Document:

EX-10.6

 Exhibit 10.6 
 AMENDMENT NO. 1 (this “Amendment”) dated as of March 13, 2013, to the Credit Agreement dated as of December 12, 2012 (the “Credit Agreement”), among
TEMPUR-PEDIC INTERNATIONAL INC., a Delaware corporation (the “Parent”), TEMPUR-PEDIC MANAGEMENT, LLC (the “Lead Borrower”), TEMPUR-PEDIC NORTH AMERICA, LLC and TEMPUR PRODUCTION USA, LLC, each as a Borrower, the
Guarantors identified therein, each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”) and BANK OF AMERICA, N.A., as Administrative Agent, Swingline Lender and L/C
Issuer. 
 WHEREAS, the Parent has requested an amendment to the Credit Agreement that would effect the modifications to the
Credit Agreement set forth herein. This Amendment will become effective on the Amendment Effective Date (as defined below) on the terms and subject to the conditions set forth herein; 

Accordingly, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 
 SECTION 1. Defined Terms. Capitalized terms used and
not otherwise defined herein have the meanings assigned to them in the Credit Agreement as amended hereby. 
 SECTION 2.
Amendments to the Credit Agreement. Each of the parties hereto agrees that, effective on the Amendment Effective Date, the Credit Agreement shall be amended to delete the stricken text (indicated textually in the same manner as the following
example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in
the pages of the Credit Agreement attached as Exhibit A hereto. 
 SECTION 3. Amendments to the Pledge Agreement. Each of
the parties hereto agrees that, effective on the Amendment Effective Date, Exhibit 1.01-2 to the Credit Agreement (the Pledge Agreement) shall be amended to delete the stricken text (indicated textually in the same manner as the following example:
stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages
of the Pledge Agreement attached as Exhibit B hereto. 
 SECTION 4. Representations and Warranties. To induce the other
parties hereto to enter into this Amendment, each Credit Party represents and warrants to each other party hereto, on and as of the Amendment Effective Date, that the following statements are true and correct in all material respects on and as of
the Amendment Effective Date: 
 (a) Each Credit Party is duly organized or formed, validly existing and in good standing under
the Laws of the jurisdiction of its incorporation or organization; 

 (b) Each Credit Party has all requisite power and authority and all requisite governmental
licenses, authorizations, consents and approvals to execute, deliver and perform its obligations under the Credit Agreement (as amended by this Amendment); 
 (c) The execution, delivery and performance by each Credit Party of this Amendment have been duly authorized by all necessary corporate or other organizational action, and do not and will not contravene
the terms of any of such Credit Party’s Organization Documents; and 
 (d) This Amendment has been duly executed and
delivered by each Credit Party. This Amendment constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms, except to the extent the enforceability thereof may be limited
by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law); 

SECTION 5. Amendment Effective Date. This Amendment shall become effective as of the first date (the “Amendment Effective
Date”) on which each of the following conditions shall have been satisfied: 
 (i) the Administrative
Agent shall have received a counterpart signature page of this Amendment duly executed by each of the Credit Parties and Lenders sufficient to constitute, collectively, the requisite Lenders; and 

(ii) the representations and warranties of the Credit Parties set forth in Section 4 hereof shall be true and correct
in all material respects as of the Amendment Effective Date. 
 SECTION 6. Effect of Amendment. 

(a) Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or
otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the existing Credit Agreement or any other Credit Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the existing Credit Agreement or any other provision of the existing Credit Agreement or of any other Credit Document, all of which are ratified and affirmed in all respects and shall continue in full force and
effect. Except as expressly set forth herein, nothing herein shall be deemed to be a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any
other Credit Document in similar or different circumstances. 
 (b) From and after the Amendment Effective Date, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the Credit Agreement in any other Credit Document shall be deemed a

  
 2 

 
reference to the Credit Agreement as amended hereby. This Amendment shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents.

 SECTION 7. Reaffirmation. Notwithstanding the effectiveness of this Amendment and the transactions contemplated
hereby, (i) each Credit Party acknowledges and agrees that each Credit Document to which it is a party is hereby confirmed and ratified and shall remain in full force and effect according to its respective terms (in the case of the Credit
Agreement, as amended hereby) and (ii) each Guarantor hereby confirms and ratifies its continuing unconditional obligations as Guarantor under the Credit Agreement with respect to all of the Obligations. 

SECTION 8. GOVERNING LAW. THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AMENDMENT (INCLUDING,
WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

SECTION 9. Costs and Expenses. The Borrowers agree to reimburse the Administrative Agent for its actual and reasonable costs and
expenses in connection with this Amendment to the extent required pursuant to Section 11.04 of the Credit Agreement. 

SECTION 10. Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile or other electronic imaging means of an executed counterpart of a signature page to this Amendment
shall be effective as delivery of an original executed counterpart of this Amendment. 
 SECTION 11. Headings. Section
headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect. 
 [Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed
and delivered by their respective officers thereunto duly authorized as of the date first written above. 
 [The remainder of
this page intentionally left blank] 

 
					
	 TEMPUR-PEDIC INTERNATIONAL INC.,
a Delaware corporation

	
	 TEMPUR-PEDIC MANAGEMENT, LLC,
a Delaware limited liability company

	
	 TEMPUR WORLD, LLC,
a Delaware limited liability company

	
	 TEMPUR PRODUCTION USA, LLC,
a Virginia limited liability company

		
	By:	 	 /s/ William H. Poche

		 	Name:	 	William H. Poche
		 	Title:	 	Treasurer and Assistant Secretary
	
	 TEMPUR-PEDIC MANUFACTURING, INC.,
a Delaware corporation

	
	 DAWN SLEEP TECHNOLOGIES, INC.,
a Delaware corporation

	
	 TEMPUR-PEDIC SALES, INC.,
a Delaware corporation

	
	 TEMPUR-PEDIC NORTH AMERICA, LLC,
a Delaware limited liability company

	
	 TEMPUR-PEDIC TECHNOLOGIES, INC.,
a Delaware corporation

		
	By:	 	 /s/ William H. Poche

		 	Name:	 	William H. Poche
		 	Title:	 	Treasurer and Assistant Secretary
	
	 TEMPUR-PEDIC AMERICA, LLC,
a Delaware limited liability company

		
	By:	 	 /s/ William H. Poche

		 	Name:	 	William H. Poche
		 	Title:	 	Treasurer and Assistant Secretary

 
					
	 BANK OF AMERICA, N.A.
as Administrative Agent and a Lender

		
	By:	 	 /s/ Laura Call

		 	Name:	 	Laura Call
		 	Title:	 	Assistant Vice President

 
					
	 BARCLAYS BANK PLC
as a Lender

		
	By:	 	 /s/ Regina Tarone

		 	Name:	 	Regina Tarone
		 	Title:	 	Managing Director

 
					
	 JPMORGAN CHASE BANK, N.A.
as a Lender

		
	By:	 	 /s/ Anthony Eastman

		 	Name:	 	Anthony Eastman
		 	Title:	 	Vice President

 
					
	 WELLS FARGO BANK, N.A.
as a Lender

		
	By:	 	 /s/ Brian Hulker

		 	Name:	 	Brian Hulker
		 	Title:	 	SVP

 
					
	 FIFTH THIRD BANK,
as a Lender

		
	By:	 	 /s/ Mary-Alicha Weldon

		 	Name:	 	Mary-Alicha Weldon
		 	Title:	 	Vice President

 Exhibit A 
 [Amendments to Credit Agreement attached] 

 CREDIT AGREEMENT

dated as of December 12, 2012 
 among
 TEMPUR-PEDIC INTERNATIONAL INC., 

as the Parent and a Borrower 
 and 
 CERTAIN SUBSIDIARIES OF THE PARENT, 

as Borrowers and as Guarantors, 
 THE LENDERS PARTY HERETO, 
 BANK OF AMERICA, N.A., 

as Administrative Agent,  
 BARCLAYS BANK PLC, 
 JPMORGAN CHASE BANK, N.A. 

and 
 WELLS
FARGO BANK, N.A., 
 as Syndication Agents 
 FIFTH THIRD BANK, 
 as Documentation Agent 

 
  
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

BANK OF AMERICA, N.A., 

BARCLAYS BANK PLC, 
 J.P MORGAN SECURITIES LLC, 
 WELLS FARGO SECURITIES, LLC, 

and 
 FIFTH
THIRD BANK, 

					
	ARTICLE 4	  
	GUARANTY	  
		
	 Section 4.01. The Guaranty.
	  	 	93	  
	 Section 4.02. Obligations Unconditional.
	  	 	93	  
	 Section 4.03. Reinstatement.
	  	 	94	  
	 Section 4.04. Certain Waivers.
	  	 	94	  
	 Section 4.05. Remedies.
	  	 	95	  
	 Section 4.06. Rights of Contribution.
	  	 	95	  
	 Section 4.07. Guaranty of Payment; Continuing Guarantee.
	  	 	95	  
	
Section 
4.08 Keepwell.
	  	 	95	  
	
	ARTICLE 5	  
	CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	  
		
	 Section 5.01. Conditions to the Closing Date.
	  	 	95	  
	 Section 5.02. Conditions to all Credit Extensions.
	  	 	99	  
	 Section 5.03. Conditions to the Effective Date.
	  	 	99	  
	
	ARTICLE 6	  
	REPRESENTATIONS AND WARRANTIES	  
		
	 Section 6.01. Existence, Qualification and Power.
	  	 	100	  
	 Section 6.02. Authorization; No Contravention.
	  	 	101	  
	 Section 6.03. Governmental Authorization; Other Consents.
	  	 	101	  
	 Section 6.04. Binding Effect.
	  	 	101	  
	 Section 6.05. Financial Statements.
	  	 	101	  
	 Section 6.06. No Material Adverse Effect.
	  	 	102	  
	 Section 6.07. Litigation.
	  	 	102	  
	 Section 6.08. No Default.
	  	 	102	  
	 Section 6.09. Ownership of Property; Liens.
	  	 	102	  
	 Section 6.10. Environmental Matters.
	  	 	102	  
	 Section 6.11. Insurance.
	  	 	102	  
	 Section 6.12. Taxes.
	  	 	103	  
	 Section 6.13. ERISA Compliance.
	  	 	103	  
	 Section 6.14. Subsidiaries.
	  	 	104	  
	 Section 6.15. Margin Regulations; Investment Company Act.
	  	 	104	  
	 Section 6.16. Disclosure.
	  	 	104	  
	 Section 6.17. Compliance with Laws.
	  	 	104	  
	 Section 6.18. Security Agreement.
	  	 	104	  
	 Section 6.19. Pledge Agreement.
	  	 	105	  
	 Section 6.20. Mortgages.
	  	 	105	  
	 Section 6.21. Real Property.
	  	 	105	  
	 Section 6.22. Solvency.
	  	 	105	  
	 Section 6.23. Patriot Act; Sanctioned Persons.
	  	 	105	  

  
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 “Applicant Borrower” has the meaning provided in Section 2.14(b).

 “Appropriate Lender” means, at any time, (a) with respect to any of the Term A Facility, the Term B
Facility or the Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility or holds a Term A Loan, a Term B Loan or a Revolving Credit Loan, respectively, at such time, (b) with respect to the L/C Sublimit,
(i) the L/C Issuer and (ii) if any Letters of Credit have been issued pursuant to Section 2.03(a), the Revolving Credit Lenders and (c) with respect to the Swingline Sublimit, (i) the Swingline Lender and (ii) if any
Swingline Loans are outstanding pursuant to Section 2.04(a), the Revolving Credit Lenders. 
 “Approved
Bank” means (a) any Lender, (b) any domestic commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (c) any bank whose short-term commercial paper rating from S&P is at least A-1 or
the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof. 
 “Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Arrangers” means MLPF&SBank of
America, N.A., Barclays Bank PLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and Fifth Third Bank, in their respective capacities as joint lead arrangers and joint book managers. 

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds
managed by the same investment advisor. 
 “Assignment and Assumption” means an assignment and assumption
entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.06 and accepted by the Administrative Agent), in substantially the form of Exhibit 11.06(b) or any other form approved by
the Administrative Agent 
 “Attributable Principal Amount” means (a) in the case of capital leases, the
amount of capital lease obligations determined in accordance with GAAP, (b) in the case of Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a capital lease determined in
accordance with GAAP, (c) in the case of Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in
its reasonable judgment and (d) in the case of Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during
the term of such lease). 
 “Auction” has the meaning provided in Section 11.06(i). 

“Auction Manager” means the Administrative Agent. 

“Auction Procedures” means the Dutch Auction Procedures set forth on Exhibit 11.06(i). 

“Available ECF Amount” means, on any date, an amount determined on a cumulative basis equal to Excess Cash Flow for each
year, commencing with the fiscal year ending 

  
 6 

 “Closing Date Guarantors” means, collectively, the Company and each other
Subsidiary of the Parent listed on Annex B. 
 “Collateral” means the collateral identified in, and at any time
covered by, the Collateral Documents. 
 “Collateral Agent” means Bank of America, in its capacity as
collateral agent under any of the Credit Documents, or any successor collateral agent. 
 “Collateral
Documents” means the Security Agreement, the Pledge Agreement, the Intellectual Property Security Agreements, the Intellectual Property Security Agreement Supplements, the Mortgages and any other documents executed and delivered by the
Credit Parties in order to grant to the Collateral Agent a security interest in the Collateral as security for the Obligations. 

“Commitment” means a Term A Commitment, a Term B Commitment or a Revolving Credit Commitment, as the context
may require. 
 “Commitment Fee” has the meaning set forth in Section 2.09(a)(i). 

“Commitment Letter” means the Amended and Restated Commitment Letter addressed to the Parent dated as of
October 23, 2012 from Bank of America, JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Wells Fargo Investment Holdings, LLC and the Arrangers. 
 “Commitment Period” means, in respect of the Revolving Credit Facility, the period from and including the Closing Date to the earlier of (a)(i) in the case of Revolving Credit Loans and
Swingline Loans, the Revolving Termination Date or (ii) in the case of the Letters of Credit, the L/C Expiration Date, or (b) the date on which the Revolving Credit Commitments shall have been terminated as provided herein. 

“Commitment Termination Date” means the earliest to occur of (a) September 26, 2013, unless the Closing Date occurs
on or prior thereto, (b) the closing of the Sealy Acquisition without the use of the Facilities and the Bridge Facility (if any) and/or the Senior Notes (if any), (c) the entry into an Alternative Financing (as defined in the Acquisition
Agreement), (d) the entry into an Alternative Acquisition Agreement (as defined in the Acquisition Agreement), (e) the termination of the Acquisition Agreement, (f) the public announcement of the abandonment of the Sealy Acquisition
by the Parent or any of its Affiliates in a public statement or filing and (g) with respect to each Facility, termination of the Commitments under such Facility pursuant to Section 2.07. 

“Commodity Exchange Act” means the Commodity Exchange Act (7
U.S.C. § 1 et seq.), as amended from time to time, and any successor statute. 
 “Company” has the
meaning provided in the recitals hereto. 
 “Company Material Adverse Effect” means any event, change,
occurrence, development or effect that would have or would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Company and its Subsidiaries taken as a whole, other than any
event, change, occurrence, development or 

  
 10 

 (a) was a member of such Board of Directors on the date of this Credit Agreement; or

 (b) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board at the time of such nomination or election. 
 “Contractual
Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. Without limiting the generality of the
foregoing, a Person shall be deemed to be Controlled by another Person if such other Person possesses, directly or indirectly, power to vote 10% (or, in the case of Comfort Revolution LLC, a majority) or more of the securities having ordinary voting
power for the election of directors, managing general partners or the equivalent. 
 “Control Agreement” means
a deposit account control agreement in favor of the Collateral Agent, on terms reasonably satisfactory to the Collateral Agent. 

“Convertible Notes” means the Company’s Senior Secured Third Lien Convertible Notes due 2016. 

“Convertible Notes Agent” means The Bank of New York Mellon
Trust Company, N.A., in its capacity as collateral agent for the Convertible Notes. 
 “Credit Agreement”
has the meaning provided in the recitals hereto. 
 “Credit Agreement Refinancing Facilities” means
(a) with respect to any Class of Revolving Credit Commitments or Revolving Credit Loans, Replacement Revolving Commitments or Replacement Revolving Loans and (b) with respect to any Class of Term Loans, Refinancing Term Loans. 

“Credit Agreement Refinancing Facility Lenders” means a Lender with a Replacement Revolving Credit Commitment or
outstanding Refinancing Term Loans. 
 “Credit Documents” means this Credit Agreement, the Notes, the Fee
Letters, the Issuer Documents, the Collateral Documents, the Guaranties, each Designated Borrower Request and Assumption Agreement, each Designated Borrower Notice, each Request for Credit Extension, any agreement creating or perfecting rights in
Cash Collateral pursuant to the provisions of Section 2.16 of this Credit Agreement and the Joinder Agreements. 

“Credit Extension” means each of the following: (a) a Borrowing, (b) the conversion or continuation of a
Borrowing and (c) an L/C Credit Extension. 

