Document:

Collateral Trust Agreement

 Exhibit 10.3 
 EXECUTION COPY 
  

 COLLATERAL TRUST AGREEMENT 
 dated as of September 14, 2007 
 by and between 
 CHENIERE MARKETING, INC.,

 and 
 BNP PARIBAS, 

as Collateral Trustee 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	
	DEFINITIONS; PRINCIPLES OF CONSTRUCTION
			
	 Section 1.1
	  	Defined Terms	  	2
	 Section 1.2
	  	Rules of Interpretation	  	4
	
	ARTICLE 2
	
	THE TRUST ESTATES
			
	 Section 2.1
	  	Declaration of BNPP Trust	  	5
	 Section 2.2
	  	Declaration of Crest Trust	  	5
	 Section 2.3
	  	Priority of Liens	  	6
	 Section 2.4
	  	Discretion in Enforcement of Liens	  	6
	
	ARTICLE 3
	
	OBLIGATIONS AND POWERS OF COLLATERAL TRUSTEE
			
	 Section 3.1
	  	Undertaking of the Collateral Trustee	  	7
	 Section 3.2
	  	Release or Subordination of Liens	  	7
	 Section 3.3
	  	Enforcement of Liens	  	8
	 Section 3.4
	  	Application of Proceeds	  	8
	 Section 3.5
	  	Powers of the Collateral Trustee	  	9
	 Section 3.6
	  	Documents and Communications	  	9
	 Section 3.7
	  	For Sole and Exclusive Benefit of Secured Parties	  	10
	
	ARTICLE 4
	
	OBLIGATIONS ENFORCEABLE BY THE COMPANY
			
	 Section 4.1
	  	Release of Liens on Collateral	  	10
	 Section 4.2
	  	Collateral Trustee Not Required to Serve, File or Record	  	11
	
	ARTICLE 5
	
	IMMUNITIES OF THE COLLATERAL TRUSTEE
			
	 Section 5.1
	  	No Implied Duty	  	11
	 Section 5.2
	  	Appointment of Agents and Advisors	  	11
	 Section 5.3
	  	Other Agreements	  	11
	 Section 5.4
	  	Solicitation of Instructions	  	11
	 Section 5.5
	  	Limitation of Liability	  	11

  

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	 Section 5.6
	  	Documents in Satisfactory Form	  	12
	 Section 5.7
	  	Entitled to Rely	  	12
	 Section 5.8
	  	Secured Obligation Default	  	12
	 Section 5.9
	  	Actions by Collateral Trustee	  	12
	 Section 5.10
	  	Security or Indemnity in Favor of the Collateral Trustee	  	12
	 Section 5.11
	  	Rights of the Collateral Trustee	  	12
	 Section 5.12
	  	Limitations on Duty of Collateral Trustee in Respect of Collateral	  	13
	 Section 5.13
	  	Assumption of Rights, Not Assumption of Duties	  	13
	 Section 5.14
	  	No Liability for Clean Up of Hazardous Materials	  	13
	 Section 5.15
	  	Additional Provisions Relating to the Collateral Trustee	  	14
	 Section 5.16
	  	Appointment of Co-Collateral Trustee	  	15
	
	ARTICLE 6
	
	RESIGNATION OR REMOVAL OF THE COLLATERAL TRUSTEE
			
	 Section 6.1
	  	Resignation or Removal of Collateral Trustee	  	16
	 Section 6.2
	  	Appointment of Successor Collateral Trustee	  	16
	 Section 6.3
	  	Succession	  	16
	 Section 6.4
	  	Merger, Conversion or Consolidation of Collateral Trustee	  	17
	
	ARTICLE 7
	
	MISCELLANEOUS PROVISIONS
			
	 Section 7.1
	  	Amendment	  	17
	 Section 7.2
	  	Further Assurances; Insurance	  	18
	 Section 7.3
	  	Successors and Assigns	  	19
	 Section 7.4
	  	Delay and Waiver	  	19
	 Section 7.5
	  	Notices	  	19
	 Section 7.6
	  	Notice Following Discharge of Obligations	  	20
	 Section 7.7
	  	Entire Agreement	  	20
	 Section 7.8
	  	Compensation; Expenses	  	20
	 Section 7.9
	  	Indemnity	  	21
	 Section 7.10
	  	Severability	  	21
	 Section 7.11
	  	Headings	  	21
	 Section 7.12
	  	Obligations Secured	  	22
	 Section 7.13
	  	Governing Law	  	22
	 Section 7.14
	  	Consent to Jurisdiction	  	22
	 Section 7.15
	  	Waiver of Jury Trial	  	22
	 Section 7.16
	  	Counterparts	  	23
	 Section 7.17
	  	Effectiveness	  	23
	 Section 7.18
	  	Continuing Nature of this Agreement	  	23
	 Section 7.19
	  	Insolvency	  	23
	 Section 7.20
	  	Rights and Immunities of the Administrative Agent	  	23
	 Section 7.21
	  	Crest Obligation	  	23

  

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 This Collateral Trust Agreement (this “Agreement”) is dated as of September 14,
2007 and is by and among CHENIERE MARKETING, INC., a Delaware corporation (the “Company”) and BNP PARIBAS, a bank organized under the Laws of the Republic of France, as collateral trustee hereunder (in such capacity and together
with its successors in such capacity, the “Collateral Trustee”). 
 RECITALS 
 WHEREAS, the Company on or about the date hereof will become a party to that certain Credit Agreement, dated as of the date hereof (as amended, restated,
supplemented or otherwise modified from time to time, the “BNPP Credit Agreement”), among the Company, the several banks and other financial institutions or entities from time to time parties thereto, and BNP Paribas, as
administrative agent (together with any successor Administrative Agent appointed pursuant to the BNPP Credit Agreement, in such capacity, the “Administrative Agent”). Unless otherwise defined herein, terms defined in the BNPP Credit
Agreement and used herein have the meanings given to them in the BNPP Credit Agreement; 
 WHEREAS, it is a requirement under the BNPP Credit
Agreement and a condition precedent to the Extensions of Credit that the Company shall have executed and delivered this Agreement; 
 WHEREAS, Cheniere Energy, Inc. (“Cheniere Energy”) is party to the Settlement and Purchase Agreement dated as of June 14, 2001 (the “Crest Settlement Agreement”) among Cheniere Energy, CXY Corporation
(“CXY”), Crest Energy, L.L.C., Crest Investment Company (“Crest”) and Freeport LNG Terminal, LLC, whereby Cheniere Energy agreed, inter alia, that a royalty (the “Royalty”) on the gross quantities
of gas processed and produced through certain liquefied natural gas receiving and regasification facilities of CXY would be paid to Crest; 
 WHEREAS, Cheniere Energy agreed to cause any and all of its direct and indirect, present and future affiliates, joint ventures and subsidiaries that are involved in the liquefied natural gas business to assume and adopt the obligations of
Cheniere Energy and CXY under the Crest Settlement Agreement; 
 WHEREAS, the Company is a wholly-owned indirect subsidiary of Cheniere
Energy and as such will be obligated for the Royalty payment obligation as if it were a party to the Crest Settlement Agreement; 
 WHEREAS,
the Company intends to secure the BNPP Obligations (as defined below) under the BNPP Credit Agreement on a priority basis with Liens on certain Collateral (as defined below) to the extent that such Liens have been provided for in the Security
Documents (as defined below); 
 WHEREAS, pursuant to the Crest Settlement Agreement, the Company is prohibited from creating, or allowing to
be created, any lien, security interest or other encumbrance on any of the Company’s assets for borrowing money that is senior to or pari passu with the obligations of the Company to Crest, and therefore the Company intends to secure the Crest
Obligation (as defined below) under the Crest Settlement Documents with a first priority Lien on all present and future Collateral that is senior to the Lien granted by the Company to the Collateral Trustee on behalf of and for the benefit of the
BNPP Secured Parties; 
 WHEREAS, pursuant to the Crest Settlement Agreement, Crest is to be secured by the Collateral only for so long as
the BNPP Obligations are secured by the Collateral; and 

 WHEREAS, this Agreement sets forth the terms on which each Secured Party has appointed the Collateral
Trustee to act as the collateral trustee for such Secured Party and as such, to receive, hold, maintain, administer and distribute the Collateral at any time delivered to the Collateral Trustee or the subject of the Security Documents, and to
enforce the Security Documents and all interests, rights, powers and remedies of the Collateral Trustee with respect thereto or thereunder and the proceeds thereof; 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 ARTICLE 1 
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
 Section 1.1 Defined Terms. The following terms will have the following
meanings: 
 “Administrative Agent”: as defined in the Recitals. 
 “Affiliate”: as to any Person, any other Person (other than a Subsidiary) which, directly or indirectly, is in control of, is controlled
by, or is under common control with, such Person. For purposes of this definition, “control” of a Person (including, with its correlative meanings, “controlled by” and “under common control with”) means the power,
directly or indirectly, either to (a) vote 30% or more of the securities having ordinary voting power for the election of directors of such Person or (b) direct or cause the direction of the management and policies of such Person, whether
by contract or otherwise. Notwithstanding the foregoing, the definition of “Affiliate” shall not encompass (a) any individual solely by reason of his or her being a director, officer or employee of any Person and (b) the
Collateral Trustee, Administrative Agent or any BNPP Secured Party solely in their capacity as such. 
 “Agreement”: as
defined in the Preamble. 
 “BNPP Credit Agreement”: as defined in the Recitals. 
 “BNPP Loan Documents”: the “Loan Documents”, as defined in the BNPP Credit Agreement. 
 “BNPP Notice of Default”: written notice delivered by the Administrative Agent to the Collateral Trustee that an “Event of
Default” (as defined in the BNPP Credit Agreement) has occurred. 
 “BNPP Obligations”: the “Obligations”, as
defined in the BNPP Credit Agreement. 
 “BNPP Secured Parties”: as defined in the BNPP Security Agreement. 
 “BNPP Security Agreement”: as defined in the Recitals. 
 “BNPP Trust Estate”: as defined in Section 2.1. 
 “Cheniere
Energy”: as defined in the Recitals. 
 “Collateral”: those properties and assets of the Company now owned or
hereafter acquired in which Liens have been granted to the Collateral Trustee to secure the Secured Obligations, excluding any properties and assets in which the Collateral Trustee has released its Liens pursuant to 

  

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Section 3.2; provided, that, if such Liens are released as a result of the sale, transfer or other disposition of any properties or assets
of the Company, such assets or properties will cease to be excluded from the Collateral if the Company thereafter acquires or reacquires such assets or properties. 
 “Collateral Trustee”: as defined in the Preamble. 
 “Company”: as defined
in the Preamble. 
 “Crest”: as defined in the Recitals. 
 “Crest Notice of Default”: written notice delivered by Crest to the Collateral Trustee that Crest has not received current payments of
the Royalty pursuant to the Crest Settlement Documents. 
 “Crest Obligation”: as defined in the Security Agreement.

 “Crest Settlement Agreement”: as defined in the Recitals. 
 “Crest Settlement Documents”: as defined in the BNPP Credit Agreement. 
 “Crest Trust Estate”: as defined in Section 2.2. 
 “CXY”: as defined in the Recitals. 
 “Discharge of Obligations”: the occurrence of all of the following: 
 (a) payment in full in cash
of all BNPP Obligations that are outstanding and unpaid at the time; and 
 (b) termination or expiration of all commitments
to extend credit that would constitute BNPP Obligations. 
 “Indemnified Liabilities”: as defined in
Section 7.9(a). 
 “Indemnitee”: as defined in Section 7.9(a). 
 “Insolvency or Liquidation Proceeding”: 
 (a) any case commenced by or against the Company under Title 11, U.S. Code or any similar federal or state law for the relief of debtors, any other proceeding for the reorganization, recapitalization or
adjustment or marshalling of the assets or liabilities of the Company, any receivership or assignment for the benefit of creditors relating to the Company or any similar case or proceeding relative to the Company or its creditors, as such, in each
case whether or not voluntary; 
 (b) any liquidation, dissolution, marshalling of assets or liabilities or other winding up
of or relating to the Company, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or 
 (c) any other proceeding of any type or nature in which substantially all claims of creditors of the Company are determined and any payment or distribution is or may be made on account of such claims. 
  

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 “Person”: any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 
 “Secured
Obligation Default”: (i) in the case of the BNPP Credit Agreement, any event or condition which, under the terms of the BNPP Loan Documents, causes, or permits holders of BNPP Obligations outstanding thereunder (with or without the
giving of notice or lapse of time, or both, and whether or not notice has been given or time has lapsed) to cause, the BNPP Obligations outstanding thereunder to become immediately due and payable and (ii) in the case of the Crest Obligations,
the failure of Crest to timely receive payment owing to it in respect of the Royalty. 
 “Secured Obligation Documents”: the
BNPP Loan Documents and the Crest Settlement Documents. 
 “Secured Obligations”: the BNPP Obligations and the Crest
Obligation. 
 “Secured Parties”: the holders of Secured Obligations. 
 “Security Documents”: as defined in the BNPP Credit Agreement. 
 “Trust Estates” as defined in Section 2.2. 
 “UCC”: the Uniform Commercial Code as in effect in the State of New York or any other applicable jurisdiction. 
 Section 1.2 Rules of Interpretation. 
 (a) All terms used in this Agreement that are defined in the
UCC and not otherwise defined herein have the meanings assigned to them in the UCC. 
 (b) Unless otherwise indicated, any reference to any
agreement or instrument will be deemed to include a reference to that agreement or instrument as assigned, amended, supplemented, amended and restated, or otherwise modified and in effect from time to time or replaced in accordance with the terms of
this Agreement. 
 (c) The use in this Agreement or any of the other Security Documents of the word “include” or
“including,” when following any general statement, term or matter, will not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters,
whether or not non-limiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but will be deemed to refer to all other items or matters that fall within the
broadest possible scope of such general statement, term or matter. The word “will” shall be construed to have the same meaning and effect as the word “shall.” 
 (d) References to “Sections,” “clauses,” “Recitals” and the “Preamble” will be to Sections, clauses, Recitals and
the Preamble, respectively, of this Agreement unless otherwise specifically provided. References to “Articles” will be to Articles of this Agreement unless otherwise specifically provided. References to “Schedules” will be to
Schedules to this Agreement unless otherwise specifically provided. 
 (e) Notwithstanding anything to the contrary in this Agreement, any
references contained herein to any section, clause, paragraph, definition or other provision of the BNPP Credit Agreement (including any definition contained therein) shall be deemed to be a reference to such section, clause, paragraph, definition
or other provision as in effect on the date of this Agreement. 
  

