Document:

Severance Agreement with Jeffrey H. Cooper

 Exhibit 10.1 
 SEVERANCE AGREEMENT 
 AND RELEASE OF ALL CLAIMS

  

	1.	This Severance Agreement and Release of All Claims (this “Agreement”) is entered into between BioMarin Pharmaceutical Inc., including its officers,
directors, managers, agents, and representatives (collectively, the “Company”) and Jeffrey H. Cooper (“Employee”). The purpose of this Agreement is to arrange a severance of Employee’s employment with Company
on a basis that is satisfactory both to the Company and to the Employee. 

  

	2.	Employee’s termination date for all purposes will be December 20, 2012 provided that such date may be accelerated to any sooner date that the Employee elects,
so long as he provides at least fourteen (14) days advanced notice (the “Termination Date”). 

  

	3.	Both Employee and Company are entering into this Agreement as a way of concluding the employment relationship between them and of settling voluntarily any dispute or
potential dispute that Employee has or might have with Company as of the date this Agreement is signed. 

  

	4.	Company agrees to continue Employee’s salary, including as adjusted effective March 4, 2012 based on the increase approved by the Company’s Compensation
Committee on December 13, 2011, through the earlier of June 30, 2012 or the Termination Date. Thereafter, Employee will continue to provide services to the Company to assist in the transition of his current responsibilities for a minimum
of twenty (20) hours per week at a salary of Two Thousand Dollars ($2,000) per week through the Termination Date. All appropriate payroll taxes will be deducted therefrom. Notwithstanding the foregoing, the Company may modify Employee’s
title to Special Advisor at any time and for any reason, provided that his title will be changed to Special Advisor no later than June 30, 2012. 

  

	5.	Company agrees to pay to Employee severance pay in the amount of Five Hundred Twenty Six Thousand One Hundred Forty Two Dollars and 50/100 ($526,142.50) (the
“Severance Amount”). This amount will be paid in a lump sum within ten (10) business days of Employee re-executing this Agreement upon the Termination Date. All appropriate payroll taxes will be deducted therefrom.

  

	6.	Company agrees to pay for outplacement services to be provided by Right Management to Employee for six (6) months, to commence on a date of Employee’s
choosing, provided that such start date is not later than January 1, 2013. Company will pay Right Management for these services directly. 

  

	7.	Employee agrees and understands that after June 30, 2012, he will no longer be eligible to participate in the Company’s short or long-term disability plans,
health insurance plans or other company sponsored insurance, except for COBRA coverage, and that after the Termination Date, he will no longer be eligible to participate in the Company’s 401(k) Retirement Savings Plan, Educational Assistance
Plan, Employee Stock Purchase Plan, Long-Term Equity Compensation Plan, or any other employee benefit plans. Notwithstanding the foregoing, Company will pay for Employee’s COBRA coverage for COBRA-eligible health and welfare plans consistent
with what the Employee was enrolled in at February 1, 2012 through December 31, 2012; however, Employee must elect COBRA coverage by completing the COBRA enrollment forms sent by the COBRA Administrator before Company is able to pay
this benefit. 

  
 - 1 -

	8.	Employee agrees that he will submit any business expense reports to the Company within fifteen (15) days after the Termination Date, and the Company agrees to pay
all such properly submitted expense reports subject to Company policy in accordance with its customary procedures. 

  

	9.	Employee agrees that he shall immediately return to the Company all Company property, including but not limited to all computer equipment, mobile devices, keys, key
cards, security badges, passwords, tangible proprietary information, documents, books, records, reports, customer and contact lists, computer files and data (and any copies thereof), which exist in any medium, which were prepared or obtained by
Employee in the course of or incident to his employment. 

  

	10.	Employee warrants and represents that he has not and will not improperly disclose any non-public Company materials, documents, or other confidential information
(“Confidential Information”) to third parties. Employee acknowledges and agrees that violation(s) of the foregoing shall render this Agreement null and void. And, because Company’s damages resulting from any such violation(s)
would be impracticable and extremely difficult to fix in an actual amount, the liquidated amount of damage(s) presumed to be sustained from any such violation will be disgorgement of the entire Severance Amount and $5,000.00 per violation. That sum
is agreed on as compensation for the injury suffered by Company and not as a penalty. Employee further agrees and stipulates that disclosure of Confidential Information will result in irreparable harm to Company for which monetary damages would be
inadequate to compensate, and that any such improper disclosure of Confidential Information will entitle the Company to injunctive relief. 

  

	11.	As consideration for this severance payment, Employee, for Employee and Employee’s spouse, heirs, executors, representative and assigns, forever releases the
Company from any and all claims, actions, and causes of action which Employee has or might have concerning Employee’s employment with Company or the termination of employment, up to the date of the signing of this Agreement, to the fullest
extent such claims are releasable by law. All such claims are forever barred by this Agreement without regard to whether those claims are based upon any alleged breach of contract or covenant of good faith and fair dealing; any alleged employment
discrimination or other unlawful discriminatory acts, including claims under Title VII, the Fair Employment and Housing Act, the Americans with Disabilities Act, the California Labor Code, the Employee Retirement Income Security Act, the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act of 1990, any alleged tortious act resulting in physical injury, emotional distress, or damage to reputation or other damages, or any other claim or cause of action as of the
date of the signing of this Agreement. 

  

	12.	Employee agrees that the foregoing payments shall constitute all money and benefits owed or payable to Employee, including all amounts due under that certain Amended
and Restated Employment Agreement, with an effective date of April 9, 2007, by and between the Company and Employee (the “Employment Agreement”), and that Employee will not seek any further compensation from the Company for any
other claims, damages, costs or attorneys fees. Company and Employee agree that the terms of this Agreement shall supersede and, to the extent necessary to give effect to this Agreement, amend and modify the Employment Agreement.

  
 - 2 -

	13.	The parties acknowledge that California Civil Code Section 1542 provides as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  

	 	Being fully informed of this provision of the Civil Code, Employee and Company waive any rights under that section, and acknowledge that this Agreement extends to all
claims Employee has or might have against Company, whether known or unknown. 

  

	14.	Employee understands that: 

  

	 	14.1.	Employee has twenty one (21) days in which to consider signing this Agreement. Employee agrees that should he decide to sign this Agreement before the one
(21) day review period expires, such decision and waiver of the twenty-one (21) day review period is knowing, voluntary and his alone. 

  

	 	14.2.	Employee should carefully read and fully understand all of the terms of the Agreement; 

 

	 	14.3.	Employee is, through this Agreement, releasing Company from any and all claims Employee may have against it; 

 

	 	14.4.	Employee knowingly and voluntarily agrees to all of the terms set forth in this Agreement; 

 

	 	14.5.	Employee knowingly and voluntarily intends to be legally bound by this Agreement; 

 

	 	14.6.	Employee was advised and hereby is advised in writing to consult with an attorney of Employee’s choice prior to signing this Agreement; and

  

	 	14.7.	Employee has a full seven (7) days following the signing of this Agreement to revoke it and Employee has been, and hereby is, advised in writing that this
Agreement will not become effective or enforceable until that seven (7) day revocation period has expired and Employee has not revoked the Agreement. 

  

	15.	This Agreement is in full satisfaction of disputed claims and by entering into this Agreement, Company is in no way admitting liability of any sort. This Agreement,
therefore, does not constitute an admission of liability of any kind. The Company’s obligations under Section 5 of this Agreement are conditioned on Employee re-executing this Agreement on or within five (5) business days after
the Termination Date. 

  

	16.	Employee agrees that he will not seek reemployment with the Company at any time, nor shall the Company be under any obligation to rehire him. 

 

	17.	Employee will cooperate with requests for information or assistance that the Company may make from time to time up until Employee’s Termination Date.

  
 - 3 -

	18.	Employee agrees that for two (2) years after the Termination Date, Employee will not directly or indirectly solicit, hire or encourage the soliciting or hiring of
any individual employed by the Company or any of its subsidiaries. Employee also agrees that for two (2) years after the Termination Date, Employee will not directly or indirectly induce any individual employed by the Company or any of its
subsidiaries to leave the Company or subsidiary for any reason whatsoever. 

  

	19.	In regard to future employment references, the Company agrees that no one other than the Company’s Human Resources department will release employment information
and said information will only be dates of employment, most recent annual base salary, and job title of Senior Vice President and Chief Financial Officer. Additionally Employee agrees that the Company’s Executive Officers and Directors may
provide a reference, written or oral, with such content as such individual deems appropriate. 

  

	20.	Employee agrees that Employee will not make negative comments, in any media, about the Company’s management or employees, members of its board of directors,
policies, practices, direction, finances, or philosophy. The officers of the Company will not make negative comments about Employee’s performance while he was employed by the Company. 

 

	21.	Company will not contest Employee’s claim for unemployment benefits, however, Company reserves the right to review and correct or confirm Employee’s reason
for termination if necessary or requested by the Employment Development Department. 

  

	22.	Should any provision of this Agreement be determined by any court to be wholly or partially illegal, invalid or unenforceable, the legality, validity and enforceability
of the remaining provisions shall not be affected, and said illegal, unenforceable or invalid provisions shall be deemed not to be a part of this Agreement. 

 

	23.	Employee and Company agree that any prior communications that may have referenced certain notice and termination benefits are superseded by this Agreement, for which
good and valuable consideration has been exchanged. 

  

	24.	Employee and Company agree that this Agreement contains their complete and final agreement and that there are no representations, statements, or agreements that have
not been included within this Agreement. 

  

	25.	Employee and Company acknowledge that in signing this Agreement, they do not rely upon and have not relied upon any representation or statement made by any of the
parties or their agents with respect to the subject matter, basis or effect of this Agreement, other than those specifically stated in this written Agreement. 

 

	26.	This Agreement shall be binding upon Employee and Company, the parties to this Agreement and upon their heirs, administrators, representatives, executors and assigns.
Employee expressly warrants that Employee has not transferred to any person or entity any rights, causes of action or claims released in this Agreement. 

  

	27.	This Agreement shall be interpreted, enforced and governed by the laws of the state of California without regard or giving effect to its conflict of laws principles.
Employee and Company agree that any litigation regarding the application and interpretation or alleged breach of this Agreement shall be brought in the state courts of Marin County, California or in the United States District Court for the Northern
District of California. Employee and Company agree to submit to the exclusive jurisdiction and venue of those courts. 

  
 - 4 -

	28.	This Agreement may be executed in several counterparts, including by facsimile, .pdf file, or photocopied signature, each of which shall be an original, but all of
which together shall constitute one and the same agreement. 

  

	29.	BioMarin is a federal (sub)contractor subject to all provisions of E.O. 11246, Sec. 503 of the Rehabilitation Act, and the Vietnam Era Veterans’ Readjustment Act.

  

							
	JEFFREY H. COOPER	 		 	BIOMARIN PHARMACEUTICAL INC.
			
	/S/ JEFFREY H. COOPER	 		 	/S/ MARK WOOD
		 		 	BY:	 	MARK WOOD
	DATE: FEBRUARY 21, 2012	 		 	ITS:	 	SR. VICE PRESIDENT, HUMAN RESOURCES & CORPORATE
AFFAIRS
			
		 		 	DATE: FEBRUARY 17, 2012

 Employee hereby re-executes and agrees to the terms of this Agreement, including the release of claims as set forth in
Section 11, through the date indicated below. 
 _________________________________ 

_____________________ 

____________________________________________ 

DATE: ______________________________________ 

  
 - 5 -Exhibit 10.24

 Exhibit 10.24 

 
 AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT 
 DATED AS
OF FEBRUARY 21, 2012 
 BY AND BETWEEN

 LUMBER LIQUIDATORS, INC. 

AND 
 BANK OF AMERICA, N.A. 

