Document:

EX-10.9

 Exhibit 10.9 

EXECUTION VERSION 
 PLEDGE AND
SECURITY AGREEMENT 
 dated as of April 19, 2013, 

among 
 PETCO ANIMAL
SUPPLIES, INC., 
 the Subsidiary Parties from time to time party hereto, 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Collateral Agent 
 And

 CREDIT SUISSE AG, 

as Administrative Agent 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	
	ARTICLE I Definitions	  
			
	 Section 1.01.
	 	 Terms Defined in ABL Credit Agreement.
	  	 	1	  
	 Section 1.02.
	 	 Terms Defined in UCC.
	  	 	1	  
	 Section 1.03.
	 	 Definitions of Certain Terms Used Herein.
	  	 	2	  
	
	ARTICLE II Grant of Security Interest	  
	
	ARTICLE III Representations and Warranties	  
			
	 Section 3.01.
	 	 Title, Perfection and Priority.
	  	 	7	  
	 Section 3.02.
	 	 Letter-of-Credit Rights and Chattel Paper.
	  	 	7	  
	 Section 3.03.
	 	 Accounts and Chattel Paper.
	  	 	7	  
	 Section 3.04.
	 	 Inventory.
	  	 	8	  
	 Section 3.05.
	 	 Intellectual Property.
	  	 	8	  
	 Section 3.06.
	 	 No Financing Statements, Security Agreements.
	  	 	9	  
	 Section 3.07.
	 	 Pledged Collateral.
	  	 	9	  
	 Section 3.08.
	 	 Commercial Tort Claims.
	  	 	10	  
	 Section 3.09.
	 	 Perfection Certificate.
	  	 	10	  
	
	ARTICLE IV Covenants	  
			
	 Section 4.01.
	 	 General.
	  	 	10	  
	 Section 4.02.
	 	 Receivables.
	  	 	12	  
	 Section 4.03.
	 	 Inventory Count; Inventory Reporting System.
	  	 	13	  
	 Section 4.04.
	 	 Delivery of Instruments, Securities, Chattel Paper and Documents.
	  	 	13	  
	 Section 4.05.
	 	 Uncertificated Pledged Collateral.
	  	 	14	  
	 Section 4.06.
	 	 Pledged Collateral.
	  	 	14	  
	 Section 4.07.
	 	 Intellectual Property.
	  	 	16	  
	 Section 4.08.
	 	 Commercial Tort Claims.
	  	 	17	  
	 Section 4.09.
	 	 Letter-of-Credit Rights.
	  	 	17	  
	 Section 4.10.
	 	 No Interference.
	  	 	17	  
	 Section 4.11.
	 	 Insurance.
	  	 	17	  
	 Section 4.12.
	 	 Collateral Access Agreements.
	  	 	17	  
	
	ARTICLE V Remedies	  
			
	 Section 5.01.
	 	 Remedies.
	  	 	18	  
	 Section 5.02.
	 	 Grantor’s Obligations Upon Default.
	  	 	20	  
	 Section 5.03.
	 	 Grant of Intellectual Property License.
	  	 	20	  
			
		 	 ARTICLE VI Account Verification; Attorney In Fact; Proxy
	  			
			
	 Section 6.01.
	 	 Account Verification.
	  	 	21	  
	 Section 6.02.
	 	 Authorization for Secured Party to Take Certain Action.
	  	 	21	  
	 Section 6.03.
	 	 PROXY.
	  	 	22	  
	 Section 6.04.
	 	 NATURE OF APPOINTMENT; LIMITATION OF DUTY.
	  	 	22	  

  
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	ARTICLE VII General Provisions	  
			
	 Section 7.01.
	 	 Waivers.
	  	 	23	  
	 Section 7.02.
	 	 Limitation on Collateral Agent’s and Secured Party’s Duty with Respect to the Collateral.
	  	 	23	  
	 Section 7.03.
	 	 Compromises and Collection of Collateral.
	  	 	24	  
	 Section 7.04.
	 	 Secured Party Performance of Debtor Obligations.
	  	 	24	  
	 Section 7.05.
	 	 Specific Performance of Certain Covenants.
	  	 	25	  
	 Section 7.06.
	 	 Dispositions Not Authorized.
	  	 	25	  
	 Section 7.07.
	 	 No Waiver; Amendments; Cumulative Remedies.
	  	 	25	  
	 Section 7.08.
	 	 Limitation by Law; Severability of Provisions.
	  	 	25	  
	 Section 7.09.
	 	 Reinstatement.
	  	 	25	  
	 Section 7.10.
	 	 Benefit of Agreement.
	  	 	26	  
	 Section 7.11.
	 	 Survival of Representations.
	  	 	26	  
	 Section 7.12.
	 	 Taxes and Expenses.
	  	 	26	  
	 Section 7.13.
	 	 Additional Subsidiaries.
	  	 	26	  
	 Section 7.14.
	 	 Headings.
	  	 	27	  
	 Section 7.15.
	 	 Termination or Release.
	  	 	27	  
	 Section 7.16.
	 	 Entire Agreement.
	  	 	27	  
	 Section 7.17.
	 	 GOVERNING LAW.
	  	 	27	  
	 Section 7.18.
	 	 CONSENT TO JURISDICTION.
	  	 	28	  
	 Section 7.19.
	 	 WAIVER OF JURY TRIAL.
	  	 	28	  
	 Section 7.20.
	 	 Indemnity.
	  	 	29	  
	 Section 7.21.
	 	 Counterparts.
	  	 	29	  
	 Section 7.22.
	 	 INTERCREDITOR AGREEMENT GOVERNS.
	  	 	29	  
	 Section 7.23.
	 	 Delivery of Collateral.
	  	 	30	  
	 Section 7.24.
	 	 Mortgages.
	  	 	30	  
	
	ARTICLE VIII Notices	  
			
	 Section 8.01.
	 	 Sending Notices.
	  	 	30	  
	 Section 8.02.
	 	 Change in Address for Notices.
	  	 	30	  
	
	ARTICLE IX The Agent	  

 SCHEDULES 
  

					
	Schedule I	  	—	    	Equity Interests and Debt Securities

  

					
	EXHIBITS	  		    	
			
	Exhibit A	  	—	    	Letter of Credit Rights and Chattel Paper
	Exhibit B	  	—	    	Commercial Tort Claims
	Exhibit C	  	—	    	Offices in Which Financing Statements and Security Agreements Have Been Filed
	Exhibit D	  	—	    	Form of Amendment to Security Agreement
	Exhibit E	  	—	    	Form of Perfection Certificate
	Exhibit F	  	—	    	Subsidiary Parties
	Exhibit G	  	—	    	Form of Collateral Access Agreement
	Exhibit H	  	—	    	Form of Supplement to Security Agreement

  
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 THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended, amended and restated,
supplemented or otherwise modified from time to time, this “Security Agreement”) is entered into as of April 19, 2013, by and among PETCO ANIMAL SUPPLIES, INC., a Delaware corporation (the “Borrower”), the Subsidiary
Parties (as defined below) from time to time party hereto, WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as collateral agent for the lenders party to the ABL Credit Agreement referred to below (in such capacity, the “Collateral
Agent”), and CREDIT SUISSE AG, as administrative agent for the lenders party to the ABL Credit Agreement referred to below (in such capacity, the “Administrative Agent” and, together with the Collateral Agent, the
“Agents”). 
 PRELIMINARY STATEMENT 

Reference is made to the ABL Credit Agreement dated as of April 19, 2013 (as amended, supplemented or otherwise modified from time to
time, the “ABL Credit Agreement”), among the Borrower, the Subsidiaries of the Borrower from time to time party thereto, the Lenders from time to time party thereto and the Agents. The Lenders have agreed to extend credit to the
Borrower subject to the terms and conditions set forth in the ABL Credit Agreement. The obligations of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Security Agreement. The Subsidiary
Parties are affiliates of the Borrower, will derive substantial benefits from the extension of credit to the Borrower pursuant to the ABL Credit Agreement and are willing to execute and deliver this Security Agreement in order to induce the Lenders
to enter into, and extend such credit to the Borrower under, the ABL Credit Agreement and to secure the Secured Obligations, including in the case of each Grantor that is a Loan Guarantor, its obligations under the Loan Guaranty. Accordingly, the
parties hereto agree as follows: 
 ARTICLE I 

Definitions 

Section 1.01. Terms Defined in ABL Credit Agreement. 

(a) All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the ABL Credit Agreement.

 (b) The rules of construction specified in Section 1.03 of the ABL Credit Agreement also apply to this Security Agreement.

 Section 1.02. Terms Defined in UCC. Terms defined in the UCC that are not otherwise defined in this Security Agreement or the
ABL Credit Agreement are used herein as defined in the UCC. 

 Section 1.03. Definitions of Certain Terms Used Herein. As used in this Security
Agreement, in addition to the terms defined in the preamble and Preliminary Statement above, the following terms shall have the following meanings: 

“Account Debtor” means any Person who is or who may become obligated to any Grantor under, with respect to or on account of
an Account. 
 “Article” means a numbered article of this Security Agreement, unless another document is specifically
referenced. 
 “Borrower” shall have the meaning set forth in the introductory paragraph to this Security Agreement. 

“Collateral” shall have the meaning set forth in Article II. 

“Collateral Access Agreement” means a landlord waiver or other agreement, substantially in the form attached hereto as
Exhibit G or such other form as shall be reasonably satisfactory to the Collateral Agent, between the Collateral Agent and any third party (including any bailee, consignee, customs broker, or other similar Person) in possession of any
Collateral or any landlord of any premises where any Collateral is located, as such landlord waiver or other agreement may be amended, restated, or otherwise modified from time to time. 

“Collateral Report” means any certificate (including any Borrowing Base Certificate), report or other document delivered by
any Grantor to any Agent with respect to the Collateral pursuant to any Loan Document. 
 “Control” shall have the meaning
set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC. 

“Copyrights” means, with respect to any Person, all of such Person’s right, title and interest in and to the following:
(a) all copyrights, rights and interests in copyrights, works protectable by copyright, copyright registrations and copyright applications; (b) all renewals of any of the foregoing; (c) all income, royalties, damages and payments now
or hereafter due and/or payable under any of the foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing; (d) the right to sue for past, present and future infringements of any of
the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world. 
 “Excluded Assets”
means: 
 (a) more than 65% of the issued and outstanding voting Equity Interests of any Foreign Subsidiary or Foreign Subsidiary Holding
Company; 
 (b) any Domestic Subsidiary that is taxed as a partnership for federal income tax purposes that holds Equity Interests of a
Foreign Subsidiary whose Equity Interests are pledged pursuant to this Security Agreement; 

  
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 (c) any leases, licenses, rights or other agreements contained within the Collateral to which any
Grantor is a party or any of its rights or interests are subject thereto to the extent and solely to the extent that the proximate result of the grant of such security interest shall be to (1) constitute or result in the abandonment,
invalidation or unenforceability of any right, title or interest in such Grantor therein (including any intent-to-use applications for Trademarks filed in the United States Patent and Trademark Office, unless and until acceptable evidence of use of
the Trademark has been filed pursuant to Sections 1(c) or 1(d) of the Lanham Act) or (2) create a situation under which such Grantor shall be deemed to have breached or terminated pursuant to the terms of, or defaulted under, any such
Collateral; and, in each case under clauses (1) and (2) above, such abandonment, invalidation, unenforceability, breach, termination or default would not be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the
Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or principles or equity; provided, however, that the Excluded Assets shall not include, and such security
interest shall attach immediately at such time as the condition causing such abandonment, invalidation, unenforceability, breach, termination or default shall be remedied and to the extent severable, shall attach immediately to, any portion of such
lease, license, right or agreement that does not result in any of the consequences specified in (1) or (2) above; and 
 (d)
assets that are acquired by any Grantor with the proceeds of Indebtedness incurred pursuant to Section 6.01(e) and 6.01(f) of the ABL Credit Agreement and that are subject to a purchase money Lien in favor of the lenders under
such Indebtedness. 
 “Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is
specifically referenced. 
 “Grantors” means the Borrower and each of the Subsidiary Parties. 

“Intercreditor Agreement” means the Lien Subordination and Intercreditor Agreement dated as of November 24, 2010, among
the Borrower, the Subsidiaries from time to time party thereto, the Collateral Agent and the Term Loan Agent, as amended, amended and restated, supplemented or otherwise modified from time to time. 

“Licenses” means, with respect to any Grantor, all of such Grantor’s right, title, and interest in and to (a) any
and all licensing agreements or similar arrangements in and to (1) Patents, (2) Copyrights or (3) Trademarks, in each case owned by such Grantor or that such Grantor otherwise has the right to license. 

“Patents” means, with respect to any Person, all of such Person’s right, title and interest in and to: (a) any and
all patents and patent applications; (b) all inventions and improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof; (d) all income, royalties,
damages, claims and payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof; (e) all rights to sue for past, present and future
infringements thereof; and (f) all rights corresponding to any of the foregoing throughout the world. 

  
 3 

 “Perfection Certificate” means a certificate substantially in the form of
Exhibit E completed and supplemented with the schedules and attachments contemplated thereby, and duly executed by a Responsible Officer of the Borrower. 

“Pledged Collateral” means, collectively, (a) all Pledged Stock, (b) all Pledged Debt Securities, (c) all
other property that may be delivered to and held by the Agent pursuant to the terms of Article II; (d) subject to Section 4.05(c), all payments of principal or interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other proceeds received in respect of, the securities referred to in clauses (a) and (b) above; (e) subject to
Section 4.05(c), all rights and privileges of such Grantor with respect to the securities and other property referred to in clauses (a), (b), (c) and (d) above; and (f) all proceeds of any of the foregoing. 

“Pledged Debt Securities” means (i) the debt securities owned by any Grantor, including those listed opposite the name
of such Grantor on Schedule I, (ii) any debt securities in the future issued to such Grantor and (iii) the promissory notes and any other instruments evidencing all such debt securities. 

“Pledged Stock” means (i) the shares of capital stock and other Equity Interests owned by any Grantor, including those
listed on Schedule I, (ii) any other Equity Interests obtained in the future by such Grantor and (iii) the certificates representing all such Equity Interests; provided that the Pledged Stock shall not include more than 65% of the issued
and outstanding voting Equity Interests of any Foreign Subsidiary or Foreign Subsidiary Holding Company. 
 “Receivables”
means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other rights or claims to receive money that are General Intangibles or that are otherwise included as Collateral. 

“Required Secured Parties” means (a) prior to an acceleration of the Obligations under the ABL Credit Agreement, the
Required Lenders, (b) after an acceleration of the Obligations under the ABL Credit Agreement but prior to the date upon which the ABL Credit Agreement has terminated by its terms and all of the Obligations thereunder have been paid in full,
Lenders holding in the aggregate at least a majority of the total Revolving Exposure of all the Lenders and (c) after the ABL Credit Agreement has terminated by its terms and all of the Obligations thereunder have been paid in full (whether or
not the Obligations under the ABL Credit Agreement were ever accelerated), Lenders (or their Affiliates) holding in the aggregate at least a majority of the aggregate net Secured Swap Obligations then due and unpaid from the Grantors to the Lenders
under Swap Agreements, as determined by the Administrative Agent in its reasonable discretion. 
 “Revolving Facility
Mortgages” shall have the meaning set forth in the Intercreditor Agreement. 
 “Section” means a numbered section
of this Security Agreement, unless another document is specifically referenced. 

  
 4 

 “Secured Parties” means (a) the Lenders, (b) each Agent, (c) each
Issuing Bank, (d) each counterparty to any Swap Agreement with a Loan Party the obligations under which constitute Secured Swap Obligations, (e) each provider of Banking Services the Banking Services Obligations in respect of which
constitute Secured Obligations, (f) the beneficiaries of each indemnification obligations undertaken by any Loan Party under any Loan Document and (g) the successors and permitted assigns of each of the foregoing. 

“Stock Rights” means all dividends, instruments or other distributions and any other right or property which any Grantor
shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest constituting Collateral, any right to receive an Equity Interest constituting Collateral and any
right to receive earnings, in which such Grantor now has or hereafter acquires any right, issued by an issuer of such Equity Interest. 

“Subsidiary Parties” means (a) the Subsidiaries identified on Exhibit F and each other Domestic Subsidiary that
becomes a party to this Security Agreement as a Subsidiary Party after the date hereof, in accordance with Section 7.13 herein and Section 5.10 of the ABL Credit Agreement. 

“Term Loan Agent” shall have the meaning set forth in the Intercreditor Agreement. 

“Term Loan Credit Agreement” shall have the meaning set forth in the Intercreditor Agreement. 

“Term Loan First Lien Collateral Transition Date” shall have the meaning set forth in the Intercreditor Agreement. 

“Term Loan Obligations” shall have the meaning set forth in the Intercreditor Agreement. 

“Term Loan Security Agreement” shall have the meaning set forth in the Intercreditor Agreement. 

“Term Loan Security Documents” shall have the meaning set forth in the Intercreditor Agreement. 

“Trademarks” means, with respect to any Person, all of such Person’s right, title and interest in and to: (a) all
common law trademarks, trademark registrations and trademark applications, common law service marks, service mark registrations and service mark applications, trade names, corporate names, trade dress and logos, and the goodwill of the business
symbolized by the foregoing; (b) all extensions and renewals of the foregoing; (c) all income, royalties, damages and payments now or hereafter due or payable with respect thereto, including, without limitation, damages, claims and
payments for past and future infringements thereof; (d) all rights to sue for past, present and future infringements of the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world. 

  
 5 

 “UCC” means the Uniform Commercial Code as in effect from time to time in the
State of New York. 
 ARTICLE II 

Grant of Security Interest 

Each Grantor hereby pledges, assigns and grants to the Collateral Agent, on behalf of and for the ratable benefit of the Secured Parties, a
security interest in all of its right, title and interest in, to and under all personal property and other assets, whether now owned by or owing to, or hereafter acquired by or arising in favor of such Grantor, or in which such Grantor has or at any
time in the future may acquire any right, title or interest, and regardless of where located (all of which are collectively referred to as the “Collateral”), including: 

(i) all Accounts; 

(ii) all Chattel Paper; 

(iii) all Copyrights, Patents, Trademarks and Licenses; 

(iv) all Documents; 

(v) all Equipment; 

(vi) all Fixtures; 

(vii) all General Intangibles; 

(viii) all Goods; 

(ix) all Instruments; 

(x) all Inventory; 

(xi) all Investment Property; 

(xii) all Pledged Collateral; 

(xiii) all cash or cash equivalents; 

(xiv) all letters of credit, Letter-of-Credit Rights and Supporting Obligations; 

(xv) all Deposit Accounts with any bank or other financial institution; 

(xvi) all Commercial Tort Claims as specified from time to time in Exhibit B; and 

(xvii) all accessions to, substitutions for and replacements, proceeds (including Stock Rights), insurance proceeds and
products of the foregoing, together with all books 

  
 6 

 
and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto, any General Intangibles at any time evidencing or relating
to any of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing; 
 to secure the prompt and
complete payment and performance of the Secured Obligations. 
 Notwithstanding the foregoing or anything herein to the contrary, in no
event shall the “Collateral” include, or the security interest attach to, any Excluded Asset. 
 ARTICLE III 

Representations and Warranties 

The Grantors, jointly and severally, represent and warrant to the Agents, for the benefit of the Secured Parties, that: 

Section 3.01. Title, Perfection and Priority. Each Grantor has good and valid rights in or the power to transfer the Collateral
and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all Liens except for Liens permitted under Section 4.01(e), and has full power and authority to grant to the
Collateral Agent the security interest in such Collateral pursuant hereto. When financing statements have been filed in the appropriate offices against such Grantor in the locations listed on Exhibit C, the Collateral Agent will have a fully
perfected first priority security interest in that Collateral in which a security interest may be perfected by filing under the Uniform Commercial Code in effect in the applicable jurisdiction, subject only to Liens permitted under
Section 4.01(e) and to the terms of the Intercreditor Agreement. 
 Section 3.02. Letter-of-Credit Rights and Chattel
Paper. Exhibit A lists all Letter-of-Credit Rights and Chattel Paper of each Grantor as of the date hereof, in each case with a value in excess of $1,000,000. All actions necessary or desirable to protect and perfect the Collateral
Agent’s Lien under the laws of the United States, on each item listed on Exhibit A (including the delivery of all originals as and to the extent required hereunder) have been duly taken by each Grantor. The Collateral Agent will have a
fully perfected first priority security interest in the Collateral listed on Exhibit A, subject only to Liens permitted under Section 4.01(e) and to the terms of the Intercreditor Agreement. 

Section 3.03. Accounts and Chattel Paper. 

(a) The names of the obligors, amounts owing, due dates and other information with respect to each Grantor’s Accounts and Chattel Paper
that are Collateral are and will be correctly stated, at the time furnished, in all records of such Grantor relating thereto and in all invoices (if any) and each Collateral Report with respect thereto furnished to either Agent by such Grantor from
time to time. 
 (b) Except as disclosed on the most recent Collateral Report, (i) all such Accounts referred to in such Collateral
Report represent bona fide sales of Inventory or rendering of services to Account Debtors in the ordinary course of the applicable Grantor’s business and 

  
 7 

 
are not evidenced by a judgment, Instrument or Chattel Paper; (ii) there are no setoffs, claims or disputes existing or asserted with respect to any Accounts referred to in such Collateral
Report, and no Grantor has made any agreement with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full amount thereof, any release of any Account Debtor from liability therefor or
any deduction therefrom except a discount or allowance allowed by a Grantor in the ordinary course of its business for prompt payment; (iii) to the knowledge of such Grantor, there are no facts, events or occurrences that in any way impair the
validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices, statements and the most recent Collateral Report with respect thereto;
(iv) no Grantor has received any notice of proceedings or actions that are threatened or pending against any Account Debtor that might result in any material adverse change in such Account Debtor’s financial condition; and (v) no
Grantor has knowledge that any Account Debtor is unable generally to pay its debts as they become due. 
 (c) In addition, (i) the
amounts shown on all invoices, statements and the most recent Collateral Report with respect thereto are actually and absolutely owing to a Grantor as indicated thereon and are not in any way contingent; and (ii) no payments have been or shall
be made thereon except payments delivered to a Blocked Account subject to a Blocked Account Agreement or a DDA in respect of which a DDA Notification has been delivered, in each case in accordance with Section 2.21 of the ABL Credit
Agreement. 
 Section 3.04. Inventory. With respect to any Inventory scheduled or listed on the most recent Collateral Report,
except as disclosed therein: (a) no Inventory (other than Inventory in transit) is now, or shall at any time or times hereafter be stored at any other location not set forth in the Perfection Certificate except as permitted by
Section 4.01(h), (b) the Grantors have good, indefeasible and merchantable title to such Inventory and such Inventory is not subject to any Lien or security interest or document whatsoever except for the Lien granted to the
Collateral Agent, for the benefit of the Secured Parties, and except for other Liens permitted under Section 6.02 of the ABL Credit Agreement, (c) such Inventory is Eligible Inventory, (d) such Inventory is not subject to any
licensing, patent, royalty, trademark, trade name or copyright agreements with any third parties that would, upon sale or other disposition of such Inventory by the Collateral Agent in accordance with the terms hereof, infringe the rights of such
third- party licensor, violate any contract with such third-party licensor or cause the Collateral Agent to incur any liability with respect to payment of royalties other than royalties incurred pursuant to sale of such Inventory under the current
licensing agreement related thereto, (e) such Inventory has been produced in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder and (f) the completion of manufacture,
sale or other disposition of such Inventory by the Collateral Agent following the occurrence and during the continuance of an Event of Default shall not require the consent of any Person and shall not constitute a breach or default under any
contract or agreement to which any Grantor is a party or to which such Inventory is subject. 
 Section 3.05. Intellectual
Property. As of the date hereof, no Grantor owns any Patent, Trademark or Copyright which is not set forth in the Perfection Certificate. This Security Agreement is effective to create a valid and continuing Lien under the UCC and the laws of
the United States and, upon timely filing of appropriate financing statements in the offices listed on 

  
 8 

 
Exhibit C and this Security Agreement (or a fully executed short form agreement in form and substance reasonably satisfactory to the Collateral Agent) with the United States Copyright
Office and the United States Patent and Trademark Office, fully perfected first priority security interests under the UCC and the laws of the United States (subject to the terms of the Intercreditor Agreement) in favor of the Collateral Agent for
the ratable benefit of the Secured Parties on the Patents, Trademarks and Copyrights which are subject to a valid U.S. registration or application for registration included in the Collateral and owned by the Grantors, such perfected security
interests are enforceable as such as against any and all creditors of and purchasers from the Grantors (except as permitted by Section 6.02 of the ABL Credit Agreement); and all action necessary or desirable under the UCC and the laws of
the United States to protect and perfect the Collateral Agent’s Lien on such Patents, Trademarks or Copyrights owned by the Grantors shall have been duly taken. 