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 ARTICLE 2 
 THE TRUST ESTATES 
 Section 2.1 Declaration of BNPP Trust. 
 (a) To secure the payment of the BNPP Obligations and in consideration of the mutual agreements set forth in this Agreement, the Company hereby grants to
the Collateral Trustee, and the Collateral Trustee hereby accepts and agrees to hold, in trust under this Agreement for the benefit of the BNPP Secured Parties, all of the Company’s right, title and interest in, to and under all Collateral
granted to the Collateral Trustee under any Security Document for the benefit of the BNPP Secured Parties, together with all of the Collateral Trustee’s right, title and interest in, to and under the Security Documents, and all interests,
rights, powers and remedies of the Collateral Trustee thereunder or in respect thereof and all cash and non-cash proceeds thereof (collectively, the “BNPP Trust Estate”). 
 (b) The Collateral Trustee and its successors and assigns under this Agreement will hold the BNPP Trust Estate in trust for the benefit solely and
exclusively of the BNPP Secured Parties, as security for the payment of all present and future BNPP Obligations, subject to the terms and conditions of this Agreement. 
 (c) Notwithstanding the foregoing, if at any time: 
 (1) all Liens securing the BNPP
Obligations have been released as provided in Section 4.1; 
 (2) the Collateral Trustee holds no other property
in trust as part of the BNPP Trust Estate; 
 (3) no monetary obligation (other than indemnification and other contingent
obligations not then due and payable) is outstanding and payable under this Agreement to the Collateral Trustee or any of its co-trustees or agents (whether in an individual or representative capacity); and 
 (4) the Company delivers to the Collateral Trustee an opinion of counsel to the Company stating that all Liens of the Collateral Trustee
securing the BNPP Obligations have been released in compliance with all applicable provisions of the BNPP Loan Documents and that the Company is not required by any BNPP Loan Document to grant any Lien securing the BNPP Obligations upon any
property, 
 then the BNPP Trust Estate will terminate, except that all provisions set forth in Sections 7.8 and 7.9 that are
enforceable by the Collateral Trustee or any of its co-trustees or agents (whether in an individual or representative capacity) will remain enforceable in accordance with their terms. 
 (d) The parties further declare and covenant that the BNPP Trust Estate will be held and distributed by the Collateral Trustee subject to the further
agreements herein. 
 Section 2.2 Declaration of Crest Trust. 
 (a) To secure the payment of the Crest Obligation and in consideration of the mutual agreements set forth in this Agreement, the Company hereby grants to
the Collateral Trustee, and the Collateral Trustee hereby accepts and agrees to hold, in trust under this Agreement for the benefit of Crest, all of the Company’s right, title and interest in, to and under all Collateral granted to the
Collateral 

  

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Trustee under any Security Document for the benefit of Crest, together with all of the Collateral Trustee’s right, title and interest in, to and under
the Security Documents, and all interests, rights, powers and remedies of the Collateral Trustee thereunder or in respect thereof and all cash and non-cash proceeds thereof (collectively, the “Crest Trust Estate,” and together with
the BNPP Trust Estate, the “Trust Estates”). 
 (b) The Collateral Trustee and its successors and assigns under this
Agreement will hold the Crest Trust Estate in trust for the benefit solely and exclusively of Crest as security for the payment of the present and future Crest Obligation, subject to the terms and conditions of this Agreement. 
 (c) Notwithstanding the foregoing, if at any time all Liens securing the BNPP Obligations or the Crest Obligation have been released as provided in
Section 4.1, then the Crest Trust Estate will terminate, it being agreed that the Crest Trust Estate will terminate, ipso facto, upon the termination of the BNPP Trust Estate. 
 (d) The parties further declare and covenant that the Crest Trust Estate will be held and distributed by the Collateral Trustee subject to the further
agreements herein. 
 Section 2.3 Priority of Liens. Notwithstanding anything else contained herein or in any other Security Document,
it is the intent of the parties that: 
 (a) this Agreement and the other Security Documents create two separate and distinct Trust Estates:
(A) the Crest Trust Estate in respect of the Liens granted to the Collateral Trustee in favor of Crest securing the payment and performance of the Crest Obligation and (B) the BNPP Trust Estate in respect of the Liens granted to the
Collateral Trustee in favor of the BNPP Secured Parties securing the payment and performance of the BNPP Obligations; and 
 (b) the Liens
securing the BNPP Obligations are subject and subordinate to the Liens securing the Crest Obligation, as, and to the extent, provided herein. 
 Section 2.4 Discretion in Enforcement of Liens. In exercising rights and remedies with respect to the Collateral, the Collateral Trustee may enforce (or refrain from enforcing) the provisions of the Security Documents and exercise
(or refrain from exercising) remedies thereunder or any such rights and remedies, all in such order and in such manner as it may determine in the exercise of its sole and exclusive discretion, including: 
 (a) the exercise or forbearance from exercise of all rights and remedies in respect of the Collateral; 
 (b) the enforcement or forbearance from enforcement of any Lien in respect of the Collateral; 
 (c) the acceptance of the Collateral in full or partial satisfaction of the Secured Obligations; and 
 (d) the exercise or forbearance from exercise of all rights and remedies of a secured lender under the UCC or any similar law of any applicable
jurisdiction or in equity. 
  

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 ARTICLE 3 
 OBLIGATIONS AND POWERS OF COLLATERAL TRUSTEE 
 Section 3.1 Undertaking of the Collateral
Trustee. 
 (a) Subject to, and in accordance with, this Agreement, the Collateral Trustee will, as trustee, for the benefit solely and
exclusively of the present and future Secured Parties: 
 (1) accept, enter into, hold, maintain, administer and enforce all
Security Documents, including all Collateral subject thereto, and all Liens created thereunder, perform its obligations under the Security Documents and protect, exercise and enforce the interests, rights, powers and remedies granted or available to
it under, pursuant to or in connection with the Security Documents; 
 (2) take all lawful and commercially reasonable actions
permitted under the Security Documents that it may deem necessary or advisable to protect or preserve its interest in the Collateral subject thereto and such interests, rights, powers and remedies; 
 (3) deliver and receive notices pursuant to the Security Documents; 
 (4) sell, assign, collect, assemble, foreclose on, institute legal proceedings with respect to, or otherwise exercise or enforce the
rights and remedies of a secured party (including a mortgagee, trust deed beneficiary and insurance beneficiary or loss payee) with respect to the Collateral under the Security Documents and its other interests, rights, powers and remedies;

 (5) remit as provided in Section 3.4 all cash proceeds received by the Collateral Trustee from the collection,
foreclosure or enforcement of its interest in the Collateral under the Security Documents or any of its other interests, rights, powers or remedies; 
 (6) execute and deliver amendments to the Security Documents as from time to time authorized pursuant to Section 7.1 accompanied by an opinion of counsel to the Company to the effect that the amendment was
permitted under Section 7.1; and 
 (7) release any Lien granted to it by any Security Document upon any
Collateral if and as required by Section 4.1. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, the
Collateral Trustee will not commence any exercise of remedies or any foreclosure actions or otherwise take any action or proceeding against any of the Collateral (other than actions that it may deem necessary or advisable to prove, protect or
preserve the Liens securing the Secured Obligations) unless and until it shall have been directed by written notice from the Administrative Agent or Crest, and then only in accordance with the provisions of this Agreement. 
 Section 3.2 Release or Subordination of Liens. The Collateral Trustee will not release or subordinate any Lien of the Collateral Trustee or
consent to the release or subordination of any Lien of the Collateral Trustee, except: 
 (a) as directed by the Administrative Agent;

 (b) as required by Article 4; or 
  

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 (c) as ordered pursuant to applicable law under a final (after any applicable appeals to the extent such
order has been stayed) order or judgment of a court of competent jurisdiction. 
 Section 3.3 Enforcement of Liens. 
 (a) Subject to Section 3.3(c), if the Collateral Trustee at any time receives written notice that any event has occurred that constitutes a
default under any BNPP Loan Document entitling the Collateral Trustee to foreclose upon, collect or otherwise enforce its Liens hereunder, the Collateral Trustee will promptly deliver written notice thereof to the Administrative Agent. 

(b) Following the delivery of written notice to the Administrative Agent pursuant to Section 3.3(a), the Collateral Trustee shall await
direction by the Administrative Agent and, so long as the Collateral Agent shall not have also received a Crest Notice of Default, will act, or decline to act, as directed by the Administrative Agent, in the exercise and enforcement of the
Collateral Trustee’s interests, rights, powers and remedies in respect of the Collateral or under the Security Documents or applicable law and, following the initiation of such exercise of remedies, the Collateral Trustee will act, or decline
to act, with respect to the manner of such exercise of remedies as directed by the Administrative Agent. 
 (c) If the Collateral Trustee has
received a Crest Notice of Default from Crest, the Collateral Trustee shall await direction by Crest and will act, or decline to act, as directed by Crest, in the exercise and enforcement of the Collateral Trustee’s interests, rights, powers
and remedies in respect of the Collateral or under the Security Documents or applicable law and, following the initiation of such exercise of remedies, the Collateral Trustee will act, or decline to act, with respect to the manner of such exercise
of remedies as directed by Crest. 
 (d) Unless it has been directed to the contrary by the Administrative Agent or Crest, the Collateral
Trustee in any event may (but will not be obligated to) take or refrain from taking such action with respect to the Collateral as it may deem advisable and in the best interest of the Secured Parties. 
 (e) If the Collateral Trustee receives inconsistent directions from Crest and the Administrative Agent, the Collateral Trustee shall follow the
instructions of Crest and so advise the Administrative Agent. 
 Section 3.4 Application of Proceeds. 
 (a) Prior to the delivery of a Crest Notice of Default to the Collateral Trustee by Crest, upon delivery to the Collateral Trustee of a BNPP Notice of
Default, the Collateral Trustee will apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral in the following order of application: 
 First, to the payment of all reasonable legal fees and expenses and other reasonable costs or expenses or other liabilities or
amounts of any kind incurred by, or owing to, the Collateral Trustee or any co-trustee or agent under or in connection with any Security Document that secures the Secured Obligations, including the reimbursement to the Collateral Trustee of any
amounts theretofore advanced by the Collateral Trustee for the payment of such fees, costs and expenses, liabilities or amounts; 
 Second, to the Administrative Agent for application pursuant to the applicable BNPP Loan Documents, until paid in full; and 
  

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 Third, any surplus remaining after the payment in full in cash of amounts
described in the preceding clauses will be paid to the Company, as the case may be, its successors or assigns, or as a court of competent jurisdiction may direct. 
 (b) Following the delivery of a Crest Notice of Default to the Collateral Trustee by Crest, the Collateral Trustee will apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral
in the following order of application: 
 First, to the payment of all reasonable legal fees and expenses and other
reasonable costs or expenses or other liabilities or amounts of any kind incurred by, or owing to, the Collateral Trustee or any co-trustee or agent under or in connection with any Security Document that secures the Secured Obligations, including
the reimbursement to the Collateral Trustee of any amounts theretofore advanced by the Collateral Trustee for the payment of such fees, costs and expenses, liabilities or amounts; 
 Second, to the payment of any unpaid Crest Obligation (as such amount may have been established by a court of competent
jurisdiction); 
 Third, to the Administrative Agent for application pursuant to the applicable BNPP Loan Documents,
until paid in full; and 
 Fourth, any surplus remaining after the payment in full in cash of amounts described in the
preceding clauses will be paid to the Company, as the case may be, its successors or assigns, or as a court of competent jurisdiction may direct. 
 (c) This Section 3.4 is intended for the benefit of, and will be enforceable as a third party beneficiary by, each present and future holder of Secured Obligations, each present and future Administrative Agent and the Collateral
Trustee as holder of Liens securing the Secured Obligations. 
 (d) In connection with the application of proceeds pursuant to
Section 3.4(a) or Section 3.4(b), except as otherwise directed by the Administrative Agent, the Collateral Trustee may sell any non-cash proceeds for cash prior to the application of the proceeds thereof. 
 Section 3.5 Powers of the Collateral Trustee. 
 (a) The Collateral Trustee is irrevocably authorized and empowered to enter into and perform its obligations and protect, perfect, exercise and enforce its interest, rights, powers and remedies under the Security
Documents and applicable law and in equity and to act as set forth in this Article 3 or as requested in any lawful directions given to it from time to time in respect of any matter by the Administrative Agent. 
 (b) Neither any BNPP Secured Party nor Crest will have any liability whatsoever for any act or omission of the Collateral Trustee. 
 Section 3.6 Documents and Communications. The Collateral Trustee will permit the Administrative Agent upon reasonable written notice from time to
time to inspect and copy, at the cost and expense of the party requesting such copies, any and all Security Documents and other documents, notices, certificates, instructions or communications received by the Collateral Trustee in its capacity as
such. 
  