 TABLE OF CONTENTS

  

							
	 ARTICLE 1
	  	DEFINITIONS AND INTERPRETATION	  	 	1	  
			
	 Section 1.1
	  	Definitions	  	 	1	  
	 Section 1.2
	  	Interpretation	  	 	5	  
			
	 ARTICLE 1A
	  	 REVOLVING CREDIT FACILITY
	  	 	5	  
			
	 Section 1A.1
	  	General Description	  	 	5	  
	 Section 1A.2
	  	Revolving Credit Note	  	 	6	  
	 Section 1A.3
	  	Purpose	  	 	6	  
	 Section 1A.4
	  	Repayment Terms; Interest Rate	  	 	6	  
	 Section 1A.5
	  	Manner of Borrowing	  	 	6	  
	 Section 1A.6
	  	Prepayments	  	 	7	  
	 Section 1A.7
	  	Unused Commitment Fee	  	 	7	  
	 Section 1A.8
	  	Letters of Credit	  	 	7	  
	 Section 1A.9
	  	Facility Reduction	  	 	7	  
	 Section 1A.10
	  	Payments and Computations	  	 	7	  
			
	 ARTICLE 2
	  	CONDITIONS PRECEDENT	  	 	9	  
			
	 Section 2.1
	  	Approval of Bank's Counsel	  	 	9	  
	 Section 2.2
	  	Compliance	  	 	9	  
	 Section 2.3
	  	Revolving Credit Note	  	 	9	  
	 Section 2.4
	  	Security Agreement and Financing Statements	  	 	9	  
	 Section 2.5
	  	Company Organizational Documents; Evidence of Company Action	  	 	10	  
	 Section 2.6
	  	Opinion of Counsel	  	 	10	  
	 Section 2.7
	  	Bank as Principal Depository	  	 	10	  
	 Section 2.8
	  	Payment of Fees	  	 	10	  
	 Section 2.9
	  	Other Conditions	  	 	10	  
			
	 ARTICLE 3
	  	REPRESENTATIONS AND WARRANTIES	  	 	10	  
			
	 Section 3.1
	  	Subsidiaries	  	 	10	  
	 Section 3.2
	  	Organization and Existence	  	 	10	  
	 Section 3.3
	  	Authority	  	 	11	  
	 Section 3.4
	  	Binding Agreements	  	 	11	  
	 Section 3.5
	  	Litigation	  	 	11	  
	 Section 3.6
	  	No Conflicting Agreements	  	 	11	  
	 Section 3.7
	  	Financial Condition	  	 	11	  
	 Section 3.8
	  	Title to Properties	  	 	11	  
	 Section 3.9
	  	Employee Benefit Pension Plans	  	 	12	  
	 Section 3.10
	  	No Defaults	  	 	12	  
	 Section 3.11
	  	Taxes	  	 	12	  
	 Section 3.12
	  	Environmental Compliance	  	 	12	  
	 Section 3.13
	  	Federal Regulations	  	 	12	  
	 Section 3.14
	  	Accuracy of Information	  	 	13	  
	 Section 3.15
	  	Compliance with Laws	  	 	13	  

  
 i 

							
	 ARTICLE 4
	  	AFFIRMATIVE COVENANTS	  	 	13	  
			
	 Section 4.1
	  	Financial Information	  	 	13	  
	 Section 4.2
	  	Bank as Principal Depository	  	 	14	  
	 Section 4.3
	  	Taxes	  	 	14	  
	 Section 4.4
	  	Payment of Obligations	  	 	14	  
	 Section 4.5
	  	Insurance	  	 	14	  
	 Section 4.6
	  	Existence	  	 	15	  
	 Section 4.7
	  	Licenses and Permits	  	 	15	  
	 Section 4.8
	  	Maintenance of Properties	  	 	15	  
	 Section 4.9
	  	Employee Benefit Pension Plans	  	 	15	  
	 Section 4.10
	  	Compliance with Applicable Laws	  	 	15	  
	 Section 4.11
	  	Notice of Liabilities	  	 	15	  
			
	 ARTICLE 4A
	  	FINANCIAL COVENANTS	  	 	16	  
			
	 Section 4A.1
	  	Fixed Charge Coverage Ratio	  	 	16	  
	 Section 4A.2
	  	Adjusted Funded Debt to EBITDAR Ratio	  	 	16	  
			
	 ARTICLE 5
	  	NEGATIVE COVENANTS	  	 	16	  
			
	 Section 5.1
	  	Indebtedness	  	 	16	  
	 Section 5.2
	  	Mortgages and Pledges	  	 	17	  
	 Section 5.3
	  	Merger, Acquisition, or Sale of Assets	  	 	17	  
	 Section 5.4
	  	Contingent Liabilities	  	 	17	  
	 Section 5.5
	  	Loans	  	 	18	  
	 Section 5.6
	  	Character of Business	  	 	18	  
	 Section 5.7
	  	Investments	  	 	18	  
			
	 ARTICLE 6
	  	EVENTS OF DEFAULT AND REMEDIES	  	 	18	  
			
	 Section 6.1
	  	Events of Default	  	 	18	  
	 Section 6.2
	  	 Remedies
	  	 	20	  
			
	 ARTICLE 7
	  	 MISCELLANEOUS PROVISIONS
	  	 	21	  
			
	 Section 7.1
	  	 Indemnification
	  	 	21	  
	 Section 7.2
	  	 Autodebit
	  	 	22	  
	 Section 7.3
	  	 Costs and Expenses
	  	 	22	  
	 Section 7.4
	  	 Cumulative Rights and No Waiver
	  	 	22	  
	 Section 7.5
	  	 ARBITRATION AND WAIVER OF JURY TRIAL
	  	 	22	  
	 Section 7.6
	  	 Notices
	  	 	25	  
	 Section 7.7
	  	 Applicable Law
	  	 	26	  
	 Section 7.8
	  	 Modifications
	  	 	26	  
	 Section 7.9
	  	 Survivorship; Successors and Assigns
	  	 	26	  
	 Section 7.10
	  	 Execution in Counterparts
	  	 	26	  
	 Section 7.11
	  	 Headings
	  	 	26	  
	 Section 7.12
	  	 Entire Agreement; Controlling Document
	  	 	27	  
	 Section 7.13
	  	 USA PATRIOT Act Notice
	  	 	27	  
	 Section 7.14
	  	 Final Agreement
	  	 	27	  

  
 ii 

 AMENDED AND RESTATED REVOLVING
CREDIT AGREEMENT 
 THIS AMENDED
AND RESTATED REVOLVING CREDIT AGREEMENT (this “Agreement”) is dated as of the 21st day of February, 2012, by and between LUMBER
LIQUIDATORS, INC. (the “Company”), a Delaware corporation, with a principal office located at 3000 John Deere Road, Toano, Virginia 23168, and BANK OF
AMERICA, N.A. (the “Bank”), a national banking association, with an office located at 1 Commercial Place, Norfolk, VA 23510-2101. 
 The Company has applied to the Bank for a revolving credit facility in an amount not to exceed $50,000,000, the proceeds of which will be used by the Company for working capital and for other general
corporate purposes. 
 The Bank is willing to make the Revolving Credit Facility (as hereinafter defined) available to the
Company upon the terms and subject to the conditions contained herein. 
 Accordingly, the Company and the Bank agree as
follows: 
 ARTICLE 1  
 DEFINITIONS AND INTERPRETATION 
 Section 1.1 Definitions. As used in this Agreement, the following terms shall have the meanings assigned below: 
 “Adjusted Funded Debt to EBITDAR Ratio” means, with respect to the LL Holdings on a consolidated basis, the ratio of Funded Debt to EBITDAR. 

“Applicable Commitment Fee” shall be determined by reference to the Funded Debt to EBITDA Ratio specified on the
following table: 
  

			
	 Funded Debt to EBITDA Ratio
	  	 Applicable
Commitment Fee

	 Greater than 1.00 to 1.0
	  	0.150%
		
	 Less than or equal to 1.00 to 1, but greater than 0.50 to 1.0
	  	0.125%
		
	 Less than or equal to 0.50 to 1.0
	  	0.100%

 The Applicable Commitment Fee will be automatically adjusted as of the first day of the first month following receipt by
the Bank of the Company’s financial statements pursuant to Section 4.1(a) or Section 4.1(b) demonstrating to the Bank’s reasonable satisfaction that there has been a change in the Funded Debt to EBITDA Ratio which would cause a
change in the Applicable Commitment Fee in accordance with the preceding table. Notwithstanding the foregoing, if the Company delivers financial statements to the Bank five (5) or fewer days before the end of a month, the Applicable Commitment
Fee will be automatically adjusted as of the first day of the 

  
 1 

 
second month following receipt by the Bank of such financial statements. At all times after and during the continuance of an Event of Default with respect to the Company’s obligations under
Section 4.1(a) or Section 4.1(b) until the delivery of the applicable financial statements required pursuant thereto, the Applicable Commitment Fee shall be 0.150%. 
 “Applicable Libor Margin” means shall be determined by reference to the Funded Debt to EBITDA Ratio in accordance with the following table: 

 

			
	 Funded Debt to EBITDA Ratio
	  	 Applicable Libor Margin

	 Greater than 1.00 to 1.0
	  	1.375%
		
	 Less than or equal to 1.00 to 1, but greater than 0.50 to 1.0
	  	1.250%
		
	 Less than or equal to 0.50 to 1.0
	  	1.125%

 The Applicable Libor Margin will be automatically adjusted as of the first day of the first month following receipt by
the Bank of the Company’s financial statements pursuant to Section 4.1(a) or Section 4.1(b) demonstrating to the Bank’s reasonable satisfaction that there has been a change in the Funded Debt to EBITDA Ratio which would cause a
change in the Applicable Libor Margin in accordance with the preceding table. Notwithstanding the foregoing, if the Company delivers financial statements to the Bank five (5) or fewer days before the end of a month, the Applicable Libor Margin
will be automatically adjusted as of the first day of the second month following receipt by the Bank of such financial statements. At all times after and during the continuance of an Event of Default with respect to the Company’s obligations
under Section 4.I(a) or Section 4.1(b) until the delivery of the applicable financial statements required pursuant thereto, the Applicable Libor Margin shall be 1.375%. 

“Basic Fixed Charge Coverage Ratio” means, with respect to the LL Holdings on a consolidated basis, the ratio of
(i) EBITDA plus lease expense and rent expense minus the sum of taxes and dividends, to (b) the sum of interest expense, lease expense, rent expense, the current portion of long-term debt and the current portion of capitalized lease
obligations. The current portion of long-term liabilities will be measured as of the date 12 months prior to the current financial statement. 
 “BBA LIBOR Daily Floating Rate” means a fluctuating rate of interest which can change on each banking day. The rate will be adjusted on each London Banking Day to equal the British
Bankers Association LIBOR Rate for U.S. Dollar deposits for delivery on the date in question for a one month term beginning on that date. The Bank will use the Bankers Association LIBOR Rate as published by Reuters (or other commercially
available source providing quotations of British Banks Association LIBOR Rate as selected by the Bank from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as
adjusted from time to time in the Bank’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs. If such rate is not available at such time for any reason, then the rate will be determined by
such alternate method as reasonably selected by the Bank. 

  
 2 

 “Business Day” means each day other than a Saturday, a Sunday, or any
holiday on which commercial banks in the Commonwealth of Virginia are closed for business. 
 “Change in Law”
means the occurrence, after the date of this Agreement, of the adoption or taking effect of any new or changed law, rule, regulation or treaty, or the issuance of any request, rule, guideline or directive (whether or not having the force of law) by
any governmental authority; provided that (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives issued in connection with that Act, and (y) all requests, rules,
guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each
case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued. 
 “Change of
Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on
the date hereof), of shares representing more than 25% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Company or of LL Holdings; (b) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Company or of LL Holdings by Persons who were not nominated in accordance with the respective Bylaws of Company or LL Holdings; or (c) the acquisition of direct or indirect control of the Company or of LL
Holdings by any Person or group. 
 “Current Audited Financial Statements” means the financial statements of LL
Holdings as of December 31, 2010, heretofore delivered to the Bank. 
 “EBITDA” means net income for such
period less income or plus loss from discontinued operations and extraordinary items plus (a) interest expense for such period, (b) the provision for federal, state, local and foreign income, value-added and similar taxes payable
for such period, (c) the amount of depreciation and amortization expense for such period, and (d) non-cash charges or expenses (excluding write-downs of inventory and accounts receivable and any other non-cash expense to the extent that it
represents an accrual of or reserve for cash expenses in any future period) minus (ii) the following to the extent included in calculating net income; (i) any gain arising from (a) the sale or other disposition of any assets
(other than current assets) to the extent that the aggregate amount of the gain exceeds the aggregate amount of losses from the sale, abandonment or other disposition of assets (other than current assets), (b) any write-up of assets, or
(c) any restoration to income of any contingency reserve, except to the extent provision for such reserve was made out of income accrued during such period; and (ii) any items properly classified as extraordinary in accordance with GAAP.

