender may (i) notify any or all account debtors (including Credit Card Issuers and Credit Card Processors), secondary obligors or other
obligors in respect thereof that the Receivables have been assigned to Lender and that Lender has a security interest therein and Lender may direct any or all account debtors (including Credit Card Issuers and Credit Card Processors), secondary
obligors and other obligors to make payment of Receivables directly to Lender, (ii) extend the time of payment of, compromise, settle or adjust for cash, credit, return of merchandise or otherwise, and upon any terms or conditions, any and all
Receivables or other obligations included in the Collateral and thereby discharge or release the account debtor or any secondary obligors or other obligors in respect thereof without affecting any of the Obligations, (iii) demand, collect or
enforce payment of any Receivables or such other obligations, but without any duty to do so, and Lender shall not be liable for any failure to collect or enforce the payment thereof nor for the negligence of its agents or attorneys with respect
thereto, (iv) take whatever other action Lender may deem necessary or desirable for the protection of its interests, (v) request that all invoices and statements sent to any account debtor state that the Accounts and such other obligations
have been assigned to Lender and are payable directly and only to Lender, and (vi) request that Borrower deliver to Lender such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise to any
Accounts as Lender may require. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, the Borrower shall, upon Lender’s request, hold the returned Inventory in trust for Lender,
segregate all returned Inventory from all of its other property, dispose of the returned Inventory solely according to Lender’s instructions, and not issue any credits, discounts or allowances with respect thereto without Lender’s prior
written consent. 
 (e) To the extent that applicable law imposes duties on Lender to exercise remedies in a commercially
reasonable manner (which duties cannot be waived under such law), Borrower acknowledges and agrees that it is not commercially unreasonable for Lender (i) to fail to incur expenses reasonably deemed significant by Lender to prepare Collateral
for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if
not required by other law, to fail to obtain consents of any Governmental Authority or other third party for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against
account debtors, secondary obligors or other persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral, (iv) to exercise collection remedies against account debtors and other persons
obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a
specialized nature, (vi) to contact other persons, whether or not in the same business as Borrower, for expressions of interest in acquiring all or any portion of the Collateral, (vii) to hire one or more professional auctioneers to assist
in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in the Collateral or that have
the reasonable capability of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, (xi) to purchase insurance or credit
enhancements to insure Lender against risks of loss, collection or 

  
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disposition of Collateral or to provide to Lender a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Lender, to obtain the
services of other brokers, investment bankers, consultants and other professionals to assist Lender in the collection or disposition of any of the Collateral. Borrower acknowledges that the purpose of this subsection (e) is to provide
non-exhaustive indications of what actions or omissions by Lender would not be commercially unreasonable in the exercise by Lender of remedies against the Collateral and that other actions or omissions by Lender shall not be deemed commercially
unreasonable solely on account of not being indicated in this subsection (e). Without limitation of the foregoing, nothing contained in this subsection (e) shall be construed to grant any rights to Borrower or to impose any duties on Lender
that would not have been granted or imposed by this Agreement or by applicable law in the absence of this subsection (e). 

(f) For the purpose of enabling Lender to exercise the rights and remedies hereunder, Borrower hereby grants to Lender, to the extent
assignable, an irrevocable, non-exclusive license (exercisable at any time an Event of Default shall exist or have occurred and for so long as the same is continuing) without payment of royalty or other compensation to Borrower, to use, assign,
license or sublicense any of the trademarks, service-marks, trade names, business names, trade styles, designs, logos and other source of business identifiers and other Intellectual Property and general intangibles now owned or hereafter acquired by
Borrower, wherever the same maybe located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof. 

(g) At any time an Event of Default exists or has occurred and is continuing, Lender may apply the cash proceeds of Collateral actually
received by Lender from any sale, lease, foreclosure or other disposition of the Collateral to payment of the Obligations, in whole or in part and in accordance with the terms hereof, whether or not then due or may hold such proceeds as cash
collateral for the Obligations. Borrower shall remain liable to Lender for the payment of any deficiency with interest at the highest rate provided for herein and all reasonable costs and expenses of collection or enforcement, including reasonable
attorneys’ fees and expenses. 
 (h) Without limiting the foregoing, upon the occurrence and during the continuation of a
Default or an Event of Default, Lender may, at Lender’s option, without notice, (i) cease making Revolving Loans or arranging for Letters of Credit or reduce the lending formulas or amounts of Revolving Loans and Letters of Credit
available to Borrower and/or (ii) terminate any provision of this Agreement providing for any future Revolving Loans to be made by Lender or Letters of Credit to be issued by Lender. 

SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW. 

11.1. Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver. 

(a) The validity, interpretation and enforcement of this Agreement and the other Financing Agreements (except as otherwise provided
therein) and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, 

  
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shall be governed by the internal laws of the Commonwealth of Pennsylvania, but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of
any jurisdiction other than the laws of the Commonwealth of Pennsylvania. 
 (b) Borrower and Lender irrevocably consent and
submit to the non-exclusive jurisdiction of the state courts for the Commonwealth of Pennsylvania and the United States District Court for the Eastern District of Pennsylvania, whichever Lender may elect, and waive any objection based on venue or
forum non conveniens with respect to any action instituted therein arising under this Agreement or any of the other Financing Agreements or in any way connected with or related or incidental to the dealings of the parties hereto in respect of this
Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to
any such matters shall be heard only in the courts described above (except that Lender shall have the right to bring any action or proceeding against Borrower or its property in the courts of any other jurisdiction which Lender deems necessary or
appropriate in order to realize on the Collateral or to otherwise enforce its rights against Borrower or its property). 
 (c)
Borrower hereby waives personal service of any and all process upon it and consents that all such service of process may be made by certified mail (return receipt requested) directed to its address set forth herein and service so made shall be
deemed to be completed five (5) days after the same shall have been so deposited in the U.S. mails, or, at Lender’s option, by service upon Borrower in any other manner provided under the rules of any such courts. 

(d) BORROWER AND LENDER EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO
OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWER AND LENDER EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY
COURT TRIAL WITHOUT A JURY AND THAT BORROWER AND LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

(e) Lender shall not have any liability to Borrower (whether in tort, contract, equity or otherwise) for losses suffered by Borrower in
connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Agreement or any other Financing Agreement, or any act, omission or event occurring in connection herewith, unless it is determined by a
final and non-appealable judgment or court order binding on Lender that the losses were the result of acts or omissions constituting gross negligence or willful misconduct by Lender. In any such litigation, Lender shall be entitled to the benefit of
the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Agreement and each other Financing Agreement. 

  
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 11.2. Waiver of Notices. Borrower hereby expressly waives demand, presentment,
protest and notice of protest and notice of dishonor with respect to any and all instruments and chattel paper, included in or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of any kind or nature
whatsoever with respect to the Obligations, the Collateral and this Agreement, except such as are expressly provided for herein. No notice to or demand on Borrower which Lender may elect to give shall entitle Borrower to any other or further notice
or demand in the same, similar or other circumstances. 
 11.3. Amendments and Waivers. Neither this Agreement nor any
other Financing Agreement nor any terms hereof or thereof may be amended, waived, discharged or terminated unless such amendment, waiver, discharge or termination is in writing signed by Lender, and as to amendments to any of the Financing
Agreements, by Borrower. Any and all amendments, waivers, discharges or terminations shall be effective and binding as to Lender only in the specific instance and for the specific purpose for which given. 

11.4. Waiver of Counterclaims. Borrower waives all rights to interpose any claims, deductions, setoffs or counterclaims of any
nature (other than compulsory counterclaims) in any action or proceeding with respect to this Agreement, the Obligations, the Collateral or any matter arising therefrom or relating hereto or thereto. 

11.5. Indemnification. Borrower shall indemnify and hold Lender and its respective officers, directors, agents, employees,
advisors and counsel and their respective Affiliates (each such person being an “Indemnitee”), harmless from and against any and all losses, claims, damages, liabilities, reasonable costs or expenses (including reasonable attorneys’
fees and expenses) imposed on, incurred by or asserted against any of them in connection with any litigation, investigation, claim or proceeding commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement,
performance or administration of this Agreement, any other Financing Agreements, or any undertaking or proceeding related to any of the transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto,
including amounts paid in settlement, court costs, and the reasonable fees and expenses of counsel except that Borrower shall not have any obligation under this Section to indemnify an Indemnitee with respect to a matter covered hereby resulting
from the gross negligence or willful misconduct of such Indemnitee as determined pursuant to a final, non-appealable order of a court of competent jurisdiction (but without limiting the obligations of Borrower as to any other Indemnitee). To the
extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion which it is permitted to pay under applicable law to
Lender in satisfaction of indemnified matters under this Section. No Indemnitee referred to above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this Agreement or any of the other Financing Agreements or the transaction contemplated hereby or thereby. All amounts due under this Section shall be
payable upon demand. The foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal of this Agreement. 

  
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 11.6. Waiver of Special Damages. To the extent permitted by applicable law, neither
Borrower nor Lender shall assert, and each of Borrower and Lender hereby waives, any claim against the officers, directors, agents, employees, advisors, counsel and Affiliates of the other party, on any theory of liability for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any of the other Financing Agreements or any undertaking or transaction contemplated hereby.

 SECTION 12. TERM OF AGREEMENT; MISCELLANEOUS 
 12.1. Term. 
 (a) This Agreement and the other Financing Agreements shall
continue in full force and effect until the earliest to occur of the following (as the case may be, the “Termination Date”): (i) May 16, 2017; (ii) the date which is 45 days prior to the Term Loan Maturity Date; or
(iii) at the election of Lender in its sole discretion, upon the occurrence of an Event of Default. 
 (b) No termination
of this Agreement or any of the other Financing Agreements shall relieve or discharge Borrower of its respective duties, obligations and covenants under this Agreement or any of the other Financing Agreements until all Obligations have been fully
and finally discharged and paid, and Lender’s continuing security interest in the Collateral and the rights and remedies of Lender hereunder, under the other Financing Agreements and applicable law, shall remain in effect until all such
Obligations have been fully and finally discharged and paid. Accordingly, Borrower waives any rights it may have under the UCC to demand the filing of termination statements with respect to the Collateral and Lender shall not be required to send
such termination statements to Borrower, or to file them with any filing office, unless and until this Agreement shall have been terminated in accordance with its terms and all Obligations paid and satisfied in full in immediately available funds.
Upon the termination of this Agreement in accordance with its terms and the payment and satisfaction in full of all Obligations, including the satisfaction of all indemnification and other obligations of Borrower which survive the payment of the
Obligations and the termination or non-renewal of this Agreement as provided herein, in each case as determined by Lender in its sole discretion, Lender shall, at the request and expense of Borrower, prepare, file and/or record all necessary
instruments, documents, releases, satisfactions and terminations, including UCC termination statements, to evidence and effectuate the termination of the Credit Facility and any interest of Lender in and to the Collateral. 

12.2. Interpretative Provisions. 
 (a) All terms used herein which are defined in Article 1, Article 8 or Article 9 of the UCC shall have the meanings given therein unless otherwise defined in this Agreement. 

(b) All references to the plural herein shall also mean the singular and to the singular shall also mean the plural, unless the context
otherwise requires. 

  
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 (c) All references to Borrower or Lender pursuant to the definitions set forth in the
recitals hereto, or to any other person herein, shall include their respective successors and assigns. 
 (d) The words
“hereof”, “herein”, “hereunder”, “this Agreement” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not any particular provision of this Agreement and as this
Agreement now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 (e) The
word “including” when used in this Agreement shall mean “including, without limitation” and the word “will” when used in this Agreement shall be construed to have the same meaning and effect as the word
“shall”. 
 (f) An Event of Default shall exist or continue or be continuing until such Event of Default is waived in
accordance with Section 11.3 hereof or is cured in a manner satisfactory to Lender, if such Event of Default is capable of being cured as determined by Lender in good faith. 

(g) All references to the term “good faith” used herein when applicable to Lender shall mean, notwithstanding anything to the
contrary contained herein or in the UCC, honesty in fact in the conduct or transaction concerned. Borrower shall have the burden of proving any lack of good faith on the part of Lender as alleged by Borrower. 

(h) Any accounting term used in this Agreement shall have, unless otherwise specifically provided herein, the meaning customarily given
in accordance with GAAP, and all financial computations hereunder shall be computed unless otherwise specifically provided herein, in accordance with GAAP as consistently applied and using the same method for inventory valuation as used in the
preparation of the financial statements of Borrower most recently received by Lender prior to the date hereof. Notwithstanding anything to the contrary contained in GAAP or any interpretations or other pronouncements by the Financial Accounting
Standards Board or otherwise, the term “unqualified opinion” as used herein to refer to opinions or reports provided by accountants shall mean an opinion or report that is unqualified and also does not include any explanation, supplemental
comment or other comment concerning the ability of the applicable person to continue as a going concern or the scope of the audit. 
 (i) In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”, the words “to” and “until”
each mean “to but excluding” and the word “through” means “to and including”. 
 (j) Unless
otherwise expressly provided herein, (i) references herein to any agreement, document or instrument shall be deemed to include all subsequent amendments, modifications, supplements, extensions, renewals, restatements or replacements with
respect thereto, but only to the extent the same are not prohibited by the terms hereof or of any other Financing Agreement, and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory
provisions consolidating, amending, replacing, recodifying, supplementing or interpreting the statute or regulation. 