  
 14 

 Working Capital Adjustment for such fiscal year (if positive) and (iii) to the extent received in cash
and deducted from the calculation of Consolidated EBITDA for such fiscal year, all gains or other amounts identified in clause (c)(ii) of the definition thereof for such fiscal year over (b) the sum, without duplication, of (i) the amount
of any taxes payable in cash by the Parent and its Subsidiaries with respect to such fiscal year, (ii) Consolidated Interest Expense for such fiscal year paid in cash, (iii) Consolidated Capital Expenditures made in cash during such fiscal
year, except to the extent financed with the proceeds of Indebtedness (other than Revolving Credit Loans to the extent such Revolving Credit Loans are repaid during such fiscal year), equity issuances, casualty proceeds, condemnation proceeds or
other proceeds that would not be included in Consolidated EBITDA, (iv) permanent repayments of Indebtedness (other than (x) prepayments of Loans under Section 2.06(a) or Section 2.06(b) and (y) prepayment of any Junior
Financing) made in cash by the Parent or any of its Subsidiaries during such fiscal year, but only to the extent that the Indebtedness so prepaid by its terms cannot be reborrowed or redrawn and such prepayments do not occur in connection with a
refinancing of all or any portion of such Indebtedness, (v) Consolidated Working Capital Adjustment for such fiscal year (if negative) and (vi) the sum of, in each case, to the extent paid in cash and added back in the calculation of
Consolidated EBITDA for such fiscal year, all fees, costs, expenses, charges, proceeds or other amounts identified in clauses (b)(iv), (v), (vi) and (viii) of the definition thereof. 

“Exchange Act” means the Securities Exchange Act of 1934. 

“Exchange Notes” has the meaning ascribed to “Exchange Notes” in the Bridge Credit Agreement (if any).

 “Excluded Domestic Subsidiary” means any Domestic Subsidiary (x) owned by a Foreign Subsidiary or
(y) that has no material assets other than the equity interests or Capital Stock of one or more Foreign Subsidiaries. 

“Excluded Property” means the Excluded Property as such term is defined in the Security Agreement. 

“Excluded Real Property” means all leasehold interests and interest in owned real property other than the Specified Real
Property. 
 “Excluded Swap Obligation” means, with
respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the guaranty of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guaranty thereof) (after
giving effect to any keepwell, support or other agreement provided by the Parent or any of its Subsidiaries with respect to the obligations of such Guarantor) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of
the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity
Exchange Act and the regulations thereunder at the time the guaranty of such Guarantor or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more
than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal. 

  
 20 

 “Net Cash Proceeds” means (a) with respect to any Disposition or
Involuntary Disposition, the aggregate proceeds paid in cash or Cash Equivalents received by the Parent or any Subsidiary in connection with any Disposition or Involuntary Disposition, net of (i) direct costs (including legal, accounting and
investment banking fees, sales commissions and underwriting discounts), (ii) estimated taxes paid or payable as a result thereof, and (iii) amounts required to be applied to the repayment of Indebtedness (other than the Indebtedness
hereunder, Permitted Incremental Equivalent Debt and Permitted External Refinancing Debt) secured by a Lien on the asset or assets the subject of such Disposition or Involuntary Disposition (or, in the case of Net Cash Proceeds of any Foreign
Disposition, amounts applied during such period to the permanent repayment of any Indebtedness of the Foreign Subsidiaries to the extent required by the terms of such Indebtedness); and (b) with respect to any incurrence or issuance of
Indebtedness, the aggregate principal amount actually received in cash by the Parent or any Subsidiary in connection therewith, net of (x) direct costs (including legal, accounting and investment banking fees, sales commissions and underwriting
discounts) and (y) the principal amount of the Bridge Facility (if any) prepaid with the proceeds thereof. For purposes hereof, “Net Cash Proceeds” includes any cash or Cash Equivalents received upon the disposition of any non-cash
consideration received by the Parent or any Subsidiary in any Disposition or Involuntary Disposition. 

“NFIP” has the meaning provided in the definition of Real Estate Collateral Requirements. 

“Non-Consenting Lender” has the meaning provided in Section 11.13. 

“Non-Guarantor Domestic Subsidiary” has the meaning provided in Section 7.12(a). 

“Not Otherwise Applied” means, with reference to any proceeds of any transaction or event or of Excess Cash Flow or the
Available ECF Amount that is proposed to be applied to a particular use or transaction, that such amount (a) was not required to prepay Term Loans pursuant to Section 2.06(b)(ii)(C) (other than as a result of clause (iii) thereof or
Section 2.06(b)(ii)(F)) and (b) has not previously been (and is not simultaneously being) applied to anything other than such particular use or transaction (including, without limitation, Investments permitted under Section 8.02(m),
Restricted Payments permitted under Section 8.06(d) and prepayments of Junior Financing under Section 8.12(a)). 

“Notes” means the Term A Notes, the Term B Notes, the Revolving Credit Notes and the Swingline Notes. 

“Obligations” means, without duplication, (a) all advances to, and debts, liabilities, obligations, covenants and
duties of, any Credit Party arising under any Credit Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing
or hereafter arising and including interest and fees that accrue after the commencement by or against any Credit Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such
interest and fees are allowed claims in such proceeding (the “Loan Obligations”), (b) all obligations under any Swap Contract between the Parent or any Domestic Subsidiary and any Lender or Affiliate of a Lender to the extent
permitted hereunder, including, without limitation, the Swap Obligations but excluding the Excluded Swap Obligations (the “Swap Contract Obligations”) and (c) all
obligations under any Treasury Management Agreement between the Parent or any Domestic 

  
 31 

 
are not subject to any Lien (other than Liens arising by operation of law or permitted by Section 8.01(a), 8.01(b), 8.01(p), 8.01(t), 8.01(u) and 8.01(v)). 

“Qualified ECP Guarantor” means, in respect of any Swap
Obligation, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant guaranty or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an
“eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell
under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 
 “Quarterly Financial Statements” has
the meaning provided in the definition of “Historical Financial Statements.” 
 “Real Estate Collateral
Requirements” means the requirements that the Parent shall, and shall cause each other Credit Party to, deliver to the Administrative Agent: 
 (a) a Mortgage with respect to each property listed on Schedule 6.21 and identified as a “Mortgaged Property” together with evidence such Mortgage has been duly executed, acknowledged and
delivered by a duly authorized officer of the applicable Credit Party thereto on or before such date and is in form suitable for filing and recording in all filing or recording offices that the Administrative Agent may deem necessary in order to
create a valid and subsisting perfected Lien, excepting only Permitted Liens, on the property described therein in favor of the Administrative Agent and that all filing and recording taxes and fees have been paid or otherwise provided for in a
manner reasonably satisfactory to the Administrative Agent; 
 (b) fully paid American Land Title Association Lender’s
title insurance policies (the “Mortgage Policies”), without extended coverage (unless available at commercially reasonable rates in a situation where no survey is available, provided that neither the Parent nor any other Credit
Party shall have any obligation to obtain a survey) and otherwise in form and substance and in amounts reasonably acceptable to the Administrative Agent, with endorsements to be agreed upon by the Administrative Agent and the Parent, and coinsurance
or direct access reinsurance (only to the extent required by the Title Agent), issued, coinsured or reinsured by First American Title Insurance Company, Chicago Title Insurance Company or another title insurer reasonably acceptable to the
Administrative Agent (the “Title Agent”), insuring the Mortgages for the Mortgaged Property to be valid first and subsisting perfected Liens on the property described therein, free and clear of all Liens, excepting only Permitted
Liens, and (to the extent a zoning endorsement is agreed upon by the Administrative Agent and the Parent ), with respect to any property located in a state in which a zoning endorsement is not available (or for which a zoning endorsement is not
available at a commercially reasonable rate or without a current survey), then in lieu thereof, if requested by the Administrative Agent, a zoning compliance letter from the applicable municipality, if available, or a zoning report from Planning and
Zoning Resource Corporation (or another Person reasonably acceptable to the Administrative Agent), in each case reasonably satisfactory to the Administration Agent; 
 (c) no later than three Business Days prior to the date on which a Mortgage for the applicable Mortgaged Property is executed and delivered pursuant to this Agreement, in order to comply with the Flood
Laws, the Administrative Agent shall have received the following documents (collectively, the “Flood Documents”): (i) a completed standard “life of loan” 

  
 37 

 
terminated, Lenders holding more than 50% of the aggregate principal amount of Loan Obligations (including, in each case, the aggregate principal amount of each Revolving Credit Lender’s
risk participation and funded participation in L/C Obligations and Swingline Loans); provided that the Commitments of, and the portion of the Loan Obligations held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders. 
 “Required Revolving Credit Lenders” means, as of any date of
determination, Revolving Credit Lenders having more than 50% of the Aggregate Revolving Credit Commitments or, if the Revolving Credit Commitments shall have expired or been terminated, Revolving Credit Lenders holding more than 50% of the aggregate
principal amount of Revolving Credit Obligations (including, in each case, the aggregate principal amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swingline Loans); provided
that the Revolving Credit Commitments of, and the portion of Revolving Credit Obligations held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Credit Lenders. 

“Required Term A Lenders” means, as of any date of determination, Term A Lenders holding more than 50% of the Term A
Facility on such date; provided that the portion of the Term A Facility held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Term A Lenders. 

“Required Term B Lenders” means, as of any date of determination, Term B Lenders holding more than 50% of the Term B
Facility on such date; provided that the portion of the Term B Facility held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Term B Lenders. 

“Resignation Effective Date” shall have the meaning provided in Section 10.06(a). 

“Responsible Officer” means an officer functioning as the chief executive
officer, chief operating officer, president, vice president, chief financial officer, treasurer, assistant treasurer, controller or secretary of a Credit Party. Any document delivered
hereunder that is signed by a Responsible Officer of a Credit Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Credit Party and such Responsible Officer
shall be conclusively presumed to have acted on behalf of such Credit Party. All references to a “Responsible Officer” hereunder shall refer to a Responsible Officer of the Parent unless the context otherwise requires. 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) by the
Parent in respect of its Capital Stock, or any payment (whether in cash, securities or other property) including any sinking fund payment or similar deposit, for or on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Capital Stock of the Parent or its Subsidiaries or any option, warrant or other right to acquire any such Capital Stock of the Parent or its Subsidiaries. 
 “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of Eurocurrency Rate Loans, having the same Interest
Period made by each of the Revolving Credit Lenders pursuant to Section 2.01(c). 

  
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 Indebtedness to obtain any such Lien). The amount of any Support Obligations shall be deemed to be an amount
equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Support Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guaranteeing Person in good faith. 
 “Swap Contract” means (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or
forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, and (b) any and all transactions of any kind, and the related confirmations, that are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations
or liabilities under any Master Agreement. 
 “Swap
Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination values determined in accordance therewith, such termination
values, and (b) for any date prior to the date referenced in clause (a), the amounts determined as the mark-to-market values for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided
by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 
 “Swingline
Borrowing” means a borrowing of a Swingline Loan pursuant to Section 2.01(e). 
 “Swingline
Lender” means Bank of America, in its capacity as the Swingline Lender, together with any successor in such capacity. 

“Swingline Loan” has the meaning provided in Section 2.01(e). 

“Swingline Note” means the promissory note made by the Borrowers in favor of the Swingline Lender, evidencing Swingline
Loans made by the Swingline Lender, substantially in the form of Exhibit 2.13-2. 
 “Swingline Sublimit” has
the meaning provided in Section 2.01(e) 

  
 44 

 
under the other Credit Documents or the other documents and agreements relating to the Obligations or from foreclosing on any security or collateral interests relating hereto or thereto, or from
exercising any other rights or remedies available in respect thereof, if the Guarantors shall not timely perform their obligations, and the exercise of any such rights and completion of any such foreclosure proceedings shall not constitute a
discharge of the Guarantors’ obligations hereunder unless as a result thereof, the Obligations shall have been paid in full and the commitments relating thereto shall have expired or terminated, it being the purpose and intent that the
Guarantors’ obligations hereunder be absolute, irrevocable, independent and unconditional under all circumstances. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the
exercise of rights of subrogation pursuant to Section 4.02(a) and through the exercise of rights of contribution pursuant to Section 4.06. 
 Section 4.05. Remedies. The Guarantors agree that, to the fullest extent permitted by Law, as between the Guarantors, on the one hand, and holders of the Obligations, on the other hand, the
Obligations may be declared to be forthwith due and payable as provided in Section 9.02 (and shall be deemed to have become automatically due and payable in the circumstances specified in Section 9.02) for purposes of Section 4.01
notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the
Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 4.01. The Guarantors
acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the holders of the Obligations may exercise their remedies thereunder in accordance with the terms thereof.

 Section 4.06. Rights of Contribution. The Guarantors hereby agree as among themselves that, in connection with
payments made hereunder, each Guarantor shall have a right of contribution from each other Guarantor in accordance with applicable Law. Such contribution rights shall be subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been irrevocably paid in full and the commitments relating thereto shall have expired or been terminated, and none of the Guarantors shall exercise any such contribution rights until the Obligations have been irrevocably paid
in full and the commitments relating thereto shall have expired or been terminated. 
 Section 4.07. Guaranty of
Payment; Continuing Guarantee. The guarantee given by the Guarantors in this Article 4 is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising. 

Section 4.08. Keepwell. Each Qualified ECP Guarantor hereby
jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under the guaranty given hereby in respect
of the Swap Obligations; provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 4.08 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this
Section 4.08, or otherwise under the guaranty given hereby, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount. The obligations of each Qualified ECP Guarantor under this
Section 4.08 shall remain in full force and effect until the termination of the Commitments and the repayment, satisfaction or

  
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discharge of all other Obligations (other than contingent indemnification obligations). Each Qualified ECP Guarantor intends that this
Section 4.08 constitute, and this Section 4.08 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act. 
 ARTICLE 5
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 
 Section 5.01. Conditions to the Closing Date. The Closing Date and the obligation of the L/C Issuer and each Lender to make the initial Credit Extensions shall, in each case, be subject to
satisfaction (or waiver in accordance with Section 11.01) of the following conditions: 
 (a) Credit Documents.
Receipt by the Administrative Agent of executed counterparts of the following documents, in each case, executed by the parties thereto: 
 1. the Security Agreement, 
 2. the Pledge Agreement, 

3. the Intellectual Property Security Agreements for filing in the United States Patent and Trademark Office and the
United States Copyright Office, 
 4. Joinder Agreements executed by each of the Closing Date Guarantors,

 5. L/C Applications with respect to (x) the
Existingany Letters of Credit and (y)if any other Letters of
Credit) to be issued on the Closing Date, and 
 6. Notes, to the extent requested by a Lender. 
 (b) Opinions of Counsel.
Receipt by the Administrative Agent, on behalf of itself and the Lenders, of customary opinions of legal counsel to the Credit Parties (which shall cover authority, legality, validity, binding effect and enforceability of the Credit Documents
executed on the Closing Date, non-contravention of Organization Documents, specified material agreements and applicable Law and creation and perfection of the Liens granted thereunder on the Collateral on the Closing Date that will be perfected on
the Closing Date). 
 (c) Organization Documents, Resolutions, Etc. Receipt by the Administrative Agent of the following:

 (i) (A) with respect to the Company and its Subsidiaries that are Credit Parties, copies of the Organization
Documents of each such Credit Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a
secretary or assistant secretary of such Credit Party to be true and correct as of the Closing Date and (B) with respect to the Parent and its Subsidiaries (other than the Company and its Subsidiaries) that are Credit Parties, a certificate of
a Responsible Officer that there has been no material change to the documents provided 

  
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in accordance with Section 5.03(b)(i) below (and in the case of any change thereto, copies thereof certified as of a recent date); 

(ii) (A) with respect to the Company and its Subsidiaries that are Credit Parties, such certificates of resolutions or
other action, incumbency certificates and/or other certificates of Responsible Officers of each such Credit Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Credit Agreement and the other Credit Documents to which such Credit Party is a party and (B) with respect to the Parent and its Subsidiaries (other than the Company and its
Subsidiaries) that are Credit Parties, a certificate of a Responsible Officer that there has been no change to the documents provided in accordance with Section 5.03(b)(ii) below; and 

(iii) good standing certificates for each Credit Party as of recent date in its state of organization or formation.

 (d) Personal Property Collateral.
ReceiptSubject to Section 7.18(d), receipt by the Administrative Agent of the following: 

(i) (A) a certificate of a Responsible Officer that there has been no material change to the information
set forth in the Perfection Certificate delivered in accordance with Section 5.03(f) below (and in the case of any change thereto, an updated Perfection Certificate); 

(ii) all certificates evidencing any certificated Capital Stock or equity interests not then
(A) in the possession of the Administrative Agent or the Collateral Agent or (B) with respect to certificates of the
Company and its Subsidiaries, in the possession of the Convertible Notes Agent and pledged to secure the obligations under the Convertible Notes, and pledged to secure the Obligations, together with undated stock powers duly executed in blank
attached thereto. 
 (e) Closing Certificate. Receipt by the Administrative Agent of a certificate signed by a
Responsible Officer of the Parent as of the Closing Date certifying that the conditions specified in subsections (g), (i), (m) and (n) of this Section 5.01 and Section 5.02(a) have been satisfied as of the Closing Date.

 (f) Fees. Payment of all fees and expenses required to be paid on or before the Closing Date, including the reasonable
and documented fees and expenses of counsel for the Administrative Agent and the Arrangers that, in the case of such expenses, have been invoiced at least three Business Days prior to the Closing Date. 