Section 3.06. No Financing Statements, Security Agreements. No financing statement or security agreement describing all or any
portion of the Collateral that has not lapsed or been terminated naming a Grantor as debtor has been filed or is of record in any jurisdiction except (a) for financing statements or security agreements naming the Collateral Agent on behalf of
the Secured Parties as the secured party and (b) as permitted by Sections 4.01(e) and 4.01(f). 
 Section 3.07.
Pledged Collateral. 
 (a) As of the date hereof, the Perfection Certificate sets forth a complete and accurate list of all of the
Pledged Collateral and the percentage of the total issued and outstanding Equity Interests of the issuer represented thereby. As of the date hereof, each Grantor is the direct, sole beneficial owner and sole holder of record of the Pledged
Collateral listed in the Perfection Certificate as being owned by it, free and clear of any Liens, except for the security interest granted to the Collateral Agent for the ratable benefit of the Secured Parties hereunder, nonconsensual Liens
permitted under Section 6.02 of the Term Loan Credit Agreement and nonconsensual Liens permitted under Section 6.02 of the ABL Credit Agreement. Each Grantor further represents and warrants that (i) all Pledged
Collateral constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Pledged Collateral) duly authorized and validly issued by the issuer thereof and are fully paid and non-assessable, (ii) with
respect to any certificates delivered to the Collateral Agent (or its bailee) representing an Equity Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of actions by the issuer or otherwise, or, if such
certificates are not Securities, such Grantor has so informed the Collateral Agent so that the Collateral Agent (or its bailee) may take steps to perfect its security interest therein as a General Intangible, (iii) to the extent required by
Section 4.05, it shall have used its commercially reasonable efforts to ensure that all Pledged Collateral held by a securities intermediary is covered by a control agreement among the applicable Grantor, the securities intermediary and
the Collateral Agent (or its bailee) pursuant to which the Collateral Agent (or its bailee) has Control and (iv) all Pledged Collateral that represents Indebtedness owed to any Grantor has been duly authorized, authenticated or issued and
delivered by the issuer of such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder. 

(b) (i) None of the Pledged Collateral has been issued or transferred in violation of the securities registration, securities disclosure or
similar laws of any jurisdiction to 

  
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which such issuance or transfer may be subject, (ii) none of the Pledged Collateral is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law
provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of
rights and remedies hereunder and (iii) no consent, approval, authorization or other action by, and no giving of notice, or filing with, any governmental authority or any other Person is required for the pledge by the Grantors of the Pledged
Collateral pursuant to this Security Agreement or for the execution, delivery and performance of this Security Agreement by the Grantors, or for the exercise by the Collateral Agent of the voting or other rights provided for in this Security
Agreement or for the remedies in respect of the Pledged Collateral pursuant to this Security Agreement, except as may be required in connection with such disposition by laws affecting the offering and sale of securities generally. 

Section 3.08. Commercial Tort Claims. As of the date hereof, no Grantor holds any Commercial Tort Claims having a value in excess
of $1,000,000 for which such Grantor has filed a complaint in a court of competent jurisdiction, except as indicated on Exhibit B. 

Section 3.09. Perfection Certificate. The Perfection Certificate has been duly prepared, completed and executed, and the
information set forth therein is correct and complete in all material respects as of the date hereof. 
 ARTICLE IV 

Covenants 
 From the date
hereof, and thereafter until this Security Agreement is terminated, each Grantor agrees that: 
 Section 4.01. General. 

(a) Collateral Records. Each Grantor will maintain complete and accurate books and records as is consistent with its practices as of
the date hereof in all material respects with respect to the Collateral, and furnish to each Agent such reports relating to the Collateral as such Agent shall from time to time reasonably request. 

(b) Authorization to File Financing Statements; Ratification. Each Grantor hereby authorizes either Agent to file, and if requested
will deliver to the requesting Agent, all financing statements and other documents and take such other actions as may from time to time be requested by such Agent in order to maintain a first priority (subject to the terms of the Intercreditor
Agreement) perfected security interest in and, if applicable, Control (to the extent required by the terms hereof) of, the Collateral. Any financing statement filed by any Agent may be filed in any filing office in any applicable Uniform Commercial
Code jurisdiction and may (i) indicate the Collateral (1) as all assets of the applicable Grantor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the
Uniform Commercial Code of such jurisdiction, or (2) by any other description which reasonably approximates the description contained in this Security Agreement and (ii)

  
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contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including (A) whether the
Grantor is an organization, the type of organization and any organizational identification number issued to the Grantor and (B) in the case of a financing statement filed as a fixture filing, a sufficient description of real property to which
the Collateral relates. Each Grantor also agrees to furnish any such information to either Agent promptly upon request. Each Grantor also ratifies its authorization for each Agent to have filed in any Uniform Commercial Code jurisdiction any initial
financing statements or amendments thereto if filed prior to the date hereof. Each Agent is further authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar
office in any other country) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted hereby by each Grantor, without the signature of any Grantor,
and naming any Grantor or the Grantors as debtors and such Agent as secured party. 
 (c) Further Assurances. Each Grantor will, if
reasonably requested by the Collateral Agent, but not more frequently than once per quarter, furnish to the Collateral Agent statements and schedules further identifying and describing the Collateral and such other reports and information in
connection with the Collateral as the Collateral Agent may reasonably request, all in such detail as the Collateral Agent may reasonably specify. Each Grantor also agrees to take any and all reasonable actions necessary to defend title to the
Collateral against all persons and to defend the security interest of the Collateral Agent in the Collateral and the priority thereof against any Lien not permitted under Section 6.02 of the ABL Credit Agreement. 

(d) Disposition of Collateral. No Grantor will sell, lease, transfer or otherwise dispose of the Collateral except for sales, leases,
transfers and other dispositions permitted under Section 6.05 of the ABL Credit Agreement. 
 (e) Liens. No Grantor will
create, incur, or suffer to exist any Lien on the Collateral except Liens permitted by Section 6.02 of the ABL Credit Agreement. 

(f) Other Financing Statements. No Grantor will authorize the filing of any financing statement naming it as debtor covering all or any
portion of the Collateral, except to cover security interests as permitted by Section 4.01(e). Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any
financing statement naming the Collateral Agent as secured party without the prior written consent of the Agents, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC. 

(g) Change of Name, Etc. Each Grantor agrees to furnish to each Agent prompt written notice of any change in: (i) such
Grantor’s name; (ii) the location of such Grantor’s chief executive office or its principal place of business; (iii) such Grantor’s organizational legal entity designation or jurisdiction of incorporation or formation;
(iv) such Grantor’s Federal Taxpayer Identification Number and organizational identification number assigned to it by its jurisdiction of incorporation or formation; or (v) the acquisition by such Grantor of any material property for
which additional filings or recordings are necessary to perfect and maintain the Collateral Agent’s security interest therein (to the extent perfection of 

  
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the security interest in such property is required by the terms hereof). Each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been
made under the Uniform Commercial Code or other applicable law that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected, first priority security interest (subject to the
terms of the Intercreditor Agreement and to Liens permitted under Section 6.02 of the ABL Credit Agreement that have priority by operation of applicable law) in the Collateral for its benefit and the benefit of the other Secured Parties.

 (h) Locations of Collateral. No Grantor will maintain any Collateral consisting of Inventory the aggregate value of which, at
cost, is $2,500,000 or more at any location other than those locations listed in the Perfection Certificate or facilities purchased or leased by any Grantor after the date hereof not in violation of the ABL Credit Agreement, unless, in the case of
any location (other than a retail store or a location that is owned by a Grantor and that is not subject to any mortgage other than a Mortgage) where any Collateral consisting of Inventory the aggregate value of which, at cost, is $2,500,000 or more
is located, such Grantor shall have used commercially reasonable efforts to obtain a Collateral Access Agreement for such location. 
 (i)
Compliance with Terms. Each Grantor will perform and comply in all material respects with all obligations in respect of the Collateral and all material agreements relating to the Collateral to which it is a party or by which it is bound. 

Section 4.02. Receivables. 

(a) Certain Agreements on Receivables. No Grantor will make or agree to make any discount, credit, rebate or other reduction in the
original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount thereof, except that, while no Event of Default has occurred and is continuing, any Grantor may reduce the amount of Accounts, whether from
the sale of Inventory or otherwise, in the ordinary course of business. 
 (b) Collection of Receivables. Except as otherwise
provided in this Security Agreement, each Grantor will use commercially reasonable efforts to collect and enforce, in the ordinary course of business, all amounts due or hereafter due to such Grantor under the Receivables. 

(c) Disclosure of Counterclaims on Receivables. If (i) any material discount, credit or agreement to make a rebate or to otherwise
reduce the amount owing on a material Receivable exists or (ii) to the knowledge of any Grantor, any material dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to a material Receivable, the
Grantors will promptly disclose such fact to the Collateral Agent in writing. 
 (d) Electronic Chattel Paper. If any Grantor at any
time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that 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, in 

  
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each case with a value in excess of $1,000,000, such Grantor shall promptly notify the Collateral Agent thereof and, at the request of the Collateral Agent, shall take such action as the
Collateral Agent may reasonably request to vest in the Collateral Agent Control under UCC Section 9-105 of such Electronic Chattel Paper or control (to the extent the meaning of “control” has not been clearly established under such
provisions, “control” in this paragraph (d) shall have such meaning as the Collateral Agent shall in good faith specify in writing after consultation with the Borrower) 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 so in effect in such jurisdiction, of such transferable record. The Collateral Agent agrees with such Grantor that the Collateral
Agent will arrange, pursuant to procedures reasonably satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent’s loss of Control or control, as applicable, for the Grantor to make alterations
to the Electronic Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform
Electronic Transactions Act for a party in Control to allow without loss of Control or control, as applicable, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect
to such Electronic Chattel Paper or transferable record. 
 Section 4.03. Inventory Count; Inventory Reporting System. Upon the
request of the Collateral Agent, the Grantors will conduct a physical count of the Inventory at least once per fiscal year, and after an occurrence and during the continuation of an Event of Default, at such other times as the Collateral Agent
requests. The Grantors, at their own expense, shall deliver to the Collateral Agent the results of each physical verification that the Grantors have made, or have caused any other Person to make on its behalf, of all or any portion of its Inventory.
The Grantors will maintain a perpetual inventory reporting system at all times. 
 Section 4.04. Delivery of Instruments,
Securities, Chattel Paper and Documents. Each Grantor will (a) deliver to the Collateral Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper (if any then exist), Securities and Instruments
constituting Collateral, in each case with a value in excess of $1,000,000, together with such undated instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time request, (b) hold in trust for the
Collateral Agent upon receipt and promptly thereafter deliver to the Collateral Agent any Chattel Paper, Securities and Instruments constituting Collateral received after the date hereof, in each case with a value in excess of $1,000,000, together
with such undated instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time request, (c) upon the Collateral Agent’s request, deliver to the Collateral Agent, and thereafter hold in trust
for the Collateral Agent upon receipt and promptly deliver to the Collateral Agent any Document evidencing or constituting Collateral with a value in excess of $1,000,000 and (d) upon the Collateral Agent’s request, deliver to the
Collateral Agent a duly executed amendment to this Security Agreement, in the form of Exhibit D (each, an “Amendment”), pursuant to which such Grantor will pledge any additional Collateral to the extent required hereby. Each
Grantor hereby authorizes the Collateral Agent to attach each Amendment to this Security Agreement and agrees that all additional collateral set forth in such Amendments shall be considered to be part of the Collateral. 

  
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 Section 4.05. Uncertificated Pledged Collateral. The Grantors will permit the
Collateral Agent from time to time to cause (subject to the terms of the Intercreditor Agreement) the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of
Pledged Collateral with respect to which a Grantor owns 50% or more of the Equity Interests of the issuer of such Pledged Collateral not represented by certificates to mark their books and records with the numbers and face amounts of all such
uncertificated securities or other types of Pledged Collateral not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Collateral Agent granted pursuant to this Security Agreement. The Grantors will
take any actions reasonably necessary to cause (a) the issuers of uncertificated securities which are Pledged Collateral with respect to which a Grantor owns 50% or more of the Equity Interests of the issuer of such Pledged Collateral and
(b) any securities intermediary which is the holder of any Pledged Collateral, to cause the Collateral Agent to have and retain Control over such Pledged Collateral (subject to the terms of the Intercreditor Agreement). Without limiting the
foregoing, each applicable Grantor will use its commercially reasonable efforts to cause, with respect to Pledged Collateral held with a securities intermediary in an account with an aggregate asset value of $2,500,000 or more, such securities
intermediary to enter into a control agreement with the Collateral Agent, in form and substance reasonably satisfactory to the Collateral Agent, giving the Collateral Agent Control (subject to the terms of the Intercreditor Agreement). 

Section 4.06. Pledged Collateral. 

(a) Registration in Nominee Name; Denominations. Subject to the terms of the Intercreditor Agreement, the Collateral Agent, on behalf
of the Secured Parties, shall hold certificated Pledged Collateral in the name of the applicable Grantor, endorsed or assigned in blank or in favor of the Collateral Agent, but following the occurrence and during the continuance of an Event of
Default shall have the right (in its sole and absolute discretion) to hold the Pledged Collateral in its own name as pledgee, or in the name of its nominee (as pledgee or as sub-agent). Each Grantor will promptly give to the Collateral Agent copies
of any notices or other communications received by it with respect to Pledged Collateral registered in the name of such Grantor. Subject to the terms of the Intercreditor Agreement, following the occurrence and during the continuance of an Event of
Default, the Collateral Agent shall at all times have the right to exchange the certificates representing Pledged Collateral for certificates of smaller or larger denominations for any purpose consistent with this Security Agreement. 

(b) Each Grantor acknowledges and agrees that (i) to the extent each interest in any limited liability company or limited partnership
controlled now or in the future by such Grantor and pledged hereunder is a “security” within the meaning of Article 8 of the UCC and is governed by Article 8 of the UCC, such interest shall be certificated and (ii) each such interest
shall at all times hereafter continue to be such a security and represented by such certificate. Each Grantor further acknowledges and agrees that with respect to any interest in any limited liability company or limited partnership controlled now or
in the future by such Grantor and pledged hereunder that is not a “security” within the meaning of Article 8 of the UCC, such Grantor shall at no time elect to treat any such interest as a “security” within the meaning of Article
8 of the UCC, nor shall such interest be represented by a certificate, unless such Grantor provides prior written notification to the Collateral Agent of such election and such interest is thereafter represented by a certificate that is promptly
delivered to the Collateral Agent pursuant to the terms hereof. 

  
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 (c) Any Indebtedness of any Subsidiary that is not a Loan Party owing to the Borrower or any
Subsidiary that is a Loan Party in excess of $1,000,000 shall be or become evidenced by a promissory note or other instrument, and such note or instrument shall be promptly pledged and delivered to the Collateral Agent, duly endorsed in a manner
reasonably satisfactory to the Collateral Agent. 
 (d) Exercise of Rights in Pledged Collateral. Subject, in each case, to the
Intercreditor Agreement, 
 (i) Without in any way limiting the foregoing and subject to clause (ii) below, each Grantor
shall have the right to exercise all voting rights or other rights relating to the Pledged Collateral for all purposes not inconsistent with this Security Agreement, the ABL Credit Agreement or any other Loan Document; provided
however, that no vote or other right shall be exercised or action taken which would reasonably be expected to have the effect of materially and adversely impairing the rights of the Collateral Agent in respect of the Pledged Collateral. 

(ii) Each Grantor will permit the Collateral Agent or its nominee at any time after the occurrence and during the continuance
of an Event of Default, without notice, to exercise all voting rights or other rights relating to Pledged Collateral, including, without limitation, exchange, subscription or any other rights, privileges, or options pertaining to any Equity Interest
or Investment Property constituting Pledged Collateral as if it were the absolute owner thereof. 
 (iii) Each Grantor shall
be entitled to receive and retain any and all dividends, interest, principal and other distributions paid on or distributed in respect of the Pledged Collateral to the extent and only to the extent that such dividends, interest, principal and other
distributions are permitted by, and otherwise paid or distributed in accordance with, the terms and conditions of the ABL Credit Agreement, the other Loan Documents and applicable law; provided, however, that any non-cash dividends,
interest, principal or other distributions that would constitute Pledged Collateral, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Collateral or received in
exchange for Pledged Collateral or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the
Pledged Collateral, and, if received by any Grantor, shall not be commingled by such Grantor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the ratable benefit of the Secured
Parties and shall be forthwith delivered to the Collateral Agent in the same form as so received (with any necessary endorsement or instrument of assignment). The proviso to the first sentence of this clause (iii) shall not apply to dividends
between or among the Borrower and the other Loan Parties only of property subject to a perfected security interest under this Security Agreement; provided that the Borrower notifies the Collateral Agent in writing at the time of such dividend
and takes any actions the Collateral Agent reasonably specifies to ensure the continuance of its perfected security interest in such property under this Security Agreement. 

  
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 Section 4.07. Intellectual Property. 

(a) Upon the occurrence and during the continuance of an Event of Default, each Grantor will use its commercially reasonable efforts to obtain
all consents and approvals necessary or appropriate for the assignment to, or for the benefit of, the Collateral Agent of any License to which such Grantor is a party to enable the Collateral Agent to enforce the security interests granted
hereunder. 
 (b) Each Grantor shall notify the Collateral Agent promptly if it knows or reasonably expects that any application or
registration relating to any Patent, Trademark or Copyright (now or hereafter existing) material to the conduct of such Grantor’s business is reasonably likely to become abandoned, canceled, invalidated or dedicated to the public, or of any
materially adverse determination or development (including the institution of, or any such material determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court)
regarding such Grantor’s ownership of any Patent, Trademark or Copyright material to the conduct of such Grantor’s business, its right to register the same, or to keep and maintain the same. 

(c) Each Grantor shall not, either directly or through any agent, employee, licensee or designee, file an application for the registration of
any material Patent, Trademark or Copyright with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency without giving the Collateral Agent written notice thereof (not later than the next
date on which financial information is required to be delivered under Section 5.01(b) of the ABL Credit Agreement), and, upon request of the Collateral Agent, such Grantor shall execute and deliver any and all security agreements or
other instruments as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Patent, Trademark or Copyright, and the General Intangibles of such Grantor relating thereto or represented thereby.

 (d) Each Grantor shall take all actions necessary or reasonably requested by the Collateral Agent to maintain and pursue each material
application, to obtain the relevant registration and to maintain the registration of each of the Patents, Trademarks and Copyrights (now or hereafter existing) owned by such Grantor and material to the conduct of such Grantor’s business, except
in cases where, in the ordinary course of business consistent with past practice, such Grantor reasonably decides to not apply for registration, abandon or allow to lapse, dedicate to the public or expire any Patent, Trademark or Copyright,
including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and, if consistent with its good faith business judgment and past practice, to initiate opposition and interference and cancellation proceedings
against third parties. 
 (e) Consistent with each Grantor’s past practice, each Grantor shall, unless it shall reasonably determine
that a Patent, Trademark or Copyright is not material to the conduct of its business, if consistent with its good faith business judgment, promptly sue for infringement, misappropriation or dilution of such Patent, Trademark or Copyright and recover

  
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any and all damages for such infringement, misappropriation or dilution, and shall take such other actions as such Grantor determines in its good faith business judgment are appropriate under the
circumstances to protect such Patent, Trademark or Copyright. If any Grantor initiates such a suit for infringement, misappropriation or dilution, such Grantor agrees to promptly notify the Collateral Agent of such suit. 

Section 4.08. Commercial Tort Claims. Each Grantor shall promptly notify the Collateral Agent of any Commercial Tort Claim having
a value in excess of $1,000,000 acquired by it for which such Grantor has filed a complaint in a court of competent jurisdiction, and, unless the Collateral Agent otherwise consents, such Grantor shall update Exhibit B, thereby granting to
the Collateral Agent a first priority security interest in such Commercial Tort Claim (subject to the terms of the Intercreditor Agreement). 

Section 4.09. Letter-of-Credit Rights. Subject to the Intercreditor Agreement, if any Grantor is or becomes the beneficiary of a
letter of credit having a face amount in excess of $1,000,000, such Grantor shall promptly notify the Collateral Agent thereof and, unless the Collateral Agent otherwise consents, cause the issuer and/or confirmation bank to (i) consent to the
assignment of any Letter-of-Credit Rights to the Collateral Agent and (ii) agree to direct all payments thereunder following the occurrence and during the continuance of an Event of Default or a Liquidity Event to the Collateral Agent Account
for application to the Secured Obligations, in accordance with the provisions of the Credit Agreement, all in form and substance reasonably satisfactory to the Collateral Agent. 

Section 4.10. No Interference. Each Grantor agrees that it will not interfere with any right, power and remedy of the Collateral
Agent provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Collateral Agent of any one or more of such rights, powers or remedies.

 Section 4.11. Insurance. 

(a) In the event any Collateral is located in any area that has been designated by the Federal Emergency Management Agency as a “Special
Flood Hazard Area”, the applicable Grantor shall purchase and maintain flood insurance on such Collateral (including any personal property which is located on any real property leased by such Loan Party within a “Special Flood Hazard
Area”). The amount of all insurance required by this Section shall at a minimum comply with applicable law, including the Flood Disaster Protection Act of 1973, as amended. All premiums on such insurance shall be paid when due by such Grantor,
and copies of the policies delivered to the Collateral Agent. If any Grantor fails to obtain any insurance as required by this Section, the Collateral Agent at the direction of the Required Lenders may obtain such insurance at the Borrower’s
expense. By purchasing such insurance, the Collateral Agent shall not be deemed to have waived any Default arising from the Grantors’ failure to maintain such insurance or pay any premiums therefor. 

(b) All insurance policies required under Section 5.09 of the ABL Credit Agreement shall name the Collateral Agent (for the
benefit of the Collateral Agent and the other Secured Parties) as an additional insured or as loss payee, as applicable, and shall contain loss payable clauses or mortgagee clauses, through endorsements in form and substance reasonably satisfactory
to the Collateral Agent. 
 Section 4.12. Collateral Access Agreements. Each Grantor shall use commercially reasonable efforts
to obtain a Collateral Access Agreement, from the lessor of each of its leased warehouse and distribution facilities, any holder of indebtedness secured by any Grantor’s real property, as contemplated by Section 6.01(e) of the ABL
Credit Agreement, and the bailee, warehouseman or other third party with respect to any warehouse or other location (other than any retail store), in each case where Collateral is stored or located. Each Grantor shall timely and, except as would not
reasonably be expected to have a Material Adverse Effect, fully pay and perform its obligations under all leases and other agreements with respect to each leased location or third-party warehouse where any Collateral is or may be located. 

  
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 ARTICLE V 

Remedies 

Section 5.01. Remedies. 

(a) Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may exercise any or all of the following
rights and remedies: 
 (i) those rights and remedies provided in this Security Agreement, the ABL Credit Agreement or any
other Loan Document; provided that this Section 5.01(a) shall not be understood to limit any rights available to the Agents and the Lenders prior to an Event of Default; 

(ii) those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected
Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff or bankers’ Lien) when a debtor is in default under a security agreement; 

(iii) give notice of sole control or any other instruction under any Credit Card Notification, DDA Notification, Blocked
Account Agreement, Collateral Access Agreement or any other control or similar agreement and take any action provided therein with respect to the applicable Collateral; 

(iv) without notice (except as specifically provided in Section 7.01 or elsewhere herein), demand or advertisement
of any kind to any Grantor or any other Person, enter the premises of any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an
option or options to purchase or otherwise dispose of, deliver or realize upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without
notice and may take place at such Grantor’s premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Collateral Agent may deem commercially reasonable; and 

(v) concurrently with written notice to the Grantors, transfer and register in its name or in the name of its nominee the whole
or any part of the Pledged Collateral, to exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations, to exercise the voting and all other rights as a holder
with respect thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise act with respect to the Pledged Collateral as though the Collateral Agent was the outright owner thereof. 

  
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 (b) Each Grantor acknowledges and agrees that the compliance by the Collateral Agent, on behalf
of the Secured Parties, with any applicable state or federal law requirements in connection with a disposition of the Collateral will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. 

(c) The Collateral Agent shall have the right upon any public sale or sales and, to the extent permitted by law, upon any private sale or
sales, to purchase for the benefit of the Collateral Agent and the Secured Parties, the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption each Grantor hereby expressly releases. 

(d) Until the Collateral Agent is able to effect a sale, lease, transfer or other disposition of Collateral, the Collateral Agent shall have
the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or the value of the Collateral, or for any other purpose deemed appropriate by the Collateral Agent. The
Collateral Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Collateral Agent’s remedies (for the benefit of the Collateral Agent and Secured Parties), with
respect to such appointment without prior notice or hearing as to such appointment. 
 (e) If, after the ABL Credit Agreement has terminated
by its terms and all of the Obligations have been paid in full, there remain Secured Swap Obligations outstanding, the Required Secured Parties may exercise the remedies provided in this Section 5.01 upon the occurrence of any event
which would allow or require the termination or acceleration of such Secured Swap Obligations pursuant to the terms of any relevant Swap Agreement. 

(f) Notwithstanding the foregoing, neither the Collateral Agent nor the Secured Parties shall be required to (i) make any demand upon, or
pursue or exhaust any of their rights or remedies against, the Grantors, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with
respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order or
(iii) effect a public sale of any Collateral. 
 (g) Each Grantor recognizes that the Collateral Agent may be unable to effect a public
sale of any or all the Pledged Collateral and may be compelled to resort to one or more private sales thereof. Each Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale
were a public sale and, 

  
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notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private. The
Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral to register such securities for public sale under the
Securities Act of 1933, as amended, or under applicable state securities laws, even if any Grantor and the issuer would agree to do so (it being acknowledged and agreed that no Grantor shall have any obligation hereunder to do so). 

(h) Notwithstanding the foregoing, any rights and remedies provided in this Section 5.01 shall be subject to the Intercreditor
Agreement. 
 Section 5.02. Grantor’s Obligations Upon Default. Upon the request of the Collateral Agent after the
occurrence and during the continuance of an Event of Default, each Grantor will: 
 (a) assemble and make available to the Collateral Agent
the Collateral and all books and records relating thereto at any place or places reasonably specified by the Collateral Agent, whether at such Grantor’s premises or elsewhere; and 

(b) permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to enter, occupy and use any premises where all or
any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or
the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay any Grantor for such use and occupancy. 

