Document:

Exhibit 10.3

 Exhibit 10.3 

EXECUTION VERSION 
 PLEDGE AND
SECURITY AGREEMENT 
 This PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is made as of this 15th day of January, 2015,
by and among (i) THE WET SEAL, INC., a Delaware corporation, and the other Persons identified as Pledgors on the signature pages hereto, each as debtor-in-possession (individually, a “Pledgor”, and collectively, the
“Pledgors”), (ii) BANK OF AMERICA, N.A., a national banking association, as L/C Issuer (in such capacity, the “L/C Issuer”), pursuant to the Letter of Credit Agreement referred to below, and (iii) BANK OF
AMERICA, N.A., a national banking association, as administrative agent and collateral agent (in such capacities, the “Pre-Petition Agent”, and together with the L/C Issuer, individually, a “Pledgee”, and
collectively, the “Pledgees”) for itself and the other Credit Parties (as defined in the Pre-Petition Credit Agreement referred to below, the “Pre-Petition Credit Parties”). 

W I T N E S S E T H 
 WHEREAS,
reference is made to that that certain Senior Secured, Super-Priority Debtor-In-Possession Letter of Credit Agreement dated as of the date hereof (as amended, restated, supplemented or otherwise modified and in effect from time to time, the
“Letter of Credit Agreement”) among the Pledgors and the L/C Issuer; 
 WHEREAS, pursuant to the Letter of Credit
Agreement, (i) the L/C Issuer has agreed to issue Letters of Credit for the account of the Pledgors, and (ii) the Pre-Petition Letters of Credit (as defined in the Letter of Credit Agreement) are deemed issued under the Letter of Credit
Agreement, and the Pledgors’ obligations with respect to such Letters of Credit (including, without limitation, the Pre-Petition Letters of Credit) will be secured by Cash Collateral as provided herein; 

WHEREAS, the L/C Issuer and its Affiliates have agreed to provide certain Cash Management Services to the Pledgors (the Obligations in respect
of such Cash Management Services being hereinafter referred to as the “Post-Petition Cash Management Obligations”); 

WHEREAS, the Pledgors wish to grant pledges, assignments and security interests in favor of the L/C Issuer to secure (i) the L/C
Obligations (as defined in the Letter of Credit Agreement), and (ii) the other Obligations (including, without limitation, the Post-Petition Cash Management Obligations); 

WHEREAS, reference is further made to that certain Amended and Restated Credit Agreement dated as of February 3, 2011 (as amended,
restated, supplemented or otherwise modified and in effect from time to time, the “Pre-Petition Credit Agreement”) by, among others, the Pre-Petition Agent and the Pledgors; 

WHEREAS, in connection with the Pre-Petition Credit Agreement, (i) the Pledgors have certain indemnification obligations under the
Pre-Petition Loan Documents (such obligations being hereinafter referred to as the “Pre-Petition Indemnity Obligations”), and (ii) the Pre-Petition Agent and its Affiliates provided certain Cash Management Services (as defined
in the Pre-Petition Credit Agreement) to the Pledgors (the Obligations in respect of such Cash Management Services being hereinafter referred to as the “Pre-Petition Cash Management Obligations”, and together with the Post-Petition
Cash Management Obligations, collectively, the “Cash Management Obligations”); 

 WHEREAS, the Pledgors wish to grant pledges, assignments and security interests in favor of the
Pre-Petition Agent, for the ratable benefit of the Pre-Petition Credit Parties, to secure the Pre-Petition Indemnity Obligations and the Pre-Petition Cash Management Obligations; and 

WHEREAS, it is a condition precedent to (i) the L/C Issuer’s entering into the Letter of Credit Agreement, and (ii) the
Pre-Petition Credit Parties’ maintenance of certain Cash Management Services for the Pledgors, that the Pledgors execute and deliver to the L/C Issuer and the Pre-Petition Agent a pledge and security agreement in substantially the form hereof;

 NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Pledgors and the Pledgees agree as follows: 
 1. Definitions. All capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Letter of Credit Agreement. In addition, as used herein, the following additional terms shall have the following meanings: 

“Cash Collateral” shall mean the Cash Collateral Accounts, the Pledged Cash and any other property at any time assigned or
pledged to the L/C Issuer or the Pre-Petition Agent hereunder (whether described herein or not), all substitutions, additions, interest, and other distributions arising out of or in respect thereof, and all products and proceeds arising out of or in
respect of any of the foregoing. 
 “Payment in Full” shall mean the occurrence of all of the following events: (i) the
Commitment has expired or been terminated, (ii) all Obligations have been paid in full in cash in accordance with Section 1.02(d) of the Letter of Credit Agreement and all Pre-Petition Liabilities have been paid in full in cash in
accordance with Section 1.02(d) of the Pre-Petition Credit Agreement, (iii) all Letters of Credit (including, without limitation, all Pre-Petition Letters of Credit) have terminated and have been reduced to zero and fifteen days have
elapsed after the expiry date with no drawing or other presentment having been made, and (iv) all Unreimbursed Amounts shall have been paid in full in cash. 

“Pledged Cash” shall mean all cash and cash equivalents of the Pledgors in the Cash Collateral Accounts. 

2. Pledge of Cash Collateral. Each Pledgor hereby pledges, assigns, and grants a security interest to each Pledgee in all of such
Pledgor’s right, title and interest in the Cash Collateral. This Agreement and the security interest in and assignment and pledge of the Cash Collateral hereunder are made with and granted to (i) the L/C Issuer, for the benefit of the
Credit Parties, as security for the payment and performance in full of all of the Obligations (including, without limitation, the L/C Obligations and the Post-Petition Cash Management Obligations), and (ii) the Pre-Petition Agent, for the
benefit of the Pre-Petition Credit Parties, as security for the payment and performance in full of all of the Pre-Petition Liabilities (including, without limitation, the Pre-Petition Indemnity Obligations and the Pre-Petition Cash Management
Obligations). Notwithstanding the foregoing, no Cash Collateral provided with respect to Letters of Credit issued following the Effective Date shall be deemed to secure any Pre-Petition Liabilities (other than to the extent relating to Pre-Petition
Letters of Credit). 

  
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 3. Limitations on Right of Withdrawal. The Pledgors shall have no right to withdraw sums
from any Cash Collateral Account or to receive any of the Pledged Cash or other Cash Collateral, except as provided in Section 12. The L/C Issuer and the Pre-Petition Agent shall be entitled to apply the Cash Collateral to pay the Obligations
and the Pre-Petition Liabilities, respectively, as set forth herein and in the DIP Orders. 
 4. Application of Cash Collateral. 

4.1 Charges. The Pledgors shall pay upon demand therefor, or, at the applicable Pledgee’s option, there shall be deducted from the
Cash Collateral Accounts and the Pledged Cash all regular service fees, maintenance fees and transaction charges related to the maintenance of the Cash Collateral Accounts. 

4.2 Application of Cash Collateral to Reduce Obligations. 

(a) The L/C Issuer, on behalf of the Credit Parties, may in its sole discretion from time to time make payment of sums out of
the Cash Collateral Accounts, to the extent that collected funds are available therefor, to reduce the Obligations (including, without limitation, in respect of Letter of Credit Fees, Unreimbursed Amounts and Post-Petition Cash Management
Obligations) in such order and manner as the L/C Issuer shall determine in its sole discretion, without further notice to or consent from the Pledgors, any Committee (as defined in the Interim Borrowing Order) or any other parties in interest and
without further order of the Bankruptcy Court. The Pledgors shall remain liable to the L/C Issuer and the other Credit Parties for all unpaid Obligations to the extent that the Pledged Cash is insufficient to satisfy them in full. 

(b) The Pre-Petition Agent, on behalf of the Pre-Petition Credit Parties, may apply (i) against the Pre-Petition Indemnity
Obligations and Pre-Petition Cash Management Obligations, (x) amounts in the Cash Management/Indemnity Account, and (y) any excess amounts in the L/C Cash Collateral Accounts following satisfaction in full of all L/C Obligations (as
defined in the Pre-Petition Credit Agreement) with respect to Pre-Petition Letters of Credit, and (ii) against the L/C Obligations (as defined in the Pre-Petition Credit Agreement) with respect to Pre-Petition Letters of Credit, amounts in the
L/C Cash Collateral Accounts, in each case of clauses (i) and (ii) as and when they arise, without further notice to or consent from the Pledgors, any Committee (as defined in the Interim Borrowing Order) or any other parties in interest
and without further order of the Bankruptcy Court. Notwithstanding the foregoing, the Pre-Petition Agent shall not apply any amounts in the L/C Cash Collateral Accounts provided with respect to Letters of Credit issued following the Effective Date
against any Pre-Petition Indemnity Obligations or Pre-Petition Cash Management Obligations. The Pledgors shall remain liable to the Pre-Petition Credit Parties for all unpaid Pre-Petition Indemnity Obligations and Pre-Petition Cash Management
Obligations to the extent that the Pledged Cash is insufficient to satisfy them in full. 