 “EBITDAR” means EBITDA plus actual rent paid with respect to real property. 

“Excluded Taxes” means, with respect to the Bank, (i) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws 

  
 3 

 
of which it is organized or in which its principal office is located or, and (ii) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction.

 “Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing liabilities,
including current and long-term debt, and all liabilities under guaranties and letters of credit, plus eight (8) times rent expense with respect to real property. 
 “Funded Debt to EBITDA Ratio” means, with respect to LL Holdings on a consolidated basis, the ratio of Funded Debt to EBITDA. 

“Letter of Credit” and “Letters of Credit” have the meanings assigned to such terms in
Section 1A.8. 
 “Letter of Credit Documents” has the meaning assigned to such term in Section 1A.8.

 “Letter of Credit Sublimit” means Ten Million and No/100 Dollars ($10,000,000). 

“LL Holdings” means Lumber Liquidators Holdings, Inc., a Delaware corporation. 

“Loan Documents” has the meaning assigned to such term in Section 2.2(a). 

“London Banking Day” means a day on which banks in London are open for business and dealing in offshore dollars.

 “Person” means and includes any individual, corporation, partnership, joint venture, limited liability
company or partnership, trust, unincorporated association, governmental authority or any other organization or entity. 

“Revolving Credit Facility” has the meaning assigned to such term in Section 1A.1. 

“Revolving Credit Facility Cap” means Fifty Million and No/100 Dollars ($50,000,000). 

“Revolving Credit Note” has the meaning assigned to such term in Section 1A.2. 

“Revolving Credit Termination Date” has the meaning assigned to such term in Section 1A.1. 

“SEC” means the United Stated Securities and Exchange Commission. 

“Security Agreement” has the meaning assigned to such term in Section 2.4. 

  
 4 

 Section 1.2 Interpretation. For all purposes of this Agreement and each of the
other Loan Documents, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
 (a)
the capitalized terms shall have the meanings assigned to them in this Agreement, shall include the plural as well as the singular, and, when used with respect to any Loan Document or any other instrument, contract, agreement or other document,
shall include all extensions, modifications, amendments and supplements from time to time thereto; 
 (b) unless otherwise
specified, a reference in this Agreement to a particular article, section, subsection or exhibit is a reference to that article, section, subsection or exhibit of this Agreement; 

(c) the words “herein,” “hereof,” and “hereunder” and other words of similar import refer to this Agreement
or such other Loan Document, as applicable, as a whole and not to any particular article, section, or other subdivision hereof or thereof; 
 (d) the, words “include” and “including” and other words of similar import shall be construed as if followed by the phrase “without limitation”; 

(e) any provision of this Agreement or any other Loan Document permitting the recovery of “attorneys’ fees,”
“attorneys’ fees and expenses,” “attorneys’ fees and costs” or “attorneys’ fees, costs and expenses” or any similar term shall be deemed: (i) to include such reasonable attorneys’ fees, costs
and expenses; (ii) to include such reasonable fees, costs and expenses incurred in all probate, appellate and bankruptcy proceedings, as well as any post-judgment proceedings to collect or enforce any judgment or order relating to the
obligations of the Company hereunder and under the other Loan Documents; and (iii) shall be deemed to be separate and several, and shall survive merger into judgment; and 
 (f) accounting terms used but not otherwise defined herein shall be determined both as to classification of items and as to amounts in accordance with generally accepted accounting principles applied on a
consistent basis. 
 ARTICLE 1A 
 REVOLVING CREDIT FACILITY 
 Section 1A.1 General Description. Upon the terms and subject to the conditions contained in this Agreement (including, without limitation, the conditions contained in Article 2), the Bank
agrees to make a revolving credit facility (the “Revolving Credit Facility”) available to the Company, and to make advances and re-advances under the Revolving Credit Facility to the Company from time to time, during the period from
the date of this Agreement until the earlier to occur of (i) February 21, 2017, or (ii) the date on which the Bank’s obligation to make further advances under the Revolving Credit Facility is terminated pursuant to Section 6.2
(the “Revolving Credit Termination Date”); provided that the aggregate principal amount of all outstanding advances under the Revolving Credit Facility plus the aggregate stated amount of any Letters of Credit issued by the Bank for
the account of the Company shall not at any time 

  
 5 

 
exceed the Revolving Credit Facility Cap. Within such limits, the Company may borrow, repay and reborrow under the Revolving Credit Facility on or after the date of this Agreement and prior to
the Revolving Credit Termination Date. 
 Section 1A.2 Revolving Credit Note. The Company’s obligation to repay
the advances made under the Revolving Credit Facility will be evidenced by a amended and restated revolving credit note in the principal amount of the Revolving Credit Facility Cap, made by the Company and payable to the order of the Bank, and
otherwise in form and substance satisfactory to the Bank (as the same may be extended, amended, restated or replaced from time to time, the “Revolving Credit Note”), the terms of which are incorporated herein by this reference. The
Company acknowledges and agrees that the Bank may endorse on the Revolving Credit Note (or any schedule attached thereto) or otherwise make in the Bank’s records an appropriate notation of the date and amount of each advance made under the
Revolving Credit Facility and the date and amount of any payments or prepayments of the Revolving Credit Facility. Such endorsements or other notations shall, in the absence of manifest error, be conclusive as to the outstanding principal balance of
the Revolving Credit Facility; provided, however, the Bank’s error in making or failure to make any such endorsement or notation shall not limit or otherwise affect the obligations of the Company hereunder or under the Revolving Credit Note.

 Section 1A.3 Purpose. The Company will use advances under the Revolving Credit Facility for working capital and
for other general corporate purposes. 
 Section 1A.4 Repayment Terms; Interest Rate. 

(a) Accrued interest on the outstanding principal balance of the Revolving Credit Facility as it exists from time to time will be due and
payable on the last day of each month and on any date on which the Revolving Credit Facility is paid in full, and on the Revolving Credit Termination Date. On the Revolving Credit Termination Date, the entire outstanding principal balance of the
Revolving Credit Facility, together with all unpaid accrued interest thereon and all other amounts then owing thereunder, will be immediately due and payable in full. 
 (b) The outstanding principal balance of the Revolving Credit Facility as it exists from time to time will bear interest (computed on the basis of the actual number of days elapsed over a year of 360
days) at the per annum interest rate equal to BBA LIBOR Daily Floating Rate plus the Applicable Libor Margin. 

Section 1A.5 Manner of Borrowing. Unless the Company and the Bank agree to the contrary in writing, each advance made by the
Bank under the Revolving Credit Facility will be made in U.S. Dollars at the office of the Bank set forth at the beginning of this Agreement by crediting the amount of such advance to the general deposit account of the Company maintained at the
Bank. Without limiting the purposes for which advances may be made by the Bank under the Revolving Credit Facility, the Company shall be entitled to use advances thereunder to pay accrued interest under the Revolving Credit Facility. The Company
acknowledges and agrees that the Bank may make advances under the Revolving Credit Facility upon receipt of a written 

  
 6 

 
or telephonic request therefor from any person the Bank reasonably believes to be an authorized representative of the Company. 

Section 1A.6 Prepayments. 
 (a) The Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank as the result of the Revolving Credit Facility bearing interest at a rate based on
BBA LIBOR Daily Floating Rate), prepay amounts outstanding under the Revolving Credit Facility in whole or in part in any amount at any time and from time to time. 
 (b) If, at any time, the outstanding principal balance of the Revolving Credit Facility plus the aggregate stated amount of any Letters of Credit issued by the Bank for the account of the Company exceeds
the Revolving Credit Facility Cap, the Company will immediately prepay the Revolving Credit Facility, without premium or penalty, in an amount sufficient to eliminate such excess. 

(c) Within fifteen (15) days after the sale of any “Collateral” (as defined in the Security Agreement), except for any
Collateral sold in the ordinary course of the Company’s business, the Company shall apply 100% of the net cash proceeds of such sale to prepay amounts outstanding under the Revolving Credit Facility. 

Section 1A.7 Unused Commitment Fee. Commencing on April 1, 2012 (for the period from the date hereof until
March 30, 2012), and continuing on the first day of each July, October, January and April thereafter and on the Revolving Credit Termination Date, the Company shall pay to the Bank a per annum non-refundable unused commitment fee equal to the
product of (i) the Applicable Commitment Fee, times (ii) the difference between the Revolving Credit Facility Cap and the average outstanding principal balance of the Revolving Credit Facility during the preceding three (3) month
period (or other applicable period), which fee shall be pro rated for the number of days in each such period. 

Section 1A.8 Letters of Credit. The Company may from time to time apply to the Bank for one or more letters of credit (each,
a “Letter of Credit” and, collectively, the “Letters of Credit”) pursuant to applications and such other documentation as the Bank shall require (collectively, the “Letter of Credit Documents”);
provided, however, that (i) the aggregate stated amount of all Letters of Credit issued by the Bank for the account of the Company shall not at any time exceed the Letter of Credit Sublimit, and (ii) the term of any Letter of Credit shall
not ex-tend beyond the Revolving Credit Termination Date. Each Letter of Credit and any related Letter of Credit Documents shall constitute Loan Documents hereunder. 
 Section 1A.9 Reserved. 
 Section 1A.10 Payments and
Computations. Each payment under this Agreement or under the Revolving Credit Note shall be made not later than 2:00 p.m. Eastern time on the day when due, in lawful money of the United States of America or in Federal or other immediately
available funds, by payment of such funds to the Bank at the office of the Bank set forth at the 

  
 7 

 
beginning of this Agreement. Amounts received after 2:00 p.m. Eastern time on any day shall be deemed received on the next succeeding Business Day. Whenever any payment to be made wider this
Agreement or under the Revolving Credit Note shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall in such case be included in the computation of
interest. Unless otherwise provided, all interest and fees payable in connection with the Revolving Credit Facility shall be calculated on the basis of a year of 360 days for the actual number of days elapsed. All payments under the Revolving Credit
Note shall be applied by the Bank first to any late charges and accrued interest thereunder and then to the reduction of principal due thereunder, or in such other order as the Bank may determine in its sole discretion. 

Any and all payments by the Company to or on account of any obligation of the Company hereunder or under the other Loan Documents shall
be made free and clear of and without reduction or withholding for any taxes (other than Excluded Taxes), provided that if the Company shall be required by any applicable law to deduct any taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions, the Bank receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Company shall make such deductions, and (iii) the
Company shall timely pay the full amount deducted to the relevant Governmental authority in accordance with applicable law. The Company shall indemnify the Bank for the full amount of any taxes (other than Excluded Taxes) paid by the Bank on or with
respect to payments by the Company hereunder and under the other Loan Documents, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such taxes were correctly or legally imposed or asserted
by the relevant governmental authority. 
 If, after the date of this Agreement a Change in Law occurs, and the Bank determines
that such Change in Law has or would have the effect of reducing the rate of return on the Bank’s capital (or on the capital of Bank of America Corporation) as a consequence of the Revolving Credit Facility to a level below that which the Bank
(or Bank of America Corporation) could have achieved but for such Change in Law (taking into consideration the Bank’s (and Bank of America Corporation’s) policies with respect to capital adequacy), then from time to time the Company will
pay to the Bank such additional amount or amounts as will compensate the Bank (or Bank of America Corporation) for any such reduction suffered. 
 If any Change in Law shall (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the
account of or credit extended or participated in by, the Bank, (ii) subject the Bank to any tax of any kind whatsoever with respect to the Revolving Credit Facility, or change the basis of taxation of payments to the Bank in respect thereof
(except for Excluded Taxes), or (iii) impose on the Bank any other condition, cost or expense affecting this Agreement or the Revolving Credit Facility, and the result of any of the foregoing shall be to increase the cost to the Bank of making
or maintaining the Revolving Credit Facility (or of maintaining its obligation to make the Revolving Credit Facility), or to reduce the amount of any sum received or receivable by the Bank hereunder (whether of principal, interest or any other
amount) then, upon request of the Bank, the Company will pay to the Bank such additional amount or amounts as will compensate the Bank for such additional costs incurred or reduction suffered. 