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 Section 3.7 For Sole and Exclusive Benefit of Secured Parties. The Collateral Trustee will accept,
hold, administer and enforce all Liens on the Collateral at any time transferred or delivered to it and all other interests, rights, powers and remedies at any time granted to or enforceable by the Collateral Trustee and all other property of the
BNPP Trust Estate solely and exclusively for the benefit of the present and future holders of present and future BNPP Obligations or, in the case of the Crest Trust Estate, Crest, and will distribute all proceeds received by it in realization
thereon or from enforcement thereof solely and exclusively pursuant to the provisions of Section 3.4. 
 ARTICLE 4

 OBLIGATIONS ENFORCEABLE BY THE COMPANY 
 Section 4.1 Release of Liens on Collateral. 
 (a) The Collateral Trustee’s Liens upon the
Collateral will be released as follows: 
 (1) in whole, upon the Discharge of the BNPP Obligations irrespective of the
existence, vel non, of any Crest Obligation at such time; 
 (2) as to a release of less than all or substantially all
of the Collateral, if (A) consent to the release of all Liens on such Collateral has been given by the Administrative Agent and (B) such release has become effective in accordance with the terms of such consent; 
 (3) as to (A) deposits in any cash collateral account that are to be applied to fund any mandatory prepayment that becomes required
as to any Secured Obligations as a result of a sale of assets, concurrently with such application, so long as effective provision is made for apportionment of such funding to all holders of Secured Obligations entitled to participate in such
mandatory prepayment or purchase offer in accordance with their respective entitlements under the Secured Obligation Documents; and (B) deposits in any cash collateral account that constitute proceeds from an asset sale that are permitted under
the Secured Obligation Documents to be reinvested or otherwise are not required under the Secured Obligation Documents to be reinvested or otherwise are not required to be applied to a mandatory prepayment or purchase offer in respect of any Secured
Obligations, concurrently with such reinvestment in assets constituting Collateral or other permitted use under the Secured Obligation Documents; 
 (4) in accordance with the provisions of this Agreement and the other Security Documents as in effect from time to time, as applicable; 
 (5) upon any sale, transfer or other disposition of Collateral if such sale, transfer or other disposition is not prohibited by the terms
of the BNPP Credit Agreement or any other Secured Obligation Document; or 
 (6) as otherwise permitted by the BNPP Credit
Agreement and each other Secured Obligation Document. 
 (b) The Collateral Trustee hereby agrees that, in the case of any release pursuant
to clause (5) of Section 4.1(a), if the terms of any such sale, transfer or other disposition require the payment of the purchase price to be contemporaneous with the delivery of the applicable release, then, at the written request
of and at the expense of the Company, the Collateral Trustee will either (A) be present at and deliver the release at the closing of such transaction or (B) deliver the release under customary escrow arrangements that permit such
contemporaneous payment and delivery of the release. 
  

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 Section 4.2 Collateral Trustee Not Required to Serve, File or Record. The Collateral Trustee is
not required to serve, file, register or record any instrument releasing or subordinating its Liens on any Collateral; provided, however, that if the Company shall make a written demand for a termination statement under Section 9-513(c) of the
UCC, the Collateral Trustee shall, at the expense of the Company, comply with the written request of the Company to comply with the requirements of such UCC provision; provided, further, that the Collateral Trustee has first confirmed
that the requirements of such UCC provisions have been satisfied. 
 ARTICLE 5 
 IMMUNITIES OF THE COLLATERAL TRUSTEE 
 Section 5.1 No Implied Duty. The
Collateral Trustee will not have any fiduciary duties nor will it have responsibilities or obligations other than those expressly assumed by it in this Agreement and the other Security Documents. The Collateral Trustee will not be required to take
any action that is contrary to applicable law or any provision of this Agreement or the other Security Documents. 
 Section 5.2
Appointment of Agents and Advisors. The Collateral Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, accountants, appraisers or other experts or
advisors selected by it in good faith as it may reasonably require and will not be responsible for any misconduct or negligence on the part of any of them. 
 Section 5.3 Other Agreements. The Collateral Trustee has accepted and is bound by the Security Documents executed by the Collateral Trustee as of the date of this Agreement and, as directed by the
Administrative Agent, the Collateral Trustee shall execute additional Security Documents delivered to it after the date of this Agreement; provided, however, that such additional Security Documents do not adversely affect the rights,
privileges, benefits and immunities of the Collateral Trustee or impose on the Collateral Trustee any additional duties or obligations. The Collateral Trustee will not otherwise be bound by, or be held obligated by, the provisions of any credit
facility or other agreement governing Secured Obligations (other than this Agreement and the other Security Documents). 
 Section 5.4
Solicitation of Instructions. 
 (a) The Collateral Trustee may at any time solicit written confirmatory instructions, in the form of
a written confirmation from the Administrative Agent, Crest or an order of a court of competent jurisdiction, as to any action that it may be requested or required to take, or that it may propose to take, in the performance of any of its obligations
under this Agreement or the other Security Documents. 
 (b) No written direction given to the Collateral Trustee by the Administrative Agent
or Crest that in the sole judgment of the Collateral Trustee imposes, purports to impose or might reasonably be expected to impose upon the Collateral Trustee any obligation or liability not set forth in or arising under this Agreement and the other
Security Documents will be binding upon the Collateral Trustee unless the Collateral Trustee elects, at its sole option, to accept such direction. 
 Section 5.5 Limitation of Liability. The Collateral Trustee will not be responsible or liable for any action taken or omitted to be taken by it hereunder or under any other Security Document, except for its own gross negligence,
unlawful acts, bad faith or willful misconduct as determined by a court of competent jurisdiction in a final nonappealable judgment. 
  

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 Section 5.6 Documents in Satisfactory Form. The Collateral Trustee will be entitled to require
that all agreements, certificates, opinions, instruments and other documents at any time submitted to it, including those expressly provided for in this Agreement, be delivered to it in a form and with substantive provisions reasonably satisfactory
to it. 
 Section 5.7 Entitled to Rely. The Collateral Trustee may seek and rely upon, and shall be fully protected in relying upon,
any judicial order or judgment, upon any advice, opinion or statement of legal counsel (who may be counsel to the Company), independent consultants and other experts selected by it in good faith and upon any certification, instruction, notice or
other writing delivered to it by the Company in compliance with the provisions of this Agreement or delivered to it by the Administrative Agent or Crest as to the holders of Secured Obligations for whom it acts, without being required to determine
the authenticity thereof or the correctness of any fact stated therein or the propriety or validity of service thereof. The Collateral Trustee may act in reliance upon any instrument comporting with the provisions of this Agreement or any signature
reasonably believed by it to be genuine and may assume that any Person purporting to give notice or receipt or advice or make any statement or execute any document in connection with the provisions hereof or the other Security Documents has been
duly authorized to do so. To the extent an opinion of counsel is required or permitted under this Agreement to be delivered to the Collateral Trustee in respect of any matter, the Collateral Trustee may rely conclusively on an opinion of counsel as
to such matter and such opinion of counsel shall be full warranty and protection to the Collateral Trustee for any action taken, suffered or omitted by it under the provisions of this Agreement and the other Security Documents. 
 Section 5.8 Secured Obligation Default. The Collateral Trustee will not be required to inquire as to the occurrence or absence of any Secured
Obligation Default and will not be affected by or required to act upon any notice or knowledge as to the occurrence of any Secured Obligation Default unless and until it is directed by the Administrative Agent. 
 Section 5.9 Actions by Collateral Trustee. As to any matter not expressly provided for by this Agreement or the other Security Documents, the
Collateral Trustee will act or refrain from acting as directed by the Administrative Agent or Crest and will be fully protected if it does so, and any action taken, suffered or omitted pursuant to hereto or thereto shall be binding on the holders of
Secured Obligations. 
 Section 5.10 Security or Indemnity in Favor of the Collateral Trustee. The Collateral Trustee will not be
required to advance or expend any funds or otherwise incur any financial liability in the performance of its duties or the exercise of its powers or rights hereunder unless it has been provided with security or indemnity reasonably satisfactory to
it against any and all liability or expense which may be incurred by it by reason of taking or continuing to take such action. 
 Section
5.11 Rights of the Collateral Trustee. In the event of any conflict between any terms and provisions set forth in this Agreement and those set forth in any other Security Document, the terms and provisions of this Agreement shall supersede
and control the terms and provisions of such other Security Document. In the event there is any good faith disagreement between the other parties to this Agreement or any of the other Security Documents resulting in adverse claims being made in
connection with Collateral held by the Collateral Trustee and the terms of this Agreement or any of the other Security Documents do not unambiguously mandate the action the Collateral Trustee is to take or not to take in connection therewith under
the circumstances then existing, or the Collateral Trustee is in doubt as to what action it is required to take or not to take hereunder or under the other Security Documents, it will be entitled to refrain from taking any action (and will incur no
liability for doing so) until directed otherwise in writing by a request signed jointly by the parties hereto entitled to give such direction or by order of a court of competent jurisdiction. 
  

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 Section 5.12 Limitations on Duty of Collateral Trustee in Respect of Collateral. 
 (a) Beyond the exercise of reasonable care in the custody of Collateral in its possession, the Collateral Trustee will have no duty as to any Collateral
in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto and the Collateral Trustee will not be responsible
for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any Liens on the Collateral. The Collateral Trustee will
be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its own property, and the Collateral Trustee will not be liable or
responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Trustee in good faith. 
 (b) The Collateral Trustee will not be responsible for the existence, genuineness or value of any of the Collateral, for the validity, perfection,
priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross negligence,
bad faith or willful misconduct on the part of the Collateral Trustee, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of the Company to the Collateral, for insuring
the Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. The Collateral Trustee hereby disclaims any representation or warranty to the present and future
holders of the Secured Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. 
 Section 5.13 Assumption of Rights, Not Assumption of Duties. Notwithstanding anything to the contrary contained herein: 
 (1) each of the parties thereto will remain liable under each of the Security Documents (other than this Agreement) to the extent set forth therein to perform all of their respective duties and obligations thereunder
to the same extent as if this Agreement had not been executed; 
 (2) the exercise by the Collateral Trustee of any of its
rights, remedies or powers hereunder will not release such parties from any of their respective duties or obligations under the other Security Documents; and 
 (3) the Collateral Trustee will not be obligated to perform any of the obligations or duties of any of the parties thereunder other than
the Collateral Trustee. 
 Section 5.14 No Liability for Clean Up of Hazardous Materials. In the event that the Collateral Trustee is
requested to acquire title to, or any interest in, an asset for any reason, or take any managerial or other action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in the Collateral Trustee’s
sole discretion may cause the Collateral Trustee to be considered an “owner or operator” under any environmental laws or otherwise cause the Collateral Trustee to incur, or be exposed to, any environmental liability or any liability under
any other federal, state or local law, the Collateral Trustee shall not be required to acquire such title or interest therein and reserves the right, instead of taking such action, either to resign as Collateral Trustee or to arrange for the
transfer of the title, interest or control of the asset to a court appointed receiver. The Collateral Trustee will not be liable to any Person for any environmental liability or any environmental claims or contribution actions under any federal,
state or local law, rule or regulation by reason of the Collateral 

  

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Trustee’s actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or release or threatened discharge or
release of any hazardous materials into the environment. 
 Section 5.15 Additional Provisions Relating to the Collateral Trustee.

 (a) The Collateral Trustee may refuse to follow any direction that conflicts with law or this Agreement, the BNPP Credit Agreement, the
Crest Settlement Agreement or any of the Security Documents or that would involve the Collateral Trustee in personal liability; provided that, the Collateral Trustee may take any other action deemed proper by the Collateral Trustee that is not
inconsistent with such direction. Prior to taking any action under this Agreement or any of the Security Documents, the Collateral Trustee shall be entitled to indemnification reasonably satisfactory to it against all losses and expenses caused by
taking or not taking such action. 
 (b) The Collateral Trustee shall be accountable only for amounts that it actually receives as a result
of the exercise of its powers hereunder and under any Security Document, and neither it nor any of its officers, directors, employees or agents shall have any duty or liability or be responsible to the Company for any act or failure to act
hereunder, except for its own gross negligence, unlawful acts, bad faith or willful misconduct. Nothing contained in this Agreement shall be construed as requiring or obligating the Collateral Trustee, and the Collateral Trustee shall not, absent a
written request by the Administrative Agent or Crest, be required or obligated, to (i) present or file any claim or notice or take any action with respect to any Collateral or in connection therewith or (ii) notify the Company of any
decline in the value of any Collateral. 
 (c) Neither the Collateral Trustee nor any of its directors, officers, employees or agents shall
be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Company. 
 (d) No provision of this Agreement or any Security Document shall be deemed to impose any duty or obligation on the Collateral Trustee to perform any act
or acts, receive or obtain any interest in property or exercise any interest in property, or exercise any right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Collateral
Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act or acts, to receive or obtain any such interest in property or to exercise any such right, power, duty or obligation; and no permissive or
discretionary power or authority available to the Collateral Trustee shall be construed to be a duty. 
 (e) In no event shall the Collateral
Trustee be liable for any failure or delay in the performance of its obligations hereunder or under any of the other Security Documents because of circumstances beyond the Collateral Trustee’s control, including, acts of God, flood, war
(whether declared or undeclared), terrorism, fire, riot, strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services
contemplated by this Agreement, or the failure of equipment or interruption of communications or computer facilities, and other, causes beyond the Collateral Trustee’s control whether or not of the same class or kind as specifically named
above. 
 (f) The Collateral Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement or any of the other Security Documents. 
  