  
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 (k) The captions and headings of this Agreement are for convenience of reference only and
shall not affect the interpretation of this Agreement. 
 (l) This Agreement and other Financing Agreements may use several
different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their terms. 

(m) This Agreement and the other Financing Agreements are the result of negotiations among and have been reviewed by counsel to Lender
and Borrower, and are the products of all parties. Accordingly, this Agreement and the other Financing Agreements shall not be construed against Lender merely because of Lender’s involvement in their preparation. 

12.3. Notices. All notices, requests and demands hereunder shall be in writing and deemed to have been given or made: if delivered
in person, immediately upon delivery; if by telex, telegram or facsimile transmission, immediately upon sending and upon confirmation of receipt; if by nationally recognized overnight courier service with instructions to deliver the next Business
Day, one (1) Business Day after sending; and if by certified mail, return receipt requested, five (5) days after mailing. All notices, requests and demands upon the parties are to be given to the following addresses (or to such other
address as any party may designate by notice in accordance with this Section): 
  

			
	 If to Borrower:
	  	 Five Below, Inc.
 1818
Market Street, Suite 1900
 Philadelphia, PA 19103

Attention:    Kenneth R. Bull

                   
    Chief Financial Officer
 Telephone No.: (215) 207-2604
 Telecopy No.: (215) 546-1695

		
	 with a copy to:
	  	 Pepper Hamilton LLP
 3000
Two Logan Square
 Eighteenth and Arch Streets
 Philadelphia, PA 19103-2799
 Attention: Barry Abelson, Esquire

Telephone No.: (215) 981-4282
 Telecopy No.:
(215) 981-4750

		
	 If to Lender:
	  	 Wells Fargo Bank, National Association
 c/o Peter Foley
 Wells Fargo Retail Finance
 One Boston Place, 19th Floor
 Boston, MA 02108
 Telephone No.: 617-854-7283
 Telecopy No.:
855-461-3726

  
 -82-

			
		
	 with a copy to:
	  	 Duane Morris LLP
 United Plaza
 30 S.
17th Street

Philadelphia, PA 19103
 Attention: James J. Holman, Esquire
 Lauren Lonergan Taylor, Esquire

Telephone No.: (215) 979-1000
 Telecopy No.: (215) 979-1020

 12.4. Partial Invalidity. If any provision of this Agreement is held to be invalid or
unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole, but this Agreement shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and
obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. 
 12.5.
Successors. This Agreement, the other Financing Agreements and any other document referred to herein or therein shall be binding upon and inure to the benefit of and be enforceable by Lender, Borrower and their respective successors and
assigns, except that Borrower may not assign its rights under this Agreement, the other Financing Agreements and any other document referred to herein or therein without the prior written consent of Lender. Any such purported assignment without such
express prior written consent shall be void. The terms and provisions of this Agreement and the other Financing Agreements are for the purpose of defining the relative rights and obligations of Borrower and Lender with respect to the transactions
contemplated hereby and there shall be no third party beneficiaries of any of the terms and provisions of this Agreement or any of the other Financing Agreements. 
 12.6. Assignments; Participations. Lender may sell, assign, transfer, negotiate, grant participations in, or otherwise dispose of all or any part of Lender’s interest in the Revolving Loans at
any time. Borrower hereby authorizes Lender to provide without any notice to the Borrower, any information concerning the Borrower, including information pertaining to Borrower’s financial condition, business operations or general
creditworthiness, to any person or entity which may succeed to or participate in all or any part of the Lender’s interest in the Revolving Loans; provided, that, such person or entity agrees to hold such information confidential in accordance
with a confidentiality agreement in form and substance reasonably acceptable to Borrower and Lender. 
 12.7. Entire
Agreement. This Agreement, the other Financing Agreements, any supplements hereto or thereto, and any instruments or documents delivered or to be delivered in connection herewith or therewith represent the entire agreement and understanding
concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning
the subject matter hereof, whether oral or written. In the event of any inconsistency between the terms of this Agreement and any schedule or exhibit hereto, the terms of this Agreement shall govern. 

  
 -83-

 12.8. USA Patriot Act. Pursuant to the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001) (the “Act”), Lender hereby notifies Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies each person or corporation who opens
an account and/or enters into a business relationship with it, which information includes the name and address of Borrower and other information that will allow Lender to identify such person in accordance with the Act and any other applicable law.
Borrower is hereby advised that any Revolving Loans or Letters of Credit hereunder are subject to satisfactory results of such verification. 
 12.9. Counterparts, Etc. This Agreement or any of the other Financing Agreements may be executed in any number of counterparts, each of which shall be an original, but all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement or any of the other Financing Agreements by telefacsimile or other electronic method of transmission shall have the same force and effect as the
delivery of an original executed counterpart of this Agreement or any of such other Financing Agreements. Any party delivering an executed counterpart of any such agreement by telefacsimile or other electronic method of transmission shall also
deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of such agreement. 
 12.10. Release. In consideration of Lender entering into this Agreement, Borrower hereby fully and unconditionally releases and forever discharges Lender and its respective directors, officers,
employees, subsidiaries, branches, affiliates, attorneys, agents, representatives, successors and assigns and all persons, firms, corporations and organizations acting on any of their behalves (collectively, the “Released Parties”), of and
from any and all claims, allegations, causes of action, costs or demands and liabilities, of whatever kind or nature, from the beginning of the world to the date on which this Agreement is effective, whether known or unknown, liquidated or
unliquidated, fixed or contingent, asserted or unasserted, foreseen or unforeseen, matured or unmatured, suspected or unsuspected, anticipated or unanticipated, which Borrower has, had, claims to have had or hereafter claims to have against the
Released Parties by reason of any act or omission on the part of the Released Parties, or any of them, on account of or in any way affecting, concerning or arising out of or founded upon this Agreement, including all such loss or damage of any kind
heretofore sustained or that may arise as a consequence of the dealings among the parties in connection with the administration or enforcement of the Revolving Loans, the Obligations, this Agreement or any of the other Financing Agreements
(collectively, all of the foregoing are the “Claims”) prior to the date hereof. Borrower represents and warrants that the foregoing constitutes a full and complete release of all Claims. 

12.11. Intercreditor Agreement. 
 (a) Reference is made to the Intercreditor Agreement. Lender (a) consents to the subordination of liens provided for in the Intercreditor Agreement and (b) agrees that it will be bound by and
will take no actions contrary to the provisions of the Intercreditor Agreement. The foregoing provisions are intended as an inducement to Lender to extend credit, and Lender is an intended third party beneficiary of such provisions and the
provisions of the Intercreditor Agreement. 

  
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 (b) Reference is made to the Intercreditor Agreement. Notwithstanding any other provision
contained herein, this Agreement, the liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the
applicable Senior Obligations Security Documents (as defined in the lntercreditor Agreement). In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor
Agreement shall control. 

  
 -85-

 IN WITNESS WHEREOF, Lender and Borrower have caused these presents to be duly executed as of
the day and year first above written. 
  

							
	LENDER:	 	BORROWER:
		
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as successor by merger to
 Wachovia Bank, N.A.
	 	FIVE BELOW, INC.
				
	By:	 	 /s/ Matthew N. Williams
	 	By:	 	 /s/ Kenneth R. Bull

	Name:	 	Matthew N. Williams	 	Name:	 	Kenneth R. Bull
	Title:	 	Managing Director	 	Title:	 	Chief Financial Officer, Treasurer,
		 		 		 	Secretary
		 		 		 	

 [Signature Page to Second Amended and Restated Loan and Security Agreement] 

 SCHEDULE 1.26 
 Credit Card Agreements 
  

							
	 Name of Company
	  	 Name of Processor
	  	Date	 
	 Five Below, Inc.
	  	Paymentech, LLC	  	 	10/27/2009	  

  

 SCHEDULE 1.32 
 Customs Broker 
 Samuel Shapiro & Co., Inc. 

 

 Exhibits 
 Exhibit “A” Form of Borrowing Base Certificate 
 Exhibit “B” Information
Certificate 
 Exhibit “C” Form of Compliance Certificate 
 Exhibit “D” Form of Intercreditor Agreement 
 [Exhibits A through D have been omitted as
certain of these exhibits are either subject to post-closing determinations or have been separately filed as exhibits to Amendment No. 1 to the Form S-1. The Company agrees to furnish supplementally a copy of these exhibits to the Securities
and Exchange Commission upon request.]Lien Subordination and Intercreditor Agreement

 Exhibit 10.31 
 LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT 
 dated as of May 16, 2012,

 among 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as Revolving Facility Agent, 
 GOLDMAN SACHS BANK USA, 

as Term Loan Agent, 
 FIVE BELOW, INC. 
 and 

The Subsidiaries of Five Below, Inc. from time to time party hereto 

 LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT dated as of May 16, 2012 (as amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”), among Wells Fargo Bank, National Association, a national banking association, as successor by merger to Wachovia Bank,
National Association, Goldman Sachs Bank USA, as agent for the Term Loan Secured Parties referred to herein; Five Below, Inc.; and the Subsidiaries of Five Below, Inc. from time to time party hereto. 

Reference is made to (a) the Revolving Facility Credit Agreement, under which the Revolving Facility Lenders have extended and
agreed to extend credit to the Company and (b) the Term Loan Credit Agreement, under which the Term Loan Lenders have extended credit to the Company. 
 As of the date hereof, Wells Fargo Bank, National Association is the sole lender under the Revolving Facility Credit Agreement. Accordingly, until such time as the Revolving Facility Obligations may be
held by one or more additional lenders, each of the terms “Revolving Facility Agent,” “Revolving Facility Lenders,” “Revolving Facility Required Parties,” and “Revolving Facility Secured Parties,” shall be
deemed to mean Wells Fargo Bank, National Association, in its individual capacity. 
 In consideration of the mutual agreements
herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Revolving Facility Agent (for itself and on behalf of the Revolving Facility Secured Parties), the Term Loan Agent (for
itself and on behalf of the Term Loan Secured Parties), Five Below, Inc. and the Subsidiaries of Five Below, Inc. from time to time party hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 

Section 1.01. Construction, Certain Defined Terms. (a) The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to
be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (i) any definition of or reference
to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, replaced, supplemented or otherwise modified, (ii) any reference
herein to any person shall be construed to include such person’s successors and permitted assigns, but shall not be deemed to include the Subsidiaries of such person unless express reference is made to such Subsidiaries, (iii) the words
“herein,” “hereof,” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles and
Sections shall be construed to refer to Articles and Sections of this Agreement and (v) unless otherwise expressly qualified herein, the words “asset” and “property” shall be construed to have the same meaning and effect and
to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

  
 -2-

 (b) Any capitalized term used and not otherwise defined herein shall have the meaning
assigned to it in Article 1 of the Revolving Facility Credit Agreement, as in effect on the date hereof. All terms used in this Agreement that are defined in Article 1, 8 or 9 of the UCC (whether capitalized herein or not) and not otherwise defined
herein or in the Revolving Facility Credit Agreement shall have the meanings assigned to them in Article 1, 8 or 9 of the UCC. If a term is defined in Article 9 of the UCC and another Article of the UCC, such term shall have the meaning assigned to
it in Article 9 of the UCC. 
 (c) As used in this Agreement, the following terms have the meanings specified below: 

“Bank Product Obligations” means, with respect to any Bank Product Recipient, any obligations of such Bank Product
Recipient owed to any holder of Revolving Facility Obligations or an Affiliate thereof in respect of any financial accommodation extended to such Bank Product Recipient by such Person (other than any Revolving Facility Obligation pursuant to the
Revolving Facility Credit Agreement), including (a) credit cards or stored value cards or (b) cash management or related services, including (1) the automated clearinghouse transfer of funds for the account of the Company pursuant to
agreement or overdraft for any accounts of the Company maintained at any Bank Product Provider that are subject to the control of Revolving Facility Secured Parties pursuant to any Deposit Account Control Agreement to which any Revolving Facility
Lender or any Affiliate of any Revolving Facility Lender is a party, as applicable, and (2) controlled disbursement services and (3) hedge agreements if and to the extent permitted under the Revolving Facility Credit Agreement and the Term
Loan Credit Agreement. 
 “Bank Product Obligations Cap” has the meaning ascribed thereto in
Section 2.01(d). 
 “Bank Product Recipient” means, collectively, Company and each of its Subsidiaries.

 “Borrowing Base” shall mean, at any time, the amount equal to: ninety percent (90%) of the Eligible
Credit Card Receivables of the Company, plus ninety percent (90%) of the Net Recovery Percentage of Eligible Inventory of the Company multiplied by the Value thereof, minus Reserves attributable to the Company. 

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including, without limitation, partnership interests and membership interests, and any and all warrants, rights or options to purchase or
other arrangements or rights to acquire any of the foregoing. 
 “Collateral” means the Revolving Facility
Collateral and the Term Loan Collateral. 
 “Company” means Five Below, Inc., a Pennsylvania corporation.