Section 5.03. Grant of Intellectual Property License. For the purpose of enabling the Collateral Agent to exercise the rights and
remedies under this Article V at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby (a) grants to the Collateral Agent, for the benefit of the Collateral Agent and the
Secured Parties, to the extent of such Grantor’s rights and to the extent permitted by applicable Licenses, an irrevocable (until this Security Agreement is terminated), nonexclusive license (exercisable without payment of royalty or other
compensation to such Grantor) to use, license or sublicense any intellectual property rights now owned or hereafter acquired by such Grantor, wherever the same may be located, and including in such license access to all media in which any of the
licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof and (b) to the extent of such Grantor’s rights and to the extent permitted by applicable Licenses, irrevocably
agrees that, at any time and from time to time following the occurrence and during the continuance of an Event of Default, the Collateral Agent may sell any Grantor’s Inventory directly to any Person, including without limitation Persons who
have previously purchased any Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Collateral Agent’s rights under this Security Agreement, may (subject to any restrictions contained in
applicable third party licenses entered into by a Grantor) sell Inventory which bears any Trademark owned by or licensed to any Grantor and any Inventory that is covered by any Copyright owned by or licensed to such Grantor, and the Collateral Agent
may finish any work in process and affix any relevant Trademark owned by or licensed to any Grantor and sell such Inventory as provided herein. The 

  
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use of the license granted pursuant to clause (a) of the preceding sentence by the Collateral Agent may be exercised, at the option of the Collateral Agent, only upon the occurrence and
during the continuance of an Event of Default; provided, however, that any license, sublicense or other transaction entered into by the Collateral Agent in accordance herewith shall be binding upon each Grantor notwithstanding any
subsequent cure of an Event of Default. 
 ARTICLE VI 

Account Verification; Attorney In Fact; Proxy 

Section 6.01. Account Verification. The Collateral Agent may at any time and from time to time following the occurrence and during
the continuance of an Event of Default, in the Collateral Agent’s own name, in the name of a nominee of the Collateral Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of
such Grantor, parties to contracts with such Grantor and obligors in respect of Instruments of such Grantor to verify with such Persons, to the Collateral Agent’s satisfaction, the existence, amount, terms of, and any other matter relating to,
Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables that are Collateral. 
 Section 6.02.
Authorization for Secured Party to Take Certain Action. 
 (a) Each Grantor irrevocably authorizes the Collateral Agent and appoints
the Collateral Agent as its attorney in fact (i) at any time and from time to time in the sole discretion of the Collateral Agent, (1) to execute on behalf of such Grantor as debtor and to file financing statements necessary or desirable
in the Collateral Agent’s reasonable discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral, (2) to file a carbon, photographic or other reproduction of this
Security Agreement or any financing statement with respect to the Collateral as a financing statement and to file any other financing statement or amendment of a financing statement (which would not add new collateral or add a debtor, except as
otherwise provided for herein or in any other Loan Document) in such offices as the Collateral Agent in its reasonable discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Collateral Agent’s
security interest in the Collateral, (3) to contact and enter into one or more agreements with the issuers of uncertificated securities which are Pledged Collateral or with securities intermediaries holding Pledged Collateral as may be
necessary or advisable to give the Collateral Agent Control over such Pledged Collateral (subject to the terms of the Intercreditor Agreement), and (4) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except
for such Liens as are permitted hereunder); (ii) at any time following the occurrence and during the continuance of an Event of Default, (1) to endorse and collect any cash proceeds of the Collateral and to apply the proceeds of any
Collateral received by the Collateral Agent to the Secured Obligations as provided herein or in the ABL Credit Agreement or any other Loan Document, subject to the terms of the Intercreditor Agreement, (2) to demand payment or enforce payment
of the Receivables in the name of the Collateral Agent or any Grantor and to endorse any and all checks, drafts and other instruments for the payment of money relating to the Receivables, (3) to sign any Grantor’s name on any invoice or
bill of lading relating to the Receivables, drafts against any Account Debtor of such Grantor, assignments and verifications of Receivables, (4) to exercise all of any Grantor’s rights and remedies with respect to the collection of the
Receivables 

  
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and any other Collateral, (5) to settle, adjust, compromise, extend or renew the Receivables, (6) to settle, adjust or compromise any legal proceedings brought to collect Receivables,
(7) to prepare, file and sign any Grantor’s name on a proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (8) to prepare, file and sign any Grantor’s name on any notice of Lien, assignment
or satisfaction of Lien or similar document in connection with the Receivables, (9) to change the address for delivery of mail addressed to any Grantor to such address as the Collateral Agent may designate and to receive, open and dispose of
all mail addressed to such Grantor; and (iii) to do all other acts and things necessary to carry out the terms of this Security Agreement; and each Grantor agrees to reimburse the Collateral Agent on demand for any reasonable payment made or
any reasonable, documented expense incurred by the Collateral Agent in connection with any of the foregoing; provided that, this authorization shall not relieve any Grantor of any of its obligations under this Security Agreement or under the
ABL Credit Agreement. 
 (b) All acts of said attorney or designee are hereby ratified and approved by the Grantors. The powers conferred on
the Collateral Agent, for the benefit of the Collateral Agent and Secured Parties, under this Section 6.02 are solely to protect the Collateral Agent’s interests in the Collateral and shall not impose any duty upon the Collateral
Agent or any Secured Party to exercise any such powers. 
 Section 6.03. PROXY. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND
APPOINTS THE COLLATERAL AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.02 ABOVE) WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN
ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED
COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY
ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE AND DURING THE CONTINUANCE
OF AN EVENT OF DEFAULT. 
 Section 6.04. NATURE OF APPOINTMENT; LIMITATION OF DUTY. THE APPOINTMENT OF THE COLLATERAL AGENT AS
PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.15. NOTWITHSTANDING ANYTHING
CONTAINED HEREIN, NEITHER THE COLLATERAL AGENT, NOR ANY SECURED PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR

  
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OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THEIR OWN GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES. 

ARTICLE VII 
 General
Provisions 
 Section 7.01. Waivers. Each Grantor hereby waives notice of the time and place of any public sale or the time
after which any private sale or other disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to the Grantors, addressed as
set forth in Article VIII, at least ten days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made. To the maximum extent permitted by applicable law,
each Grantor waives all claims, damages and demands against the Collateral Agent or any Secured Party arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence or willful misconduct
of the Collateral Agent or such Secured Party as finally determined by a court of competent jurisdiction. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and
covenants not to assert against the Collateral Agent or any Secured Party, any valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which,
but for this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise. Except as otherwise
specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 

Section 7.02. Limitation on Collateral Agent’s and Secured Party’s Duty with Respect to the Collateral. The
Collateral Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. The Collateral Agent and each Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Neither
the Collateral Agent nor any Secured Party shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Collateral Agent or such Secured Party, or any income thereon or as
to the preservation of rights against prior parties or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges
and agrees that it would be commercially reasonable for the Collateral Agent (i) to fail to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to transform 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 governmental or
third party consents for the collection or disposition of Collateral to be collected 

  
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or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens 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 the Grantor, for expressions of interest in acquiring all or any
portion of such 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 capacity 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, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection or disposition of Collateral
or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Collateral Agent, to obtain the services of other brokers, investment bankers,
consultants and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this Section 7.02 is to provide non-exhaustive indications of
what actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 7.02. Without limitation upon the foregoing, nothing contained in this Section 7.02 shall be construed to grant any rights to any Grantor or
to impose any duties on the Collateral Agent that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 7.02. 

Section 7.03. Compromises and Collection of Collateral. Each Grantor and the Collateral Agent recognize that setoffs,
counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in
litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each Grantor agrees that the Collateral Agent may at any time and from time to time, if an
Event of Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Collateral Agent in its sole discretion shall determine or abandon any Receivable, and any
such action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith based on information known to it at the time it takes any such action. 

Section 7.04. Secured Party Performance of Debtor Obligations. Without having any obligation to do so, the Collateral Agent may
perform or pay any obligation which any Grantor has agreed to perform or pay under this Security Agreement, and the Grantor shall reimburse the Collateral Agent for any amounts paid by the Collateral Agent pursuant to this Section 7.04.
Each Grantor’s obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand. 

  
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 Section 7.05. Specific Performance of Certain Covenants. Each Grantor acknowledges
and agrees that a breach of any of the covenants contained in Sections 4.01(d), 4.01(e), 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.11 or 5.02, will cause irreparable injury to
the Collateral Agent and the Secured Parties and that the Collateral Agent and the Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Collateral Agent or the Secured
Parties to seek and obtain specific performance of other obligations of any Grantor contained in this Security Agreement, that the covenants of such Grantor contained in the Sections referred to in this Section 7.05 shall be specifically
enforceable against such Grantor. 
 Section 7.06. Dispositions Not Authorized. No Grantor is authorized to sell or otherwise
dispose of the Collateral except as set forth in Section 4.01(d), and, notwithstanding any course of dealing between any Grantor and the Collateral Agent or other conduct of the Collateral Agent, no authorization to sell, lease or
transfer or otherwise dispose of the Collateral (except as set forth in Section 4.01(d)) shall be binding upon the Collateral Agent or the Secured Parties unless such authorization is in writing signed by the Collateral Agent with the
consent or at the direction of the Required Secured Parties. 
 Section 7.07. No Waiver; Amendments; Cumulative Remedies. No
delay or omission of the Collateral Agent, the Administrative Agent or any Secured Party to exercise any right or remedy granted under this Security Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an
acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the exercise of any other right or remedy. No waiver, amendment or other variation of the terms,
conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing signed by the Collateral Agent with the concurrence or at the direction of the Lenders required under Section 9.02 of the ABL Credit
Agreement and then only to the extent in such writing specifically set forth. All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative, and all shall be available to the Collateral Agent, the Administrative
Agent and the Secured Parties until the Secured Obligations have been paid in full. 
 Section 7.08. Limitation by Law; Severability
of Provisions. All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement
are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled to be recorded or
registered, in whole or in part. Any provision in this Security Agreement that is held to be inoperative, unenforceable or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable or invalid without affecting the
remaining provisions in that jurisdiction or the operation, enforceability or validity of that provision in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable. 

Section 7.09. Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective should any
petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for 

  
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the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of its Grantor’s assets, and shall continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 

Section 7.10. Benefit of Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the
benefit of each Grantor, each Agent and the Secured Parties and their respective successors and permitted assigns (including all Persons who become bound as a debtor to this Security Agreement), except that no Grantor shall have the right to assign
its rights or delegate its obligations under this Security Agreement or any interest herein without the prior written consent of the Collateral Agent. No sales of participations, assignments, transfers or other dispositions of any agreement
governing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Collateral Agent, for the benefit of the Collateral Agent and the Secured Parties, hereunder. 

Section 7.11. Survival of Representations. All representations and warranties of each Grantor contained in this Security Agreement
shall survive the execution and delivery of this Security Agreement. 
 Section 7.12. Taxes and Expenses. Each Grantor jointly
and severally agrees to pay any taxes payable or ruled payable by Federal or State authority in respect of this Security Agreement, together with interest and penalties, if any. Each Grantor jointly and severally agrees to reimburse each Agent for
any and all reasonable documented out-of-pocket expenses paid or incurred by such Agent in connection with the preparation, execution, delivery, administration, collection and enforcement of this Security Agreement and in the audit, analysis,
administration, collection, preservation or sale of the Collateral (including the reasonable documented expenses and charges associated with any periodic or special audit of the Collateral to the extent provided in the ABL Credit Agreement). Any and
all costs and expenses incurred by any Grantor in the performance of actions required pursuant to the terms hereof shall be borne solely by such Grantor. 

Section 7.13. Additional Subsidiaries. Pursuant to and in accordance with Section 5.10 of the ABL Credit Agreement,
each Domestic Subsidiary (other than any Immaterial Subsidiary (except as otherwise provided in Section 5.10(e) of the ABL Credit Agreement), Unrestricted Subsidiary or Foreign Subsidiary Holding Company) of the Borrower that was not in
existence or not a Subsidiary on the date of the ABL Credit Agreement is required to enter in this Security Agreement as a Subsidiary Party promptly upon becoming a Subsidiary. Upon execution and delivery by the Collateral Agent and a Subsidiary of
an instrument in the form of Exhibit H, such Subsidiary shall become a Subsidiary Party hereunder with the same force and effect as if originally named as a Subsidiary Party herein. The execution and delivery of any such instrument shall
not require the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Security Agreement. 

  
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 Section 7.14. Headings. The Article and Section headings and the Table of Contents in
this Security Agreement are for convenience of reference only and shall not govern or be taken into consideration in the interpretation of any of the terms and provisions of this Security Agreement. 

Section 7.15. Termination or Release. 

(a) This Security Agreement shall continue in effect until (i) the ABL Credit Agreement has terminated pursuant to its express terms and
(ii) all of the Secured Obligations (other than contingent indemnity obligations) have been indefeasibly paid and performed in full (or with respect to any outstanding Letters of Credit, have been cash collateralized as required by the ABL
Credit Agreement) and no commitments of any Agent or the Lenders which would give rise to any Secured Obligations are outstanding. 
 (b) A
Subsidiary Party shall automatically be released from its obligations hereunder, and the security interests created hereunder in the Collateral of such Subsidiary Party shall be automatically released, upon the consummation of any transaction
permitted pursuant to the ABL Credit Agreement as a result of which such Subsidiary Party ceases to be a Subsidiary. 
 (c) Upon any sale,
lease, transfer or other disposition by any Grantor of any Collateral that is permitted under Section 4.01(d) to any Person that is not another Grantor, or upon the effectiveness of any written consent to the release of the security
interest granted hereby in any Collateral pursuant to Section 9.02 of the ABL Credit Agreement, the security interest in such Collateral shall be automatically released. 

(d) In connection with any termination or release pursuant to paragraph (a), (b) or (c) above, the Collateral Agent shall promptly
execute and deliver to any Grantor, at such Grantor’s expense, all UCC termination statements and similar documents that such Grantor shall reasonably request to evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 7.15 shall be without recourse to, or representation or warranty by, the Collateral Agent or any Secured Party. Without limiting the provisions of Section 7.12, the Borrower shall reimburse the
Collateral Agent upon demand for all reasonable and documented costs and out-of-pocket expenses, including the reasonable and documented fees, charges and expenses of counsel, incurred by it in connection with any action contemplated by this
Section 7.15. 
 Section 7.16. Entire Agreement. This Security Agreement, together with the other Loan Documents,
embodies the entire agreement and understanding between each Grantor and the Collateral Agent relating to the Collateral and supersedes all prior agreements and understandings between any Grantor and the Collateral Agent relating to the Collateral.

 Section 7.17. GOVERNING LAW. THIS SECURITY AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK. 

  
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 Section 7.18. CONSENT TO JURISDICTION. EACH GRANTOR HEREBY IRREVOCABLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT
OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GRANTOR 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 COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH GRANTOR 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 SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY AGENT OR ANY SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH GRANTOR 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 VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THE FIRST SENTENCE OF THIS PARAGRAPH. EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY 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. TO THE EXTENT PERMITTED BY LAW, EACH PARTY TO THIS SECURITY AGREEMENT HEREBY IRREVOCABLY WAIVES PERSONAL
SERVICE OF ANY AND ALL PROCESS UPON IT AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO IT AT ITS ADDRESS FOR NOTICES AS PROVIDED FOR IN SECTION 8.01. NOTHING IN THIS SECURITY
AGREEMENT OR ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS SECURITY AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

Section 7.19. WAIVER OF JURY TRIAL. EACH GRANTOR, EACH AGENT AND EACH SECURED PARTY 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 SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH GRANTOR, EACH AGENT AND EACH SECURED PARTY HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY 

  
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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 SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 7.20. Indemnity. Each Grantor hereby agrees to indemnify each Agent and the Secured Parties, and their respective
successors, assigns, agents and employees, from and against any and all losses, claims, damages, penalties, liabilities and related expenses (including, without limitation, all expenses of litigation or preparation therefor whether or not any Agent
or any Secured Party is a party thereto) imposed on, incurred by or asserted against any Agent or the Secured Parties, or their respective successors, assigns, agents and employees, in any way relating to or arising out of this Security Agreement or
the ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral (including any claim for Patent, Trademark or Copyright infringement); provided that such indemnity shall not be
available to the extent that such losses, claims, damages, penalties, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted primarily from the gross negligence or
willful misconduct of any such indemnitee. 
 Section 7.21. Counterparts. This Security Agreement may be executed in
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 Security Agreement by facsimile transmission shall be effective as
delivery of a manually signed counterpart of this Security Agreement. This Security Agreement shall become effective as to any Grantor when a counterpart hereof executed on behalf of such Grantor shall have been delivered to each Agent and a
counterpart hereof shall have been executed on behalf of each Agent, and thereafter shall be binding upon such Grantor and each Agent and their respective permitted successors and assigns, and shall inure to the benefit of such Grantor, each Agent
and the other Secured Parties and their respective successors and assigns, except that no Grantor shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such assignment or
transfer shall be void) except as expressly contemplated by this Security Agreement or the ABL Credit Agreement. This Security Agreement shall be construed as a separate agreement with respect to each Grantor and may be amended, modified,
supplemented, waived or released with respect to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder. 

Section 7.22. INTERCREDITOR AGREEMENT GOVERNS. 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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 Section 7.23. Delivery of Collateral. Prior to the Term Loan First Lien Collateral
Transition Date, to the extent any Grantor is required hereunder to deliver Collateral to the Collateral Agent for purposes of possession and control and is unable to do so as a result of having previously delivered such Collateral to the Term Loan
Agent in accordance with the terms of the Term Loan Security Documents, such Grantor’s obligations hereunder with respect to such delivery shall be deemed satisfied by the delivery to the Term Loan Agent, acting as a gratuitous bailee of the
Collateral Agent. 
 Section 7.24. Mortgages. 

(a) In the case of a conflict between this Security Agreement and the Mortgages with respect to Collateral that is real property (including
Fixtures), the Mortgages shall govern. In all other conflicts between this Security Agreement and the Mortgages, this Security Agreement shall govern. 

(b) In the event that the Term Loan Obligations shall have been paid in full (other than unripened or contingent indemnity obligations under
the relevant Loan Documents for which no demand has been made) with the proceeds of any substantially contemporaneous issuance of unsecured Indebtedness or Qualified Equity Interests of any Grantor, and the Senior Secured Term Facility Credit
Agreement shall have been terminated, the Borrower shall, at the Borrower’s expense (i) amend the Revolving Facility Mortgages concerning the Mortgaged Properties located in any State that imposes a mortgage tax, in each case to increase
the amount of Secured Obligations secured by such Revolving Facility Mortgage to 100% of the fair market value of such Mortgaged Property at such time, as determined by the Borrower in good faith and reasonably acceptable to the Collateral Agent and
(ii) cause the amount of title insurance policy on each Mortgaged Property to be increased to the fair market value of such Mortgaged Property at such time as so determined. The Borrower shall pay any and all increased mortgage taxes associated
with the Mortgaged Properties located in the States referred to in clause (i) above and shall cause to be filed any documents, agreements and instruments which may be required by law or which the Collateral Agent may reasonably request to carry
out the terms and conditions of this paragraph (b). 
 ARTICLE VIII 

Notices 

Section 8.01. Sending Notices. Any notice required or permitted to be given under this Security Agreement (i) sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received or (ii) sent by facsimile shall be deemed to have been given when sent and when receipt has been confirmed by telephone
(provided that if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient), in each case addressed to the Borrower at the address set
forth in Section 9.01 of the ABL Credit Agreement, and to the Agents and the Lenders at the addresses set forth in accordance with Section 9.01 of the ABL Credit Agreement. 

Section 8.02. Change in Address for Notices. Each of the Grantors, the Agents and the Lenders may change the address or facsimile
number for service of notice upon it by a notice in writing to the other parties. 

  
 30 

 ARTICLE IX 

The Agent 
 Wells Fargo
Bank, National Association has been appointed Collateral Agent for the Lenders hereunder pursuant to Article VIII of the ABL Credit Agreement. It is expressly understood and agreed by the parties to this Security Agreement that any
authority conferred upon the Collateral Agent hereunder is subject to the terms of the delegation of authority made by the Lenders to the Collateral Agent pursuant to the ABL Credit Agreement, and that the Collateral Agent has agreed to act (and any
successor Collateral Agent shall act) as such hereunder only on the express conditions contained in such Article VIII. Any successor Collateral Agent appointed pursuant to Article VIII of the ABL Credit Agreement shall be
entitled to all the rights, interests and benefits of the Collateral Agent hereunder. 
 [Signature Page Follows] 

  
 31 

 IN WITNESS WHEREOF, each Grantor and each Agent have executed this Security Agreement as of the
date first above written. 
  

					
	PETCO ANIMAL SUPPLIES, INC.
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	 Executive Vice President &
 Chief Financial
Officer

	
	 INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC.,

PETCO ANIMAL SUPPLIES STORES, INC.,
 PETCO PET INSURANCE CENTER,
INC.,

	PETCO SOUTHWEST, INC.
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	President
	
	PETPEOPLE, INC.
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	Chief Financial Officer
	
	E-PET SERVICES, LLC,
		
	By:	 	PETCO ANIMAL SUPPLIES STORES, INC.
	Its:	 	Sole Member
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	President

  
 [Signature Page to the
Pledge and Security Agreement] 

 
					
	PETCO ASIA, LLC,
		
	By:	 	INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC.
	Its:	 	Sole Member
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	President
	
	PETCO PUERTO RICO, LLC,
		
	By:	 	PETCO ANIMAL SUPPLIES STORES, INC.
	Its:	 	Sole Member
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	President
	
	PETCO SUPPORT SERVICES, LLC,
		
	By:	 	PETCO ANIMAL SUPPLIES STORES, INC.
	Its:	 	Sole Member
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	President

  
 [Signature Page to the
Pledge and Security Agreement] 

 
					
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	 /s/ —

		 	Name:	 	—
		 	Title:	 	Authorized Officer

  
 [Signature Page to the
Pledge and Security Agreement] 

 
					
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent
		
	By:	 	 /s/ John D. Toronto

		 	Name:	 	John D. Toronto
		 	Title:	 	Managing Director
		
	By:	 	 /s/ Christopher Reo Day

		 	Name:	 	Christopher Reo Day
		 	Title:	 	Vice President

  
 [Signature Page to the
Pledge and Security Agreement] 

 Schedule I to 

the Pledge and 
 Security Agreement

 EQUITY INTERESTS 
  

											
	Name of Owner	  	Name of Issuer	  	Percentage of
Issuer’s Outstanding
Shares Other
Interest Owned	 	 	Certificate Number	  	Class of Stock
					
	 Petco Animal Supplies, Inc.
	  	 Petco Animal Supplies Stores, Inc.
	  	 	100	% 	 	2	  	Common Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 International Pet Supplies and Distribution, Inc.
	  	 	100	% 	 	2	  	Common Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 Petco Southwest, Inc.
	  	 	100	% 	 	2	  	Capital Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 E-Pet Services, LLC
	  	 	100	% 	 	N/A	  	Membership Interests
					
	 Petco Animal Supplies Stores, Inc.
	  	 Red Ruff Investment Company
	  	 	100	% 	 	C-1	  	Common Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 Petco Pet Insurance Center, Inc.
	  	 	100	% 	 	C-1	  	Common Stock
					
	 International Pet Supplies and Distribution, Inc.
	  	 Petco Asia, LLC
	  	 	100	% 	 	N/A	  	Membership Interests
					
	 Petco Animal Supplies Stores, Inc.
	  	 PetPeople, Inc.
	  	 	100	% 	 	1	  	Common Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 Complete Petmart, Inc.
	  	 	100	% 	 	5	  	Common Stock
					
	 Petco Animal Supplies Stores, Inc.
	  	 Petco Puerto Rico, LLC
	  	 	100	% 	 	Uncertificated	  	Membership Interests
					
	 Petco Animal Supplies Stores, Inc.
	  	 Petco Support Services, LLC
	  	 	100	% 	 	Uncertificated	  	Membership Interests

 DEBT SECURITIES 

None. 

 Exhibit A 

(See Section 3.02 of Security Agreement) 

LETTER OF CREDIT RIGHTS 
 None.

 CHATTEL PAPER 
 None. 

 Exhibit B 

(See Article II) 
 COMMERCIAL TORT
CLAIMS 
 None. 

 Exhibit C 

(See Section 3.01 of Security Agreement) 

OFFICES IN WHICH FINANCING STATEMENTS AND SECURITY AGREEMENTS HAVE BEEN FILED 

 

			
	 Grantor
	  	 Filing Office

	Petco Animal Supplies, Inc.	  	Delaware Secretary of State
		
	Petco Animal Supplies Stores, Inc.	  	Delaware Secretary of State
		
	International Pet Supplies and Distribution, Inc.	  	California Secretary of State
		
	Petco Southwest, Inc.	  	California Secretary of State
		
	Petco Pet Insurance Center, Inc.	  	Delaware Secretary of State
		
	Petco Asia, LLC	  	Delaware Secretary of State
		
	E-Pet Services, LLC	  	Virginia State Corporation Commission
		
	PetPeople, Inc.	  	California Secretary of State
		
	Petco Puerto Rico, LLC	  	Delaware Secretary of State
		
	Petco Support Services, LLC	  	California Secretary of State

 Exhibit D 

(See Section 4.04 of Security Agreement) 

AMENDMENT 
 This Amendment, dated
as of , is delivered pursuant to Section 4.04 of the Security Agreement as defined below. All defined terms herein shall have the meanings ascribed thereto or incorporated by reference in the Security Agreement. The undersigned hereby
certifies that the representations and warranties in Article III of the Security Agreement are and continue to be true and correct in all material respects. The undersigned further agrees that this Amendment may be attached to that
certain Pledge and Security Agreement, dated as of April 19, 2013, among the undersigned, the other Grantors, Wells Fargo Bank, National Association, as the Collateral Agent, and Credit Suisse AG, as the Administrative Agent (the
“Security Agreement”) and that the Collateral listed on Schedule I to this Amendment shall be and become a part of the Collateral referred to in said Security Agreement and shall secure all Secured Obligations referred to in
said Security Agreement. 
  