  
 8 

 ARTICLE 2 

CONDITIONS PRECEDENT 

The obligation of the Bank to make the Revolving Credit Facility available to the Company is subject to the following conditions
precedent: 
 Section 2.1 Approval of Bank’s Counsel. All legal matters incident to the Revolving Credit
Facility, including without limitation all documents and opinions, shall be satisfactory to counsel for the Bank. 

Section 2.2 Compliance. At the time of the execution of this Agreement and the making of each advance under the Revolving
Credit Facility: 
 (a) Loan Documents. The Company shall have complied and shall then be in compliance with all of the
terms, covenants and conditions of this Agreement, the Security Agreement and all other documents, instruments or agreements to which the Company is a party that evidence, secure or otherwise relate to the Revolving Credit Facility (all documents
described in this paragraph (a) being collectively referred to herein as the “Loan Documents”), modified and amended from time to time; 
 (b) No Material Adverse Change. There shall not have occurred any material adverse change in the financial condition or results of operations of the Company, and the Bank shall not have determined
in good faith that the prospect of payment or performance of the Revolving Credit Facility has been materially impaired; 
 (c)
No Default. There shall exist no Event of Default and no event shall have occurred or condition exist which, with the giving of notice or the lapse of time, or both, would constitute an Event of Default; and 

(d) Representations and Warranties. The representations and warranties contained in Article 3 hereof shall be true as of the date
hereof. 
 The acceptance of the each advance under the Revolving Credit Facility shall be deemed a representation that each of
the conditions contained in this Section 2.2 has been satisfied. 
 Section 2.3 Revolving Credit Note. The
Company shall have executed and delivered to the Bank the Revolving Credit Note. 
 Section 2.4 Security Agreement and
Financing Statements. The Company shall have executed and delivered to the Bank an amended and restated security agreement in form and substance satisfactory to the Bank (as modified or amended from time to time, the “Security
Agreement”), granting the Bank a first priority security interest in all of the Company’s inventory, whether now existing or hereafter acquired. The Company shall have delivered to the Bank financing statements in the appropriate form,
receipted to show that they have been filed in 

  
 9 

 
the appropriate jurisdictions to perfect a first priority lien in the security interests granted to the Bank in the Security Agreement. 

Section 2.5 Company Organizational Documents; Evidence of Company Action. The Company shall have delivered to the Bank
(a) a certificate to the effect that the articles of incorporation and the bylaws of the Company previously delivered to the Bank have not been amended, restated or otherwise modified, (b) certified copies of all actions by the board of
directors of the Company authorizing and approving the execution, delivery and performance of the Loan Documents, (c) an incumbency certificate as to the officers of the Company executing the Loan Documents, and (d) a good standing
certificate (or its equivalent) relating to the Company of recent date in the jurisdiction in which the Company is incorporated. 
 Section 2.6 Opinion of Counsel. The Company shall have delivered to the Bank a favorable opinion of counsel for the Company, dated as of the date hereof and satisfactory in form and substance
to the Bank. 
 Section 2.7 Bank as Principal Depository. The Company shall have established the Bank as its
principal depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 Section 2.8 Payment of Fees. The Company shall have paid to the Bank all other amounts due and owing to the Bank including without limitation payment of all costs and expenses incurred by the
Bank pursuant to Section 7.3. 
 Section 2.9 Other Conditions. The Bank shall have received any and all other
certificates, statements, opinions and other documents required by the terms of this Agreement or otherwise requested by the Bank. 
 ARTICLE 3 
 REPRESENTATIONS AND
WARRANTIES 
 The Company represents and warrants to the Bank (which representations and
warranties shall survive the execution of the Revolving Credit Note and the making of each advance thereunder) that: 

Section 3.1 Subsidiaries. The Company has no subsidiaries other than Lumber Liquidators Services, LLC and Lumber Liquidators
Leasing, LLC. 
 Section 3.2 Organization and Existence. The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware, has the requisite power to own its property and carry on its business as now being conducted, and is duly qualified to do business in and is in good standing in each jurisdiction
in which the character of the properties owned by it therein or in which the transaction of its business makes such qualification necessary. 

  
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 Section 3.3 Authority. The Company has full power and authority to
(i) execute and deliver this Agreement and the other Loan Documents, (ii) make the borrowings hereunder and thereunder, and (iii) incur the obligations provided for herein and therein, all of which have been duly authorized by all
proper and necessary corporate action. No consent or approval of the stockholders of the Company which has not been obtained and no consent or approval of, notice to or filing with any public authority which has not been obtained or made is required
as a condition to the validity of or the performance by it of its obligations under this Agreement or the other Loan Documents. 

Section 3.4 Binding Agreements. Each of the Loan Documents constitutes, or when executed and delivered to the Bank will
constitute, its valid and legally binding obligations enforceable in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application relating to the enforcement of
creditors’ rights generally, and (ii) general principles of equity. 
 Section 3.5 Litigation. Except as
previously disclosed to the Bank in writing or as set forth in the most recent filing with the SEC, there are no actions, suits, proceedings or investigations pending or, so far as its officers, members or managers, as applicable, know, threatened
before any court or administrative agency naming it as a party that, in the opinion of its officers, members or managers, as applicable, will materially adversely affect (i) its financial condition or operations, (ii) its ability to
execute, deliver or perform the terms of this Agreement or the other Loan Documents, or (iii) any of the liens the Company contemplates granting to the Bank hereunder or thereunder. 

Section 3.6 No Conflicting Agreements. There is no provision of the organizational documents of the Company, and no provision
of any existing mortgage, lease, indenture, contract or agreement binding on it or affecting its property, that would conflict with or in any way prevent the execution, delivery, or carrying out of the terms of the Loan Documents. 

Section 3.7 Financial Condition. The Current Audited Financial Statements fairly present in all material respects its
financial condition and the results of its operations and changes in financial position as of the dates and for the periods referred to therein and have been prepared in accordance with generally accepted accounting principles and practices applied
on a consistent basis throughout the period involved. There are no liabilities, direct or indirect, fixed or contingent, that have not been disclosed to the Bank in writing. There has been no material adverse change in its financial condition or
operations since the date of the Current Audited Financial Statements. 
 Section 3.8 Title to Properties. It owns
and has good and marketable title to, or has a valid and enforceable leasehold interest in, all of its assets and properties, except to the extent that failure to so own good and marketable title or have a valid and enforceable leasehold interest
would not reasonably be expected to have a material adverse effect on its financial condition or operations or its ability to perform its obligations under the Loan Documents. Except as previously disclosed to the Bank in writing, such assets and
properties are free and clear of all liens or other encumbrances, other than liens or other encumbrances permitted by Section 5.2 hereof. 

  
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 Section 3.9 Employee Benefit Pension Plans. It is in compliance in all material
respects with all applicable provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Neither a Reportable Event (as defined in Section 4043 of ERISA) nor a Prohibited Transaction (as defined in
Section 406 of ERISA) for which there is not an applicable exemption has occurred or exists in connection with any employee benefit pension plan covered by ERISA (including any plan of any member of a controlled group of corporations or
entities and all trades and businesses (whether or not incorporated) under common control which, together with it, are treated as a single employer under Section 4l4 of the Internal Revenue Code of 1986, as amended) (each, a
“Plan”). No notice of intent to terminate any Plan has been filed, and no Plan has been terminated. No circumstances exist which might constitute grounds for the termination of any Plan by the Pension Benefit Guaranty Corporation
(the “PBGC”) or for the appointment of any trustee to administer a Plan, nor has the PBGC instituted any such proceedings. No circumstances exist which might constitute grounds for the imposition of a lien in favor of any Plan
pursuant to Section 302 of ERISA. It has not completely or partially withdrawn from a Multiemployer Plan (as described in Section 4001(a)(3) of ERISA). It has met the minimum funding requirements of ERISA with respect to each of the Plans.
It has incurred no liability to the PBGC under ERISA. 
 Section 3.10 No Defaults. It is not in default in the
payment of the principal of or any interest on any material indebtedness or in default under any instrument under or subject to which any such indebtedness has been incurred, and no event has occurred under the provisions of any such instrument
which, with the giving of notice or the lapse of time, or both, would constitute a default or an event of default thereunder. 

Section 3.11 Taxes. It has filed or caused to be filed all tax returns which are required to be filed by it pursuant to
applicable law. It has paid, or made provision for the payment of, all taxes, assessments, fees and other governmental charges which have or may have become due pursuant to those returns or otherwise, or pursuant to any assessment received by it,
except such taxes, if any, that are being contested in good faith and by appropriate proceedings and as to which adequate reserves (determined in accordance with generally accepted accounting principles) have been provided, and no tax liens have
been filed and, so far as its officers, members or managers, as applicable, know, no claims are being asserted against it with respect to any such taxes, fees or other charges. 

Section 3.12 Environmental Compliance. None of its property or operations violate in any material respects any federal laws,
rules or regulations relating to environmental protection (including, without limitation, regulations of the Environmental Protection Agency) or any applicable local or state law, rule, regulation or rule of common law (or any judicial
interpretation thereof) relating to the environment or hazardous materials (collectively, “Environmental Laws”). It agrees to comply strictly and timely with all remediation plans and other recommendations described in any
environmental report now or hereafter prepared with respect to any of its property. 
 Section 3.13 Federal
Regulations. No part of the proceeds of the Revolving Credit Facility will be used, directly or indirectly, for “purchasing” or “carrying” any “margin stock” 

  
 12 

 
within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in effect
(“Regulation U”) or for any other purpose which violates the provisions of any of the Regulations of such Board of Governors. If requested by the Bank, it will furnish to the Bank a statement to the foregoing effect in conformity
with the requirements of Federal Reserve Form U-1 referred to in Regulation U. 
 Section 3.14 Accuracy of
Information. No document or instrument executed or delivered by it or information (financial or otherwise) furnished by or on behalf of it in connection with this Agreement, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained herein or therein not misleading, and it has no knowledge of any fact that it has not disclosed to the Bank in writing that would reasonably be expected to have a material adverse effect on
its financial condition or operations or its ability to perform its obligations under the Loan Documents. 
 Section 3.15
Compliance with Laws. It is in compliance with all governmental laws and regulations applicable to the conduct of its business, except to the extent that noncompliance would not have a material adverse effect on (i) its financial
condition or operations, or (ii) its ability to execute, deliver or perform the terms of the Loan Documents. 

ARTICLE 4 
 AFFIRMATIVE COVENANTS 
 So
long as the Company may borrow under the Revolving Credit Facility and until payment in full of the Revolving Credit Facility and the performance of all other obligations of the Company hereunder, the Company shall: 

Section 4.1 Financial Information. Provide (or cause to be provided) the following financial information and statements in
form and content acceptable to the Bank, and such additional information as reasonably requested by the Bank from time to time: 

(a) Annual Financial Statements. The annual financial statements of LL Holdings, within one hundred (100) days after its
fiscal year end, but in no event later than the date on which such statements are required to be filed with the SEC; provided, however, that such statements shall be deemed received by the Bank upon their filing with the SEC. Such financial
statements must be audited (with an unqualified opinion) by a certified public accountant acceptable to the Bank, and prepared on a consolidated basis. 
 (b) Quarterly Financial Statements. The Company’s quarterly financial statements of LL Holdings, certified and dated by an authorized financial officer of LL Holdings, within forty
(40) days after the end of each fiscal quarter of LL Holdings (including the last fiscal quarter in each fiscal year), but in no event later than the date on which such statements are required to be filed with the SEC; provided, however, that
such statements shall be deemed received by the Bank upon their filing with the SEC. Such financial statements may be prepared by LL Holdings, and shall be prepared on a consolidated basis. 

  
 13 

 (c) Management Letters. Promptly, upon sending or receipt, copies of any management
letters and correspondence relating to management letters, sent or received by LL Holdings to or from LL Holding’s auditor, or, if no management letter is prepared, within thirty (30) days of providing the annual audited financial
statements in accordance with paragraph (a) above, a letter from such auditor stating that no deficiencies were noted that would otherwise be addressed in a management letter. 