 “DIP Cap” means, on any date of determination, the sum of the aggregate outstanding principal amount of
loans (including any advances or overadvances permitted by the Revolving Facility Credit Agreement), letter of credit accommodations (including the undrawn amount of any letter of credit) and other financial accommodations made, issued or incurred
under the Revolving Facility Documents and Bank Product Obligations up to an aggregate maximum 

  
 -3-

 
amount equal to the sum of (x) the then outstanding Revolving Facility Obligations Cap, minus any permanent reductions of the revolving loan commitment under the Revolving Facility Documents
(other than as a result of Permitted Refinancing) and (y) $2,000,000; provided that the DIP Cap shall not exceed, (i) prior to the consummation of a Qualifying IPO, $40,000,000, and (ii) after the consummation of a Qualifying IPO,
$50,000,000. 
 “Enforcement Action” means, except as otherwise provided in the final sentence of this
definition: 
 (a) the taking by any Secured Party of any action to enforce or realize upon any Lien, including the institution
of any foreclosure proceedings or the noticing of any public or private sale pursuant to Article 9 of the Uniform Commercial Code or other applicable law; 
 (b) the exercise by any Secured Party of any right or remedy provided to a secured creditor on account of a Lien under any of the Revolving Facility Documents or the Term Loan Documents, as applicable,
under applicable law, in an Insolvency or Liquidation Proceeding or otherwise, including the election to retain any of the Collateral in satisfaction of a Lien; 
 (c) the taking of any action by any Secured Party or the exercise of any right or remedy by any Secured Party in respect of the collection on, set off against, marshaling of, injunction respecting or
foreclosure on the Collateral or the proceeds thereof; 
 (d) the appointment or the application of a Secured Party, of a
receiver, receiver and manager or interim receiver of all or part of the Collateral; 
 (e) the sale, lease, license or other
disposition of all or any portion of the Collateral by private or public sale conducted by any Secured Party or any other means at the direction of any Secured Party permissible under applicable law; 

(f) the exercise of any other right of a secured creditor under Part 6 of Article 9 of the Uniform Commercial Code or under provisions of
similar effect under other applicable law; and 
 (g) the exercise by any Secured Party of any voting rights relating to any
Capital Stock included in the Collateral. 
 For the avoidance of doubt, none of the following shall be deemed to constitute an Enforcement
Action: (i) the filing of a proof of claim in an Insolvency or Liquidation Proceeding or the seeking of adequate protection, (ii) a store closing sale, going out of business sale or other dispositions by any Grantor of any of the Revolving
Facility First Lien Collateral in accordance with the terms of the Revolving Facility Credit Agreement and the Term Loan Credit Agreement, (iii) the exercise of control over any of the Grantors’ deposit or securities accounts,
(iv) the reduction of advance rates or sub-limits by the Revolving Facility Agent and the Revolving Facility Lenders, (v) the change in eligibility criteria for components of the borrowing base under the Revolving Facility Credit Agreement
by the Revolving Facility Agent and the Revolving Facility Lenders, (vi) the imposition of reserves under the Revolving Facility Credit Agreement by the Revolving Facility Agent and the Revolving Facility Lenders, or (vii) the refusal of
the Revolving Facility Agent or the Revolving Facility Lenders to make further advances or issue additional letters of credit under the Revolving Facility Agreement. 

  
 -4-

 “First Lien Collateral Transition Date” means the Revolving Facility First
Lien Collateral Transition Date or the Term Loan First Lien Collateral Transition Date, as applicable. 
 “Grantor”
means the Company and each Subsidiary of the Company that shall have created any Lien on any of its assets or properties to secure any of the Obligations. 
 “Insolvency or Liquidation Proceeding” means: 
 (a) any case
commenced by or against Company or any other Grantor under the Bankruptcy Code or any similar federal or state law for the relief of debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or
liabilities of Company or any other Grantor, any receivership or assignment for the benefit of creditors relating to Company or any other Grantor or any similar case or proceeding relative to Company or any other Grantor or its creditors, as such,
in each case whether or not voluntary; 
 (b) any liquidation, dissolution, marshalling of assets or liabilities or other
winding up of or relating to Company or any other Grantor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; 
 (c) any proceeding seeking the appointment of any trustee, receiver, liquidator, custodian or other insolvency official with respect to Company or any other Grantor or any of its assets; 

(d) any other proceeding of any type or nature in which substantially all claims of creditors of Company or any other Grantor are
determined and any payment or distribution is or may be made on account of such claims; or 
 (e) an analogous procedure or step
in any jurisdiction. 
 “Junior Documents” means (a) in respect of the Term Loan First Lien Collateral,
the Revolving Facility Documents, and (b) in respect of the Revolving Facility First Lien Collateral, the Term Loan Documents. 
 “Junior Liens” means (a) in respect of the Revolving Facility First Lien Collateral, the Term Loan Liens on such Collateral, and (b) in respect of the Term Loan First Lien
Collateral, the Revolving Facility Liens on such Collateral. For the avoidance of doubt, Liens granted to the Revolving Facility Lenders in excess of (i) $2,000,000 in connection with Bank Product Obligations; and (ii) the Revolving
Facilities Obligations Cap in connection with Revolving Facility Obligations other than Bank Product Obligations shall, in each case, be subordinated and junior in all respects to the Term Loan Liens. 

“Junior Obligations” means (a) with respect to the Term Loan Obligations (to the extent such Obligations are
secured by the Term Loan First Lien Collateral), the Revolving Facility Obligations, and (b) with respect to Revolving Facility Obligations (to the extent such Obligations are secured by the Revolving Facility First Lien Collateral), the Term
Loan Obligations. 

  
 -5-

 “Junior Obligations Collateral” means, with respect to any Senior
Obligations, the Collateral securing the related Junior Obligations. 
 “Junior Obligations Event of Default”
means (a) with respect to the Term Loan First Lien Collateral, any Revolving Facility Event of Default, and (b) with respect to the Revolving Facility First Lien Collateral, any Term Loan Event of Default. 

“Junior Obligations Secured Parties” means (a) with respect to the Term Loan First Lien Collateral, the Revolving
Facility Secured Parties, and (b) with respect to the Revolving Facility First Lien Collateral, the Term Loan Secured Parties. 
 “Junior Obligations Security Documents” means (a) with respect to the Revolving Facility First Lien Collateral, the Term Loan Security Documents, and (b) with respect to the
Term Loan First Lien Collateral, the Revolving Facility Security Documents. 
 “Junior Representative” means
(a) with respect to the Term Loan First Lien Collateral, the Revolving Facility Agent, and (b) with respect to the Revolving Facility First Lien Collateral, the Term Loan Agent. 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any
kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or
give a security interest therein and any filing of or agreement to give any financing statement under the UCC (or equivalent statutes of any jurisdiction). 
 “Obligations” means, collectively, the Term Loan Obligations and the Revolving Facility Obligations. 
 “Officer” means with respect to any Person, the chairman of the board (if an officer), chief executive officer, president, vice president (or the equivalent thereof), chief financial
officer, treasurer or controller of such Person. 
 “Officer’s Certificate” means a certificate signed on
behalf of Company by one of its Officers. 
 “Payment in Full” means (a) with respect to the Revolving
Facility, payment in full in cash of all Revolving Facility Obligations (other than unripened or contingent indemnity obligations under the relevant Revolving Facility Documents for which no demand has been made), the termination of all commitments
to extend credit under the Revolving Facility, the termination or cash collateralization of letters of credit under the Revolving Credit Agreement, the termination or cash collateralization of Bank Product Obligations at termination value, and the
termination of the Revolving Facility Credit Agreement, and (b) with respect to the Term Loan Facility, the payment in full in cash of all the Term Loan Obligations (other than unripened or contingent indemnity obligations under the relevant
Term Loan Documents for which no demand has been made) and the termination of the Term Loan Credit Agreement. “Paid in Full” shall have the correlative meaning. 

  
 -6-

 “Permitted Second Priority Refinancing Debt” shall mean any “Permitted
Second Priority Refinancing Debt” as defined in the Term Loan Credit Agreement as in effect on the date hereof. 

“Qualifying IPO” shall mean the first bona fide underwritten primary or secondary (or combination of primary and
secondary) public offering (other than a public offering pursuant to a registration statement on Form S-8) by the Company of its common Capital Stock after the date hereof pursuant to an effective registration statement filed with the Securities and
Exchange Commission in accordance with the Securities Act. 
 “Refinance” means, in respect of any
indebtedness, to refinance, extend, renew, defease, amend, amend and restate, modify, supplement, restructure, replace, refund or repay, or to issue other indebtedness, in exchange or replacement for, such indebtedness in whole or in part;
provided that the Refinancing indebtedness is secured by Liens in respect of the same assets and properties that secured the Refinanced indebtedness prior to such Refinancing. 

“Refinanced” and “Refinancing” shall have correlative meanings. 

“Representative” means (a) in the case of any Revolving Facility Obligations, the Revolving Facility Agent, and
(b) in the case of any Term Loan Obligations, the Term Loan Agent. 
 “Revolving Facility Agent” means
Wells Fargo Bank, National Association, in its capacity as agent under the Revolving Facility Credit Agreement, together with its successors in such capacity. 
 “Revolving Facility Collateral” means all assets and properties subject to Liens created by the Revolving Facility Security Documents to secure the Revolving Facility Obligations.

 “Revolving Facility Credit Agreement” means the Second Amended and Restated Loan and Security Agreement
dated May 16, 2012 by and between the Company and Wells Fargo Bank, National Association, as amended, amended and restated, extended, renewed, restated, supplemented, refinanced, replaced or otherwise modified from time to time, with the same
or different lenders and agents. 
 “Revolving Facility Debt” means indebtedness for borrowed money, fees,
costs and letters of credit incurred under the Revolving Facility Documents in an aggregate principal amount (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of Company and its Subsidiaries
thereunder) not to exceed, as of any date of incurrence, the Revolving Facility Obligations Cap as of such date of incurrence; provided that Bank Product Obligations will not be treated as Revolving Facility Debt. 

“Revolving Facility Documents” means, collectively, the Revolving Facility Credit Agreement and the Revolving Facility
Security Documents. 
 “Revolving Facility Event of Default” means any “Event of Default,” as defined
in the Revolving Facility Credit Agreement. 

  
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 “Revolving Facility First Lien Collateral” means any and all of the
following assets and properties now owned or at any time hereafter acquired by any Grantor:(a) all Accounts; (b) all Inventory; (c) to the extent evidencing, governing, securing or otherwise related to the items referred to in the
preceding clauses (a) and (b), all (i) General Intangibles, (ii) Chattel Paper, (iii) Instruments and (iv) Documents; (d) all Payment Intangibles (including corporate tax refunds), other than any Payment Intangibles
that represent tax refunds in respect of or otherwise relate to real property, Fixtures or Equipment; (e) all payments received from the Grantors’ credit card clearinghouses and processors or otherwise in respect of all credit card charges
for sales of Inventory by the Grantors; (f) all collection accounts, deposit accounts and commodity accounts and any cash or other assets in any such accounts; (g) to the extent relating to any of the items referred to in the preceding
clauses (a) through (f) constituting Revolving Facility First Lien Collateral, all Supporting Obligations and Letter-of-Credit Rights; (h) all books and records related to the foregoing; and (i) all Products and Proceeds of any
and all of the foregoing in whatever form received, including proceeds of insurance policies related to Inventory of any Grantor and business interruption insurance. 
 “Revolving Facility First Lien Collateral Transition Date” means the earlier of (a) the date on which all the Revolving Facility Obligations shall have been Paid in Full, and
(b) the date on which all Revolving Facility First Lien Collateral shall have been released from the Liens created under the Revolving Facility Documents. 
 “Revolving Facility Lenders” means the Lender or Lenders under and as defined in the Revolving Facility Credit Agreement. 

“Revolving Facility Liens” means the Liens on the Revolving Facility Collateral created under Revolving Facility
Security Documents to secure the Revolving Facility Obligations. 
 “Revolving Facility Obligations” means
“Obligations” as defined in the Revolving Facility Credit Agreement (as defined on the date hereof). 

“Revolving Facility Obligations Cap” means as of any date of incurrence of any Revolving Facility Debt, an aggregate
principal amount not to exceed the greater of (i) the amount of the Borrowing Base (as set forth on an Officer’s Certificate or otherwise reasonably determined by the Revolving Facility Agent) as of such date of incurrence of Revolving
Facility Debt, and (ii) (x) prior to the consummation of a Qualifying IPO, $40,000,000 and (y) after the consummation of a Qualifying IPO, $50,000,000; provided that (x) the Revolving Facility Obligations Cap may be reduced at
any time by an amendment to this Agreement executed by the Revolving Facility Agent and Company without the consent of the Term Loan Agent and (y) the Revolving Facility Agent and the holders of Revolving Facility Obligations, acting in good
faith, shall be entitled to rely conclusively on an Officer’s Certificate of Company representing that any incurrence of any Revolving Facility Debt does not exceed the Revolving Facility Obligations Cap. 

“Revolving Facility Required Parties” means, to the extent applicable, “Required Lenders” as it may, in the
future, be defined under the Revolving Facility Credit Agreement, and in the absence of such future definition shall mean Wells Fargo Bank, National Association. 