(g) Consummation of Transactions Contemplated by Related Agreements. The Sealy Acquisition shall have been or shall substantially
concurrently with such initial Credit Extension on the Closing Date be, consummated in accordance with the terms of the Acquisition Agreement. 
 (h) Related Agreements. Receipt by the Administrative Agent of certified copies of each of the Related Agreements, executed by the parties thereto. 

  
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 or other appropriate notice), in each case prior and superior in right to any other Lien (other than
Permitted Liens). 
 Section 6.19. Pledge Agreement. The Pledge Agreement is effective to create in favor of the
Collateral Agent, for the ratable benefit of the holders of the secured obligations identified therein, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent that the enforceability thereof may
be limited by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law). The Pledge Agreement shall create a fully perfected first
priority Lien on, and security interest in, all right, title and interest of the pledgors thereunder in the Collateral identified therein, in each case prior and superior in right to any other Lien (other than Liens arising by operation of law and
Liens permitted by Section 8.01(u)) (i) with respect to any such Collateral that is a “security” (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent
or, to the extent permitted by the Pledge Agreement, the Convertible Notes Agent, with duly executed stock powers with respect thereto, (ii) with respect to any such Collateral
that is a “security” (as such term is defined in the UCC) but is not evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the
pledgor, and (iii) with respect to any such Collateral that is not a “security” (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of
organization of the pledgor. 
 Section 6.20. Mortgages. Each of the Mortgages is effective to create in favor of
the Collateral Agent, for the ratable benefit of the holders of the secured obligations identified therein, a legal, valid and enforceable security interest in the Mortgaged Properties identified therein in conformity with applicable Law, except to
the extent that the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law) and, when the
Mortgages in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a fully perfected first priority Lien on, and security interest in, all
right, title and interest of the grantors thereunder in such Mortgaged Properties, in each case prior and superior in right to any other Lien (other than Permitted Liens). 
 Section 6.21. Real Property. As of the Closing Date, set forth on Schedule 6.21, with respect to the Credit Parties, is a true, correct and complete list of (a) all real property
(including street address) owned by such Person, (b) all real property (including street address) leased by such Person, and (c) identifying each Mortgaged Property of such Person. 

Section 6.22. Solvency. On the Closing Date, the Parent and its Subsidiaries are, on a consolidated basis, and, after
giving pro forma effect to the Transaction, will be Solvent. 
 Section 6.23. Patriot Act; Sanctioned Persons.

 (a) To the extent applicable, each Credit Party is in compliance, in all material respects, with (i) the United States
Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, (ii) the Act and (iii) the United States Foreign Corrupt Practices Act of 1977, 

  
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 (l) Investments by the Parent or any Subsidiary made in respect of the Danish Tax
Assessment; 
 (m) Investments not contemplated in the foregoing clauses hereof in an aggregate outstanding amount not to exceed
at any time (i) $50,000,000 plus (ii) so long as no Default or Event of Default shall exist immediately before or immediately after giving effect thereto on a Pro Forma Basis, the Available ECF Amount; and 

(n) Investments to effect the Reorganization. 
 Section 8.03. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except: 
 (a) Indebtedness under the Credit Documents; 
 (b) Indebtedness outstanding on the
Closing Date or entered into in connection with the Reorganization and listed on Schedule 8.03 and any Permitted Refinancing thereof; 

(c) Permitted Incremental Equivalent Debt and Permitted External Refinancing Debt and any Permitted Refinancing thereof; provided
that it shall be a condition precedent to the effectiveness of any Permitted Incremental Equivalent Debt that (i) after giving effect thereto, the Aggregate Incremental Amount does not exceed the Incremental Cap, (ii) no Default or Event
of Default shall have occurred and be continuing immediately prior to or immediately after giving effect to such Permitted Incremental Equivalent Debt, (iii) the Parent is in compliance with the Financial Covenants, determined as of the fiscal
quarter of the Parent most recently ended for which financial statements have been delivered pursuant to Section 7.01 and on an Incremental Pro Forma Basis and (iv) the representations and warranties set forth in Article 6 and in each
other Credit Document shall be true and correct in all material respects on and as of the date of such Permitted Incremental Equivalent Debt, except to the extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct in all material respects as of such earlier date. 
 (d) obligations (contingent or
otherwise) of the Parent or any Subsidiary existing or arising under any Swap Contract, provided that such obligations are entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated
with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view”;

 (e) unsecured intercompany Indebtedness among the Parent and its Subsidiaries to the extent permitted by Section 8.02;
provided that any such Indebtedness owed by a Credit Party to a Subsidiary that is not a Credit Party shall be subordinated to the Obligations in a manner reasonably satisfactory to the Administrative Agent; 

(f) (i) Indebtedness (including Indebtedness under Capital Leases, Synthetic Lease obligations and purchase money obligations but
excluding Indebtedness arising under Capital Leases entered into in connection with a Sale and Leaseback Transaction permitted under Section 8.05(f)) incurred to provide all or a portion of the purchase price (or cost of construction or
acquisition), in each case, for capital assets and refinancings, refundings, renewals or extensions thereof, provided that the aggregate principal amount of all such 

  
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deliver such documents as the Parent shall reasonably request to evidence such termination; provided that if an Event of Default shall have occurred and is continuing, no such termination
will be effective unless arrangements satisfactory to the holders of the Swap ContactContract Obligations and Treasury Management Obligations shall have been made, and
will not affect provisions which expressly survive termination. 
 Section 11.18. No Advisory or Fiduciary
Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), the Parent and each other Credit Party
acknowledge and agree, and acknowledge their respective Affiliates’ understanding, that: (a) (i) the arranging and other services regarding this Credit Agreement provided by the Administrative Agent and the Arrangers are
arm’s-length commercial transactions between the Parent, each other Credit Party and their respective Affiliates, on the one hand, and the Administrative Agent and the Arrangers, on the other hand, (ii) each of the Parent and the other
Credit Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) each of the Parent and each other Credit Party is capable of evaluating, and understands and accepts, the
terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents; (b) (i) the Administrative Agent, each Arranger and each Lender each is and has been acting solely as a principal and, except as
expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, any other Credit Party or any of their respective Affiliates, or any other Person and (ii) the
Administrative Agent, the Arrangers and the Lenders shall not have any obligation to the Parent, any other Credit Party or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set
forth herein and in the other Credit Documents; and (c) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the
Parent, the other Credit Parties and their respective Affiliates, and the Administrative Agent, the Arrangers and the Lenders shall not have any obligation to disclose any of such interests to the Parent, any other Credit Party or any of their
respective Affiliates. To the fullest extent permitted by law, each of the Parent and the other Credit Parties hereby waives and releases any claims that it may have against the Administrative Agent, the Arrangers and the Lenders with respect to any
breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 Exhibit B 
 [Amendments to Pledge Agreement attached] 

 PLEDGE 
 AGREEMENT 
 THIS PLEDGE AGREEMENT (this “Pledge
Agreement”) dated as of [                    ] is by and among Tempur-Pedic International Inc., a Delaware corporation (the
“Parent”) and other Credit Parties identified as “Pledgors” on the signature pages hereto and such other Persons as may become Pledgors hereunder after the date hereof (individually a “Pledgor”, and
collectively the “Pledgors”) and BANK OF AMERICA, N.A., as Collateral Agent (the “Collateral Agent”). 
 W I T N E S S E T H 
 WHEREAS, the Lenders have agreed to establish credit
facilities pursuant to the terms of the Credit Agreement dated as of December 12, 2012 (as amended, restated, amended and restated, modified and supplemented from time to time, the “Credit Agreement”) by and among the Parent,
Tempur-Pedic Management, LLC, a Delaware limited liability company, Tempur-Pedic North America, LLC, a Delaware limited liability company and Tempur Production USA LLC, a Virginia limited liability company, each as a Borrower, the other parties
identified as Guarantors therein, the financial institutions who are or who become party thereto as lenders and Bank of America, N.A., as Administrative Agent, Collateral Agent and a Lender; and 

WHEREAS, this Pledge Agreement is required under the terms of the Credit Agreement. 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions and Interpretive Provisions. 

(a) Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings provided in the
Credit Agreement. In addition, the following terms, which are defined in the UCC as in effect in the State of New York on the date hereof, are used herein as so defined: Financial Asset, Proceeds and Security. As used herein: 

“Administrative Agent” has the meaning provided in the recitals hereto, or any successor administrative agent.

 “Collateral Agent” has the meaning provided in the recitals hereto, or any successor collateral agent.

 “Credit Agreement” has the meaning provided in the recitals hereto. 

 “Domestic Foreign Subsidiary Holding Company” means any Domestic Subsidiary
that has no material assets other than the equity interests or Capital Stock of one or more Foreign Subsidiaries. 

“Lenders” has the meaning provided in the recitals hereto. 

“Parent” has the meaning provided in the recitals hereto. 

“Pledge Agreement” has the meaning provided in the recitals hereto, as the same may be amended and modified from time to
time. 
 “Pledged Collateral” has the meaning provided in Section 2 hereof. 

“Pledged Shares” has the meaning provided in Section 2 hereof. 

“Pledgors” has the meaning provided in the recitals hereto, together with their respective successors and assigns.

 “Secured Obligations” means the Obligations and all costs and expenses incurred in connection with
enforcement and collection of the Obligations, including reasonable attorneys’ fees and disbursements. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York unless application of
the choice of law provisions of the New York Uniform Commercial Code would require application of the laws of another jurisdiction. 
 (b) Interpretive Provisions, etc. Each of the terms and provisions of Section 1.02 of the Credit Agreement (in each case as the same may be amended or modified as provided therein) are
incorporated herein by reference to the same extent and with the same effect as if fully set forth herein. 
 2. Pledge and
Grant of Security Interest. To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Pledgor hereby grants, pledges and assigns to
the Collateral Agent, for the ratable benefit of the holders of the Secured Obligations, a continuing security interest in any and all right, title and interest of such Pledgor in and to the following, whether now owned or existing or owned,
acquired, or arising hereafter (collectively, the “Pledged Collateral”): 
 (a) Pledged
Shares. (i) 100% of the issued and outstanding Capital Stock directly owned by such Pledgor of each Domestic Subsidiary (other than any Excluded Domestic Subsidiary) and (ii) 65% of all issued and outstanding shares of Capital Stock
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting Equity”) of each First Tier Foreign Subsidiary and each Domestic Foreign Subsidiary Holding Company directly owned by such Pledgor (or, if such
Pledgor directly owns less than 65% of all the issued and outstanding Voting Equity of a First Tier Foreign Subsidiary or a Domestic 

  
 2 

 
Foreign Subsidiary Holding Company, then 100% of the Voting Equity directly owned by such Pledgor), in each case set forth on Schedule 2(a) attached hereto, together with the certificates (or
other agreements or instruments), if any, representing such Capital Stock, and all options and other rights, contractual or otherwise, with respect thereto (collectively, together with the Capital Stock described in Section 2(b) and 2(c) below,
the “Pledged Shares”), including the following: 
 (A) all shares, securities, membership
interests or other equity interests representing a dividend on any of the Pledged Shares, or representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock split, revision, reclassification or
other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder of, or otherwise in respect of, the Pledged Shares; and 
 (B) without affecting the obligations of the Pledgors under any provision prohibiting such action hereunder or under the Credit Agreement, in the event of any consolidation or merger involving the issuer
of any Pledged Shares and in which such issuer is not the surviving entity, all Capital Stock of the successor entity formed by or resulting from such consolidation or merger to the extent such Capital Stock could be pledged under clause
(a) above. 
 (b) Additional Shares. (i) 100% of the issued and outstanding Capital Stock
directly owned by such Pledgor of any Person that hereafter becomes a Domestic Subsidiary (other than any Excluded Domestic Subsidiary) and (ii) 65% of the Voting Equity directly owned by such Pledgor of any Person that hereafter becomes a
First Tier Foreign Subsidiary or a Domestic Foreign Subsidiary Holding Company, including the certificates (or other agreements or instruments) representing such Capital Stock. 

(c) Accessions and Proceeds. All Proceeds of any and all of the foregoing. 

Upon such pledge by the Pledgor pursuant to clause (b) above, such additional Capital Stock shall be deemed to be part of the
Pledged Collateral of such Pledgor and shall be subject to the terms of this Pledge Agreement whether or not Schedule 2(a) is amended to refer to such additional Capital Stock. 

Notwithstanding anything to the contrary contained herein, the security interests granted under this Pledge Agreement shall not extend to
any Excluded Property (as defined in the Security Agreement). 

  
 3 

 3. Security for Secured Obligations. The security interest created hereby in the
Pledged Collateral of each Pledgor constitutes continuing collateral security for all of the Secured Obligations. 
 4.
Delivery of the Pledged Collateral. Each Pledgor hereby agrees that: 
 (a) Such Pledgor shall deliver to
the Collateral Agent (i) simultaneously with or prior to the execution and delivery of this Pledge Agreement, all certificates, if any, representing the Pledged Shares of such Pledgor (to the extent such certificates representing the Pledged
Shares of such Pledgor are not already in the possession of the Collateral Agent) and (ii) promptly upon the receipt thereof by or on behalf of such Pledgor, all other certificates and instruments constituting Pledged Collateral of such
Pledgor; provided that, prior to the discharge of the Convertible Notes, such Pledgor shall not be required to deliver any such certificate or instrument with respect to the Company
and its Subsidiaries to the Collateral Agent pursuant to this Section 4(a) to the extent such certificate or instrument is in the possession of the Convertible Notes Agent. Prior to delivery to the Collateral Agent, all such certificates
and instruments constituting Pledged Collateral of a Pledgor shall be held in trust by such Pledgor for the benefit of the Collateral Agent and the holders of the Secured Obligations pursuant hereto. All such certificates shall be delivered in
suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Exhibit 4(a) attached hereto. 

(b) Additional Securities. If such Pledgor shall receive by virtue of its being or having been the owner of any
Pledged Collateral, any (i) certificate, including any certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares
or other equity interests, stock splits, spin- off or split- off, promissory notes or other instruments; (ii) option or right, whether as an addition to, substitution for, or an exchange for, any Pledged Collateral or otherwise;
(iii) dividends payable in securities; or (iv) distributions of securities in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then such Pledgor shall receive such
certificate, instrument, option, right or distribution in trust for the benefit of the Collateral Agent and the holders of the Secured Obligations, shall segregate it from such Pledgor’s other property and shall deliver it forthwith to the
Collateral Agent in the exact form received together with any necessary endorsement and/or appropriate stock power duly executed in blank, substantially in the form provided in Exhibit 4(a), to be held by the Collateral Agent as Pledged Collateral
and as further collateral security for the Secured Obligations.; provided that such Pledgor shall not be required to deliver any such certificate, instrument,
option, right or distribution with respect to the Company and its Subsidiaries to the Collateral Agent pursuant to this Section 4(b) to the extent such Pledgor is required to deliver such certificate, 

  
 4 

 
instrument, option, right or distribution to the Convertible Notes Agent pursuant to the terms of the Convertible Notes.

 (c) Financing Statements. Each Pledgor authorizes the Collateral Agent to prepare and file such UCC or
other applicable financing statements as may be reasonably deemed necessary by the Collateral Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor. 

5. Representations and Warranties. Each Pledgor hereby represents and warrants, as to itself and not any other Pledgor, to the
Collateral Agent, for the benefit of the Collateral Agent and the holders of the Secured Obligations, that: 

(a) Authorization of Pledged Shares. The Pledged Shares are duly authorized and validly issued, are, with respect
to Pledged Shares of a corporation, fully paid and nonassessable and are not subject to the preemptive rights of any Person. 
 (b) Title. Each Pledgor has good and marketable title to the Pledged Collateral of such Pledgor and will at all times be the legal and beneficial owner of such Pledged Collateral free and clear of
any Lien, other than Permitted Liens. There exists no “adverse claim” within the meaning of Section 8-102 of the UCC with respect to the Pledged Shares of such Pledgor.
( other than with respect to certificates, instruments, options, rights or distributions in respect of Pledged Shares of the Company and its Subsidiaries that are
delivered to the Collateral Agent in violation of the documentation governing the Convertible Notes). 
 (c)
Pledgor’s Authority. No authorization, approval or action by, and no notice or filing with any Governmental Authority or with the issuer of any Pledged Shares or under any material contract is required either (i) for the pledge made
by a Pledgor or for the granting of the security interest by a Pledgor pursuant to this Pledge Agreement (except as have been already obtained or made) or (ii) for the exercise by the Collateral Agent of its rights and remedies hereunder
(except as may be required by laws affecting the offering and sale of securities and as otherwise required under the Organization Documents of the applicable issuer). 

(d) Security Interest/Priority. This Pledge Agreement creates a valid security interest in favor of the Collateral
Agent for the benefit of the holders of the Secured Obligations, in the Pledged Collateral. The delivery to the Collateral Agent or the Convertible Notes Agent, of certificates
evidencing the Pledged Collateral, together with duly executed stock powers in respect thereof, will perfect and establish the first priority of the Collateral Agent’s security interest in any certificated Pledged Collateral that constitutes a
Security (subject to Liens arising by operation of law and Liens permitted by Section 8.01(u) of the Credit Agreement). The filing of appropriate UCC financing statements in the 

  
 5 

 
appropriate filing offices in the jurisdiction of organization of the applicable Pledgor or obtaining “control” over such interests in accordance with the provisions of
Section 8-106 of the UCC will perfect the Collateral Agent’s security interest in any uncertificated Pledged Collateral that constitutes a Security. The filing of appropriate UCC financing statements in the appropriate filing offices in
the jurisdiction of organization of the applicable Pledgor will perfect the Collateral Agent’s security interest in any Pledged Collateral that does not constitute a Security. Except as set forth in this subsection (e), no action is necessary
to perfect the security interests granted by the Pledgors under this Pledge Agreement. 
 (e) Partnership and
Membership Interests. Except as set forth on Schedule 5(e) (as such Schedule may be updated from time to time following compliance by such Pledgor with Section 6(e) hereof), none of the Pledged Shares consisting of partnership or limited
liability company interests (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company
security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset. 