			
	[NAME OF GRANTOR]
		
	By:	 	
	Name:	 	  

	Title:	 	  

 Schedule I 

to Amendment 
 STOCKS 

 

											
	 Holder
	  	Issuer	  	Certificate
Number(s)	  	Number of
Shares	  	Class of Stock	  	Percentage of
Outstanding
Shares
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 BONDS 
  

											
	 Holder
	  	Issuer	  	Number	  	Face Amount	  	Coupon Rate	  	Maturity
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 GOVERNMENT SECURITIES 
  

													
	 Holder
	  	Issuer	  	Number	  	Type	  	Face
Amount	  	Coupon
Rate	  	Maturity
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

 OTHER SECURITIES OR OTHER INVESTMENT PROPERTY (CERTIFICATED AND UNCERTIFICATED) 

 

							
	 Holder
	  	Issuer	  	Description of
Collateral	  	Percentage Ownership
Interest
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 [Add description of custody accounts or arrangements with securities intermediary, if applicable] 

 COMMERCIAL TORT CLAIMS 
  

					
	 Description of Claim
	  	 Parties
	  	 Case Number; Name of Court

where Case was Filed

		  		  	
		  		  	

 Exhibit E 

FORM OF PERFECTION CERTIFICATE 

 FORM OF PERFECTION CERTIFICATE 

Reference is made to the ABL Credit Agreement dated as of April 19, 2013 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among PETCO Animal Supplies, Inc., a Delaware corporation (the “Borrower”), each subsidiary of the Borrower from time to time party thereto (each, a
“Subsidiary” and, together with the Borrower, the “Grantors”), the lenders from time to time party thereto, Credit Suisse AG, as administrative agent (in such capacity, the “Administrative
Agent”), and Wells Fargo Bank, National Association, as collateral agent (in such capacity, the “Collateral Agent”). Capitalized terms used but not defined herein have the meanings set forth in the Credit
Agreement or the Security Agreement referred to therein, as applicable. 
 The undersigned Responsible Officer of the Borrower
hereby certifies to the Administrative Agent, the Collateral Agent and each other Secured Party as follows: 
 1. Names. (a) The exact legal
name of each Grantor, as such name appears in its respective certificate of formation, is as follows: 
  

	
	 Exact Legal Name of Each Grantor

	     
	     
	     
	     

 (b) Set forth below is each other legal name each Grantor has had in the past five years, together with the
date of the relevant change: 
  

					
	 Grantor
	  	 Other Legal Name in Past 5 Years
	  	 Date of Name Change

		  		  	
		  		  	
		  		  	

 (c) Except as set forth in Schedule 1 hereto, no Grantor has changed its identity or corporate structure in
any way within the past five years. Changes in identity or corporate structure would include mergers, consolidations and acquisitions, as well as any change in the form, nature or jurisdiction of organization. If any such change has occurred,
include in Schedule 1 the information required by Sections 1 and 2 of this certificate as to each acquiree or constituent party to a merger or consolidation. 

 (d) The following is a list of all other names (including trade names or similar appellations)
used by each Grantor or any of its divisions or other business units in connection with the conduct of its business or the ownership of its properties at any time during the past five years: 

 

			
	 Grantor
	  	 Other Name Used

		  	
		  	
		  	

 (e) Set forth below is the Organizational Identification Number, if any, issued by the jurisdiction of
formation of each Grantor that is a registered organization: 
  

			
	 Grantor
	  	 Organizational Identification Number

		  	
		  	
		  	

 (f) Set forth below is the Federal Taxpayer Identification Number of each Grantor1: 
  

			
	 Grantor
	  	 Federal Taxpayer Identification Number

		  	
		  	
		  	

  

	1 	Only necessary for filing in North Dakota and South Dakota. 

  
 2 

 2. Current Locations. (a) The chief executive office of each Grantor is located at the address set
forth opposite its name below: 
  

							
	 Grantor
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	

 (b) Set forth below opposite the name of each Grantor are all locations where such Grantor maintains any books
or records relating to any Accounts Receivable (with each location at which chattel paper, if any, is kept being indicated by an “*”): 
  

							
	 Grantor
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	

 (c) The jurisdiction of formation of each Grantor that is a registered organization is set forth opposite its
name below: 
  

			
	 Grantor
	  	 Jurisdiction

		  	
		  	
		  	

 (d) Set forth below opposite the name of each Grantor are all the locations where such Grantor maintains any
Equipment or other Collateral not identified above: 
  

							
	 Grantor
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	

  
 3 

 (e) Set forth below opposite the name of each Grantor are all the places of business of such
Grantor not identified in paragraph (a), (b), (c) or (d) above: 
  

							
	 Grantor
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	

 (f) Set forth below is a list of all real property held by each Grantor, whether owned or leased, the name of
the Grantor that owns or leases said property and the fair market value apportioned to each site: 
  

							
	 Address
	  	 Owned/Leased
	  	 Entity
	  	 Value

		  		  		  	

 (g) Set forth below opposite the name of each Grantor are the names and addresses of all Persons other than
such Grantor that have possession of any of the Collateral (excluding deposit accounts and any Collateral in the possession of either Collateral Agent) of such Grantor: 
  

							
	 Grantor
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	

 3. Unusual Transactions. All Accounts have been originated by or for the benefit of the Grantors and all Inventory has
been acquired by the Grantors in the ordinary course of business. 
 4. File Search Reports. File search reports have been obtained from each Uniform
Commercial Code filing office identified with respect to such Grantor in Section 2 hereof, and such search reports reflect no liens against any of the Collateral other than those permitted under the Credit Agreements. 

5. UCC Filings. Financing statements in substantially the form of Schedule 5 hereto have been prepared for filing in the proper Uniform Commercial Code
filing office in the jurisdiction in which each Grantor is located and, to the extent any of the collateral is comprised of fixtures, timber to be cut or as extracted collateral from the wellhead or minehead, in the proper local jurisdiction, in
each case as set forth with respect to such Grantor in Section 2 hereof. 

  
 4 

 6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting forth, with respect to the
filings described in Section 5 above, each filing and the filing office in which such filing is to be made. 
 7. Stock Ownership and other Equity
Interests. Attached hereto as Schedule 7 is a true and correct list of all the issued and outstanding stock, partnership interests, limited liability company membership interests or other Equity Interests held by, directly or indirectly, the
Borrower or any Subsidiary and the record and beneficial owners of such stock, partnership interests, membership interests or other Equity Interests. Also set forth on Schedule 7 is each equity investment held by, directly or indirectly, the
Borrower or any Subsidiary that represents 50% or less of the Equity Interests of the entity in which such investment was made. 
 8. Debt
Instruments. Attached hereto as Schedule 8 is a true and correct list of all promissory notes and other evidence of indebtedness held by the Borrower and each Subsidiary that are required to be pledged under the Security Agreements, including
all intercompany notes between the Borrower and any subsidiary of the Borrower and any subsidiary of the Borrower and any other such subsidiary. 
 9.
Deposit Accounts. Attached hereto as Schedule 9 is a true and correct list of deposit accounts, brokerage accounts or securities investment accounts maintained by any Grantor, including the name and address of the depositary institution, the
type of account, and the account number. 
 10. Assignment of Claims Act. Attached hereto as Schedule 10 is a true and correct list of all written
contracts between the Borrower or any Subsidiary and the United States government or any department or agency thereof that have a remaining value of at least $5,000,000, setting forth the contract number, name and address of contracting officer (or
other party to whom a notice of assignment under the Assignment of Claims Act should be sent), contract start date and end date, agency with which the contract was entered into, and a description of the contract type. 

11. Advances. Attached hereto as Schedule 11 is (a) a true and correct list of all advances made by the Borrower to any subsidiary of the Borrower
or made by any subsidiary of the Borrower to the Borrower or to any other subsidiary of the Borrower (other than those identified on Schedule 8), which advances will be on and after the date hereof evidenced by one or more intercompany notes pledged
to the Collateral Agent under the Security Agreements and (b) a true and correct list of all unpaid intercompany transfers of goods sold and delivered by or to any Grantor. 

12. Mortgage Filings. Attached hereto as Schedule 12 is a schedule setting forth, with respect to each mortgaged property, (a) the exact name of
the person that owns such property as such name appears in its certificate of incorporation or other organizational document, (b) if different from the name identified pursuant to clause (a), the exact name of the current record owner of such
property reflected in the records of the filing office for such property identified pursuant to the following clause and (c) the filing office in which a mortgage with respect to such property must be filed or recorded in order for the
Collateral Agent to obtain a perfected security interest therein. 

  
 5 

 13. Intellectual Property. Attached hereto as Schedule 13A in proper form for filing with the United
States Patent and Trademark Office is a schedule setting forth all of each Grantor’s Patents, Patent Licenses, Trademarks and Trademark Licenses, including the name of the registered owner, the registration number and the expiration date, if
applicable, of each Patent, Patent License, Trademark and Trademark License owned by any Grantor. Attached hereto as Schedule 13B in proper form for filing with the United States Copyright Office is a schedule setting forth all of each
Grantor’s Copyrights and Copyright Licenses, including the name of the registered owner, the registration number and the expiration date, if applicable, of each Copyright or Copyright License owned by any Grantor. 

14. Commercial Tort Claims. Attached hereto as Schedule 14 is a true and correct list of commercial tort claims in excess of $500,000 held by any
Grantor, including a brief description thereof. 

  
 6 

 IN WITNESS WHEREOF, the undersigned has duly executed this certificate on the date first written
above. 
  

					
	PETCO ANIMAL SUPPLIES, INC.,
		
	By:	 	 /s/ Michael E. Foss

		 	Name:	 	Michael E. Foss
		 	Title:	 	Executive Vice President & Chief Financial Officer

  
 7 

 SCHEDULE 1 

Changes in Identity or Corporate Structure Within Past Five Years 

 SCHEDULE 5 

UCC Financing Statements 

 SCHEDULE 6 

UCC Filings and Filing Offices 

 SCHEDULE 7 

Stock Ownership and Other Equity Interests 

 SCHEDULE 8 

Debt Instruments 

 SCHEDULE 9 

Deposit Accounts 

 SCHEDULE 10 

Government Contracts 

 SCHEDULE 11 

Advances 

 SCHEDULE 12 

Mortgage Filings 

 SCHEDULE 13A 

Patents, Patent Licenses, Trademarks and Trademark Licenses 

 SCHEDULE 13B 

Copyrights and Copyright Licenses 

 SCHEDULE 14 

Commercial Tort Claims 

 Exhibit F 

SUBSIDIARY PARTIES 
  

	
	Petco Animal Supplies Stores, Inc.
	International Pet Supplies and Distribution, Inc.
	Petco Southwest, Inc.
	Petco Pet Insurance Center, Inc.
	Petco Asia, LLC
	E-Pet Services, LLC
	PetPeople, Inc.
	Petco Puerto Rico, LLC
	Petco Support Services, LLC

 Exhibit G 

FORM OF COLLATERAL ACCESS AGREEMENT 

 LANDLORD WAIVER 

This Landlord Waiver (the “Waiver”) is entered into as of [●], 2013, by (the “Landlord”), in favor of
(a) WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent (the “ABL Collateral Agent”) for the lenders (the “ABL Lenders”) that are from time to time parties to that certain ABL Credit Agreement
dated as of April 19, 2013 (as the same may be amended, renewed, extended, modified, refinanced or replaced from time to time, the “ABL Credit Agreement”), among PETCO ANIMAL SUPPLIES, INC. (the “Company”),
each subsidiary of the Company from time to time party thereto, the Lenders that are parties thereto, CREDIT SUISSE AG (“CS”), as administrative agent, and the ABL Collateral Agent, and (b) CS, as collateral agent (the “Term
Loan Collateral Agent” and, together with the ABL Collateral Agent, the “Agents”), in each case for the lenders (together with the ABL Lenders, collectively referred to herein as the “Lenders”) that
are from time to time parties to the Term Loan Credit Agreement dated as of November 24, 2010 (as amended, and as the same may be further amended, renewed, extended, modified, refinanced or replaced from time to time, the “Term Loan
Credit Agreement” and, together with the ABL Credit Agreement, the “Credit Agreements”), among the Company, each subsidiary of the Company from time to time party thereto, the Lenders that are from time to time parties
thereto and CS, as administrative agent and as Term Loan Collateral Agent. 
 The Landlord is the owner of the real property commonly known
as [Insert Street Address, City, State, Zip Code] (the “Premises”). 
 The Landlord has entered into that certain lease
agreement with Petco Animal Supplies Stores, Inc. (“Tenant”) (together with any renewals, extensions, amendments, modifications, substitutions or replacements thereof, the “Lease”), a copy of which is attached
hereto as Exhibit A, with the Company, with respect to the Premises. 
 The Company has agreed to secure its obligations and
liabilities (the “Obligations”) under the Credit Agreements and the other documents relating thereto (collectively, the “Loan Documents”) by granting a security interest to the Agents, for the benefit of the Agents,
the Lenders and the other Secured Parties (as such term is defined in the ABL Credit Agreement or the Term Loan Credit Agreement, as applicable), in, among other things, all presently owned and hereinafter acquired personal property (hereinafter
called the “Collateral”) of the Company and certain of its subsidiaries. 
 In connection with the Loan Documents, the
Lenders have required that the Company obtain this Waiver from the Landlord in connection with Tenant’s lease of the Premises. 
 In
consideration of the sum of $1.00 and other good and valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged by the Landlord, the Landlord hereby agrees as follows: 

1. The Landlord acknowledges that the Lease is in full force and effect and is not aware of any existing default under the Lease. 

 2. The Landlord agrees to subordinate any interest in the Collateral that it may have under the
terms of the Lease to the properly perfected interest of the Agents therein, if any, under the Loan Documents. 
 3. The Landlord agrees
that it shall send to each Agent a copy of any notice of default under the Lease (a “Default Notice”) simultaneously with the delivery thereof to Tenant. No action by either Agent or any Lender pursuant to this Waiver shall be
deemed to be an assumption by either Agent or any Lender of any obligation under the Lease, and except as expressly provided in paragraphs 6, 7 and 8 below, neither Agent shall have any obligation to the Landlord. 

4. The Landlord agrees that the Collateral is and shall remain personal property of the Company regardless of the manner or mode of attachment
of any item of Collateral to the Premises and shall not be deemed to be fixtures. 
 5. The Landlord agrees that, during the pendency of any
dispute of any action to retake possession of the Premises by the Landlord, the Landlord shall not object to or prevent the Agents from inspecting or evaluating the Premises. Upon the occurrence of an event of default with respect to the payment or
performance of the Obligations by the Company or upon termination of the Company’s lease (each a “Disposition Event”), either Agent may take possession of the Premises for a period not to exceed one hundred twenty
(120) days (the “Disposition Period”) following the occurrence of the Disposition Event, and the Landlord agrees that, at such Agent’s option, the Collateral may remain upon the Premises during such time; provided
that such Agent pays rent on a monthly basis for the period of time that such Agent remains on the Premises, based upon the amount of rent set forth in the Lease and will provide the Landlord with not less than 60 days notice of its intention to
vacate the Premises. 
 6. During any Disposition Period, provided that an Agent otherwise is legally entitled to do so,
(a) such Agent or its designee may, without necessity of court order, enter upon the Premises at any time to inspect or remove all or any Collateral from the Premises without interference by the Landlord, and such Agent or its designee may
sell, transfer or otherwise dispose of any Collateral free of all liens, claims, demands, rights and interests that the Landlord may have in that Collateral by law or agreement, including, without limitation, by private sale or auction to vendors
(and such Agent may advertise and conduct such auction or sale at the Premises and shall provide advance written notice to the Landlord of its intention to hold any such auction or sale), in each case, without interference by the Landlord and
(b) such Agent shall make the Premises available for inspection by the Landlord and prospective tenants and shall cooperate in the Landlord’s reasonable efforts to re-lease the Premises. 

7. The applicable Agent shall, at the Landlord’s option, promptly repair, at such Agent’s expense, or reimburse the Landlord for the
costs of repairing any physical damage to the Premises actually caused by the conduct of any auction or sale and any removal of the Collateral by or through such Agent (ordinary wear and tear excluded). Neither of the Agents nor any Lender shall
(a) be liable to the Landlord for any diminution in value caused by the absence of any removed Collateral or for any other matter except as specifically set forth herein or (b) have any duty or obligation to remove or dispose of any
Collateral or other property left on the Premises by the Company; provided, however, that to the extent either Agent elects to remove or dispose of a portion of the Collateral, such Agent shall be responsible for removing all of the
Collateral located at the Premises. 

 8. Without affecting the validity of this Waiver, any of the Obligations may be amended, renewed,
extended, refinanced, replaced or otherwise modified without the consent of the Landlord and without giving notice thereof to the Landlord. This Waiver shall inure to the benefit of the respective successors and assigns of each Agent and shall be
binding upon the successors and assigns of the Landlord. The persons signing this each represent to the others that s/he has the authority to do so on behalf of the party for which s/he is signing. 

9. All notices hereunder shall be in writing and sent by certified mail (return receipt requested), overnight mail or facsimile (with a copy
to be sent by certified or overnight mail), to the other party at the address set forth on the signature page hereto or at such other address as such other party shall otherwise designate in accordance with this paragraph. 

10. This Waiver is governed by the laws of [the state that governs the Lease] (the “Lease Jurisdiction”). The Landlord agrees
that any legal action or proceeding with respect to any of its obligations under this Waiver may be brought by the Agents (or either of them) in any state or federal court located in the Lease Jurisdiction. By its execution and delivery of this
Waiver, the Landlord submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Landlord waives any claim that the Lease Jurisdiction is not a convenient
forum or the proper venue for any such action or proceeding. 
 11. WAIVER OF SPECIAL DAMAGES. THE LANDLORD WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE LANDLORD MAY HAVE TO CLAIM OR RECOVER FROM ANY OF THE LENDERS IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES. 

12. JURY WAIVER. EACH OF THE LANDLORD AND EACH AGENT HEREBY VOLUNTARILY, KNOWLINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE BETWEEN THE LANDLORD AND EITHER AGENT IN ANY WAY RELATED TO THIS WAIVER. 
 13. This
Waiver shall continue in full force and effect until the earlier to occur of the removal of the Collateral from the Premises or the notification by the Agents, which shall be in writing and signed by the Agents, to the Landlord of the Agents’
election not to exercise their rights with respect to the Collateral. 
 [Remainder of this page intentionally left
blank] 

 This Waiver is executed and delivered by the Landlord as of the date first written above. 

 

			
	LANDLORD:
	
	  

	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Notice Address:
	
	  

	  

	Attention:	 	  

	Facsimile:	 	  

  

			
	Accepted and agreed to on            , 2013 by:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	  

	Name:	 	  

		 	Authorized Officer
	
	Notice Address:
	
	  

	  

	Attention:	 	  

	Facsimile:	 	  

	
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Notice Address:
	
	  

	  

	Attention:	 	  

	Facsimile:	 	  

 EXHIBIT A 

COPY OF LEASE 

 Exhibit H 

SUPPLEMENT NO. [●] dated as of [●] (this “Supplement”), to the Pledge and Security Agreement
dated as of April 19, 2013 (the “Security Agreement”), among Petco Animal Supplies, Inc., a Delaware corporation (the “Borrower”), each Subsidiary of the Borrower party from time to time thereto (each such
subsidiary individually a “Subsidiary Party” and collectively, the “Subsidiary Parties”; the Subsidiary Parties and the Borrower are referred to collectively herein as the “Grantors”), Wells Fargo
Bank, National Association, as collateral agent (in such capacity, the “Collateral Agent”), and Credit Suisse AG, as administrative agent (in such capacity, the “Administrative Agent”). 

A. Reference is made to the ABL Credit Agreement dated as of April 19, 2013 (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “ABL Credit Agreement”), among the Borrower, the Subsidiary Parties, the lenders from time to time party thereto, the Administrative Agent and the Collateral Agent. 

B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the ABL Credit Agreement
and the Security Agreement referred to therein. 
 C. The Grantors have entered into the Security Agreement in order to induce the Lenders
to make Loans and the Issuing Bank to issue Letters of Credit. Section 7.13 of the Security Agreement and Section 5.10 of the ABL Credit Agreement provide that additional Domestic Subsidiaries of the Borrower may become
Subsidiary Parties under the Security Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in accordance with the
requirements of the ABL Credit Agreement to become a Subsidiary Party under the Security Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans
previously made and Letters of Credit previously issued. 
 Accordingly, each Agent and the New Subsidiary agree as follows: 

SECTION 1. In accordance with Section 7.13 of the Security Agreement, the New Subsidiary by its signature below becomes a
Subsidiary Party and a Grantor under the Security Agreement with the same force and effect as if originally named therein as a Subsidiary Party, and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Security Agreement
applicable to it as a Subsidiary Party and Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof. In furtherance of the
foregoing, the New Subsidiary, as security for the payment and performance in full of the Secured Obligations, does hereby create and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors
and assigns, a security interest in and Lien on all of the New Subsidiary’s right, title and interest in and to the Collateral of the New Subsidiary. Each reference to a “Grantor” in the Security Agreement shall be deemed to include
the New Subsidiary. The Security Agreement is hereby incorporated herein by reference. 

 SECTION 2. The New Subsidiary represents and warrants to the Collateral Agent and the other
Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency or
similar laws affecting creditors’ rights generally and to general principles of equity. 
 SECTION 3. This Supplement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the
Collateral Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 
 SECTION 4. The New Subsidiary hereby
represents and warrants that, in each case as of the date hereof, (a) set forth on Schedule I attached hereto is a true and correct schedule of the location of any and all Collateral constituting Equipment and Inventory of the New
Subsidiary, (b) set forth on Schedule II attached hereto is a true and correct schedule of all the Pledged Collateral of the New Subsidiary, (c) set forth on Schedule III attached hereto is a true and correct schedule of all
Patents, Trademarks and Copyrights of the New Subsidiary and (d) set forth under its signature hereto, is the true and correct legal name of the New Subsidiary, its jurisdiction of formation and the location of its chief executive office. 

SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect. 

SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

SECTION 7. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Security Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in
a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto 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. All communications and notices hereunder shall be in writing and given as provided in Section 8.01 of the Security
Agreement. 
 SECTION 9. The New Subsidiary agrees to reimburse each Agent for its reasonable and documented out-of-pocket expenses in
connection with this Supplement, including the reasonable and documented fees, other charges and disbursements of counsel for such Agent. 

 IN WITNESS WHEREOF, the New Subsidiary and each Agent have duly executed this Supplement to the
Pledge and Security Agreement as of the day and year first above written. 
  

			
	[NAME OF NEW SUBSIDIARY]
		
	By:	 	  

		 	Name:
		 	Title:
		
		 	Legal Name:
		 	Jurisdiction of Formation:
		 	Location of Chief Executive Office:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	  

		 	Name:
		 	Title:
	
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 Schedule I 

to Supplement No      to the 

Pledge and Security Agreement 

LOCATION OF COLLATERAL 
  

			
	 Description
	  	 Location

		  	
		  	
		  	

 Schedule II 

to Supplement No      to the 

Pledge and Security Agreement 
 LIST
OF PLEDGED COLLATERAL, SECURITIES AND OTHER 
 INVESTMENT PROPERTY 

STOCKS 
  

											
	 Holder
	  	Issuer	  	Certificate
Number(s)	  	Number of
Shares	  	Class of Stock	  	Percentage of
Outstanding
Shares
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 BONDS 
  

											
	 Holder
	  	Issuer	  	Number	  	Face Amount	  	Coupon Rate	  	Maturity
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 GOVERNMENT SECURITIES 
  

													
	 Holder
	  	Issuer	  	Number	  	Type	  	Face
Amount	  	Coupon
Rate	  	Maturity
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

 OTHER SECURITIES OR OTHER INVESTMENT PROPERTY (CERTIFICATED AND UNCERTIFICATED) 

 

							
	 Holder
	  	Issuer	  	Description of
Collateral	  	Percentage Ownership
Interest
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 [Add description of custody accounts or arrangements with securities intermediary, if applicable] 

 Schedule III 

to Supplement No      to the 

Pledge and Security Agreement 

INTELLECTUAL PROPERTY RIGHTS 

PATENT REGISTRATIONS 
  

					
	 Patent Description
	  	 Patent Number
	  	 Issue Date

		  		  	
		  		  	

 PATENT APPLICATIONS 
  

					
	 Patent Application
	  	 Application Filing Date
	  	 Application Serial Number

		  		  	
		  		  	

 TRADEMARK REGISTRATIONS 
  

					
	 Trademark
	  	 Registration Date
	  	 Registration Number

		  		  	
		  		  	

 TRADEMARK APPLICATIONS 
  

					
	 Trademark Application
	  	 Application Filing Date
	  	 Application Serial Number

		  		  	
		  		  	

 COPYRIGHT REGISTRATIONS 
  

					
	 Copyright
	  	 Registration Date
	  	 Registration Number

		  		  	
		  		  	

 COPYRIGHT APPLICATIONS 
  

					
	 Copyright Application
	  	 Application Filing Date
	  	 Application Serial NumberEX-10.10

 EXHIBIT 10.10 

CONSTRUCTION LOAN AGREEMENT 
 THIS
CONSTRUCTION LOAN AGREEMENT (“Agreement”) is made as of this 20th day of March, 2015 by and between PETCO REAL ESTATE HOLDINGS III LLC, a Delaware limited liability company, (“Borrower”) and MUFG UNION BANK,
N.A. (“Bank”). 
 A. Borrower has requested that Bank provide a construction loan to Borrower to finance the construction of the
Improvements on the Real Property. 
 B. Bank is willing to provide the Loan upon the terms and conditions set forth herein. 