  
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 “Revolving Facility Secured Parties” means, at any time, the Revolving
Facility Agent, each Revolving Facility Lender and each other holder of, or obligee in respect of, any Revolving Facility Obligations outstanding at such time. 
 “Revolving Facility Security Documents” means, collectively, the Revolving Facility Credit Agreement, and any other documents now existing or entered into after the date hereof that
create Liens on any assets or properties of the Company or any of the Company’s Subsidiaries to secure any Revolving Facility Obligations. 
 “Secured Parties” means, collectively, the Term Loan Secured Parties and the Revolving Facility Secured Parties. 
 “Security Documents” means, collectively, the Term Loan Security Documents and the Revolving Facility Security Documents. 

“Senior Liens” means (a) in respect of the Revolving Facility First Lien Collateral, the Revolving Facility Liens
on such Collateral, and (b) in respect of the Term Loan First Lien Collateral, the Term Loan Liens on such Collateral. 

“Senior Obligations” means (a) with respect to the Revolving Facility Obligations (to the extent such Obligations
are secured by the Term Loan First Lien Collateral), the Term Loan Obligations, and (b) with respect to Term Loan Obligations (to the extent such Obligations are secured by the Revolving Facility First Lien Collateral), the Revolving Facility
Obligations (to the extent not in excess of the Revolving Facility Obligations Cap and Bank Product Obligations Cap, as applicable). 
 “Senior Obligations Collateral” means (a) with respect to the Term Loan Obligations, the Revolving Facility First Lien Collateral, and (b) with respect to the Revolving Facility
Obligations, the Term Loan First Lien Collateral. 
 “Senior Obligations Required Parties” means (a) with
respect to the Revolving Facility First Lien Collateral, the Revolving Facility Required Parties, and (b) with respect to the Term Loan First Lien Collateral, the Term Loan Required Parties. 

“Senior Obligations Secured Parties” means (a) with respect to the Term Loan First Lien Collateral, the Term Loan
Secured Parties, and (b) with respect to the Revolving Facility First Lien Collateral, the Revolving Facility Secured Parties. 
 “Senior Obligations Security Documents” means (a) with respect to the Revolving Facility First Lien Collateral, the Revolving Facility Security Documents, and (b) with respect
to the Term Loan First Lien Collateral, the Term Loan Security Documents. 
 “Senior Representative” means
(a) with respect to the Term Loan First Lien Collateral, the Term Loan Agent, and (b) with respect to the Revolving Facility First Lien Collateral, the Revolving Facility Agent. 

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association,
joint venture or other business entity of which more than 50% of 

  
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the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether
directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person of a combination thereof; provided, in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying
share” of the former Person shall be deemed to be outstanding. 
 “Term Loan Agent” means Goldman Sachs
Bank USA, in its capacity as collateral agent for the Term Loan Secured Parties, together with its successors in such capacity. 

“Term Loan Collateral” means all assets and properties subject to Liens created by the Term Loan Security Documents to
secure the Term Loan Obligations. 
 “Term Loan Credit Agreement” means the Credit Agreement dated as of
May 16, 2012, among the Company, the Subsidiaries of the Company from time to time party thereto, the Term Loan Lenders, the Term Loan Agent and the other agents party thereto, as amended, amended and restated, extended, renewed, restated,
supplemented, refinanced, replaced or otherwise modified from time to time, with the same or different lenders and agents. 

“Term Loan Documents” means the Term Loan Credit Agreement and the Term Loan Security Documents. 

“Term Loan Event of Default” means any “Event of Default,” as defined in the Term Loan Credit Agreement.

 “Term Loan First Lien Collateral” means any and all of the following assets and properties now owned or at
any time hereafter acquired by any Grantor: (a) all real property; (b) all machinery, Equipment and Fixtures; (c) all books and records relating to machinery, Equipment and Fixtures; (d) all General Intangibles, Chattel Paper,
Documents, Instruments, or supporting obligations which represent proceeds of or in respect of the Term Loan First Lien Collateral (other than General Intangibles, Chattel Paper, Instruments and Documents that are Revolving Facility First Lien
Collateral) described in clauses (a), (b) and (c) above; (e) all Payment Intangibles that represent tax refunds in respect of or otherwise relate to real property, Fixtures or Equipment; (f) all intercompany indebtedness of
Borrower and its Subsidiaries; (g) all patents and patent license rights, trademarks and trademark license rights, copyrights and copyright license rights, trade secrets and processes and other Intellectual Property (as defined in the Term Loan
Security Agreement); (h) Commercial Tort Claims (as defined in the Term Loan Security Agreement) to the extent otherwise related to any Term Loan First Lien Collateral; (i) all contract rights of the Company and its Subsidiaries under
service or maintenance agreements, warranties directly relating to the assets described in the preceding clause (a) and (b); (j) hedging transactions permissible and pursuant to the Term Loan Security Agreement or Term Loan Credit
Agreement; (k) all permits and licenses related to any of the foregoing (including any permits or licenses related to the ownership or operation of real property, Fixtures or Equipment of any Grantor); (l) all of the Capital Stock of any
Subsidiary of the Company excluding any of the outstanding Capital Stock of a Foreign Subsidiary (as defined in the Term Loan Credit 

  
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Agreement) in excess of 65% of the voting power of all classes of Capital Stock of such Controlled Foreign Corporation entitled to vote; provided that immediately upon the amendment of the
Internal Revenue Code to allow the pledge of a greater percentage of the voting power of Capital Stock in a Foreign Subsidiary without adverse tax consequences, the Term Loan First Lien Collateral shall include, and the security interest granted by
each Grantor shall attach to, such greater percentage of Capital Stock of each Foreign Subsidiary; (m) all proceeds (including, without limitation, insurance and condemnation Proceeds (other than any such Proceeds that are Revolving First Lien
Collateral)) and products of the property and assets described in the foregoing clauses (a) through (l); and (n) all other Collateral not constituting Revolving Facility First Lien Collateral. 

“Term Loan First Lien Collateral Transition Date” means the earlier of (a) the date on which all the Term Loan
Obligations shall have been Paid in Full and (b) the date on which all Term Loan First Lien Collateral shall have been released from the Liens created under the Term Loan Documents. 

“Term Loan Lenders” means the Lenders under and as defined in the Term Loan Credit Agreement. 

“Term Loan Liens” means the Liens on the Term Loan Collateral created under the Term Loan Security Documents to secure
the Term Loan Obligations. 
 “Term Loan Mortgages” means any mortgage, deed of trust or other agreement which
conveys or evidences a Lien in favor of the Term Loan Agent, for the benefit of the Term Loan Agent and the Term Loan Secured Parties, on real property of a Grantor, including any amendment, restatement, modification or supplement thereto, including
any replacement in connection with a refinancing of the Term Loan Credit Agreement. 
 “Term Loan Obligations”
means “Obligations” as defined in the Term Loan Credit Agreement. 
 “Term Loan Required Parties”
means the “Required Lenders,” as such term is defined in the Term Loan Credit Agreement. 
 “Term Loan
Secured Parties” means the “Secured Parties” as such term is defined in the Term Loan Credit Agreement. 

“Term Loan Security Agreement” means the Security Agreement dated as of May 16, 2012, among the Company, the
Subsidiaries of the Company from time to time party thereto and the Term Loan Agent, in its capacity as collateral agent, as amended, amended and restated, extended, renewed, restated, supplemented or otherwise modified from time to time, including
any amendment, restatement, modification or supplement thereto, including any replacement in connection with a refinancing of the Term Loan Credit Agreement. 
 “Term Loan Security Documents” means the Term Loan Security Agreement, the Term Loan Mortgages, and any other documents now existing or entered into after the date hereof that create
Liens on any assets or properties of the Company or any of the Company’s Subsidiaries to secure any Term Loan Obligations. 

  
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 “UCC” means the Uniform Commercial Code as from time to time in effect in
the State of New York. 
 ARTICLE 2 
 SUBORDINATION OF JUNIOR LIENS; CERTAIN AGREEMENTS 

Section 2.01. Subordination of Junior Liens. 
 (a) The grant of the Revolving Facility Liens pursuant to the Revolving Facility Security Documents and Term Loan Liens pursuant to the Term Loan Security Documents creates two separate and distinct Liens
on the Collateral. 
 (b) All Junior Liens in respect of any Collateral are expressly subordinated and made junior in right,
priority, operation and effect to any and all Senior Liens in respect of such Collateral, notwithstanding anything contained in this Agreement, the Term Loan Documents, the Revolving Facility Documents or any other agreement or instrument to the
contrary, and irrespective of the time, order or method of creation, attachment or perfection of such Junior Liens and such Senior Liens or any failure, defect or deficiency or alleged failure, defect or deficiency in any of the foregoing.

 (c) It is acknowledged that, subject, in the case of the Revolving Facility Debt and the Bank Product Obligations, to the
Revolving Facility Obligations Cap and Bank Product Obligations Cap, as applicable, (i) the aggregate amount of the Senior Obligations may, subject to the limitations set forth in the Term Loan Credit Agreement and the Revolving Facility Credit
Agreement, be increased from time to time, (ii) a portion of the Senior Obligations consists or may consist of indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be
increased or reduced and subsequently reborrowed, and (iii) the Senior Obligations may be increased, extended, renewed, replaced, restated, supplemented, restructured, repaid, refunded, Refinanced or otherwise amended or modified from time to
time, all without affecting the subordination hereunder of the Junior Liens securing the Junior Obligations or the provisions of this Agreement defining the relative rights of the Revolving Facility Secured Parties and the Term Loan Secured Parties.
The lien priorities provided for herein shall not be altered or otherwise affected by any amendment, modification, supplement, extension, increase, replacement, renewal, restatement or refinancing of either the Junior Obligations (or any part
thereof) or the Senior Obligations (or any part thereof), by the release of any Collateral or guarantees securing any Senior Obligations or by any action that any Representative or Secured Party may take or fail to take in respect of any Collateral.

 (d) To the extent the aggregate amount of Revolving Facility Debt and Bank Product Obligations exceed the Revolving Facility
Obligations Cap or Bank Product Obligations Cap, as applicable, (i) first, Bank Product Obligations will be expressly subordinated and made junior in right, priority, operation and effect to any and all Term Loan Obligations in respect of such
Collateral until the aggregate amount of Revolving Facility Obligations senior in any respect to the Term Loan Obligations is equal to the Revolving Facility Obligations Cap and (ii) second, any Revolving Facility Debt will be expressly
subordinated and made junior in right, priority, operation and effect to any and all Term Loan Obligations secured by such Collateral until the aggregate amount of Revolving Facility Obligations senior in any respect to the Term Loan

  
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Obligations is equal to the Revolving Facility Obligations Cap. Additionally, at no time shall the amount of Bank Product Obligations secured by Liens senior to the Term Loan Liens be greater
than $2,000,000 (the “Bank Product Obligations Cap”). 
 Section 2.02. No Action With Respect to Junior
Obligations Collateral Subject to Senior Liens. (a) Subject to Sections 2.04 and 2.13, no Junior Representative (in such capacity) or other Junior Obligations Secured Party (in such capacity) shall commence or instruct any Junior
Representative to commence any Enforcement Action in respect of, any Junior Obligations Collateral under any Junior Obligations Security Document, applicable law or otherwise, at any time when such Junior Obligations Collateral shall be subject to
any Senior Lien and any Senior Obligations secured by such Senior Lien shall remain outstanding or any commitment to extend credit that would constitute Senior Obligations secured by such Senior Lien shall remain in effect, it being agreed that only
the Senior Representative, acting in accordance with the applicable Senior Obligations Security Documents, shall be entitled to take any such actions or exercise any such remedies. Notwithstanding the foregoing, any Junior Representative may,
subject to Section 2.05, take all such actions as it shall deem necessary to (i) perfect or continue the perfection of its Junior Liens or (ii) to create, preserve or protect (but not to enforce or realize) the Junior Liens on any
Collateral. 
 (b) The parties hereto acknowledge and agree that it is their intention that the Collateral securing the Senior
Obligations be identical to the Collateral securing the Junior Obligations. In furtherance of the foregoing, the parties hereto agree that, so long as both Senior Obligations and Junior Obligations are outstanding, none of the Grantors shall, or
shall permit any of its Subsidiaries to, (i) grant or permit any additional Liens on any asset to secure any Junior Obligation unless it has granted, or concurrently therewith grants, a Lien on such asset to secure the Senior Obligations or
(ii) grant or permit any additional Liens on any asset to secure any Senior Obligations unless it has granted, or concurrently therewith grants, a Lien on such asset to secure the Junior Obligations, with each such Lien to be subject to the
provisions of this Agreement. 
 Section 2.03. No Duties of Senior Representative. Each Junior Obligations Secured Party
acknowledges and agrees that neither the Senior Representative nor any other Senior Obligations Secured Party shall have any duties or other obligations to such Junior Obligations Secured Party with respect to any Senior Obligations Collateral,
other than to transfer to the Junior Representative any proceeds of any such Collateral that constitutes Junior Obligations Collateral remaining in its possession following any sale, transfer or other disposition of such Collateral, the Payment in
Full of the Senior Obligations secured thereby, or, if the Senior Representative shall be in possession of all or any part of such Collateral after such payment and satisfaction in full in cash and termination, such Collateral or any part thereof
remaining, in each case without representation or warranty on the part of the Senior Representative or any Senior Obligations Secured Party. In furtherance of the foregoing, each Junior Obligations Secured Party acknowledges and agrees that until
the Senior Obligations secured by any Collateral shall have been Paid in Full, the Senior Representative shall be entitled, for the benefit of the holders of such Senior Obligations, to sell, transfer or otherwise dispose of or deal with such
Collateral as provided herein and in the Senior Obligations Security Documents without regard to any Junior Lien or any rights to which the holders of the Junior Obligations would otherwise be entitled as a result of such Junior Lien. Without
limiting the foregoing, each Junior Obligations Secured 