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 (g) Notwithstanding anything to the contrary contained in this Agreement or any of the other Security
Documents, under no circumstances shall the Collateral Trustee be liable for any special, punitive, exemplary or consequential damages. 
 (h) The Collateral Trustee shall have no liability to the Company for interest on any money received by it under this Agreement or any of the other Security Documents except as otherwise agreed in writing with the Company. 
 Section 5.16 Appointment of Co-Collateral Trustee. 
 (a) Solely for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Collateral may at the time be located, the Collateral Trustee shall have the power and may execute and deliver
all instruments necessary to appoint one or more Persons to act as a co-collateral trustee or separate collateral trustee or separate collateral trustees, of all or any part of the Collateral, and to vest in such Person or Persons, in such capacity
and for the benefit of the Secured Parties, such title to the Collateral, or any part hereof, and subject to the other provisions of this Section, such powers, duties, obligations, and rights as the Collateral Trustee may consider necessary or
desirable. No co-collateral trustee or separate collateral trustee hereunder shall be required to meet the terms of eligibility as a successor Collateral Trustee under Section 6.2 and no notice to the Secured Parties of the appointment
of any co-collateral trustee or separate collateral trustee shall be required under this Agreement or any of the other Security Documents. 
 (b) Every separate collateral trustee and co-collateral trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions: 
 (1) all rights, powers, duties and obligations conferred or imposed upon the Collateral Trustee shall be conferred or imposed upon and
exercised or performed by the Collateral Trustee and such separate collateral trustee or co-collateral trustee jointly (it being understood that such separate collateral trustee or co-collateral trustee is not authorized to act separately without
the Collateral Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed, the Collateral Trustee shall be incompetent or unqualified to perform such act or acts,
in which event such rights, powers, duties and obligations (including the holding of title to the Collateral or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate collateral trustee or
co-collateral trustee, but solely at the direction of the Collateral Trustee; 
 (2) no collateral trustee shall be personally
liable by reason of any act or omission of any other collateral trustee under the Security Documents; and 
 (3) the
Collateral Trustee may at any time accept the resignation of or remove any separate collateral trustee or co-collateral trustee. 
 (c) Any
notice, request or other writing given to the Collateral Trustee shall be deemed to have been given to each of the then separate collateral trustees and co-collateral trustees, as effectively as if given to each of them. Every instrument appointing
any separate collateral trustee or co-collateral trustee shall refer to this Agreement and the conditions of this Section 5.16. Each separate collateral trustee and co-collateral trustee, upon its acceptance of the obligations conferred,
shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Collateral Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including
every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection or rights (including the rights to compensation, reimbursement and indemnification hereunder) to, the Collateral Trustee. Every such
instrument shall be filed with the Collateral Trustee. 
  

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 (d) Any separate collateral trustee or co-collateral trustee may at any time constitute the Collateral
Trustee its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate collateral trustee or co-collateral
trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and obligations shall vest in and be exercised by the Collateral Trustee, to the extent permitted by law, without the appointment
of a new or successor collateral trustee. 
 ARTICLE 6 
 RESIGNATION OR REMOVAL OF THE COLLATERAL TRUSTEE 
 Section 6.1 Resignation or Removal of
Collateral Trustee. Subject to the appointment of a successor Collateral Trustee as provided in Section 6.2 and the acceptance of such appointment by the successor Collateral Trustee: 
 (a) the Collateral Trustee may resign at any time by giving not less than 30 days’ notice of resignation to the Administrative Agent and the
Company; and 
 (b) the Collateral Trustee may be removed at any time, with or without cause, by the Administrative Agent. 
 Section 6.2 Appointment of Successor Collateral Trustee. 
 (a) Upon any such resignation or removal, a successor Collateral Trustee may be appointed by the Administrative Agent. If no successor Collateral Trustee has been so appointed and accepted such appointment within
30 days after the predecessor Collateral Trustee gave notice of resignation or was removed, the retiring Collateral Trustee may (at the expense of the Company), at its option, appoint a successor Collateral Trustee, or petition a court of
competent jurisdiction for appointment of a successor Collateral Trustee, which must be a bank or trust company: 
 (1)
authorized to exercise corporate trust powers; 
 (2) having a combined capital and surplus of at least $500,000,000; and

 (3) maintaining an office in New York, New York. 
 (b) The Collateral Trustee will fulfill its obligations hereunder until a successor Collateral Trustee meeting the requirements of this
Section 6.2 has accepted its appointment as Collateral Trustee and the provisions of Section 6.3 have been satisfied. 
 Section 6.3 Succession. 
 (a) When the Person so appointed as successor Collateral Trustee accepts such appointment:

 (1) such Person will succeed to and become vested with all the rights, powers, privileges and duties of the predecessor
Collateral Trustee, and the predecessor Collateral Trustee will be discharged from its duties and obligations hereunder; and 
  

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 (2) the predecessor Collateral Trustee will (at the expense of the Company) promptly
transfer all Liens and collateral security and other property of the Trust Estates within its possession or control to the possession or control of the successor Collateral Trustee and will execute instruments and assignments as may be necessary or
desirable or reasonably requested by the successor Collateral Trustee to transfer to the successor Collateral Trustee all Liens, interests, rights, powers and remedies of the predecessor Collateral Trustee in respect of the Security Documents or the
Trust Estates. 
 (b) Thereafter, the predecessor Collateral Trustee will remain entitled to enforce the immunities granted to it in
Article 5 and the provisions of Sections 7.8 and 7.9. 
 Section 6.4 Merger, Conversion or Consolidation of
Collateral Trustee. Any Person into which the Collateral Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Collateral Trustee shall be a
party, or any Person succeeding to all or substantially all of the corporate trust business of the Collateral Trustee shall be the successor of the Collateral Trustee pursuant to Section 6.3, provided that without the execution or
filing of any paper with any party hereto or any further act on the part of any of the parties hereto, except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary
notwithstanding, such Person satisfies the eligibility requirements specified in clauses (1) through (3) of Section 6.2. 
 ARTICLE 7 
 MISCELLANEOUS PROVISIONS 
 Section 7.1 Amendment. 
 (a) No amendment or supplement to the provisions of any Security Document
will be effective without the approval of the Collateral Trustee acting as directed by the Administrative Agent, except that: 
 (1) any amendment or supplement that has the effect solely of (i) adding or maintaining Collateral, securing additional Secured Obligations that were otherwise permitted by the terms of the Secured Obligation Documents to be secured by
the Collateral or preserving, perfecting or establishing the Liens thereon or the rights of the Collateral Trustee therein; (ii) curing any ambiguity, defect or inconsistency; (iii) providing for the assumption of the Company’s
obligations under any Security Document in the case of a merger or consolidation or sale of all or substantially all of the Company’s assets, as applicable; (iv) releasing the Company from a Security Document and the termination of such
Security Document, all in accordance with the provisions of the BNPP Credit Agreement governing such release and termination; (v) making any change that would provide any additional rights or benefits to the Secured Parties or the Collateral
Trustee or that does not adversely affect the legal rights under the BNPP Credit Agreement or any other Secured Obligation Document of any Lender, any other Secured Party or the Collateral Trustee; or (vi) adding any Security Document, will, in
each case, become effective when executed and delivered by the Company and the Collateral Trustee; and 
 (2) no amendment or
supplement that imposes any obligation upon the Collateral Trustee or the Administrative Agent or adversely affects the rights of the Collateral Trustee or the Administrative Agent will become effective without the additional consent of the
Collateral Trustee or the Administrative Agent. 
  

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 (b) The Collateral Trustee will not enter into any amendment or supplement unless it has received an
opinion of counsel to the Company to the effect that such amendment or supplement will not result in a breach of any provision or covenant contained in any of the Secured Obligation Documents. Prior to executing any amendment or supplement pursuant
to this Section 7.1, the Collateral Trustee will be entitled to receive an opinion of counsel of the Company to the effect that the execution of such document is authorized or permitted hereunder, and with respect to amendments adding
Collateral, an opinion of counsel of the Company addressing customary perfection, and if such additional Collateral consists of equity interests of any Person, priority matters with respect to such additional Collateral. 
 Section 7.2 Further Assurances; Insurance. 
 (a) The Company will do or cause to be done all acts and things that may be required, or that the Collateral Trustee from time to time may reasonably request, to assure and confirm that the Collateral Trustee holds, for the benefit of the
holders of Secured Obligations, duly created and enforceable and perfected Liens upon the Collateral (including any property or assets that are acquired or otherwise become Collateral after the date hereof), in each case as contemplated by, and with
the Lien priority required under, the Secured Obligation Documents. 
 (b) Upon the reasonable request of the Collateral Trustee or the
Administrative Agent at any time and from time to time, the Company will promptly execute, acknowledge and deliver such security documents, instruments, certificates, notices and other documents, and take such other actions as may be reasonably
required, or that the Collateral Trustee may reasonably request, to create, perfect, protect, assure or enforce the Liens and benefits intended to be conferred, in each case as contemplated by the Secured Obligation Documents for the benefit of
holders of Secured Obligations. 
 (c) The Company will maintain insurance as may be required by the BNPP Credit Agreement or any other
Secured Obligation Document or by law. Upon request of the Collateral Trustee, the Company will furnish to the Collateral Trustee full information as to their property and liability insurance carriers. 
 (d) All insurance policies required by Section 7.2(c) will: 
 (1) provide that, with respect to third party liability insurance, the Collateral Trustee, for the benefit of the Secured Parties, shall
be named as an additional insured, with a waiver of subrogation; 
 (2) name the Collateral Trustee, for the benefit of the
Secured Parties, as a loss payee and additional insured for amounts in excess of $5,000,000; and 
 (3) provide that
(x) no cancellation or termination of such insurance shall be effective until 30 days after written notice is given by the insurers to the Collateral Trustee of such cancellation or termination, (provided that only 10 days
written notice is required if such cancellation or termination is as a result of the non-payment of premiums). 
 (e) Upon the request of the
Collateral Trustee, the Company will permit the Collateral Trustee or any of its agents or representatives, at reasonable times and intervals upon reasonable prior notice, to visit their offices and sites and inspect any of the Collateral and to
discuss matters relating to the Collateral with their respective officers and independent public accountants. The Company shall, at any reasonable time and from time to time upon reasonable prior notice, permit the Collateral Trustee or any of its
agents or representatives to examine and make copies of and abstracts from the records and books of account of the Company and its Subsidiaries, all at the Company’s expense. 
  

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 Section 7.3 Successors and Assigns. 
 (a) Except as provided in Section 5.2 and 5.16, the Collateral Trustee may not, in its capacity as such, delegate any of its
duties or assign any of its rights hereunder, and any attempted delegation or assignment of any such duties or rights shall be null and void. 
 (b) All obligations of the Collateral Trustee hereunder will inure to the sole and exclusive benefit of, and be enforceable by, the Administrative Agent, on its own behalf and on behalf of each present and future holder of Secured
Obligations, who will be entitled to enforce this Agreement as a third-party beneficiary hereof, and all of their respective successors and assigns. 
 (c) The Company may not delegate any of its duties, except in accordance with the BNPP Credit Agreement or assign any of its rights hereunder, and any attempted delegation or assignment of any such duties or rights
will be null and void. All obligations of the Company hereunder will inure to the sole and exclusive benefit of, and be enforceable by, the Collateral Trustee and the Administrative Agent, on behalf of itself and on behalf of each present and future
holder of Secured Obligations, whom will be entitled to enforce this Agreement as a third-party beneficiary hereof, and all of their respective successors and assigns. 
 Section 7.4 Delay and Waiver. No failure to exercise, no course of dealing with respect to the exercise of, and no delay in exercising, any right, power or remedy arising under this Agreement or any of the
other Security Documents will impair any such right, power or remedy or operate as a waiver thereof. No single or partial exercise of any such right, power or remedy will preclude any other or future exercise thereof or the exercise of any other
right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
 Section 7.5
Notices. Any communications, including notices and instructions, between the parties hereto or notices provided herein to be given, shall be in writing and shall be given to the following addresses: 
  

					
		 	If to the Collateral Trustee:	  	 BNP Paribas
 787 Seventh Avenue, 30th Floor
 New York, New York 10019
 Attn: Meredith Cook
 Fax: (212) 841-2536

			
		 	 If to the Company:
	  	 Cheniere Marketing, Inc.
 700 Milam Street, Suite 800

 Houston, Texas 77022
 Attn: Robert M. Flavin
 Fax: (713) 375-5000

 All notices and communications will be mailed by first class mail, certified or registered, return
receipt requested, or by overnight air courier guaranteeing next day delivery, to the relevant address set forth above. To the extent applicable, any notice or communication will also be so mailed to any Person described in § 313(c) of the
Trust Indenture Act of 1939, as amended, to the extent required thereunder. Failure to mail a notice or communication to a holder of the Secured Obligations or any defect in it will not affect its sufficiency with respect to other holders of the
Secured Obligations. 
 If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given,
whether or not the addressee receives it; provided that, no notice or communication to the Collateral Trustee or the Administrative Agent shall be deemed received by it unless such notice or communication is actually received by it at its
address (including via fax) set forth above. 
  

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 Section 7.6 Notice Following Discharge of Obligations. Promptly following the Discharge of the
BNPP Obligations, the Administrative Agent will provide written notice of such discharge to the Collateral Trustee. 
 Section 7.7 Entire
Agreement. This Agreement states the complete agreement of the parties relating to the undertaking of the Collateral Trustee set forth herein and supersedes all oral negotiations and prior writings in respect of such undertaking. 
 Section 7.8 Compensation; Expenses. The Company agrees to pay, promptly upon demand: 
 (1) such compensation to the Collateral Trustee and its agents as the Company and the Collateral Trustee may agree in writing from time to
time; 
 (2) all reasonable costs and expenses incurred by the Collateral Trustee and its agents in the preparation,
execution, delivery, filing, recordation, administration or enforcement of this Agreement or any other Security Document or any consent, amendment, waiver or other modification relating hereto or thereto; 
 (3) all reasonable fees, expenses and disbursements of legal counsel and any auditors, accountants, consultants or appraisers or other
professional advisors and agents engaged by the Collateral Trustee or the Administrative Agent incurred in connection with the negotiation, preparation, closing, administration, performance or enforcement of this Agreement and the other Security
Documents or any consent, amendment, waiver or other modification relating hereto or thereto and any other document or matter requested by the Company; 
 (4) all reasonable costs and expenses incurred by the Collateral Trustee and its agents in creating, perfecting, preserving, releasing or enforcing the Collateral Trustee’s Liens on the Collateral, including
filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees, and title insurance premiums; 
 (5)
all other reasonable costs and expenses incurred by the Collateral Trustee and its agents in connection with the negotiation, preparation and execution of the Security Documents and any consents, amendments, waivers or other modifications thereto
and the transactions contemplated thereby or the exercise of rights or performance of obligations by the Collateral Trustee thereunder; 
 (6) after the occurrence of any Secured Obligation Default, all costs and expenses incurred by the Collateral Trustee, its agents and the Administrative Agent in connection with the preservation, collection,
foreclosure or enforcement of the Collateral subject to the Security Documents or any interest, right, power or remedy of the Collateral Trustee or in connection with the collection or enforcement of any of the Secured Obligations or the proof,
protection, administration or resolution of any claim based upon the Secured Obligations in any Insolvency or Liquidation Proceeding, including all fees and disbursements of attorneys, accountants, auditors, consultants, appraisers and other
professionals engaged by the Collateral Trustee, its agents or the Administrative Agent; and 
 (7) all filing and recordation
fees, expenses and taxes. 
  