(d) Compliance Certificates. Within the period(s) provided in paragraphs (a) and (b) above, a compliance certificate in
form and substance satisfactory to the Bank, signed by an authorized financial officer of the Company and LL Holdings setting forth (i) the information and computations (in sufficient detail) to establish that LL Holdings is in compliance with
all financial covenants at the end of the period covered by the financial statements then being furnished, and (ii) whether there existed or had occurred as of the date of such financial statements, and whether there exists or has occurred as
of the date of the certificate, any event or condition which, with the giving of notice or the lapse of time, or both, would constitute an Event of Default and, if any such event has occurred or condition exists, specifying the nature thereof and
the action the Company is taking or proposes to take with respect thereto. 
 Section 4.2 Bank as Principal
Depository. Maintain the Bank as its principal depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 Section 4.3 Taxes. Pay and discharge all taxes, assessments, and governmental charges upon it, its income, and its properties prior to the date on which penalties are attached thereto, unless
and to the extent only that (i) such taxes, assessments, and governmental charges are being contested in good faith and by appropriate proceedings, and (ii) adequate reserves (determined in accordance with generally accepted accounting
principles) have been set aside on its books with respect to such tax, assessment or charge so contested. 
 Section 4.4
Payment of Obligations. Pay and discharge at or before their maturity all of its material indebtedness and other material obligations and liabilities, unless and to the extent that (i) such indebtedness and other obligations are being
contested in good faith and by appropriate proceedings, and (ii) adequate reserves (determined in accordance with generally accepted accounting principles) have been set aside on its books with respect to such indebtedness, obligation or
liability. 
 Section 4.5 Insurance. 
 (a) In addition to any insurance required by the specific terms of the other Loan Documents, maintain insurance on such of its properties, in such amounts and against such risks as are customarily
maintained by similar businesses in the same vicinity. 
 (b) Cause each of the policies of insurance relating to the coverages
described above to include a standard mortgagee and loss payable clause in favor of the Bank or show the Bank as an additional insured, as applicable. 

  
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 (c) Cause each of the policies of insurance relating to the coverages described above to
provide for at least thirty (30) days prior notice to the Bank of any cancellation or termination thereof. 
 (d) Provide
to the Bank evidence of the renewal or replacement of any of the policies of insurance relating to the coverages described above within thirty (30) days of renewal or termination date thereof. 

(e) Upon the request of the Bank, deliver to the Bank a copy of each insurance policy, or, if permitted by the Bank, a certificate of
insurance listing all insurance in force. 
 Section 4.6 Existence. Maintain its existence as a corporation in good
standing in its jurisdiction of organization and maintain its good standing in each jurisdiction in which the character of the properties owned by it therein or in which the transaction of its business makes such qualifications necessary.

 Section 4.7 Licenses and Permits. Maintain all material permits, licenses, authorizations and approvals required
to own and operate its properties and businesses. 
 Section 4.8 Maintenance of Properties. Maintain, preserve, and
protect (i) all of its tangible property material to the conduct of its business and keep the same in good repair, working order, and condition (ordinary wear and tear excepted), and (ii) all franchises, licenses, copyrights, trademarks
and other intangible property material to the conduct of its business, and permit the Bank and its agents to enter upon and inspect such properties upon reasonable notice and during normal business hours. 

Section 4.9 Employee Benefit Pension Plans. Promptly during each year, (i) pay contributions that in the judgment of its
officers, members or managers, as applicable, after reasonable inquiry, are believed adequate to meet at least the minimum funding standards set forth in Sections 302 through 305 of ERISA, with respect to each Plan, if any, covered by ERISA, and
(ii) file each annual report required to be filed pursuant to Section 103 of ERISA in connection with each such Plan for each year; and notify the Bank within ten (10) days of the occurrence of a Reportable Event (as defined in
Section 4043 of ERISA) that might constitute grounds for termination of any such Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer any such Plan. 

Section 4.10 Compliance with Applicable Laws. Comply with all applicable laws, rules, regulations and orders of any
governmental authority having jurisdiction over it, including without limitation all Environmental Laws, except where non-compliance would not adversely affect (i) its financial condition or operations, and (ii) its ability to execute,
deliver or perform the terms of the Loan Documents. 
 Section 4.11 Notice of Liabilities. Notify the Bank promptly
in writing of (i) any condition, event, claim or act that would reasonably be expected to materially adversely affect its financial condition or operations, or any of the Bank’s rights or remedies under the Loan

  
 15 

 
Documents, or that would reasonably be expected to result in a material fixed or contingent liability, (ii) any material litigation filed by or against it, (iii) the occurrence of any
event that, with the giving of notice or the lapse of time, or both, would constitute an event of default under any of the Loan Documents, (iv) the occurrence of any uninsured or partially insured loss by it resulting from fire, theft,
liability or property damage if such loss is in excess of $1,000,000, (v) the assumption, guarantee, endorsement or other act causing it to become surety for or upon any material obligation of any Person, except by the endorsement of negotiable
instruments for deposit or collection in the ordinary course of business, (vi) any material dispute between the Company and any governmental authority or agency, and (vii) any change in the Company’s name, legal structure,
jurisdiction of incorporation, place of business or chief executive office. 
 Section 4.12 Further Assurances. Take any
other action reasonably requested by the Bank to carry out the intent of this Agreement or any of the other Loan Documents. 

ARTICLE 4A  
 FINANCIAL COVENANTS 
 So long
as the Company may borrow under the Revolving Credit Facility and until payment in full of the Revolving Credit Facility and the performance of all other obligations of the Company hereunder, LL Holdings shall: 

Section 4A.1 Basic Fixed Charge Coverage Ratio. Maintain on a consolidated basis a Basic Fixed Charge Coverage Ratio of
greater than or equal to 1.75 to 1.0. The Basic Fixed Charge Coverage Ratio will be calculated at the end of each fiscal quarter of LL Holdings, using the results of the twelve-month period ending with such fiscal quarter. The current portion of
long-term liabilities will be measured as of the date twelve months prior to the current financial statements. 

Section 4A.2 Adjusted Funded Debt to EBITDAR Ratio. Maintain on a consolidated basis an Adjusted Funded Debt to EBITDAR Ratio
not exceeding 2.50 to 1.0. The Adjusted Funded Debt to EBITDAR Ratio will be calculated at the end of each fiscal quarter of LL Holdings, using the results of the twelve-month period ending with such fiscal quarter. 

ARTICLE 5 
 NEGATIVE COVENANTS 
 So long
as the Company may borrow under the Revolving Credit Facility and until payment in full of the Revolving Credit Facility and the performance of all other obligations of the Company hereunder, the Company shall not: 

Section 5.1 Indebtedness. 
 (a) Create, incur, assume or suffer to exist in any manner, any indebtedness of the Company for borrowed money, deferred payment obligation for the purchase of assets, or other indebtedness of the Company
except (i) indebtedness owing to the Bank, (ii) accounts 

  
 16 

 
payable arising in the ordinary course of business and payable on customary terms, indebtedness disclosed to the Bank in writing and acknowledged by the Bank in writing on or prior to the date of
this Agreement (and any extensions, renewals and replacements of such indebtedness, provided that the outstanding principal balance thereof is not increased), indebtedness to the extent secured by purchase money security interests described in
Section 5.2(vi), and (v) indebtedness, in an aggregate outstanding amount not to exceed $5,000,000 at any one time. 

(b) Make any optional payment or prepayment on or redemption, defeasance or purchase of any indebtedness (other than the Revolving Credit
Facility or any other indebtedness owing to the Bank), or amend, modify or change, or consent or agree to any amendment, modification or change to any of the terms relating to the payment or prepayment or principal of or interest on, any such
indebtedness, other than any amendment, modification or change which would extend the maturity OT reduce the amount of any payment of principal thereof or which would reduce the rate or extend the date for payment of interest thereon. 

Section 5.2 Mortgages and Pledges. Create, incur, assume, or suffer to exist any mortgage, pledge, lien, or other encumbrance
of any kind upon, or any security interest in, any of its property or assets, whether now owned or hereafter acquired, except (i) liens for taxes not yet delinquent or being contested in good faith and by appropriate proceedings,
(ii) liens in connection with worker’s compensation, unemployment insurance, or other social security obligations, (iii) workman’s, carrier’s, warehouseman’s or other like liens (excluding landlord’s liens) arising
in the ordinary course of business with respect to obligations that are not due or that are being contested in good faith, (iv) mortgages, pledges, liens, encumbrances and security interests in favor of the Bank, (v) unfiled
mechanic’s or materialman’s liens; provided that, if any mechanic’s or materialman’s lien is filed on any property or asset of the Company, the Company shall promptly bond off or otherwise effect the release of such lien, and
(vi) purchase money security interests in capital assets of Company if each such purchase money security interest attaches to such capital asset concurrently with the acquisition thereof and if the indebtedness secured by such purchase money
security interest does not exceed the lesser of the cost or fair market value as of the time of acquisition of the asset covered thereby to the Company, provided that no such purchase money security interest shall attach, extend to or cover any
property or asset of the Company other than the related asset. 
 Section 5.3 Merger, Acquisition, or Sale of
Assets. Enter into any merger or consolidation with, or acquire all or substantially all of the assets of, any Person, or sell, assign, lease, or otherwise dispose of all or substantially all of its business, properties or assets, or sell any
asset of the Company with a value of $10,000,000 or more, or form or acquire any subsidiary. Notwithstanding the foregoing sentence, the Company may acquire all or substantially all of the assets of any Person, or form or acquire any subsidiary,
provided that (i) the Company does not incur any additional indebtedness in connection with such transaction, and (ii) such transaction, once consummated, would not result in a default under Section 4A.1 or 4A.2. 

Section 5.4 Contingent Liabilities. Assume, guarantee, endorse, or otherwise become surety for or upon the material
obligation of any Person, except by the endorsement of negotiable instruments for deposit or collection in the ordinary course of business. 

  
 17 

 Section 5.5 Loans. Make any loan or extend credit to any Person, except for
(a) trade credit extended in the ordinary course of its business on ordinary business terms, and (b) the “Vendor Notes” described in the Current Audited Financial Statements, provided that the outstanding balance of such Vendor
Notes shall not at any time exceed $3,000,000 in the aggregate. 
 Section 5.6 Character of Business. Change the
general character of its business as conducted on the date hereof or engage in any type of business not reasonably related to its business as presently conducted. 
 Section 5.7 Investments. Except as otherwise permitted by Section 5.5, purchase or acquire the obligations or stock of, or any other interest in, any Person, other than (a) cash,
(b) cash equivalents, (c) bank obligations including certificates of deposit, deposit notes, bankers acceptances, bank notes and time deposits with banks that are members of the Federal Reserve System and have total assets of not less than
$1,000,000,000, (d) direct obligations of the United States of America, (e) obligations of agencies of the United States Government if the payment of all principal and interest thereof is guaranteed by the United States of America,
(f) money market mutual funds and enhanced cash funds, (g) commercial paper and corporate bonds and notes, including floating rate instruments, (h) asset-backed securities (ABS) and short duration mortgage-backed securities (MBS),
including collateralized mortgage obligations (CMOs), municipal securities, including variable rate demand notes and auction rate securities, and stock in the Company. Notwithstanding the foregoing, the Company may utilize advances under the
Revolving Credit Note to purchase the outstanding stock of LL Holdings or may transfer advances under the Revolving Credit Note to LL Holdings which LL Holdings in turn may use to purchase its outstanding stock. 