  
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 5. Warranty of Title; Authority. Each Pledgor hereby represents and warrants that:
(a) such Pledgor has good and marketable title to the Cash Collateral, subject to no pledges, liens, security interests, charges, options, restrictions or other encumbrances or other adverse claims except the pledge, assignment and security
interest created by this Agreement, (b) other than the entry of the DIP Orders, no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection
with the execution, delivery or performance by, or enforcement against, such Pledgor of this Agreement or any other Loan Document, except for such as have been obtained or made and are in full force and effect, (c) this Agreement has been duly
executed and delivered by each Pledgor, constitutes a legal, valid and binding obligation of such Pledgor, and is enforceable against Pledgor in accordance with its terms, and (d) execution, delivery and performance by each Pledgor of this
Agreement has been duly authorized by all necessary corporate or other organizational action, and does not (i) contravene the terms of any of such Pledgor’s Organization Documents; (ii) conflict with or result in any breach,
termination, or contravention of, or constitute a default under, or require any payment to be made under (A) any Material Indebtedness to which such Pledgor is a party or affecting such Pledgor or the properties of such Pledgor or any of its
Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Pledgor or its property is subject; (iii) result in or require the creation of any Lien upon any asset of any
Pledgor (other than Liens in favor of the Pledgees hereunder or under the DIP Orders); or (iv) violate any Law. Each Pledgor covenants that such Pledgor will defend each Pledgee’s rights and security interest in the Cash Collateral against
the claims and demands of all persons whomsoever. Each Pledgor further covenants that such Pledgor will have the like title to and right to pledge and assign and grant a Lien in the Cash Collateral hereafter pledged or assigned or in which a Lien is
granted to each Pledgee hereunder and will likewise defend each Pledgee’s rights, pledge, assignment and Lien thereof and therein. 
 6.
Transfer, Etc. by Pledgor. Without the prior written consent of each Pledgee, no Pledgor will sell, assign, transfer or otherwise dispose of, or pledge or grant any security interest in or otherwise encumber or restrict any of the Cash
Collateral or any interest therein, except for the pledge and assignment thereof and security interest therein provided for in this Agreement. 

7. Further Assurances. Each Pledgee’s security interest in the Cash Collateral (including, without limitation, the Cash Collateral
Accounts) is a valid, perfected first-priority security interest pursuant to the DIP Orders. Without limiting the foregoing, each Pledgor will execute any and all further documents, financing statements, agreements and instruments, and take all such
further actions that may be required under any applicable Law, or which any Pledgee may reasonably request (including, without limitation, entering into control agreements upon any Pledgee’s request to further evidence the Pledgees’
perfected first priority security interest in the Cash Collateral Accounts), to effectuate the transactions contemplated by this Agreement or the other Loan Documents or to grant, preserve, protect or perfect the Liens created or intended to be
created hereby or the validity or priority of any such Lien, all at the expense of such Pledgor. 

  
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 8. Exoneration. Under no circumstances shall any Pledgee be deemed to assume any
responsibility for or obligation or duty with respect to any part or all of the Cash Collateral or any nature or kind or any matter or proceedings arising out of or relating thereto. No Pledgee shall be required to take any action of any kind to
collect, preserve or protect such Pledgee’s or any Pledgor’s rights in any of the Cash Collateral or against other parties thereto. Any Pledgee’s prior recourse to any part or all of the Cash Collateral shall not constitute a
condition of any demand, suit or proceeding for payment or collection of any of the Obligations or any Pre-Petition Liabilities (including, without limitation, the Pre-Petition Indemnity Obligations or any Cash Management Obligations). 

9. No Waiver, Etc. (a) No failure or delay by any Pledgee in exercising any right or power hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude or impair any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the Pledgees hereunder and under the other Loan Documents and the Pre-Petition Loan Documents, as applicable, are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of any Loan Document or Pre-Petition Loan Document, as applicable, or consent to any departure by Pledgor or any Subsidiary therefrom shall in any event be effective unless the same shall be
permitted by paragraph (c) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. 

(b) The obligations of the Pledgors hereunder shall remain in full force and effect without regard to, and shall not be impaired by,
(a) any exercise or non-exercise, or any waiver, by any Pledgee of any right, remedy, power or privilege under or in respect of any of the Obligations or any collateral security therefor (including this Agreement); (b) any amendment to or
modification of the Letter of Credit Agreement or the Pre-Petition Credit Agreement or any of the other documents, agreements or instruments now existing or hereafter arising relating thereto or any of the Obligations or the Pre-Petition
Liabilities; (c) any amendment to or modification of any instrument (other than this Agreement) securing any of the Obligations or the Pre-Petition Liabilities; or (d) the taking of additional security for, or any other assurances of
payment of, any of the Obligations or the Pre-Petition Liabilities or the release or discharge or termination of any security or other assurances of payment or performance for any of the Obligations or the Pre-Petition Liabilities; whether or not
the Pledgors shall have notice or knowledge of any of the foregoing. 
 (c) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by each Pledgor and each Pledgee. Each Pledgor hereby waives acceptance and notice of acceptance of this Agreement
and presentment, notice of dishonor and protest of all instruments, included in or evidencing any of the Obligations or any of the Cash Collateral, and any and all other notices and demands whatsoever. 

10. Notice, Etc. All notices, requests and other communications hereunder shall be given as provided for in the Letter of Credit
Agreement or the Pre-Petition Credit Agreement, as applicable. 
 11. Expenses. All Credit Party Expenses (as defined in each of the
Pre-Petition Credit Agreement and the Letter of Credit Agreement) and all other Obligations (including, without limitation, in respect of (i) indemnities arising pursuant to Section 9.04 of the Letter of Credit Agreement,
(ii) Pre-Petition Indemnity Obligations, and (iii) Cash Management Obligations) shall be payable by the Pledgors and shall be secured hereby. 

  
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 12. Termination; Release. 

(a) Subject to clauses (b), (c) and (d) of this Section 12, (i) this Agreement, the Liens in favor of each
Pledgee (for the benefit of the Credit Parties or the Pre-Petition Credit Parties, as applicable) and all other security interests granted hereby shall terminate with respect to all Obligations and Pre-Petition Liabilities when Payment in Full shall
have occurred, and (ii) the Pledgees shall deliver all remaining Cash Collateral to the Applicant Representative (or in accordance with applicable Law) within ten (10) Business Days following Payment in Full, provided,
however, that (A) this Agreement, the Lien in favor of each Pledgee (for the benefit of the Credit Parties or the Pre-Petition Credit Parties, as applicable) and all other security interests granted hereby shall be reinstated if at any
time payment, or any part thereof, of any portion of the Obligations or Pre-Petition Liabilities is rescinded or must otherwise be restored by any Credit Party, any Pre-Petition Credit Party or any Pledgor upon the bankruptcy or reorganization of
any Pledgor or otherwise, and (B) in connection with the termination of this Agreement and the release and termination of the security interests in the Cash Collateral, each Pledgee may require such indemnities and collateral security as it
shall reasonably deem necessary or appropriate to protect the Credit Parties or the Pre-Petition Credit Parties, as applicable, against (x) loss on account of credits previously applied to the Obligations or Pre-Petition Liabilities, as
applicable, that may subsequently be reversed or revoked, and (y) any Obligations that may thereafter arise under Section 9.04 of the Letter of Credit Agreement or any Pre-Petition Liabilities that may thereafter arise under
Section 10.04 of the Pre-Petition Credit Agreement. 
 (b) In the event of the returning undrawn to the L/C Issuer of
any Letter of Credit or the passage of fifteen days following the expiry date of any Letter of Credit with no drawing or other presentment having been made, if no Event of Default under any of Sections 8.01(a), (b), (h), (i), (n) or (v) of
the Letter of Credit Agreement then exists, the Pledgees shall remit to the Applicant Representative an amount equal to 103% of the face amount of such Letter of Credit within five (5) Business Days of such event and the Lien thereon shall
automatically be released without any further action by any Pledgee or any Pledgor. 
 (c) If as of the Challenge Period
Termination Date a party in interest with requisite standing (including any Committee) has filed a Challenge Proceeding against the Pre-Petition Credit Parties related to the Pre-Petition Debt and/or Pre-Petition Liens, then the Cash
Management/Indemnity Account and the Pledged Cash therein shall be maintained until final resolution of such Challenge Proceeding, subject to the provisions of Paragraph 12(d)(iv) and Paragraph 38 of the Interim Borrowing Order. If as of the
Challenge Period Termination Date no party has filed a Challenge Proceeding against the Pre-Petition Credit Parties related to the Pre-Petition Debt and/or Pre-Petition Liens, whether in the Chapter 11 Case or independently in another forum, court,
or venue, then the Cash Management/Indemnity Account shall thereafter secure only the Cash Management Obligations. 

  
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 (d) If following the final resolution of all Challenge Proceedings described in
the first sentence of Section 12(c) above or, if no Challenge Proceeding has been filed, following the Challenge Period Termination Date, (i) the Pledgors have terminated Bank of America’s cash management and treasury management
services to the Pledgors, and (ii) all Cash Management Obligations (including, without limitation, all fees, costs and expenses with respect thereto) in connection with such services have then been paid, then all funds then on deposit in the
Cash Management/Indemnity Account net of (x) any remaining unpaid Cash Management Obligations and (y) any amounts previously debited from such account shall be released to the Applicant Representative not later than ten (10) Business
Days following the later of (i) the date of such termination, and (ii) the Lien Release Date, and the Lien on such funds shall automatically be released without any further action by any Pledgee or any Pledgor. 