  
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Party agrees that neither the Senior Representative nor any other Senior Obligations Secured Party shall have any duty or obligation first to marshal or realize upon any type of Collateral (or
any other Collateral securing the Senior Obligations), or to sell, dispose of or otherwise liquidate all or any portion of the Collateral (or any other Collateral securing the Senior Obligations), in any manner that would maximize the return to the
Junior Obligations Secured Parties, notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of proceeds actually received by the Junior Obligations Secured Parties from such
realization, sale, disposition or liquidation. Following the associated First Lien Collateral Transition Date, the Junior Obligations Secured Parties may under the UCC or otherwise, assert their rights to any proceeds remaining following a sale,
disposition or other liquidation of Collateral by, or on behalf of the Senior Obligations Secured Parties. Each of the Junior Obligations Secured Parties waives any claim such Junior Obligations Secured Party may now or hereafter have against the
Senior Representative or any other Senior Obligations Secured Party (or their representatives) arising out of (i) any actions which the Senior Representative or the Senior Obligations Secured Parties take or omit to take (including, actions
with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of the Collateral and actions with respect to the
collection of any claim for all or any part of the Senior Obligations from any account debtor, guarantor or any other party) in accordance with the Senior Obligations Security Documents or any other agreement related thereto or to the collection of
the Senior Obligations or the valuation, use, protection or release of any security for the Senior Obligations, (ii) any election by the Senior Representative or any Senior Obligations Secured Parties, in any proceeding instituted under the
Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code and/or (iii) any borrowing of, or grant of a security interest or administrative expense priority under Section 364 of the Bankruptcy Code to, the Company
or any of its Subsidiaries as debtor-in-possession. 
 Section 2.04. No Interference; Application of Proceeds; Payment Over;
Reinstatement. (a) Each Junior Obligations Secured Party acknowledges and agrees that, in its capacity as a Junior Obligations Secured Party, (i) it will not take or cause to be taken any action, the purpose or effect of which is, or
could be, to make any Junior Lien pari passu with, or give such Junior Obligations Secured Party any preference or priority relative to, any Senior Lien with respect to the Collateral subject to such Junior Lien or any part thereof, (ii) it
will not contest, challenge or question in any proceeding the validity or enforceability of any Senior Obligations or Senior Obligations Security Document, or the validity, attachment, perfection or priority of any Senior Lien, or the validity or
enforceability of the priorities, rights or duties established by, or any provisions of, this Agreement, (iii) no covenant, agreement or restriction contained in the Senior Obligations Security Documents, any Revolving Facility Document or Term
Loan Document, as applicable, shall be deemed to restrict in any way the rights and remedies of a Senior Representative or any holder of Senior Obligations with respect to the Senior Obligations (subject in the case of the Revolving Facility Debt
and Bank Product Obligations, to the Revolving Facility Obligations Cap), (iv) it will not take any action, the purpose or intent of which is to interfere, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale,
transfer or other disposition of any Senior Obligations Collateral subject to any Junior Lien by any Senior Obligations Secured Party or any Senior Representative acting on their behalf, (v) it shall have no right to (A) direct any Senior
Representative or any holder of Senior Obligations to exercise any right, remedy or power with respect to the Collateral subject 

  
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to any Junior Lien or (B) consent to the exercise by any Senior Representative or any other Senior Obligations Secured Party of any right, remedy or power with respect to the Collateral
subject to any Junior Lien, (vi) it will not institute any suit or assert in any suit, bankruptcy, insolvency or other proceeding any claim against any Senior Representative or other Senior Obligations Secured Party seeking damages from or
other relief by way of specific performance, instructions or otherwise with respect to, and neither any Senior Representative nor any other Senior Obligations Secured Party shall be liable for, any action taken or omitted to be taken by such Senior
Representative or other Senior Obligations Secured Party in compliance with this Agreement with respect to any Collateral securing any Senior Obligations that is subject to any Junior Lien, (vii) it will not commence or join with any other
party to commence an Insolvency or Liquidation Proceeding against Company or any other Grantor, (viii) it will not seek, and hereby waives any right, to have any Senior Obligations Collateral subject to any Junior Lien or any part thereof
marshaled upon any foreclosure or other disposition of such Collateral, and (ix) it will not attempt, directly or indirectly, whether by judicial proceedings or otherwise, to challenge the enforceability of any provision of this Agreement.

 (b) Prior to the Revolving Facility First Lien Collateral Transition Date, whether or not any Insolvency or Liquidation
Proceeding by or against the Company or any other Grantor has been commenced, all Revolving Facility First Lien Collateral or proceeds thereof received in connection with the sale or other disposition of, or collection on, such Collateral upon the
exercise of remedies by the Revolving Facility Agent or Revolving Facility Secured Parties, shall be applied by the Revolving Facility Agent to the Revolving Facility Obligations in such order as specified in the relevant Revolving Facility
Documents (subject to the terms of this Agreement, including those with respect to Bank Product Obligations). After the Revolving Facility First Lien Collateral Transition Date, the Revolving Facility Agent shall deliver to the Term Loan Agent any
Revolving Facility First Lien Collateral and proceeds of such Collateral held by it in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct, to be applied by the Term Loan Agent in
such order as specified in the Term Loan Security Agreement and/or the other relevant Term Loan Documents. The Revolving Facility Agent shall provide the Term Loan Agent and the Company with notice of a pending Revolving Facility First Lien
Collateral Transition Date within five (5) Business Days of the Revolving Facility Agent becoming aware of the pendency of such date in order that the Term Loan Agent may make the necessary preparations for the transfer of any Collateral.

 (c) Prior to the Term Loan First Lien Collateral Transition Date, whether or not any Insolvency or Liquidation Proceeding by
or against the Company or any other Grantor has been commenced, all Term Loan First Lien Collateral or proceeds thereof received in connection with the sale or other disposition of, or collection on, such Collateral upon the exercise of remedies by
the Term Loan Agent or the Term Loan Secured Parties, shall be applied by the Term Loan Agent to the Term Loan Obligations in such order as specified in the Term Loan Security Agreement and/or the other relevant Term Loan Documents. After the Term
Loan First Lien Collateral Transition Date, the Term Loan Agent shall deliver to the Revolving Facility Agent any Term Loan First Lien Collateral and proceeds of such Collateral held by it in the same form as received, with any necessary
endorsements or as a court of competent jurisdiction may otherwise direct, to be applied by the Revolving Facility Agent in such order as specified in the relevant Revolving Facility Documents. The Term Loan Agent shall provide the Revolving
Facility Agent and the Company with notice of a pending Term Loan First Lien Collateral 

  
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Transition Date within five (5) Business Days of the Term Loan Agent becoming aware of the pendency of such date in order that the Revolving Facility Agent may make the necessary
preparations for the transfer of any Collateral. 
 (d) The Junior Representative and each other Junior Obligations Secured
Party hereby agrees that if it shall obtain possession of any Senior Obligations Collateral or shall realize any proceeds or payment in respect of any such Collateral, pursuant to any Junior Obligations Security Document or by the exercise of any
rights available to it under applicable law or in any Insolvency or Liquidation Proceedings or through any other exercise of remedies, at any time when any Senior Obligations secured or intended to be secured by such Collateral shall remain
outstanding or any commitment to extend credit that would constitute Senior Obligations secured or intended to be secured by such Senior Lien shall remain in effect, then it shall hold such Collateral, proceeds or payment in trust for the Senior
Obligations Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the Senior Representative reasonably promptly after obtaining actual knowledge or notice from the Senior Obligations Secured Parties that it has
possession of such Senior Obligations Collateral or proceeds or payments in respect thereof. Each Junior Obligations Secured Party agrees that if, at any time, it obtains actual knowledge or receives notice that all or part of any payment with
respect to any Senior Obligations previously made shall be rescinded for any reason whatsoever, such Junior Obligations Secured Party shall promptly pay over to the Senior Representative any payment received by it in respect of any Collateral
subject to any Senior Lien securing such Senior Obligations and shall promptly turn any Collateral subject to any such Senior Lien then held by it over to the Senior Representative, and the provisions set forth in this Agreement shall be reinstated
as if such payment had not been made, until the payment and satisfaction in full in cash of the Senior Obligations. All Junior Liens will remain attached to and enforceable against all proceeds so held or remitted, but shall be otherwise subject to
the terms of this Agreement. 
 Section 2.05. Automatic Release of Junior Liens. The Junior Representative and each other
Junior Obligations Secured Party agrees that any Junior Lien on any Senior Obligations Collateral shall terminate and be released automatically and without further action if the applicable Senior Liens on such Senior Obligations Collateral are
released and such release (a) is in connection with the sale, transfer or other disposition of such Senior Obligations Collateral subject to such Junior Lien, so long as such sale, transfer or other disposition is then permitted by the Junior
Documents, (b) occurs in connection with the foreclosure upon or other exercise of rights and remedies with respect to such Senior Obligations Collateral (including any sale or other disposition in connection therewith by any Grantor at the
direction or with the consent of the Senior Representative at any time that a Senior Obligations Event of Default has occurred and is continuing) or (c) shall have been approved by the Senior Obligations Required Parties, so long as no Junior
Obligations Event of Default shall have occurred and be continuing at such time; provided that such Junior Lien shall remain in place with respect to any proceeds of a sale, transfer or other disposition pursuant to this Section 2.05
that remain after the applicable First Lien Collateral Transition Date. The Junior Representative agrees to execute and deliver all such releases and other instruments as shall reasonably be requested by the Senior Representative or the Company to
evidence and confirm any release of Junior Obligations Collateral provided for in this Section, but shall be otherwise subject to the terms of this Agreement. 

  
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 Section 2.06. Certain Agreements With Respect to Insolvency or Liquidation
Proceedings. 
 (a) This Agreement shall continue in full force and effect notwithstanding the commencement of any
Insolvency or Liquidation Proceeding by or against the Company or any other Grantor. 
 (b) If the Company or any of its
Subsidiaries shall become subject to an Insolvency or Liquidation Proceeding, and shall, as debtor(s)-in-possession, move for approval of financing (“DIP Financing”) to be provided by one or more lenders (the “DIP
Lenders”) under Section 364 of the Bankruptcy Code or the use of cash collateral with the consent of the DIP Lenders under Section 363 of the Bankruptcy Code, each Term Loan Secured Party agrees that it will raise no objection or
opposition (or support any Person in objecting or opposing) to any such financing or to the Liens securing the same (“DIP Financing Liens”) or to any use of cash collateral that constitutes Revolving Facility First Lien Collateral
(“DIP Cash Collateral”), unless the Revolving Facility Agent shall then oppose or object to such DIP Financing or such DIP Financing Liens or use of cash collateral (and, to the extent that such DIP Financing Liens are senior to, or
rank pari passu with, the Revolving Facility Liens in respect of the Revolving Facility First Lien Collateral, the Term Loan Agent will, for itself and on behalf of the other Term Loan Secured Parties, subordinate the Term Loan Liens in
respect of the Revolving Facility First Lien Collateral to the Revolving Facility Liens and the DIP Financing Liens), so long as such DIP Financing and the use of DIP Cash Collateral meet the following requirements: (i) the Term Loan Secured
Parties retain a Lien on the Collateral and, with respect to all the Term Loan First Lien Collateral, including proceeds thereof arising after the commencement of such proceeding, in each case, with the same priority relative to the priority of the
Liens of the Revolving Facility Secured Parties as existed prior to the commencement of the case under the Bankruptcy Code; (ii) to the extent that the Revolving Facility Agent is granted adequate protection in the form of a Lien, the Term Loan
Agent is permitted to seek a Lien (without objection from the Revolving Facility Agent or any holder of the Revolving Facility Obligations) on Collateral arising after the commencement of the Insolvency or Liquidation Proceeding, (iii) the
terms of the DIP Cash Collateral use or the DIP Financing require that any Lien on the Term Loan First Lien Collateral to secure such DIP Financing is subordinate to the Liens securing the Term Loan Obligations with respect thereto, (iv) the
terms of such DIP Financing or use of DIP Cash Collateral do not require Company or any Grantor to seek approval for any plan of reorganization that is inconsistent with this Agreement and (v) the aggregate principal amount of such DIP
Financing does not exceed the DIP Cap. The foregoing shall not prevent any Term Loan Lender from proposing any other DIP Financing to the Borrower or any Grantor or to a court of competent jurisdiction; provided, however, that no such proposal
will be made unless it unconditionally provides that the Revolving Facility Obligations shall be repaid in full upon the effective date of such proposed DIP Financing. 
 (c) Until the Revolving Facility First Lien Collateral Transition Date has occurred, the Term Loan Agent, for itself and on behalf of the other Term Loan Secured Parties, agrees that, in the event of any
Insolvency or Liquidation Proceeding by or against the Company or any other Grantor, the Term Loan Secured Parties will not object or oppose (or support any Person in objecting or opposing) a motion for any sale, transfer or other disposition of any
Revolving Facility First Lien Collateral free and clear of the Liens of Term Loan Agent and the other Term 

  
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Loan Secured Parties or other claims under Sections 363, 365 or 1129 of the Bankruptcy Code, or any other Federal, state or foreign bankruptcy, insolvency, receivership or similar law, and shall
be deemed to have consented to any such sale, transfer or other disposition of any Revolving Facility First Lien Collateral under Section 363(f) of the Bankruptcy Code that has been consented to by the Revolving Facility Agent; provided,
that, the proceeds of such sale, transfer or other disposition of any Collateral to be applied to the Revolving Facility Obligations or the Term Loan Obligations are applied in accordance with Section 2.04. 