ARTICLE 6 
 EVENTS OF DEFAULT AND REMEDIES 
 Section 6.1 Events of Default. The occurrence of any of the following events (each, an “Event of Default”) shall constitute an event of default under this Agreement: 

(a) default is made in the payment of any installment of interest or principal on the Revolving Credit Note within ten (10) days of
the date when due, provided such ten (10) day grace period shall not apply to payments due at the stated maturity thereof or as a consequence of acceleration and such payments shall be due at the stated maturity or with acceleration; or

 (b) default is made in the due observance or performance of any term, covenant, or agreement contained in Sections 4A.1 or
4A.2 hereof; or 
 (c) default is made in the due observance or performance of any other term, covenant, or agreement contained
in this Agreement (other than those referred to in paragraphs (a) and (b) above), and such default continues unremedied for a period of thirty (30) days after written notice of such default from the Bank to the Company; or 

  
 18 

 (d) any representation or warranty made herein or in any of the other Loan Documents, or any
statement or representation made in any certificate, report, or opinion delivered pursuant hereto or thereto proves to have been incorrect in any material respect when made; or 

(e) the Company is generally not paying its debts as such debts become due, becomes insolvent or unable to meet its obligations as they
mature, makes an assignment for the benefit of creditors, consents to the appointment of a trustee or a receiver, or admits in writing its inability to pay its debts as they mature; or 

(f) a trustee, receiver or custodian is appointed for the Company or for a substantial part of its properties without the consent of the
Company and is not discharged within thirty (30) days; or 
 (g) any case in bankruptcy is commenced, or any
reorganization, arrangement, insolvency, or liquidation proceedings are instituted, by or against the Company and, if so commenced or instituted, are consented to by the Company or remain undismissed for a period of thirty (30) days; or

 (h) any default is made in the performance of any other obligation incurred in connection with any indebtedness for borrowed
money of the Company in an aggregate amount in excess of $500,000, if the effect of such default is to permit the holder of such indebtedness (or a trustee on behalf of such holder) to cause it to become due prior to its stated maturity or to do so
with the giving of notice or lapse of time, or both, or any such indebtedness becomes due prior to its stated maturity or shall not be paid when due; or 
 (i) any final judgment for the payment of money in excess of $1,000,000 which is not adequately insured or indemnified against is rendered against the Company and the same remains undischarged for a
period of twenty (20) days during which time execution shall not be effectively stayed; or 
 (j) any substantial part of
the properties of the Company is sequestered or attached and is not returned to the possession of the Company or released from such attachment within thirty (30) days; or 
 (k) the occurrence of a Reportable Event as defined in Section 4043 of ERISA which might constitute grounds for termination by the PBGC of any Plan covered by ERISA or grounds for the appointment by
the appropriate United States District Court of a trustee to administer any such Plan; or 
 (l) the failure by the Company to
make any required contribution to any Plan covered by ERISA which might constitute grounds for the imposition of a lien in favor of such Plan pursuant to Section 302 of ERISA; or 

  
 19 

 (m) a default or event of default occurs under any of the other Loan Documents (taking into
consideration any notice, grace and/or cure periods provided therein), or any other document, instrument or agreement evidencing, securing or otherwise relating to any indebtedness, obligation or liability of the Company, whether now existing or
hereafter arising, to the Bank or any other subsidiary or affiliate of Bank of America Corporation; or 
 (n) the Company shall
challenge the validity and binding effect of any provision of any of the Loan Documents or shall state its intention to make such a challenge of any of the Loan Documents, or any of the Loan Documents shall for any reason (except to the extent
permitted by its express terms) cease to be effective; or 
 (o) the Bank in its exercise of its reasonable discretion (from the
perspective of a secured, asset-based lender) shall determine in good faith that a material adverse change has occurred in the financial condition of the Company; or 
 (p) the occurrence, in one transaction or a series of transactions, of a Change of Control. 
 Section 6.2 Remedies. 
 (a) Upon the occurrence of an Event of Default
described in Section 6.1(g) hereof, (i) the Bank’s obligation to make any further advances under the Revolving Credit Facility shall automatically and immediately terminate, (ii) the entire outstanding principal balance of the
Revolving Credit Facility and all accrued interest thereon and all other amounts owing thereunder shall automatically become immediately due and payable without presentment, demand, protest, notice of dishonor or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein or in the Revolving Credit Note to the contrary notwithstanding, and (iii) the Bank may proceed to enforce payment of the Revolving Credit Note and to exercise any and all rights and
remedies hereunder, under any of the other Loan Documents and/or otherwise available to the Bank at law or equity. 
 (b) Upon
the occurrence and during the continuation of any Event of Default other than an Event of Default described in Section 6.1(g) hereof, the Bank may, if it deems appropriate, take any or all of the following actions, at the same or different
times: (i) terminate forthwith its obligation to make any further advances under the Revolving Credit Facility, or any of them, (ii) declare the Revolving Credit Note to be forthwith due and payable, both as to principal and interest and
all other amounts owing thereunder, without presentment, demand, protest, notice of dishonor or any other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the Revolving Credit Note to the contrary
notwithstanding, and/or (iii) proceed to enforce payment of the Revolving Credit Note, and to exercise any and all rights and remedies hereunder, under any of the other Loan Documents and/or otherwise available to the Bank at law or equity.

 (c) The Company agrees that, in addition to the other rights and remedies of the Bank set forth herein and in the other Loan
Documents, upon the occurrence of an Event of Default the Bank shall have the right, without notice or demand to the Company, to set off and 

  
 20 

 
apply against any and all of the amounts owing under the Revolving Credit Note, any and all deposits (general or special, time or demand, provisional or final) and any other indebtedness at any
time held or owing by the Bank or any of the Bank’s agents or affiliates to or for the credit of the account of the Company. 
 ARTICLE 7  
 MISCELLANEOUS
PROVISIONS 
 Section 7.1 Indemnification. 

(a) From and at all times after the date of this Agreement, and in addition to all of the Bank’s other rights and remedies against
the Company, the Company hereby agrees to hold the Bank harmless from, and to indemnify the Bank against, all losses, damages, costs and expenses (including, but not limited to, reasonable attorneys’ fees, costs and expenses) incurred by the
Bank from and after the date hereof (except as a result of its gross negligence or willful misconduct or breach of this Agreement), whether direct, indirect or consequential, as a result of or arising from or relating to any suit, action or
proceeding by any Person other than the Company, whether threatened or initiated, asserting a claim for any legal or equitable remedy against any Person under any statute or regulation, including, but not limited to, any federal or state securities
laws, or under any common law or equitable cause of action or otherwise, arising from or in connection with the negotiation, preparation, execution or performance of, or the financing transaction contemplated by, this Agreement and the other Loan
Documents, or the Bank’s furnishing of funds to the Company pursuant hereto or thereto; provided, however, that the foregoing indemnification shall not protect the Bank from loss, damage, cost or expense directly attributable to the Bank’s
gross negligence or willful misconduct or breach of this Agreement. All of the foregoing losses, damages, costs and expenses of the Bank shall be payable by the Company upon demand by the Bank and shall be secured by the liens granted to the Bank
pursuant to any of the Loan Documents. 
 (b) The Company hereby agrees to indemnify, defend and hold the Bank and its
successors and assigns harmless from and against any and all claims, demands, suits, losses, damages, assessments, fines, penalties, costs or other expenses (including reasonable attorneys’ fees, costs and expenses) arising from or in any way
related to actual or threatened damage to the environment, agency costs of investigation, personal injury or death, or property damage, due to a release of hazardous wastes or toxic substances arising from the Company’s business operations, or
gaseous emissions arising from the Company’s business operations or any other condition existing or arising from the Company’s business operations resulting from the use or existence of hazardous wastes or toxic substances or the violation
of any environmental law. The Company further hereby agrees that its indemnity obligations shall include, but are not limited to, liability for damages resulting from the personal injury or death of an employee of the Company, regardless of whether
the Company has paid the employee under the worker’s compensation laws of any state or other similar federal or state legislation for the protection of employees. The term “property damage” as used in this Section 7.1(b)
includes, but is not limited to, damage to any real or personal property of the Company, the Bank or of any third party. 

  
 21 

 (c) The Company’s obligations under this Section 7.1 shall survive the termination
of this Agreement and repayment of advances under the Revolving Credit Facility. For purposes of this Section 7.1 only, the term “Bank” shall include the Bank, its parent, subsidiaries, and all of their directors, officers, employees,
agents, successors, attorneys and assigns. 
 Section 7.2 Autodebit. The Company hereby authorizes the Bank to
automatically deduct from such account of the Company with the Bank as the Company shall designate in writing (or any account of the Company with the Bank if no particular account is so designated), the amount of each payment of principal (including
without limitation the principal payment due on the final maturity date) and/or interest under the Revolving Credit Facility on the dates such payments become due. If the funds in the account are insufficient to cover any payment, the Bank shall not
be obligated to advance funds to cover the payment. This authorization shall not affect the obligation of the Company to pay such sums when due, without notice, if there are insufficient funds in such account to make such payment in Pall on the due
date thereof, or if the Bank fails to debit such account. 
 Section 7.3 Costs and Expenses. The Company hereby
agrees to pay all reasonable out-of-pocket expenses incurred by the Bank in connection with the preparation of the Loan Documents and all related documents (whether or not the transactions hereby contemplated shall be consummated), including but not
limited to the reasonable fees and disbursements of counsel for the Bank; and the Company hereby agrees to pay all expenses associated with recordation and filing fees, survey costs, title insurance fees, financing statement searches and other costs
and expenses associated with the closing of the transactions contemplated by this Agreement and the other Loan Documents. In addition, the Company hereby agrees that it will pay on demand all reasonable out-of-pocket expenses incurred by the Bank in
connection with the preparation of any amendments to or other modifications of any of the foregoing documents, the making and administering of the Revolving Credit Facility, and the enforcement of the rights of the Bank in connection with this
Agreement and the other Loan Documents, including but not limited to the reasonable fees and disbursements of counsel for the Bank. 
 Section 7.4 Cumulative Rights and No Waiver. Each and every right granted to the Bank hereunder or under any other document delivered hereunder or in connection herewith, or allowed the Bank
by law or equity, shall be cumulative and may be exercised from time to time. No failure on the part of the Bank to exercise, and no delay in exercising, any right shall operate as a waiver thereof, nor shall any single or partial exercise by the
Bank of any right preclude any other or future exercise thereof or the exercise of any other right. 
 Section 7.5
ARBITRATION AND WAIVER OF JURY TRIAL. 
 (A) THIS SECTION CONCERNS THE RESOLUTION OF ANY CONTROVERSIES OR CLAIMS BETWEEN
THE PARTIES TO THIS AGREEMENT, WHETHER ARISING IN CONTRACT, TORT OR BY STATUTE, INCLUDING BUT NOT LIMITED TO CONTROVERSIES OR CLAIMS THAT ARISE OUT OF OR RELATE TO: (I) THIS AGREEMENT (INCLUDING ANY RENEWALS, EXTENSIONS OR MODIFICATIONS), OR
(II) ANY DOCUMENT RELATED TO THIS AGREEMENT 

  
 22 

 
(INDIVIDUALLY AND COLLECTIVELY, A “CLAIM”). FOR THE PURPOSES OF THIS SECTION ONLY, THE TERM “PARTIES” SHALL INCLUDE ANY PARENT CORPORATION, SUBSIDIARY OR AFFILIATE OF
THE BANK INVOLVED IN THE SERVICING, MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED IN OR EVIDENCED BY THIS AGREEMENT. 

(B) AT THE REQUEST OF ANY PARTY TO THIS AGREEMENT, ANY CLAIM SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL
ARBITRATION ACT (TITLE 9, U.S. CODE) (THE “ACT”). THE ACT WILL APPLY EVEN THOUGH THIS AGREEMENT PROVIDES THAT IT IS GOVERNED BY THE LAW OF A SPECIFIED STATE. THE ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO
ANY FORM OF CLASS ACTION. 
 (C) ARBITRATION PROCEEDINGS WILL BE DETERMINED IN ACCORDANCE WITH THE ACT, THE THEN-CURRENT RULES
AND PROCEDURES FOR THE ARBITRATION OF FINANCIAL SERVICES DISPUTES OF THE AMERICAN ARBITRATION ASSOCIATION OR ANY SUCCESSOR THEREOF (“AAA”), AND THE TERMS OF THIS SECTION. IN THE EVENT OF ANY INCONSISTENCY, THE TERMS OF THIS SECTION
SHALL CONTROL. IF AAA IS UNWILLING OR UNABLE TO (I) SERVE AS THE PROVIDER OF ARBITRATION, OR (II) ENFORCE ANY PROVISION OF THIS SECTION, THE BANK MAY DESIGNATE ANOTHER ARBITRATION ORGANIZATION WITH SIMILAR PROCEDURES TO SERVE AS THE
PROVIDER OF ARBITRATION. 
 (D) THE ARBITRATION SHALL BE ADMINISTERED BY AAA AND CONDUCTED, UNLESS OTHERWISE REQUIRED BY LAW, IN
THE STATE SPECIFIED IN THE GOVERNING LAW SECTION OF THIS AGREEMENT. ALL CLAIMS SHALL BE DETERMINED BY ONE ARBITRATOR; HOWEVER, IF CLAIMS EXCEED FIVE MILLION DOLLARS ($5,000,000), UPON THE REQUEST OF ANY PARTY, THE CLAIMS SHALL BE DECIDED BY THREE
ARBITRATORS. ALL ARBITRATION HEARINGS SHALL COMMENCE ‘WITHIN NINETY (90) DAYS OF THE DEMAND FOR ARBITRATION AND CLOSE WITHIN NINETY (90) DAYS OF COMMENCEMENT AND THE AWARD OF THE ARBITRATOR(S) SHALL BE ISSUED WITHIN THIRTY
(30) DAYS OF THE CLOSE OF THE HEARING. HOWEVER, THE ARBITRATOR(S), UPON A SHOWING OF GOOD CAUSE, MAY EXTEND THE COMMENCEMENT OF THE HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS. THE ARBITRATOR(S) SHALL PROVIDE A CONCISE WRITTEN
STATEMENT OF REASONS FOR THE AWARD. THE ARBITRATION AWARD MAY BE SUBMITTED TO ANY COURT HAVING JURISDICTION TO BE CONFIRMED, JUDGMENT ENTERED AND ENFORCED. 
 (E) THE ARBITRATOR(S) WILL GIVE EFFECT TO STATUTES OF LIMITATION IN DETERMINING ANY CLAIM AND MAY DISMISS THE ARBITRATION ON THE BASIS THAT THE CLAIM IS BARRED. FOR PURPOSES OF THE APPLICATION OF THE
STATUTE OF LIMITATIONS, THE SERVICE ON AAA UNDER APPLICABLE AAA RULES OF A NOTICE OF CLAIM IS THE EQUIVALENT OF THE 