(f) No Other Interests. Other than as set forth on Schedule 2(a), as of the Closing Date, no Pledgor owns any
Capital Stock required to be pledged hereunder in any Domestic Subsidiary or in any First Tier Foreign Subsidiary. 
 6.
Covenants. Each Pledgor hereby covenants, that so long as any of the Secured Obligations remains outstanding (other than contingent indemnification obligations) and until all of the commitments under the Credit Agreement have been terminated,
such Pledgor shall: 
 (a) Defense of Title. Warrant and defend title to and ownership of the Pledged
Collateral of such Pledgor at its own expense against the claims and demands of all other parties claiming an interest therein, keep the Pledged Collateral free from all Liens, except for Permitted Liens, and not sell, exchange, transfer, assign,
lease or otherwise dispose of Pledged Collateral of such Pledgor or any interest therein, except as permitted under the Credit Agreement and the other Credit Documents. 

(b) Further Assurances. Promptly execute and deliver at its expense all further instruments and documents and take
all further action that may be necessary or that the Collateral Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including any and all reasonable
action necessary to satisfy the Collateral Agent that the Collateral Agent has obtained a first priority perfected security interest in all Pledged Collateral, subject to Liens arising by operation of law and Liens permitted by Section 8.01(u)
of the Credit Agreement); (ii) enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral of such Pledgor in accordance 

  
 6 

 
with this Pledge Agreement, the Organization Documents of the applicable issuer and applicable Law; and (iii) otherwise effect the purposes of this Pledge Agreement, including and if
requested by the Collateral Agent, delivering to the Collateral Agent irrevocable proxies substantially in the form of Exhibit 4(a) in respect of the Pledged Collateral of such Pledgor. 

(c) Amendments. Not make or consent to any amendment or other modification or waiver with respect to any of the
Pledged Collateral of such Pledgor or enter into any agreement or allow to exist any restriction with respect to any of the Pledged Collateral of such Pledgor other than pursuant hereto or as may be permitted under the Credit Agreement. 

(d) Compliance with Securities Laws. File all reports and other information now or hereafter required to be filed
by such Pledgor with the United States Securities and Exchange Commission and any other state, federal or foreign agency in connection with the ownership of the Pledged Collateral of such Pledgor. 

(e) Issuance or Acquisition of Capital Stock. Not, without executing and delivering, or causing to be executed and
delivered, to the Collateral Agent such agreements, documents and instruments as the Collateral Agent may reasonably require, issue or acquire any Capital Stock consisting of an interest in a partnership or a limited liability company that
(i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a
securities account or (v) constitutes a Security or a Financial Asset.; provided that such Pledgor shall not be required to deliver any such agreement,
document or instrument with respect to the Company and its Subsidiaries to the Collateral Agent pursuant to this Section 6(e) to the extent such Pledgor is required to deliver such agreement, document or instrument to the Convertible Notes Agent
pursuant to the documentation governing the Convertible Notes. 

(f) Discharge of Convertible Notes. Upon the discharge
in full of the Convertible Notes in accordance with the provisions thereof, such Pledgor shall, to the extent not already delivered by the Convertible Notes Agent to the Collateral Agent, (i) deliver or cause the Convertible Notes Agent to
deliver to the Collateral Agent any certificates, agreements, documents, instruments, options, rights or distributions described in Section 4(a), 4(b) or 6(e) or otherwise with respect to the Company and its Subsidiaries in the possession of
the Convertible Notes Agent and (ii) deliver to the Collateral Agent any necessary endorsement and/or appropriate stock power duly executed in blank, substantially in the form provided in Exhibit 4(a) in respect thereof. 

7. Advances and Performance by the Collateral Agent. On failure of any Pledgor to perform any of the covenants and agreements
contained herein and after the expiration of any applicable cure periods provided in Section 9.01(c) of the Credit 

  
 7 

 
Agreement, the Collateral Agent may, at its sole option and in its sole discretion, perform the same and in so doing may expend such sums as the Collateral Agent may reasonably deem advisable in
the performance thereof, including the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien, expenditures made in defending against any adverse claim and all other expenditures that the Collateral
Agent, for the benefit of the holders of the Secured Obligations, may make for the protection of the security hereof or may be compelled to make by operation of law. All such sums and amounts so expended by the Collateral Agent shall be repayable by
the Pledgors on a joint and several basis (subject to Section 25 hereof) promptly upon timely notice thereof and demand therefor including, subject to Section 11.04 of the Credit Agreement, attorneys’ fees and expenses, shall constitute
additional Secured Obligations and shall bear interest from the date said amounts are expended at the Default Rate. No such performance of any covenant or agreement by the Collateral Agent, on behalf of the holders of the Secured Obligations, on
behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve the Pledgors of any default under the terms of the Credit Agreement, this Pledge Agreement or the other Credit Documents. The Collateral Agent may make any payment
hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of
any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by a Pledgor in appropriate proceedings and against which adequate reserves are being maintained in accordance with
GAAP. 
 8. Remedies. 
 (a) General Remedies. After the occurrence and during the continuation of an Event of Default, the Collateral Agent and the holders of the Secured Obligations, shall have, in addition to the rights
and remedies provided herein or in the Credit Documents, or by law (including levy of attachment and garnishment), the rights and remedies of a secured party under the UCC of the jurisdiction applicable to the affected Pledged Collateral.

 (b) Sale of Pledged Collateral. After the occurrence and during the continuation of an Event of
Default, without limiting the generality of this Section 8, the Collateral Agent may, in its sole discretion, sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public or private
sale, at any exchange or broker’s board or elsewhere, at such price or prices and on such other terms as the Collateral Agent may deem commercially reasonable, for cash, credit or for future delivery or otherwise in accordance with applicable
law. To the extent permitted by law, any holder of the Secured Obligations may in such event, bid for the purchase of such securities. Each Pledgor agrees that, to the extent notice of sale shall be required by law and has not been waived by such
Pledgor, any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed, postage prepaid, to such Pledgor, in accordance
with the notice 

  
 8 

 
provisions of Section 11.02 of the Credit Agreement at least ten days before the time of such sale. The Collateral Agent shall not be obligated to make any sale of Pledged Collateral of such
Pledgor regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. 
 (c) Private Sale. After the occurrence and during the
continuation of an Event of Default, the Pledgors recognize that the Collateral Agent may deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any of the securities constituting Pledged Collateral and that the
Collateral Agent may, therefore, after the occurrence and during the continuation of an Event of Default, determine to make one or more private sales of any such Pledged Collateral to a restricted group of purchasers who will be obligated to agree,
among other things, to acquire such Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof. Each Pledgor acknowledges that any such private sale may be at prices and on terms less favorable
to the seller than the prices and other terms that might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially reasonable manner and that the
Collateral Agent shall have no obligation to delay sale of any such Pledged Collateral for the period of time necessary to permit the issuer of such Pledged Collateral to register such Pledged Collateral for public sale under the Securities Act.
Each Pledgor further acknowledges and agrees that any offer to sell such Pledged Collateral that has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New
York, New York (to the extent that such offer may be advertised without prior registration under the Securities Act), or (ii) made privately in the manner described above shall be deemed to involve a “public sale” under the UCC,
notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and the Collateral Agent may, in such event, bid for the purchase of such Pledged Collateral. 

(d) Retention of Pledged Collateral. To the extent permitted under applicable law, in addition to the rights and
remedies hereunder, after the occurrence and during the continuation of an Event of Default, the Collateral Agent may, after providing the notices required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of
applicable law of the relevant jurisdiction, accept or retain all or any portion of the Pledged Collateral in satisfaction of the Secured Obligations. Unless and until the Collateral Agent shall have provided such notices, however, the Collateral
Agent shall not be deemed to have accepted or retained any Pledged Collateral in satisfaction of any Secured Obligations for any reason. 

  
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 (e) Deficiency. In the event that the proceeds of any sale,
collection or realization are insufficient to pay all amounts to which the Collateral Agent or the holders of the Secured Obligations are legally entitled, the Pledgors shall be jointly and severally liable for the deficiency (subject to
Section 25 hereof), together with interest thereon at the Default Rate. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent
jurisdiction shall determine to be entitled thereto. 
 9. Rights of the Collateral Agent. 

(a) Power of Attorney. In addition to other powers of attorney contained herein, each Pledgor hereby designates and
appoints the Collateral Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with power of substitution, with authority to take any or all of the
following actions after the occurrence and during the continuation of an Event of Default: 
 (i) to demand,
collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the Collateral Agent may reasonably deem appropriate; 

(ii) to commence and prosecute any actions at any court for the purposes of collecting any of the Pledged Collateral and
enforcing any other right in respect thereof; 
 (iii) to defend, settle or compromise any action brought and,
in connection therewith, give such discharge or release as the Collateral Agent may reasonably deem appropriate; 
 (iv) to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Pledged Collateral; 

(v) to direct any parties liable for any payment in connection with any of the Pledged Collateral to make payment of any
and all monies due and to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; 
 (vi) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Pledged Collateral; 

(vii) to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents
relating to the Pledged Collateral; 

  
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 (viii) to authorize or to execute and deliver all assignments, conveyances,
statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Collateral Agent may reasonably deem necessary in order to perfect and
maintain the security interests and liens granted in this Pledge Agreement and in order to fully consummate all of the transactions contemplated therein; 
 (ix) to exchange any of the Pledged Collateral or other property upon any merger, consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in connection therewith,
deposit any of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated agency upon such terms as the Collateral Agent may reasonably deem necessary; 

(x) to vote for a shareholder resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of
the Pledged Collateral into the name of the Collateral Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to whom the Pledged Collateral or any part thereof may be sold pursuant to Section 8
hereof; and 
 (xi) to do and perform all such other acts and things as the Collateral Agent may reasonably deem
necessary in connection with the Pledged Collateral. 
 This power of attorney is a power coupled with an interest and shall be
irrevocable. The Collateral Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Collateral Agent in this Pledge Agreement, and shall not be
liable for any failure to do so or any delay in doing so. The Collateral Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact
except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Collateral Agent solely to protect, preserve and realize upon its security interest in the Pledged Collateral. 

(b) Assignment by the Collateral Agent. The Collateral Agent may from time to time assign the Secured Obligations
and any portion thereof and/or the Pledged Collateral and any portion thereof in connection with its resignation as Collateral Agent pursuant to Article 10 of the Credit Agreement, and the assignee shall be entitled to all of the rights and remedies
of the Collateral Agent under this Pledge Agreement in relation thereto. 
 (c) The Collateral Agent’s
Duty of Care. Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while being held by the Collateral Agent hereunder, the Collateral Agent shall have no duty 

  
 11 

 
or liability to preserve rights pertaining thereto, it being understood and agreed that the Pledgors shall be responsible for preservation of all rights in the Pledged Collateral, and the
Collateral Agent shall be relieved of all responsibility for the Pledged Collateral upon surrendering it or tendering the surrender of it to the Pledgors. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property, which shall be no less than the treatment employed by a
reasonable and prudent agent in the industry, it being understood that the Collateral Agent shall not have responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating
to any Pledged Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters. 
 (d) Voting Rights in Respect of the Pledged Collateral. 

(i) So long as no Event of Default shall have occurred and be continuing, to the extent permitted by law, each Pledgor
may exercise any and all voting and other consensual rights solely pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this Pledge Agreement or the Credit Agreement; and

 (ii) After the occurrence and during the continuation of an Event of Default and following delivery to such
Pledgor by the Collateral Agent of written notice of its intent to exercise such rights, all rights of a Pledgor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to clause (i) of this
subsection shall cease and all such rights shall thereupon become vested in the Collateral Agent, which shall then have the sole right to exercise such voting and other consensual rights. 

(e) Dividend Rights in Respect of the Pledged Collateral. 

(i) So long as no Event of Default shall have occurred and be continuing and subject to Section 4(b) hereof, each
Pledgor may receive and retain any and all dividends (other than stock dividends and other dividends constituting Pledged Collateral addressed herein) or interest paid solely in respect of the Pledged Collateral to the extent they are allowed under
the Credit Agreement. 
 (ii) After the occurrence and during the continuation of an Event of Default:

 (A) all rights of a Pledgor to receive the dividends and interest payments that it would otherwise be
authorized to 

  
 12 

 
receive and retain pursuant to clause (i) of this subsection shall cease and all such rights shall thereupon be vested in the Collateral Agent, which shall then have the sole right to
receive and hold as Pledged Collateral such dividends and interest payments; and 
 (B) all dividends and
interest payments that are received by a Pledgor contrary to the provisions of clause (A) of this subsection shall be received in trust for the benefit of the Collateral Agent and the holders of the Secured Obligations, shall be segregated from
other property or funds of such Pledgor, and shall be forthwith paid over to the Collateral Agent as Pledged Collateral in the exact form received, to be held by the Collateral Agent as Pledged Collateral and as further collateral security for the
Secured Obligations.; provided that such Pledgor shall not be required to pay over any dividends or interest payments with respect to the Company and its
Subsidiaries to the Collateral Agent pursuant to this clause (ii)(B) of this subsection to the extent such Pledgor is required to pay over such dividends or interest payments to the Convertible Notes Agent pursuant to the documentation governing the
Convertible Notes. 
 10. Exercise of Rights by Required Lenders. In the event there is no Collateral Agent, the
rights of the Collateral Agent may be exercised by the Required Lenders. 
 11. Application of Proceeds. After the
occurrence and during the continuation of an Event of Default, any payments in respect of the Secured Obligations and any proceeds of the Pledged Collateral, when received by the Collateral Agent or any of the holders of the Secured Obligations in
cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in Section 9.03 of the Credit Agreement, and each Pledgor irrevocably waives the right to direct the application of such payments and
proceeds and acknowledges and agrees that the Collateral Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the Collateral Agent’s sole discretion, notwithstanding any entry to the
contrary upon any of its books and records. 
 12. Release of Pledged Collateral. Upon request, the Collateral Agent
shall promptly deliver to the applicable Pledgor (at the Pledgor’s expense) appropriate release documentation and any certificates or other documents delivered to the Collateral Agent by such Pledgor to the extent the release of Pledged
Collateral is permitted under, and on the terms and conditions set forth in, the Credit Agreement and the other Credit Documents; provided that any such release, or the substitution of any of the Pledged Collateral for other Collateral,
will not alter, vary or diminish in any way the force, effect, lien, pledge or security interest of this Pledge 

  
 13 

 
Agreement as to any and all Pledged Collateral not expressly released or substituted, and this Pledge Agreement shall continue as a first priority lien (subject to Permitted Liens) on any and all
Pledged Collateral not expressly released or substituted. 
 13. Costs and Expenses. At all times hereafter, whether or
not upon the occurrence of an Event of Default, the Pledgors agree to promptly pay upon demand any and all reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees and actual disbursements) of the Collateral Agent and
the other holders of the Secured Obligations to the extent required under Section 11.04 of the Credit Agreement. 
 14.
Continuing Agreement. 
 (a) This Pledge Agreement shall be a continuing agreement in every respect. This
Pledge Agreement shall be terminated as provided in the Credit Agreement and, in any such case, the Collateral Agent and the holders of the Secured Obligations shall, upon the request and at the expense of the Pledgors, forthwith release all of its
liens and security interests hereunder, deliver to the pertinent Pledgor any certificates or other documents delivered to the Collateral Agent by such Pledgor and execute and deliver all UCC termination statements and/or other documents reasonably
requested by the Pledgors evidencing such termination. 
 (b) This Pledge Agreement shall continue to be
effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any holder of the Secured
Obligations as a preference, fraudulent conveyance or otherwise under any Debtor Relief Law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must
be restored or returned, all reasonable costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by the Collateral Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be
deemed to be included as a part of the Secured Obligations. 
 15. Amendments and Waivers. This Pledge Agreement and the
provisions hereof may not be amended, waived, modified, changed, discharged or terminated except by written agreement of (a) the Pledgors and (b) the Collateral Agent. 

16. Successors in Interest. This Pledge Agreement shall create a continuing security interest in the Collateral and shall be
binding upon each Pledgor, its successors and assigns, and shall inure, together with the rights and remedies of the Collateral Agent and the holders of the Secured Obligations hereunder, to the benefit of the Collateral Agent and the holders of the
Secured Obligations and their successors and permitted assigns; provided, however, that none of the Pledgors may 

  
 14 

 
assign its rights or delegate its duties hereunder without the prior written consent of the Collateral Agent or as otherwise expressly provided under the Credit Agreement. 

17. Notices. All notices required or permitted to be given under this Pledge Agreement shall be given as provided in
Section 11.02 of the Credit Agreement. 
 18. Counterparts. This Pledge Agreement may be executed in any number of
counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Pledge Agreement to produce or account for more than
one such counterpart. Delivery of an executed counterpart of this Pledge Agreement by facsimile or electronic mail shall be effective as delivery of a manually executed counterpart of this Pledge Agreement. 