(d) Until the Term Loan First Lien Collateral Transition Date has occurred, the Revolving Facility Agent, for itself and on behalf of the
other Revolving Facility Secured Parties, agrees that, in the event of any Insolvency or Liquidation Proceeding by or against the Company or any other Grantor, the Revolving Facility Secured Parties will not object or oppose (or support any Person
in objecting or opposing) a motion for any sale, transfer or other disposition of any Term Loan Facility First Lien Collateral free and clear of the Liens of Revolving Facility Agent and the other Revolving Facility Secured Parties or other claims
under Sections 363, 365 or 1129 of the Bankruptcy Code, or any other Federal, state or foreign bankruptcy, insolvency, receivership or similar law, and shall be deemed to have consented to any such sale, transfer or other disposition of any
Revolving Facility First Lien Collateral under Section 363(f) of the Bankruptcy Code that has been consented to by the Term Loan Agent; provided, that, the proceeds of such sale, transfer or other disposition of any Collateral to
be applied to the Term Loan Facility Obligations or the Revolving Facility Obligations are applied in accordance with Section 2.04. 
 (e) Without limiting the generality of the foregoing, the Junior Representative or any Junior Obligations Secured Party for whom it is acting shall not obtain or seek to obtain a Lien on any Senior
Obligations Collateral that would be priming or pari passu with respect to any Senior Obligation in any Insolvency or Liquidation Proceeding by or against the Company or any other Grantor or object to the treatment under a plan of
reorganization or arrangement of the claims with respect to the Obligations owing to the Senior Representative and the Secured Parties for whom it is acting to the extent that such treatment provides for payments or distributions in respect of the
Collateral in accordance with the priorities of the right to payment and Liens set forth in this Agreement. 
 Section 2.07.
Adequate Protection. 
 (a) In any Insolvency or Liquidation Proceeding: 

(i) if any or all of the Revolving Facility Secured Parties are granted adequate protection in the form of additional collateral in
connection with any use of DIP Cash Collateral or a DIP Financing and such additional collateral is the type of asset or property that would constitute Revolving Facility First Lien Collateral, then (A) the Term Loan Agent, on behalf of itself
or any of the Term Loan Secured Parties, may seek or request adequate protection in the form of a Lien on such additional collateral, which Lien will be subordinated to the Liens securing the Revolving Facility Obligations and such use of DIP Cash
Collateral or DIP Financing (and all obligations relating thereto) on the same basis as the other Liens on Revolving Facility First Lien Collateral securing the Term Loan Obligations are so subordinated to the Liens on Revolving Facility First Lien
Collateral securing the Revolving Facility Obligations 

  
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under this Agreement and (B) subject to clause (ii) below, the Revolving Facility Agent, on behalf of itself and the other Revolving Facility Secured Parties, agrees that none of them
shall contest (or support any other Person contesting) (1) any request by the Term Loan Agent or any other Term Loan Secured Party for adequate protection pursuant to the preceding clause (A) or (2) any objection to any motion,
relief, action or proceeding in support of a request for adequate protection pursuant to the preceding clause (A); and 
 (ii)
in the event the Junior Representative, on behalf of itself or any other Junior Obligations Secured Parties, seeks or requests adequate protection in respect of Junior Obligations and such adequate protection is granted in the form of additional
collateral of a type of asset or property that would constitute Senior Obligations Collateral, then the Junior Representative, on behalf of itself and the other Junior Obligations Secured Parties, agrees that the Senior Representative shall also be
granted a Lien on such additional collateral as security for the Senior Obligations and that any Lien on such additional collateral securing the applicable Junior Obligations shall be subordinated to the Lien on such collateral securing the Senior
Obligations (and all obligations relating thereto) and to any other Liens granted to the Senior Obligations Secured Parties as adequate protection on the same basis as the other Liens on Senior Obligations Collateral securing the Junior Obligations
are so subordinated to the Liens on Senior Obligations Collateral securing the Senior Obligations under this Agreement. 
 (b)
Except as otherwise provided in this Section 2.07, no Junior Obligations Secured Party may seek or assert any right it may have for adequate protection of its interest in the Senior Obligations Collateral without the prior written consent of
the Senior Representative. 
 Section 2.08. Reinstatement. In the event that any of the Senior Obligations shall be paid
in full in cash and such payment or any part thereof shall subsequently, for whatever reason (including an order or judgment for disgorgement of a preference under the Bankruptcy Code, or any similar law, or the settlement of any claim in respect
thereof), be required to be returned or repaid, the terms and conditions of this Article 2 shall be fully applicable thereto until all such Senior Obligations shall again have been paid in full in cash. 

Section 2.09. Entry Upon Premises by the Revolving Facility Agent. (a) If the Revolving Facility Agent takes any Enforcement
Action with respect to the Revolving Facility First Lien Collateral, the Term Loan Secured Parties (i) shall reasonably cooperate with the Revolving Facility Agent in its efforts to enforce its security interest in the Revolving Facility First
Lien Collateral and to finish any work-in­process and assemble the Revolving Facility First Lien Collateral, (ii) shall not take any action to hinder or restrict in any respect the Revolving Facility Agent from enforcing its security
interest in the Revolving Facility First Lien Collateral or from finishing any work-in-process or assembling the Revolving Facility First Lien Collateral, and (iii) shall permit the Revolving Facility Agent, its employees, agents, advisers and
representatives, at the sole cost and expense of the Revolving Facility Secured Parties, to enter upon and use the Term Loan First Lien Collateral (including (x) equipment, processors, computers and other machinery related to the storage or
processing of records, documents or files and (y) intellectual property and general intangibles), for a period not to exceed 120 days after the taking of such Enforcement Action, for purposes of (A) assembling and storing the Revolving
Facility First Lien Collateral and completing the processing of and turning into finished goods or otherwise preparing for sale any Revolving Facility First Lien Collateral consisting of work-in-process, (B)

  
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selling any or all of the Revolving Facility First Lien Collateral located on such Term Loan First Lien Collateral, whether in bulk, in lots or to customers in the ordinary course of business or
otherwise (by public auction, private sale or a “store closing”, “going out of business” or similar sale, whether in bulk, in lots or to customers in the ordinary course of business or otherwise and which sale may include
augmented Inventory of the same type sold in the Company’s and the Subsidiaries’ business), (C) removing any or all of the Revolving Facility First Lien Collateral located on such Term Loan First Lien Collateral, and/or
(D) taking reasonable actions to protect, secure, and otherwise enforce the rights of the Revolving Facility Secured Parties in and to the Revolving Facility First Lien Collateral; provided, however, nothing contained in this
Agreement shall restrict the rights of the Term Loan Agent from selling, assigning or otherwise transferring any Term Loan First Lien Collateral prior to the expiration of such 120 day period if the purchaser, assignee or transferee thereof agrees
to be bound by the provisions of this Section. If any stay or other order prohibiting the exercise of remedies with respect to the Revolving Facility First Lien Collateral has been entered by a court of competent jurisdiction or otherwise arises by
operation of the Bankruptcy Code, such 120 day period shall be tolled during the pendency of any such stay or other order. If the Revolving Facility Agent conducts a public auction or private sale of the Revolving Facility First Lien Collateral at
any of the real property included within the Term Loan First Lien Collateral, the Revolving Facility Agent shall provide the Term Loan Agent with reasonable notice and use reasonable efforts to hold such auction or sale in a manner which would not
unduly disrupt the Term Loan Agent’s use of such real property during such time period. 
 (b) During the period of actual
occupation, use and/or control by the Revolving Facility Secured Parties or their agents or representatives of any Term Loan First Lien Collateral, the Revolving Facility Secured Parties shall (i) be responsible for the ordinary course
third-party expenses related thereto for such period of actual occupation, use or control, including costs with respect to heat, electricity, water, insurance and real property taxes with respect to that portion of any premises so used or occupied,
(ii) use the Term Loan First Lien Collateral in accordance with applicable law, and (iii) be obligated to repair at their expense any physical damage to such Term Loan First Lien Collateral, or other assets or property resulting from such
occupancy, use or control, and to leave such Term Loan First Lien Collateral or other assets or property in substantially the same condition as it was at the commencement of such occupancy, use or control, ordinary wear and tear excepted. The
Revolving Facility Secured Parties jointly and severally agree to pay, indemnify and hold the Term Loan Agent and its respective officers, directors, employees and agents harmless from and against any liability, cost, expense, loss or damages,
including legal fees and expenses, resulting from the negligence, willful misconduct or bad faith of the Revolving Facility Agent or any of its agents, representatives or invitees in its, or their, operation of such facilities. In the event, and
only in the event, that in connection with its use of some or all of the premises constituting Term Loan First Lien Collateral, the Revolving Facility Agent requires the services of any employees of Company or any of their subsidiaries, the
Revolving Facility Agent shall pay directly to any such employees the appropriate, allocated wages of such employees, if any, during the time periods that the Revolving Facility Agent requires their services. 

Notwithstanding the foregoing, the Revolving Facility Secured Parties shall not have any liability to the Term Loan Secured Parties
pursuant to this Section as a result of any condition (including any environmental condition, claim or liability) on or with respect to the Term Loan 

  
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First Lien Collateral existing prior to the date of the exercise by the Revolving Facility Secured Parties of their rights under this Section, so long as such liability is not caused by or
related to negligence, willful misconduct or bad faith of the Revolving Facility Secured Parties or their agents or representatives. The Revolving Facility Secured Parties shall have no duty or liability to maintain the Term Loan First Lien
Collateral in a condition or manner better than that in which it was maintained prior to the use thereof by the Revolving Facility Secured Parties, or for any diminution in the value of the Term Loan First Lien Collateral that results from ordinary
wear and tear resulting from the use of the Term Loan First Lien Collateral by the Revolving Facility Secured Parties in the manner and for the time periods specified under this Section 2.09. Without limiting the rights granted in this
paragraph, the Revolving Facility Secured Parties shall cooperate with the Term Loan Secured Parties in connection with any efforts made by the Term Loan Secured Parties to sell the Term Loan First Lien Collateral. 

Section 2.10. Amendments to Security Documents. (a) Without the prior written consent of the Senior Representative, no Junior
Obligations Security Document may be amended, supplemented or otherwise modified or entered into to the extent such amendment, supplement or modification, or the terms of any new Junior Obligations Security Agreement, would be prohibited by or
inconsistent with any of the terms of this Agreement. 
 (b) In the event that the Senior Representative enters into any
amendment, waiver or consent in respect of any of the Senior Obligations Security Documents for the purpose of adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any Senior Obligations Security Document
or changing in any manner the rights of the Senior Representative, the Senior Obligations Secured Parties, the Company or any other Grantor thereunder in each case with respect to or relating to the Senior Obligations Collateral, then such
amendment, waiver or consent shall apply automatically to any comparable provision of the comparable Junior Obligations Security Document without the consent of the Junior Representative or any Junior Obligations Secured Party and without any action
by the Junior Representative, the Company or any other Grantor; provided, however that, (i) no such amendment, waiver or consent shall have the effect of (A) removing assets subject to the Lien of the Junior Obligations
Security Documents, except to the extent that a release of such Lien is permitted or required by Section 2.05 of this Agreement and provided that there is a corresponding release of the Lien securing the Senior Obligations, (B) imposing
duties on the Junior Representative without its consent or (C) permitting other Liens on the Collateral not permitted under the terms of the Junior Documents or Section 2.06 hereof and (ii) written notice of such amendment, waiver or
consent shall have been given to the Junior Representative within ten (10) Business Days after the effective date of such amendment, waiver or consent. 
 Section 2.11. Refinancings. The Revolving Facility Obligations and the Term Loan Obligations may be Refinanced, in whole or in part, in each case, without notice to, or the consent (except to the
extent a consent is required to permit the Refinancing transaction under any Revolving Facility Document or any Term Loan Document) of the Revolving Facility Agent, the Revolving Facility Secured Parties, the Term Loan Agent or the Term Loan Secured
Parties, as the case may be, all without affecting the lien priorities provided for herein or the other provisions hereof; provided, however that the holders of such Refinancing indebtedness (or an authorized agent or trustee on their
behalf) bind themselves in writing to the terms of this Agreement pursuant to such documents or agreements (including amendments or supplements to 

  
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this Agreement) as the Revolving Facility Agent or the Term Loan Agent, as the case may be, shall reasonably request and in form and substance reasonably acceptable to the Revolving Facility
Agent or the Term Loan Agent, as the case may be, and any such Refinancing transaction shall be in accordance with the provisions of both the Revolving Facility Documents and the Term Loan Documents. 