  
 23 

 
FILING OF A LAWSUIT. ANY DISPUTE CONCERNING THIS SECTION OR WHETHER A CLAIM IS ARBITRABLE SHALL BE DETERMINED BY THE ARBITRATOR(S), EXCEPT AS SET FORTH AT SUBPARAGRAPH (H) OF THIS SECTION.
THE ARBITRATOR(S) SHALL HAVE THE POWER TO AWARD LEGAL FEES PURSUANT TO THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
 (F) THIS SECTION DOES NOT LIMIT THE RIGHT OF ANY PARTY TO: (I) EXERCISE SELF-HELP REMEDIES, SUCH AS BUT NOT LIMITED TO, SETOFF; (II) INITIATE JUDICIAL OR NON-JUDICIAL FORECLOSURE AGAINST ANY
REAL OR PERSONAL PROPERTY COLLATERAL; (III) EXERCISE ANY JUDICIAL OR POWER OF SALE RIGHTS, OR (IV) ACT IN A COURT OF LAW TO OBTAIN AN INTERIM REMEDY, SUCH AS BUT NOT LIMITED TO, INJUNCTIVE RELIEF, WRIT OF POSSESSION OR APPOINTMENT OF A
RECEIVER, OR ADDITIONAL OR SUPPLEMENTARY REMEDIES. 
 (G) THE FILING OF A COURT ACTION IS NOT INTENDED TO CONSTITUTE A WAIVER OF
THE RIGHT OF ANY PARTY, INCLUDING THE SUING PARTY, THEREAFTER TO REQUIRE SUBMITTAL OF THE CLAIM TO ARBITRATION. 
 (H) ANY
ARBITRATION OR COURT TRIAL (WHETHER BEFORE A JUDGE OR JURY) OF ANY CLAIM WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO ANY FORM OF CLASS OR REPRESENTATIVE ACTION (THE “CLASS ACTION WAIVER”). THE CLASS ACTION WAIVER PRECLUDES ANY
PARTY FROM PARTICIPATING IN OR BEING REPRESENTED IN ANY CLASS OR REPRESENTATIVE ACTION REGARDING A CLAIM. REGARDLESS OF ANYTHING ELSE IN THIS DISPUTE RESOLUTION PROVISION, THE VALIDITY AND EFFECT OF THE CLASS ACTION WAIVER MAY BE DETERMINED ONLY BY
A COURT AND NOT BY AN ARBITRATOR. THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE THAT THE CLASS ACTION WAIVER IS MATERIAL AND ESSENTIAL TO THE ARBITRATION OF ANY DISPUTES BETWEEN THE PARTIES AND IS NONSEVERABLE FROM THE AGREEMENT TO ARBITRATE CLAIMS. IF
THE CLASS ACTION WAIVER IS LIMITED, VOIDED OR FOUND UNENFORCEABLE, THEN THE PARTIES’ AGREEMENT TO ARBITRATE SHALL BE NULL AND VOID WITH RESPECT TO SUCH PROCEEDING, SUBJECT TO THE RIGHT TO APPEAL THE LIMITATION OR INVALIDATION OF THE CLASS
ACTION WAIVER. THE PARTIES ACKNOWLEDGE AND AGREE THAT UNDER NO CIRCUMSTANCES WILL A CLASS ACTION BE ARBITRATED. 
 (I) BY
AGREEING TO BINDING ARBITRATION, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS AGREEMENT TO ARBITRATE, TO THE EXTENT ANY
CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE, TO A TRIAL BY JURY IN RESPECT OF SUCH CLAIM. THIS WAIVER OF JURY TRIAL SHALL REMAIN IN EFFECT EVEN IF THE CLASS ACTION WAIVER IS LIMITED, VOIDED OR FOUND
UNENFORCEABLE. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE 

  
 24 

 
PARTIES ENTERING INTO THIS AGREEMENT. WHETHER THE CLAIM IS DECIDED BY ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY
ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW. 
 Section 7.6 Notices. All notices,
requests and other communications required to be given under this Agreement or any of the other Loan Documents shall be in writing (including facsimile transmission or similar writing) and shall be given to the applicable party at its address or
facsimile number set forth below or such other address or facsimile number as such party may hereafter specify in writing for the purpose of communication hereunder by notice to the other party hereto. Each such notice, request or other
communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication
is deposited in the mails, by certified or registered mail, with appropriate first class postage prepaid, addressed as specified in this Section, or (iii) if given by any other means, when actually delivered to the address specified in this
Section. Rejection or refusal to accept, or the inability to deliver because of a changed address of which no notice was given, shall not affect the validity of notice given in accordance with this Section. 

If to the Company: 
 Lumber Liquidators, Inc. 
 3000 John Deere Road 

Toano, Virginia 23168 
 Attn: E. Livingston B. Haskell, Esq. 
 Facsimile: 757-259-7299

 with a courtesy copy to: 

Charles W. Kemp, Esquire 
 Williams Mullen 
 200 South 10th Street 

1021 East Cary Street 
 Richmond, Virginia 23219 
 Facsimile: 804-420-6507 

If to the Bank: 
 Bank of America, N.A. 
 1 Commercial Place 

Norfolk, VA 23510-2101 
 Attn: David J. Doucette, Senior Vice President 
 Facsimile:
757-441-8599 

  
 25 

 with a courtesy copy to: 

Otto W. Konrad, Esquire 
 Kaufman & Canoles 
 James Center II,
14th Floor 

1021 East Cary Street 
 Richmond, Virginia 23219 
 Facsimile: 804-771-5777 

Section 7.7 Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the Commonwealth
of Virginia. 
 Section 7.8 Modifications. No modification, amendment or waiver of any provision of this Agreement,
nor consent to any departure by the Company therefrom shall in any event be effective unless the same shall be in writing and signed by the Bank and then such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand upon the Company in any case shall entitle the Company to any other or further notice or demand in the same or similar circumstances. The Company acknowledges and agrees that neither the payment by the Company
under, nor the acceptance by the Bank of any principal or interest on, the Revolving Credit Facility after the occurrence of an Event of Default shall constitute a waiver of any Event of Default, or any amendment to this Agreement, or otherwise
prejudice or limit any other rights or remedies of the Bank. 
 Section 7.9 Survivorship; Successors and Assigns.
All covenants, agreements, representations and warranties made herein and in any certificates delivered pursuant hereto shall survive the execution and delivery of this Agreement and the making of each advance under the Revolving Credit Facility,
and shall continue in full force and effect so long as any obligation of the Company hereunder or thereunder is outstanding and unpaid. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include
the successors and assigns of such party, and all covenants, promises and agreements by or on behalf of the Company which are contained in this Agreement shall bind the successors and assigns of the Company and inure to the benefit of the successors
and assigns of the Bank. The Company shall not have the right to assign any of its rights or obligations hereunder. The Bank may from time to time sell participations in all or any portion of the Revolving Credit Facility without notice to, or the
consent or approval of, the Company. 
 Section 7.10 Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.

 Section 7.11 Headings. Article and Section headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 

  
 26 

 Section 7.12 Entire Agreement; Controlling Document. This Agreement and the
other Loan Documents represent the final agreement of the Company and the Bank with respect to the subject matter hereof and thereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous
written or oral agreements of the Company and the Bank. To the extent of any conflict between the provisions of this Agreement and the provisions of any other Loan Documents with respect to any specific matters covered herein, the provisions of this
Agreement with respect to such matters shall control. 
 Section 7.13 USA PATRIOT Act Notice. The Bank hereby
notifies the Company that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), the Bank is required to obtain, verify and record information that identifies
the Company, which information includes the name and address of the Company and other information that will allow the Bank to identify the Company in accordance with the Act. 
 Section 7.14 Final Agreement. This Agreement and the other Loan Documents represent the final agreement between the Company and the Bank with respect to the subject matter hereof and thereof,
and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of the Company and the Bank. 
 Section 7.15 Amendment and Restatement. This Agreement amends and restates that certain Revolving Credit Agreement dated as of August 10, 2007 by and between the Company’s
predecessor in interest and the Bank, as modified by a Limited Waiver to Revolving Credit Agreement dated as of December 30, 2009 by and between the Company and the Bank and a Modification Agreement dated as of December 30, 2009 by and
between the Company and the Bank, as further modified or amended from time to time. No novation is intended hereby. 

[Signatures appear on following page] 

  
 27 

 IN WITNESS WHEREOF, each of the Company and the
Bank has caused this Agreement to be duly executed by its duly authorized officer, all as of the day and year first above written, intending to create an instrument executed under seal. 

 

			
	COMPANY:
	
	 LUMBER LIQUIDATORS, INC.,

a Delaware corporation

		
	By:	 	/s/ Robert M.
Lynch                                (Seal)
	 Name:
	 	Robert M. Lynch
	 Title:
	 	President and
		 	Chief Executive Officer
	
	BANK:
	
	 BANK OF AMERICA, N.A.,
 a national banking association

		
	By:	 	/s/ Brian A. Roundtree
	 Name:
	 	Brian A. Rountree
	 Title:
	 	Senior Vice President

  
 28 

 AMENDED AND RESTATED REVOLVING CREDIT NOTE 

 

			
	 $50,000,000.00
	 	February 21, 2012
		 	Richmond, Virginia

 FOR VALUE RECEIVED, LUMBER LIQUIDATORS, INC. (the “Company”), a Delaware corporation, promises
to pay to the order of BANK OF AMERICA, N.A. (the “Bank”) at its office at 1111 East Main Street, Richmond, Virginia 23219, or at such other place as the holder hereof may from time to time designate in writing, the principal sum of FIFTY
MILLION AND No/100 DOLLARS ($50,000,000.00), or such lesser principal amount as may be advanced or readvanced hereunder by the Bank, payable on the terms and dates and in the amounts as hereinafter provided, and to pay interest on the outstanding
principal balance of this Note as it exists from time to time from the date hereof as provided herein. 
 This Note is the
“Revolving Credit Note” and one of the “Loan Documents” described in, and (to the extent not inconsistent with the terms of this Note) is subject to the terms and conditions of, an Amended and Restated Revolving Credit Agreement
dated as of even date herewith (as the same may be extended, amended, restated or replaced from time to time, the “Loan Agreement”), by and between the Company and the Bank. Capitalized terms used and not otherwise defined in this Note
shall have the meanings set forth in the Loan Agreement. 
 This Note extends, amends and restates the Revolving Credit Note
dated August 10, 2007 made by the Company’s predecessor in interest, payable to the order of the Bank in the original principal amount of $25,000,000.00 (the “Prior Note”), and this Note is executed and delivered to the
Bank as a replacement of and in substitution for the Prior Note. The execution and delivery of this Note shall not constitute a novation of the debt originally evidenced by the Prior Note. 