19. Headings. The headings of the sections and subsections hereof are provided for convenience only and shall not in any way
affect the meaning or construction of any provision of this Pledge Agreement. 
 20. Governing Law. THIS PLEDGE AGREEMENT
AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS PLEDGE AGREEMENT (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT ARISING OUT OF THE SUBJECT MATTER HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 21. Severability. If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable
provisions. 
 22. Entirety. This Pledge Agreement and the other Credit Documents represent the entire agreement of the
parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Credit Documents or the transactions contemplated herein and therein.

 23. Survival. All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of
this Pledge Agreement and the other Credit Documents, the delivery of the Notes and the extension of credit thereunder or in connection therewith. 
 24. Other Security. To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Pledged Collateral (including real and other personal property owned by
a Pledgor), or by a guarantee, endorsement or property of any other Person, then the Collateral Agent shall have the right to proceed (to the extent not prohibited by the applicable guarantee, endorsement, security agreement, pledge agreement,
mortgage or other collateral document) against such other property, guarantee or endorsement after the occurrence and during the 

  
 15 

 
continuation of an Event of Default, and the Collateral Agent shall have the right, in its sole discretion, to determine which rights, security, liens, security interests or remedies the
Collateral Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights of the Collateral Agent or the
holders of the Secured Obligations under this Pledge Agreement or under any of the other Credit Documents. 
 25. Joint and
Several Obligations of Pledgors. 
 (a) Subject to subsection (c) of this Section 24, each of the
Pledgors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the holders of the Secured Obligations, for the mutual benefit, directly and indirectly, of each of the Pledgors
and in consideration of the undertakings of each of the Pledgors to accept joint and several liability for the obligations of each of them. 
 (b) Subject to subsection (c) of this Section 24, each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint
and several liability with the other Pledgors with respect to the payment and performance of all of the Secured Obligations arising under this Pledge Agreement, the other Credit Documents and any other documents relating to the Secured Obligations,
it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Pledgors without preferences or distinction among them. 

(c) Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents or in any other
documents relating to the Secured Obligations, the obligations of each Pledgor that is a Guarantor under the Credit Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would not
render such obligations subject to avoidance under Section 548 of the Bankruptcy Code of the United States or any other applicable Debtor Relief Law (including any comparable provisions of any applicable state law). 

26. Foreign Subsidiaries and Property of Foreign Subsidiaries. For the avoidance of doubt, no Foreign Subsidiary shall at any time
be liable for any portion of the Secured Obligations, including, without limitation, the principal of the Loans or any interest thereon or fees payable with respect thereto (and the Credit Parties are solely liable for such Obligations), and no
Property owned by any Foreign Subsidiary shall at any time constitute Collateral. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  
 16 

 Each of the parties hereto has caused a counterpart of this Pledge Agreement to be duly
executed and delivered as of the date first above written. 
 PLEDGORS: 

 

	
	TEMPUR-PEDIC INTERNATIONAL INC., a Delaware corporation
	
	TEMPUR WORLD, LLC, a Delaware limited liability company
	
	TEMPUR-PEDIC MANAGEMENT, LLC, a Delaware limited liability company
	
	TEMPUR-PEDIC NORTH AMERICA, LLC, a Delaware limited liability company
	
	TEMPUR-PEDIC TECHNOLOGIES, INC., a Delaware corporation
	
	TEMPUR PRODUCTION USA, LLC, a Virginia limited liability company
	
	DAWN SLEEP TECHNOLOGIES, INC., a Delaware corporation
	
	TEMPUR-PEDIC MANUFACTURING, INC., a Delaware corporation
	
	TEMPUR-PEDIC SALES, INC., a Delaware corporation
	
	TEMPUR-PEDIC AMERICA, LLC, a Delaware limited liability company
	
	SEALY CORPORATION, a Delaware corporation
	
	SEALY MATTRESS CORPORATION, a Delaware corporation
	
	SEALY MATTRESS COMPANY, an Ohio corporation
	
	OHIO-SEALY MATTRESS MANUFACTURING CO. INC., a Massachusetts corporation

	
	OHIO-SEALY MATTRESS MANUFACTURING CO., a Georgia corporation
	
	SEALY MATTRESS COMPANY OF KANSAS CITY, INC., a Missouri corporation
	
	SEALY MATTRESS COMPANY OF ILLINOIS, an Illinois corporation
	
	A. BRANDWEIN & CO., an Illinois corporation
	
	SEALY MATTRESS COMPANY OF ALBANY, INC., a New York corporation
	
	SEALY OF MARYLAND AND VIRGINIA, INC., a Maryland corporation
	
	SEALY OF MINNESOTA, INC., a Minnesota corporation
	
	NORTH AMERICAN BEDDING COMPANY, an Ohio corporation
	
	SEALY, INC., an Ohio corporation
	
	THE OHIO MATTRESS COMPANY LICENSING AND COMPONENTS GROUP, a Delaware corporation
	
	SEALY MATTRESS MANUFACTURING COMPANY, INC., a Delaware corporation
	
	SEALY TECHNOLOGY LLC, a North Carolina limited liability company
	
	SEALY-KOREA, INC., a Delaware corporation
	
	MATTRESS HOLDINGS INTERNATIONAL, LLC, a Delaware limited liability company

					
	SEALY REAL ESTATE, INC., a North Carolina corporation
	
	SEALY MATTRESS COMPANY OF PUERTO RICO, an Ohio corporation
	
	SEALY TEXAS MANAGEMENT, INC., a Texas corporation
	
	WESTERN MATTRESS COMPANY, a California corporation
	
	SEALY MATTRESS COMPANY OF MEMPHIS, a Tennessee corporation
	
	SEALY MATTRESS CO. OF S.W. VIRGINIA, a Virginia corporation
	
	ADVANCED SLEEP PRODUCTS, a California corporation
	
	SEALY COMPONENTS-PADS, INC., a Delaware corporation
	
	SEALY MATTRESS COMPANY OF MICHIGAN, INC., a Michigan corporation
		
	By:	 	  

		 	Name:	 	Dale E. Williams
		 	Title:	 	Executive Vice President and Chief Financial Officer

			
	Accepted and agreed to as of the date first above written.
	
	 BANK OF AMERICA, N.A.,
as Collateral Agent

		
	By:	 	  

		 	Name:
		 	Title:

 SCHEDULES AND EXHIBITS 

 

			
	Schedule 2(a)	  	Pledged Shares
	Schedule 5(e)	  	Partnership and Membership Interests
	Exhibit 4(a)	  	Form of Stock Power

 Schedule 2(a) 
 PLEDGED 
 SHARES 

 

									
	Pledgor	 	Issuer	 	[Number of
Shares]	 	[Certificate
Number]	 	Percentage
Ownership
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

 Schedule 2(f) 
 PARTNERSHIP AND MEMBERSHIP INTERESTS 

 Exhibit 4(a) 
 Irrevocable Stock Power 
 FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers to 
 the following shares of capital stock of
                     [ISSUER], a
                    : 
  

			
	 No. of Shares
	  	 Certificate No.

		  	
		  	
		  	

 and irrevocably appoints
                     its agent and attorney-in-fact to transfer all or any part of such capital stock and to take all necessary and
appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him. The effectiveness of a transfer pursuant to this stock power shall be subject to any and all transfer
restrictions referenced on the face of the certificates evidencing such interest or in the certificate of incorporation or bylaws of the subject issuer, to the extent they may from time to time exist. 

 

					
	[HOLDER]
		
	By:	 	  

		 	Name:	 	
		 	Title:EX-10.7

 Exhibit 10.7 
 EXECUTION VERSION 
 AMENDMENT NO. 2 TO CREDIT AGREEMENT 

AMENDMENT NO. 2 (this “Second Amendment”) dated as of May 16, 2013 to the Credit Agreement dated as of
December 12, 2012 (as amended by Amendment No. 1 to the Credit Agreement dated as of March 13, 2013, the “Credit Agreement”), among TEMPUR-PEDIC INTERNATIONAL INC. (the “Parent”), TEMPUR-PEDIC
MANAGEMENT, LLC (the “Lead Borrower”), TEMPUR-PEDIC NORTH AMERICA, LLC and TEMPUR PRODUCTION USA, LLC, each as a Borrower, the Guarantors identified therein, each lender from time to time party thereto (collectively, the
“Lenders” and individually, a “Lender”) and BANK OF AMERICA, N.A., as Administrative Agent, Swingline Lender and L/C Issuer. 
 WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the Lead Borrower has requested Refinancing Term B Loans (as defined below) to refinance in full the Existing Term B Loans (as defined
below); 
 WHEREAS, in accordance with Section 2.20 of the Credit Agreement, the Refinancing Term B Lenders (as defined
below) have elected to provide the Refinancing Term B Loans on the terms and conditions set forth herein; 
 WHEREAS, each
Person that agrees to make Refinancing Term B Loans (collectively, the “Refinancing Term B Lenders”) will make Refinancing Term B Loans to the Borrowers on the Second Amendment Effective Date (as defined below) (the
“Refinancing Term B Loans”) in an amount equal to its Refinancing Term Commitment (as defined below); 

WHEREAS, the proceeds of the Refinancing Term B Loans will be applied to refinance in full the Term B Loans outstanding on the Second
Amendment Effective Date (immediately prior to the effectiveness of this Second Amendment) (the “Existing Term B Loans”); 
 WHEREAS, this Second Amendment includes amendments to the Credit Agreement that are subject to the approval of the Required Lenders, and that, in each case, will become effective on the Second Amendment
Effective Date on the terms and subject to the conditions set forth herein; 
 Accordingly, in consideration of the foregoing
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 

Section 1.01 Definitions. Capitalized terms used and not otherwise defined herein have the meanings assigned to them
in the Credit Agreement as amended by this Second Amendment (the “Amended Credit Agreement”). 
 ARTICLE II

 REFINANCING TRANSACTIONS 
 Section 2.01 Refinancing Transactions. 
 (a) Subject to the
terms and conditions set forth herein, each Refinancing Term B Lender severally agrees to make a Refinancing Term B Loan to the Borrowers on the Second Amendment 

 
Effective Date in a principal amount equal to its Refinancing Term Commitment. The “Refinancing Term Commitment” of any Refinancing Term B Lender will be the amount set forth
opposite such Refinancing Term B Lender’s name on Schedule 1 hereto. On the Second Amendment Effective Date, the proceeds of the Refinancing Term B Loans shall be applied to refinance in full the Existing Term B Loans (the
“Refinancing”). 
 (b) Each Existing Term B Lender that executes and delivers a signature page to this Second
Amendment (a “Consent”) under the “Cashless Settlement Option” (each such lender, a “Cashless Option Lender”) hereby agrees, on the Second Amendment Effective Date and on the terms and conditions set forth
herein and in the Amended Credit Agreement, to exchange all (or such lesser amount as the Administrative Agent may allocate) of its Existing Term B Loans for Refinancing Term B Loans (which Existing Term B Loans shall thereafter no longer be deemed
to be outstanding) under the Amended Credit Agreement, in the same aggregate principal amount as such Existing Term B Lender’s Existing Term B Loans under the Credit Agreement (or such lesser amount as the Administrative Agent may allocate; any
such principal amount of Existing Term B Loans not allocated for exchange to Refinancing Term B Loans, the “Non-Allocated Term B Loans”), and such Existing Term B Lender shall thereafter be a Term B Lender under the Amended Credit
Agreement. Each Term B Lender that shall not have executed a Consent hereto shall have its Existing Term B Loans repaid in full, and the Borrowers shall pay to each such Term B Lender all accrued and unpaid interest on, and premiums and fees related
to, such Term B Lender’s Term B Loans to, but not including, the Second Amendment Effective Date and each Cashless Option Lender with Non- Allocated Term B Loans shall have its Non-Allocated Term B Loans outstanding immediately prior to the
Second Amendment Effective Date repaid in full, and the Borrowers shall pay to each such Term B Lender all accrued and unpaid interest on, and premiums and fees related to, such Term B Lender’s Non-Allocated Term B Loans to, but not including,
the Second Amendment Effective Date. 
 (c) Each Cashless Option Lender shall, effective on the Second Amendment Effective Date,
automatically become party to the Amended Credit Agreement as a Lender. Each Term B Lender under the Credit Agreement that executes and delivers a Consent agrees that (i) to the extent its Existing Term B Loans under the Credit Agreement are
being repaid on the Second Amendment Effective Date it waives any amounts it may be entitled to under Section 2.06(a) of the Credit Agreement in connection with such repayment and (ii) such Cashless Option Lender shall not be entitled to
any compensation under Section 3.05 of the Credit Agreement as a result of such repayment (it being acknowledged that the Interest Period for such Cashless Option Lender shall be reset as of the Second Amendment Effective Date as set forth in
the Loan Notice delivered by the Lead Borrower on the Second Amendment Effective Date). 
 (d) Each Refinancing Term B Lender
party hereto and the Administrative Agent acknowledge that (i) the Lead Borrower hereby provides notice under Section 2.20(a) of the Credit Agreement of its request for Refinancing Term B Loans to refinance in full the Existing Term B
Loans, (ii) all notice requirements set forth in Section 2.20(a) of the Credit Agreement with respect to such refinancing have been satisfied and (iii) notwithstanding Section 2.02(a) of the Credit Agreement, the Borrowers shall
provide at least one Business Day notice for any Refinancing Term B Loans made on the Second Amendment Effective Date that are to be Eurocurrency Rate Loans. 
 ARTICLE III 
 AMENDMENTS TO THE CREDIT AGREEMENT AND SECURITY AGREEMENT

 Section 3.01 Amendments to Credit Agreement. Each of the parties hereto agrees that, effective on the
Second Amendment Effective Date, the Credit Agreement shall be amended to 

  
 - 2 -

 
delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same
manner as the following example: double-underlined text) as set forth in the pages of the Credit Agreement attached as Exhibit A hereto. 

Section 3.02 Amendment to Security Agreement. Section 4(d) of the Security Agreement is hereby amended by adding
the phrase “or Section 8.01(u)” immediately after the phrase “Section 8.01(p)” therein. 
 ARTICLE IV

 REPRESENTATIONS AND WARRANTIES 
 Section 4.01 Representations and Warranties. To induce the other parties hereto to enter into this Second Amendment, each Credit Party represents and warrants to each other party
hereto, on and as of the Second Amendment Effective Date, that the following statements are true and correct in all material respects on and as of the Second Amendment Effective Date: 

(a) The execution, delivery and performance by each Credit Party of this Second Amendment have been duly authorized by all necessary
corporate or other organizational action, and do not and will not contravene the terms of any of such Credit Party’s Organization Documents; 
 (b) This Second Amendment has been duly executed and delivered by each Credit Party. This Second Amendment constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each
Credit Party in accordance with its terms, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether
enforcement is sought in equity or at law); 
 (c) The representations and warranties of the Borrowers and each other Credit
Party contained in Article 6 of the Credit Agreement or any other Credit Document are true and correct in all material respects on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and, except that for purposes of this paragraph, the representations and warranties contained in subsections
(a) and (b) of Section 6.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b) respectively, of Section 7.01 of the Credit Agreement; and 

(d) As of the Second Amendment Effective Date, no Default or Event of Default shall exist immediately before or immediately after giving
effect to this Second Amendment and the incurrence of the Refinancing Term B Loans. 
 ARTICLE V 

CONDITIONS TO EFFECTIVENESS 
 Section 5.01 Second Amendment Effective Date. This Second Amendment shall become effective as of the first date (the “Second Amendment Effective Date”) on which each of
the following conditions shall have been satisfied: 
 (a) Execution and Delivery of this Second Amendment. The
Administrative Agent shall have received a counterpart signature page of this Second Amendment duly executed by each of the 

  
 - 3 -

 
Credit Parties, the Cashless Option Lenders, the Refinancing Term B Lenders, the Administrative Agent and Lenders sufficient to constitute, collectively, the requisite Lenders. 

(b) Payment of Fees. 
 (i) Except as otherwise provided in this Second Amendment, concurrently with the making of the Refinancing Term B Loans hereunder, (a) the entire aggregate principal amount of the Existing Term B
Loans and (b) all accrued interest, fees and other amounts (including any amounts due pursuant to Section 2.06 of the Credit Agreement) accrued prior to the Second Amendment Effective Date in connection therewith shall have been paid (or,
in the case of principal, deemed paid pursuant to this Second Amendment) in full and all Interest Periods in respect of thereof shall have been terminated; and 
 (ii) The Administrative Agent shall have received payment of all reasonable and documented fees and expenses of counsel for the Administrative Agent as set forth in Section 11.04 of the Credit
Agreement. 
 (c) Notes. If requested by any Refinancing Term B Lender at least three (3) Business Days prior
to the Second Amendment Effective Date, the Administrative Agent shall have received a Term B Note executed by the Borrowers in favor of such Refinancing Term B Lender; 
 (d) Opinions of Counsel. Receipt by the Administrative Agent, on behalf of itself and the Lenders, of customary opinions of legal counsel to the Credit Parties (which shall cover authority,
legality, validity, binding effect and enforceability of this Second Amendment, non-contravention of Organization Documents, specified material agreements and applicable Law and reaffirmation of security interests). 