THEREFORE, the parties hereto agree as follows: 
  

	1.	DEFINITIONS. In addition to terms defined elsewhere in this Agreement, capitalized terms shall have the following meanings (such definitions to be equally applicable to the singular and plural forms of the
defined terms): 

  

	1.1.	ADR. Bank’s standard form Alternative Dispute Resolution Agreement. 

  

	1.2.	Advance. Each disbursement of proceeds of the Loan made pursuant to this Agreement. 

  

	1.3.	Affiliate. As to any person, any other person that (a) directly or indirectly, owns more than twenty percent (20%) of such person, (b) is in control of, is controlled by or is under common
ownership or control with such person or (c) is a director or officer of such person. 

  

	1.4.	Affiliated Tenant and Affiliated Tenants. These terms are defined in Section 6.25, and Include Petco Animal Supplies Stores, Inc., a Delaware corporation, the tenant under the Major Lease.

  

	1.5.	Agent. Bank, when acting in the capacity of administrative agent following any Secondary Market Transaction, and any successor agent. 

 

	1.6.	Agreement to Furnish Insurance. Bank’s standard form Agreement to Furnish Insurance. 

  

	1.7.	Applicable Interest Rate. The per annum rate at which interest accrues on the outstanding principal balance of the Loan, as set forth in Section 2.6. 

 

	1.8.	Appraisal. An appraisal or reappraisal of the Property (complying with Bank’s appraisal policy) performed or to be performed by a certified real estate appraiser engaged by Bank. 

 

	1.9.	Appraised Value. The market value of the Property on an “As Completed” basis as determined by Bank in its business judgment, reasonably exercised, based upon an Appraisal. 

	1.10.	Architect. CDS Architects, Inc., dba Smith Consulting Architects, or such other architect as may be approved by Bank. 

  

	1.11.	Architect’s Agreement. The agreement between Borrower and Architect relating to the design and construction of the Improvements. 

 

	1.12.	Assignment of Construction Contract. Bank’s standard form Assignment of Construction Contract. 

  

	1.13.	Assignment of Plans and Specifications. Bank’s standard form Assignment of Architects Agreement, Plans and Specifications. 

 

	1.14.	Bonded Work. Offsite, common area, or other improvements required by a Governmental Authority or for which bonds may be required in connection with the development of the Real Property. 

 

	1.15.	Borrower’s Funds. All funds of Borrower deposited into Borrower’s Funds Account with Bank pursuant to the terms of this Agreement, to be disbursed in payment of Construction Costs as more particularly
set forth in this Agreement. 

  

	1.16.	Borrower’s Funds Account. An account with Bank into which Borrower’s Funds shall be deposited as provided for in the “BORROWER’S COVENANTS” Section below or any other provision of this
Agreement. 

  

	1.17.	Business Day. Any day other than a Saturday or Sunday or a legal holiday on which national banks in the United States are authorized or required to be closed for business. Unless specifically referenced in this
Agreement as a Business Day, all references to “days” shall be to calendar days. 

  

	1.18.	Cash and Cash Equivalents. Any combination of the legal tender of the United States of America (“Cash”) and direct obligations of the United States government backed by the full faith and credit of the
United States. 

  

	1.19.	Certification of Plans and Specifications. Bank’s standard form Certification of Plans and Specifications. 

  

	1.20.	Change Order. Any change or supplement to the Plans, Construction Contract, if any, or subcontract as permitted by this Agreement. 

 

	1.21.	Closing Date. The date on which the Deed of Trust is recorded. 

  

	1.22.	Co-Lender. Bank and each other person holding a Ratable Share of the Loan. 

  

	1.23.	Completion Date. December 31, 2015, the date by which construction of the Improvements must be completed and all licenses and permits necessary for the occupancy, use or sale thereof obtained.

  
 -2- 

	1.24.	Construction Costs. All costs approved by Bank relating to the construction of the Improvements or otherwise pertaining to the Property, as set forth in the Detailed Cost Breakdown. 

 

	1.25.	Construction Contract. The agreement between Borrower and Contractor relating to the construction of the Improvements. 

 

	1.26.	Construction Loan. The Loan during the Construction Loan Period. 

  

	1.27.	Construction Loan Period. The period commencing on the date of this Agreement and terminating on the Construction Loan Maturity Date. 

 

	1.28.	Construction Loan Maturity Date. The earlier of (a) August 1, 2016, or (b) any earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise, under this
Agreement or any of the other Loan Documents. 

  

	1.29.	Contractor. The Whiting-Turner Contracting Company, or such other contractor as may be approved by Bank. 

  

	1.30.	Conversion Date. The date, if it occurs, that the Construction Loan is converted to the Term Loan as described in Section 2.5 below; the Conversion Date is the first day of the Term Loan Period.

  

	1.31.	Default Rate. The rate of interest applicable under the Note following the occurrence of an Event of Default. 

  

	1.32.	Deed of Trust. The Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (Construction Trust Deed) of even date herewith. 

 

	1.33.	Detailed Cost Breakdown. An itemized schedule on a component, unit and trade breakdown basis showing all costs and expenses required for construction of the Improvements in accordance with the Plans, which has
been submitted to and approved by Bank. 

  

	1.34.	Disbursement Schedule. The schedule or schedules for disbursement of the Advances and of Borrower’s Funds, if any, set forth on Exhibit B hereto, which may be amended from time to time by reallocations made
in accordance with the “LOAN DISBURSEMENT” Section of this Agreement. 

  

	1.35.	Draw Request. The certified invoice to be delivered by Borrower to Bank and Title Insurer as a condition to Bank making an Advance, in such form and certified by such parties as required by Bank, together with
such schedules, affidavits, releases, waivers, statements, invoices, bills, and other documents, certificates and information as may be required by Bank as to such Advance. 

 

	1.36.	ECA. The Environmental Compliance Agreement of even date herewith. 

  
 -3- 

	1.37.	Event of Default. Any event or condition described as an Event of Default in the “EVENTS OF DEFAULT” Section of this Agreement. 

 

	1.38.	Financial Statements. Balance sheets, income statements, statements of retained earnings with supporting schedules and such other financial reports as Bank may require, in form and content acceptable to Bank.

  

	1.39.	Force Majeure. Any strikes, lock-outs, war, civil disturbance, natural disaster, acts of terrorism or acts of God, unavailability of materials or labor, inclement weather, change in laws, fire or casualty,
governmental inaction or delay, or any other event, condition or circumstance not within the reasonable control of Borrower which cause a delay in Borrower’s construction of the Improvements; provided, however, Borrower must give notice to Bank
within five (5) Business Days after the occurrence of an event which it believes to constitute Force Majeure, and the Borrower’s delay for Force Majeure shall be an excusable delay only during the Construction Loan Period for the lesser of
(I) the actual duration of such event, or (li) ninety (90) days in the aggregate. 

  

	1.40.	Funding Date. The date on which the Initial Disbursement is made which may or may not be the same date as the Closing Date. 

 

	1.41.	Governmental Authority. Any federal, state or local governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, court, administrative tribunal or
public or private utility having authority over the Property or its utilization. 

  

	1.42.	Governmental Requirement. Any law, statute, order, ordinance, rule, regulation, permit or act of a Governmental Authority. 

 

	1.43.	Guarantor. Petco Animal Supplies, Inc., a Delaware corporation, which is executing the Guaranty, and any other Person who executes a Guaranty in connection with the Loan. 

 

	1.44.	Guaranty. The Loan and Completion Guaranty of even date herewith with respect to the Loan. 

  

	1.45.	Improvements. Renovation and conversion to office space of the certain real property and existing improvements currently comprising 297,276 square feet, commonly known as 10850 Via Frontera, San Diego, CA
92127. 

  

	1.46.	Initial Disbursement. The initial Advance made by Bank to Borrower pursuant to this Agreement. 

  

	1.47.	Initial Interest Rate. This term is defined in the Note. 

  

	1.48.	Interest Reserve. During the Construction Loan Period, the portion of the Project Budget allocated for the payment of interest due under the Note. 

 

	1.49.	Leases. All leases of the Property, including Major Leases, and all amendments, guaranties and subleases relating thereto. 

  
 -4- 

	1.50.	Liquidity. The term is defined in Section 6.33. 

  

	1.51.	Loan. The construction loan in the maximum principal amount of $42,700,000.00, which Bank has agreed to make to Borrower pursuant to this Agreement. 

 

	1.52.	Loan Documents. This Agreement, the Note, Deed of Trust, Guaranty, ECA, Security Documents, ADR, UCC-1 Financing Statement(s) covering the Personal Property, Agreement to Furnish Insurance, any Swap Contract, and
all other agreements, instruments and documents (together with amendments, supplements and replacements thereto) now or hereafter executed and delivered to Bank in connection with the Loan. 

 

	1.53.	Loan Fee. The non-refundable fee in the amount of $213,500.00 to be paid to Bank, of which (a) $163,500.00 shall be paid to the Bank out of the Initial Disbursement, and (b) the remaining $50,000.00
shall be disbursed directly to Bank (without further authorization) concurrently with disbursement of the final $10,000.00.00 of the Loan, ratably as that amount is disbursed, at the rate of one half of one percent (.5%) of the principal amount
Advanced. 

  

	1.54.	Loan Party and Loan Parties. These terms are defined in Section 6.25. 

  

	1.55.	Loan-to-Value Ratio. The ratio of (i) the indebtedness evidenced by the Note and any secondary financing permitted pursuant to the Loan Documents to (ii) the Appraised Value of the Property.

  

	1.56.	Major Contracts. This term is defined in Section 4.1 (a)(viii). 

  

	1.57.	Major Leases. Those Leases, if any, which (i) cover twenty percent (20%) or more of the net rentable area of the Improvements and have an initial term of more than five (5) years, or
(ii) contribute twenty percent (20%) or more of the Net Operating Income of the Property. The Major Leases, if any, as of the date of this Agreement, are described in Exhibit E hereto, and are approved by Bank. 

 

	1.58.	Maturity Date. The Construction Loan Maturity Date or, if the term of the Loan is extended and the Construction Loan is converted to a Term Loan, the Term Loan Maturity Date. 

 

	1.59.	Maximum Commitment. For each Co-Lender, an amount equal to each Co-Lender’s Ratable Share of the Loan. 

  

	1.60.	Note. The promissory note of even date herewith in the principal amount of the Loan. 

  

	1.61.	Note Rate. This term is defined in the Note. 

  

	1.62.	Offsite Materials. Materials to be incorporated into the Improvements or used in connection with the construction of the Improvements that are stored at a location other than the Real Property.

  
 -5- 

	1.63.	Onsite Materials. Materials to be incorporated into the Improvements or used in connection with the construction of the Improvements that are stored on the Real Property. 

 

	1.64.	Owner-Occupied. This term is defined in Section 6.25. 

  

	1.65.	Person. Any natural person or entity, including any corporation, partnership, joint venture, limited liability company, trust, trustee, unincorporated organization or Governmental Authority.

  

	1.66.	Personal Property. Any tangible or intangible personal property described in the Deed of Trust or Security Documents which is security for the Loan; provided, however, in no event shall Personal Property include
any personal property or equipment of the tenant, Petco Animal Supplies Stores, Inc., a Delaware corporation.  

  

	1.67.	Plans. The final plans and specifications for construction of the Improvements (including any applicable general conditions), prepared by Architect and approved by Bank as required herein, and all amendments and
modifications thereof made pursuant to Change Orders. 

  

	1.68.	Property. The Real Property, the Improvements and the Personal Property. 

  

	1.69.	Project Budget. The cost itemization (set forth in Exhibit B-1 hereto) of the total amount needed by Borrower to construct the Improvements and to perform Borrower’s other obligations under the Loan
Documents, which itemization may be amended from time to time in accordance with the “LOAN DISBURSEMENT” Section of this Agreement. 

  

	1.70.	Ratable Share, Ratable or Ratably. With respect to any Co-Lender, the percentage that such Co-Lender’s Maximum Commitment then constitutes of the principal amount of the Loan. 

 

	1.71.	Real Property. That certain real property described in Exhibit A hereto. 

  

	1.72.	Secondary Market Transaction. The term is defined in Section 10.8. 

  

	1.73.	Security Documents. Any agreements granting a security interest in collateral securing the Loan other than the Deed of Trust, including without limitation, Bank’s standard form assignments and consents to
assignments of the Architect’s Agreement, Construction Contract, if any, Plans, any property management agreement or asset management agreement. 

  

	1.74.	Set Aside Letter. Any letter or letters to any Governmental Authority or Surety whereby Bank agrees to allocate proceeds of the Loan for construction of Bonded Work. 

 

	1.75.	Surety. The bonding company that issues the bonds covering the Bonded Work. 

  

	1.76.	Swap Contract. Any interest rate swap or similar agreement heretofore or hereafter entered into between Borrower and Bank relating to the Loan. 

  
 -6- 

	1.77.	Term Loan. The Loan during the Term Loan Period, if applicable. 

  

	1.78.	Term Loan Maturity Date (if applicable). The earlier of (a) one hundred two (102) calendar months following the Conversion Date, or (b) any earlier date on which the entire Loan is required to be
paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents. 

  

	1.79.	Term Loan Period. If the Loan is converted and is extended in accordance with Section 2.5 below, the period commencing on the Conversion Date and terminating on the Term Loan Maturity Date.

  

	1.80.	Title Insurer. Chicago Title Insurance Company. 

  

	1.81.	Title Policy. An ALTA Loan Policy of Title Insurance acceptable to Bank endorsed for pending disbursements, naming Bank as insured, with a liability limit of not less than the amount of the Loan, issued by Title
Insurer, insuring that the Deed of Trust constitutes a valid first lien on the Real Property and Improvements, with only such exceptions from its coverage as shall have been approved in writing by Bank, with such reinsurance or coinsurance
agreements or endorsements to such policy as Bank may reasonably require. 

  

	2.	THE LOAN. 

  

	2.1.	Purpose. The purpose of the Loan is to finance construction of the Improvements and other costs related thereto. 

  

	2.2.	Loan Terms and Conditions. Subject to the terms and conditions contained in this Agreement, Bank agrees to make the Loan to Borrower. The Loan shall be evidenced by the Note, repayment of which shall be secured
by, among other things, the Deed of Trust, Security Documents and such other collateral as may be required by Bank. Interest shall accrue and principal and interest shall be payable in accordance with the terms of the Note. 

 

	2.3.	Loan Fee. Borrower shall pay the Loan Fee to Bank as and when due as described in Section 1.53 above. 

  

	2.4.	Full Payment and Reconveyance. Upon Bank’s receipt of all sums owing and outstanding under the Loan Documents and under any other note or notes or any other obligation secured by the Deed of Trust, Bank
shall issue a full reconveyance of the Property and Improvements from the lien of the Deed of Trust; provided, however, that all of the following conditions shall be satisfied at the time of, and with respect to, such reconveyance: (a) Bank
shall have received all escrow, closing and recording costs, the costs of preparing and delivering such reconveyance and any sums then due and payable under the Loan Documents; and (b) Bank shall have received a written release reasonably
satisfactory to Bank of any Set Aside Letter, letter of credit or other form of undertaking which Bank has issued to any Surety, Governmental Authority or any other party in connection with the Loan and/or the Property. As of the date of repayment
in full of the Loan, Bank’s obligation to make further disbursements under the Loan shall terminate as to any portion of the Loan undisbursed, and any commitment of Bank to lend any undisbursed portion of the Loan shall be cancelled.

  
 -7- 

	2.5.	Conversion to Term Loan. On the Construction Loan Maturity Date, Borrower shall pay to Bank all outstanding principal and accrued and unpaid interest, and any other amounts due under the Loan Documents. However,
Borrower may request an extension of the Maturity Date to the Term Loan Maturity Date, and conversion of the Construction Loan to a Term Loan subject to the terms and conditions set forth below: 

(a) Borrower shall give written notice of its request to convert to a Term Loan and extend the Maturity Date to the Term Loan Maturity
Date at least ninety (90) days prior to the Construction Loan Maturity Date; 
 (b) There shall have been no material
deterioration in the financial condition of Borrower or any Loan Party since the Closing Date, as determined by Bank in Bank’s sole discretion. 

(c) Borrower and any Loan Party shall have executed such documents as Bank may require in connection with such extension, including any
amendments to the Loan Documents. 
 (d) Neither Borrower nor any other Loan Party shall be in default beyond applicable notice and
cure periods under any promissory note, deed of trust, security agreement or guaranty between Bank and any such party. 
 (e) Borrower
shall have provided Bank with evidence reasonably acceptable to Bank, in its sole discretion, including certification from Architect that Improvements are substantially completed on or before the Construction Loan Maturity Date. 

(f) A Notice of Completion has been recorded as to all Improvements or Borrower has provided other reasonably satisfactory evidence to
Bank that the Improvements have been satisfactorily completed, the Project is free of mechanics liens (or has provided satisfactory assurances, such as a bond, for such liens); and Borrower has caused to be issued, at Borrower’s expense, a CLTA
form 101.2 endorsement to Bank’s policy of title insurance, and such other endorsements as Bank reasonably requests, insuring the continued priority of the Deed of Trust. 

(g) The representations and warranties contained in this Agreement and in all the Loan Documents are true and correct in all material
respects as of the date the Loan would otherwise mature, to the extent applicable as of such date, as determined by Bank, in its sole discretion; and 

(h) The Loan-to-Value Ratio shall not exceed seventy percent (70%). Should the Loan-to- Value Ratio exceed seventy percent (70%), then
Borrower shall have the option to pay down the outstanding principal balance under the Note by an amount that will reduce such ratio to no more than seventy percent (70%). Bank shall have the right to require an Appraisal of the Property. Any and
all costs, fees and expenses Incurred in connection with such Appraisal shall be paid by Borrower. 

  
 -8- 

 (i) Unless and until Bank shall have sold one or more Ratable Shares of the Loan so that
Bank’s Maximum Commitment is not more than $32,700,000.00, no more than $32,700,000.00 shall be Advanced. 
 (j) Borrower shall
pay all costs and expenses incurred by Bank in connection with extending the Construction Loan Maturity Date and converting to the Term Loan, including without limitation, documentation and/or recording fees, if any, and the cost of any title
endorsements required by Bank. 
 Upon the conversion of the Construction Loan to the Term Loan, the Term Loan will continue to be secured by
the Deed of Trust and all other security for the Construction Loan. 
  

	2.6.	Applicable Interest Rate and Payment. 

 (a) Interest shall accrue under the Note
at the fixed rate per annum of three and seventy-five one-hundredths percent (3.75%), provided that following the occurrence of a Secondary Market Transaction, the Applicable Interest Rate shall be a fixed rate established by Bank and consented to
by Borrower, payable as specified in the Note. 
 (b) In addition to interest, monthly installments of principal shall be due and
payable under the Note during the Term Loan Period, based on an amortization period of 162 months and an assumed fixed interest rate at the Applicable Interest Rate. On the Term Loan Maturity Date, all principal and interest then unpaid shall be due
and payable in full. 
  

	2.7.	Prepayment. Borrower may prepay amounts outstanding under the Note in whole or in part provided Borrower has given Bank not less than five (5) Business Days prior written notice of Borrower’s intention
to make such prepayment and pays the prepayment fee due as a result if a prepayment fee is due under the Note. If a prepayment fee is due, it shall be calculated as set forth on Exhibit 2.7 attached. 

 

	3.	CONDITIONS PRECEDENT TO CLOSING OF THE LOAN. 

  

	3.1.	General Conditions Precedent. Prior to the Closing Date, Bank shall have received all of the following documents, instruments and other items (which, in the case of documents or instruments, shall be fully and
properly executed and, where required by Bank, acknowledged by all parties thereto), each in form and content acceptable to Bank: 

(a) The original Loan Documents. 

(b) Copies of organizational documents of Borrower and all Loan Parties, duly filed and/or recorded in the appropriate jurisdiction and
certified as required by Bank, including without limitation, and as applicable, (i) articles of organization and operating agreements, (ii) certificates of limited partnership, statements of partnership and partnership agreements, (in)
statements of joint venture and joint venture agreements, (iv) articles of incorporation, (v) trust agreements, and (vi) any amendments to any of the foregoing. 

  
 -9- 

 (c) Evidence that the insurance required by the Agreement to Furnish Insurance is in full
force and effect. 
 (d) All Borrower’s Funds required under this Agreement. 

(e) Copies of the Detailed Cost Breakdown, the Project Budget, the Plans, the Construction Contract and the Architect’s Agreement,
and any other agreements that Bank reasonably determines are material to construction of the Improvements, all certified as required by Bank. 

(f) Copies of the building permits and any other authorizations required from any Governmental Authority in connection with construction
of the Improvements. 
 (g) If required by Bank, a current survey of the Real Property, including dimensions and delineation
and location of all easements thereon, provided that Bank acknowledges and agrees that the ALTA Survey dated October 23, 2013 prepared by O’Day Consultants (Job No. 13-1032) constitutes a current survey for purposes of satisfying this
condition. 
 (h) Environmental reviews, engineering inspections and seismic studies with respect to the Property and Financial
Statements for Borrower and Guarantor. 
 (i) Written results of such due diligence investigations with respect to Borrower,
any Loan Party and the Property as Bank deems necessary, including without limitation, environmental reviews, engineering inspections, seismic studies and financial analysis. 

(j) Such other documentation, certifications, opinions and information as may be reasonably required by Bank. 

 

	4.	LOAN DISBURSEMENT. 

  

	4.1.	Initial Disbursement. 

 (a) Prior to the Initial Disbursement, the following
conditions shall have been satisfied, as determined by Bank: 
 (i) Borrower and all Loan Parties shall have performed to Bank’s
satisfaction all covenants required to be performed under this Agreement or the other Loan Documents on or before the Funding Date. 
 (ii)
No change shall have occurred which could have a material adverse effect on Borrower, any Loan Party, the Property or Bank’s right or ability to receive payment in full of the Loan, as determined by Bank in its sole discretion. 

(iii) No Event of Default shall exist. 

(iv) Title Insurer shall have committed to deliver to Bank the Title Policy, and arrangements shall have been made satisfactory in all
respects to Bank for review by the Title Insurer of Draw Requests, and issuance of endorsements as required by Bank, at Borrower’s cost. 

  
 -10- 

 (v) Bank shall have approved in its sole discretion, the Detailed Cost Breakdown, the Project
Budget, the Plans, the Construction Contract (if any), the Architect’s Agreement, and any other agreements that Bank determines are material to the construction of the Improvements. 

(vi) The Deed of Trust shall have been recorded. 

(vii) UCC-1 financing statement(s) covering the Personal Property shall have been filed where appropriate and, if required by Bank, Bank shall
have received satisfactory evidence that there are no other liens on such Personal Property, except as otherwise agreed to by Bank. 

(viii) If required by Bank, Bank shall have received a list of the names and addresses of all suppliers, laborers and subcontractors with whom
agreements in excess of $75,000 (“Major Contracts”) have been made with Contractor and/or Borrower to deliver materials and/or perform work on the Improvements. 

(b) Upon satisfaction of the conditions contained in the “CONDITIONS PRECEDENT TO CLOSING OF THE LOAN” Section of this
Agreement and “Initial Disbursement” above, Bank shall disburse in accordance with the Project Budget and the Disbursement Schedule the amounts necessary to pay all costs, charges and expenses incurred or to be incurred (as estimated by
Bank) in connection with the Loan or payable pursuant to this Agreement or the other Loan Documents, excluding direct costs of labor and materials related to the Improvements, but including without limitation, the Loan Fee, service charges, title
charges, tax and lien service charges, recording fees, escrow fees, appraisal fees, legal fees, real property taxes and assessments, insurance premiums, any amounts required to pay existing encumbrances affecting the Property, and any amounts
required to complete purchase of the Real Property. 
 (c) Borrower covenants that it will have submitted its first Draw
Request for all disbursements allowed under this Agreement (based on the percentage of completion of the construction of the Improvements as of February 28, 2015) no later than thirty (30) calendar days following the Closing Date.

  

	4.2.	Subsequent Disbursements. 

 (a) Prior to making any Advances after the Initial
Disbursement, except for the final Advance, the following additional conditions shall have been satisfied, as determined by Bank: 

(i) All specific requirements for the disbursement set forth in the Disbursement Schedule shall have been satisfied. 

(ii) Any special conditions set forth in Exhibit C hereto shall have been satisfied. 

  
 -11- 

 (iii) No Event of Default shall exist. 