Section 2.12. Insurance. Unless and until the Revolving Facility Agent shall have delivered written notice to the Term Loan Agent
that the Revolving Facility Obligations have been paid in full in cash, as between the Revolving Facility Agent, on the one hand, and the Term Loan Agent, on the other hand, only the Revolving Facility Agent will have the right to adjust or settle
any insurance policy or claim covering or constituting Revolving Facility First Lien Collateral in the event of any loss thereunder and to approve any award granted in any condemnation or similar proceeding affecting the Revolving Facility First
Lien Collateral. Unless and until the Term Loan Agent shall have delivered written notice to the Revolving Facility Agent that the Term Loan Obligations have been paid in full in cash, as between the Revolving Facility Agent, on the one hand, and
the Term Loan Agent, on the other hand, only the Term Loan Agent will have the right to adjust or settle any insurance policy covering or constituting Term Loan First Lien Collateral in the event of any loss thereunder and to approve any award
granted in any condemnation or similar proceeding solely affecting the Term Loan First Lien Collateral. To the extent that an insured loss covers or applies to assets or property, some of which constitute Revolving Facility First Lien Collateral and
some of which constitute Term Loan First Lien Collateral, then the Revolving Facility Agent and the Term Loan Agent will work jointly and in good faith to collect, adjust or settle under the relevant insurance policy. The provisions of this section
are subject to the rights of the applicable Grantor under the Revolving Facility Documents and Term Loan Documents, as applicable. 
 Section 2.13. Junior Obligations Secured Parties Rights as Unsecured Creditors. Notwithstanding any other provision of this Agreement, both before and during any Insolvency or Liquidation
Proceeding, any of the Junior Obligations Secured Parties may take any and all actions and exercise any and all rights that would otherwise be available to such Junior Obligations Secured Party as a holder of unsecured claims in accordance with
applicable law; provided, that the Junior Obligations Secured Parties may not take any of the actions prohibited by Section 2.02, Sections 2.04(a)(i) through (vii), Section 2.06(b) and Section 2.06(d); provided, further, that in the
event that any of the Junior Obligations Secured Parties becomes a judgment lien creditor in respect of any Collateral as a result of its enforcement of its rights as an unsecured creditor with respect to the Junior Obligations, such judgment lien
shall be subject to the terms of this Agreement for all purposes (including in relation to the Senior Secured Obligations) as the other Liens securing the Junior Obligations are subject to this Agreement. 

Section 2.14. Post Petition Claims. Neither the Revolving Facility Agent nor any other Revolving Facility Secured Party shall
oppose or seek to challenge any claim by the Term Loan Agent or any other Term Loan Secured Party for allowance in any Insolvency or Liquidation Proceeding of Term Loan Obligations consisting of post-petition interest, premiums, fees or expenses.
Neither the Term Loan Agent nor any other Term Loan Secured Party shall oppose or seek to challenge any claim by the Revolving Facility Agent or any other Revolving Facility Secured Party for allowance in any Insolvency or Liquidation Proceeding of
Revolving Facility Obligations consisting of post-petition interest, premiums, fees or expenses. 

  
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 ARTICLE 3 
 SUB-AGENCY FOR PERFECTION OF CERTAIN SECURITY INTERESTS; 

RIGHTS UNDER PERMITS AND LICENSES 

Section 3.01. General. The Senior Representative agrees that if it shall at any time hold a Senior Lien on any Junior Obligations
Collateral that can be perfected by the possession or control of such Collateral or of any account in which such Collateral is held, and if such Collateral or any such account is in fact in the possession or under the control of the Senior
Representative, the Senior Representative will serve as sub-agent for the Junior Representative and hold such Collateral for the benefit of the Junior Representative for the sole purpose of perfecting the Junior Lien of the Junior Representative and
the other Junior Obligations Secured Parties on such Collateral. It is agreed that the obligations of the Senior Representative and the rights of the Junior Representative and the other Junior Obligations Secured Parties in connection with any such
sub-agency arrangement will be in all respects subject to the provisions of Article 2 of this Agreement. The Senior Representative will be deemed to make no representation as to the adequacy of the steps taken by it to perfect the Junior Lien on any
such Collateral and shall have no responsibility to the Junior Representative or any other Junior Obligations Secured Party for such perfection, it being understood that the sole purpose of this Article 3 is to enable the Junior Obligations
Secured Parties to obtain a perfected Junior Lien in such Collateral to the extent, if any, that such perfection results from the possession or control of such Collateral or any such account by the Senior Representative, in each case to the extent
such perfection is required by the terms of the applicable Junior Obligation Security Documents. Subject to Section 2.08, at such time as the Senior Obligations secured by the Senior Lien of the Senior Representative and the other Senior
Obligations Secured Parties shall have been Paid in Full, the Senior Representative shall take all such actions in its power as shall reasonably be requested by the Junior Representative to transfer possession or control of such Collateral or any
such account to the Junior Representative. 
 Section 3.02. Depositary Accounts. Grantors, in accordance with and to
the extent required under the Revolving Facility Credit Agreement, may maintain blocked account agreements relating to certain depositary accounts (the “Depositary Accounts”) with various depositary banks (the “Depositary
Banks”) in which collections from Inventory and Accounts are deposited. To the extent that the Revolving Facility Agent has, at any time, control of any such Depositary Account or the cash and other assets contained therein, the Revolving
Facility Agent will act as gratuitous bailee for the Term Loan Agent for the purpose of perfecting the Liens of the Term Loan Secured Parties in all such Depositary Accounts and the cash and other assets therein as provided in Section 3.01 (but
will have no duty, responsibility or obligation to the Term Loan Secured Parties except as set forth in the last sentence of this Section). Subject to the terms of the Term Loan Security Document, after the occurrence of the Revolving Facility First
Lien Collateral Transition Date, to the extent that the Revolving Facility Agent has, at such time, control of any Depositary Account or the cash and other assets contained therein, the Revolving Facility Agent shall, at the request of the Term Loan
Agent, cooperate with the Company and the Term Loan Agent (at the expense of the Company) in permitting such control to be transferred to the Term Loan Agent (or for other arrangements with respect to each such Depositary Account satisfactory to the
Term Loan Agent to be made), in each case to the extent such control is required by the terms of the Term Loan Security Documents. 

  
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 Section 3.03. Rights under Permits and Licenses. The Term Loan Agent agrees
that if the Revolving Facility Agent shall require rights available under any permit or license controlled by the Term Loan Agent (as certified to the Term Loan Agent by the Revolving Facility Agent, upon which the Term Loan Agent may rely) in order
to realize on any Revolving Facility First Lien Collateral, the Term Loan Agent shall take all such actions as shall be available to it, consistent with applicable law and reasonably requested by the Revolving Facility Agent, to make such rights
available to the Revolving Facility Agent. The Revolving Facility Agent agrees that if the Term Loan Agent shall require rights available under any permit or license controlled by the Revolving Facility Agent (as certified to the Revolving Facility
Agent by the Term Loan Agent, upon which the Revolving Facility Agent may rely) in order to realize on any Term Loan First Lien Collateral, the Revolving Facility Agent shall take all such actions as shall be available to it, consistent with
applicable law and reasonably requested by the Term Loan Agent, to make such rights available to the Term Loan Agent. 
 ARTICLE
4 
 EXISTENCE AND AMOUNTS OF LIENS AND
OBLIGATIONS 
 Whenever a Representative shall be required, in connection with the exercise of its rights or the
performance of its obligations hereunder, to determine the existence or amount of any Senior Obligations or Junior Obligations, or the existence of any Lien securing any such obligations, or the Collateral subject to any such Lien, it may request
that such information be furnished to it in writing by the other Representative and shall be entitled to make such determination on the basis of the information so furnished; provided, however, that if a Representative shall
fail or refuse reasonably promptly to provide the requested information, the requesting Representative shall be entitled to make any such determination by such commercially reasonable method as it may, in the exercise its good faith judgment,
determine, including by reliance upon a certificate of the Company. Each Representative may rely conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence
(or as otherwise directed by a court of competent jurisdiction) and shall have no liability to the Company or any of its subsidiaries, any Secured Party or any other person as a result of such determination. 

ARTICLE 5 

CONSENT OF GRANTORS 
 Each Grantor hereby consents to the provisions of this Agreement and the intercreditor arrangements provided for herein and agrees that except as otherwise provided in any Revolving Facility Document or
Term Facility Document, the obligations of the Grantors under the Security Documents will in no way be diminished or otherwise affected by such provisions or arrangements. 

  
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 ARTICLE 6 
 REPRESENTATIONS AND WARRANTIES 

Section 6.01. Representations and Warranties of Each Representative. 

Each Representative represents and warrants to the other parties hereto as follows: 

(a) Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has
all requisite power and authority to enter into and perform its obligations under this Agreement. 
 (b) This Agreement has been
duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms. 
 (c) The execution, delivery and performance by such party of this Agreement (i) do not require any consent or approval of, registration or filing with or any other action by any governmental
authority and (ii) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of such party or any order of any governmental authority or any indenture, agreement or other instrument binding upon
such party. 
 (d) In the case of the Term Loan Agent, it represents and warrants to the other parties hereto that it is
authorized under the Term Loan Credit Agreement to enter into this Agreement. 
 (e) In the case of the Revolving Facility
Agent, it represents and warrants to the other parties hereto that it is authorized under the Revolving Facility Credit Agreement to enter into this Agreement. 
 ARTICLE 7 
 PURCHASE OPTION 

Section 7.01. Purchase Option. 
 (a) Upon the occurrence of an Revolving Facility Event of Default and the acceleration of any portion of the Revolving Facility Obligations, any one or more Term Loan Lenders (including any group thereof)
holding in the aggregate at least a majority in principal amount of the Term Loan Obligations then outstanding (acting in their individual capacity or through one or more affiliates) shall have the right, but not the obligation, to purchase (each
Term Loan Lender having a ratable right to purchase) from Revolving Facility Lender all (but not less than all) of the right, title, and interest of Revolving Facility Lender in and to the Revolving Facility Obligations and the Revolving Facility
Documents, in accordance with the procedures set forth in this Section 7.01. For purposes of this Section 7.01, Letters of Credit outstanding under the Revolving Facility Credit Agreement will be deemed to have a principal amount equal to
105% of the maximum potential liability of Revolving Facility Lender in respect thereof under the Revolving Facility Credit Agreement. 
 (i) Revolving Facility Agent agrees that it will notify Term Loan Agent of the occurrence of an Revolving Facility Event of Default and the acceleration of any portion of the Revolving Facility
Obligations within three (3) Business Days of the date of such acceleration (such notice, a “Revolving Facility Acceleration Notice”). Such notice shall prominently include the title “Revolving Facility Acceleration
Notice”. 
 (ii) Term Loan Agent agrees that, within three (3) Business Days of receipt by Term Loan Agent of such
Revolving Facility Acceleration Notice, it will notify the Term Loan Lenders of such Revolving Facility Acceleration Notice. Within ten (10) Business Days of the 

  
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date of the notice by Term Loan Agent of such Revolving Facility Acceleration Notice to any Term Loan Lender (or, if no notice or Revolving Facility Acceleration Notice shall have been given to
such Term Loan Lender, within ten (10) Business Days of the date such Term Loan Lender obtains actual knowledge of such Revolving Facility Event of Default and acceleration of any portion of the Revolving Facility Obligations), such Term Loan
Lender (or any group of Term Loan Lenders including such Term Loan Lenders) holding in the aggregate at least a majority in principal amount of the Term Loan Obligations then outstanding (acting in its or their individual capacity or through one or
more affiliates) may (but shall not be obligated to) send to Term Loan Agent, a written firm offer to purchase (a “Purchase Election”) all (but not less than all) of the right, title, and interest of Revolving Facility Lenders in
and to the Revolving Facility Obligations and the Revolving Facility Documents. Promptly upon receipt of any such Purchase Election, Term Loan Agent will notify the Revolving Facility Agent of such Purchase Election (a “Purchase
Notice”), which Purchase Notice shall specify a date for purchase not less than two (2) and no more than fifteen (15) Business Days from the date of delivery thereof. The Purchase Notice, if given, shall be irrevocable.