(e) Organization Documents, Resolutions, Etc. Receipt by the Administrative Agent of the following: 

i. copies of the Organization Documents of each Credit Party certified to be true and complete as of a recent date by the
appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a secretary or assistant secretary of such Credit Party to be true and correct as of the Closing Date (or
a certificate of a Responsible Officer certifying that there have been no changes to such documents and certificates since March 18, 2013 or, if any changes have been made, appending such amendments to such certificate and certifying that the
attached is a true and complete copy of such documents); 
 ii. certificates of resolutions or other action and
incumbency certificates of Responsible Officers of each Credit Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Second Amendment (or a certificate of a Responsible Officer certifying that there have been no changes to such documents and certificates since March 18, 2013); and 

iii. good standing certificates for each Credit Party as of recent date in its state of organization or formation.

  
 - 4 -

 (f) Loan Notice. Receipt by the Administrative Agent of a Loan Notice
requesting the borrowing of the Refinancing Term B Loans on the Second Amendment Effective Date in accordance with the requirements of Section 2.02 of the Credit Agreement, as modified by Section 2.01(d) above. 

(g) Prepayment. The Administrative Agent shall have received a payment in the amount of $125,000,000 to effect the
voluntary prepayment of the Refinancing Term B Loans in accordance with Section 2.06 of the Credit Agreement immediately after giving effect to the Refinancing. The Administrative Agent hereby acknowledges that it has received notice of such
prepayment in accordance with Section 2.20 of the Credit Agreement. 
 Section 5.02 Effects of this Second
Amendment. 
 (a) Except as expressly set forth herein, this Second Amendment shall not by implication or otherwise
limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the existing Credit Agreement or any other Credit Document, and shall not alter, modify, amend or in any way affect
any of the terms, conditions, obligations, covenants or agreements contained in the existing Credit Agreement or any other provision of the existing Credit Agreement or of any other Credit Document, all of which are ratified and affirmed in all
respects and shall continue in full force and effect. Except as expressly set forth herein, nothing herein shall be deemed to be a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Credit Document in similar or different circumstances. 
 (b) From and after the
Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the Credit Agreement in any other
Credit Document shall be deemed a reference to the Credit Agreement as amended hereby. This Second Amendment shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents. 

(c) Each Refinancing Term B Lender shall be a Lender for purposes of the Credit Documents. 

ARTICLE VI 

REAFFIRMATION 
 Section 6.01 Reaffirmation. Notwithstanding the effectiveness of this Second Amendment and the transactions contemplated hereby, (i) each Credit Party acknowledges and agrees that
each Credit Document to which it is a party is hereby confirmed and ratified and shall remain in full force and effect according to its respective terms (in the case of the Credit Agreement, as amended hereby) and (ii) each Guarantor hereby
confirms and ratifies its continuing unconditional obligations as Guarantor under the Credit Agreement with respect to all of the Obligations. 
 ARTICLE VII 
 MISCELLANEOUS 

Section 7.01 Governing Law. THIS SECOND AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR
RELATED TO THIS SECOND AMENDMENT (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN 

  
 - 5 -

 
CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

Section 7.02 Costs and Expenses. The Borrowers agree to reimburse the Administrative Agent for its actual and reasonable
costs and expenses in connection with this Second Amendment to the extent required pursuant to Section 11.04 of the Credit Agreement. 
 Section 7.03 Counterparts; Effectiveness. This Second Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all
of which together shall constitute one and the same instrument. Delivery by facsimile or other electronic imaging means of an executed counterpart of a signature page to this Second Amendment shall be effective as delivery of an original executed
counterpart of this Second Amendment. 
 Section 7.04 Headings. Section headings herein are included herein for
convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect. 

Section 7.05 Notes. Each Existing Term B Lender covenants and agrees to return to the Lead Borrower its Term B Note, if any,
evidencing its Existing Term B Loans, which Existing Term B Loans have been paid and satisfied in full in accordance with the provisions hereof, within 5 business days after the Second Amendment Effective Date (or such later date as agreed to by the
Lead Borrower) and acknowledges and agrees that such Term B Notes are cancelled as of the Second Amendment Effective Date after the making of the Refinancing Term B Loans on such date. 

[Signature Pages Follow] 

  
 - 6 -

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed
and delivered by their respective officers thereunto duly authorized as of the date first written above. 
 [The remainder of
this page intentionally left blank]. 

  
 S-1

			
	
	TEMPUR-PEDIC INTERNATIONAL INC.,
a Delaware corporation
	
	TEMPUR-PEDIC MANAGEMENT, LLC, a Delaware limited liability company
	
	TEMPUR WORLD, LLC, a Delaware limited liability company
	
	TEMPUR PRODUCTION USA, LLC, a Virginia limited liability company
		
	By:	 	 /s/ William H. Poche

	Name:	 	William H. Poche
	Title:	 	Treasurer and Assistant Secretary
	
	TEMPUR-PEDIC MANUFACTURING, INC., a Delaware corporation
	
	DAWN SLEEP TECHNOLOGIES, INC., a Delaware corporation
	
	TEMPUR-PEDIC SALES, INC., a Delaware corporation
	
	TEMPUR-PEDIC NORTH AMERICA, LLC, a Delaware limited liability company
	
	TEMPUR-PEDIC TECHNOLOGIES, INC., a Delaware corporation
		
	By:	 	 /s/ William H. Poche

	Name:	 	William H. Poche
	Title:	 	Treasurer and Secretary
	
	TEMPUR-PEDIC AMERICA, LLC, a Delaware limited liability company
		
	By:	 	 /s/ William H. Poche

	Name:	 	William H. Poche
	Title:	 	Treasurer

 [Signature Page to Amendment No. 2 to Credit Agreement] 

			
	
	SEALY CORPORATION, a Delaware corporation
	
	SEALY MATTRESS CORPORATION, a Delaware corporation
	
	SEALY MATTRESS COMPANY, an Ohio corporation
	
	OHIO-SEALY MATTRESS MANUFACTURING CO. INC., a Massachusetts corporation
	
	OHIO-SEALY MATTRESS MANUFACTURING CO., a Georgia corporation
	
	SEALY MATTRESS COMPANY OF KANSAS CITY, INC., a Missouri corporation
	
	SEALY MATTRESS COMPANY OF ILLINOIS, an Illinois corporation
	
	A. BRANDWEIN & CO., an Illinois corporation
	
	SEALY MATTRESS COMPANY OF ALBANY, INC., a New York corporation
	
	SEALY OF MARYLAND AND VIRGINIA, INC., a Maryland corporation
	
	SEALY OF MINNESOTA, INC., a Minnesota corporation
	
	NORTH AMERICAN BEDDING COMPANY, an Ohio corporation
	
	SEALY, INC., an Ohio corporation
	
	THE OHIO MATTRESS COMPANY LICENSING AND COMPONENTS GROUP, a Delaware corporation
	
	SEALY MATTRESS MANUFACTURING COMPANY, INC., a Delaware corporation
	
	SEALY TECHNOLOGY LLC, a North Carolina limited liability company
		
	By:	 	 /s/ Dale E. Williams

	Name:	 	Dale E. Williams
	Title:	 	Executive Vice President and Chief Financial Officer

 [Signature Page to Amendment No. 2 to Credit Agreement] 

			
	
	SEALY-KOREA, INC., a Delaware corporation
	
	MATTRESS HOLDINGS INTERNATIONAL, LLC, a Delaware limited liability company
	
	SEALY REAL ESTATE, INC., a North Carolina corporation
	
	SEALY MATTRESS COMPANY OF PUERTO RICO, an Ohio corporation
	
	SEALY TEXAS MANAGEMENT, INC., a Texas corporation
	
	WESTERN MATTRESS COMPANY, a California corporation
	
	SEALY MATTRESS COMPANY OF MEMPHIS, a Tennessee corporation
	
	SEALY MATTRESS CO. OF S.W. VIRGINIA, a Virginia corporation
	
	ADVANCED SLEEP PRODUCTS, a California corporation
	
	SEALY COMPONENTS-PADS, INC., a Delaware corporation
	
	SEALY MATTRESS COMPANY OF MICHIGAN, INC., a Michigan corporation
		
	By:	 	 /s/ Dale E. Williams

	Name:	 	Dale E. Williams
	Title:	 	 Executive Vice President and Chief
 Financial Officer

 [Signature Page to Amendment No. 2 to Credit Agreement] 

							
		 		 	 BANK OF AMERICA, N.A., as Administrative Agent

				
		 		 	By:	 	 /s/ Laura Call

		 		 		 	Name: Laura Call
		 		 		 	Title: Assistant Vice President

 [Signature Page to Second Amendment] 

							
		 		 	 BANK OF AMERICA, N.A., as Refinancing Term B Lender

				
		 		 	By:	 	 /s/ Caroline Kim

		 		 		 	Name: Caroline Kim
		 		 		 	Title: Director

 [Signature Page to Second Amendment] 

							
		 		 	 BANK OF AMERICA, N.A., as Lender

				
		 		 	By:	 	 /s/ Thomas C. Kilcrease, Jr.

		 		 		 	Name: Thomas C. Kilcrease, Jr.
		 		 		 	Title: SVP

 [Signature Page to Second Amendment] 

 
			
	 BARCLAYS BANK PLC
as a Lender

		
	By:	 	 /s/ Ronnie Glenn

		 	Name: Ronnie Glenn
		 	Title: Vice President

 [Signature Page to Second Amendment] 

 

 
			
	 JPMORGAN CHASE BANK, N.A.
as a Lender

		
	By:	 	 /s/ Anthony A. Eastman

		 	Name: Anthony A. Eastman
		 	Title:   VP

 [Signature Page to Second Amendment] 

  
 S-1

 
			
	 WELLS FARGO BANK, N.A.
as a Lender

		
	By:	 	 /s/ Bryan Hulker

		 	Name: Bryan Hulker
		 	Title:   SVP

 [Signature Page to Second Amendment] 

 

 
			
	 FIFTH THIRD BANK,
as a Lender

		
	By:	 	 /s/ Mary-Alicha Weldon

		 	Name: Mary-Alicha Weldon
		 	Title:   Vice President

 [Signature Page to Second Amendment] 

 CONSENT TO AMENDMENT NO. 2 

CONSENT (this “Consent”) to AMENDMENT NO. 2 (this “Second Amendment”) to the Credit Agreement dated as
of December 12, 2012 (as amended by Amendment No. 1 to the Credit Agreement dated as of March 13, 2013, the “Credit Agreement”), among TEMPUR-PEDIC INTERNATIONAL INC. (the “Parent”), TEMPUR-PEDIC
MANAGEMENT, LLC (the “Lead Borrower”), TEMPUR-PEDIC NORTH AMERICA, LLC and TEMPUR PRODUCTION USA, LLC, each as a Borrower, the Guarantors identified therein, each lender from time to time party thereto (collectively, the
“Lenders” and individually, a “Lender”) and BANK OF AMERICA, N.A., as Administrative Agent, Swingline Lender and L/C Issuer. Capitalized terms used in this Consent but not defined in this Consent have the meanings
assigned to such terms in the Second Amendment. 
 Existing Term B Lenders. The undersigned Existing Term B Lender hereby irrevocably and
unconditionally approves the Second Amendment and consents: 
 Cashless Settlement Option 

 ̈ to convert 100% of the outstanding principal amount of the Existing Term B Loans under the Credit
Agreement held by such Lender (or such lesser amount allocated to such Lender by the Administrative Agent) into Refinancing Term B Loans under the Amended Credit Agreement in a like principal amount. In the event a lesser amount is allocated, the
difference between the current amount and the allocated amount will be repaid on the Second Amendment Effective Date. 
 IN
WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer as of the date first written above. 

 

					
	 [on file with Administrative Agent]

	 as a Lender (type name of the legal entity)

			
		 	 By:
	 	  

		 	Name:	 	
		 	Title:	 	
		
		 	If a second signature is necessary:
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

 Amount of outstanding Existing Term B Loans:
                     

  
 S-1

 Schedule 1 
 Refinancing Term Loan B Commitments 
  

					
	Refinancing Term B Lender	  	Refinancing Term
Commitment	 
		
	 Bank of America, N.A.
	  	$	867,825,000.00	  

  
 S-2

 Exhibit A 
 [Amendments to Credit Agreement attached] 

  
 S-3

 Term A Lender’s Term A Commitment at such time and (ii) thereafter, the principal amount of such
Term A Lender’s Term A Loans at such time, (b) in respect of the Term B Facility, with respect to any Term B Lender at any time, the percentage (carried out to the ninth decimal place) of the Term B Facility represented by (i) on or
prior to the Closing Date, such Term B Lender’s Term B Commitment at such time and (ii) thereafter, the principal amount of such Term B Lender’s Term B Loans at such time and (c) in respect of the Revolving Credit Facility, with
respect to any Revolving Credit Lender at any time, the percentage (carried out to the ninth decimal place) of the Revolving Credit Facility represented by such Revolving Credit Lender’s Revolving Credit Commitment at such time. If the
Revolving Credit Commitments have been terminated pursuant to Section 9.02 or have expired, then the Aggregate Commitment Percentage of each Revolving Credit Lender in respect of the Revolving Credit Facility shall be determined based on the
Aggregate Commitment Percentage of such Revolving Credit Lender in respect of the Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments. The initial Aggregate Commitment Percentage of each
Lender, as of the Closing Date, in respect of each Facility is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such
Lender becomes a party hereto, as applicable. The Aggregate Commitment Percentage of each Term B Lender, as of the Second Amendment Effective Date, in respect of the Term B Facility is set
forth opposite the name of such Term B Lender on Schedule 1 to the Second Amendment. 
 “Aggregate
Commitments” means the Commitments of all Lenders. 
 “Aggregate Incremental Amount” means, at any
time, the sum of the aggregate principal amount of (a) Incremental Loans incurred at or prior to such time (assuming all Incremental Commitments established at or prior to such time are fully drawn) and (b) Permitted Incremental Equivalent
Debt incurred at or prior to such time. 
 “Aggregate Revolving Credit Commitments” means the Revolving Credit
Commitments of all Revolving Credit Lenders. 
 “Aggregate Revolving Credit Committed Amount” has the meaning
provided in Section 2.01(c). 
 “Agreement” has the meaning provided in the recitals hereto. 

“Albuquerque Bond Indenture” means that certain Trust Indenture, as amended and modified, among Bernalillo County, New
Mexico, as issuer, and The Bank of New York Trust Company, N.A., as trustee, pursuant to which the Albuquerque Bonds may be issued. 
 “Albuquerque Bonds” means the Bernalillo County, New Mexico Taxable Fixed Rate Unsecured Industrial Revenue Bonds (Tempur Production USA, Inc. Project), Series 2005B, in the aggregate
principal amount of up to $25,000,000 under the Albuquerque Bond Indenture, and sometimes referred to in the Albuquerque Bond Indenture as the “Self-Funded Bonds” representing the Parent’s “equity” in the Albuquerque
Project. 
 “Albuquerque Facility” means the real property and fixtures at the building leased by the Credit
Parties located at 12907 Tempur-Pedic Parkway, Albuquerque, New Mexico. 

  
 4 

 “Albuquerque IRB Financing” means the financing for the Albuquerque
Project, including the Albuquerque Bonds, the Albuquerque Bond Indenture and the other bond documents referenced therein and relating thereto. 
 “Albuquerque Project” has the meaning given the term “Project” in the Albuquerque Bond Indenture. 
 “All-in Yield” means, as to any Indebtedness, the effective interest rate with respect thereto as reasonably determined by the Administrative Agent in consultation with the Parent taking
into account the interest rate, margin, original issue discount, upfront fees and “eurodollar rate floors” or “base rate floors”; provided that (i) original issue discount and upfront fees shall be equated to interest
rate assuming a four-year life to maturity of such Indebtedness, (ii) customary arrangement, structuring, underwriting, amendment or commitment fees paid solely to the applicable arrangers or agents with respect to such Indebtedness shall be
excluded and (iii) for the purpose of Section 2.18, if the “eurodollar rate floor” or “base rate floor” for the Incremental Term Loans exceeds 100 basis points or 200 basis points, respectively, such excess shall be
equated to an increase in the Applicable Percentage for the purpose of this definition. 
 “Applicable
Percentage” means (a) in respect of the Term A Facility and the Revolving Credit Facility, the following percentages per annum, based on the Consolidated Total Net Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 7.02(a); provided that from the Closing Date until the receipt by the Administrative Agent of the Compliance Certificate with respect to the first full fiscal quarter
of the Parent following the Closing Date, Pricing Level III shall apply to the Term A Loans, the Revolving Credit Loans, the Letter of Credit Fee and the Commitment Fee: 

 

																			
	 	  	 	  	Applicable Percentage for	 	 	 	 	 	 	 
	 Pricing
Level
	  	 Consolidated Total Net Leverage Ratio
	  	Eurocurrency
Rate Loans	 	 	Base Rate
Loans	 	 	Letter of
Credit Fee	 	 	Commitment
Fee	 
	I	  	 Less than or equal to 3.50:1.00
	  	 	2.50	% 	 	 	1.50	% 	 	 	2.50	% 	 	 	0.375	% 
	II	  	 Greater than 3.50:1.00 but less than or equal to 4.00:1.00
	  	 	2.75	% 	 	 	1.75	% 	 	 	2.75	% 	 	 	0.500	% 
	III	  	 Greater than 4.00:1.00 but less than or equal to 4.50:1.00
	  	 	3.00	% 	 	 	2.00	% 	 	 	3.00	% 	 	 	0.500	% 
	IV	  	 Greater than 4.50:1.00
	  	 	3.25	% 	 	 	2.25	% 	 	 	3.25	% 	 	 	0.500	% 

 ; and (b) in respect of the Term B Facility,
3.001.75% per annum for Base Rate Loans and 4.002.75% per annum for
Eurocurrency Rate Loans. 
 Any increase or decrease in the Applicable Percentage resulting from a change in the
Consolidated Total Net Leverage Ratio shall become effective on the date a Compliance Certificate is delivered pursuant to Section 7.02(a); provided, however, that if a Compliance Certificate is not
delivered when due in accordance therewith, then Pricing Level IV shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered until the first Business Day after the date on which
such 

  
 5 

 “Auction Procedures” means the Dutch Auction Procedures set forth on
Exhibit 11.06(i). 
 “Available ECF Amount” means, on any date, an amount determined on a cumulative basis
equal to Excess Cash Flow for each year, commencing with the fiscal year ending December 31, 2013 and ending with the fiscal year of the Parent most recently ended prior to such date for which financial statements and a Compliance Certificate
have been delivered pursuant to Section 7.01(a) and Section 7.02(a) to the extent Not Otherwise Applied. 