(iv) The representations and warranties of Borrower in this Agreement and the other Loan Documents shall be true and correct on and as of the
date of the disbursement with the same effect as if made on such date, to the extent applicable on such date. 
 (v) The Improvements shall
not have been damaged by fire or other casualty unless Bank has determined that Bank will receive insurance proceeds sufficient in Bank’s judgment to effect the satisfactory restoration of the Improvements and to permit the completion of the
Improvements prior to the Completion Date. 
 (vi) If required by Bank, Bank shall have received confirmation to its satisfaction, including
a certificate from Architect, that to date, the Improvements have been constructed substantially in accordance with the Plans and the Construction Contract and (B) the present state of construction of the Improvements will, barring then
unforeseen and unknown delays, permit completion of construction of the Improvements on or before the Completion Date. 
 (vii) If Bank has
determined that the undisbursed proceeds of the Loan, together with Borrower’s Funds (if any), are insufficient to pay all costs to complete construction of the Improvements (and all other costs included within the Project Budget), Borrower
shall have deposited into the Borrowers’ Funds Account cash in the amount of such shortfall as provided in the “BORROWER’S COVENANTS” Section of this Agreement. 

(viii) If required by Bank, (A) Title Insurer shall have issued an ALTA form 33-06 endorsement (or other endorsement form to the Title
Policy acceptable to the Bank) indicating that since the last preceding disbursement, there: (1) has been no change in the condition of title to the Real Property; (2) are no intervening liens which may now or hereafter take priority over
the disbursement to be made; and (3) dating the coverage date to the date of the proposed disbursement, and increasing the covered disbursement amount to the total amount of all disbursements under the Loan to date. 

(b) Upon satisfaction of the conditions contained in “Subsequent Disbursements” above and “Additional Conditions to
Advances” below (as applicable), on or about the first day of each calendar month following commencement of construction of the Improvements, Contractor shall submit to Borrower a Draw Request showing the estimated cost of labor performed on
and materials incorporated into the Improvements, a pro-rata portion of Contractor’s profit and that pro-rata portion of overhead of Contractor attributable to the construction of the Improvements; provided, however, monthly Draw Requests shall
not be required and Contractor and Borrower may submit Draw Requests less frequently than monthly, at Borrower’s sole option. The original of such Draw Request, certified true and correct by Contractor and approved by Borrower, shall be
submitted to Bank and Title Insurer for payment following review and Title Insurer’s  

  
 -12- 

 
commitment to issue all endorsements required by Bank. Upon verification of the accuracy of the Draw Request by inspection of the Real Property and Improvements (if required by Bank) and Title
Insurer and review of the Draw Request and related documentation as required in this Agreement, Bank shall disburse the amount of the respective approved Draw Request in accordance with the Disbursement Schedule (i) directly to Borrower or,
upon the occurrence and during the continuance of an Event of Default, directly to Contractor or to such Persons as have actually supplied labor, materials or services in connection with the construction of the Improvements (at Bank’s option as
to whom and in what amounts payments are to be made), or (ii) (ii) if specifically required by Bank, through a fund control service acceptable to Bank under a fund control agreement in form and content acceptable to Bank. Each Advance
shall be paid only following satisfaction of all conditions set forth on the Disbursement Schedule. 
  

	4.3.	Final Disbursement; Required Draw. 

 (a) Prior to making the final Advance, the
conditions set forth in “Subsequent Disbursements” above and “Additional Conditions to Advances” below (as applicable) and the following conditions shall have been satisfied, as determined by Bank: 

(i) Bank shall have received confirmation to its satisfaction that the Improvements have been substantially completed in accordance with the
Plans and the Construction Contract (if any). 
 (ii) If required by Bank, Bank shall have received a copy of the final certificate of
occupancy (or its equivalent as determined by Bank) issued by the appropriate Governmental Authority. 
 (iii) Bank shall have received
evidence that Borrower has recorded a notice of completion (or its equivalent as determined by Bank) with respect to the Improvements. 

(iv) Bank shall have received (A) such endorsements to the Title Policy as Bank may reasonably require which shall insure that the
Improvements have been completed free of all mechanic’s and materialmen’s liens or claims thereof, or (B) such additional title policies with endorsements as Bank may reasonably require, with a liability limit of not less than the
fully disbursed principal amount of the Loan, issued by Title Insurer, with coverage and in form satisfactory to Bank, insuring Bank’s interest under the Deed of Trust as a first lien on the Real Property, excepting only such items as shall
have been approved in writing by Bank. 
 (b) At the final Advance as described in this Section 4.3, Borrower shall have
submitted draw requests for amounts aggregating $32,700,000.00; provided, however, if prior to the date of such final Advance or within ninety (90) calendar days after the Improvements are deemed complete pursuant to this Section 4.3, Bank
shall have sold one or more Ratable Shares of the Loan so that Bank’s Maximum Commitment is not more than $32,700,000.00 and one or more other Co-Lenders have a Maximum 

  
 -13- 

 
Commitment aggregating $10,000,000.00, then, within five (5) Business Days following written notice from Bank to Borrower that one or more other Co-Lenders have acquired Ratable Shares
aggregating $10,000,000.00, such additional $10,000,000.00 shall be Advanced to Borrower. 
  

	4.4.	Additional Conditions to Advances. Bank shall have the right to condition any Advance upon Bank’s receipt and approval of the following, each in form and content acceptable to Bank and, as applicable, Title
Insurer: 

 (a) The Draw Request. 

(b) Bills, invoices, documents of title, vouchers, statements, receipts and any other documents evidencing the total amount expended,
incurred or due for any requested line item shown in the Project Budget. 
 (c) Evidence of Borrower’s use of a lien
release, joint check or voucher system acceptable to Bank for payments or disbursements to Contractor or to such Persons as have actually supplied labor, materials or services in connection with the construction of the Improvements, including, but
not limited to, a conditional lien waiver signed by each contractor, subcontractor and supplier as to amounts to be disbursed together with an unconditional lien waiver as to all amounts previously disbursed, all In compliance with applicable
law; 
 (d) Architect’s, inspector’s and/or engineer’s periodic certifications of the percentage and/or stage of
construction that has been completed and its conformance to the Plans and any Governmental Requirement based upon such architect’s, inspector’s and/or engineer’s periodic physical inspections of the Real Property and Improvements.

 (e) Waivers and releases of any recorded mechanic’s lien, stop notice claim, equitable lien claim or other lien claim
rights. 
 (f) Any other documents, requirements, evidence or information that Bank may request under any provision of the Loan
Documents. 
 (g) Evidence that any goods, materials, supplies, fixtures or other work in progress for which disbursement is
requested have been incorporated into the Improvements. 
 (h) In the event any Draw Request includes the cost of Offsite
Materials, such Draw Request shall include each of the following: (i) evidence that the Offsite Materials have been purchased by Borrower, have been segregated from other materials in the facility where they are stored and have been
appropriately marked to indicate Borrower’s ownership thereof and Bank’s security interest therein; (ii) evidence that the Offsite Materials are insured as required by this Agreement; and (iii) at Bank’s request, a security
agreement, financing statement, acknowledgment, and/or subordination agreement in form and content satisfactory to Bank executed by the supplier of the Offsite Materials, and/or such other Persons as Bank determines may have an interest in or claim
to the Offsite Materials, together with such other additional documentation and evidence as Bank may reasonably require to assure itself that it has a perfected first priority lien on the Offsite Materials. 

(i) In the event any Draw Request Includes the cost of Onsite Materials, such Draw Request shall include each of the following:
(i) evidence that the Onsite Materials have been purchased by Borrower; (ii) evidence that the Onsite Materials are insured as required hereunder; and (iii) evidence that the Onsite Materials are stored In an area on the Real Property
for which adequate security is provided against theft and vandalism. 

  
 -14- 

	4.5.	Disbursement Limits, 

 (a) Borrower hereby represents to Bank that, as of the date
of this Agreement, the Project Budget represents the total amount needed by Borrower to construct the Improvements and to perform Borrower’s obligations under the Loan Documents. Bank shall not be required to make any Advance for any
Construction Costs or any other purpose that is not set forth in the Project Budget nor shall Bank be required to make any Advance for any line item in the Project Budget in an amount which when added to the sum of all prior Advances for that line
item would exceed the sum allocated in the Project Budget for that line item. 
 (b) Bank reserves and shall have the right to
make Advances which are allocated to any line items in the Project Budget for such other purposes or In such different proportions as Bank may, in its sole discretion, deem necessary or advisable. Borrower shall have no right whatsoever to
reallocate Advances from one line item in the Project Budget to another or otherwise amend the Project Budget without the prior consent of Bank. 

(c) All Advances shall be made In accordance with the applicable provisions of the Project Budget and the Disbursement Schedule. All
funds disbursed to Borrower shall be received by Borrower in trust and Borrower agrees that such funds shall be used only for the payment of those items contemplated by the particular Advance. 

(d) Bank shall not be required to disburse an aggregate amount of the proceeds of the Loan for labor furnished to and materials
incorporated into the Improvements during any stage of construction which exceeds the lesser of (i) the cost of such labor and materials, and (ii) the amount allocated to that stage of construction in the Project Budget. In any event, Bank
shall not be required to disburse any amount which, in Bank’s opinion, will reduce that portion of the undisbursed proceeds of the Loan designated for completion of the Improvements below the amount needed to pay for the labor and materials
necessary to complete the Improvements. 
  

	5.	REPRESENTATIONS AND WARRANTIES OF BORROWER. Borrower represents and warrants (and each request for an Advance under the Loan shall be deemed a representation and warranty by Borrower on the date of such
request) that: 

  

	5.1.	Formation. Borrower is duly organized and in existence under the laws of the state of Borrower’s organization and is duly qualified and in good standing to conduct business in each jurisdiction in which
Borrower’s business is conducted. 

  
 -15- 

	5.2.	Authority; No Conflict. The execution, delivery and performance of the Loan Documents are within Borrower’s power, have been duly authorized, are legal, valid and binding obligations of Borrower, and are not
in conflict with the terms of any charter, bylaw or other organizational documents of Borrower or with any law, indenture, or material agreement or undertaking to which Borrower is a party or by which Borrower or the Property is bound or affected.
Borrower owns and is authorized to operate the Property. 

  

	5.3.	No Defaults. There is no event which is, or with the giving of notice or the lapse of time, or both, would be, an Event of Default (as defined below). 

 

	5.4.	No Material Adverse Effect. Borrower is not aware of any fact, occurrence or circumstance that Borrower has not disclosed to Bank in writing that has, or could reasonably be expected to have, a material adverse
effect on the Property, Borrower’s ability to repay the Loan or perform its obligations under the Loan Documents, or the validity, priority, or enforceability of the Deed of Trust or any other Loan Document. 

 

	5.5.	Leases and Personal Property. All leases of the Property, if any, including all amendments, guaranties and subleases (collectively, the “Leases”), are in full force and effect, and there are no defaults
under any of the Leases, provided that the only Lease as of the date hereof is that certain Single-Tenant Triple Net Lease between Borrower and its affiliate, Petco Animal Supplies Stores, Inc.. Borrower holds title to all personal property and
fixtures necessary for the operation and management of the Property for the uses presently being conducted thereon. 

  

	5.6.	No Change. All financial statements, financial information, documentation and other information provided to Bank in connection with the Loan are true, correct and complete in all material respects and no material
adverse change has occurred with respect thereto since the date shown thereon. 

  

	5.7.	Compliance With Law. Borrower has complied in all material respects with all laws, regulations, restrictions, requirements, permits, agreements, covenants or encumbrances applicable to the Property (collectively,
the “Requirements”). Borrower has not received any written notice of violation of the foregoing that has not been cured. 

  

	5.8.	Other Liens. Borrower has made no contract or arrangement of any kind, the performance of which by the other party thereto would give rise to a lien on the Property, except for its arrangements with the
Architect, the Contractor or the subcontractors or vendors for the work of such subcontractor or third party vendor. 

  

	5.9.	Financial Statements. The Financial Statements delivered to Bank by Borrower and any Loan Party are true and correct in all material respects, have been prepared in accordance with generally accepted accounting
principles (“GAAP”) consistently applied, and fairly present the financial condition(s) of the Person(s) referred to therein as of the respective dates; no materially adverse change has occurred in the financial condition reflected in any
such financial statement since the date shown thereon, and no additional material liabilities have been incurred by any such Person since the date thereof other than the borrowing contemplated hereby or other borrowing disclosed in writing to and
approved by Bank. 

  
 -16- 

	5.10.	No Actions. There are no actions, suits or proceedings pending or, to the best knowledge of Borrower, threatened against or affecting Borrower or the Property or involving the validity, priority or enforceability
of the Deed of Trust or any other Loan Document or affecting Bank’s right to receive payment in full of all amounts outstanding under the Note or other Loan Documents. Borrower is not in default with respect to any order, writ, injunction,
decree or demand of any court or any Governmental Authority. 

  

	5.11.	Ownership of Personal Property. Borrower owns directly all of the Personal Property free and clear of all liens, encumbrances and adverse claims and the security interest of Bank in the Personal Property shall be
a first lien thereon, other than Personal Property which has been leased or financed in the ordinary course of business. 

  

	5.12.	Other Financing. Except as otherwise disclosed in writing to Bank and approved by Bank in writing prior to the Closing Date, Borrower has not received other financing for either the acquisition of the Property or
the construction and installation of the Improvements. 

  

	5.13.	Plans, Defects. The Plans are satisfactory to Borrower, and to the extent required by any Governmental Requirement, have been approved by all applicable Governmental Authorities; the Plans so approved have been
approved by Borrower and Contractor as set forth In the Certification of Plans and Specifications delivered to Bank by Borrower. 

  

	5.14.	Intentionally Omitted. 

  

	5.15.	Intentionally Omitted. 

  

	5.16.	CC&Rs, Zoning. Borrower has examined, is familiar with, and the Improvements will in all material respects conform to and comply with, all covenants, conditions, restrictions, reservations and zoning
ordinances affecting the Property. 

  

	5.17.	Finder’s Fees. Borrower has not dealt with any Person who is or may be entitled to any finder’s fee, brokerage commission, loan commission or other sum in connection with the execution of this
Agreement, consummation of the transactions contemplated hereby, or the making of the Loan by Bank to Borrower. 

  

	5.18.	Draw Request. Each Draw Request shall be true, complete and accurate and the submission of same shall constitute a reaffirmation of the representations, warranties and covenants contained herein to the extent
applicable as of the date of such Draw Request. 

  

	5.19.	Other Information. All information, documentation and other materials provided to Bank by Borrower or, to Borrower’s knowledge, third parties, are true, complete and accurate in all material respects.

  

	5.20.	No Default. No Event of Default has occurred and is continuing. 

  
 -17- 

	6.	BORROWER’S COVENANTS. Borrower covenants and agrees with Bank that during the Construction Loan Period and the Term Loan Period, as applicable, until the full and final payment of all sums owed under
the Loan Documents, unless Bank waives compliance in writing: 

  

	6.1.	Borrower’s Funds. At the time and in amounts required by Bank, Borrower shall deposit Borrower’s Funds into the Borrower’s Funds Account. Should it appear at any time in Bank s judgment that the
sum of undisbursed proceeds of the Loan and the then balance of the Borrower’s Funds Account are insufficient to provide the financing for completion of the Improvements, Borrower shall pay to Bank, within ten (10) days following receipt
of written demand by Bank, an amount equal to such deficiency for deposit into the Borrower’s Funds Account. 

  

	6.2.	Lien Priority. At Borrower’s own cost and expense, Borrower shall maintain the Deed of Trust as a first lien on the Property, subject to the permitted liens and encumbrances in the Title Policy or otherwise
approved by Bank in writing. 

  

	6.3.	Construction Start and Completion. 

 (a) Borrower has represented that
construction of the Improvements has commenced prior to the date hereof. 
 (b) Intentionally omitted. 

(c) Borrower shall cause (i) the Improvements to be constructed in a good and workmanlike manner, and with materials as specified
in the Plans, in accordance with the Plans, Governmental Requirements and sound building and engineering practices, (ii) the construction of the Improvements to be prosecuted with diligence and continuity and completed in accordance with the
Plans on or before the Completion Date, free and clear of liens or claims for liens, and (iii) all licenses and permits necessary for the occupancy, use or sale of the Improvements to be issued. 

 

	6.4.	Change Orders. 

 (a) Borrower shall not permit any change In the Plans without
Bank’s prior consent if any such change (i) constitutes a material change in material or equipment specifications, architectural or structural design, or the value or quality of the Improvements, or (ii) would result in an increase or
decrease in the cost of construction of the Improvements in excess of $4,270,000.00 in the aggregate for all changes. 
 (b)
Borrower shall submit any proposed change in the Plans to Bank not later than ten (10) Business Days prior to the commencement of construction relating to such change. 

(c) Borrower shall deliver to Bank in connection with any proposed change requiring Bank’s prior written consent (i) a written
request therefor, together with working drawings and a written description of the proposed change, submitted on a change order form acceptable to Bank and executed by Borrower, Architect and Contractor, and (ii) evidence satisfactory to Bank as
to the cost and time necessary to complete the proposed change. 
 (d) Prior to permitting any change in the Plans requiring
Bank’s consent, Borrower shall satisfy any condition of Bank’s consent, including, but not limited to, depositing funds to cover any increased Construction Costs into the Borrower’s Funds Account as required by Bank, which Bank is
authorized to disburse in accordance with the Project Budget and the Disbursement Schedule for payment of such Change Orders upon completion of such changes to Bank’s reasonable satisfaction. 

  
 -18- 

	6.5.	Detailed Cost Breakdown. Borrower shall not modify the Project Budget or the Detailed Cost Breakdown without Bank’s prior written consent, which consent may be conditioned upon, among other things,
(a) Bank’s receipt of evidence satisfactory to Bank that the change in the Project Budget or the Detailed Cost Breakdown is reasonably necessary, and (b) Bank’s confirmation that, in the opinion of Bank, sufficient funds remain
in the undisbursed proceeds of the Loan (and in the Borrower’s Funds Account, if any) to pay for all remaining direct or indirect costs to complete construction of the Improvements. 

 

	6.6.	Contractor Covenants. Borrower shall use commercially reasonable efforts to cause the Contractor (or if no Contractor, the subcontractors) to cooperate with Bank. 

 

	6.7.	Construction Contract Only. Borrower shall not execute any contract or become party to any arrangement for the performance of work on the Real Property with any Person except Contractor, if there is one and if
there is no Contractor, Borrower shall enter into Major Contracts only with those subcontractors reasonably approved by Bank for the performance of work on the Real Property, provided that the subcontractors described in the contracts on Schedule
6.7 hereto are hereby approved by Bank. 

  

	6.8.	Paid Vouchers. Borrower shall deliver to Bank, promptly following demand, any contracts, bills of sale, statements, receipted vouchers or agreements under which Borrower claims title to any materials, fixtures or
articles incorporated in the Improvements. 

  

	6.9.	Defect Corrections. Promptly following the demand of Bank, Borrower shall correct any defect in the Improvements or any departure from the Plans not approved by Bank. 

 

	6.10.	Application of Disbursements. Borrower shall receive the disbursements to be made hereunder in trust, strictly for the purpose of paying the costs identified in the request for such disbursement.

  

	6.11.	Intentionally Omitted. 

  

	6.12.	Personal Property Installation. Without Bank’s written consent, Borrower shall not install at the Property materials, personal property, equipment, or fixtures subject to any security agreement or other
agreement or contract giving any Person other than Borrower any right or title to such property other than in the ordinary course of business. 

  
 -19- 

	6.13.	Record Keeping, Financial and Other Information. Notwithstanding the provisions of the Deed of Trust, Borrower shall maintain full and complete books of account and other records reflecting the results of its
operations and shall cause each Loan Party to maintain full and complete books of account and other records in accordance with GAAP, consistently applied, and will furnish or cause to be furnished to Bank such financial information concerning the
Property, Borrower and each Loan Party as Bank may require. Bank shall keep confidential, and shall cause its employees, consultants, agents and representatives to keep confidential, all Information concerning the financial condition of Borrower,
each Loan Party and the Property, and shall not disclose or reveal such Information to any other party, except as otherwise expressly permitted under the Loan Documents. Without limiting the generality of the foregoing, Borrower shall furnish or
cause to be furnished to Bank, without prior request or demand: 

 (a) Within forty-five (45) days after the
close of each fiscal quarter, each Loan Party’s unaudited balance sheet, and income and expense statement (with supporting schedules) for such fiscal quarter all prepared in accordance with GAAP, and a certificate setting forth the calculation
of the Liquidity of Petco Animal Supplies, Inc., a Delaware corporation. 
 (b) Within ninety (90) days after the close of
each fiscal year, a copy of Petco Animal Supplies, Inc. a Delaware corporation’s statement of financial condition, including at least its balance sheet, income and expense statement, and statement of retained earnings for such fiscal year,
examined and prepared on an audited basis by an independent certified public accountant selected by Borrower and reasonably satisfactory to Bank, all prepared In accordance with GAAP. 

(c) Within 120 days after the close of each fiscal year, an annual balance sheet, income statement, and statement of retained earnings
with supporting schedules (collectively, the “Financial Statements”) for each Loan Party. 
 (d) Such other Financial
Statements and information as Bank may reasonably request from time to time. 
 Notwithstanding any provision to the contrary in this
Agreement, Borrower may furnish the Financial Statements to Bank through a secure online portal established by Borrower that permits the Bank to access such Financial Statements in lieu of delivering hard copies pursuant to Section below, provided
that Borrower has provided written notice in accordance with this Agreement (or other means of notice as mutually agreed) that the Financial Statements are available for delivery through the secure online portal (with instructions for access) on or
before the date such Financial Statements are required to be delivered to Bank pursuant to the Loan Documents. 
  

	6.14.	Bank’s Audit and Inspection Rights. Borrower shall permit any representative of Bank, at any reasonable time, to inspect, audit and examine and copy the books and records of Borrower relating to the
Property. 

  
 -20- 

	6.15.	Dividends, Distributions. Following the occurrence and during the continuance of an Event of Default, Borrower shall not (a) make any distribution either in cash, stock or any other property,
(a) redeem, retire, repurchase or otherwise acquire any shares or interest in Borrower, or (b) repay any outstanding indebtedness or other advance to any shareholder, partner, member or, if a trust, any trustor or beneficiary of
Borrower. 

  

	6.16.	Payment of Lawful Claims. Borrower shall pay or discharge all lawful claims, including taxes, assessments and governmental charges or levies imposed upon Borrower or Borrower’s income or profits or upon any
property belonging to Borrower prior to the date upon which any penalties attach; provided that Borrower shall not be required to pay any such tax, assessment, charge or levy, the payment of which is being contested in good faith and by proper
proceedings and for which Borrower is maintaining adequate reserves in accordance with GAAP. 

  

	6.17.	Payment of Costs. Borrower shall pay all costs and expenses incurred by Bank in connection with the enforcement by Bank of any of Borrower’s obligations under this Agreement or the other Loan Documents, and
the preparation of this Agreement and the other Loan Documents, including but not limited to (a) all appraisal fees, cost engineering and inspection fees, reasonable legal fees and expenses (including the fees and costs of in-house counsel and
legal staff), accounting fees, environmental consultant fees and costs of title insurance, survey, seismic, escrow and other fees and charges, and (b) all taxes and recording expenses, including stamp taxes, if any. 

 

	6.18.	Approval of Easements and Other Documents. Borrower shall submit to Bank for Bank’s approval (not to be unreasonably withheld, conditioned or delayed) all prospective easements, private or public
dedications, and declarations of covenants, conditions and restrictions intended to affect the Real Property and Bank’s approval shall be obtained in writing prior to the execution or granting thereof by Borrower. Borrower’s request for
approval of any prospective easement or private or public dedication shall be accompanied by a drawing or survey showing the precise location of such prospective easement or private or public dedication. Borrower’s request for approval of any
prospective declaration of covenants, conditions and restrictions shall be accompanied by a description of the property affected thereby. 

  

	6.19.	Compliance with Laws; Preservation of Rights. Borrower shall comply promptly with all Governmental Requirements, and shall obtain, preserve and maintain in good standing, as applicable, all rights, privileges and
franchises necessary or desirable for the operation of the Property and the conduct of Borrower’s business thereon and therefrom. If payment of the indebtedness secured by the Deed of Trust or any of the other Security Documents is to be
insured or guaranteed by any governmental agency, Borrower shall comply with all rules, regulations, requirements and statutes relating thereto or provided in any commitment issued by any such agency to insure or guarantee payment of such
indebtedness. 

  
 -21- 

	6.20.	Notices: Borrower shall promptly notify Bank in writing of: 

 (a) Within fifteen
(15) days after receiving notice of any litigation or arbitration proceeding (i) applicable to Borrower or (ii) applicable to the Property in which an adverse outcome would materially and adversely affect or impair the value of the
Property where, in either case the amount in controversy is $250,000 or more, or that would otherwise have a material adverse effect on Borrower’s obligations under this Agreement or the Loan Documents; 

(b) Within fifteen (15) days after receiving notice of any material dispute which may exist between Borrower and any Governmental
Authority; 
 (c) Within fifteen (15) days after the occurrence of any Event of Default (as defined below); 

(d) Within fifteen (15) days after the occurrence of any other matter which has resulted or is likely to result in a material
adverse change in (i) the physical condition or operation of the Property, (ii) the financial condition of Borrower or any Loan Party or (iii) Borrower’s ability to perform in a timely manner any of Borrower’s obligations
under any of the other Loan Documents; 
 (e) Any change in Borrower’s name, state of organization, principal place of
business, or the location of any collateral for the Loan other than the Property, and promptly following (and in all events within five (5) business days) any change in Borrower’s members or senior management; 

(f) Promptly in the event Borrower receives a notice that the Property or Borrower’s business operations at the Property violate
any applicable Requirement in a manner which is likely to otherwise have a material adverse effect on Borrower’s ability to perform its obligations under the Loan Documents or, if not corrected, materially impair the value of the Property as
collateral; and 
 (g) Promptly in the event Borrower receives any notice that the Improvements or construction thereof or the
Property fails in any respect to comply with any applicable Governmental Requirement in a manner which would otherwise have a material adverse effect on the value of the Property as collateral. 