The outstanding principal balance of this Note as it exists from time to time will bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at the per annum interest rate equal to BBA LIBOR Daily Floating Rate plus the Applicable Libor Margin. 
 Accrued interest on the outstanding principal balance of this Note as it exists from time to time will be due and payable on the last day of each month and on any date on which this Note is paid in full,
and on the Revolving Credit Termination Date. On the Revolving Credit Termination Date, the entire outstanding principal balance of this Note, together with all unpaid accrued interest thereon and all other amounts then owing thereunder, will be
immediately due and payable in full. 
 The Company acknowledges and agrees that the Bank may endorse on this Note (or any
schedule attached hereto) or otherwise make in the Bank’s records an appropriate notation of the date and amount of each advance made hereunder and the date and amount of any payments or prepayments hereof. Such endorsements or other notations
shall, in the absence of manifest error, be conclusive as to the outstanding principal balance of this Note; provided, however, the Bank’s error in making or failure to make any such endorsement or notation shall not limit or otherwise affect
the obligations of the Company under this Note. 

 Notwithstanding the foregoing or any other provision of this Note to the contrary, upon the
occurrence of an Event of Default, the outstanding principal balance of this Note will bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at the per annum rate of interest (the “Default
Rate”) equal to BBA LIBOR Daily Floating Rate plus the Applicable Libor Margin plus two percent (2.00%). The Default Rate will be effective on the first date as of which the applicable Event of Default occurs, notwithstanding the fact that such
Event of Default may not be reported or otherwise discovered until a subsequent date, and such Default Rate will continue until such Event of Default is cured, at which time the outstanding balance of this Note shall cease bearing interest at the
Default Rate and shall resume bearing interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at the per annum rate of interest equal to BBA LIBOR Daily Floating Rate plus the Applicable Libor Margin.

 In the event that the Company fails to pay any installment of principal and/or interest on this Note within fifteen
(15) days after its due date, the Company will pay to the Bank without demand a late charge equal to four percent (4.00%) of the amount of such installment; provided that no such late charge shall be due or payable with respect to the
Company’s obligation to pay the unpaid principal balance hereof, whether such balance shall be due on the Revolving Credit Termination Date, by acceleration or otherwise. 
 The Company may, without premium or penalty (subject to any breakage fees or redeployment costs incurred by the Bank as the result of this Note bearing interest at a rate based on BBA LIBOR Daily Floating
Rate), prepay amounts outstanding under this Note in whole or in part at any time and from time to time. 
 The Company agrees
that all amounts owing under this Note, including principal, interest and fees, will be deducted automatically on the due date thereof as set forth in Section 7.2 of the Loan Agreement. 

The occurrence of any Event of Default will constitute a default under this Note, and such Events of Default are incorporated herein by
this reference. In the event of the occurrence of any or all of such Events of Default, the entire unpaid principal balance of this Note together with all accrued interest will become or may be declared immediately due and payable in the manner and
with the effect as provided in the Loan Agreement, and the Bank will have all other rights and remedies provided for in the Loan Agreement, the other Loan Documents or otherwise available at law or equity. 

The Company agrees to reimburse the Bank for any expenses it incurs in the preparation of this Note and any agreement or instrument
related to this Note. Such expenses include, but are not limited to, reasonable attorneys’ fees, including any allocated costs of the Bank’s inhouse counsel to the extent permitted by applicable law. Furthermore, the Company will reimburse
the Bank for any reasonable costs and attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any rights or remedies under this Note and any other documents executed in connection with this Note, and in
connection with any amendment, waiver, “workout” or restructuring under this Note. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable attorneys’ fees incurred in
connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Company under the Bankruptcy Code (Title 11, United States Code) or any similar or successor
statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the preservation, protection or enforcement of any rights of the Bank in such a case. 

 Presentment, demand, protest and notice of dishonor are hereby waived by the Company and
each endorser hereon or other guarantor or obligor hereof. 
 This Note will be governed by and construed in accordance with the
laws of the Commonwealth of Virginia. 
 THIS PARAGRAPH, INCLUDING THE FOLLOWING EIGHT SUBPARAGRAPHS, IS REFERRED TO AS THE
“DISPUTE RESOLUTION PROVISION.” THIS DISPUTE RESOLUTION PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS NOTE, AND CONCERNS THE RESOLUTION OF ANY CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES TO THIS NOTE, WHETHER
ARISING IN CONTRACT, TORT OR BY STATUTE, INCLUDING BUT NOT LIMITED TO CONTROVERSIES OR CLAIMS THAT ARISE OUT OF OR RELATE TO: (I) THIS NOTE (INCLUDING ANY RENEWALS, EXTENSIONS OR MODIFICATIONS), OR (II) ANY DOCUMENT RELATED TO THIS NOTE
(INDIVIDUALLY AND COLLECTIVELY, A “CLAIM”). FOR THE PURPOSES OF THIS DISPUTE RESOLUTION PROVISION ONLY, THE TERM “PARTIES” SHALL INCLUDE ANY PARENT CORPORATION, SUBSIDIARY OR AFFILIATE OF THE BANK INVOLVED IN THE SERVICING,
MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED IN OR EVIDENCED BY THIS NOTE. 
 (A) AT THE REQUEST OF ANY PARTY TO
THIS NOTE, ANY CLAIM SHALL BR RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (TITLE 9, U.S. CODE) (THE “ACT”). THE ACT WILL APPLY EVEN THOUGH THIS NOTE PROVIDES THAT IT IS GOVERNED BY THE LAW OF A SPECIFIED
STATE. 
 (B) ARBITRATION PROCEEDINGS WILL BE DETERMINED IN ACCORDANCE WITH THE ACT, THE THEN-CURRENT RULES AND PROCEDURES FOR
THE ARBITRATION OF FINANCIAL SERVICES DISPUTES OF THE AMERICAN ARBITRATION ASSOCIATION OR ANY SUCCESSOR THEREOF (“AAA”), AND THE TERMS OF THIS SECTION. IN THE EVENT OF ANY INCONSISTENCY, THE TERMS OF THIS SECTION SHALL CONTROL. IF AAA IS
UNWILLING OR UNABLE TO (I) SERVE AS THE PROVIDER OF ARBITRATION, OR (II) ENFORCE ANY PROVISION OF THIS SECTION, THE BANK MAY DESIGNATE ANOTHER ARBITRATION ORGANIZATION WITH SIMILAR PROCEDURES TO SERVE AS THE PROVIDER OF ARBITRATION. 

(C) THE ARBITRATION SHALL BE ADMINISTERED BY AAA AND CONDUCTED, UNLESS OTHERWISE REQUIRED BY LAW, IN THE STATE SPECIFIED IN THE GOVERNING
LAW SECTION OF THIS NOTE. ALL CLAIMS SHALL BE DETERMINED BY ONE ARBITRATOR; HOWEVER, IF CLAIMS EXCEED FIVE MILLION DOLLARS ($5,000,000), UPON THE REQUEST OF ANY PARTY, THE CLAIMS SHALL BE DECIDED BY THREE ARBITRATORS. ALL ARBITRATION HEARINGS SHALL
COMMENCE WITHIN NINETY (90) DAYS OF THE DEMAND FOR ARBITRATION AND CLOSE WITHIN NINETY (90) DAYS OF COMMENCEMENT AND THE AWARD OF THE ARBITRATOR(S) SHALL BE ISSUED WITHIN THIRTY (30) DAYS OF THE CLOSE OF THE HEARING. HOWEVER, THE
ARBITRATOR(S), UPON A 

 
SHOWING OF GOOD CAUSE, MAY EXTEND THE COMMENCEMENT OF THE HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS. THE ARBITRATOR(S) SHALL PROVIDE A CONCISE WRITTEN STATEMENT OF REASONS FOR THE
AWARD. THE ARBITRATION AWARD MAY BE SUBMITTED TO ANY COURT HAVING JURISDICTION TO BE CONFIRMED, JUDGMENT ENTERED AND ENFORCED. 

(D) THE ARBITRATOR(S) WILL GIVE EFFECT TO STATUTES OF LIMITATION IN DETERMINING ANY CLAIM AND MAY DISMISS THE ARBITRATION ON THE BASIS
THAT THE CLAIM IS BARRED. FOR PURPOSES OF THE APPLICATION OF THE STATUTE, OF LIMITATIONS, THE SERVICE ON AAA UNDER APPLICABLE AAA RULES OF A NOTICE OF CLAIM IS THE EQUIVALENT OF THE FILING OF A LAWSUIT. ANY DISPUTE CONCERNING THIS SECTION OR WHETHER
A CLAIM IS ARBITRABLE SHALL BE DETERMINED BY THE ARBITRATOR(S), EXCEPT AS SET FORTH AT SUBPARAGRAPH (G) OF THIS DISPUTE RESOLUTION PROVISION. THE ARBITRATOR(S) SHALL HAVE THE POWER TO AWARD LEGAL FEES PURSUANT TO THE TERMS OF THIS NOTE.

 (E) THIS PARAGRAPH DOES NOT LIMIT THE RIGHT OF ANY PARTY TO: (I) EXERCISE SELF-HELP REMEDIES, SUCH AS BUT NOT LIMITED
TO, SETOFF; (II) INITIATE JUDICIAL OR NON-JUDICIAL FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL; (III) EXERCISE ANY JUDICIAL OR POWER OF SALE RIGHTS, OR (IV) ACT IN A COURT OF LAW TO OBTAIN AN INTERIM REMEDY, SUCH AS BUT NOT LIMITED
TO, INJUNCTIVE RELIEF, WRIT OF POSSESSION OR APPOINTMENT OF A RECEIVER, OR ADDITIONAL OR SUPPLEMENTARY REMEDIES. 
 (F) THE
FILING OF A COURT ACTION IS NOT INTENDED TO CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE SUING PARTY, THEREAFTER TO REQUIRE SUBMITTAL OF THE CLAIM TO ARBITRATION. 

(G) ANY ARBITRATION OR COURT TRIAL (WHETHER BEFORE A JUDGE OR JURY) OF ANY CLAIM WILL TAKE PLACE ON AN INDIVIDUAL BASIS WITHOUT RESORT TO
ANY FORM OF CLASS OR REPRESENTATIVE ACTION (THE “CLASS ACTION WAIVER”). THE CLASS ACTION WAIVER PRECLUDES ANY PARTY FROM PARTICIPATING IN OR BEING REPRESENTED IN ANY CLASS OR REPRESENTATIVE ACTION REGARDING A CLAIM. REGARDLESS OF ANYTHING
ELSE IN THIS DISPUTE RESOLUTION PROVISION, THE VALIDITY AND EFFECT OF THE CLASS ACTION WAIVER MAY BE DETERMINED ONLY BY A COURT AND NOT BY AN ARBITRATOR. THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE THAT THE CLASS ACTION WAIVER IS MATERIAL AND
ESSENTIAL TO THE ARBITRATION OF ANY DISPUTES BETWEEN THE PARTIES AND IS NONSEVERABLE FROM THE AGREEMENT TO ARBITRATE CLAIMS. IF THE CLASS ACTION WAIVER IS LIMITED, VOIDED OR FOUND UNENFORCEABLE, THEN THE PARTIES’ AGREEMENT TO ARBITRATE SHALL BE
NULL AND VOID WITH RESPECT TO SUCH PROCEEDING, SUBJECT TO THE RIGHT TO APPEAL THE LIMITATION OR INVALIDATION OF THE CLASS ACTION WAIVER. THE PARTIES ACKNOWLEDGE AND AGREE THAT UNDER NO CIRCUMSTANCES WILL A CLASS ACTION BE ARBITRATED. 

 (H) BY AGREEING TO BINDING ARBITRATION, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY
RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS AGREEMENT TO ARBITRATE, TO THE EXTENT ANY CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY
MAY HAVE, TO A TRIAL BY JURY IN RESPECT OF SUCH CLAIM. THIS WAIVER OF JURY TRIAL SHALL REMAIN IN EFFECT EVEN IF THE CLASS ACTION WAIVER IS LIMITED, VOIDED OR FOUND UNENFORCEABLE. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO
THIS NOTE. WHETHER THE CLAIM IS DECIDED BY ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW.

 [Signatures appear on following page] 

 IN WITNESS WHEREOF, the Company executed this Note as of the date first above written,
intending to create an instrument executed under seal. 
  

			
	LUMBER LIQUIDATORS, INC.,
	a Delaware corporation
		
	By:	 	/s/ Robert M. Lynch                  
            (Seal)
	Name:	 	Robert M. Lynch
	Title:	 	President and Chief Executive Officer

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