“Bank of America” means Bank of America, N.A., together with its successors. 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate
plus one-half of one percent (0.5%), (b) the Prime Rate and (c) except during a Eurocurrency Unavailability Period, the Eurocurrency Rate plus one percent (1.00%); provided that, with respect to the Term B Loans, the
Base Rate shall not be less than 2.001.75% per annum. 
 “Base Rate Loan” means a Revolving Credit Loan, a Term A Loan or a Term B Loan that bears interest based on the Base Rate. 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except
that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such
“person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence from time to time of a subsequent condition. The terms
“Beneficially Owns” and “Beneficially Owned” have a corresponding meaning. 

“Borrower” means each of the Parent, each entity listed on Annex A and, solely with respect to the Revolving
Credit Facility, any Designated Borrowers, as the context may require. 
 “Borrowing” means a Revolving
Credit Borrowing, a Swingline Borrowing, a Term A Borrowing or a Term B Borrowing, as the context may require. 

“Bridge Credit Agreement” means the credit agreement (if any) dated as of the Closing Date among the Parent, Bank of
America, as administrative agent, and the lenders party thereto on terms specified in the Commitment Letter and otherwise on terms reasonably satisfactory to the Required Lenders, the proceeds of which are applied to finance a portion of the Sealy
Acquisition and the Refinancing and to pay the Transaction Costs. 
 “Bridge Facility” means the term loan
credit facility under the Bridge Credit Agreement (if any). 
 “Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located or in the State of New York, and, if such day relates to
any interest rate settings as to a Eurocurrency Rate Loan, any fundings, disbursements, settlements and payments in respect of any such Eurocurrency Rate Loan, or 

  
 7 

 
Commitment is a Revolving Credit Commitment, Term A Commitment or Term B Commitment. 
 “Closing Date” means the first date all conditions precedent in Section 5.01 are satisfied or waived in accordance with Section 11.01, which shall occur on or prior to
the Commitment Termination DateMarch 18, 2013. 

“Closing Date Guarantors” means, collectively, the Company and each other Subsidiary of the Parent listed on Annex B.

 “Collateral” means the collateral identified in, and at any time covered by, the Collateral Documents.

 “Collateral Agent” means Bank of America, in its capacity as collateral agent under any of the Credit
Documents, or any successor collateral agent. 
 “Collateral Documents” means the Security Agreement, the
Pledge Agreement, the Intellectual Property Security Agreements, the Intellectual Property Security Agreement Supplements, the Mortgages and any other documents executed and delivered by the Credit Parties in order to grant to the Collateral Agent a
security interest in the Collateral as security for the Obligations. 
 “Commitment” means a Term A
Commitment, a Term B Commitment or a Revolving Credit Commitment, as the context may require. 
 “Commitment
Fee” has the meaning set forth in Section 2.09(a)(i). 
 “Commitment Letter” means the Amended
and Restated Commitment Letter addressed to the Parent dated as of October 23, 2012 from Bank of America, JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Wells Fargo Investment Holdings, LLC and the Arrangers. 

“Commitment Period” means, in respect of the Revolving Credit Facility, the period from and including the Closing Date
to the earlier of (a)(i) in the case of Revolving Credit Loans and Swingline Loans, the Revolving Termination Date or (ii) in the case of the Letters of Credit, the L/C Expiration Date, or (b) the date on which the Revolving Credit
Commitments shall have been terminated as provided herein. 
 “Commitment Termination Date” means the earliest
to occur of (a) September 26, 2013, unless the Closing Date occurs on or prior thereto, (b) the closing of the Sealy Acquisition without the use of the Facilities and the Bridge Facility (if any) and/or the Senior Notes (if any),
(c) the entry into an Alternative Financing (as defined in the Acquisition Agreement), (d) the entry into an Alternative Acquisition Agreement (as defined in the Acquisition Agreement), (e) the termination of the Acquisition
Agreement, (f) the public announcement of the abandonment of the Sealy Acquisition by the Parent or any of its Affiliates in a public statement or filing and (g) with respect to each Facility, termination of the Commitments under such
Facility pursuant to Section 2.07. 
 “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C.
§ 1 et seq.), as amended from time to time, and any successor statute. 

  
 10 

 provisions of Section 2.16 of this Credit Agreement
and, the Joinder Agreements and the Second Amendment. 

“Credit Extension” means each of the following: (a) a Borrowing, (b) the conversion or continuation of a
Borrowing and (c) an L/C Credit Extension. 
 “Credit Parties” means, collectively, the Parent, the other
Borrowers and the Guarantors. 
 “Credit Party Materials” has the meaning provided in Section 7.02.

 “Danish Tax Assessment” means the pending income tax assessment from the Danish Tax Authority and any
related assessment from the Danish Tax Authority for subsequent years and related interest and penalties, as described in the Parent’s Report on Form 10-Q for the quarter ended September 30, 2012. 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting
the rights of creditors generally. 
 “Default” means any event, act or condition that constitutes an Event of
Default or that, with the giving of notice, the passage of time, or both, would constitute an Event of Default. 

“Default Rate” means, 
 (a) in the case of the Letter of Credit Fee, an interest rate equal to the sum of (i) the Applicable Percentage for Revolving Credit Loans that are Base Rate Loans, plus (ii) two percent
(2.0%) per annum; 
 (b) in the case of Eurocurrency Rate Loans under any Facility, an interest rate equal to the sum of
(i) the Eurocurrency Rate therefor, plus (ii) the Applicable Percentage in respect of Eurocurrency Rate Loans under such Facility, plus (iii) two percent (2.0%) per annum; 

(c) in the case of Base Rate Loans under any Facility, an interest rate equal to the sum of (i) the Base Rate, plus
(ii) the Applicable Percentage in respect of Base Rate Loans under such Facility, plus (iii) two percent (2.0%) per annum; and 
 (d) in all other cases, an interest rate equal to the sum of (i) the Base Rate, plus (ii) the Applicable Percentage in respect of Base Rate Loans under the Term B Facility, plus
(iii) two percent (2.0%) per annum. 
 “Defaulting Lender” means any Lender that (a) has failed
to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Parent in writing that such failure is the result of
such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable Default, shall be specifically identified in such writing) has not been satisfied or (ii)

  
 15 

 
interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two London Banking Days prior to the commencement of such Interest Period; and 

(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) LIBOR, at
approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not
available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan
being made or maintained and with a term equal to one month would be offered by Bank of America’s London Branch (or other Bank of America branch or Affiliates) to major banks in the London interbank eurodollar market at their request at the
date and time of determination. 
 “Eurocurrency Rate” means (a) for any Interest Period with respect to
any Eurocurrency Rate Loan, a rate per annum determined by the Administrative Agent to be equal to the quotient obtained by dividing (i) the Eurocurrency Base Rate for such Eurocurrency Rate Loan for such Interest Period by (ii) one
minus the Eurocurrency Reserve Percentage for such Eurocurrency Rate Loan for such Interest Period and (b) for any day with respect to any Base Rate Loan bearing interest at a rate based on the Eurocurrency Rate, a rate per annum
determined by the Administrative Agent to be equal to the quotient obtained by dividing (i) the Eurocurrency Base Rate for such Base Rate Loan for such day by (ii) one minus the Eurocurrency Reserve Percentage for such Base Rate
Loan for such day; provided that, with respect to the Term B Loans, the Eurocurrency Rate shall not be less than 1.000.75% per annum. 

“Eurocurrency Rate Loan” means a Revolving Credit Loan, a Term A Loan or a Term B Loan that bears interest at a rate
based on clause (a) of the definition of “Eurocurrency Base Rate.” 
 “Eurocurrency Reserve
Percentage” means, for any day, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the FRB for
determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Eurocurrency
Rate for each outstanding Eurocurrency Rate Loan and for each outstanding Base Rate Loan bearing interest at a rate based on the Eurocurrency Rate shall be adjusted automatically as of the effective date of any change in the Eurocurrency Reserve
Percentage. 
 “Eurocurrency Unavailability Period” means any period of time during which a notice delivered to
the Parent in accordance with Section 3.03 shall remain in force and effect. 
 “Event of Default” has the
meaning provided in Section 9.01. 
 “Evidence of Flood Insurance” has the meaning provided in the
definition of Real Estate Collateral Requirements. 
 “Excess Cash Flow” means, for any fiscal year of the
Parent, the excess of (a) the sum, without duplication, of (i) Consolidated EBITDA for such fiscal year, (ii) Consolidated 
  

  
 19 

 “Incremental Term Commitment” means the commitment of any Lender,
established pursuant to Section 2.18, to make Incremental Term Loans to the Borrowers. 
 “Incremental Term
Lender” means a Lender with an Incremental Term Commitment or an outstanding Incremental Term Loan. 

“Incremental Term Loans” means additional Term Loans made by one or more Lenders to the Borrowers pursuant to their
Incremental Term Commitments. 
 “Indebtedness” means, as to any Person at a particular time, without
duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP: 
 (a) all
Funded Debt; 
 (b) all contingent obligations under letters of credit (including standby and commercial), bankers’
acceptances and similar instruments (including bank guaranties, surety bonds, comfort letters, keep-well agreements and capital maintenance agreements) to the extent such instruments or agreements support financial, rather than performance,
obligations; 
 (c) net obligations of such Person under any Swap Contract; 

(d) Support Obligations in respect of Indebtedness of another Person; and 

(e) Indebtedness of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer,
and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof. 
 For purposes hereof, the amount of Indebtedness shall be determined (i) based on Swap Termination Value in the case of net obligations under Swap Contracts under clause (c), and (ii) based on
the outstanding principal amount of the Indebtedness that is the subject of the Support Obligations in the case of Support Obligations under clause (d). 
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Indemnitee” has the meaning provided in Section 11.04(b). 

“Information” has the meaning provided in Section 11.07. 

“Initial Term B Loan” means the Term B Loans made on the
Closing Date by the Term B Lenders that are outstanding immediately prior to the effectiveness of the Second Amendment. 

“Intellectual Property Security Agreements” means the Intellectual Property Security Agreements as such term is defined
in the Security Agreement. 
 “Intellectual Property Security Agreement Supplements” means the Intellectual
Property Security Agreement Supplements as such term is defined in the Security Agreement. 

  
 27 

 “Multiemployer Plan” means a multiemployer plan within the meaning of
Section 4001(a)(3) of ERISA and subject to ERISA, to which a Credit Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding six plan years, has made or been obligated to make contributions. 

“Net Cash Proceeds” means (a) with respect to any Disposition or Involuntary Disposition, the aggregate proceeds
paid in cash or Cash Equivalents received by the Parent or any Subsidiary in connection with any Disposition or Involuntary Disposition, net of (i) direct costs (including legal, accounting and investment banking fees, sales commissions and
underwriting discounts), (ii) estimated taxes paid or payable as a result thereof, and (iii) amounts required to be applied to the repayment of Indebtedness (other than the Indebtedness hereunder, Permitted Incremental Equivalent Debt and
Permitted External Refinancing Debt) secured by a Lien on the asset or assets the subject of such Disposition or Involuntary Disposition (or, in the case of Net Cash Proceeds of any Foreign Disposition, amounts applied during such period to the
permanent repayment of any Indebtedness of the Foreign Subsidiaries to the extent required by the terms of such Indebtedness); and (b) with respect to any incurrence or issuance of Indebtedness, the aggregate principal amount actually received
in cash by the Parent or any Subsidiary in connection therewith, net of (x) direct costs (including legal, accounting and investment banking fees, sales commissions and underwriting discounts) and (y) the principal amount of the Bridge
Facility (if any) prepaid with the proceeds thereof. For purposes hereof, “Net Cash Proceeds” includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by the Parent or any Subsidiary in any
Disposition or Involuntary Disposition. 
 “New Term B
Loans” means the advances made by the Term B Lenders under the Term B Facility pursuant to the Second Amendment. 

“NFIP” has the meaning provided in the definition of Real Estate Collateral Requirements. 

“Non-Consenting Lender” has the meaning provided in Section 11.13. 

“Non-Guarantor Domestic Subsidiary” has the meaning provided in Section 7.12(a). 

“Not Otherwise Applied” means, with reference to any proceeds of any transaction or event or of Excess Cash Flow or the
Available ECF Amount that is proposed to be applied to a particular use or transaction, that such amount (a) was not required to prepay Term Loans pursuant to Section 2.06(b)(ii)(C) (other than as a result of clause (iii) thereof or
Section 2.06(b)(ii)(F)) and (b) has not previously been (and is not simultaneously being) applied to anything other than such particular use or transaction (including, without limitation, Investments permitted under Section 8.02(m),
Restricted Payments permitted under Section 8.06(d) and prepayments of Junior Financing under Section 8.12(a)). 

“Notes” means the Term A Notes, the Term B Notes, the Revolving Credit Notes and the Swingline Notes. 

“Obligations” means, without duplication, (a) all advances to, and debts, liabilities, obligations, covenants and
duties of, any Credit Party arising under any Credit Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing
or 

  
 31 

 
thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred. 

“Sealy Acquisition” has the meaning provided in the recitals hereto. 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal
functions. 
 “Second Amendment” means Amendment
No. 2 to this Credit Agreement, dated as of May 16, 2013, among the Borrowers, the other Credit Parties, Bank of America, as administrative agent, and the other lenders party thereto. 

“Second Amendment Effective Date” means the date on which
the Second Amendment becomes effective in accordance with its terms. 
 “Securities Act” means the
Securities Act of 1933, as amended. 
 “Securitization Transaction” means any financing or factoring or similar
transaction (or series of such transactions) entered by the Parent or any Subsidiary pursuant to which the Parent or any Subsidiary may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to
future lease payments or residuals or similar rights to payment to a special purpose subsidiary or affiliate or any other Person. 
 “Security Agreement” means, collectively, (a) the security agreement dated as of the Closing Date given by the Credit Parties party thereto, as grantors, to the Collateral Agent to
secure the Obligations substantially in the form of Exhibit 1.01-3 and (b) any other security agreement in favor of the Collateral Agent to secure all or some portion of the Obligations that may be given by any Person pursuant to the terms
hereof. 
 “Senior Notes” means the notes outstanding under an indenture to be entered into after the
date hereofEffective Date among the Parent, as issuer, the Subsidiaries party thereto and the trustee thereunder on terms reasonably satisfactory to the Administrative
Agent, the proceeds of which are applied to finance a portion of the Sealy Acquisition and the Refinancing and to pay the Transaction Costs. 
 “Senior Representative” means, with respect to any Indebtedness, the trustee, administrative agent, collateral agent, security agent or similar agent under the indenture or other
agreement pursuant to which such Indebtedness is issued, incurred or otherwise obtained, as the case may be, and each of their successors in such capacities. 
 “Solvency Certificate” means a Solvency Certificate substantially in the form of Exhibit 5.01(j). 
 “Solvent” means with respect to the Parent and its Subsidiaries that (a) after giving effect to the incurrence of the initial Credit Extension under this Credit Agreement on the
Closing Date and the consummation of the Sealy Acquisition on the Closing Date both (i) the fair value of the assets of the Parent and its Subsidiaries, taken as a whole, is not less than the amount that will be required to pay the total
liability on existing debts of the Parent and its Subsidiaries, taken as a whole, as they become absolute and matured and (ii) the present fair salable value of the assets of the Parent and its Subsidiaries, taken as a whole, is not less than

  
 42 

 “Term A Loan” means an advance made by any Term A Lender under the Term A
Facility. 
 “Term A Note” means a promissory note made by the Borrowers in favor of a Term A Lender evidencing
Term A Loans made by such Term A Lender, substantially in the form of Exhibit 2.13-3. 
 “Term A/Revolving Ticking Fee
Percentage” means (a) from and including the Effective Date to but excluding December 27, 2012, 0% and (b) from and including December 27, 2012, 0.50%. 

“Term B Borrowing” means a borrowing consisting of simultaneous Term B Loans of the same Type and, in the case of
Eurocurrency Rate Loans, having the same Interest Period made by each of the Term B Lenders pursuant to Section 2.01(b). 