 

	6.21.	 Indemnity. Borrower shall Indemnify, defend and hold Bank harmless from and against any and all liabilities, claims, actions, proceedings,
damages, costs and expenses (including all attorney’s fees, including, but not limited to, the fees and costs of Bank’s in-house counsel and legal staff) arising out of or resulting from (a) the Loan, (b) any finder’s fee,
brokerage commission, loan commission or other sum in connection with the consummation of the transactions contemplated hereby, (c) the development of the Property, construction of the Improvements or the ownership, operation or use of the
Property, or (d) the issuance by Bank of any Set Aside Letter, whether such matters are based on theories of derivative liability, comparative negligence or otherwise, at Borrower’s own cost and with counsel approved by Bank, unless Bank
elects to conduct its own defense at the expense of Borrower; provided, however, Borrower’s indemnity obligations shall not extend to liabilities or claims arising out of Bank’s gross negligence

  
 -22- 

	 	
or willful misconduct. The liability of Borrower under this indemnity shall not be limited or impaired in any way by (i) the release, reconveyance, foreclosure or other termination of the
Deed of Trust, the payment in full of the Loan, any bankruptcy or other bankruptcy proceeding, or any other event whatsoever, (ii) any provision in the Loan Documents or applicable law limiting Borrower’s liability or Bank’s recourse
or rights to a deficiency judgment, or (iii) any change, extension, release, inaccuracy, breach or failure to perform by any party under the Loan Documents. Borrower’s liability hereunder is direct and primary and not secondary as a
guarantor or surety. 

  

	6.22.	Performance of Acts. Upon request by Bank, Borrower shall perform all acts which may be reasonably necessary or advisable to perfect any lien or security interest provided for in the Loan Documents or to carry
out the intent of the Loan Documents. 

  

	6.23.	Notice of Change. Borrower shall give Bank prior written notice of any change in the location of Borrower’s place of business (or Borrower’s chief executive office if Borrower has more than one place of
business) or Borrower’s name, business structure or place of incorporation or other formation, and, unless otherwise approved by Bank in writing, Borrower shall maintain all tangible Personal Property (other than the books and records) at the
Real Property and all books and records at the Real Property or at Borrower’s office at 654 Richland Hills Drive, San Antonio, Texas. 

  

	6.24.	Prohibited Activities. Without Bank’s prior written consent: 

 (a)
Borrower shall not engage in any business activities substantially different from Borrower’s present business or liquidate or dissolve Borrower’s business; 

(b) Borrower shall not merge or consolidate with or into, enter into any partnership, joint venture, syndicate or similar business
arrangement with, any Person or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person; provided, notwithstanding the preceding, an Affiliate of Borrower may merge into Borrower following written notice of such merger to Bank so long as Borrower is the surviving entity, its business operations are not adversely affected by the
merger, and no Default or Event of Default then exists or occurs as a result of such merger; or 
 (c) Borrower shall not amend
or modify any organizational documents pertaining to Borrower in any material respect or in any other manner which directly affects Borrower’s business Operations at the Property or its ability to perform its obligations under the Loan
Documents. 
  

	6.25.	Required Occupancy. 

 (a) During the Term Loan Period, Borrower shall occupy all
rentable portions of the Property itself or use its best efforts to keep all rentable portions of the Property not so occupied leased to others. Borrower will maintain the mix of tenants such that the portion of the net rentable area of the Property
occupied by itself and Affiliated Tenants is at all times thirty-five percent (35%) or more of the total net rentable area of the Property (such 

  
 -23- 

 
occupancy defined herein as “Owner-Occupied”). “Affiliated Tenants” means persons or entities controlled and owned, directly or Indirectly, thirty-five percent (35%) or
more by Borrower, any direct or indirect parent of Borrower, or any guarantor. Borrower, any Affiliated Tenant and Guarantor are hereinafter sometimes referred to individually as a “Loan Party” and collectively as the “Loan
Parties.” 
 (b) In the event Borrower wishes to reduce the percentage of the Property occupied by itself and Affiliated Tenants
to less than that required to qualify as Owner Occupied, Borrower shall submit such request to Bank in writing, including all financial and other information which Bank may require. Although Bank may consider the request in its sole discretion, and
may ask Borrower to submit additional information, Bank shall not be obligated to consent to the request. If Bank consents, such consent must be in writing and may include additional covenants and conditions which Bank may require, in its sole
discretion. 
  

	6.26.	Leases. During the Term Loan Period: 

 (a) Notwithstanding the provisions
of the Deed of Trust to the contrary, all Leases (if any) shall be entered into with tenants acceptable to Bank, provided that Borrower shall not be required to obtain Bank’s consent in connection with any Lease with, or occupancy or use of the
Property by, an Affiliated Tenant. Borrower shall not (i) accept any Tenant’s payment of more than one month’s rent in advance (except that Borrower may collect the last month’s rent for residential property in advance),
(ii) grant any tenant any rights or options to purchase all or any portion of the Property or (iii) if the Property is commercial property, release any tenant or guarantor from any obligation. Borrower shall perform all of its obligations
under any Lease. 
 (b) Notwithstanding the provisions of the Deed of Trust, and provided that Borrower is not in default
hereunder, for any Lease which is less than twenty percent (20%) of the Property’s net rentable area or is for an initial term of less than ten (10) years, Borrower may, without Bank’s consent: (i) cancel, terminate or
consent to the surrender of such Lease, (ii) modify or alter the terms of such Lease (except as otherwise expressly provided for in subparagraph (a) above, (iii) assign or sublet such Lease and (iv) enter Into any new Lease.
Borrower shall submit to Bank, within ten (10) business days after the execution thereof, all new Leases, and all modifications, amendments, consents to assignment or subletting of existing Leases, and shall promptly notify Bank of the
termination or surrender of any Lease. 
 (c) Borrower shall cause the tenancies of all Affiliated Tenants (included the Major
Lease) to be unconditionally subordinated to the lien of the Deed of Trust without right of attornment by causing such Affiliated Tenants to execute and deliver to Bank such forms providing for such subordination as Bank may in its sole discretion
require. Borrower shall cause the tenancies of any non-Affiliated Tenants to be: (I) unconditionally subordinated to the lien of the Deed of Trust without right of attornment; or (ii) subordinated by a subordination and non-disturbance
agreement, as determined by Bank In Its discretion on a case-by-case basis. Borrower shall cause all tenants to execute and deliver to Bank such commercially reasonable estoppel certificates as Bank may in its discretion require. 

  
 -24- 

	6.27.	Operating Account. Concurrently with the closing of the Loan and as a condition precedent thereto, Borrower shall have opened in Borrower’s name an interest bearing demand deposit account with Bank (the
“Operating Account”). If funds are not available for disbursement from the Interest Reserve under the Loan and during the Term Loan Period, Bank is authorized to automatically debit from the Operating Account all payments of principal and
Interest due Bank required to be made by Borrower under the Note. Borrower shall maintain sufficient funds in the Operating Account for payment of such amounts and all other usual and customary expenses incurred from time to time. Provided no Event
of Default has occurred and is continuing. Borrower shall have the right to withdraw funds on deposit in the Operating Account from time to time and at any time in order to (i) cover, in the event Borrower has not authorized Bank to
automatically debit from the Operating Account all payments required to be made by Borrower under the Note payments of principal and interest due Bank under the Note, (ii) pay expenses incurred by Borrower in connection with the operation and
maintenance of the Property, and (iii) make distributions to its beneficial owners. Borrower hereby grants to Bank a security interest in all funds on deposit in the Operating Account as additional collateral for Borrower’s obligations
under the Loan Documents. 

  

	6.28.	Stop Notices; Mechanic’s Liens. If (a) a bonded stop notice Is received by Bank, which Bank believes requires the withholding of funds from any Advance or from any disbursement of proceeds from the
Borrower’s Funds Account, or (b) a mechanics’ lien, material supplier’s lien or other construction lien is recorded against the Real Property, then Borrower shall within twenty (20) days of such receipt or recordation or
within five (5) Business Days of Bank’s demand (whichever first occurs): 

 (a) pay and discharge
same; 
 (b) effect the release of same through a court proceeding or by recording a surety bond in sufficient form and amount
issued by an acceptable surety; or 
 (c) provide Bank with such other assurance as Bank, in its sole discretion, deems to be
satisfactory for the payment of, and protection of Bank from, such lien or bonded stop notice. 
  

	6.29.	Set Aside Letters. In the event Bank issues, at Borrower’s request, any Set Aside Letter, Borrower represents, warrants and agrees as follows: 

(a) The sum which Borrower requests Bank to allocate for Bonded Work shall be sufficient to pay for the costs of construction and
completion of the Bonded Work in accordance with any agreement between Borrower and the Governmental Authority and a copy of such agreement shall be furnished to Bank by Borrower as a condition precedent to the issuance by Bank of any Set Aside
Letter; 
 (b) Bank is irrevocably and unconditionally authorized to disburse to the Governmental Authority or Surety all or
any portion of proceeds of the Loan upon a demand of the Governmental Authority or Surety made in accordance with the terms and conditions of the Set Aside Letter; 

  
 -25- 

 (c) Any disbursement or payments which Bank makes or may be obligated to make under any
Set Aside Letter, whether made directly to the Governmental Authority, Surety, or to others for completion of all or part of the Bonded Work, shall be deemed an Advance to or for the benefit of Borrower; 

(d) Bank shall have no obligation to release any security under the Loan Documents unless and until Bank has received a full and final
written release of its obligations under each Set Aside Letter; and 
  

	6.30.	Management of Property. Borrower shall not enter into any agreement providing for the management or operation of the Real Property or the Improvements without the prior written consent of Bank.

  

	6.31.	Negative Covenants. 

 Without Bank’s prior written consent: 

(a) Borrower or any other Loan Party shall not engage In any business activities substantially different from Borrower’s or any
Loan Party’s present business; provided, however, any business activities that are related to pet sales, sales and distribution of pet supplies, pet pharmacy services and supplies, Incidental veterinary and pet boarding services, pet training
lessons, animal adoption events and related services and sales shall be deemed to be consistent with Borrower’s and any Loan Party’s present business; 

(b) Affiliated Tenant or Guarantor shall not amend or modify its organizational documents in a manner which directly adversely affects
its ability to perform its obligations under the Loan Documents; 
 (c) Borrower or any other Loan Party shall not lease or
dispose of all or a substantial part of Borrower’s or any Loan Party’s business or assets, other than in the ordinary course of business; 

(d) Borrower or any other Loan Party shall not liquidate or dissolve Borrower’s or any Loan Party’s business; 

(e) Affiliated Tenant or Guarantor shall not enter into any consolidation, merger, joint venture, syndication or other combination which
would adversely affect its business operations or its ability to perform Its obligations under the Loan Documents; provided, notwithstanding the preceding, an Affiliate of Affiliated Tenant or Guarantor may merge into it following written notice of
such merger to Bank so long as Affiliated Tenant or Guarantor is the surviving entity, its business operations are not adversely affected by the merger, and no Default or Event of Default then exists or occurs as a result of such merger; or

 (f) following the occurrence and during the continuance of an Event of Default, Borrower or any other Loan Party shall not make
any distribution either in cash, stock or any other property; nor redeem, retire, repurchase or otherwise acquire any shares or interest in Borrower or any Loan Party; or repay any outstanding indebtedness or other advance to any shareholder,
partner, member or, if a trust, any trustor or beneficiary, of Borrower or any Loan Party. 

  
 -26- 

	6.32.	Impound Accounts. Upon the occurrence of any Event of Default hereunder, at Bank’s option, Borrower shall establish with Bank (i) a non-interest bearing tax and/or insurance impound account and shall
deposit therein, on a monthly basis, sufficient funds to pay real property taxes, assessments and premiums for fire and hazard insurance, rent loss insurance, and such other insurance covering the Property as Bank may require, not later than thirty
(30) days prior to their due date(s); and/or (ii) a non-interest bearing account and shall deposit therein, on a monthly basis, an amount (as determined by Bank) sufficient to accumulate funds to pay operating, replacement and/or tenant
improvements costs when the same are projected to become payable. 

  

	6.33.	Minimum Liquidity. Petco Animal Supplies, Inc., a Delaware corporation, shall maintain a combined Liquidity of not less than $50,000,000.00 at all times. For purposes of this Agreement, “Liquidity” is
the aggregate of Petco Animal Supplies, Inc.’s unused operating line of credit with the Bank and any other federal or state-regulated financial institution, and unrestricted and unencumbered Cash and Cash Equivalents, reasonably acceptable to
Bank. Liquidity shall be calculated by Petco Animal Supplies, Inc. and reported by Borrower to Bank quarterly, subject to Bank’s verification. Borrower shall cause Petco Animal Supplies, Inc. to provide such further information and
documentation as Bank reasonably requests to confirm its Liquidity. 

  

	7.	EVENTS OF DEFAULT. The occurrence of any of the following events (collectively, “events of default,” and individually, an “event of default”) shall, at bank’s option, terminate any
obligation on the part of bank to make or continue to make advances of the loan or make all sums of principal and interest and any other amounts owing under the loan immediately due and payable: 

 

	7.1.	The failure of Borrower to pay within (10) days of its due date any installment of principal or interest under the Note (except at maturity, by acceleration or as part of a prepayment hereunder, when any
such payment shall be paid when due) or any other sum as provided in any Loan Document or any other instrument or agreement secured by the Deed of Trust, or Borrower fails to deposit with Bank any of Borrower’s Funds as and when required under
this Agreement; or 

  

	7.2.	 Borrower shall default in the due performance or observance of any condition, covenant or obligation of the Loan Documents, and the
continuation of such failure following the expiration of any applicable notice, cure or grace period, if any provided for herein or in any other Loan Document; provided, however, that in the event no cure or grace period is otherwise provided for
herein or therein, such failure shall not be an Event of Default hereunder if Borrower observes or performs such term, condition, covenant, agreement or obligation within thirty (30) days of receipt of written notice from Bank of
Borrower’s 

  
 -27- 

	 	
failure to observe or perform any such term, condition, covenant, agreement, or obligation (or if not reasonably susceptible of cure within thirty (30) days, then for a reasonable time
thereafter provided the cure is commenced in thirty (30) days and diligently and continuously prosecuted thereafter); or 

  

	7.3.	This Deed of Trust shall cease to be an enforceable first priority lien on or security interest in any property given as security for the Loan (including the Property), with only such exceptions as may be
approved by Bank in writing or appear in the loan policy of title insurance issued to Bank at closing; or 

  

	7.4.	Failure in the due and complete observance or performance of any material condition, covenant or obligation of Borrower contained in any Lease which covers 20% or more of the net rentable area of the Property,
and the continuation of such failure following the expiration of any applicable notice, cure or grace period applicable thereto, if any, provided for in such Lease; 

 

	7.5.	Borrower’s failure to maintain the Owner-Occupied status of the Property; or Borrower fails to (a) pay when due any sums payable under this Agreement, the Note or any other Loan Document after giving
effect to the express curative provisions (if any) provided herein or therein, or 

  

	7.6.	Borrower has breached, or defaulted under, any term, condition or provision contained in (a) this Agreement or any other Loan Document that is not specifically referred to in this Section, or (b) any
ground lease, if the Property is a leasehold estate. 

  

	7.7.	Borrower or Contractor does not (a) commence construction of the Improvements within the time period required in this Agreement, (b) proceed diligently and continuously with the construction of the
Improvements, or the construction of the Improvements is otherwise discontinued for a period of five (5) consecutive Business Days or more, for any reason, subject to delays due to Force Majeure or (c) complete the construction of the
Improvements and cause the issuance of all licenses and permits necessary for the occupancy and use of the Improvements, on or before the Completion Date. 

  

	7.8.	Any representation or warranty by Borrower or any Loan Party made hereunder or under any other Loan Document proves to be materially false or misleading. 

 

	7.9.	Any person obtains an order or decree in any court of competent jurisdiction prohibiting the construction of the Improvements or Borrower or Bank from performing this Agreement, and such order or decree is not
vacated within thirty (30) days after the granting thereof. 

  

	7.10.	Borrower neglects, fails or refuses to keep in full force and effect any permit or approval with respect to the construction of the Improvements or the use and occupancy thereof. 

 

	7.11.	Any bonded notice to withhold in connection with the Loan is validly served on Bank and within five (5) Business Days of the receipt of such service (a) is not discharged, or (b) if the amount
claimed is disputed in good faith by Borrower or Contractor, an appropriate counter bond or equivalent acceptable to Bank is not provided to Bank. 

  
 -28- 

	7.12.	The imposition, voluntary or involuntary, of any lien or encumbrance upon the Property without Bank’s written consent, unless an adequate counter bond is provided and such lien is accordingly released within
ten (10) Business Days of the imposition of such lien. 

  

	7.13.	Bank fails to have an enforceable first lien on or security interest in any property given as security for the Loan, except as permitted by Bank in writing. 

 

	7.14.	An event or condition occurs or arises that materially impairs Borrower’s intended use of the Property. 

  

	7.15.	Borrower neglects, fails or refuses to keep in force and effect any insurance coverage required by Bank. 

  

	8.	REMEDIES. If an event of default occurs under this agreement: 

  

	8.1.	Bank may exercise any right or remedy which it has under any of the Loan Documents, or which is otherwise available at law or in equity or by statute, and all of Bank’s rights and remedies shall be
cumulative. 

  

	8.2.	Bank shall have the right, in its sole discretion, to enter the Property and take possession of it, whether in person, by agent or by court-appointed receiver, to perform any and all work and labor necessary to
complete the Improvements substantially in accordance with the Plans, and to collect rents and otherwise protect its collateral and exercise its rights and remedies under the Loan Documents. If Bank exercises any of the rights or remedies provided
in this Section, that exercise shall not make Bank a partner or joint venturer of Borrower. All sums which are expended by Bank in completing the Improvements or in preserving Bank’s collateral for the Loan shall be considered an additional
loan to Borrower secured by the Deed of Trust and Security Documents and shall bear interest at the Default Rate. 

  

	8.3.	Notwithstanding the exercise of any remedy described above or the existence of any Event of Default, Bank, at Its option, may make any Advance or disburse any or all of Borrower’s Funds without
(a) waiving Bank’s right to demand payment of the Loan, (b) incurring liability to make any other or further Advances, and (c) waiving Bank’s right to require compliance with Borrower’s covenant to correct any defect in
the Improvements or departure from the Plans not approved by Bank. 

  

	9.	POWER OF ATTORNEY. Borrower hereby constitutes and appoints Bank as Borrower’s true and lawful attorney in fact with the power and authority, including full power of substitution upon the occurrence
and during the continuance of an Event of Default, as follows: 

  

	9.1.	To take possession of the Property and complete the Improvements. 

  

	9.2.	To use any of Borrower’s Funds and any undisbursed proceeds of the Loan for the purpose of completing the Improvements and for other costs related thereto. 

 

	9.3.	To make such additions and changes and corrections in the Plans as may be necessary or desirable, as Bank, in Bank’s sole discretion, deems proper to complete the Improvements. 

  
 -29- 

	9.4.	To employ such contractors, subcontractors, agents, architects, engineers and inspectors as are required to complete the Improvements. 

 

	9.5.	To employ security personnel to protect the Property from damage. 

  

	9.6.	To pay, settle or compromise all existing bills and claims against Borrower’s Funds or any undisbursed proceeds of the Loan as may be necessary or desirable or as Bank deems proper, in Bank’s sole
discretion, for the completion of the Improvements, or for the protection or clearance of title to the Property, or for the protection of Bank’s interest with respect thereto. 

 

	9.7.	To prosecute and defend all actions and proceedings in connection with the construction of the Improvements. 

  

	9.8.	To record any notices of completion, cessation of labor and other notices that Bank deems necessary to protect any interest of Bank under the provisions of this Agreement, the Note, the Deed of Trust, any of the
Security Documents, or any other Loan Document. 

  

	9.9.	To execute, acknowledge, and deliver all Instruments and documents in the name of Borrower which may be necessary or desirable or as Bank deems proper, in Bank’s sole discretion, and to perform any and every
act with respect to the construction of the Improvements which Borrower might perform on Borrower’s own behalf. 

 This Power of Attorney
is a power coupled with an interest and cannot be revoked. Any costs or expenses incurred by Bank in connection with any acts performed by Bank under or pursuant to this Section shall be paid by Borrower. If such costs are not paid by Borrower upon
demand of Bank, interest shall accrue thereon at the Default Rate. Any such advances made or costs or expenses incurred by Bank shall be secured by the Deed of Trust and Security Documents. 

 

	10.	MISCELLANEOUS: 

  

	10.1.	Disclaimer: WHETHER OR NOT BANK ELECTS TO EMPLOY ANY OR ALL OF THE REMEDIES AVAILABLE TO BANK UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, BANK SHALL NOT BE LIABLE FOR THE CONSTRUCTION OF, OR FAILURE TO CONSTRUCT,
COMPLETE OR PROTECT, THE IMPROVEMENTS. 

  

	10.2.	Notices. All notices, demands, requests or other communications (including communications by facsimile transmission or e-mail) provided for or allowed hereunder shall be in writing and shall be effective only if
the same is delivered by personal service, mailed (postage prepaid, return receipt requested), faxed, or e-mailed to the address given with the signatures at the end of this Agreement. Any such notice shall be deemed to have been received by the
addressee, (a) if mailed, on the third day following the date of such mailing, or (b) if faxed or e-mailed, upon telephone confirmation of receipt. Any party may at any time change its address for such notices by delivery or mailing the
other parties to this Agreement a notice of such change. 

  
 -30- 

	10.3.	Waivers. Any forbearance, failure or delay by Bank in exercising any right, power or remedy shall not be deemed a waiver thereof and any single or partial exercise of any power, right or remedy shall not preclude
any further exercise thereof. No waiver of or consent to any breach of any of the covenants or conditions of this Agreement or any other Loan Document shall be construed to be a waiver of or a consent to any previous or subsequent breach of the same
or any other condition or covenant. No waiver or consent shall be effective under any Loan Document unless it is In writing and signed by an officer of Bank. 

 

	10.4.	Bank’s Expenses; Rights of Bank. 

 (a) Borrower shall promptly pay to Bank,
upon demand, with interest thereon from the date of demand at the rate applicable from time to time under the Note, reasonable attorneys’ fees (including the fees and costs of Bank’s in-house counsel and legal staff performing services in
addition to or separate from services performed by outside counsel) and all costs and other expenses paid or incurred by Bank in exercising its rights or remedies provided for in this Agreement or any other Loan Document. If at any time Borrower
fails to perform any of its obligations hereunder, Bank shall have the right, but not the obligation, to perform such obligations at the expense of Borrower. The amount of any monies so expended or obligations so incurred by Bank, together with
interest thereon at the Default Rate, shall be repaid to Bank promptly upon demand and payment thereof shall be secured by the Deed of Trust and Security Documents. 

(b) During the Construction Loan Period, Bank, and any of Bank’s representatives, shall have the right, at any time and from time
to time, upon reasonable prior notice and subject to Borrower’s reasonable security requirements, to enter upon the Property, to inspect the Improvements and all materials to be used in the construction thereof and to examine the Plans and all
detailed plans and shop drawings which are or may be kept at the construction site. 
  

	10.5.	No Third Party. This Agreement is made for the sole benefit of Borrower, Bank and Bank’s successors and assigns, and no other Person shall have any rights or remedies under or by reason of this Agreement or
any right to exercise any right or power of Bank hereunder or arising from any default by Borrower. Bank shall owe no duty whatsoever to any claimant for labor- performed or material furnished in connection with the construction of the Improvements
nor any duty whatsoever to apply any undisbursed proceeds of the Loan to the payment of any such claim or to exercise any right or power of Bank hereunder or arising from any default by Borrower. 

 

	10.6.	Time of Essence. Time is of the essence of this Agreement and every part hereof. 

  

	10.7.	Successors and Assigns. Neither this Agreement nor any right of Borrower to receive any sums, proceeds or disbursements hereunder or under the Note, may be assigned, pledged, hypothecated, anticipated or
otherwise encumbered by Borrower without the prior written consent of Bank. Subject to the foregoing restriction and the restrictions contained in the Deed of Trust, this Agreement shall inure to the benefit of Bank and Bank’s successors and
assigns and shall bind Borrower and Borrower’s successors and assigns. 

  
 -31- 

	10.8.	Participation or Syndication. Bank and any Co-Lender shall have the right, in their sole discretion, to assign all or any part of Bank’s or other Co-Lender’s rights in the Loan and under the Loan
Documents, either through direct assignment, securitization, or through participating interests (all such transactions being, collectively, a “Secondary Market Transaction”). Bank Is hereby authorized to disclose to any prospective
assignee or participant in the Loan and any rating agency involved In a Secondary Market Transaction any and all information regarding Borrower, any Loan Party, the Property or the Loan. Borrower shall cooperate with Bank in effecting any such
Secondary Market Transaction and shall cooperate to implement all requirements imposed by any rating agency involved in any Secondary Market Transaction, including, without limitation, (i) providing timely information regarding Borrower and the
Property as may be reasonably requested from time to time by Bank, (ii) assisting In the preparation of marketing materials to be used in connection with the syndication, (iii) executing such additional promissory notes and other
instruments as may be appropriate to evidence its obligations under the Loan to such syndicate Co-Lenders, and (iv) executing and delivering any documents (including, without limitation, any amendments, modifications or supplements to this
Agreement or any other Loan Document, provided that there are not material changes to the Loan Documents), updated opinion letters, and/or estoppel certificates with respect to the Loan which are reasonably requested by Bank or Co-Lenders in
connection with any such syndication and in form and substance reasonably satisfactory to Bank or such Co-Lenders, as the case may be. Borrower will be responsible for any and all costs and expenses of Bank related to the syndication, including,
without limitation, reasonable attorney’s fees and disbursements. 