 (iii) To the extent that the aggregate amount of Revolving Facility Obligations in respect of which Purchase Elections are
received exceeds the aggregate amount of Revolving Facility Obligations then outstanding, each Term Loan Lender submitting a Purchase Election in accordance with the foregoing shall be allocated by the Term Loan Agent the right to purchase such
right, title and interest of Revolving Facility Lenders in and to the Revolving Facility Obligations and the Revolving Facility Documents, (x) first, with a principal amount of Revolving Facility Obligations then outstanding (based on the
aggregate principal amount of Term Loan Obligations then held by such Term Loan Lenders) and (y) second, to the extent any principal amount of such Revolving Facility Obligation remains unallocated, according to the foregoing, with a principal
amount of Revolving Facility Obligations equal to such Term Loan Lender’s ratable share of such unallocated principal amount of Revolving Facility Obligations in respect of which such Term Loan Lender has submitted such Purchase Election.

 (b) On the date specified in the Purchase Notice (which shall not be less than two (2) or more than fifteen
(15) Business Days after the delivery of the Purchase Notice to Revolving Facility Agent), Revolving Facility Lenders shall sell to the purchasing persons or Term Loan Lenders and such purchasing persons or Term Loan Lenders shall purchase from
Revolving Facility Lenders, the Revolving Facility Obligations. 
 (c) On the date of such purchase and sale, purchasing persons
or Term Loan Lenders, as applicable, shall (i) pay to Revolving Facility Agent, for the benefit of Revolving Facility Lenders, as the purchase price therefor the full amount of all the Revolving Facility Obligations (other than Revolving
Facility Obligations cash collateralized in accordance with clause (c)(ii) below) then outstanding and unpaid, and (ii) furnish cash collateral to Revolving Facility Agent in such amounts as Revolving Facility Agent determines is reasonably
necessary to secure Revolving Facility Agent and Revolving Facility Lenders in connection with (A) any issued and outstanding Letters of Credit (but not in any event in an amount greater than 105% of the aggregate undrawn amount of such Letters
of Credit) and (B) Bank Product Obligations (but not in any event in an amount greater than the Reserves for the Bank Product), and (iii) agree to reimburse Revolving Facility Agent and Revolving Facility Lenders for all expenses to the
extent reimbursement thereof is earned or due and payable, in each case, in accordance with the 

  
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Revolving Facility Documents (excluding any prepayment premium). Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank account of Revolving
Facility Agent as Revolving Facility Agent may designate in writing to Term Loan Agent for such purpose. Interest shall be calculated to but excluding the Business Day on which such purchase and sale shall occur if the amounts so paid by purchasing
Term Loan Lenders to the bank account designated by Revolving Facility Agent are received in such bank account prior to 2:00 p.m., New York City time, and interest shall be calculated to and including such Business Day if the amounts so paid by
purchasing Term Loan Lenders to the bank account designated by Revolving Facility Agent are received in such bank account later than 2:00 p.m., New York City time. 
 (d) Such purchase shall be expressly made without representation or warranty of any kind by Revolving Facility Agent and Revolving Facility Lenders as to the Revolving Facility Obligations so purchased or
otherwise and without recourse to Revolving Facility Agent or any Revolving Facility Lender, except that each Revolving Facility Lender shall represent and warrant: (i) that the amount quoted by such Revolving Facility Lender as its portion of
the purchase price represents the amount shown as owing with respect to the claims transferred as reflected on its books and records, (ii) it owns, or has the right to transfer to such purchasing persons or Term Loan Lenders, as applicable, the
rights being transferred, and (iii) such transfer will be free and clear of Liens. 
 (e) In the event that any one or more
of Term Loan Lenders or such other persons designate by Term Loan Agent, exercises and consummates the purchase option set forth in this Section 7.01, (i) Revolving Facility Agent shall have the right, but not the obligation, to
immediately resign under the Revolving Facility Credit Agreement, and (ii) such purchasing persons or Term Loan Lenders, as applicable, shall have the right, but not the obligation, to require Revolving Facility Agent to immediately resign
under the Revolving Facility Credit Agreement. 
 (f) Commencing on the date immediately following the Revolving Facility
Agent’s receipt of any Purchase Notice, the Revolving Facility Agent and the Revolving Facility Lenders shall not complete or take any Enforcement Action, as long as the purchase and sale of the Revolving Facility Obligations provided for in
this Section 7.01 shall have closed within fifteen (15) Business Days of the Revolving Facility Agent’s receipt of the Purchase Notice and the Revolving Facility Agent shall have received payment in full as provided for in this
Section 7.01 within such fifteen (15) Business Day period unless the Revolving Facility Agent, in its reasonable discretion, shall determine that the failure to take any Enforcement Action or the delay in taking any Enforcement Action with
respect to the Revolving Facility First Lien Collateral would materially and adversely prejudice the Revolving Facility Lenders. 

  
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 ARTICLE 8 
 MISCELLANEOUS 
 Section 8.01. Notices. All notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 

 

	 	(a)	if to the Revolving Facility Agent, to it at: 

 Wells Fargo Bank, National Association 
 c/o Peter Foley 

Wells Fargo Retail Finance 
 One Boston Place, 19th Floor 
 Boston, MA 02108 

Telephone No.: 617-854-7283 
 Telecopy No.: 855-461-3726 
  

	 	(b)	if to the Term Loan Agent, to it at: 

 Michelle Latzoni 
 c/o Goldman, Sachs & Co. 

30 Hudson Street, 5th Floor 
 Jersey City, NJ 07302 
 Telephone No.: (212) 902-8517 

Telecopy No.: (212) 357-4597 
  

	 	(c)	if to the Company, to it at: 

Five Below, Inc. 

1818 Market Street, Suite 1900 
 Philadelphia, PA 19103 

	 	Attention:	Kenneth R. Bull 

	 	    	Chief Financial Officer 

Telephone No.: (215) 207-2604 
 Telecopy No.: (215) 546-1695 
  

	 	(d)	if to any other Grantor, to it in care of the Company as provided in clause (c) above. 

Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties
hereto (and for this purpose a notice to the Company shall be deemed to be a notice to each Grantor). All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt if delivered by hand or overnight courier service or sent by telecopy or on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 7.01 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 7.01. As agreed to in writing among the Company and the Representatives
from time to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable person provided from time to time by such person. 

Section 8.02. Waivers; Amendment. (a) No failure or delay on the part of any party hereto in exercising any right or power
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of 

  
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steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereto are cumulative
and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice or demand on any party hereto in any case shall entitle such party to any other or
further notice or demand in similar or other circumstances. 
 (b) Except as expressly provided for herein, neither this
Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by each Representative and the Company. 

(c) The Revolving Facility Agent and the Term Loan Agent may, without the consent of any other Revolving Facility Secured Parties or Term
Loan Secured Parties, in their discretion determine that a supplemental agreement (which may take the form of an amendment and restatement of this Agreement) is necessary or appropriate to facilitate (i) having additional indebtedness or other
obligations of Grantors to any of the Secured Parties become Revolving Facility Obligations or Term Facility Obligations, as the case may be, under this Agreement or (ii) to effectuate the subordination of Liens securing any Permitted Second
Priority Refinancing Debt (or any Refinancing Indebtedness (as defined in the Term Loan Credit Agreement) thereof) to the Liens on the Term Loan First Lien Collateral securing the Revolving Facility Obligations and the Term Lien Obligations and to
the Liens on the Revolving Facility First Lien Collateral securing the Term Facility Obligations and the Revolving Facility Obligations (the indebtedness or other obligations described in clauses (i) and (ii), “Additional
Debt”), which supplemental agreement shall, except in the case of Permitted Second Priority Refinancing Debt or any Refinancing Indebtedness (as defined in the Term Loan Credit Agreement) thereof specify whether such Additional Debt
constitutes Revolving Facility Obligations or Term Facility Obligations; provided, that, (A) such Additional Debt is permitted to be incurred under both the Revolving Facility Credit Agreement and the Term Loan Credit Agreement then existing in
accordance with the terms thereof and (B) any such supplemental agreement (including any amendment, restatement, modification or supplement thereto) shall be on terms and conditions satisfactory to each of the Revolving Facility Agent and the
Term Loan Agent, in its discretion. 
 Section 8.03. Parties in Interest. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement. 

Section 8.04. Certain Provisions. The Company and each of the Representatives agrees that the Term Loan Credit Agreement, the
Revolving Facility Credit Agreement and the Security Documents shall contain the applicable provisions set forth on Annex I hereto (or provisions substantially similar thereto). 

Section 8.05. Survival Agreement. All covenants, agreements, representations and warranties made by any party in this Agreement
shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement. 

  
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 Section 8.06. Counterparts. This Agreement may be executed in counterparts (and by
different parties on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by facsimile transmission
shall be as effective as delivery of a manually signed counterpart of this Agreement. 
 Section 8.07. Severability. Any
provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 8.08. Governing Law; Jurisdiction Consent to Service of Process. (a) This Agreement shall be construed in accordance
with and governed by the law of the State of New York. 
 (b) Each party hereto hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party hereto may otherwise have to bring any action or proceeding relating to this Agreement
in the courts of any jurisdiction. 
 (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 7.01.
Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 Section 8.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY 

  
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HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 8.10. Headings. Article and Section headings used herein are for convenience of reference only, are not part of this
Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 

Section 8.11. Conflicts. In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions
of any of the other Security Documents, the provisions of this Agreement shall control. 
 Section 8.12. Provisions Solely to
Define Relative Rights. The provisions of this Agreement are and are intended solely for the purpose of defining the relative rights of the Revolving Facility Secured Parties, on the one hand, and the Term Loan Secured Parties, on the other
hand. None of the Company, any other Grantor or any other creditor thereof shall have any rights or obligations hereunder, except as expressly provided in this Agreement, and none of the Company, or any other Grantor may rely on the terms hereof.
Nothing in this Agreement is intended to or shall impair the obligations of the Company or any other Grantor, which are absolute and unconditional, to pay the Obligations as and when the same shall become due and payable in accordance with their
terms. 
 Section 8.13. Certain Terms Concerning Revolving Facility Agent and Term Loan Agent. Neither the Revolving
Facility Agent nor the Term Loan Agent shall have any liability or responsibility for the actions or omissions of any other Secured Party, or for any other Secured Party’s compliance with (or failure to comply with) the terms of this Agreement.
Neither the Revolving Facility Agent nor the Term Loan Agent shall have individual liability to any Person if it shall mistakenly pay over or distribute to any Secured Party (or Company) any amounts in violation of the terms of this Agreement, so
long as the Revolving Facility Agent or the Term Loan Agent, as the case may be, is acting in good faith. 
 Section 8.14.
Further Assurances. Each of the Revolving Facility Agent, on behalf of itself and the Revolving Facility Secured Parties, and the Term Loan Agent, on behalf of itself and the Term Loan Secured Parties, agrees that it shall take such further
actions and shall execute and deliver such additional documents and instruments (in recordable form, if requested) as the Revolving Facility Agent or the Term Loan Agent, as applicable, may reasonably request to effectuate this Agreement, including
but not limited to the re-filing of liens to determine priority under this Agreement. Without limiting the generality of the foregoing, each of the Revolving Facility Agent, on behalf of itself and the Revolving Facility Secured Parties, and the
Term Loan Agent, on behalf of itself and the Term Loan Secured Parties, agrees upon request by the Revolving Facility Agent or the Term Loan Agent, as applicable, to cooperate in good faith (and to direct its counsel to cooperate in good faith) from
time to time in order to determine the specific items included in the Revolving Facility First Lien Collateral or the Term Loan First 

  
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Lien Collateral, as applicable, and the steps taken to perfect their respective Liens thereon, the intended priority thereof and the identity of the representative parties obligated under the
Revolving Facility Documents and the Term Loan Documents. 
 [SIGNATURE PAGE FOLLOWS] 

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

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Revolving Facility
 Agent

		
	By:	 	 /s/ Matthew N. Williams

		 	Name:	 	Matthew N. Williams
		 	Title:	 	Managing Director
	
	 GOLDMAN SACHS BANK USA, as Term
 Loan Agent

		
	By:	 	 /s/ Robert Ehudin

		 	Name:	 	Robert Ehudin
		 	Title:	 	Authorized Signatory
	
	 FIVE BELOW, INC., on behalf of itself and
 its Subsidiaries from time to time party
 hereto

		
	By:	 	 /s/ Kenneth R. Bull

		 	Name:	 	Kenneth R. Bull
		 	Title:	 	Chief Financial Officer,
		 		 	Treasurer, and Secretary

 ANNEX I 
 Provision for the Revolving Facility Credit Agreement and the Term Loan Credit Agreement 
 Reference is made to the Intercreditor Agreement. Each Lender hereunder (a) consents to the subordination of Liens provided for in the Intercreditor Agreement, (b) agrees that it will be
bound by and will take no actions contrary to the provisions of the Intercreditor Agreement and (c) authorizes and instructs the [Revolving Facility Agent] [Term Loan Agent] to enter into the Intercreditor Agreement as [Revolving Facility
Agent] [Term Loan Agent] and on behalf of such Lender. The foregoing provisions are intended as an inducement to the Lenders under the Credit Agreement to extend credit and such Lenders are intended third party beneficiaries of such provisions and
the provisions of the Intercreditor Agreement. 
 Provision for Revolving Facility Security Documents and the Term Loan Security
Documents 
 Reference is made to the Intercreditor Agreement. Notwithstanding any other provision contained herein, this
Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the applicable Senior
Obligations Security Documents (as defined in the Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall
control.

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