(e) Capitalized terms used in the foregoing Sections 12(c) and 12(d) but not defined in the Letter of Credit Agreement or
herein shall have the meanings assigned to such terms in the Interim Borrowing Order. 
 13. Governing Law; Consent to Jurisdiction.
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE BANKRUPTCY CODE AND THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THE BANKRUPTCY COURT AND OF ANY COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN THE BANKRUPTCY COURT, SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY PLEDGEE MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

14. Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY AND 

  
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WHETHER INITIATED BY OR AGAINST ANY SUCH PERSON OR IN WHICH ANY SUCH PERSON IS JOINED AS A PARTY LITIGANT). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 15.
Miscellaneous. The headings of each section of this Agreement are for convenience only and shall not define or limit the provisions thereof. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that no Pledgor may assign or otherwise transfer any of its rights or obligations hereunder or under any other Loan Document without the prior written consent of the L/C Issuer and
the Pre-Petition Agent. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other
Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close
as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. This Agreement may be executed
in any number of counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan
Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy, pdf or other electronic transmission shall be as effective as delivery of a manually executed counterpart of this Agreement. 

16. Relationship with DIP Orders. In the event of any inconsistency between the terms of the DIP Orders and this Agreement, the terms of
the DIP Orders shall control. 
 [remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have caused this Agreement
to be executed as of the date first above written. 
  

			
	PLEDGORS:
	
	THE WET SEAL, INC., as a Pledgor and as a Debtor-in-Possession
		
	By:	 	 /s/ Edmond Thomas

	Name:	 	Edmond Thomas
	Title:	 	Chief Executive Officer
	
	THE WET SEAL RETAIL, INC., as a Pledgor and as a Debtor-in-Possession
		
	By:	 	 /s/ Edmond Thomas

	Name:	 	Edmond Thomas
	Title:	 	Chief Executive Officer
	
	WET SEAL CATALOG, INC., as a Pledgor and as a Debtor-in-Possession
		
	By:	 	 /s/ Edmond Thomas

	Name:	 	Edmond Thomas
	Title:	 	Chief Executive Officer
	
	WET SEAL GC, LLC, as a Pledgor and as a Debtor-in-Possession
		
	By:	 	The Wet Seal, Inc., its Sole Member
		
	By:	 	 /s/ Edmond Thomas

	Name:	 	Edmond Thomas
	Title:	 	Chief Executive Officer

 Signature Page to Pledge and Security Agreement 

 
			
	L/C ISSUER:
	
	BANK OF AMERICA, N.A. 
		
	By:	 	 /s/ Brian Lindblom

	Name:	 	Brian Lindblom
	Title:	 	Vice President
	
	PRE-PETITION AGENT:
	
	BANK OF AMERICA, N.A. 
		
	By:	 	 /s/ Brian Lindblom

	Name:	 	Brian Lindblom
	Title:	 	Vice President

 Signature Page to Pledge and Security AgreementExhibit 10.4

 Exhibit 10.4 

EXECUTION COPY 

PLAN SPONSORSHIP AGREEMENT 

This Plan Sponsorship Agreement (this “Agreement”), dated as of January 15, 2015 (the “Execution
Date”), is entered into by and among (1) The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet Seal Catalog, Inc., and Wet Seal GC, LLC (individually, a “Company Party”, and collectively, the “Company”)
and (2) B. Riley Financial, Inc. and its affiliates or designees selected in its sole discretion in accordance with section 26 of this Agreement (collectively, the “Sponsor” and, together with the Company, the
“Parties”). 
 WHEREAS, the Parties previously executed the Exclusivity and Work Fee Agreement dated January 9, 2015
(including all exhibits, appendices, and attachments thereto, the “Term Sheet”), which outlines certain terms and conditions relating to a restructuring of the Company’s affairs subject to definitive documentation. 

WHEREAS, the Parties have agreed to the restructuring of the Company’s affairs on the terms and conditions set forth in this Agreement
(including all transactions contemplated by this Agreement in connection therewith, the “Restructuring”), which will be effected in voluntary bankruptcy cases (collectively, the “Bankruptcy Case”) commenced by the
Company Parties under chapter 11 of title 11 of the United States Code, as amended (the “Bankruptcy Code”). 
 WHEREAS, the
Company has entered into certain commitments with respect to debtor-in-possession financing (the “DIP Financing”). 
 NOW,
THEREFORE, in consideration of the premises and mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as
follows: 
 1. Bankruptcy Actions. 
 (a)
The Parties shall take the following actions and/or obtain the following relief by the specified deadlines: 
 (i) by January 15, 2015,
the Company shall (A) commence the Bankruptcy Case in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) and (B) file a motion to approve the Company’s assumption of this
Agreement; 
 (ii) by February 6, 2015, the Company shall (A) obtain entry of an order by the Bankruptcy Court approving assumption
of this Agreement and specifically approving the allowance and payment of certain fee and expenses of the Sponsor as administrative expenses consistent with section 2(d)(iv) hereof (the “PSA Order”), (B) provide a list to the
Sponsor reflecting all executory contracts necessary or desirable for the operation of the Company’s business (the “Contracts”) and unexpired leases (the “Leases”) to which the Company is a party, along with a
list of any and all projected cure and reinstatement costs or expenses (the “Cure Costs”) of or relating to the potential assumption of each Contract and 

  
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Lease, and (C) file a reorganization plan that is consistent with the terms set forth in this Agreement and/or is otherwise reasonably acceptable to the Sponsor and the Company (the
“Plan”) and an accompanying disclosure statement (the “Disclosure Statement”); 
 (iii) by
February 20, 2015, the Company shall provide any supplements to the list of Contracts, including associated Cure Costs; 
 (iv) by
March 20, 2015, the Company shall obtain entry of an order by the Bankruptcy Court approving the Disclosure Statement and granting related relief, including, without limitation, approval of applicable solicitation procedures; 

(v) by April 1, 2015, the Sponsor shall deliver to the Company a list of designated Contracts and Leases to be assumed on the Effective
Date pursuant to the Plan (the “Designated Contracts”); 
 (vi) by April 7, 2015, the Company shall deliver a notice to
each of the counterparties of the Designated Contracts providing each such counterparty with notice that the respective Designated Contract may be assumed by the Company subject to payment of the estimated Cure Cost, and informing such counterparty
that objections to the proposed assumption, including objections to the estimated Cure Cost (such objections, “Assumption Objections”) must be filed with the Bankruptcy Court and submitted to the Parties no later than 4:00 p.m.
prevailing Eastern time on April 21, 2015; 
 (vii) by April 10, 2015, the Sponsor shall deliver to the Company the new charter,
bylaws, and stockholders agreement of the Reorganized Company, as well as the members of the board of directors of the Reorganized Company accompanied by any disclosures required by Bankruptcy Code section 1129(a)(5) in connection therewith; 

(viii) by April 15, 2015, the Company shall file a supplement to the Plan (a “Plan Supplement”) (A) setting forth
the Designated Contracts as well as the estimated Cure Cost for each such Designated Contract, (B) attaching the new charter, bylaws, and stockholders agreement of the Reorganized Company, and (C) identifying the members of the board of
directors of the Reorganized Company; 
 (ix) by April 30, 2015, the Company shall (A) obtain entry of an order by the Bankruptcy
Court confirming the Plan (such order, the “Confirmation Order”), and (B) obtain entry of an order of the Bankruptcy Court authorizing and approving the assumption of the Designated Contracts (excluding any Designated Contracts
which are the subject of outstanding Assumption Objections pursuant to section 2(f) below) and fixing the Cure Costs for the Designated Contracts (the “Assumption Order”);1 and

  

	1 	Subject to section 2(f) below, the hearing to consider entry of the Confirmation Order and entry of the Assumption Order shall be scheduled for the same date (the “Confirmation Hearing”).