 -20- 

 The agreements in this Section 7.8 will survive repayment of all other Secured Obligations and the removal or
resignation of the Collateral Trustee. 
 Section 7.9 Indemnity. 
 (a) The Company agrees to defend, indemnify, pay and hold harmless the Collateral Trustee, the Administrative Agent, each holder of Secured Obligations
and each of their respective Affiliates and each and all of the directors, officers, partners, trustees, employees, attorneys and agents, and (in each case) their respective heirs, representatives, successors and assigns (each of the foregoing, an
“Indemnitee”) from and against any and all liabilities, obligations, losses, damagers, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the satisfaction of the BNPP Obligations and the Crest Obligation) be imposed on, incurred by or asserted against such Indemnitee in any way relating to or arising out of this Agreement, any of the Secured
Obligation Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by any Indemnitee under or in connection with any of the foregoing (the
“Indemnified Liabilities”); provided that, the Company shall not be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from an Indemnitee’s gross negligence, unlawful acts, bad faith or willful misconduct. The agreements in this Section 7.9 shall survive the payment of the BNPP Obligations and the Crest Obligation and the
termination of this Agreement. 
 (b) All amounts due under this Section 7.9 will be payable upon demand. 
 (c) To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in Section 7.9(a) may be unenforceable in whole
or in part because they violate any law or public policy, the Company will contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by
Indemnitees or any of them. 
 (d) The Company will not assert any claim against any Indemnitee, on any theory of liability, for any lost
profits or special, indirect or consequential damages or (to the fullest extent a claim for punitive damages may lawfully be waived) any punitive damages arising out of, in connection with, or as a result of, this Agreement or any other Secured
Obligation Document or any agreement or instrument or transaction contemplated hereby or relating in any respect to any Indemnified Liability, and the Company hereby forever waives, releases and agrees not to sue upon any claim for any such lost
profits or special, indirect, consequential or (to the fullest extent lawful) punitive damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
 (e) The agreements in this Section 7.9 will survive repayment of all other Secured Obligations and the removal or resignation of the
Collateral Trustee. 
 Section 7.10 Severability. If any provision of this Agreement is invalid, illegal or unenforceable in any
respect or in any jurisdiction, the validity, legality and enforceability of such provision in all other respects and of all remaining provisions, and of such provision in all other jurisdictions, will not in any way be affected or impaired thereby.

 Section 7.11 Headings. Section headings herein have been inserted for convenience of reference only, are not to be considered a
part of this Agreement and will in no way modify or restrict any of the terms or provisions hereof. 
  

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 Section 7.12 Obligations Secured. All obligations of the Company set forth in or arising under
this Agreement will be Secured Obligations and are secured by all Liens granted by the Security Documents. 
 Section 7.13 Governing
Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY. 
 Section 7.14 Consent to Jurisdiction. All judicial proceedings brought against any party hereto arising
out of or relating to this Agreement or any of the other Security Documents may be brought in any state or federal court of competent jurisdiction in the State, County and City of New York. By executing and delivering this Agreement, the
Company, for itself and in connection with its properties, irrevocably: 
 (1) accepts generally and unconditionally the
nonexclusive jurisdiction and venue of such courts; 
 (2) waives any defense of forum non conveniens; 
 (3) agrees that service of all process in any such proceeding in any such court may be made by registered or certified mail, return
receipt requested, to such party at its address provided in accordance with Section 7.5; 
 (4) agrees that
service as provided in clause (3) above is sufficient to confer personal jurisdiction over such party in any such proceeding in any such court and otherwise constitutes effective and binding service in every respect; and 
 (5) agrees each party hereto retains the right to serve process in any other manner permitted by law or to bring proceedings against any
party in the courts of any other jurisdiction. 
 Section 7.15 Waiver of Jury Trial. Each party to this Agreement waives its rights to
a jury trial of any claim or cause of action based upon or arising under this Agreement or any of the other Security Documents or any dealings between them relating to the subject matter of this Agreement or the intents and purposes of the other
Security Documents. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement and the other Security Documents, including contract
claims, tort claims, breach of duty claims and all other common law and statutory claims. Each party to this Agreement acknowledges that this waiver is a material inducement to enter into a business relationship, that each party hereto has already
relied on this waiver in entering into this Agreement, and that each party hereto will continue to rely on this waiver in its related future dealings. Each party hereto further warrants and represents that it has reviewed this waiver with its legal
counsel and that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. This waiver is irrevocable, meaning that it may not be modified either orally or in writing (other than by a mutual written waiver
specifically referring to this Section 7.15 and executed by each of the parties hereto), and this waiver will apply to any subsequent amendments, renewals, supplements or modifications of or to this Agreement or any of the other Security
Documents or to any other documents or agreements relating thereto. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
  

 -22- 

 Section 7.16 Counterparts. This Agreement may be executed in any number of counterparts (including
by facsimile), each of which when so executed and delivered will be deemed an original, but all such counterparts together will constitute but one and the same instrument. 
 Section 7.17 Effectiveness. This Agreement will become effective upon the execution of a counterpart hereof by each of the parties hereto and
receipt by each party of written notification of such execution and written or telephonic authorization of delivery thereof. 
 Section 7.18
Continuing Nature of this Agreement. This Agreement, including the subordination provisions hereof, will be reinstated if at any time any payment or distribution in respect of any of the Secured Obligations is rescinded or must otherwise be
returned in an Insolvency or Liquidation Proceeding or otherwise by any holder of the Secured Obligations or the Collateral Trustee or any representative of any such party (whether by demand, settlement, litigation or otherwise). 
 Section 7.19 Insolvency. This Agreement will be applicable both before and after the commencement of any Insolvency or Liquidation Proceeding by
or against the Company. The relative rights, as provided for in this Agreement, will continue after the commencement of any such Insolvency or Liquidation Proceeding on the same basis as prior to the date of the commencement of any such case, as
provided in this Agreement. 
 Section 7.20 Rights and Immunities of the Administrative Agent. The Administrative Agent will be
entitled to all of the rights, protections, immunities and indemnities set forth in the BNPP Credit Agreement and any future Administrative Agent will be entitled to all of the rights, protections, immunities and indemnities set forth in any credit
facility, indenture or other agreement governing the BNPP Secured Obligations. In no event will the Administrative Agent be liable for any act or omission on the part of the Company or the Collateral Trustee hereunder. 
 [SIGNATURE PAGE FOLLOWS] 
  

 -23- 

 IN WITNESS WHEREOF, the parties hereto have caused this Collateral Trust Agreement to be duly executed
and delivered by their respective officers thereunto duly authorized as of the date first above written. 
  

					
	CHENIERE MARKETING, INC.
		
	By:	 	/s/ Robert M. Flavin
		 	 Robert M. Flavin

		 	 Senior Vice President and
 Chief Financial
Officer

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 Signature Page to Collateral Trust Agreement 

					
	BNP PARIBAS, not individually but solely in its capacity as Collateral Trustee
		
	By:	 	/s/ Richard J. Wernli
		 	Name:	 	Richard J. Wernli
		 	Title:	 	Director
		
	By:	 	/s/ Sally Haswell
		 	Name:	 	Sally Haswell
		 	Title:	 	Managing Director

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 Signature Page to Collateral Trust AgreementEmployment Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is dated as of September 19, 2007, and made and entered into by and between The Wet Seal, Inc.,
a Delaware corporation (the “Company”), and Steven H. Benrubi (“Executive”). 
 W I T N E S S E T H: 

 WHEREAS, the Company desires to employ Executive as Executive Vice President and Chief Financial Officer of the Company, and
Executive desires to be so employed. 
 Accordingly, in consideration of the premises and the respective covenants and agreements of the
Parties set forth below, and intending to be legally bound hereby, the Parties agree as follows: 
  

	1.	EMPLOYMENT 

 The Company hereby employs Executive
and Executive hereby accepts employment upon the terms and conditions set forth below. 
  

	2.	TERM 

 The term of this Agreement shall begin on
September 21, 2007 (the “Effective Date”) and end on the third anniversary of the Effective Date (the “Term”). The Term may be sooner terminated by either party in accordance with the provisions of
Section 5. 
  

	3.	COMPENSATION 

 3.1 Base Compensation. For the
services to be rendered by Executive under this Agreement, Executive shall be entitled to receive commencing as of the Effective Date, salary at the annual rate of Three Hundred Thousand Dollars ($300,000) (“Base Compensation”)
payable in twenty-six (26) substantially equal installments per year. 
 3.2
Annual Bonus Compensation; 2007 Bonus Compensation. (a) Provided that Executive is employed as of the end of each of the Company’s respective bonus periods, Executive shall be eligible to receive annual bonus compensation targeted
at fifty percent (50%) of Base Compensation. The maximum annual bonus compensation opportunity shall be provided in the Company’s incentive plan. Subject to the achievement of performance objectives determined by the Compensation Committee
of the Board of Directors of the Company (the “Committee”), forty percent (40%) of this annual bonus compensation will be based on the Spring operating income results for the Company as a whole and the remaining sixty percent
(60%) will be based on the Fall operating income results for the Company as a whole. In order to earn a Spring bonus for each applicable fiscal year of the Company ending during the Term, Executive must be employed on the last day of the second
quarter of such fiscal year and in order to earn a Fall bonus for each applicable fiscal year of the Company ending during the Term, Executive must be employed on the last day of the fourth quarter of that fiscal year. Any Fall bonus under this
provision shall be paid no later than the 15th day of the third month following the end of the fiscal year for which it is earned and any Spring bonus
earned hereunder shall be paid in the third quarter of such fiscal year. Prior to the commencement of any bonus period, the Company reserves the right to change the operating metric(s) for purposes of measuring the bonus earned. 

 

 1 

 (b) For purposes of the Fall bonus for fiscal year 2007, such bonus will be calculated based upon
(i) Executive’s base compensation as Vice President and Controller, at a rate of 30% of such base compensation for the period of August 1, 2007 through September 20, 2007, and (ii) Executive’s Base Compensation for the
period thereafter at a rate of 50% of such Base Compensation. 
 3.3 Options. Pursuant to and subject to the terms of The Wet Seal
Inc. 2005 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”), on the Effective Date, Executive shall be awarded an option to purchase 60,000 shares of Class A common stock of the Company
(“Common Stock”) in accordance with the stock option agreement attached hereto as Exhibit B (the “Stock Option Agreement”). 
 3.4 Restricted Shares. Pursuant to and subject to the terms of the Plan, on the Effective Date, Executive shall be awarded a restricted stock award consisting of 90,000 restricted shares of Common Stock in
accordance with the restricted stock award agreement attached hereto as Exhibit C (the “Restricted Stock Award Agreement”). 
 3.5 Benefits. Executive shall be entitled to participate in all pension and welfare benefit, medical, dental, vision, life insurance, disability and any other benefit or insurance plans established by the Company and made available
to other executives at his level, in accordance with the terms of such plans as they may be in effect from time to time. 
 3.6
Vacation. During the Term, Executive shall be entitled to three (3) weeks of paid vacation per year to be used and accrued in accordance with the Company’s policy, as it may be established from time to time. 
 3.7 Expense Reimbursement. Executive shall be reimbursed for reasonable business expenses actually incurred, in accordance with the Company’s
expense reimbursement policy, as it may be in effect during the Term. 
  

	4.	POSITION AND DUTIES 

 4.1 Position. Executive
shall serve as Executive Vice President and Chief Financial Officer of the Company and report to the Chief Executive Officer of the Company (“CEO”). Executive shall perform duties consistent with his title and position and any other
reasonable duties determined by the CEO. If requested by the Board of Directors of the Company (the “Board”), Executive shall serve as an officer and/or director of any of the Company’s affiliates or subsidiaries for no
additional consideration. 
 4.2 Duties; Devotion of Time and Effort. Executive shall use Executive’s good faith best efforts and
judgment (a) in performing Executive’s duties required hereunder and (b) to act in the best interests of the Company. Executive shall devote such time, attention and energies to the business of the Company as are reasonably necessary
to satisfy Executive’s required responsibilities and duties hereunder. Executive shall perform the duties assigned to him to the best of Executive’s ability and in the best interests of the Company. 
  

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 4.3 Compliance with Policies. Executive shall observe all Company’s policies and all
reasonable rules and regulations adopted by the Company in connection with the conduct of its business, and shall render services in a competent, conscientious and professional manner and as instructed by the Company in all matters. 
 4.4 Officer of the Company. Executive’s position is considered a 16(b) position. Executive will be an “officer” of this Company and
accountable for fiscal and fiduciary responsibilities associated with such. 
  