“Term B Commitment” means, for each Term B Lender, the commitment of such Term B Lender to make Term B Loans pursuant to
Section 2.01(b), in an aggregate principal amount at any one time outstanding not to exceed (x) with respect to the Initial Term B Loans, the amount set forth opposite such
Term B Lender’s name on schedule 2.01 under the caption “Term B Commitment” or (y) with respect to the New Term B Loans, the amount set forth opposite such Term
B Lender’s name on Schedule 2.01 under the caption “Term B Commitment” or 1 to the Second Amendment, or, in either case, opposite such caption in the
Assignment and Assumption pursuant to which such Term B Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with the terms of this Credit Agreement. 

“Term B Facility” means (a) at any time on or prior to the Closing Date, the aggregate principal amount of Term B
Commitments of all Term B Lenders at such time and (b) at any time after the Closing Date, the aggregate principal amount of the Term B Loans of all Term B Lenders outstanding at such time. 

“Term B Lender” means (a) at any time on or prior to the Closing Date, any Lender that has a Term B Commitment at
such time and (b) at any time after the Closing Date, any Lender that holds Term B Loans at such time. 
 “Term B
Loan” means an advance made by any Term B Lender under the(a) at any time prior to the Second Amendment Effective Date, the Initial Term B Loans and (b) on
and after the Second Amendment Effective Date, the New Term B FacilityLoans. 
 “Term B Note” means a promissory note made by the Borrowers in favor of a Term B Lender, evidencing Term B Loans made by such Term B Lender, substantially in the form of Exhibit 2.13-4.

 “Term B Ticking Fee Percentage” means (a) from and including the Effective Date to but excluding
December 27, 2012, 0%, (b) from and including December 27, 2012 to but excluding April 27, 2013, 2.00% and (c) from and including April 27, 2013, 4.00%. 

“Term Borrowing” means a Term A Borrowing and/or a Term B Borrowing, as the context may require. 

  
 46 

 (b) Initial Term B
Loans. 

(i) Each Term B Lender severally agrees
to make a single loan to the Borrowers in Dollars on the Closing Date in an amount not to exceed such Term B Lender’s Term B Commitment. The Term B Borrowing shall consist of
Initial Term B Loans made simultaneously by the Term B Lenders in accordance with their respective Aggregate Commitment Percentages of the Term B Facility. Amounts borrowed under this
Section 2.01(b)(i) and repaid or prepaid may not be reborrowed. Initial Term B Loans may be Base Rate Loans or
Eurocurrency Rate Loans as further provided herein. The Initial Term B Loans will be prepaid in full with the proceeds of the New Term B Loans on the Second Amendment Effective Date.

 (ii)
New Term B Loans. Subject also to the terms and conditions set forth in the Second Amendment, each Term B Lender severally agrees to make a single loan to the Borrowers in Dollars on
the Second Amendment Effective Date, in an amount not to exceed such Term B Lender’s Term B Commitment. The Term B Borrowing shall consist of New Term B Loans made simultaneously by the Term B Lenders in accordance with their respective
Aggregate Commitment Percentages of the Term B Facility. Amounts borrowed under this Section 2.01(b)(ii) and repaid or prepaid may not be reborrowed. New Term B Loans may be Base Rate Loans or Eurocurrency Rate Loans as further provided
herein. 
 (c) Revolving Credit Loans. During the Commitment Period, each Revolving Credit Lender severally agrees to
make revolving credit loans (the “Revolving Credit Loans”) to the Borrowers in Dollars, from time to time, on any Business Day; provided that after giving effect to any such Revolving Credit Loan, (i) with regard to the
Revolving Credit Lenders collectively, the Outstanding Amount of Revolving Credit Obligations shall not exceed THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000) (as such amount may be increased or decreased in accordance with the provisions hereof,
the “Aggregate Revolving Credit Committed Amount”) and (ii) with regard to each Revolving Credit Lender individually, such Revolving Credit Lender’s Aggregate Commitment Percentage of the Outstanding Amount of Revolving
Obligations shall not exceed its Revolving Credit Commitment; provided further that, on the Closing Date, not more than $150,000,000 may be borrowed, of which not more than $140,000,000 may be applied to finance the Sealy Acquisition and the
Refinancing and to pay the Transaction Costs. Revolving Credit Loans may consist of Base Rate Loans, Eurocurrency Rate Loans, or a combination thereof, as the Lead Borrower may request, and may be repaid and reborrowed in accordance with the
provisions hereof. 
 (d) Letters of Credit. During the Commitment Period, (i) the L/C Issuer, in reliance upon the
commitments of the Revolving Credit Lenders set forth herein, agrees (A) to issue Letters of Credit denominated in Dollars for the account of the Parent or any other Credit Party on any Business Day, (B) to amend or extend Letters of
Credit previously issued hereunder, and (C) to honor drawings under Letters of Credit; and (ii) the Revolving Credit Lenders severally agree to purchase from the L/C Issuer a participation interest in the Existing Letters of Credit and
Letters of Credit issued hereunder in an amount equal to such Revolving Credit Lender’s Aggregate Commitment Percentage thereof; provided that (A) the Outstanding Amount of L/C Obligations shall not exceed ONE HUNDRED MILLION
DOLLARS ($100,000,000) (as such amount may be decreased in accordance with the provisions hereof, the “L/C Sublimit”) and (B) the Outstanding Amount of Revolving Obligations shall not 

  
 51 

					
	 Date
	  	Amount	 
	
1st fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
2nd fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
3rd fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
4th fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
5th fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
6th fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
7th fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
8th fiscal quarter-end following the Closing Date
	  	$	6,875,000	  
	
9th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
10th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
11th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
12th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
13th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
14th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
15th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
16th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
17th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
18th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
19th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	
20th fiscal quarter-end following the Closing Date
	  	$	13,750,000	  
	 Term A Loan Maturity Date
	  	$
  
 
 
	330,000,000
 or such lesser
aggregate
principal amount of Term A
Loans then outstanding
	  

  
  
  

 provided that (x) the final principal repayment installment of the Term A Loans shall be repaid on the
Maturity Date in respect of the Term A Facility and in any event shall be in an amount equal to the aggregate principal amount of all Term A Loans outstanding on such date and (y) in the event and on each occasion that the Term A Commitment
shall be reduced or shall expire or terminate other than as a result of making the Term A Loans, the installments payable on each of the foregoing dates shall be reduced pro rata by an aggregate principal repayment amount equal to the amount of such
reduction, expiration or termination. 
 (b) Term B Loans. The Borrowers shall repay to the Term B Lenders the aggregate principal amount
of all Term B Loans outstanding on the last Business Day of each fiscal quarter following the Closing DateSecond Amendment Effective Date, after giving effect to any
voluntary prepayment of Term B Loans on the Second Amendment Effective Date, in the amount of $2,175,0001,857,062.50 (which amounts shall be reduced on a
dollar-for-dollar basis as a result of the application of prepayments of Term B Loans in accordance with Section 2.06); provided that (x) the final principal repayment installment of the Term B Loans shall be in the amount of
$809,100,000692,684,312.50 (or such lesser aggregate principal amount of Term B Loans then outstanding) and repaid on the Maturity Date in respect of the Term B
Facility and in any event shall be in an amount equal to the aggregate principal amount of all Term B Loans outstanding on such date and (y) in the event and on each 

  
 65 

 All prepayments under Section 2.06(b) shall be subject to Section 2.06(d) and Section 3.05,
but otherwise without premium or penalty, and shall be accompanied by interest on the principal amount prepaid through the date of prepayment. 
 (d) Term B Loan Repayment Premium. In the event that all or any portion of the Term B Facility is (i) repaid, prepaid, refinanced or replaced (including, without limitation, with Credit
Agreement Refinancing Facilities or Permitted External Refinancing Debt) or (ii) repriced or effectively refinanced through any waiver, consent, amendment or amendment and restatement (including, without limitation, an Additional Credit
Extension Amendment) in each case, in connection with any waiver, consent, amendment or amendment and restatement to the Term B Facility directed at, or the result of which would be, the lowering of the All-in Yield of the Term B Facility or the
incurrence of any Indebtedness having an All-in Yield that is less than the All-in Yield of the Term B Facility (or portion thereof) so repaid, prepaid, refinanced, replaced or repriced (a “Repricing Transaction”) occurring on or
prior to the first anniversary of the ClosingSecond Amendment Effective Date, the Borrowers shall pay a prepayment premium equal to 1.00% of the principal amount of the
Term B Loans so repaid, prepaid, refinanced, replaced or repriced. If all or any portion of the Term B Facility held by any Term B Lender is subject to mandatory assignment pursuant to Section 11.13 as a result of, or in connection with, such
Term B Lender not agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (ii) above (or otherwise in connection with a Repricing Transaction) on or prior to the first anniversary of the
ClosingSecond Amendment Effective Date, the Borrowers shall pay a prepayment premium equal to 1.00% of the principal amount of the Term B Loans so repaid, prepaid,
refinanced or replaced. 
 Section 2.07. Termination or Reduction of Commitments.  

(a) Voluntary Reductions of Revolving Credit Commitments. The Aggregate Revolving Credit Commitments hereunder may be permanently
reduced in whole or in part by notice from the Parent to the Administrative Agent; provided that (i) any such notice thereof must be received by 11:00 a.m. at least five Business Days prior to the date of reduction or termination and any
such prepayment shall be in a minimum principal amount of $10,000,000 and integral multiples of $1,000,000 in excess thereof; (ii) none of the Aggregate Revolving Credit Commitments may be reduced to an amount less than the Revolving Credit
Obligations then outstanding thereunder and (iii) if, after giving effect to any reduction of any of the Aggregate Revolving Credit Commitments, the L/C Sublimit or the Swingline Sublimit exceeds the amount of applicable Aggregate Revolving
Credit Commitments, such sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will give prompt notice to the Revolving Credit Lenders of any such reduction in the Aggregate Revolving Credit Commitments.

 (b) Voluntary Reductions of Term Commitments. The aggregate Term Commitments hereunder may be permanently reduced in
whole or in part from and after the Effective Date until the Closing Date by notice from the Parent to the Administrative Agent; provided that any such notice thereof must be received by 11:00 a.m. at least five Business Days prior to the
date of reduction or termination and any such reduction or termination shall be in a minimum principal amount of $10,000,000 and integral multiples of $1,000,000 in excess thereof. The Administrative Agent will give prompt notice to the Appropriate
Lenders of any such reduction in or termination of the aggregate Term Commitments. 

  
 70 

 (c) Mandatory Reductions of Revolving Credit Commitments. The Aggregate Revolving
Credit Committed Amount (i) shall not be permanently reduced upon application of any mandatory prepayments to the Revolving Credit Obligations and (ii) shall, if the Closing Date has not occurred on or prior to such date, be automatically and
permanently reduced to zero on the Commitment Termination Date. 
 (d) Mandatory Reductions of Term Commitments.

 (i) The aggregate Term A Commitments shall be automatically and permanently reduced to zero on the earlier of
(x) the date of the Term A Borrowing and (y) if the Closing Date has not occurred on or prior to such date, the Commitment Termination Date. 
 (ii) The aggregate Term B Commitments with respect to the Initial Term B Loans shall be automatically and permanently reduced to zero on the
earlier of (x) the date of theClosing Date, upon and after giving effect to the funding of the Initial Term B Loans on such date. 

(iii) The aggregate Term B Borrowing and
(y) if the Closing Date has not occurred on or prior toCommitments with respect to the New Term B Loans shall be automatically and permanently reduced to zero on the Second
Amendment Effective Date, upon and after giving effect to the funding of the New Term B Loans on such date, the Commitment Termination Date. 
 (e) Payment of Fees. All Commitment Fees, ticking fees or other fees accrued with respect to such portion of the Aggregate Revolving Credit Commitments or the Term Commitments terminated or reduced
pursuant to Section 2.07 through the effective date of such termination or reduction shall be paid on the effective date of such termination or reduction. 
 Section 2.08. Interest.  
 (a) Subject to the provisions of subsection
(b) below, (i) each Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable
Percentage; (ii) each Loan that is a Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Percentage and
(iii) each Swingline Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Percentage. 

(b) (i) If any amount of principal of any Loan is not paid when due (after giving effect to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such overdue amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Law. 

(ii) If any amount (other than principal of any Loan) payable under any Credit Document is not paid when due (after
giving effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such overdue amount 

  
 71 

 Parent will be responsible for the costs and expenses of the Administrative Agent only for one such visit
and inspection in any fiscal year of Parent. 
 Section 7.11. Use of Proceeds.  

(a) Use (i) the Credit Extensions under the Term Facilities on the Closing Date and (ii) up to $140,000,000 of the Revolving
Credit Loans on the Closing Date to finance a portion of the Sealy Acquisition and the Refinancing and to pay the Transaction Costs. 
 (b) Use Credit Extensions under the Revolving Credit Facility on and after the Closing Date (i) to provide credit support for the Albuquerque IRB Financing and (ii) to finance working capital,
capital expenditures and other general corporate purposes, including Acquisitions and Restricted Payments otherwise permitted hereunder. 
 (c) Use the proceeds of the New Term B Loans made pursuant to the Second
Amendment to prepay in full all Initial Term B Loans on the Second Amendment Effective Date. 
 Section 7.12.
Joinder of Subsidiaries as Guarantors.  
 (a) Obligations. Where any Domestic Subsidiary of the Parent (other than
an Excluded Domestic Subsidiary) that is not a Guarantor hereunder (a “Non-Guarantor Domestic Subsidiary”) shall at any time: 
 (i) represent more than 3% of the consolidated assets or account for more than 3% of consolidated revenues for the Parent and its Subsidiaries, 

(ii) together with all other such Non-Guarantor Domestic Subsidiaries as a group, represent more than 10% of the consolidated assets or
account for more than 10% of the consolidated revenues for the Parent and its Subsidiaries, or 
 (iii) guarantee the obligations
under the Senior Notes (if any) or the Bridge Facility (if any), 
 then, in any such instance, the Parent will promptly, but in any event
within 30 days of making such determination, cause the joinder of Non-Guarantor Domestic Subsidiaries as Guarantors hereunder pursuant to Joinder Agreements (or such other documentation reasonably acceptable to the Administrative Agent) accompanied
by Organization Documents and favorable opinions of counsel to each such Domestic Subsidiary, all in form and substance reasonably satisfactory to the Administrative Agent, such that after giving effect thereto the Non-Guarantor Domestic
Subsidiaries will not, individually or as a group, exceed the foregoing threshold requirements. 
 (b) Guaranties and Support
Obligations in Respect of other Funded Debt. The Parent will not permit any of its Domestic Subsidiaries to give a guaranty or other Support Obligation in respect of Funded Debt, unless (i) the guaranty or other Support Obligation is
otherwise permitted hereunder and (ii) such Domestic Subsidiary shall have given a guaranty of the Obligations hereunder on an equal and ratable basis by becoming a Guarantor pursuant to the terms hereof. 

  
 117

 Section 8.02. Investments. Make or permit to exist any Investments, except:

 (a) cash and Cash Equivalents; 
 (b) Investments (including intercompany Investments) existing on the Closing Date or committed to be made pursuant to an agreement existing on the Closing Date, in each case listed on Schedule 8.02;

 (c) (i) to the extent not prohibited by applicable Law, advances to officers, directors and employees of the Parent and its
Subsidiaries in an aggregate amount not to exceed $5,000,000 at any time outstanding, for travel, entertainment, relocation and analogous ordinary business purposes and (ii) loans and advances to officers, directors and employees of the Parent
or any of its Subsidiaries to finance the purchase of capital stock of the Parent in an aggregate amount not to exceed $5,000,000 at any time outstanding; 
 (d) (i) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from (x) the grant of trade credit in the ordinary course of business or
(y) credit extended to customers who are natural persons to finance the purchase of products of the Parent and its Subsidiaries in an aggregate principal amount not to exceed (A) $7,500,000 made in any fiscal year or
(B) $20,000,000 outstanding at any time and (ii) Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to
prevent or limit loss; 
 (e) Investments by the Parent or any Subsidiary in and to the Parent or any other Credit Party;

 (f) Investments by any Credit Party, on the one hand, in and to one or more Subsidiaries that are not Credit Parties, on the
other hand, in aggregate principal amount not to exceed $50,000,000 at any time outstanding; 
 (g) Investments made (i) by
and between Subsidiaries that are not Credit Parties, (ii) by Foreign Subsidiaries in connection with the acquisition of the equity or assets of suppliers, distributors and other Persons (other than the Parent or any of its Subsidiaries)
engaged in a business related to the business conducted by the Parent and its Subsidiaries that will become a Foreign Subsidiary or be owned by a Foreign Subsidiary following such acquisition to the extent that such acquisition is funded with
foreign generated cash flow or Indebtedness of such Foreign Subsidiaries or (iii) otherwise by Foreign Subsidiaries in an aggregate amount not to exceed $5,000,000 at any time outstanding; 

(h) Investments to the extent that payment for such investments is made solely with the Capital Stock of the Parent; 

(i) (x) Permitted Acquisitions and (y) Investments of any Person that becomes a Subsidiary on or after the Closing Date;
provided that (A) such Investments exist at the time such Person becomes a Subsidiary and (B) such Investments are not made in anticipation or contemplation of such Person becoming a Subsidiary; 

(j) Investments in joint ventures in an aggregate amount not to exceed $30,000,000 at any time outstanding; 

  
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