  
 2 

 (x) the Company shall obtain interim and final orders approving that certain postpetition
financing set forth in the DIP Financing by the deadlines, on the terms, and subject to the conditions set forth in the DIP Financing. 
 (b)
The Company agrees and covenants that, on the terms and subject to the conditions set forth in this Agreement, it will 
 (i) prepare, as
soon as reasonably practicable after the date of this Agreement a draft Plan and a draft Disclosure Statement, and after such preparation promptly provide such Plan and Disclosure Statement, in draft form, to the Sponsor and the Sponsor’s legal
and financial advisors for review and comment a reasonable period of time in advance of any filing thereof; 
 (ii) include in the approved
Disclosure Statement a statement that the Company’s board of directors has recommended the acceptance of the Plan by the stakeholders of the Company who are entitled to vote on the Plan; 

(iii) in consultation with the Sponsor, use its commercially reasonable efforts to commence solicitation of the Plan as soon as practicable
following entry of an order by the Bankruptcy Court approving the Disclosure Statement, as provided in any such Bankruptcy Court order; 

(iv) prepare and provide the proposed Confirmation Order, in draft form, to the Sponsor and the Sponsor’s legal and financial advisors for
review and comment a reasonable period of time in advance of any filing thereof and, subject to the prior written consent of the Sponsor to the form and substance of the Confirmation Order (which consent shall not be unreasonably withheld,
conditioned or delayed) and consultation with the Sponsor, use its commercially reasonable efforts to file with the Bankruptcy Court the proposed Confirmation Order promptly following the end of the period to solicit acceptances of the Plan; 

(v) diligently pursue confirmation and consummation of the Plan; 

(vi) reasonably cooperate with the Sponsor and the Sponsor’s legal advisor in connection with any discovery and hearings in connection
with this Agreement, the Disclosure Statement, and/or the Plan and any transactions contemplated by such documents; 

  
 3 

 (vii) use commercially reasonable efforts to provide drafts of any notices, motions, pleadings,
filings, or other documents to be filed by the Company in the Bankruptcy Case to the Sponsor and the Sponsor’s legal advisor a reasonable period of time (or, in the event of an emergency, the longest period of time practicable under the
circumstances) prior to the date on which the Company intends to file such documents with the Bankruptcy Court, which such documents must be reasonably acceptable to the Sponsor and the Company and consistent with this Agreement; 

(viii) without duplication or limitation of the foregoing, use commercially reasonable efforts to provide drafts of any proposed modifications,
amendments, supplements, schedules, exhibits, and other documents related to the Plan, the Restructuring, the Disclosure Statement or their terms and conditions (collectively, the “Plan Related Documents”) to the Sponsor and the
Sponsor’s legal advisor a reasonable period of time prior to the date on which the Company intends to file such documents with the Bankruptcy Court, and any such Plan Related Documents must be reasonably acceptable to the Sponsor and the
Company and consistent with this Agreement; 
 (ix) timely file a formal objection and prosecute in good faith such objection to any motion
filed with the Bankruptcy Court seeking the entry of an order (A) modifying or terminating the Company’s exclusive right to file and/or solicit acceptances of a plan of reorganization pursuant to section 1121 of the Bankruptcy Code,
(B) directing the appointment of an examiner with expanded powers or a trustee, (C) converting the Bankruptcy Case of any Company Party to a case under chapter 7 of the Bankruptcy Code, or (D) dismissing the Bankruptcy Case of a
Company Party. 
 (c) The Sponsor agrees and covenants that, on the terms and subject to the conditions set forth in this Agreement, it and
its affiliates will: 
 (i) upon execution of this Agreement and through the Bankruptcy Case, continue to support the Plan; 

(ii) following the commencement of the Bankruptcy Case, not (1) object to the Plan or the Disclosure Statement or the consummation of the
Plan, or any efforts to obtain acceptance of, and to confirm and implement, the Plan; (2) initiate any legal proceedings that are inconsistent with, or that would delay, prevent, frustrate or impede, the approval, confirmation or consummation
of the Plan or the Disclosure Statement or the transactions outlined therein or otherwise commence any proceedings to oppose any of the transactions contemplated by the Plan or the Disclosure Statement, or take any other action that is barred by
this Agreement; (3) vote for, consent to, support or participate in the formulation of any other restructuring, any other transaction involving the Company or its assets, or any plan of reorganization (with the sole exception of the Plan) or
liquidation under applicable bankruptcy or insolvency laws, whether domestic or foreign, in respect of the Company; (4) directly or indirectly seek, solicit, support, formulate, entertain, encourage or engage in discussions, or enter into any
agreements relating to, any restructuring, plan of reorganization, proposal or offer of 

  
 4 

 
dissolution, winding up, liquidation, reorganization, merger, transaction, sale, disposition or restructuring of the Company (or any of its assets or stock) other than the Plan (collectively,
clauses (3) and (4) describe an “Alternative Plan”); (5) engage in or otherwise participate in any negotiations regarding any Alternative Plan, enter into any letter of intent, memorandum of understanding, agreement
in principle or other agreement relating to any Alternative Plan; (6) solicit, encourage, or direct any person to undertake any action prohibited by clauses (1) through (5) of this subsection (c)(ii); or (7) permit any of its, or
its controlled affiliates’, officers, directors, managers, employees, partners, representatives and agents to undertake any action prohibited by clauses (1) through (6) of this subsection (c)(ii); and 

(iii) reasonably cooperate with the Company and the Company’s legal advisor in connection with any discovery and hearings in connection
with this Agreement, the Disclosure Statement, and/or the Plan and any transactions contemplated by such documents. 
 2. The Plan and Certain Related
Matters. The Plan and all related documents, including, without limitation, the Disclosure Statement, and the motion and order relating to approval of this Agreement, must be in form and substance reasonably acceptable to the Sponsor and the
Company and not inconsistent with the terms and conditions set forth in this Agreement. The Plan shall provide for the following, among other things: 

(a) Effective Date. The effective date of the Plan (the “Effective Date”) shall occur as soon as practicable but in no
event later than May 15, 2015. 
 (b) Conditions Precedent to the Effective Date. The Plan shall include the following conditions
precedent (each a “Condition Precedent”) which must be satisfied or waived prior to the occurrence of the Effective Date. 

(i) The Plan and any and all Plan Supplements, including any amendments or modifications thereto, shall be reasonably acceptable to the Sponsor
and the Company. 
 (ii) The Confirmation Order shall have been entered, shall not be subject to any stay on enforcement and be in form and
substance reasonably satisfactory to the Sponsor and the Company. The Confirmation Order shall provide that, among other things, the Company or the Reorganized Company, as appropriate, is authorized to take all actions necessary or appropriate to
consummate the Plan, including, without limitation, entering into, implementing, and consummating the contracts, instruments, releases, leases, indentures, and other agreements or documents created in connection with or described in the Plan. 

(iii) All documents and agreements necessary to implement the Plan, including, without limitation, the Exit Facility (as defined below) shall
have (A) been tendered for delivery, and (B) been effected or executed. All conditions precedent to all such documents and agreements shall have been satisfied or waived pursuant to the terms and conditions of such documents or agreements,
as applicable. 

  
 5 

 (iv) All actions, documents, certificates, and agreements necessary to implement this Plan shall
have been effected or executed and delivered to the required parties and, to the extent required, filed with the applicable governmental units in accordance with applicable laws or regulations. 

(v) As of the Effective Date, there shall be no existing or continuing events of default under the DIP Financing that has not been waived in
writing. 
 (c) Transactions Structure. The transactions contemplated by the Plan shall be structured in an efficient manner
(including, without limitation, from a tax perspective and given the intent that the Company, as reorganized pursuant to the Plan (the “Reorganized Company”), not be a “public” company as of the Effective Date) and
otherwise reasonably acceptable to the Sponsor, in consultation with the Company. 
 (d) Treatment of Claims. Allowed claims shall be
treated in a manner that satisfies the requirements of section 1129 of the Bankruptcy Code, including, without limitation, as follows: 
 (i)
Secured Claims. Except to the extent that a particular claimant agrees to a less favorable treatment approved by the Sponsor, secured claims allowed under section 506(a) of the Bankruptcy Code shall be unimpaired and reinstated upon the
Effective Date under the Plan consistent with the requirements of section 1129 of the Bankruptcy Code. 
 (ii) Priority Claims. Except
to the extent that a particular claimant agrees to a less favorable treatment approved by the Sponsor, allowed claims that are entitled to priority under section 507(a) of the Bankruptcy Code will be paid in full in cash or treated as otherwise
provided for under the Bankruptcy Code. 
 (iii) Non-Priority Unsecured Claims. Except to the extent that a particular claimant agrees
to a less favorable treatment approved by the Sponsor, holders of non-priority unsecured claims allowed under section 502 of the Bankruptcy Code (the “Unsecured Claims”), including, without limitation, obligations arising under or
in connection with that certain convertible senior note issued on March 26, 2014, will receive their pro rata shares of the Non-Sponsor Stock (as defined below) in satisfaction of such Unsecured Claims, unless a claimant participates in the
Convenience Class (as defined below). 
  

	 	(1)	 The Plan shall provide for treatment of a class of Unsecured Claims that, for administrative convenience, will receive treatment different from the
Unsecured Claims in the Unsecured Claims class (such class receiving different treatment, the “Convenience Class”). The Convenience Class will comprise all Unsecured Claims of a single holder of a type that would otherwise
be included in the Unsecured Claims Class that are either (i) a 

  
 6 

	 	
maximum dollar amount or less in the aggregate or (ii) greater than such maximum dollar amount in the aggregate but as to which such holder has made an election (the “Convenience
Class Election”) on the ballot for voting on the Plan to have such claim treated as a claim in the Convenience Class (all such claims, the “Convenience Claims”). The parties shall negotiate in good faith regarding the
maximum dollar amount to be set forth in the Plan, which shall take into account the working capital needs of the Reorganized Company as of the Effective Date. 