	5.	TERMINATION 

 5.1 Due to Death or Disability.
If Executive dies during the Term, Executive’s employment shall terminate as of the date of his death. The Company may terminate Executive due to “Disability” at any time following the Effective Date, as defined below, upon written
notice to Executive. For purposes of this Agreement, the term “Disability” shall mean a physical or mental incapacity as a result of which Executive becomes unable to continue the proper performance of Executive’s duties
hereunder for six (6) consecutive calendar months or for shorter periods aggregating one hundred eighty (180) business days in any twelve (12) month period, or, if this provision is inconsistent with any applicable law, for such
period or periods as permitted by law. 
 5.2 By the Company Without “Cause”. The Company may terminate Executive’s
employment without “Cause” (as hereinafter defined) at any time following the Effective Date, upon written notice to Executive, subject to compliance by the Company with the provisions of Section 5.6 hereof. 
 5.3 By the Company for Cause. The Company may terminate Executive’s employment for “Cause” at any time. For purposes of this
Agreement, the term “Cause” shall mean: 
 (a) Executive’s conviction of, or plea of nolo contendere to, a felony
or any crime or involving the Company; 
 (b) Executive’s commission of any act of theft, embezzlement or misappropriation against the
Company; 
 (c) The gross neglect, malfeasance or nonfeasance of Executive in the performance of the services contemplated hereunder, when
such conduct causes or has the likelihood of causing material economic harm to the Company; 
 (d) A material breach of this Agreement by
Executive; 
 (e) Any willful misconduct or unethical behavior related to Executive’s duties hereunder or insubordination by Executive;

 (f) The sexual, or other harassment by Executive of any employee, independent contractor or customer of the Company; and/or 
 (g) Executive’s use of illegal drugs or abuse of alcohol or legally prescribed drugs. 
  

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 5.4 By Executive For Good Reason. Executive may terminate his employment for Good Reason as
defined below. In the event Executive seeks to terminate his employment for Good Reason, Executive shall provide thirty (30) days written notice to the Company setting forth Executive’s intention to terminate his employment with the
Company. The Company shall have the opportunity to cure the “Good Reason” within thirty (30) days of the Company’s receipt of the written notice from Executive. For purposes of this Agreement, “Good Reason” shall
mean relocating Executive’s place of work, or the executive offices of the Company, to a location more than fifty (50) miles from the site of the Company’s offices as of the date of this Agreement. 
 5.5 By Executive Without Good Reason. Executive may voluntarily terminate his employment without Good Reason at any time following the Effective
Date upon sixty (60) days written notice to the Company. 
 5.6 Termination Payment. 
 (a) Amount. 
 (i) In
the event that Executive’s employment is terminated pursuant to Sections 5.1 through 5.5, Executive shall continue to render services to the Company pursuant to this Agreement until the date of termination (“Termination Date”)
and shall continue to receive compensation and payment for any unreimbursed expenses incurred, accrued but unpaid Base Compensation and other accrued employee benefits as provided in this Agreement, through the Termination Date. In the event
Executive’s employment is terminated without “Cause” pursuant to Section 5.2, or Executive terminates his employment for “Good Reason” pursuant to Section 5.4, in each case within the first three years of the
Effective Date, and subject to subpart (c) below, Executive shall receive severance pay in an amount equal to one times Executive’s Base Compensation, in equal bimonthly installments paid over a period of twelve (12) months (the
“Severance Period”) with the first installment to be paid on the later of the Company’s first regular pay date after the Termination Date or the tenth (10th) day after Executive’s execution of the release described in
Section 5.6(c) below. Each installment of the severance pay shall be deemed a separate payment for the purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). Notwithstanding the foregoing,
if all or any portion of the severance payments due under this Section 5.6(a) are determined to be “nonqualified deferred compensation” subject to Section 409A of the Code, and the Company determines that Executive is a
“specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations and other guidance issued thereunder, then such severance payments (or portion thereof) shall commence no earlier than the first day of the
seventh month following the month in which Executive’s termination of employment occurs (with the first such payment being a lump sum equal to the aggregate severance payments Executive would have received during such six-month period if no
such payment delay had been imposed). 
  

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 (ii) If Executive is terminated (x) without Cause on or after the third anniversary
of the Effective Date or (y) for Cause, then Executive shall not receive any severance payments. 
 (iii) Except as
provided in this Section 5.6, Executive shall not be entitled to any other payments in connection with his employment and/or the termination thereof, and shall have no further right to receive compensation or other consideration from the
Company or have any other remedy whatsoever against the Company, as a result of the termination of this Agreement or the termination of Executive. In no way does severance payment include any unearned, ineligible bonus compensation. 
 (b) Benefits. RESERVED. 
 (c)
Release. Notwithstanding any other provision of this Agreement to the contrary, Executive acknowledges and agrees that any and all severance payments to which Executive is entitled under this Section 5.6 are conditional upon, and subject
to, Executive first executing a valid waiver and release of all claims that Executive may have against the Company, its subsidiaries and affiliates (and their respective officers and directors) in a form substantially similar to that attached hereto
as Exhibit A, subject to changes as maybe warranted to be made to such release to preserve the intent thereof for changes in applicable laws; provided, that, if Executive fails to execute (or revokes) such waiver and release of all
claims within 30 days following the Termination Date, the Company shall have no obligation to provide the payments contemplated under this Section 5.6. 
  

	6.	NON-SOLICITATION; NON-COMPETITION 

 Executive
acknowledges that by virtue of Executive’s position as Executive Vice President and Chief Financial Officer of the Company, and Executive’s employment hereunder, he will have advantageous familiarity with and knowledge about the Company
and will be instrumental in establishing and maintaining goodwill between the Company and its customers, which goodwill is the property of the Company. Therefore, Executive agrees as follows: 
 (a) During the Term, Executive will not engage (either directly or indirectly, as shareholder, partner, officer, director, consultant, employee or
otherwise) in any enterprise, nor perform any services of any kind whatsoever for or provide any financial assistance to any enterprise, in the retail clothing business other than through the Company or its subsidiaries and their successors.

 (b) During the Term, and for a period of one (1) year following the end of the Term, Executive will not, either for himself or for
any other person or entity, directly or indirectly (i) solicit, induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company, and/or (ii) attempt to solicit, induce, recruit or encourage
any of the Company’s employees to terminate their relationship with the Company; provided, however, that this restriction shall apply for one (1) year following the termination of Executive’s employment, in the event
Executive’s employment is terminated prior to the end of the Term pursuant to, and in accordance with, Sections 5.1 through 5.5. 
  

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	7.	TRADE SECRETS 

 7.1 Executive specifically agrees
that Executive will not at any time, whether during or subsequent to the Term, in any fashion, form or manner, except in furtherance of Executive’s duties at the Company or with the specific written consent of the Company, either directly or
indirectly use or divulge, disclose or communicate to any Person in, any manner whatsoever, any confidential information of any kind, nature or description concerning any matters affecting or relating to the business of the Company (the
“Proprietary Information”), including (i) all information, formulae, compilations, software programs (including object codes and source codes), devices, methods, techniques, drawings, plans, experimental and research work,
inventions, patterns, processes and know-how, whether or not patentable, and whether or not at a commercial stage related to the Company or any subsidiary thereof (ii) buying habits or practices of any of its customers, (iii) the
Company’s marketing methods and related data, (iv) the Company’s costs of materials, (v) the prices it obtains or has obtained or at which it sells or has sold its products or services, (vi) lists or other written records
used in the Company’s business, (vii) compensation paid to employees and other terms of employment or (viii) any other confidential information of, about or concerning the business of the Company, its manner of operation, or other
confidential data of any kind, nature or description (excluding any information that is or becomes publicly known or available for use through no fault of Executive or as directed by Court order). The Parties hereto stipulate that as between them,
Proprietary Information constitutes trade secrets that derive independent economic value, actual or potential, from not being generally known to the public or to other Persons who can obtain economic value from its disclosure or use and that
Proprietary Information is the subject of efforts which are reasonable under the circumstances to maintain its secrecy and of which this Section 7.1. is an example, and that any breach of this Section 7.1 shall be a material breach of this
Agreement. All Proprietary Information shall be and remain the Company’s sole property. 
 7.2 Executive agrees to keep confidential and
not to use or divulge except in furtherance of Executive’s duties at the Company any confidential or proprietary information of any customer of the Company to which Executive may obtain access during the Term. Executive acknowledges and agrees
that a breach of this Section 7.2 shall be a material breach of this Agreement. 
  

	8.	INVENTIONS 

 8.1 Executive agrees to disclose
promptly to the Company any and all concepts, designs, inventions, discoveries and improvements related to the Company’s business (collectively, “Inventions”) that Executive may conceive, discover or make from the beginning of
Executive’s employment with Company until the termination thereof; whether such is made solely or jointly with others, whether or not patentable, of which the conception or making involves the use of the Company’s time, facilities,
equipment or personnel. 
 8.2 Executive agrees to assign, and does hereby assign, to the Company (or its nominee) Executive’s right,
title and interest in and to any and all Inventions that Executive may conceive, discover or make, either solely or jointly with others, patentable or unpatentable, from the beginning of Executive’s employment with the Company until the
termination thereof. 
 8.3 Executive agrees to sign at the request of the Company any instrument necessary for the filing and prosecution of
patent applications in the United States and elsewhere, including divisional, continuation, revival, renewal or reissue applications, covering any 

  

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Inventions and all instruments necessary to vest title to such Inventions in the Company (or its nominee). Executive further agrees to cooperate and assist
the Company in preparing, filing and prosecuting any and all such patent applications and in pursuing or defending any litigation upon inventions covered hereby. The Company shall bear all expenses involved in the prosecution of such patent
applications it desires to have filed. Executive agrees to sign at the request of the Company any and all instruments necessary to vest title in the Company (or its nominee) to any specific patent application prepared by the Company and covering
Inventions which Executive has agreed to assign to the Company (or its nominee) pursuant to Section 8.2 above. 
 8.4 The provisions of
Sections 8.2 and 8.3 do not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code, which provides in substance that provisions in an employment agreement providing that an employee shall
assign or offer to assign rights in an invention to his employer do not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee’s
own time, except for those inventions that either (a) relate, at the time of conception or reduction to practice of the invention: (i) to the business of the employer or (ii) to the employer’s actual or demonstrably anticipated
research or development, or (b) result from any work performed by the employee for the employer. 
  

	9.	SHOP RIGHTS 

 The Company shall also have a
perpetual, royalty-free, non-exclusive right to use in its business, and to make, use, license and sell products, processes and/or services derived from any inventions, discoveries, designs, improvements, concepts, ideas, works of authorship,
whether patentable or not, including processes, methods, formulae, techniques or know-how related thereto, that are not within the scope of “Inventions” as defined above, but which are conceived or made by Executive during regular working
hours or with the use of the facilities, materials or personnel of the Company. 
  

	10.	INJUNCTIVE RELIEF 

 Executive acknowledges that any
violation of any provision of Sections 6 through 9 and Sections 12 through 13 hereof by Executive will cause irreparable damage to the Company, that such damages will be incapable of precise measurement and that, as a result, the Company will not
have an adequate remedy at law to redress the harm which such violations will cause. Therefore, in the event of any violation or threatened violation of any provision of Sections 6 through 9 and Sections 12 through 13 by Executive, in addition to
any other rights at law or in equity, Executive agrees that the Company will be entitled to seek injunctive relief including, but not limited to, temporary and/or permanent restraining orders to restrain any violation or threatened violation of such
Sections by Executive. 
  

	11.	BLUE PENCIL 

 It is the desire and intent of the
parties that the provisions of Section 6 through 9 and Section 15 hereof shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if
any portion of Sections 6 through 9 and Section 15 shall be adjudicated to be invalid or unenforceable, such provision shall be deemed amended either to conform to such restrictions as the court or arbitrator may allow, or to delete therefrom
or reform the portion thus adjudicated to 

  

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be invalid and unenforceable, such deletion or reformation to apply only with respect to the operation of such Section in the particular jurisdiction in
which such adjudication is made. It is expressly agreed that any court or arbitrator shall have the authority to modify any provision of Sections 6 through 9 and Section 15 if necessary to render it enforceable, in such manner as to preserve as
much as possible the parties’ original intentions, as expressed therein, with respect to the scope thereof. 
  

	12.	COPYRIGHT 

 Executive agrees that any work prepared
for the Company that is eligible for copyright protection under any U.S. or foreign law shall be a work made for hire and ownership of all copyrights (including all renewals and extensions therein) shall vest in the Company. In the event any such
work is deemed not to be a work made for hire for any reason, Executive hereby irrevocably grants, transfers and assigns all right, title and interest in such work and all copyrights in such work and all renewals and extensions thereof to the
Company, and agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of its copyright in such work, such assistance to be provided at the Company’s expense but without any
additional compensation to Executive. Executive agrees to and does hereby irrevocably waive all moral rights with respect to the work developed or produced hereunder, including any and all rights of identification of authorship and any and all
rights of approval, restriction or limitation on use or subsequent modifications. 
  

	13.	EXECUTIVE’S DUTIES ON TERMINATION 

 Upon
termination of his employment, Executive will return immediately to the Company all of the Company’s property in Executive’s possession or control, including, but not limited to, phone cards, credit cards, reports, Proprietary Information,
software, keys, files, data, customer lists, equipment, and all other tangible and intangible property belonging to the Company or relating to Executive’s employment with the Company. 
  

	14.	GENERAL PROVISIONS 

 14.1 Assignment; Binding
Effect. Neither the Company nor Executive may assign, delegate or otherwise transfer this Agreement or any of their respective rights or obligations hereunder without the prior written consent of the other party, except that the Company may
assign this Agreement to its successors (through acquisition, merger, reorganization or otherwise), and affiliate, parent or subsidiary corporations. Any attempted prohibited assignment or delegation shall be void. This Agreement shall be binding
upon and inure to the benefit of any permitted successors or assigns of the Parties and the heirs, executors, administrators and/or personal representatives of Executive. 
 14.2 Notices. All notices, requests, demands and other communications that are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if
personally delivered; when transmitted if transmitted by telecopy, electronic or digital transmission method with electronic confirmation of receipt; the day after it is sent, if sent for next-day delivery to a domestic address by recognized
overnight delivery service (e.g., FedEx); and upon receipt, if sent by certified or registered mail, return receipt requested. In each case notice shall be sent to: 
 If to the Company 
 Vice President, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank

 Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699 4722 
  

 8 

 If to Executive, to such address as shall most currently appear in the records of the Company.