  

	10.9.	CO-LENDER PROVISIONS 

 (a) Additional Definitions. 

(i) “Agent-Related Persons” means Agent, together with its Affiliates and the officers, directors, employees, agents and
attorneys-in-fact of such persons and Affiliates. 
 (ii) “Required Co-Lenders” means as of any date of determination Co-Lenders
having more than fifty percent (50%) of the Maximum Commitments or, if the Maximum Commitments have been terminated, holding in the aggregate more than fifty percent (50%) of the total outstanding amount of the Loan; provided that the
Maximum Commitment of, and the portion of the total outstanding amount of the Loan held by, any Co-Lender in default of its obligations under this Agreement shall be excluded for purposes of making a determination of the Required Co-Lenders. 

(b) Amendments: Survival. Agent and Co-Lenders shall be entitled to amend (whether pursuant to a separate intercreditor agreement or
otherwise) any of the terms, conditions or agreements set forth in this Section 10.9 or as to any other matter in the 

  
 -32- 

 
Loan Documents respecting payments to Agent or Co-Lenders as among themselves or the required number of Co-Lenders to approve or disapprove any matter or to take or refrain from taking any
action, without the consent of Borrower or any other person or the execution by Borrower or any other person. Notwithstanding the foregoing, no amendment, waiver or consent shall: 

(i) extend or increase the Maximum Commitment of any Co-Lender without the written consent of such Co-Lender in its sole discretion; 

(ii) postpone any date fixed by this Agreement, any other Loan Document for any payment or mandatory prepayment of principal, interest, fees
or other amounts due to Co- under any of the Loan Documents, without the written consent of each Co-Lender directly affected thereby; 

(iii) reduce the principal of, or the rate of interest specified herein on, any portion of the Loan, or any fees or other amounts payable
hereunder or any other Loan Document, without the written consent of each Co-Lender directly affected thereby; provided, however, that Agent may waive any obligation of Borrower to pay interest at the Default Rate and/or late charges for periods of
up to thirty (30) days, the consent of Required Co-Lenders shall be required to waive any such obligation for periods in excess of thirty (30) days, or to amend the definition of “Default Rate” or “late charges”: 

(iv) change the percentage of the combined Maximum Commitments or of the aggregate unpaid principal amount of the Loan which is required for
Co-Lenders or any of them to take any action hereunder, without the written consent of each Co-Lender; or 
 (v) release the liability of
Borrower or any existing Guarantor without the written consent of each Co-Lender; 
 and, provided, further, that no amendment, waiver or
consent shall, unless in writing and signed by Agent and each Co-Lender, affect the rights or duties of Agent under this Agreement, or any other Loan Document. 

(c) Appointment and Authorization of Agent. Each Co-Lender hereby irrevocably appoints, designates and authorizes Bank as Agent
to take such action on its behalf under the provisions of this Agreement, each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement, any other Loan Document, together
with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, Agent shall not have any duties or responsibilities to Co-Lenders except those expressly
set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Co-Lender. No implied covenants, functions, responsibilities, duties, obligations or liabilities to Co-Lenders shall be read into this Agreement or any
other Loan Document or shall otherwise exist against Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in 

  
 -33- 

 
the other Loan Documents with reference to Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable legal
requirement. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 

(d) Delegation of Duties. Agent may execute any of its duties under this Agreement, any other Loan Document by or through agents,
employees or attorneys in fact and shall be entitled to advice of counsel and other consultant experts concerning all matters pertaining to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact
that it selects with reasonable care. 
 (e) Liability of Agent. No Agent-Related Person shall (a) be liable to any
Co-Lender for any action taken or omitted to be taken by any of them under or in connection with this Agreement, any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or
(b) be responsible in any manner to any Co-Lender for any recital, statement, representation or warranty made by Borrower or any subsidiary or Affiliate of Borrower, or any officer thereof, contained herein, or in any other Loan Document or the
Environmental Agreement, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement, any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement, any other Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under
any obligation to any Co-Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of
Borrower, Guarantor or any of their Affiliates. 
 (f) Reliance by Agent. Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Co-Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon
all Co-Lenders. In the absence of written instructions from the Required Co-Lenders, Agent may take or not take any action, at its discretion. 

(g) Notice of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default, unless Agent
shall have gained actual knowledge in its capacity as a Co-Lender or shall have received written notice from a Co-Lender or from Borrower referring to this Agreement, describing such Event of Default that Agent determines will have a material
adverse effect. Agent will notify Co-Lenders promptly of its receipt of any such notice. 
 (h) Credit Decision: Disclosure of
Information by Agent. 
 (i) Each Co-Lender acknowledges that no Agent-Related Person has made any representation or warranty to it,
and that no act by Agent hereafter taken, 

  
 -34- 

 
including any consent to and acceptance of any assignment or review of the affairs of Borrower or any Guarantor, shall be deemed to constitute any representation or warranty by any Agent-Related
Person to Co-Lenders or any of them as to any matter, including whether any Agent-Related Person has disclosed material information in their possession. Each Co-Lender represents to Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower and each Guarantor, and all applicable bank or other regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Co-Lender also
represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and
creditworthiness of Borrower and Guarantor. 
 (ii) To the extent not already available to a Co-Lender, Agent shall also provide the
Co-Lender and/or make available for the Co-Lender’s inspection during reasonable business hours and at the Co-Lender’s expense, upon the Co-Lender’s written request therefor: (A) copies of the Loan Documents; (B) such
information as is then in Agent’s possession in respect of the current status of principal and interest payments and accruals in respect of the Loan; (C) copies of all current Financial Statements in respect of Borrower, or any Guarantor
or other person liable for payment or performance by Borrower of any obligations under the Loan Documents, then in Agent’s possession with respect to the Loan; and (D) other current factual information then in Agent’s possession with
respect to the Loan and bearing on the continuing creditworthiness of Borrower, or any Guarantor, or any of their respective Affiliates; provided that nothing contained in this Clause (h) shall Impose any liability upon Agent for its failure to
provide a Co-Lender any of such Loan Documents, information, or Financial Statements, unless such failure constitutes willful misconduct or gross negligence on Agent’s part; and provided, further, that Agent shall not be obligated to provide
any Co-Lender with any information in violation of applicable law or any contractual restrictions on the disclosure thereof (provided such contractual restrictions shall not apply to distributing to a Co-Lender factual and financial information
expressly required to be provided herein). 
 (i) Agent in Individual Capacity. Bank, in its individual capacity, and its Affiliates
may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with any party to the Loan
Documents and their respective Affiliates as though Bank were not Agent hereunder and without notice to or consent of Co-Lenders. 

  
 -35- 

 (j) Successor Agent. Agent may, and at the request of the Required Co-Lenders as a result
of (a) Agent’s gross negligence or willful misconduct in performing its duties under this Agreement, (b) appointment of a receiver for Agent, or (c) in the event of regulatory measures taken against Agent which limit or
materially affects its day-to-day operations, shall, resign as Agent upon 30 days’ notice to Co-Lenders. If Agent resigns under this Agreement, the Required Co-Lenders shall appoint from among Co-Lenders a successor Agent for Co-Lenders. If no
successor Agent has accepted appointment as Agent by the date which is thirty (30) days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and Co-Lenders
shall perform all of the duties of Agent hereunder. 
 (k) Releases: Acquisition and Transfers of Property. 

(i) Co-Lenders hereby irrevocably authorize Agent to transfer or release any lien or to transfer or sell, any Loan collateral (A) upon
the termination of the Maximum Commitments and payment and satisfaction in full of the Loan, and (B) after foreclosure or other acquisition of title, for a purchase price of 90% of the value indicated in the most recent Appraisal of the
collateral obtained by Agent. 
 (ii) If all or any portion of the Property is acquired by foreclosure or by deed in lieu of foreclosure,
Agent shall take title to the Property in its name or by an Affiliate of Agent, but for the benefit of all Co-Lenders in their Ratable Shares on the date of the foreclosure sale or recordation of the deed in lieu of foreclosure (the
“Acquisition Date”). Agent and all Co-Lenders hereby expressly waive and relinquish any right of partition with respect to any Property so acquired. Notwithstanding any other provision of this Agreement, Agent shall have the right but not
the obligation to take any action in connection with the Loan collateral (including those with respect to property taxes, insurance premiums, completion of construction, operation, management, improvement, maintenance, repair, sale and disposition),
or any portion thereof. 
 (l) Application of Payments. All payments and receipts shall be apportioned pro rata among Co-Lenders and
payments of any fees (other than fees designated for Agent’s separate account) shall, as applicable, be apportioned pro rata among Co-Lenders. Agent shall direct that Borrower make all payments of principal and interest (including, without
limitation, principal due on the maturity dates of the Note), prepayment premiums, if any, late charges, if any, and other amounts due under the Loan Documents or paid with respect thereto, and Agent shall remit to each Lender its pro rata share
thereof, less the respective amount of unpaid advances, interest and other costs and expenses, if any, due from each such Co-Lender to Agent. The payments collected shall be credited against the amounts due under the Loan Documents in accordance
with the provisions of the Loan Documents. Remittances by Agent to each Co-Lender shall be made, at Agent’s option, (a) by wire transfer to such Co-Lender’s account at a bank specified in a notice given to Agent by such Co-Lender,
(b) by automated clearinghouse (“ACH”) credit against an account of such Co-Lender, or (c) as otherwise mutually agreed by Agent and such Co-Lender. Agent shall use reasonable efforts to deliver all payments to the Co-Lenders 

  
 -36- 

 
within two (2) Business Days, but in no event later than the fourth (4th) Business Day, after receipt of payments due from Borrower under the Loan Documents. If any payment received by
Agent is later cancelled, nullified or reversed, each Lender shall refund to Agent, upon notice of such cancellation, nullification or reversal its pro rata share of such payment. Agent’s obligation to remit is only as to funds actually and
unconditionally received and cleared, and the funds remitted to a Co-Lender shall be net of the following, if and only to the extent owing from such Co-Lender as of the date Agent delivers the applicable payment to such Co-Lender: (i) all
amounts owed to Agent by such Co-Lender under this Agreement, and (ii) all expenses due and owing Agent. All funds received by Agent respecting the Loan may be held in Agent’s bank accounts and may be commingled with its other funds. Agent
shall retain for its own account all income, if any, earned on any accounts maintained respecting the Loan, unless such income is due to Borrower pursuant to the Loan Documents or applicable law. 

(m) Benefit. The terms and conditions of this Section 10.9 are inserted for the sole benefit of Agent and Co-Lenders; the same may
be waived in whole or in part, with or without terms or conditions, without prejudicing Agent’s or Co-Lenders’ rights to later assert them in whole or in part. Borrower shall have no obligations under this Section 10.9. 

(n) Assignment and Participation. Notwithstanding Section 10.8 of this Loan Agreement, no Co-Lender may assign any interest in the
Loan or its Maximum Commitment without the consent of Bank. 
  

	10.10.	Governing Jurisdiction. This Agreement shall be governed by and construed In accordance with the laws of the state in which the Property is located. 

 

	10.11.	Entire Agreement. This Agreement and all other Loan Documents constitute the entire understanding between the parties hereto with respect to the subject matter hereof, superseding all prior written or oral
understandings. The parties also acknowledge they have entered into the certain Confidentiality Agreement dated as of October 9, 2014 by and between Guarantor and Bank as amended by that certain First Amendment to Confidentiality Agreement
among Guarantor, Borrower and Bank, which agreement remains in full force and effect. This Agreement and the other Loan Documents may be modified, amended or terminated only In writing signed by all parties hereto or thereto.

  

	10.12.	Joint and Several Liability. If Borrower consists of more than one Person, each shall be jointly and severally liable to Bank for the performance of this Agreement and the other Loan Documents.

  

	10.13.	Intentionally Omitted. 

  

	10.14.	Credit Information and Reports. Bank Is authorized to release information concerning Borrower’s credit record and financial condition (i) to Guarantor, (ii) to or among departments of Bank and its
affiliates, and/or (iii) to other parties pursuant to an order from a governmental agency or court; and Bank is authorized to obtain such information from any third party at any time and to take such other steps as Bank deems appropriate to
verify such information provided in connection therewith. 

  
 -37- 

	10.15.	Headings. The various headings of this Agreement are included for convenience only and shall not affect the meaning or interpretation of this Agreement or any provision hereof. 

 

	10.16.	Severability. Should any one or more provisions of this Agreement be determined to be illegal or unenforceable, all other provisions nevertheless shall be effective. 

 

	10.17.	Counterparts. This Agreement and each other Loan Document (other than the Note) may be executed in two (2) or more counterparts, each of which shall be deemed an original but taken together shall be one and
the same document. 

  

	10.18.	Exhibits. All exhibits attached hereto are incorporated herein as if fully set forth within this Agreement. 

  

	10.19.	USA Patriot Act. Bank is subject to the USA Patriot Act and hereby notifies Borrower that pursuant to the requirements of that Act, Bank is required to obtain, verify and record information that identifies
Borrower, which information includes the name and address of Borrower and other information that will allow Bank to identify Borrower in accordance with the Act. 

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

 

			
	BORROWER:
	
	 PETCO REAL ESTATE HOLDINGS III LLC,

a Delaware limited liability company

		
	By:	 	 /s/ James Myers

	Name:	 	 James Myers

	Title:	 	 Chief Executive Officer

			
	
	Address for Notice to Borrower:
	
	 Petco Real Estate Holdings III LLC

9125 Rehco Road
 San Diego, CA 92121

Attn: Patricia Ward, Vice President and Controller
 Phone No.:
(858) 657-2011
 Fax No.: (858) 638-2321
 Email address:
Patricia.Ward@petco.com

	
	 Petco Real Estate Holdings III LLC

9125 Rehco Road
 San Diego, CA 92121”

Attn: Darragh Davis, Vice President, General Counsel and Secretary

Phone No.: (858) 857-2091
 Fax No.: (858) 526-2828

Email address: Darragh.Davis@petco.com

  
 -38- 

			
	BANK:
	
	MUFG UNION BANK, N.A.
		
	By:	 	 /s/ Peter Ehlinger

		 	Peter Ehlinger, Vice President
	
	Addresses for Notice to Bank:
	
	 MUFG UNION BANK, N.A.
 Attn:
Manager
 Collateral Management Department
 1980 Saturn
Street
 Monterey Park, CA 91755
 Fax No. (323)
720-7836

	
	 MUFG UNION BANK, N.A.

Attn: Manager
 Commercial Finance Division

445 South Figueroa Street, 13th Floor

Los Angeles, CA 90071
 Phone No.: (213) 236-5881

Fax No. (213) 236-6089

  
 -39- 

 Table of Contents 
  

					
	 	  	Page	 
		
	 DEFINITIONS.
	  	 	1	  
		
	 ADR.
	  	 	1	  
		
	 Advance.
	  	 	1	  
		
	 Affiliate.
	  	 	1	  
		
	 Affiliated Tenant and Affiliated Tenants.
	  	 	1	  
		
	 Agent.
	  	 	1	  
		
	 Agreement to Furnish Insurance.
	  	 	1	  
		
	 Applicable Interest Rate.
	  	 	1	  
		
	 Appraisal.
	  	 	1	  
		
	 Appraised Value.
	  	 	1	  
		
	 Architect.
	  	 	2	  
		
	 Architect’s Agreement.
	  	 	2	  
		
	 Assignment of Construction Contract.
	  	 	2	  
		
	 Assignment of Plans and Specifications.
	  	 	2	  
		
	 Bonded Work.
	  	 	2	  
		
	 Borrower’s Funds.
	  	 	2	  
		
	 Borrower’s Funds Account.
	  	 	2	  
		
	 Business Day.
	  	 	2	  
		
	 Cash and Cash Equivalents.
	  	 	2	  
		
	 Certification of Plans and Specifications.
	  	 	2	  
		
	 Change Order.
	  	 	2	  
		
	 Closing Date.
	  	 	2	  
		
	 Co-Lender.
	  	 	2	  
		
	 Completion Date.
	  	 	2	  
		
	 Construction Costs.
	  	 	3	  
		
	 Construction Contract.
	  	 	3	  
		
	 Construction Loan.
	  	 	3	  
		
	 Construction Loan Period.
	  	 	3	  
		
	 Construction Loan Maturity Date.
	  	 	3	  
		
	 Contractor.
	  	 	3	  
		
	 Conversion Date.
	  	 	3	  
		
	 Default Rate.
	  	 	3	  

  
 -40- 

					
	 Deed of Trust.
	  	 	3	  
		
	 Detailed Cost Breakdown.
	  	 	3	  
		
	 Disbursement Schedule.
	  	 	3	  
		
	 Draw Request.
	  	 	3	  
		
	 ECA.
	  	 	3	  
		
	 Event of Default.
	  	 	4	  
		
	 Financial Statements.
	  	 	4	  
		
	 Force Majeure.
	  	 	4	  
		
	 Funding Date.
	  	 	4	  
		
	 Governmental Authority.
	  	 	4	  
		
	 Governmental Requirement.
	  	 	4	  
		
	 Guarantor.
	  	 	4	  
		
	 Guaranty.
	  	 	4	  
		
	 Improvements.
	  	 	4	  
		
	 Initial Disbursement.
	  	 	4	  
		
	 Initial Interest Rate.
	  	 	4	  
		
	 Interest Reserve.
	  	 	4	  
		
	 Leases.
	  	 	4	  
		
	 Liquidity.
	  	 	5	  
		
	 Loan.
	  	 	5	  
		
	 Loan Documents.
	  	 	5	  
		
	 Loan Fee.
	  	 	5	  
		
	 Loan Party and Loan Parties.
	  	 	5	  
		
	 Loan-to-Value Ratio.
	  	 	5	  
		
	 Major Contracts.
	  	 	5	  
		
	 Major Leases.
	  	 	5	  
		
	 Maturity Date.
	  	 	5	  
		
	 Maximum Commitment.
	  	 	5	  
		
	 Note.
	  	 	5	  
		
	 Note Rate.
	  	 	5	  
		
	 Offsite Materials.
	  	 	5	  
		
	 Onsite Materials.
	  	 	6	  
		
	 Owner-Occupied.
	  	 	6	  
		
	 Person.
	  	 	6	  

  
 -41- 

					
	 Personal Property.
	  	 	6	  
		
	 Plans.
	  	 	6	  
		
	 Property.
	  	 	6	  
		
	 Project Budget.
	  	 	6	  
		
	 Ratable Share, Ratable or Ratably.
	  	 	6	  
		
	 Real Property.
	  	 	6	  
		
	 Secondary Market Transaction.
	  	 	6	  
		
	 Security Documents.
	  	 	6	  
		
	 Set Aside Letter.
	  	 	6	  
		
	 Surety.
	  	 	6	  
		
	 Swap Contract.
	  	 	6	  
		
	 Term Loan.
	  	 	7	  
		
	 Term Loan Maturity Date (if applicable).
	  	 	7	  
		
	 Term Loan Period.
	  	 	7	  
		
	 Title Insurer.
	  	 	7	  
		
	 Title Policy.
	  	 	7	  
		
	 THE LOAN.
	  	 	7	  
		
	 Purpose.
	  	 	7	  
		
	 Loan Terms and Conditions.
	  	 	7	  
		
	 Loan Fee.
	  	 	7	  
		
	 Full Payment and Reconveyance.
	  	 	7	  
		
	 Conversion to Term Loan.
	  	 	8	  
		
	 Applicable Interest Rate and Payment.
	  	 	9	  
		
	 Prepayment.
	  	 	9	  
		
	 CONDITIONS PRECEDENT TO CLOSING OF THE LOAN.
	  	 	9	  
		
	 General Conditions Precedent.
	  	 	9	  
		
	 LOAN DISBURSEMENT.
	  	 	10	  
		
	 Initial Disbursement.
	  	 	10	  
		
	 Subsequent Disbursements.
	  	 	11	  
		
	 Final Disbursement; Required Draw.
	  	 	13	  
		
	 Additional Conditions to Advances.
	  	 	14	  
		
	 Disbursement Limits,
	  	 	15	  
		
	 REPRESENTATIONS AND WARRANTIES OF BORROWER.
	  	 	15	  
		
	 Formation.
	  	 	15	  

  
 -42- 

					
	 Authority; No Conflict.
	  	 	16	  
		
	 No Defaults.
	  	 	16	  
		
	 No Material Adverse Effect.
	  	 	16	  
		
	 Leases and Personal Property.
	  	 	16	  
		
	 No Change.
	  	 	16	  
		
	 Compliance With Law.
	  	 	16	  
		
	 Other Liens.
	  	 	16	  
		
	 Financial Statements.
	  	 	16	  
		
	 No Actions.
	  	 	17	  
		
	 Ownership of Personal Property.
	  	 	17	  
		
	 Other Financing.
	  	 	17	  
		
	 Plans, Defects.
	  	 	17	  
		
	 Intentionally Omitted.
	  	 	17	  
		
	 Intentionally Omitted.
	  	 	17	  
		
	 CC&Rs, Zoning.
	  	 	17	  
		
	 Finder’s Fees.
	  	 	17	  
		
	 Draw Request.
	  	 	17	  
		
	 Other Information.
	  	 	17	  
		
	 No Default.
	  	 	17	  
		
	 BORROWER’S COVENANTS.
	  	 	18	  
		
	 Borrower’s Funds.
	  	 	18	  
		
	 Lien Priority.
	  	 	18	  
		
	 Construction Start and Completion.
	  	 	18	  
		
	 Change Orders.
	  	 	18	  
		
	 Detailed Cost Breakdown.
	  	 	19	  
		
	 Contractor Covenants.
	  	 	19	  
		
	 Construction Contract Only.
	  	 	19	  
		
	 Paid Vouchers.
	  	 	19	  
		
	 Defect Corrections.
	  	 	19	  
		
	 Application of Disbursements.
	  	 	19	  
		
	 Intentionally Omitted.
	  	 	19	  
		
	 Personal Property Installation.
	  	 	19	  
		
	 Record Keeping, Financial and Other Information.
	  	 	20	  
		
	 Bank’s Audit and Inspection Rights.
	  	 	20	  

  
 -43- 

					
	 Dividends, Distributions.
	  	 	21	  
		
	 Payment of Lawful Claims.
	  	 	21	  
		
	 Payment of Costs.
	  	 	21	  
		
	 Approval of Easements and Other Documents.
	  	 	21	  
		
	 Compliance with Laws; Preservation of Rights.
	  	 	21	  
		
	 Notices: Borrower shall promptly notify Bank in writing of:
	  	 	22	  
		
	 Indemnity.
	  	 	22	  
		
	 Performance of Acts.
	  	 	23	  
		
	 Notice of Change.
	  	 	23	  
		
	 Prohibited Activities.
	  	 	23	  
		
	 Required Occupancy.
	  	 	23	  
		
	 Leases.
	  	 	24	  
		
	 Operating Account.
	  	 	25	  
		
	 Stop Notices; Mechanic’s Liens.
	  	 	25	  
		
	 Set Aside Letters.
	  	 	25	  
		
	 Management of Property.
	  	 	26	  
		
	 Negative Covenants.
	  	 	26	  
		
	 Impound Accounts.
	  	 	27	  
		
	 Minimum Liquidity.
	  	 	27	  
		
	 EVENTS OF DEFAULT.
	  	 	27	  
		
	 REMEDIES.
	  	 	29	  
		
	 POWER OF ATTORNEY.
	  	 	29	  
		
	 MISCELLANEOUS:
	  	 	30	  
		
	 Disclaimer.
	  	 	30	  
		
	 Notices.
	  	 	30	  
		
	 Waivers.
	  	 	31	  
		
	 Bank’s Expenses; Rights of Bank.
	  	 	31	  
		
	 No Third Party.
	  	 	31	  
		
	 Time of Essence.
	  	 	31	  
		
	 Successors and Assigns.
	  	 	31	  
		
	 Participation or Syndication.
	  	 	32	  
		
	 CO-LENDER PROVISIONS
	  	 	32	  
		
	 Governing Jurisdiction.
	  	 	37	  
		
	 Entire Agreement.
	  	 	37	  

  
 -44- 

					
	 Joint and Several Liability.
	  	 	37	  
		
	 Intentionally Omitted.
	  	 	37	  
		
	 Credit Information and Reports.
	  	 	37	  
		
	 Headings.
	  	 	38	  
		
	 Severability.
	  	 	38	  
		
	 Counterparts.
	  	 	38	  
		
	 Exhibits.
	  	 	38	  

  

					
	 EXHIBIT A - LEGAL DESCRIPTION
	  	 	32	  
	 EXHIBIT B - DISBURSEMENT SCHEDULE
	  	 	1	  
	 EXHIBIT B-1 - PROJECT BUDGET
	  	 	1	  
	 EXHIBIT C - SPECIAL CONDITIONS
	  	 	3	  
	 EXHIBIT D - INTENTIONALLY OMITTED
	  	 	4	  
	 EXHIBIT E - MAJOR LEASES
	  	 	5	  

  
 -45-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]