  

	 	(iv)	Administrative Expenses. Unless otherwise agreed by the holder thereof, the Plan will provide for the payment in full of all administrative expenses allowed under section 503 of the Bankruptcy Code consistent
with section 1129(a)(9) of the Bankruptcy Code. The Sponsor’s reasonable fees and expenses incurred in connection with the Bankruptcy Case, including, without limitation, its legal fees, are actual and necessary costs and expenses of preserving
the estates under section 503 of the Bankruptcy Code and must therefore be allowed and paid as administrative expenses in the Bankruptcy Case. Following entry of the PSA Order, the Sponsor or the Sponsor’s legal advisor shall periodically
invoice (with reasonable detail concerning hours, rates and description of work performed, subject to redaction to preserve attorney-client privilege) the Company for legal fees due and owing, and the Company shall tender payment of such amounts due
and owing within fifteen (15) days of receipt of such invoice. To the extent that any amounts remain due and owing pursuant to the Term Sheet, such amounts shall also be allowed and paid as administrative expenses in the Bankruptcy Case
following entry of the PSA Order. Any remaining funds previously deposited pursuant to the Term Sheet shall be applied against the amounts incurred pursuant to this Agreement. 

(e) Cancellation of Equity Securities. On the Effective Date, all previously issued and outstanding equity securities of the Company
(and all rights to convert, exchange, exercise for, or otherwise receive equity securities of the Company) shall be deemed void, cancelled, and of no further force and effect. 

(f) Executory Contracts and Unexpired Leases. The Sponsor, in consultation with the Company, shall determine the treatment of Contracts
and Leases pursuant to the terms hereof and in a manner consistent with the Bankruptcy Code. All Contracts and Leases which are not Designated Contracts as of the Effective Date shall be deemed rejected as of such date. At any time before the
effective date of assumption of a Designation Contract, the Sponsor may, in its sole discretion, withdraw or modify its designation of a Designation Contract for assumption by providing notice via email to the Company and its counsel. 

(i) The Company shall promptly inform the Sponsor of any formal or informal Assumption Objection. In the event that the Company, the Sponsor,
and such objecting counterparty cannot resolve an Assumption Objection prior to the Confirmation Hearing, the Assumption Objection will be heard during the Confirmation Hearing, or at such later date as the Parties and the objecting counterparty may
fix and agree and the Bankruptcy Court approves. 

  
 7 

 (ii) In the event that any outstanding Assumption Objection remains unresolved following the
Confirmation Hearing, the Sponsor reserves the right to direct the Company to reject the Designated Contract which is the subject of such Assumption Objection at any time prior to entry of an order by the Bankruptcy Court authorizing the assumption
of such Designated Contract. The Plan shall provide that rejection of the Designated Contract shall be effective upon the tenth (10th) day following delivery of a rejection notice to the contract counterparty. 

(g) Claims Resolution. Resolutions of claims will be subject to the terms and procedures set forth in the Plan, which, among other
things, will (i) require that the Reorganized Company file any and all objections to claims during the ninety (90)-day period following the Effective Date (unless such period is extended by the Bankruptcy Court) and (ii) provide that any
settlements of claims approved by the Bankruptcy Court prior to the Effective Date will be binding on all parties. 
 (h) Avoidance
Actions. The Plan shall provide that the Reorganized Company shall waive any avoidance actions that the Company or the estates may have against holders of Unsecured Claims that agree in writing to continue to participate in and extend trade
credit in connection with the go-forward operations of the Reorganized Company. All other avoidance actions will be reserved and prosecuted by the Reorganized Company in its reasonable discretion. 

(i) Corporate Governance. The Plan shall designate the number of members of the board of directors of the Reorganized Company (the
“New Board”), as such number is determined by the Sponsor. At a minimum, the New Board shall consist of five (5) members, including the Chief Executive Officer of the Reorganized Company, one (1) member to be nominated by
the official committee of unsecured creditors appointed by the United States Trustee in the Bankruptcy Case (the “Committee”) subject to the consent of the Sponsor (such consent not to be unreasonably withheld, conditioned or
delayed)), and three (3) additional members to be selected by the Sponsor; provided that if the Committee fails to nominate a member to the New Board, the Sponsor shall be permitted to appoint an additional member to the New Board in lieu of
the Committee’s nominee. The members of the New Board will be identified in the Plan Supplement, accompanied by any disclosures required by Bankruptcy Code section 1129(a)(5) in connection therewith. Under the Plan, the Reorganized Company will
implement a new charter, bylaws, and stockholders agreement, all of which must be acceptable to the Sponsor in its reasonable discretion, and all of which will be filed in the Plan Supplement. 

(j) Management Options. On or after the Effective Date, the New Board will support the implementation of a stock-based management
incentive plan which will provide for distributions not exceeding 10%, in the aggregate, on a fully-diluted basis. 

  
 8 

 (k) Exit Facility. The Reorganized Company shall obtain access to a revolving credit
facility (the “Exit Facility”) to fund its operations on and after the Effective Date. The Sponsor shall be responsible for procuring the Exit Facility, the Company shall reasonably cooperate with the Sponsor’s efforts to
procure the Exit Facility and the Exit Facility shall be in an amount and on terms and conditions reasonably acceptable to the Sponsor. 
 3. Equity in
Reorganized Company. On the Effective Date, equity in the Reorganized Company will be distributed as follows: 
 (a) The Sponsor will
purchase 80% of newly issued common stock in the Reorganized Company in consideration of $20 million in the form of (x) conversion of the principal amount of the DIP Financing into equity and (y) cash; and 

(b) in full satisfaction of the Unsecured Claims that are not otherwise settled or resolved under the terms of the Plan, holders of such
Unsecured Claims will receive collectively 20% of newly issued common stock in the Reorganized Company (the “Non-Sponsor Stock”). 
 4.
Exclusivity. 
 (a) As used in this Agreement, “Alternative Transaction Proposal” means, other than the transactions
contemplated by this Agreement, any offer, proposal, or inquiry relating to, or any third-party indication of interest in, any of the following: 

(i) any purchase, sale, or other disposition of all or a material portion of the Company’s business or assets, except for the sale of
assets in the ordinary course of business; 
 (ii) any issuance, sale, or other disposition of any equity interest (including, without
limitation, securities or instruments directly or indirectly convertible or exchangeable into equity) in the Company (by the Company) or any subsidiary of the Company primarily engaged in the Company’s business (a “Business
Subsidiary”) (other than the issuance of stock options or similar instruments to existing directors, officers, or employees in the ordinary course of business consistent with past practice or otherwise pursuant to existing contractual
obligations); 
 (iii) any merger, acquisition, consolidation, or similar business combination transaction involving the Company or a
Business Subsidiary; or 
 (iv) any other transaction the purpose or effect of which would be reasonably expected to, or which would, prevent
or render impractical, or otherwise frustrate or impede in any material respect, any of the transactions contemplated by this Agreement. 

  
 9 

 (b) As used in this Agreement, “Superior Proposal” means a bona fide written
Alternative Transaction Proposal that the Company concludes in good faith, after consultation with its financial advisors and outside legal counsel, taking into account all legal, financial, regulatory, and other aspects of the proposal and the
person or entity making the proposal (including any break-up fees, expense-reimbursement provisions, and conditions to consummation), (i) is more favorable, from a financial point of view, to the Company’s stakeholders than the
transactions contemplated by this Agreement and (ii) is reasonably likely to be consummated on a timely basis on the terms proposed (taking into account financing, among other things). 

(c) Except as expressly permitted by this Agreement, from and after the Execution Date, the Company agrees that it will not, and will cause
each entity comprising the Company, and will use commercially reasonable efforts to cause its controlled affiliates, directors, officers, employees, advisors, and any other persons acting under the direction of any of them, and the representatives
of any of the foregoing (collectively, all such entities and persons, the “Company Representatives”) not to, initiate or solicit inquiries or proposals with respect to, or engage or participate in any negotiations concerning, or
provide any confidential or nonpublic information or data to, or have or participate in any discussions with, any person or entity relating to, or approve or recommend, or propose to approve or recommend, or execute or enter into, any letter of
intent, agreement in principle, or other agreement related to, any Alternative Transaction (an “Alternative Transaction Agreement”). This section 4(c) shall not prohibit the Company from furnishing nonpublic information
regarding the Company and its subsidiaries to, or entering into discussions and negotiations with, any person or entity in response to an Alternative Transaction Proposal that is, or could reasonably be expected to result in, a Superior Proposal
that is submitted to the Company by such person or entity (and not withdrawn prior to the furnishing of such information or such discussions) if (i) neither the Company nor any Company Representative shall have violated any of the restrictions
set forth in this section 4, (ii) the Company receives from such person or entity an executed confidentiality agreement containing customary limitations on the use and disclosure of all nonpublic written and oral information furnished to
such person or entity by or on behalf of the Company, and (iii) within one (1) business days after furnishing any such nonpublic information to such person or entity, the Company furnishes such nonpublic information to the Sponsor (to the
extent such nonpublic information has not been previously furnished by the Company to the Sponsor) and gives the Sponsor written notice of the identity of such person or entity and of the Company’s intention to enter into discussions with such
person or entity. The Company shall keep the Sponsor reasonably informed with respect to the status of any such Alternative Transaction Proposal, inquiry, indication of interest, or request and any modification or proposed modification thereto.
Without limiting the generality of the foregoing, the Company acknowledges and agrees that any violation of or the taking of any action inconsistent with any of the restrictions set forth in the preceding sentence by any Company Representative,
whether or not such Company Representative is purporting to act on behalf of the Company shall be deemed to constitute a breach of this section 4 by the Company. 