 14.3 Entire Agreement. This Agreement, the Stock Option Agreement, the Release and the Restricted Stock Award Agreement, as amended
from time to time, constitute the entire agreement of the Parties, and supersedes all prior agreements. 
 14.4 Withholding. All
payments hereunder shall be subject to any required withholding of federal, state and local taxes pursuant to any applicable law or regulation. 
 14.5 Amendments; Waivers. This Agreement may be amended or modified, and any of the terms and covenants may be waived, only by a written instrument executed by the Parties hereto, or, in the case of a waiver, by the party waiving
compliance. Any waiver by any party in any one or more instances of any term or covenant contained in this Agreement shall neither be deemed to be nor construed as a further or continuing waiver of any such term or covenant of this Agreement.

 14.6 Severability. The paragraphs and provisions of this Agreement are severable. If any paragraph or provision is found to be
unenforceable, the remaining paragraphs and provisions will remain in full force and effect. 
 14.7 Governing Law. This Agreement
shall be construed, performed and enforced in accordance with, and governed by the laws of the State of California without giving effect to its principles of conflict of laws. 
 14.8 Counterparts. This Agreement may be executed in one or more counterparts and delivered by facsimile, each of which shall. be deemed an
original, but all of which shall together constitute the same instrument. 
 14.9 Survival. Sections 6 through 13, this
Section 14.9 and Section 15 shall survive the termination or expiration of this Agreement. 
  

	15.	ARBITRATION 

 In recognition of the fact that
differences may arise between Executive and the Company relating to certain aspects of Executive’s employment or the termination of Executive’s employment, and in recognition of the fact that resolution of any differences in the courts is
rarely timely or cost effective for either party, both the Company and Executive mutually agree to arbitrate disputes under the following terms and conditions in order to establish and gain the benefits of a speedy, impartial and cost-effective
dispute resolution procedure. 
  

 9 

 (a) Except as set forth in subparagraph (e) below, any dispute arising out of or in any way related
to Executive’s employment with the Company, will be decided exclusively by final and binding arbitration, in Orange County, California, pursuant to the procedures required by California law, including the California Arbitration Act, California
Code of Civil Procedure §§ 1281, et seq. and governing case law including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000). The claims covered include, but are not limited to, claims for wages or other
compensation due; claims for breach of any contract or covenant, express or implied; tort claims; claims for discrimination, including but not limited to discrimination based on race, sex, sexual orientation, religion, national origin, age, marital
status, handicap, disability or medical condition or harassment on any of the foregoing bases; claims for benefits, except as excluded herein; and claims for violation of any federal, state or other governmental constitution, statute, ordinance,
regulation, or public policy. This agreement to arbitrate disputes shall not be deemed to apply to a dispute if an agreement to arbitrate such a dispute is prohibited by law. 
 (b) The arbitrator may award any form of remedy or relief (including injunctive relief) that would otherwise be available in court. Any award pursuant to
said arbitration shall be accompanied by a written opinion of the arbitrator setting forth the reason for the award. The award rendered by the arbitrator shall be conclusive and binding upon the Parties hereto, and judgment upon the award may be
entered, and enforcement may be sought in, any court of competent jurisdiction. To the extent not inconsistent with applicable laws, the Arbitrator will have the authority to hear and grant motions. 
 (c) Except as required under governing law, including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000), each party
shall pay its own expenses of arbitration and the expenses of the arbitrator (including compensation) shall be borne equally by the Parties. 
 (d) EXECUTIVE AND THE COMPANY UNDERSTAND THAT, ABSENT THIS AGREEMENT, EXECUTIVE AND THE COMPANY WOULD HAVE THE RIGHT TO SUE EACH OTHER IN COURT, AND THE RIGHT TO A JURY TRIAL, BUT, BY THIS AGREEMENT, GIVE UP THAT RIGHT AND AGREE TO RESOLVE
BY ARBITRATION ANY AND ALL GRIEVANCES DIRECTLY OR INDIRECTLY RELATED TO THIS AGREEMENT, EXECUTIVE’S EMPLOYMENT OR THE TERMINATION THEREOF. 
 (e) Notwithstanding the above, Executive or the Company shall be entitled to seek injunctive or other equitable, provisional relief from a court of competent jurisdiction in Orange County, California upon a showing that any potential
arbitration award would be rendered ineffectual without such relief. However, if any party seeks or obtains such injunctive relief, the merits of the dispute and/or determination of any appropriate remedy (other than equitable, provisional relief)
shall be resolved in accordance with this Agreement. 
 (f) This agreement to arbitrate disputes shall apply to disputes involving the
Company as well as the Company’s parents, affiliates, subsidiaries, successors, assigns, officers, directors, shareholders, employees and agents. Any controversy regarding whether a particular dispute is subject to arbitration shall be decided
by the arbitrator. 
  

 10 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date first
written above. 
  

			
	THE WET SEAL, INC.
		
	By:	 	 /s/ Joel N. Waller

	Name:	 	Joel N. Waller
	Title:	 	President and Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Steven H. Benrubi

	Steven H. Benrubi

  

 11 

 EXHIBIT A 
 Form of Release 
 1. Termination of Employment. Steven H. Benrubi (“Executive”)
acknowledges that his last day of employment with The Wet Seal, Inc. and any of its affiliates (the “Company”) is
                                        
(the “Termination Date”). 
 2. Full Release. For the consideration set forth in the Employment Agreement, by and between the Company
and Executive, dated as of September 21, 2007 (the “Employment Agreement”) and for other fair and valuable consideration therefor, Executive, for himself, his heirs, executors, administrators, successors and assigns
(hereinafter collectively referred to as the “Releasors”), hereby fully releases and discharges the Company, its parents, subsidiaries, affiliates, insurers, successors, and assigns, and their respective officers, directors,
officers, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the “Company Entities”) from any and all actions, causes of action, claims,
obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from the beginning of time through the date of this Release, against the Company Entities
arising out of or in any way related to Executive’s employment or termination of his employment; provided, however, that this shall not be a release with respect to any amounts and benefits owed to Executive pursuant to the
Employment Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in the Company’s Charter and By-Laws. 
 3. Waiver of Rights Under Other Statutes. Executive understands that this Release waives all claims and rights Executive may have under certain federal, state and
local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act (including the Older Workers Benefit Protection Act) (“ADEA”), Title VII of the
Civil Rights Act; the Employee Retirement Income Security Act of 1974; the Equal Pay Act; the Rehabilitation Act of 1973; the Americans with Disabilities Act; the Worker Adjustment and Retraining Notification Act; the California Fair Employment and
Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the California Labor Code; and all other statutes, regulations, common law, and other laws in any and all jurisdictions (including,
but not limited to, California) that in any way relate to Executive’s employment or the termination of his employment. 
 4. Informed and Voluntary
Signature. No promise or inducement has been made other than those set forth in this Release. This Release is executed by Executive without reliance on any representation by Company or any of its agents. Executive states that he is fully
competent to manage his business affairs and understands that he may be waiving legal rights by signing this Release. Executive hereby acknowledges that he has carefully read this Release and has had the opportunity to thoroughly discuss the terms
of this Release with legal counsel of his choosing. Executive hereby acknowledges that he fully understands the terms of this Release and its final and binding effect and that he affixes his signature hereto voluntarily and of his own free will.

 5. Waiver of Rights Under the Age Discrimination Act. Executive understands that this Release waives all of his claims and rights under the ADEA.
The waiver of Executive’s rights 

  

 12 

 
under the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to Executive are in
addition to any sums to which Executive would be entitled without signing this Release. For a period of seven (7) days following execution of this Release, Executive may revoke the terms of this Release by a written document received by the
Chief Financial Officer of the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release. The Release will not be effective until said revocation period has expired. Executive acknowledges that he has
been given up to twenty-one (21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney prior to executing this Release and has been given a full and fair opportunity to do so. 
 6. Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this Release that it should be effective as a bar to each and every
claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly
consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of action, if any, as well as those
relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 
 “A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 7. Miscellaneous. 
 (a) This Release shall be governed
in all respects by the laws of the State of California without regard to its principles of conflict of law. 
 (b) In the event that any one
or more of the provisions of this Release is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the
provisions contained in this Release is held to be excessively broad as to duration, scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable
law. 
 (c) This Release may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 (d) The paragraph headings used in this Release are included solely for convenience and
shall not affect or be used in connection with the interpretation of this Release. 
 (e) This Release, the Employment Agreement, the Stock
Option Agreement and the Restricted Stock Award Agreement represent the entire agreement between the parties with respect to the subject matter hereto and may not be amended except in a writing signed by the Company and Executive. If any dispute
should arise under this Release, it shall be settled in accordance with the terms of Section 15 of the Employment Agreement. 
  

 13 

 (f) This Release shall be binding on the executors, heirs, administrators, successors and assigns of
Executive and the successors and assigns of Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company Entities and the Releasors. 
  

			
	THE WET SEAL, INC.
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	EXECUTIVE
	
	  

	 Steven H. Benrubi

  

 14 

 EXHIBIT B 
 THE WET SEAL, INC. 
 2005 STOCK INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 This Stock
Option Agreement (the “Agreement”) is made and entered into as of September     , 2007 by and between The Wet Seal, Inc., Delaware corporation (the “Company”), and Steven H. Benrubi, who
is the Executive Vice President and Chief Financial Officer of the Company (“Participant”). Capitalized terms not defined herein will have the meaning ascribed to them in the Company’s 2005 Stock Incentive Plan, as amended
and/or restated from time to time (the “Plan”) 
  

					
	Address:	  	_________________________	  	
		  	_________________________	  	
			
	Total Option Shares:	  	60,000	  	
			
	Exercise Price Per Share:1	  	$                     	  	
			
	Date of Grant:	  	September 21, 2007	  	
			
	Expiration Date:	  	September 21, 2017	  	
			
	Type of Stock Option	  		  	
		
	(Check One):	  	 ̈ Incentive Stock Option, to the maximum
extent permissible
		  	x Nonqualified Stock Option

 1. Grant of Option. The Company hereby grants to Participant an option (this
“Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share, subject to all of the terms and conditions of
this Agreement and the Plan. 
 2. Exercise Period. 
 2.1. Provided Participant continues to provide Continuous Service to the Company or any Subsidiary, the Option will become vested and exercisable with respect to 33 1/3% of the Shares on each of the next three
(3) anniversaries of the Date of Grant until the Option is 100% vested, subject to Executive’s Continuous Service with the Company on each of those vesting 
  

	 1
	 The “Exercise Price Per Share” shall be equal to the greater of
(a) the closing price of one share of Stock on the Date of Grant and (b) the 30 market day average ending on and including the Date of Grant. 

  

 15 

 
dates. Except as provided in this Agreement, unvested Options will not be exercisable on or after Participant’s termination of Continuous Service
(“Termination Date”) and will immediately terminate on such Termination Date. 
 2.2. The Option will expire on the
Expiration Date set forth above or earlier as provided in this Agreement or the Plan. 
 3. Termination of Continuous Service. 
 3.1. If Participant’s Continuous Service is terminated, the Options will remain exercisable as follows: 
 (a) If Participant’s termination of Continuous Service is due to death, all unvested Options will terminate and all vested Options will be
exercisable by Participant’s designated beneficiary, or if none, the person(s) to whom such Participant’s rights under the Option are transferred by will or the laws of descendent and distribution for one (1) year following the
Termination Date (but in no event beyond the term of the Option). 
 (b) If Participant’s termination of Continuous Service is due to
Disability (as such term is defined in Participant’s Employment Agreement with the Company dated as of the date hereof (the “Employment Agreement”)), all unvested Options will terminate and all vested Options will be
exercisable by Participant for one (1) year following the Termination Date (but in no event beyond the term of the Option). 
 (c) If
Participant’s termination of Continuous Service is due to termination for Cause (as such term is defined in the Employment Agreement) or voluntary termination without Good Reason (as such term is defined in the Employment Agreement) by the
Participant, the Options will terminate on the Termination Date, regardless of whether the Options were then exercisable. 
 (d) If
Participant’s termination of Continuous Service is due to any other reason, all unvested Options will terminate on the Termination Date and all Options (to the extent exercisable as of the Termination Date) will be exercisable for a period of
three (3) months following such Termination Date (but in no event beyond the term of the Option) and will thereafter terminate. Participant’s status as an employee will not be considered terminated in the case of leave of absence agreed to
in writing by the Company (including but not limited to military and sick leave); provided, that, such leave is for a period of not more than three (3) months or reemployment upon expiration of such leave is guaranteed by contract
or statute. 
 3.2. Nothing in the Plan or this Agreement will confer on Participant any right to the continuation of service with the
Company, or any of its Subsidiaries, or interfere in any way with the right of the Company or its Subsidiaries to terminate his Continuous Service at any time. 
 4. Manner of Exercise. 
 4.1. A Participant (or in the case of exercise after Participant’s death or Disability,
Participant’s executor, administrator, heir or legatee, as the case may be) may exercise his Option by giving written notice of exercise to the Company in a form approved by the Company specifying the number shares of Common Stock to be
purchased. Such notice must be 

  