(d) Notwithstanding anything to the contrary herein, the Company may terminate this Agreement in order to enter into a definitive Alternative
Transaction Agreement with respect to a Superior Proposal that did not result from a breach of this section 4, subject to compliance with the following notice requirements and payment of the Break-Up Fee

  
 10 

 
(defined below) in accordance with the terms of this Agreement, if (i) the Company has received an Alternative Transaction Proposal that, in the good-faith determination of the board of
directors of the Company, constitutes a Superior Proposal, after having complied with the following notice requirements, and (ii) the board of directors of the Company determines in good faith, after consultation with its outside legal counsel,
that failure to take such action would be inconsistent with the fiduciary obligations of the board of directors under applicable law (such entitlement to terminate the Agreement, the “Superior Proposal Company Termination Right”).
The Company shall not be entitled to exercise the Superior Proposal Company Termination Right unless: 
  

	 	(i)	the Company promptly notifies the Sponsor, in writing, at least three (3) Business Days (the “Notice Period”) before entering into an Alternative Transaction Agreement, of its intention to take
such action with respect to a Superior Proposal, which notice shall state expressly that the Company has received an Alternative Transaction Proposal that the Company intends to declare a Superior Proposal and/or that the Company intends to enter
into an Alternative Transaction Agreement; 

  

	 	(ii)	the Company attaches to such notice the most current version of the proposed Alternative Transaction Agreement (which version shall be updated on a prompt basis) and the identity of the third party making such Superior
Proposal; 

  

	 	(iii)	the Company shall, and shall cause the Company Representatives to, during the Notice Period, negotiate with the Sponsor in good faith to make such adjustments in the terms and conditions of this Agreement so that such
Alternative Transaction Proposal ceases to constitute a Superior Proposal, if the Sponsor, in its discretion, proposes to make such adjustments (it being agreed that in the event that, after commencement of the Notice Period, there is any material
revision to the terms of a Superior Proposal, including, any revision in price, the Notice Period shall be extended, if applicable, to ensure that at least two (2) business days remain in the Notice Period subsequent to the time the Company
notifies the Sponsor of any such material revision (it being understood that there may be multiple extensions)); and 

  

	 	(iv)	the Company determines in good faith, after consulting with outside legal counsel and its financial advisor, that such Alternative Transaction Proposal continues to constitute a Superior Proposal after taking into
account any adjustments made by the Sponsor during the Notice Period in the terms and conditions of this Agreement. 

 (e)
Notwithstanding anything to the contrary set forth in this Agreement, the Company’s board of directors may terminate this Agreement following the occurrence of an event, fact, development or occurrence after the date hereof that did not result
from a breach of this section 4 (an “Intervening Event”) if, subject to compliance with the following notice requirements and payment of the Break-Up Fee (defined below) in 

  
 11 

 
accordance with the terms of this Agreement, the board of directors of the Company determines in good faith, after consultation with its outside legal counsel, that failure to take such action
would be inconsistent with the fiduciary obligations of the board of directors under applicable law because the Intervening Event makes it unlikely that either (x) the Company will maximize value for stakeholders by consummating the Plan or
(y) the Company can consummate the Plan within a reasonable period of time (such entitlement to terminate the Agreement, the “Intervening Event Company Termination Right”). The Company shall not be entitled to exercise the
Intervening Event Company Termination Right unless: 
  

	 	(i)	the Company promptly notifies the Sponsor, in writing, at least five (5) Business Days before terminating this Agreement, of its intention to take such action with respect to an Intervening Event, which notice
shall state expressly the Intervening Event as well as provide written notice and supporting documentation articulating the impact of the Intervening Event; 

  

	 	(ii)	the Company shall, and shall cause the Company Representatives to, during the Notice Period, negotiate with the Sponsor in good faith (including, without limitation, promptly responding to the Sponsor’s reasonable
requests for financial and other information regarding the Intervening Event and the impact of the Intervening Event) to make such adjustments in the terms and conditions of this Agreement so that the failure of the board of directors of the Company
to terminate this Agreement in light of such Intervening Event would not be inconsistent with the fiduciary obligations of the board of directors under applicable law, if the Sponsor, in its discretion, proposes to make such adjustments (it being
agreed that in the event that, after commencement of the Notice Period, there is any material revision to the Intervening Event, the Notice Period shall be extended, if applicable, to ensure that at least three (3) business days remain in the
Notice Period subsequent to the time the Company notifies the Sponsor of any such material revision (it being understood that there may be multiple extensions)); and 

 

	 	(iii)	the Company determines in good faith, after consulting with outside legal counsel and its financial advisor, that the failure of the board of directors of the Company to terminate this Agreement in light of such
Intervening Event would be inconsistent with the fiduciary obligations of the board of directors under applicable law because the Intervening Event makes it unlikely that either (x) the Company will maximize value for stakeholders by
consummating the Plan or (y) the Company can consummate the Plan within a reasonable period of time (such entitlement to terminate the Agreement, after taking into account any adjustments made by the Sponsor during the Notice Period in the
terms and conditions of this Agreement). 

  
 12 

 (f) For the avoidance of doubt, and notwithstanding anything to the contrary herein, this section
4 shall not prohibit, limit, or otherwise restrict the Company from participating in discussions with, or providing any information to, any official committee appointed in the Bankruptcy Case so long as the Company does not otherwise violate the
prohibitions contained in this section 4. 
 5. Break-up Fee. The Company acknowledges and agrees that the Sponsor would not have undertaken the
obligations set forth in this Agreement without the Company’s commitment to pay the Break-Up Fee (as defined below) on the terms and conditions set forth in this Agreement. In the event that the Company chooses to terminate this Agreement as
set forth in section 11(b)(i) below, provided that the Sponsor is not in material breach of this Agreement, the Company shall pay to the Sponsor a break-up fee in the amount of one million dollars ($1,000,000) plus the Sponsor’s reasonable
out-of-pocket fees and expenses (including, without limitation, legal fees, and after application of any retainer previously funded by the Company) (such fees and expenses, collectively, the “Break-Up Fee”), and such Break-Up Fee
shall be deemed earned immediately for all purposes. The Break-Up Fee shall be paid (i) via wire transfer of immediately available funds upon the closing of a Superior Proposal in the event of an exercise of the Superior Proposal Company
Termination Right or (ii) upon payment of other allowed administrative expenses of the Company under section 503 of the Bankruptcy Code in the event such Superior Proposal does not close or upon an exercise of the Intervening Event Company
Termination Right. The Company expressly acknowledges that the Break-Up Fee is an actual and necessary cost and expense of preserving the estates under section 503 of the Bankruptcy Code and must therefore be allowed and paid as an administrative
expense in the Bankruptcy Case, and the PSA Order shall so provide. 
 6. Exculpation. The Plan, the Disclosure Statement, and the Confirmation Order
shall provide, to the maximum extent permitted by law, that each of the Parties, each Party’s affiliates and subsidiaries, the members of each Party’s respective boards of directors, and each Party’s directors, officers, employees,
agents, consultants, advisors and other representatives, including each Party’s legal counsel, accountants and financial advisors, shall neither have nor incur any liability to any entity (as defined in section 101(15) of the Bankruptcy Code)
for any prepetition or postpetition act taken or omitted to be taken in connection with, or related to, formulating, negotiating, preparing, disseminating, implementing, administering, confirming, or effecting the consummation of the Plan, the
Disclosure Statement, or any contract, instrument, release, or other agreement or document created or entered into in connection with the Plan or any other prepetition or postpetition act taken or omitted to be taken in connection with or in
contemplation of the Restructuring. 
 7. Releases. The Plan, the Disclosure Statement, and the Confirmation Order shall provide, to the maximum
extent permitted by law, that the Company, the Company’s estates (within the meaning of the Bankruptcy Code), all holders of claims against the Company, all holders of interests in the Company, and all parties in interest with respect to the
Company (collectively, the “Releasing Parties”), shall be deemed to have released the Sponsor and its representatives as well as the directors and officers of the Company serving in such capacity as of the date on which the
Bankruptcy Case is commenced by filing a petition with the Bankruptcy Court (such directors and officers, the “Released Parties”) from any and all claims, obligations, suits, judgments, damages, rights, causes of action and
liabilities whatsoever, whether known or unknown, foreseen or unforeseen, existing or hereafter arising, at law, in equity or otherwise, relating to or based upon any act or omission relating to the Company which occurred prior to

  
 13 

 
the effectiveness of the Restructuring, and furthermore that the performance of the terms of the Plan in facilitating the Restructuring shall be a full and complete settlement of any claims or
causes of action, whether known or unknown, that the Releasing Parties have or could have against the Released Parties relating to the Releasing Parties. 