 16 

 
accompanied by the payment in full of the Option exercise price. The exercise price of the Option may be paid by in the following manner: (i) cash or
certified or bank check, (ii) surrender of Common Stock held by Participant for at least 6 months prior to exercise (or such longer or shorter period as may be required to avoid a charge to earnings for financial accounting purposes) or the
attestation of ownership of such shares, in either case, if so permitted by the Company, (iii) if established by the Company, through a “same day sale” commitment from Participant and a broker-dealer selected by the Company that is a
member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to exercise the Options and to sell a portion of the Shares so purchased sufficient to pay for the total exercise
price and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the total exercise price directly to the Company, or (iv) by any combination of the foregoing, and, in all instances, to the extent permitted by
applicable law. A Participant’s subsequent transfer or disposition of any Common Stock acquired upon exercise of an Option will be subject to any Federal and state laws then applicable, specifically securities law, and the terms and conditions
of the Plan. 
 4.2. Upon (a) exercise of a Nonqualified Stock Option or (b) under any other circumstances determined by the
Committee in its sole discretion, the Company will have the right to require any Participant, and such Participant by accepting the Awards granted under the Plan agrees, to pay to the Company the amount of any Federal, state, local income taxes or
other taxes incurred by reason of the exercise of Options granted hereunder that the Company may be required to withhold with respect thereto. In the event of clauses (a), (b) or (c), Participant will pay to the Company such amount as the
Company deems necessary to satisfy its minimum tax withholding obligation and such payment will be made: (i) in cash, (ii) to the extent authorized by the Committee, having the Company retain shares which would otherwise be delivered upon
exercise of an Option, (iii) to the extent authorized by the Committee, delivering or attesting to ownership of Shares owned by the holder of the Options for at least 6 months prior to the exercise of such Options (or such longer or shorter
period as may be required to avoid a change to earnings for financial accounting purposes), or (iv) any combination of any such methods. For purposes hereof, Shares will be valued at Fair Market Value. 
 5. Issuance of Shares. Except as otherwise provided in the Plan or this Agreement, as promptly as practicable after receipt of such written notification of
exercise and full payment of the Exercise Price and any required income tax withholding, the Company will issue or transfer to Participant the number of Shares with respect to which Options have been so exercised (less shares withheld in
satisfaction of tax withholding obligations, if any), and will deliver to Participant a certificate or certificates therefor, registered in Participant’s name. 
 6. Company; Participant. 
 6.1. The term “Company” as used in this Agreement with
reference to Continuous Service will include the Company and its Subsidiary, if any, as appropriate. 
 6.2. Whenever the word
“Participant” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the Options
may be transferred by will or by the laws of descent and distribution, the word “Participant” will be deemed to include such person or persons. 
  

 17 

 7. Non-Transferability. The Options are not transferable by Participant otherwise than to a designated
beneficiary upon death or by will or the laws of descent and distribution, and are exercisable during Participant’s lifetime only by him. No assignment or transfer of the Options, or of the rights represented thereby, whether voluntary or
involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws of descent and distribution), will vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon
such assignment or transfer the Options will terminate and become of no further effect. 
 8. Rights as Shareholder. Participant or a
transferee of the Options will have no rights as shareholder with respect to any Shares until he or she will have become the holder of record of such share, and no adjustment will be made for dividends or distributions or other rights in respect of
such Shares for which the record date is prior to the date upon which he or she will become the holder of record thereof. 
 9. Adjustments.
Options may be adjusted or terminated in any manner as contemplated by the Plan. 
 10. Change of Control. Upon the occurrence of a Change of
Control, all Options will become 100% vested and exercisable; provided, that, Participant is then in Continuous Service. 
 11.
Compliance with Law. Notwithstanding any of the provisions hereof, Participant hereby agrees that he will not exercise the Options, and that the Company will not be obligated to issue or transfer any shares to Participant hereunder, if
the exercise hereof or the issuance or transfer of such shares will constitute a violation by Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee
will be final, binding and conclusive. The Company will in no event be obliged to register any securities pursuant to the Securities Act (as now in effect or as hereafter amended) or to take any other affirmative action in order to cause the
exercise of the Options or the issuance or transfer of shares pursuant thereto to comply with any law or regulation of any governmental authority. 
 12.
Notice. Every notice or other communication relating to this Agreement will be in writing, and will be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice
mailed or delivered to the other party as herein provided; provided, that, unless and until some other address be so designated, all notices or communications by Participant to the Company will be mailed or delivered to the Company at
its principal executive office, and all notices or communications by the Company to Participant may be given to Participant personally or may be mailed to him at his address as recorded in the records of the Company. 
 13. Binding Effect. Subject to Section 7 hereof, this Agreement will be binding upon the heirs, executors, administrators and successors of the
parties hereto. 
 14. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of California
without regard to its conflict of law principles. 
 15. Plan. The terms and provisions of the Plan are incorporated herein by reference, and
Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the discretionary terms and provisions of the Plan and the provisions of this Agreement, this Agreement will govern and control.

  

 18 

 16. RESERVED. 
 17. Tax Consequences. Set forth below is a brief summary as of the Effective Date of the Plan of some of the federal tax consequences of the exercise of the Options and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTIONS OR DISPOSING OF THE SHARES. 
 17.1. There may be a regular federal income tax liability upon the exercise of the Options. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to withhold from Participant’s compensation or
collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 
 17.2. The following tax consequences may apply upon disposition of the Shares. 
 (a) If the Shares are held
for more than twelve (12) months after the date of the transfer of the Shares pursuant to the exercise of a Nonqualified Stock Option, any gain realized on disposition of the Shares will be treated as long term capital gain. 
 (b) The Company is hereby authorized to withhold from Participant’s compensation, or collect from Participant, and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income. 
 18. Successors and Assigns. The Company may assign any of its
rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon Participant and
Participant’s beneficiaries, executors, administrators and the person or persons to whom this Agreement may be transferred by will or the laws of descent or distribution. 
 [THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] 
  

 19 

															
	THE WET SEAL, INC.	 		 		 		 		 		 	PARTICIPANT
								
	By:	 	  
	 		 		 		 		 		 	  

		 		 		 		 		 		 		 	(Signature)
							
	  
	 		 		 		 		 		 	Steven H. Benrubi
	(Please print name)	 		 		 		 		 		 	
							
	  
	 		 		 		 		 		 	
	(Please print title)	 		 		 		 		 		 	

  

 20 

 EXHIBIT C 
 RESTRICTED STOCK AWARD AGREEMENT 
 UNDER THE WET SEAL, INC. 
 2005 STOCK INCENTIVE PLAN 
 THIS
RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”), made as of the      day of September, 2007 by and between The Wet Seal, Inc. (the “Company”) and Steven H. Benrubi
(“Participant”) who is the Executive Vice President and Chief Financial Officer of the Company, evidences the grant by the Company of a stock award of restricted Class A common stock of the Company (the “Restricted
Stock”) to Participant and Participant’s acceptance of the Restricted Stock in accordance with the provisions of The Wet Seal, Inc. 2005 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”).
The Company and Participant agree as follows: 
 1. Basis for Award. The award of Restricted Stock is made under the Plan pursuant to
Section 9 thereof for service rendered to the Company by Participant. 
 2. Stock Awarded. 
 2.1 Effective as of September 21, 2007 (the “Grant Date”), the Company hereby awards to Participant, in the aggregate, an award of 90,000 shares of
Class A common stock of the Company (the “Award”) which shall be subject to the conditions and restrictions set forth in the Plan and this Agreement. 
 2.2 Shares of Restricted Stock shall be evidenced by book-entry registration with the Company’s transfer agent, subject to such stop-transfer orders and other terms deemed appropriate by the Committee to reflect
the restrictions applicable to such Restricted Stock. Notwithstanding the foregoing, if any certificate is issued in respect of such Restricted Stock, at the sole discretion of the Committee, such certificate shall be registered in the name of
Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to this Award, substantially in the following form: 
 “THE TRANSFERABILITY OF THIS CERTIFICATE AND THE CLASS A COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE RESTRICTED STOCK AWARD AGREEMENT DATED
AS OF SEPTEMBER 21, 2007, ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE WET SEAL, INC.” 
 If a certificate is issued with respect to the
Restricted Stock, the Committee may require that the certificate evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed and that Participant deliver a stock power, endorsed in blank, relating to the
shares covered by this Award. At the expiration of the restrictions, the Company shall instruct the transfer agent to release the shares from the restrictions applicable to such Restricted 

  

 21 

 
Stock, subject to the terms of the Plan and applicable law or, in the event that a certificate has been issued, redeliver to Participant (or his legal
representative, beneficiary or heir) share certificates for the shares deposited with it without any legend except as otherwise provided by the Plan, this Agreement or applicable law. During the period that Participant holds the Restricted Stock,
Participant shall have the right to receive dividends on and to vote the Restricted Stock while it is subject to restriction, except as otherwise provided by the Plan. If the Restricted Stock is forfeited, in whole or in part, Participant will
assign, transfer and deliver any evidence of the Restricted Stock to the Company and cooperate with the Company to reflect such forfeiture. By accepting this Award, Participant acknowledges that the Company does not have an adequate remedy in
damages for the breach by Participant of the conditions and covenants set forth in this Agreement and agrees that the Company is entitled to and may obtain an order or a decree of specific performance against Participant issued by any court having
jurisdiction. 
 2.3 Except as provided in the Plan or this Agreement, the restrictions on the Restricted Stock are that prior to vesting as provided in
Section 3 of this Agreement, the shares will be forfeited by Participant and all of Participant’s rights to such stock shall immediately terminate without any payment or consideration by the Company, in the event of any sale, assignment,
transfer, hypothecation, pledge or other alienation of such Restricted Stock made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or proceeding, whether in the nature
of an insolvency or bankruptcy proceeding or otherwise. Notwithstanding the foregoing, Participant may transfer the Restricted Stock to his Immediate Family Members (or to corporations, trusts, partnerships or limited liability companies established
for Participant and/or such family members); provided, that, (i) such transfer is for no consideration other than securities or other interests in such corporations, trusts, partnerships or limited liability companies,
(ii) the Restricted Stock shall continue to be subject to the terms, conditions and restrictions herein and (iii) the transfer is effected through procedures established by the Committee from time to time. 
 3. Vesting. The restrictions described in Section 2 of this Agreement will lapse with respect to 33-1/3% of the shares of Restricted Stock (30,000
shares) on September 21, 2008 and as to an additional 33-1/3% of the shares of Restricted Stock (30,000 shares) on September 21, 2009 and 33-1/3% of the shares of Restricted Stock (30,000 shares) on September 21, 2010, provided
Participant is subject to Continuous Service on each of those vesting dates. If Participant ceases to be subject to Continuous Service at any time prior to the respective vesting dates, any shares of Restricted Stock that are unvested as of the date
of such cessation of Continuous Service shall automatically be forfeited. Upon the occurrence of a Change in Control while Participant is subject to Continuous Service, all restrictions on 100% of the then unvested Restricted Stock shall
automatically lapse on the date the Change of Control shall be consummated and all of the Restricted Stock shall be vested. 
 4. Company;
Participant. The term “Company” as used in this Agreement with reference to service shall include the Company and its Affiliates, as appropriate. 
 4.1 Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person
or persons to whom the Restricted Stock may be transferred by will or by the laws of descent and distribution, the word “Participant” shall be deemed to include such person or persons. 
  

 22 

 5. Adjustments. The Award may be adjusted as provided for in Section 12 of the Plan. 
 6. Compliance with Law. Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or transfer any Restricted Stock to
Participant hereunder, if the vesting thereof or the issuance or transfer of such Restricted Stock shall constitute a violation by Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination
in this connection by the Committee shall be final, binding and conclusive. The Company will take all appropriate steps, including, to the extent necessary, the filing of an appropriate registration statement at its sole expense, such that
Participant may sell the Restricted Stock upon the lapse of the restrictions set forth herein, subject to the Company’s insider trading policies. 
 7.
No Right to Continued Service. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue as an employee of the Company or shall interfere with or restrict in any way the rights of the Company, which
are hereby expressly reserved, to terminate Participant’s employment at any time for any reason whatsoever, with or without cause. Except as provided herein, Participant acknowledges and agrees that the continued vesting of the Restricted Stock
granted hereunder is premised upon his provision of future services with the Company and the vesting of such Restricted Stock shall not accelerate upon his termination of service for any reason except as specifically provided herein. 
 8. Representations and Warranties of Participant. Participant represents and warrants to the Company that: 
 8.1 Agrees to Terms of the Plan. Participant has received a copy of the Plan and has read and understands the terms of the Plan and this
Agreement, and agrees to be bound by their terms and conditions. In the event of an express conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. All
capitalized terms not defined herein shall have the meaning ascribed to them as set forth in the Plan. Participant acknowledges that there may be adverse tax consequences upon the vesting of the Restricted Stock or disposition of the shares of
Restricted Stock once vested, and that Participant should consult a tax adviser prior to such time. 
 8.2 Cooperation. Participant agrees to sign
such additional documentation as may reasonably be required from time to time by the Company. 
 9. Taxes. Participant agrees that, to the
extent required by law, no later than the date as of which the restrictions on the Restricted Stock shall lapse with respect to all or any of the Restricted Stock covered by this Agreement, Participant shall pay to the Company (in cash, or to the
extent permitted by the Committee, Stock held by Participant for at least six (6) months whose Fair Market Value on the date the Restricted Stock vests is equal to the amount of Participant’s tax withholding liability) any federal, state
or local taxes of any kind required by law to be withheld, if any, with respect to the Restricted Stock for which the restrictions shall lapse. If Participant does not timely make the payment(s) referred in the immediately preceding sentence, the
Company is hereby authorized to withhold from Participant’s compensation and pay to the applicable taxing authorities an amount equal to this tax withholding liability. 
  

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 10. Notice. Every notice or other communication relating to this Agreement shall be in writing, and shall
be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that, unless and until some
other address be so designated, all notices or communications by Participant to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to Participant may be given
to Participant personally or may be mailed to him at his address as recorded in the records of the Company. 
 11. Governing Law. This
Agreement shall be construed and interpreted in accordance with the laws of the State of California without regard to its conflict of law principles. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
  

			
	THE WET SEAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PARTICIPANT
	
	  

	Name: Steven H. Benrubi

  

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