8. Representations of the Sponsor. The Sponsor hereby represents and warrants to the Company as follows: 

(a) it is duly organized, validly existing, and in good standing under the laws of its state of formation; 

(b) it has the requisite corporate or entity power and authority to execute and deliver this Agreement and to perform its obligations under
this Agreement; 
 (c) the execution and delivery of this Agreement and the performance by it of its obligations under this Agreement have
been duly authorized by all necessary corporate or entity action; 
 (d) this Agreement has been duly executed and delivered by it and
constitutes the valid and binding obligation of it, enforceable against it in accordance with its terms; and 
 (e) assuming the accuracy of
the Company’s representations in section 9(h), the execution, delivery, and performance by it of this Agreement do not and shall not require any material registration or filing with, consent or approval of, or notice to, or other action to,
with, or by, any federal, state, or other governmental authority or regulatory body. 
 9. Representations of the Company. Each Company Party hereby
represents and warrants to the Sponsor as follows, subject to Bankruptcy Court approval as applicable: 
 (a) it is duly organized, validly
existing, and in good standing under the laws of its state of formation; 
 (b) it has the requisite corporate or entity power and authority
to execute and deliver this Agreement and to perform its obligations under this Agreement; 
 (c) the execution and delivery of this
Agreement and the performance by it of its obligations under this Agreement have been duly authorized by all necessary corporate or entity action; 

(d) this Agreement has been duly executed and delivered by it and constitutes the valid and binding obligation of it, enforceable against it in
accordance with the Agreement’s terms; 
 (e) to the actual knowledge of the senior executive officers of the Company (the
“Company’s Knowledge”), the financial and other information (excluding projections) concerning the Company which the Company or its representatives have made available to the Sponsor was complete and correct in all material
respects as of the date of such information and did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not materially misleading in light of the circumstances under
which such statements were made; 

  
 14 

 (f) to the Company’s Knowledge, the Company and the Company’s business are in
compliance, in all material respects, with all applicable laws, and no pending written claim has been filed against any of the Company Parties alleging a material violation of any United States federal, state, local or foreign statute, law,
ordinance, regulation, rule, code, order, other requirement, or rule of law (collectively, “Laws”), in each case except any non-compliance or violation that would not have a material adverse impact on the Company’s ability to
operate its business; 
 (g) as of the date of this Agreement, the Company has not received any written notice that the Company and the
Company’s business are under current investigation by a Governmental Entity with respect to the violation of any Laws that have a material adverse impact on the Company’s ability to operate its business; and 

(h) assuming the accuracy of the Sponsor’s representations in section 8(e), the execution, delivery, and performance by it of this
Agreement do not and shall not require any material registration or filing with, consent or approval of, or notice to, or other action to, with, or by, any federal, state, or other governmental authority or regulatory body, except the filings in the
Bankruptcy Case contemplated by this Agreement and as required under the federal securities laws. 
 10. Additional Conditions. In addition to the
other conditions to the Parties’ obligations set forth in this Agreement, each obligation and liability of the Parties under this Agreement is conditioned in its entirety upon (a) the truth of the representations and warranties of the
other Party set forth in this Agreement in all material respects and the other Party’s performance in all material respects of its agreements and covenants in this Agreement, (b) this Agreement not having been terminated pursuant to its
terms, and (c) the Plan being (i) consistent in all material respects with the terms and provisions of this Agreement and (ii) otherwise reasonably acceptable to the Company and the Sponsor. 

11. Termination of Agreement. 
 (a) The
Sponsor may, but shall not be required to, terminate this Agreement immediately if any of the following occurs, by providing written notice of such termination to the Company. 

(i) The Company fails to perform any obligation (including, without limitation, obtaining specified relief) by the applicable deadline or
within the applicable timeframe specified in this Agreement, including, without limitation, as required under section 1(a) of this Agreement. 

(ii) An event or occurrence required by this Agreement does not happen by the applicable deadline or within the applicable timeframe specified
in this Agreement, including, without limitation, as required under section 2(a) of this Agreement. 

  
 15 

 (iii) The Reorganized Company has failed to obtain access to the Exit Facility, or any other
condition to occurrence of the Effective Date has not occurred, within the applicable required timeframe. 
 (iv) There is any material
modification to, or material severance of any provision of, the Plan or any related document that is inconsistent with the terms and conditions set forth in this Agreement. 

(v) There is an event of default under the DIP Financing, and such event of default is not cured in accordance with the terms (including,
without limitation, within the timeframe) set forth in the DIP Financing or waived. 
 (vi) A motion is filed or relief is otherwise sought
or supported by the Company or any Company Party seeking to (A) appoint a trustee, receiver, or examiner for any Company Party or any Company Party’s assets and/or business, in the Bankruptcy Case or otherwise, (B) convert the
Bankruptcy Case of any Company Party to a case under chapter 7 of the Bankruptcy Code, or (C) dismiss any Bankruptcy Case of a Company Party. 

(vii) An order is entered by the Bankruptcy Court (A) modifying or terminating the Company’s exclusive right to file and/or solicit
acceptances of a plan of reorganization pursuant to section 1121 of the Bankruptcy Code, (B) directing the appointment of an examiner with expanded powers or a trustee, (C) converting the Bankruptcy Case of any Company Party to a case
under chapter 7 of the Bankruptcy Code, or (D) dismissing any Bankruptcy Case of a Company Party. 
 (viii) An order is entered
appointing a trustee, receiver, or examiner for any Company Party or any Company Party’s assets and/or business, in the Bankruptcy Case or otherwise. 

(ix) There has been a material breach of, material inaccuracy in, or material failure to perform any representation, warranty, covenant, or
agreement made by the Company in this Agreement that has not been cured by the Company within ten (10) business days following receipt of notice from the Sponsor. 

(x) Any event or condition in respect of the operation of the Company has occurred that results, or would reasonably be expected to result,
individually or in the aggregate, in a material adverse effect on (A) the business, financial condition and operations of the Company, taken as a whole, or on (B) the ability of the Company to consummate the transaction contemplated herein
and in the Plan; provided, however, that for the purposes of this subsection, a material adverse effect shall not be deemed to include the effects of events or conditions resulting from (1) the Bankruptcy Case, (2) changes in
general economic, financial or securities market or political conditions in the United States, (3) general changes or developments in the industries and markets in which the Business operates, (4) changes in (or proposals to change) any
applicable Laws or regulations or applicable accounting regulations or principles or interpretations thereof, (5) any 

  
 16 

 
outbreak or escalation of hostilities or war or any act of terrorism, (6) the announcement, pendency or consummation of the transactions contemplated by this Agreement (including any impact
on customers, suppliers, vendors or employees), or (7) any action taken (or omitted to be taken) as required by this Agreement or at the request, or with the consent, of the Sponsor, shall, in each case, be excluded from the determination of a
material adverse effect; provided further, however, that such events or conditions referred to in clauses (2), (3), (4) and (5) above do not materially and disproportionately affect the
Company, taken as a whole, as compared to other businesses in the industries in which the Company operates. 
 (xi) If any court of competent
jurisdiction or other competent governmental or regulatory authority shall (i) have issued an order making illegal or otherwise restricting, preventing or prohibiting the Plan in a manner that cannot reasonably be remedied or (ii) have
entered a final, non-appealable judgment or order declaring this Agreement or any material provision of this Agreement or any related document to be illegal, invalid, or unenforceable. 

(xii) Edmond S. Thomas, or a replacement acceptable to the Sponsor in its sole and absolute discretion, ceases to be the chief executive
officer of the Company. 
 (b) The Company may, but shall not be required to, terminate this Agreement immediately if any of the following
occurs, by providing written notice of such termination to the Sponsor. 
 (i) Subject to the notice and other provisions of section 4(d) or
section 4(e) of this Agreement, as applicable, the Company may terminate this Agreement (A) in connection with the Superior Proposal Company Termination Right, if the Company determines to enter into an Alternative Transaction Agreement in
respect of a Superior Proposal; provided that in the event of such termination, the Company substantially concurrently enters into such Alternative Transaction Agreement, or (B) in connection with the Intervening Event Company Termination
Right. If the Company exercises the Superior Proposal Company Termination Right or the Intervening Event Company Termination Right, the Company shall pay the Break-up Fee to the Sponsor in accordance with section 5. 

(1) The Parties acknowledge and agree that the Break-up Fee (i) is an integral part of the transactions contemplated by this Agreement,
and that, without the Break-up Fee, the Sponsor would not have entered into this Agreement and (ii) is not a penalty, but is liquidated damages, in a reasonable amount that will compensate the Sponsor in the circumstances in which such fee is
payable for the efforts and resources expended and opportunities foregone while negotiating this Agreement and in reliance on this Agreement and on the expectation of the consummation of the transactions contemplated by this Agreement, which amount
would otherwise be impossible to calculate with precision. The payment of the Break-Up Fee in accordance with the terms of this Agreement shall constitute the sole and exclusive remedy of the Sponsor for any breach of this Agreement by the Company.

  
 17 

 (2) If the Company fails to pay the Break-up Fee in a timely manner, and, in order to obtain
such payment, the Sponsor makes a claim against the Company that results in a judgment against the Company, the Company Party shall pay to the Sponsor the reasonable costs and expenses (including its reasonable attorneys’ fees and expenses)
incurred or accrued by the Sponsor in connection with such suit, together with interest on the amounts set forth in this section at the prime lending rate prevailing during such period as published in The Wall Street Journal. Any interest
payable hereunder shall be calculated on a daily basis from the date such amounts were required to be paid until (but excluding) the date of actual payment, and on the basis of a 360-day year. 

(ii) There has been a material breach of, material inaccuracy in, or material failure to perform any representation, warranty, covenant, or
agreement made by the Sponsor in this Agreement that has not been cured by the Sponsor within ten (10) business days following receipt of notice from the Company. 

(iii) If any court of competent jurisdiction or other competent governmental or regulatory authority shall (i) have issued an order making
illegal or otherwise restricting, preventing or prohibiting the Plan in a manner that cannot reasonably be remedied or (ii) have entered a final, non-appealable judgment or order declaring this Agreement or any material provision of this
Agreement or any related document to be illegal, invalid, or unenforceable. 
 (iv) If the funding under the DIP Financing is terminated by
the Sponsor. 
 (c) Subject to section 13(b), this Agreement shall terminate automatically upon occurrence of the Effective Date. For the
avoidance of doubt, the DIP Financing shall survive any termination of this Agreement, except as otherwise specifically provided therein. 
 12.
Notices. All demands, notices, requests, consents, and communications (each a “Notice”) under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or by courier service,
messenger, Federal Express or similar expedited delivery service, email, facsimile, telecopy, or if duly deposited in the mails, by certified or registered mail, postage prepaid-return receipt requested, to the following addresses, or such other
addresses as may be furnished hereafter by a Notice to the Parties: 
 If to the Company, 

Edmond S. Thomas, CEO 
 The Wet
Seal, Inc. 
 26972 Burbank 

Foothill Ranch, CA 92610 

Email: Ed.Thomas@wetseal.com 

  
 18 

 with a copy to 

Michael Tuchin 
 Klee, Tuchin,
Bogdanoff & Stern LLP 
 1999 Avenue of the Stars 

39th Floor 
 Los Angeles, CA
90067 
 Email: mtuchin@ktbslaw.com 

If to the Sponsor, 
 Steven H.
Reiner, Managing Director 
 B. Riley & Co., L.L.C. 

11100 Santa Monica Blvd., Suite 800 

Los Angeles, CA 90025 
 Email:
sreiner@brileyco.com 
 with a copy to 

Van C. Durrer, II 
 Skadden,
Arps, Slate, Meagher & Flom LLP 
 300 South Grand Avenue 

Suite 3400 
 Los Angeles, CA
90071 
 Email: Van.Durrer@skadden.com 
 A
Notice shall be deemed to have been duly given or made (a) upon delivery, if delivered personally or by courier service, messenger, or Federal Express or similar expedited delivery service, in each case with record of receipt, (b) upon
transmission with confirmed delivery, if sent by facsimile or telecopy, or (c) two (2) business days after being sent by certified or registered mail, postage pre-paid, return receipt requested. 

13. Remedies; Limitation on Liability. 
  

	 	(a)	Subject to section 11(b)(i), the Parties acknowledge and agree that any breach of the terms of this Agreement would give rise to irreparable harm to the other Party for which money damages would not be an adequate
remedy and, accordingly, agrees that each non-breaching Party shall be entitled to specific performance and injunctive or other equitable relief without the necessity of proving the inadequacy of money damages as a remedy or posting a bond or other
security in connection with such remedy. 

  

	 	(b)	 Notwithstanding anything that may be expressed or implied in this Agreement, each Party hereto covenants, agrees and acknowledges that no recourse
under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any Party’s affiliates, or any of such Party’s 

  
 19 

	 	
affiliates or respective former, current or future direct or indirect equity holders, controlling persons, stockholders, directors, officers, employees, agents, members, managers, general or
limited partners or assignees (each a “Related Party” and collectively, the “Related Parties”) in each case other than the Parties and each of their respective successors and permitted assignees under this
Agreement, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or
otherwise be incurred by any of the Related Parties, as such, for any obligation or liability of any Party under this Agreement or any documents or instruments delivered in connection herewith for any claim based on, in respect of or by reason of
such obligations or liabilities or their creation; provided, however, nothing in this section 13(b) shall relieve or otherwise limit the liability of any Party hereto or any of their respective successors or permitted assigns, for any breach
or violation of its obligations under such contracts. For the avoidance of doubt, none of the Parties will have any recourse, be entitled to commence any proceeding or make any claim under this Agreement or in connection with the transactions
contemplated hereby except against any of the Parties, as applicable. The limitation on liability provision in this Section 13(b) shall survive the termination of this Agreement. 

14. Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter of this
Agreement and supersedes all other prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter of this Agreement, including the Term Sheet; provided, however, without duplication, any expense
reimbursement due to the Sponsor from the Company pursuant to the Term Sheet shall be allowed and paid as an administrative expense pursuant to section 2(d)(iv) hereof. This Agreement may not be amended, altered, or modified in any manner
whatsoever, except by a written instrument executed by each of the Parties hereto. 
 15. Waiver. The Parties hereto may (a) extend the time for
the performance of any of the obligations or other acts of the other Parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto, and (c) waive compliance
with any of the agreements or conditions contained herein. Any agreement on the part of a Party hereto to any such extension or waiver shall be valid only if set forth in a written instrument executed by the Parties. 

16. Public Announcements. Unless such disclosure is otherwise required by applicable Law or by obligations of the Company or the Sponsor or their
respective affiliates pursuant to any listing agreement with or rules of any securities exchange, the Company and the Sponsor shall consult with each other before issuing any press release or otherwise making any public statement with respect to
this Agreement, the transactions contemplated hereby or the activities and operations of the other and shall not issue any such release or make any such statement without the prior written consent of the other. 

  
 20 

 17. Authority to Sign. Each of the Parties represents and warrants that the person who executes this
Agreement on behalf of such Party has been duly authorized on behalf of such Party to execute this Agreement on behalf of such Party and, in the case of an entity, that such authority has been validly obtained in accordance with the articles of
incorporation and bylaws (or other organizational documents) of such Party, and the laws of the state of its organization for such Party. 
 18. No
Third-Party Beneficiaries. This Agreement shall be solely for the benefit of the Parties and no other person or entity shall be a third-party beneficiary of this Agreement except as set forth in section 13(b). 

19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to the
provisions of such laws relating to conflicts of law). 
 20. Jurisdiction. The Company and the Sponsor each hereby irrevocably and unconditionally
submit to the nonexclusive jurisdiction of any Delaware state court or federal court of the United States of America sitting in Wilmington, Delaware, or the Bankruptcy Court (following commencement of the Bankruptcy Case), and any appellate court
from any of the foregoing, but solely in any action or proceedings to enforce this Agreement. Each of the Parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law. 
 21. Savings Clause. Any provision or part of this Agreement that is determined to be invalid
or unenforceable in any situation in any jurisdiction shall, as to such situation and such jurisdiction, be ineffective only to the extent of such invalidity and shall not affect the enforceability of the remaining provisions of this Agreement or
the validity or enforceability of any such provision in any other situation or in any other jurisdiction. In lieu of any such provision, there shall be added a provision as similar in terms to such illegal, invalid, or unenforceable provision(s) as
may be possible and mutually agreed upon by the Parties and still be legal, valid, and enforceable under applicable laws. 
 22. Headings. Section
headings in this Agreement are used for convenience only and shall not be considered for any purpose in construing this Agreement. 
 23. Neutral
Construction. Each Party has cooperated, including by and through its counsel, in the drafting and preparation of this Agreement. Hence, this Agreement will be construed neutrally, and will not be applied more strictly against one Party
than against another. 
 24. Execution in Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute one document. 
 25. Electronic Transmittal. Signatures transmitted electronically (e.g., by
facsimile or in .pdf format as an attachment to an e-mail) shall have the full force and effect of original signatures. 
 26. Assignment. Each Party
hereby agrees, for so long as this Agreement shall remain in effect, not to assign it rights or obligations under this Agreement without the prior written consent of the other Party; provided, however, that B. Riley Financial, Inc. may assign its
rights and obligations under this Agreement to its affiliates or designees selected in its sole discretion; provided further that no such assignment shall relieve B. Riley Financial, Inc. from its obligations under this Agreement. 

  
 21 

 27. Acknowledgement. This Agreement and the transactions contemplated herein are the product of
negotiations among the Parties, together with their respective representatives. Notwithstanding anything herein to the contrary, this Agreement is not, and shall not be deemed to be, (i) a solicitation of votes for the acceptance of the Plan or
any Chapter 11 plan for the purposes of sections 1125 and 1126 of the Bankruptcy Code or otherwise or (ii) an offer for the purchase, sale, exchange, hypothecation, or other transfer of securities for purposes of the Securities Act of 1933 and
the Securities Exchange Act of 1934. Notwithstanding anything herein to the contrary, the Company will not solicit acceptances of the Plan from any person until such person has been provided with a Disclosure Statement approved by the Bankruptcy
Court. 
 [SIGNATURE PAGE FOLLOWS] 

  
 22 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their
respective representatives duly authorized as of the Execution Date. 
 By the Company: 

 

			
	THE WET SEAL, INC.
	THE WET SEAL RETAIL, INC.
	WET SEAL CATALOG, INC.
	WET SEAL GC, LLC
		
	by	 	 /s/ Edmond S. Thomas

		 	Name: Edmond S. Thomas
		 	Title: CEO

 By the Sponsor: 
  

			
	B. RILEY FINANCIAL, INC., ON BEHALF OF THE ENTITIES CONSTITUTING THE SPONSOR
		
	by	 	 /s/ Phillip J. Ahn

		 	Name: Phillip J. Ahn
		 	Title: CFO & COO

  
 23

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